ORANGE COUNTY PERSPECTIVE : It Just Doesn’t Look Right

There was nothing illegal about the recent award of a $340,000 redevelopment consulting contract to a firm owned by two former Santa Ana city board members, but what happened left a bad aftertaste. The award points up the city’s need to adopt a tougher conflict-of-interest code that would preclude former staff or municipal appointees from lobbying or conducting any other business with the city for a decent interval of time.

The contract was awarded to Rosenow Spevacek Group Inc. on April 2, less than two months after Kathleen Rosenow, one of the owners, resigned from the Community Redevelopment Commission. During the interim, the firm’s other owner, Rosenow’s husband, Frank Spevacek, also resigned from the city’s Planning Commission on the advice of City Atty. Edward J . Cooper. Cooper said that although the commission wouldn’t be voting on the consulting contract it “would be better” if Spevacek weren’t on the commission.

Cooper said he had no qualms about the award, but his advice to Spevacek got to the heart of the issue: It just didn’t look right. The timing of the resignations and the award leave an impression of an inside deal.

As public officials have learned so painfully through the years, even the appearance of wrongdoing can undermine public confidence in government. That’s why the state of California has conflict-of-interest codes that regulate former officeholders who try to lobby their one-time colleagues or otherwise drink at the public trough. For example, state law prohibits for two years any former state officials from working on private contracts that they had a part in negotiating as public employees.

In Santa Ana, the contract was to advise the city on ways to amend the city’s four redevelopment agencies. The firm, which has extensive experience in redevelopment, was the middle of three close bidders. It was recommended by city staff over the low bidder in part because of its knowledge of city operations.

But, no matter how qualified the firm or suitable its bid, there is a cozy feel to the contract process. It leaves an impression that the personal relationships involved were more important than they should have been. To avoid this in the future, the city should expand its conflict-of-interest code to preclude former employees, elected officials or board members from doing business with the city for at least a year after they have left their municipal responsibilities.