June 9, 2014
Staff
Tracy
Press
A report from the San Joaquin County Grand Jury,
released Monday, concluded that the city staff gave the Tracy City Council
wrong information that may have jeopardized federal grants for the Tracy
Airport.
The Grand Jury investigation focused on allegations
of a secret and illegal business arrangement between the city and Surland Cos.
LLC regarding the length of runway 12/30 and a $50,000 payment to the city made
by Surland on behalf of the former airport fuel provider, Turlock Air.
The report found that a staff report presented to
the council on June 18, which claimed that reducing the length of the runway by
five feet would have no effect on future Federal Aviation Administration grants
to the city, was inaccurate and incomplete.
In its opinion, the Grand Jury wrote that reducing
the runway length would have benefited the Ellis project being developed by
Surland, but there was no definitive proof that city staff members deliberately
misled the council.
The jury recommended that the City Council instruct
the city staff to make a comprehensive review of FAA and state safety zone
requirements.
The Grand Jury examined whether there was any
secret agreement between the city staff and Surland to reduce the length of
runway 12/30 from 4,002 feet to 3,997 feet, which would allow Surland to build
more homes at Ellis because of a reduced safety zone for landings and takeoffs
at the airport. The jury looked at emails and staff reports from the city and
Surland regarding a proposed amendment to the Ellis Specific Plan: Surland
would fund airport fuel payments to the city and the city would reduce the
runway length.
The Grand Jury found that the City Council did not
enter into any written contractual agreement that would benefit Surland and did
not approve an amendment that would have benefited the developer. (The city
just codified the length of runway 12/30 at 4,001 feet.)
Though “the Grand Jury is not making a
determination on the appropriateness of the actions,” it suggested that the
council should adopt a policy requiring city staff members to disclose proposed
substantial changes to any major developments in the city to avoid the
perception of collusion.
The Grand Jury also recommended that the city adopt
a policy governing third-party payments for contractual obligations to the
city, after reviewing a $50,000 payment made by Surland to cover money owed to
the city by Turlock Air, then the fuel provider at the airport. The report said
there was no indication that the payment was illegal or inappropriate, but that
a policy could alleviate the appearance of impropriety.
The Grand Jury also issued a recommendation about
contractors with the city. The panel found that the city extended a
contract with Turlock Air to provide fuel at the airport for 25 years without
checking on the status of Turlock Air’s state license. The jury recommended
that the city adopt a policy to review any contractor’s license before renewing
or amending its contract with the city.
The Grand Jury also twice noted the existence of
limited information — specifically, a lack of meeting minutes or notes from one
meeting in the city attorney's office and any meetings between city staff
members and Surland representatives — but discovered no evidence to
substantiate the complainant’s allegations of secret, illegal deals. The panel
did write about an alarming number of actions taken by city staff members that gave
cause for concern and jeopardized the city’s credibility with residents.
The public can read the entire report on the Grand
Jury’s website.
Grand Jury interviews are secret and complainants’
identities hidden, but the Press is seeking comments from the city and council
members who were interviewed by the Grand Jury. Read the full report Friday in
the Press.
Contact Michael Ellis Langley at mlangley@tracypress.com
or 830-4231.
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