Street not stripped of power

Orange County Treasurer-Tax Collector Chriss Street didn’t lose his control over the county’s $6 billion investment pool Tuesday, but he may still have to answer to county supervisors for his conduct on a number of issues.

Supervisor John Moorlach, the previous treasurer and a former Street supporter who helped him get elected in 2006, may still push to take investments away from the treasurer, and to put them and 14 key treasurer’s employees under the control of the county’s chief financial officer.

Street has come under scrutiny in recent months, both for private lawsuits over a bankruptcy trust he once managed, and alleged irregularities with how a construction contract was bid. The treasurer is reportedly under investigation by federal and county prosecutors as well as the U.S. Department of Labor and the FBI, but he has denied any wrongdoing and no charges have been filed.

Instead of immediately stripping Street of his investment power, as Moorlach proposed, the board unanimously voted to reconsider the issue Oct. 16.

In the meantime, the county will seek more information about how the construction contract came about and will look into more oversight of county investments.

Moorlach and county Auditor David Sundstrom stressed county investments are not in trouble and are in fact doing well. Instead, Moorlach said, he worried Street would be distracted from his job by investigations into his conduct.

“I have been loyal to Mr. Street for 18 months and have certainly defended him” as issues have come up, Moorlach said. “I believe we need some form of assurance to the taxpayers that we are addressing some of the concerns.”

A variety of Street’s employees told the board he has been an effective and inspiring boss, and several defended Street’s role in specific claims against him.

Under Street’s leadership, department budget manager Dan Puglia said, “I feel more empowered to do my job and have seen the same effect in my staff.”

For supervisors, the issue came down to a sense of urgency, and most of the board didn’t feel it. While they’re still concerned about the treasurer’s legal problems, some agreed with Orange County Taxpayers Assn. President Reed Royalty’s assessment that taking away Street’s investment control would be premature.

“We do not believe from what we’ve heard so far that you really have the compelling cause” to undo the will of the voters who elected Street, Royalty said.

Street was contrite but maintained that his biggest failure was one of communication.

“I am responsible for the public’s perception of my office and any mistake whether real or perceived is my mistake,” Street said.

But, he added, “These claims are based upon nothing more than speculation and innuendo and should be dismissed as such.”

But this won’t be the end of it. Moorlach asked about the procedure for calling a special meeting on the issue if needed, and he said he’s still waiting for some answers either from Street or the Resources and Development Management Department.