Irvine Mayor Larry Agran faces criticism from a former ally as voters prepare to elect a new mayor and council members in November.
Councilman Chris Mears, elected in 2000 from a slate of Agran-backed candidates, announced last week that he wouldn't seek reelection and accused his former friend and mentor of steering city business to a political supporter.
Mears said he had warned Agran and campaign consultant Ed Dornan earlier this year that he would oppose a contract with an Anaheim company that has offered to run a city-owned electric utility for Irvine. Mears said Dornan boasted to him and Agran that he stood to earn as much as $1 million if the deal were signed.
Mears contends that though the arrangement isn't illegal, it's unethical. His allegations were first reported by the alternative newspaper OC Weekly.
"I said I'm not going along with this," said Mears, an attorney. "What's the mayor doing participating in a contract that will net his closest friend and political advisor a million dollars? If he thinks that's proper, this election should be a referendum on his ability to recognize what propriety is."
Agran said he was stunned by the allegations. He said neither he nor Dornan had done anything wrong. He insisted that his only basis for supporting the utility deal was whether it would benefit the city, although he acknowledged that Dornan would benefit from a contract. Dornan could not be reached for comment.
"What's corrupt about a private individual having a business relationship with a private firm that may or may not do business with the city?" Agran asked.
Irvine is one of several cities that moved to create its own municipal electric company after the 2000-01 energy crisis. The city created the utility in 2002 but has yet to begin full-fledged operations.
The debate before the City Council centers on whether the utility should be launched in earnest to serve soon-to-be developed areas in Irvine. Among the costs: Irvine would have to pay $10 million in fees to end service by Southern California Edison, whose transmission lines and facilities the city would take over.
ENCO Utility Services of Anaheim has offered to operate and manage the utility for the city; if such a deal is signed, Dornan would receive a fee from ENCO for arranging it, Mears said.
Though a Democrat, Agran has become one of the most powerful city officials in largely Republican Orange County. Agran spearheaded the countywide campaign that in 2002 killed the county's plans for an airport at the former El Toro Marine base.
