Still two for Home Ranch’s $2 million

Deirdre Newman

The City Council took the long way around in creating two foundations

Tuesday to distribute the $2-million Home Ranch educational grant.

The 3-2 vote, with Mayor Karen Robinson and Councilman Allan

Mansoor dissenting, essentially arrived at the same decision a

January council vote did: creating two foundations. Robinson, a

lawyer, remained steadfast in her belief that the foundations should

be required to adhere to the Brown Act, the state’s open meeting law.

“It’s a matter of law, not a matter of trust,” she said.

Robinson requested the rehearing on Feb. 3 because she missed the

original vote in January. Robinson wanted the issue considered again

because she was concerned that the Brown Act did not apply to the

foundations’ boards and because she wanted all community residents to

have a chance to be on the boards of directors.

After choosing the two-foundation option that the Segerstroms

suggested in January, the council went step by step over the aspects

of the proposal, approving some as suggested and tweaking others. The

Segerstroms donated the $2 million as part of the Home Ranch

development agreement with the city.

The council restricted the use of the principal of the grant funds

to $50,000 for each foundation in the first year. Forrest Werner, a

board member on the Estancia/TeWinkle foundation, said the intent of

the original board members was to use the majority of that money to

hire an executive director to oversee fund-raising so both

foundations can build their monetary base.

On Tuesday, Robinson also expressed apprehension about mixing the

grant money with fund-raising dollars.

“The lines will become confused,” Robinson said. “I think we’re

setting ourselves up for a significant problem.”

The foundations won’t be able to use any of the funds on athletic

facilities or equipment and can’t use more than 25% on nonrevenue

generating athletic activities, such as after-school sports.

Although the foundations will not have to adhere to the strict

Brown Act rules, their meetings will have to be open to the public

and publicized at the schools. Meetings about legal issues and

fund-raising can be held in closed session.

Councilwoman Libby Cowan reiterated her opinion that these

requirements are sufficient.

“I think safeguards are in place,” Cowan said. “I invite every one

of you who is concerned how public money is spent to come to our

budget meetings.”

The Segerstroms offered the grant to sweeten the deal for their

massive project, slated for land bordered by the San Diego Freeway,

Fairview Road, Harbor Boulevard and Sunflower Avenue. Half the money

is set to go to Costa Mesa High School and the other million will be

shared between Estancia High School and TeWinkle Middle School.

* DEIRDRE NEWMAN covers Costa Mesa and may be reached at (949)

574-4221 or by e-mail at [email protected].