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Board censures supervisor and orders audits, contract reforms after probe of discretionary spending

Orange County Board of Supervisors · September 24, 2024
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Summary

The board adopted a censure resolution against a supervisor over alleged misuse of discretionary funds, directed a 90-day internal audit of ARPA-funded contracts, and approved procurement and contract policy changes to tighten oversight of discretionary board-directed agreements.

The Orange County Board of Supervisors on Sept. 24 unanimously adopted a resolution censuring a fellow supervisor and approved several measures to strengthen oversight of discretionary contracts, including a 90-day internal audit of American Rescue Plan Act-funded contracts and updates to the county contract policy manual.

Second District Supervisor introduced the censure resolution, saying it was brought after careful consideration and evidence gathered in litigation and investigations that “appear to be at the epicenter of misuse of public funds.” He asked the board to “publicly condemn the conduct” while noting the resolution is symbolic and does not substitute for ongoing legal investigations.

Supervisor Katrina Foley said the allegations involve “brazenly exploit[ing] his position of power to enrich his family and friends under the guise of feeding the elderly” and endorsed legal avenues to pursue removal if warranted. Other supervisors voiced support for symbolic condemnation while urging the board to focus on reforms to prevent repeat problems.

In a linked set of supplemental actions the board directed the county’s internal auditor to review ARPA-funded contracts within 90 days, directed the CEO to draft procurement policy requiring the county procurement office to review and approve board-directed discretionary contracts, ordered a review of county contracts for familial relationships that require disclosure or abstention, and requested quarterly reporting on contract compliance issues. The board also approved an updated contract policy manual and related events and grants policies that strengthen sole-source review, vendor outreach, training, and compliance checklists for nonprofit partners.

Supervisor Foley said the audits and procurement changes are an important step toward restoring public trust and emphasized implementing legislative changes early so staff can be trained before certain statutory deadlines become effective. “These are efforts to improve our contract policy manual to make sure that there are protections, guardrails, and checks and balances on what we do,” she said.

The board moved the package of supplemental items and policy revisions unanimously. Supervisors said these steps are procedural and institutional remedies that will not interfere with active criminal or civil investigations but will provide clearer contracting guardrails for the future.

Next steps include the internal auditor’s 90-day review of ARPA-funded contracts, procurement office implementation of revised checklists and training modules, and quarterly reports to the board on contract compliance and notices to cure.