Transportation agency wants the county to drop its lawsuit

Mar 8, 2010 — The Press-Enterprise

Imran Ghori

Mar. 4, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- San Bernardino Associated Governments is calling on San Bernardino County to conduct an independent investigation of a $102 million settlement with a Rancho Cucamonga developer and drop its lawsuit against the transportation planning agency for recovery of some of that money.

The request was included in a resolution adopted by SANBAG's board of directors Wednesday at the urging of an ad hoc committee that has been guiding the agency's defense.

It comes in the wake of new criminal charges filed last month against Bill Postmus, former county assessor and supervisor, alleging that the November 2006 county settlement with Colonies Partners was the result of a criminal conspiracy that included bribery and extortion. Prosecutors allege the conspiracy included Jim Erwin, a former assistant assessor, and five unnamed co-conspirators, including a county supervisor and a chief of staff to a supervisor.

The resolution asks that the county immediately hire an investigator to consider the allegations raised by prosecutors and issue a report within 90 days.

If any violation is found of a state law prohibiting officials from voting on contracts in which they have a financial interest, the county must rescind the settlement and seek to recover the funds, the resolution states. It also states that the county must immediately dismiss its suit against SANBAG.

Steven DeBaun, an attorney with Best, Best and Krieger handling the agency's defense, said its officials felt it was important to make their position public.

"I think some self-review is very important for the county before they go off and blame SANBAG for their actions," he said.

Board of Supervisors Chairman Gary Ovitt, who is on the SANBAG board, said he disagreed with the findings. He and the other supervisors did not participate in the vote on the resolution, which was adopted unanimously by the rest of the board.

"It's already being examined by the district attorney," Ovitt said. "I see no reason for us to undertake that cost."

A county statement from spokesman David Wert described the resolution as "nothing more than an attempt to gain some advantage in its litigation" and said an investigation was "unnecessary and premature."

The county and Colonies Partners had battled since 2002 over flood-control easements on the company's 434-acre residential and commercial development in Upland before settling.

The county filed a lawsuit against Upland, Caltrans and SANBAG, saying those entities were responsible for a storm drain that was part of the alleged damages claimed by Colonies. SANBAG has budgeted $1.4 million for legal fees to date.

The lawsuit has put the SANBAG board in an unusual position since it includes all five county supervisors and representatives of the county's 24 cities.

The resolution accuses supervisors of failing to excuse themselves from closed-session discussions about the lawsuit, with some limited exceptions, and asks that they declare that they won't participate in the future.

Ovitt said he and his colleagues did recuse themselves.

Highland Councilman Larry McCallon said he hopes the agency's view will carry weight with the county.

"I don't think it's in anyone's interest that the lawsuit continue," he said.

Newstex ID: KRTB-0174-42682128