Irvine City Council denies majority of over-budget requests by two firms in Great Park audit
The city of Irvine denied payments of more than $225,000 for over-budget legal and accounting work submitted by the two firms that conducted the Great Park audit.
The law firm Aleshire & Wynder was seeking $216,683 in three separate items related to the audit, and Newport Beach accounting firm Hagen, Streiff, Newton & Oshiro (HSNO) requested $67,257 in fees above its contract with the city for work preparing the final Great Park Audit report.
The council agreed unanimously to pay Aleshire & Wynder $56,174, as recommended by city staff, but balked at paying the firms the remaining fees.
Denying the other over-budget billing was a split decision, with contentious debate preceding the vote. Councilwoman and Great Park Board chair Christina Shea and Mayor Steven Choi sided with the two firms and wanted to pay the extra expenses.
Mayor Pro Tem Jeffrey Lalloway and Councilwoman Lynn Schott followed the recommendation of City Manager Sean Joyce in voting down the motion to pay in full. Councilwoman Beth Krom, a potential swing vote, was absent.
No one representing HSNO spoke at Tuesday’s special session council meeting. Attorney Anthony Taylor, taking the lead for Aleshire & Wynder as special counsel for the audit, argued the firm was performing its due diligence in performing the extra work.
Taylor tried to make the point that fees for the extra legal work are a small fraction of the more than $200 million spent on the Great Park during the seven years covered by the audit, between 2005 and 2012.
The report concluded tens of millions in public funds were mismanaged under former mayor Larry Agran’s watch and subcontractors could be liable for professional negligence or conflicts of interest. The audit was approved in January 2013 with an original budget of $240,000 and an expectation of being completed in four months. The final report was released in March after more than two years and at a cost of more than $1.2 million.
Last month, the state Joint Legislative Audit Committee agreed to review the audit itself based on allegations the process was politically motivated by members of the City Council. The item was raised by Assemblywoman Lorena Gonzalez (D-San Diego) on behalf of Great Park subcontractor Gafcon, the construction design firm headquartered in her district.