Joe Nelson, Staff Writer
Posted: 12/08/2009 06:50:37 PM PST
Updated: 12/08/2009 07:02:05 PM PST
VICTORVILLE - City Councilman Ryan McEachron has called for a forensic audit of all city contracts, payroll and accounting records amid an ongoing Grand Jury investigation into the city's business practices.
Since being elected to the City Council last November, McEachron said he's been troubled by a barrage of complaints from citizens alleging the city is corrupt and engaged in an incestuous relationship with energy magnate William Buck Johns, president of Newport Beach-based Inland Energy, Inc.
Johns has been instrumental in the entitlement and development of the Victorville 1 (VV1) power plant at the Southern California Logistics Airport and several other power plant projects in the High Desert.
"There's been a lot of concern with respect to the relationship the city has with (William) Buck Johns and his company Inland Energy," said McEachron, who called for the audit at the Dec. 1 Council meeting. "But I think the bigger and overarching issue that caused me to request this audit is all the various contracts that we entered into without council approval and changes to policy."
He said his request will be agendized and go before the City Council in January for a vote.
In April, the Grand Jury interviewed a half dozen elected and appointed city officials, inquiring about the city's financial situation and at least three verbal or handshake agreements former City Manager Jon B. Roberts made with contractors.
"They did a lot of handshaking," said Burrel Woodring, who served as foreman for the 2008-2009 Grand Jury.
Roberts, who is now the city manager in Steamboat Springs, Co., couldn't be reached for comment Tuesday.
When last year's Grand Jury disbanded in June, a special Grand Jury panel was formed to pick up the investigation where the previous Grand Jury left off.
"It looks like they're making a major project out of it," Woodring said. "We considered it something that should be followed through."
Among the contracts Roberts helped negotiate was the VV1 contract with Johns' Inland Energy.
Miguel Gonzalez, spokesman for Inland Energy, believes McEachron isn't so much concerned over the city's relationship with Johns as he is the city's business practices.
He said McEachron is highly supportive of the city's joint effort with Inland Energy on its EB-5 program, aimed at securing millions of dollars from foreign investors in Asia for development projects in the city, including a Dr. Pepper Snapple bottling plant. In exchange, investors receive green cards and a five-percent return on their investment over a five-year period.
Gonzalez said Johns has been neither interviewed nor subpoenaed by the Grand Jury.
"I can tell you unequivocally that Mr. Johns has not been contacted, and neither has he been subpoenaed by any Grand Jury," Gonzalez said.
In the last month, Grand Jury members interviewed all five City Council members, Economic Development Director Keith Metzler and City Attorney Andre de Bortnowsky, said Yvonne Hester, city spokeswoman.
They were all directed not to disclose publicly anything discussed in the interviews, Hester said.
There have been no further inquiries since.
"There's been no subpoenas, and there have been no requests for follow-up appointments," she said.
http://www.contracostatimes.com/california/ci_13955772
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