Fair Board may retain A.G. as counsel

The Orange County Fair Board may go back to using the state attorney general as its legal counsel.

Board members asked their staff to compare fees it pays to private counsel with what it would cost to resume its relationship with the state.

The board directed staff to compare rates before it makes a decision about legal representation for 2015.

The attorney general’s office had represented the O.C. Fair & Events Center, which is on state-owned grounds, but backed away in 2009, citing a possible conflict of interest during the fairgrounds’ proposed sale.

In 2012, after the fairgrounds were no longer on the market, the board sent a letter asking the attorney general’s office to return as its legal counsel.

However, the law enforcement agency denied the request because the Orange County district attorney was still investigating the failed attempt to sell the Costa Mesa property to private investors.

The attorney general’s office also stated in its denial letter that it was hesitant to return as legal counsel while the Fair Board reserved the right to commission an audit related to the matter.

The Fair Board agreed by a unanimous vote on Thursday that it would not conduct any further audits associated with the proposed sale.

“We have to close this chapter,” said board Director Nick Berardino. “Let’s move forward.”

The Orange County district attorney’s office submitted a report on Nov. 24, which officially closed the investigation.

“We are now in a position to ask the attorney general to come back and represent the organization,” said Ashleigh Aitken, board chairwoman.

However, some board members raised questions about the quality of services the state would be able to provide given recent budget cutbacks to the department.

Between 2010 and 2013, the state-owned fairgrounds has paid about $862,000 to its current law firm, Manatt, Phelps & Phillips. It is unclear how much the board paid the attorney general when the agency represented the organization.

The board will discuss the issue again at its next meeting on Jan. 22.

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Budget

Also Thursday, the Fair Board unanimously approved a balanced budget for 2015, earmarking funds for several improvement projects on the 150-acre property.

The budget projects $31.4 million in expenditures and $35.3 million in revenue.

The O.C. Fair & Event Center’s interim chief executive, Doug Lofstrom, said the spending plan puts the board on solid financial footing.

“We’re in an excellent position for funding projects that we’ve talked about and others that the board has identified,” he said. “This is a very enviable position for you to be in.”

In addition to staff costs and benefits related to the 2015 Orange County Fair, the organization will spend a chunk of its budget on replacing seats at the Pacific Amphitheatre, as well as replacing the Century Barn and remodeling the Ranch building to include additional staff work space.

The spending plan also earmarks $1 million for the veteran’s exhibit, which is slated to be built near Centennial Farm and within the Memorial Gardens Building, a former World War II Army barracks that was saved from demolition last year.

The exhibit will honor the memories of those who served and continue to serve their country, according to board documents.

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Veteran’s exhibit

Later in the meeting, the board could not come to a decision on whether to create a nonprofit that would raise money for the proposed veteran’s exhibit.

The board directed staff to present the directors with a list of options during its meeting next month.

Aitken floated the idea of broadening the foundation that currently raises money for Centennial Farm, instead of creating a separate nonprofit.

If Centennial Farm’s foundation agrees, the nonprofit would benefit the entire fairgrounds with accounts specifically for the farm and for the veteran’s project.

Earlier this year, the board set up an advisory committee made up of Berardino and board director Douglas La Belle to look into creating a nonprofit that would raise funds for the exhibit.

So far, the organization has spent $11,000 in attorney’s fees studying the issue.

“I think it’s a waste of money,” said board Director Barbara Bagneris, who supported Aitken’s idea of partnering with the Centennial Farm Foundation.

However, the board was split on the issue. Berardino —a Vietnam War-era Marine veteran — opposed the idea, saying he doesn’t want the fundraising to simply be “folded into Centennial Farms.”