Moreno Indictment Is a Nonissue

It is hard to tell in the race for Santa Ana mayor that Councilman Ted R. Moreno is under federal indictment on conspiracy, extortion and money-laundering charges.

Mayor Miguel A. Pulido Jr., widely viewed as the front-runner even before the Aug. 25 indictment of Moreno and others, isn’t mentioning the charges as he campaigns for reelection.

Nor are the Santa Ana Police Officers Assn. and the Santa Ana firefighters union, which have sent mailers endorsing Pulido.

At a recent citizens forum for candidates, none of the 40 people attending asked Moreno about the indictment. They were more interested in the city’s plans for construction of a high school on a portion of Centennial Park.

The high-profile indictments of Moreno, Councilman Tony Espinoza and two Moreno-backed council candidates have been treated more like a foul odor that no one wants to acknowledge.

The person raising the biggest noise about the federal charges is Moreno himself, who insists he is innocent and will be exonerated. Espinoza, who is stepping down from office, and former council candidate Hector Olivares have pleaded not guilty; former candidate Roman Palacios, who has cooperated with authorities, pleaded guilty to one conspiracy charge.

The slim chance that Moreno, 31, had of winning the race has flattened under the weight of the 27-count federal indictment alleging that he extorted two business owners with projects in Santa Ana for illegal campaign cash. He raised only $2,000 after July--none of it coming after mid-August.

Pulido, 42, enjoys widespread support from businesses, community groups and residents. He is co-owner of Ace Muffler and ran for the council in 1986 after his father fought the city to keep the shop from being torn down for redevelopment.

“What I can do is simply talk about what I believe in and about my record and what I want to do in the future, and ask people to continue to support me,” Pulido said. “There are only a few days left.”

Pulido is running on a record of lower crime, an energized business climate, the construction of new schools and approval for landmark projects like the Discovery Science Center near the MainPlace mall, the downtown Artists Village and the Santa Ana Auto Mall.

His priorities for a new term include increasing spending on street repair and maintenance, improving the city’s park system and creating joint-use agreements for schools to use city parks for after-school programs. He also wants to continue the city’s emphasis on arts and education.

Lewis Lefler, a senior activist from south Santa Ana, recently stopped in at Ace Muffler to tell Pulido that he predicted “zero problems” for Tuesday’s election.

“Miguel does an excellent job,” Lefler said. “He’ll win easily.”

But in a city where 70% of the residents are Latino and the average age is 25, Moreno’s campaign message that city government is too cozy with special interests still resonates for many.

This week, Moreno mailed his first and only campaign brochure so far to 40,000 households. The mailer accuses Pulido of playing favorites with city funding and programs, citing $7 million in city funds invested in the Artists Village project to encourage an artists’ colony in downtown Santa Ana.

The brochure, which also promotes council candidate Jose J. Fernandez, lists the names and salaries of scores of city employees earning more than $100,000 a year, another Moreno pet peeve. It accuses the city’s employee unions of backing Pulido to curry favor for future contract negotiations.

Among other Moreno complaints: Pulido’s support for an exclusive, $20-million trash-hauling contract with Great Western Reclamation and a $500,000 loss when a city-financed project to buy houses for an AIDS hospice fell through. The hospice is being built nearby, and the city sold the refurbished homes, Pulido said.

Moreno also protested $38,000 spent to add the words “Arts and Culture” to the city logo on a water tower.

“Imagine a world without Ted Moreno or Tony Espinoza,” Moreno said at the recent candidate forum. “Would any of you know any of these issues were coming forward? My colleagues are not the type to give you this information. The more you know, the more irate you get.”

Despite the rhetoric, Moreno has conducted a low-key campaign, limiting himself to smaller neighborhood events and candidate forums. He refused to reveal what events or precincts he visited, saying he didn’t want residents to be bothered by questions from the media.

The mailer he sent this week cost $6,000 in postage, but the rest of its cost was donated as an in-kind contribution from the printer, Moreno said. He declined to identify the printer. His only other campaign presence is in the form of about 200 campaign signs left over from his 1996 council race, with the word “Council” plastered over with “Mayor” stickers.

That leaves Moreno sitting on most of the $65,745 that he raised before July. Pulido has raised nearly $100,000 for the race and had $72,000 left as of last week.

Political observers in Santa Ana suggest that Moreno is sitting on the money so he can pay his attorney fees in the criminal case. He already spent $3,000 in campaign funds to retain criminal attorney Edward Munoz.

Moreno said he doesn’t know how he’ll pay those debts, but said he’s researching whether he can use campaign funds to pay his lawyers. He acknowledged asking advice from City Atty. Joseph Fletcher on whether the city could pay his defense costs. He also opened a separate defense fund.

State law allows candidates to use campaign money to pay attorney fees in criminal cases. But the law specifies that the money can be used only to cover alleged violations of state or local campaign, disclosure or election laws. Moreno faces a federal indictment.

Moreno said he’s campaigning as if the indictment didn’t exist and believes there is enough dissatisfaction with the power structure in Santa Ana to unseat Pulido. If he loses the election, he still has two years left in this council term.

“People support me and people oppose me, and there are people still not sure,” he said. “We’ll know on election day how the residents feel.”