From the minutes of the Newport Beach City Council meeting May 27, 2003

PUBLIC COMMENTS

Richard Spane stated that he also spoke at the City Council meeting of May 13, 2003, regarding the $4 million grant to the Airport Working Group (AWG). Mr. Spane stated that the City's reports have indicated that there were serious problems with the way the money was spent, that some individuals were paid twice for the same job and that moneys were commingled.  He stated that the citizens were promised an audit by November 2002, and that it was said to be a requirement.  He expressed his understanding that several council members do not want an audit, but Mr. Spane requested that an audit be done.  He stated that his next step will be to see if there are any indictable situations.

City Attorney Burnham stated that the report that was prepared may not have been a formal audit, but was a thorough analysis of the grant expenditures. He added that some minor issues were reported but overall, the funds were used consistent with the terms and conditions of the grant.  City Attorney Burnham stated that the grant does not have an expiration date and the grant funds were to be used by AWG for a wide variety of purposes related to transportation in Orange County.  He disagreed with Mr. Spane's characterization of the report, and felt that the report identified how the funds were spent.  City Manager Bludau added that the report was a compliance audit, warrants were checked and there was no suspicion that the money was used unwisely or illegally.

http://www.city.newport-beach.ca.us/CouncilAgendas/Mn05-27.htm