Did Orange Official Pay a Donor in Rent?

Outgoing Orange City Councilman Mike Alvarez allegedly violated city law in his 2000 reelection campaign by giving a printing company $29,204 worth of rent for producing campaign literature, according to a complaint filed with the city.

The transaction wasn’t run through Alvarez’s campaign account and came from a company limited by city law to giving only $500 toward his reelection, said the complaint to City Atty. David A. DeBerry by longtime campaign watchdog Shirley L. Grindle of Orange.

The free rent in exchange for the campaign literature was credited to American Mailing and Printing by Alvarez Properties, a company owned by Alvarez’s family. Grindle included invoices from American Mailing billing Friends of Mike Alvarez for $29,204 worth of printed door hangers and brochures, plus postage.

Alvarez, president of his family’s real estate investment company who must leave office this year because of term limits, said he had “no idea” about the rent-for-printing arrangement and hadn’t seen the complaint.

“None of this sounds familiar or possible,” he said.

He said he also was unaware of an undated letter included in the complaint with his name typed at the bottom. It was written to American Mailing owner George Havilik thanking Havilik for his help in the campaign.

“I figured that I owe you seven months’ rent in order to pay you back for all your work,” the letter said, proposing to credit five months’ worth of rent.

“I will pay you the balance of what I owe in late January 2001.... If this meets with your approval, please contact me and me only. Thanks. Mike Alvarez.”

DeBerry confirmed receiving Grindle’s complaint Wednesday but declined comment. Havilik couldn’t be reached for comment.

In 2002, Alvarez was fined $3,500 by DeBerry and ordered to repay a $10,000 loan to Alvarez Properties as a result of another Grindle complaint stemming from Alvarez’s reelection financing.

City law prohibits everyone but a candidate or a candidate’s business from giving unlimited funds to his or her campaign. All revenue and spending must be accounted for on campaign filings and handled through the campaign checking account.

None of the printing expenses appeared on Alvarez’s 2000 campaign reports, Grindle’s complaint said.