O.C. Sheriff Buys 35 Cruisers : Bankruptcy: $573,000 outlay shows difference in how the county and other agencies are being treated, attorneys say.

Sheriff Brad Gates spent more than $573,000 on 35 new cruisers in recent weeks at a time when other cash-strapped county agencies, cities and schools are struggling with layoffs, hiring freezes and cutbacks because of Orange County’s bankruptcy.

Sheriff’s officials say the new cruisers are needed to replace worn-out cars and ensure that public safety doesn’t suffer during the financial crisis.

But several attorneys representing cities and other agencies that invested in the county pool contend that the expenditure highlights a discrepancy between how the county--and particularly the Sheriff’s Department--is being treated compared to other investors who are having to wait until the bankruptcy is resolved to retrieve all but non-emergency funds.

“It’s outrageous to give up money for our schools, our water, our social services,” said Huntington Beach City Atty. Gail C. Hutton, whose city invested $43.6 million in the county pool and is considering a lawsuit to get it back.

“The Sheriff’s Department has gotten along for a long time without the new vehicles. . . . When you have reduced circumstances you make due with what you have. We’re talking now about not having the money to keep the jails open. Is it better to have state-of-the-art autos or keep the bad guys in jail?”

Sheriff’s Lt. Dan Martini said the new cruisers are sorely needed. More than half of the cars that were replaced had more than 90,000 miles on them, most were three years old, and several were beyond repair, he said.

“The primary concern of the county is public safety and that includes not just the safety of officers in the vehicles, but of citizens being served,” Martini said. “Some of these at-risk vehicles posed a danger. They were in critical need of repair or could have presented a potential liability to the county.”

The Sheriff’s Department ordered the 35 Chevrolet Caprices in January, 1994, from Sopp Chevrolet of Bell, and the cars were delivered Dec. 6 through Dec. 9, the same week the county filed for bankruptcy. The cars are replacing 35 of the department’s 142-car fleet.

When the county failed to pay its bill, dealer Randy Sopp went to U.S. Bankruptcy Court on Monday demanding that the county hand over $573,456 or promptly return the cars. The next day, the bill was paid in full, said Deputy County Counsel Kathy Paul.

County Budget Director Fred Branca said the money was paid out of the $2.2 billion the county has invested in the pool, specifically from the transportation internal service fund that is partially reimbursed by federal and state funds.

Branca said the expenditure was approved more than a month ago by himself, then-County Administrative Officer Ernie Schneider and the county Operations Management Council--of which Gates is a member. After the Sheriff’s Department filed a petition declaring the purchase an emergency, the request was also approved by the Official Creditors Committee and the Official Investment Pool Participants Committee, which have been formed since the bankruptcy, said attorney Mary Young, who represents the creditor committee.

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“There’s no doubt that any decision that directs previous county funds to one purpose will be criticized by others who want it directed to another purpose,” said John Amsden, one of the county’s bankruptcy lawyers. “But this is a county that prefers law and order.”

Martini said most of the money is being reimbursed through fees from Sheriff’s Department contracts with nine cities for police protection. Those cities are San Clemente, Laguna Hills, Laguna Niguel, Lake Forest, San Juan Capistrano, Dana Point, Mission Viejo, Stanton and Villa Park. The rest is being reimbursed through the half-cent sales tax imposed under state Proposition 172, he said.

Some attorneys representing public agencies that invested with the county cited the purchase as an example of county officials spending money without regard for the fiscal sacrifices other pool participants are having to make.

“The cities and school districts don’t even have the money to make a choice of those kinds of purchases, while the county is spending the money however they choose to,” said one attorney, who represents a local government agency but requested anonymity in fear of publicly criticizing law enforcement. “That’s the frustration with this.”

Huntington Beach Assistant City Administrator Ray Silver said he could see how the cruisers might qualify as an emergency purchase.

“Let’s hope our critical needs will also be paid for by the money we get back from the County of Orange,” Silver said.