Source of Memo Leak Eludes D.A.

San Bernardino County prosecutors announced Wednesday that they could not determine who leaked a confidential memo from settlement talks between county supervisors and a Rancho Cucamonga developer.

Board of Supervisors Chairman Bill Postmus had asked for the investigation in mid-June after two local newspapers received a copy of the memo that detailed a proposed $77-million legal settlement with Colonies Partners, an amount county lawyers criticized as excessive.

Investigators interviewed about 20 people, including all five supervisors, plus reporters who received the memo in the mail in envelopes with no return address. They determined that even more people than initially thought had had access to the memo, making it unlikely that investigators could pinpoint the source of the leak.

“It was like a needle in a haystack, but the more we moved around the needles and the hay ... it wasn’t just one needle we were looking for anymore,” said prosecutor Frank Vanella, who heads the district attorney’s public integrity unit.

In a letter to Postmus announcing the findings, Vanella said the county might consider taking additional steps to restrict access to confidential documents, such as collecting them after meetings and storing them in secured places.

Supervisors generally discuss pending litigation and personnel matters in closed session.

The county has been in a legal battle with Colonies Partners for nearly three years over who is responsible for flood-control improvements at a massive residential and commercial project in Upland.

The developer contends the county should pay as much as $200 million for a basin system that catches runoff from the Foothill Freeway and the land required for the system, which the county disputes.

On Wednesday, both parties reiterated their arguments at the 4th District Court of Appeal in Riverside, whose three-judge panel will issue a ruling if no settlement is reached.

Negotiations have split the county board, with Supervisor Dennis Hansberger criticizing Postmus and Supervisor Paul Biane, who acted as the county’s lead negotiators in the proposed settlement.

They and Supervisor Gary Ovitt have accepted campaign donations from Colonies or its partners.

When the memo surfaced, Biane accused Hansberger of leaking the document.

“Paul’s reaction was inappropriate ... and I hope in the future he’ll be more thoughtful before jumping to comment,” Hansberger said Wednesday.

He said he was disappointed that investigators couldn’t determine who leaked the memo.

“Since I didn’t do it, I’d like to prove that I’m not telling a mistruth,” the supervisor said.

Biane was unavailable for comment.

“It’s unfortunate that they were unable to find the culprit who committed the crime,” said Matt Brown, Biane’s chief of staff. “The supervisor still maintains his suspicions on the source of the memo.”

At the most recent board meeting, Biane offered to take a lie-detector test to assist the investigation. His colleagues also agreed the take the test, though Hansberger said the probe should be expanded to all aspects of the Colonies talks.

Vanella’s letter called the tests a “pointless effort” that would be inadmissible in court and would prolong the inquiry.