Audit of Railroad Project Is Sought

An audit of a Placentia rail project plagued by financial difficulties and allegations of improper spending appears likely after prodding from Assemblyman Todd Spitzer.

“We’re not fearful of “ an audit, said city spokesman Matt Reynolds. “It’s probably a good thing. It will clear the air and show that the state money has been spent correctly.”

Reynolds said it was unclear whether the audit of the $500-million OnTrac project would be formally initiated by Spitzer or the City Council, which doesn’t meet until April 6.

“I want the City Council to ask for it, but if they don’t, I will,” said Spitzer (R-Orange).

The audit would be conducted by the state Department of Business, Transportation and Housing.

Spitzer (R-Orange) said OnTrac raised so many red flags that he broached the subject of an audit in a telephone conversation with Placentia Councilman Chris Lowe on Monday.

“I believe it has serious political and financial problems at this time,” Spitzer said. “I’m not prejudging. I’m calling for the oversight and stewardship of public dollars. I believe that the project has been sufficiently tarnished that we all have an interest in seeing these allegations explored.”

OnTrac, aimed at improving a major rail line running through Placentia, has been hit by financial setbacks over the last year, including the potential loss of about $12 million in state money. The project has at least $10.6 million in overdue bills.

In addition, community activists have complained that it relies too heavily on expensive private consultants, many of whom are paid $150 to $200 an hour.

“It’s critical that a third party weigh in on this [to] form some conclusion regarding the appropriateness of these expenditures,” Spitzer said Wednesday. “That’s the only way we are going to keep this project moving forward.”