MEASURE M : Tax Opponent Accuses Reed of Reaping Profit

Launching a last volley before the Tuesday election, a leading opponent of the Measure M sales tax proposal made a personal attack Thursday on Dana Reed, chairman of the Orange County Transportation Commission and a leader of the Measure M campaign.

Slow-growth activist Tom Rogers, chairman of Citizens Against Unfair Taxation, charged at a news conference that Reed’s Costa Mesa law firm is improperly profiting from the Measure M campaign. He cited campaign finance disclosure forms that show Reed’s law partner, Cary Davidson, has received $7,590 in fees from Citizens for Yes on Revised Measure M for serving as the campaign treasurer.

Also, Rogers accused Reed of buying support for Measure M by doling out money from his abandoned supervisorial campaign to other candidates.

But Reed said his law partner is acting as an individual and no money is coming through the firm. Also, Reed said the money given to candidates, including $1,000 donated to Sheriff-Coroner Brad Gates, was his own and not leftover campaign funds.

Thursday’s news conference was the most visible activity to date from opponents of Measure M. Except for a televised debate on KOCE-TV Channel 50, opponents have maintained a very low profile.

Supporters of Measure M also maintained a very low profile until this week when mail began arriving at homes throughout the county, including some pieces from the Automobile Club of Southern California and some from local officials exhorting residents to vote for the ballot measure as an act of good citizenship.

If approved by a majority of voters countywide, Measure M would increase the tax on retail sales from 6% to 6 1/2%. It would raise about $3.1 billion for transportation projects over a fixed, 20-year period.

Accompanying Rogers at the news conference were representatives of groups that oppose Measure M for a variety of reasons.

Placentia Mayor Norman Z. Eckenrode said his city and other towns in North Orange County would not reap benefits equal to the sales tax revenue that those cities would generate.

Others who showed up included Westminster Councilwoman Joy L. Neugebauer, who is challenging incumbent supervisor Harriett M. Wieder; Norm Grossman, an environmentalist and candidate for Laguna Beach City Council, and Libertarian Party Chairman Jack Dean.

Neugebauer contended that the growth controls in Measure M transfer decision making from local, elected officials to a panel of appointees, while Grossman argued that Measure M isn’t strong enough on growth management.

Dean argued simply that private enterprise should be allowed to solve the county’s traffic mess without tax increases.

All participants said OCTC should either be disbanded or its members subjected to a countywide election.

Referring to Reed and the issue of his law firm’s role and Reed’s campaign donations to candidates, Rogers said: “I think it’s highly inappropriate. This is the height of arrogance.”

“I agree with Tom that this is improper,” Reed responded, “and that’s why I structured things this way--precisely so it wouldn’t be a problem. I derive no financial benefit whatsoever from the Measure M campaign. In fact, it’s hurting the firm, because my partner could be spending his time on the firm’s business and he’s not.”

Reed provided The Times with copies of his campaign reports, which showed that he reported the donations to Gates and other candidates as personal contributions, and not those of his campaign committee. Reed said there was no mingling of his personal funds and campaign receipts.

Reed said the disclosure format is easily misunderstood because it asks candidates to list their personal contributions in the same reporting package that requires disclosure of the campaign committee’s receipts and expenditures.

“No campaign money of mine went to any candidate,” Reed said.