O.C. Planning Chief Quits Amid Crisis

Orange County’s beleaguered planning director, faced with a financial crisis in his department that has resulted in layoffs and a proposed increase in building permit fees, announced Friday that he will retire.

Thomas B. Mathews, 59, is stepping down as the county grapples with how to bring the department’s budget into balance. Over the last six months, the department has spent at least $8 million more than it took in, and officials said it is operating at a deficit of up to $1 million a month.

In his resignation letter, Mathews said “98.5%” of his nearly 30 years with the county were “rewarding personally and challenging professionally.” He also praised his staff for steady work during difficult times.

“I want to thank you all for your years of loyal service and to assure everyone that I am proud of the work that we have performed together, even under some of the most challenging of circumstances,” he wrote.

His last day is Jan. 9, when 39 of the 200 employees in his department will lose their jobs.

The Planning Department’s financial woes have their roots in a sharp decline in development fee revenue over the last few years as the local economy cooled down. Planners wrongly predicted building would pick up, and critics say they didn’t do enough to trim costs.

In announcing Mathews’ exit, County Executive Officer Michael Schumacher released an “action plan” Wednesday to reorganize the department, including an internal audit of its budget procedures.

The county’s auditor, David Sundstrom, will take over a study of the department’s fees to determine if they are accurately recovering the costs of services -- the focus of an ongoing lawsuit against the county alleging builders have been overcharged.

Within the Planning Department, major purchases were suspended and extra-help positions have been eliminated. Planners also are “projecting future workloads to determine permanent resource needs” -- a reference to allegations that the department has been overstaffed for a county rapidly approaching build-out of its unincorporated areas.

The department will be temporarily supervised by Social Services Agency Director Larry Leaman, who also announced his early retirement Wednesday. He will return Jan. 10 to oversee the Planning Department until a permanent director is hired. A third official, Registrar of Voters Rosalyn Lever, will also retire Dec. 31.

Board of Supervisors Chairwoman Cynthia P. Coad said Mathews brought expertise to planning new communities and deserves recognition despite the current financial crisis. She called Leaman a good choice for interim director. “He’s interested in new ideas, and he listens. That’s going to be an asset to the planning department.”

Former county administrator Ernie Schneider said Mathews was a “terrific planning director.” Schneider was chief of staff to former Supervisor Bruce Nestande when he hired Mathews from the Planning Department to become one of Nestande’s executive assistants.

Mathews worked for two other former supervisors--the late Thomas R. Riley and Roger R. Stanton--and was named director of the county’s Planning and Development Services Department in 1996.

Lynne Fishel, chief executive officer of the Building Industry Assn. of Orange County, said Mathews “had a tough job balancing the interests of the public and the development industry. Orange County is better off for the projects he’s worked on.”

But some slow-growth advocates said Mathews was too cozy with developers.

“I hope that they get someone who can bring integrity to the department and have no more backroom deals,” said Richard Gomez of the Saddleback Canyons Conservancy.

Mathews is taking advantage of an early-retirement package approved Tuesday by the Board of Supervisors for some longtime county managers. Supervisors agreed to a 3.75% pay bonus for early exits from the planning and social services departments.