Street won’t step down

Orange County Treasurer Chriss Street, besieged by allegations of improper behavior, announced on Monday he won’t leave office, even if the Board of Supervisors votes to strip him of control over the county’s $7 billion investment portfolio.

Street is the subject of investigations by the Orange County District Attorney and U.S. Attorneys, officials have said, and he also is being sued by the man who took his place managing a private bankruptcy trust in 2005. County Supervisor John Moorlach, a former friend and supporter who helped Street get elected treasurer in 2006, has called for his resignation.

But faced with growing criticism, Street held a press conference Monday where he denied any wrongdoing. He also gave an hour-long tour of his department, which has been criticized for a remodel some consider lavish.

“I can honestly say that I stand by those actions, despite the criticism that those actions have generated,” Street said, adding that the criticisms are “more about style than about substance.”

The district attorney’s office does not comment on ongoing investigations, but county officials have said Street may have used a falsified document to cover up an attempt to issue a no-bid contract to design firm Ware Malcomb.

Street’s attorney, Phil Greer, confirmed the district attorney is doing a “review” of the $18,000 contract for renovations to the outside of the treasurer’s building, but he said Street’s only involvement was signing off on a memo ranking three companies that submitted bids.

“It’s something that we were completely straightforward in,” Street said. “I only signed that I was following the process

It’s not a no-bid contract.”

Instead, he put the responsibility on the Resources and Development Management Department, saying staffers had put out the memo “consistent with a project they had complete control of.”

But Moorlach’s chief of staff, Mario Mainero, disputed that characterization. He said the first e-mail about a bid from Ware Malcomb came from Street’s office April 3, and a month later the treasurer and his staff were warned they had to coordinate any contracts through the resources department. The document Street signed, which he included in a four-inch binder of materials for the media, is dated June 22.

“It’s pretty clear on April 3 they’re going to move forward with Ware Malcomb,” Mainero said. “We’ve seen no evidence ... that shows a single bid by those other two companies.”

Mainero said to date, “we’ve not received an explanation” from Resources and Development Management Department officials.

These latest concerns are fuel to the fire that seems to be burning closer to Street. More than once since he ran for the treasurer’s seat in 2006, he has had to explain complaints and a $7 million lawsuit by Daniel Harrow, who took over the bankruptcy of Fruehauf Trailer Corp. from him. Harrow alleged Street mismanaged the trust, inflated his own salary, and charged personal expenses such as vacations and Botox treatments to the trust.

Street addressed those complaints with the binder of documents and a tour highlighting the improvements in efficiency and cost savings he’s accomplished as treasurer, such as spending $1.18 million less than budgeted last year and shortening wait times for customer visits at tax time and calls year-round. He also said he’s learned he needs to communicate better.

“I must remember that my constituents are the taxpayers of Orange County and they deserve total transparency and complete candor,” he said.

Asked repeatedly if he intends to step down, Street said he won’t budge.

“I’m committed to the taxpayers that elected me and I will be here to do my job,” he said.

Supervisors may see fit to lighten his workload, however. Moorlach will suggest on Sept. 11 that the board take the county’s investments out of Street’s control.

Mainero said even if Street did nothing wrong with the Ware Malcomb contract, it’s hard to put a good construction on the questionable events. Street either used a falsified a document, or he signed something without bothering to read it, and “neither one is a real good thing for the treasurer of Orange County,” Mainero said.