San Gabriel Valley : Council Disbands Agency Amid Probes

The Pasadena City Council has disbanded a joint city-county economic development agency after finding that the organization did little to boost business and audits showed that relatives of a board member had been paid more than $100,000 for business services.

City Manager Philip Hawkey recommended the council disband the Altadena Pasadena Enterprise Zone Authority in the wake of ongoing investigations by the district attorney’s office and Pasadena police into allegations of conflict of interest and financial irregularities at the agency.

Sandy Speed, the agency’s executive director, who reported the problems to the board after her appointment a year ago, said she supports the action even if it means she will lose her job.

County, city and internal agency audits since Speed raised concerns about the agency’s finances have revealed that from 1993 to 1995, firms owned in part by the brother and husband of board member Kimberley Shaw received contracts worth more than $100,000.

During much of 1994, Shaw, a manager with the county Development Commission, appointed to the board by county Supervisor Mike Antonovich, was also the authority’s temporary manager.

Kimberley and Bill Shaw have denied any wrongdoing and insisted the board knew about the contracts, which they say were won through competitive bids. The county is seeking to fire Shaw from her job with the commission.

Only one board member, former President Robert Amesquita, has said he was aware at the time the contracts were awarded that they were being given to Shaw’s relatives. He said he filed a lawsuit against the agency Monday in Pasadena Superior Court, alleging that other board members have slandered him over the issue. . . .