Irwindale Not Breaking Law on Contracts, Official Says

The steering of millions of dollars in city contracts by Irwindale officials to private businesses that they either own or have a substantial interest in “looks fishy and it sounds suspect. . . . But it’s legal, and it works,” an official Irwindale spokesman declared Friday.

Spokesman Xavier Hermosillo told a news conference--called to rebut a Times story Thursday on conflict of interest questions--that The Times is aligned with downtown interests in seeking to embarrass Irwindale because it has enticed the Los Angeles Raiders to move there. Specifically, he listed such “downtown boys” as Los Angeles County Supervisor Kenneth Hahn; his son, Los Angeles City Atty. James Hahn; Democratic Assemblyman Mike Roos, and Mayor Tom Bradley.

Letter to Grand Jury Foreman

Hermosillo released a letter from Irwindale Mayor Art Tapia to Manuel Gallegos, foreman of the Los Angeles County Grand Jury, in response to James Hahn’s call for a grand jury investigation into the integrity of Irwindale city government. Tapia offered to let the grand jury’s “most skilled investigator” come to an “informal conference” with city officials on the matter.

“If after that you wish to go ahead with a formal investigation, we will cooperate in every way,” Tapia wrote.

But the mayor complained that Irwindale’s success in securing the Raiders had drawn “great ire” from many who, he contended, “will now try everything to break the Irwindale-Raiders arrangement, including, if necessary, the total destruction of the credibility of the City of Irwindale and its public officials.”

At the news conference, three officials mentioned in The Times article explained their conduct.

City Engineer Carlos Alvarado, who was reported in the article to have directed nearly $300,000 in city work to a private consulting firm that he founded and owns, defended the practice by saying that his contract empowered him to choose his own firm for city work on sewers, roads and storm drains.

He does the same thing in San Marino, where he also holds a city position and where his firm also does work, he said.

City Treasurer Abraham DeDios, on the other hand, sought to distance himself from a decision by Irwindale in 1985 to award a $3-million contract to a firm owned by his brother and which employed Abraham as vice president.

Role Called Small

DeDios said he had only a small role in processing the contract, such as filing papers and assisting with basic financing. He said that at no time was he involved in the actual selection of his brother’s firm.

DeDios also defended the fees he has charged the city, in addition to his $42,000 annual salary, for financial advice on a number of bond issues. (These have gone as high as $250,000 for a single bond issue, a sum that some municipal bond experts have called “extraordinarily high.”)

DeDios told the news conference, however, that he has charged even higher fees to other east San Gabriel Valley cities and no one has complained.

City redevelopment consultant Fred Lyte denied an allegation that he had violated part of his contract with the city by recommending favorable City Council action on the deal with the Raiders, a deal upon which he stands to make a commission of more than $2 million.

Irwindale City Manager Charles Martin had told The Times that Lyte violated the terms of his contract when he went before the City Council on two occasions and urged approval of the deal.

Lyte maintained at the news conference that he had not recommended favorable action to the council but had merely answered the council’s questions.

In fact, at the Aug. 19 meeting, Lyte repeatedly spoke in favor of the Raider deal, telling the council members that advancing $10 million to Raiders owner Al Davis was a gamble to get “one of the hottest teams in the United States.” He also said his close friendships and political contacts would smooth the way toward obtaining parking that is a prerequisite of the deal.

Lyte also argued that his contract dealt only with what he could recommend to the city Redevelopment Agency and said nothing about what he could say to the City Council. In Irwindale, the council also serves as the Redevelopment Agency board.