October 26, 2006

Chavez campaign questions Reed’s voting record

The latest round of mayoral race mudslinging involves a “scheme” that isn’t illegal but appears to challenge the integrity of candidate Chuck Reed.

When Reed was elected to the city council, he reduced his stake in his law firm, Reed & Roth, to less than 10 percent, which allowed him to remain a salaried employee. It also allowed him to continue to represent his clients legally without publicly disclosing them. And, according to the Chavez campaign, to vote legally on City Council measures that potentially could benefit his firm’s clients.

The Chavez campaign cites a specific instance where Reed cast a deciding vote in 2003 to allow food and alcohol sales at gas stations. (It didn’t pass until 2006.) Reed was working on behalf of Los Esteros Partnership, a Reed & Roth client; attempting to obtain an environmental clearance for a land parcel that was to be developed as a gas station, according to a press release dated Oct. 23 from the Chavez campaign.

“By decreasing his ownership interest in his firm to below 10 percent, Mr. Reed was able to participate in a vote that could have a material financial effect on his client,” says Karen Getman, former chair of the California State Fair Political Practices Commission who has been retained by the Chavez campaign.

Chavez presented public records in an effort to support her claims. A draft negative declaration to the city describes a parcel of land on “both sides of McCarthy Boulevard…Planned Development Rezoning from A Agricultural District to A (PD) Planned Development District and subsequent permits to allow development of up to 24,900 square feet of office use, up to 8,500 square feet of commercial uses and a gasoline service station with up to eight fueling stations with a car wash facility on a 0.56 acre site.”

The campaign also shows Reed’s March 2003 calendar showing a two-hour meeting with “HMH [an engineering firm] Los Esteros Ranch during the week of March 03-09 and a one-half hour meeting with Jerry Strangis-Los Esteros during the week of March 17-23.

The release added a couple of other examples of work including Valley Christian School, which has not been listed on his Form 700 (of outside work) since 2001. However, according to the Chavez campaign he has represented the school in court 22 times. Valley Christian also was among the contributions Reed made prior to September for which he received personal reimbursements from the city.

He has paid back all $39,000 of those reimbursements.

Reed staff member Vic Ajlouny told the Times that Reed voted to “have staff go back and study the issue rather than vote for it.”

“The action the council took did not affect my client,” said Reed. “It was to lead staff to direct an ordinance on whether food and alcohol could be sold at gas stations. It was a very broad general public impact and I had no obligation to abstain. The land was–and still is–dirt,” Reed added, “with one possible use as a gas station. They are also considering a car wash and retail sales.”

—By Carol Rosen