IRVINE : Inquiry Into Deal by Official’s Mate Due

A San Francisco attorney has been hired to determine if Councilwoman Sally Anne Sheridan violated conflict-of-interest laws when her husband listed and then sold the city attorney’s house after Sheridan had voted to extend his contract.

City Manager Paul Brady Jr. said Tuesday that questions have arisen over Sheridan’s possible role in the sale of the house, which was listed by Sheridan’s husband and business partner, Donald Sheridan, a broker at ReMax Realty in Irvine.

Like her husband, Sheridan is also a real estate agent but said she was not directly involved in the sale of the single-family residence on Whitewater in Irvine.

At issue, Brady said, was whether any conflict-of-interest laws were violated when Sheridan’s husband profited through the sale of City Atty. Roger Grable’s home earlier this month. Sheridan had voted last December to renew Grable’s contract with the city.

Escrow on Grable’s home closed Friday, the same day Brady wrote in a weekly memo to the council that “I have retained the services of Joe Remcho, who is an expert in conflict-of-interest law” to look into the case.

Sheridan, who is running for mayor in the June 5 city election, recently came under fire for misrepresenting her graduate nursing courses at Harvard University as a master’s degree. The misrepresentation came in 5,000 pieces of campaign literature distributed in Irvine.

“It was a stupid mistake,” Sheridan said Tuesday. “I take full responsibility for it, and I will change everything.”

Brady said he decided to hire Remcho in response to an April 6 memo from Councilman Edward A. Dornan raising questions about the sale. Dornan said he was alerted to the possible conflict of interest by a reporter’s inquiry several weeks ago, and wrote the memo to get more information.

“I have a concern about . . . the ethical implications of this (sale), and I want the city to have a clear opinion that this action is legal,” he said.

California law states that a council member must abstain from a vote if it provides personal financial gain of more than $250, or more than $500 for a spouse, if the profit is made within 12 months before the vote, said Sandra Michioku, spokesman for the Fair Political Practices Commission.

Although Grable’s home was sold four months after Sheridan’s Dec. 12 vote to renew Grable’s contract through the Costa Mesa law firm of Rutan & Tucker, Michioku said there could still be a conflict if there was “a legal promise of income” at the time.

Grable said the home was advertised for sale starting in January, although he did not sign a listing agreement with Donald Sheridan until March. He declined to state the asking or selling price.

“I have sold houses through Don Sheridan before he was married to (Councilwoman Sheridan),” Grable said. “I trust him and feel comfortable using him for my business. I didn’t see that there was a lot of risk. I knew that because (Councilwoman Sheridan) was married to him that she may be prevented from making certain decisions. But I had not even intended to list my house before the vote.”

Sheridan denied any specific involvement with the sale, acknowledging that her husband received a commission. Donald Sheridan could not be reached for comment.

“My husband has been Roger Grable’s realtor forever,” Sheridan said. “I am amused by this (investigation) because it happens during every election.”