IRVINE : Report Clears Officials; Recall Drive Still On

The leader of a recall drive aimed at three City Council members is not changing his plans, despite a 594-page report concluding that top city officials are not at fault for city losses in the county’s bankrupt investment pool.

Former Democratic congressional candidate Gary Kingsbury had promised to drop the recall drive if the report by the West Los Angeles law firm of Mitchell, Silberberg & Knupp proved that city officials were not to blame for financial losses. The report includes financial data provided by the Price Waterhouse accounting firm.

Kingsbury presented recall notices to Mayor Michael Ward and council members Barry J. Hammond and Paula Werner last week, citing their July decision to borrow $62 million for an additional investment in the county pool.

Council members Christina L. Shea and Greg Smith voted against the plan. Kingsbury must gather the signatures of 15%, or 9,000, of the city’s 60,000 registered voters to force a recall election.

A summary of the report’s findings places the blame on county officials. The council plans to review the report Tuesday.

“Some people can see blue sky and say that it’s green,” Hammond said. “Mr. Kingsbury is one of those people.”

But Kingsbury said the report fails to address issues of competency and accountability.

“Some people here were playing some high finance games and they didn’t understand the rules,” Kingsbury said.

He had promised to drop the recall drive if the council fired City Manager Paul O. Brady Jr. and Finance Director Jeff Niven. But Ward said the report does not justify firing anybody.

“He is threatening to recall us because we refused to fire two employees,” Ward said. “That is just out and out blackmail.”

Werner said she is not surprised that Kingsbury decided to continue his recall efforts.

“There are a variety of motives and political vendettas being played out,” she said.