A full settlement between the City of Huntington Beach and the Pacific Air Show has not been made public for more than a year, but that could change rapidly in the coming days.
Orange County Superior Court Judge Jonathan Fish ruled in favor of Gina Clayton Tarvin on Wednesday, writing that the city and City Attorney Michael Gates must pay the full amount of a multimillion-dollar settlement with Pacific Airshow LLC.
Clayton Tarvin, a Huntington Beach resident and longtime Ocean View School Board member, filed suit last June after being denied a request under California's Public Records Act to receive the full settlement. Instead, Gates released a legal brief outlining the roughly $7 million settlement with the air show organizers.
“This is really about public transparency and fair treatment of taxpayers,” Clayton Tarvin said. “Frankly, the fact that Mr. Gates hid this information from the public for such a long time is just unconstitutional. The California Constitution and the California Public Records Act are very clear that when we're talking about the expenditure of taxpayer money, the public interest is there. This information had to be disclosed to me and there was no other way to decide.”
Mayor Gates had said he would not pay the full settlement due to the possibility that the city would file a lawsuit against those responsible for the oil spill. The pipeline began leaking on October 1, 2021, eventually leading to the cancellation of the final day of that year's Pacific Air Show.
But the city-led lawsuit has yet to be filed, and Gates has said publicly that he would pay back the full settlement amount if a judge rules he must do so.
Gates said in a statement Wednesday that he believes Fish's instructions and reasons are clear and that he intends to comply with the court order unless different instructions are given by the conservative-majority City Council.
If the council votes to appeal Governor Fish's decision, Clayton-Tarbin said he plans to take the case all the way to the California Supreme Court if necessary.
“It is my personal decision, not that of the City Council, to delay the release of the Air Show Settlement Agreement,” Gates said in a statement. “My decision is based on discussions with outside counsel representing the City's pending oil spill litigation. Our only goal in delaying the release is to ensure that an announcement does not undermine the City's best interest.”
In his ruling, Fish noted that the city has no “pending litigation” and argued against adopting the city's May 13 argument for a broader definition of the term under the Brown Act.
“After reviewing the settlement agreement in private, the Court disagrees with the City's argument that 'privacy clearly favors it,'” Fish wrote. “As the Supreme Court has noted, implicit in the democratic process is the notion that government should be held accountable for its actions. To ensure accountability, individuals must have access to government files. Such access provides a check on arbitrary exercise of public power and secrecy in the political process.”
Another aspect of the settlement is that, at the request of state Sen. Dave Min, the state Joint Legislative Audit Committee on May 14, in a bipartisan vote, authorized an audit of the settlement agreement with Pacific Airshow LLC.
Gates wrote a letter Tuesday to California Auditor Grant Parks and JLAC Chairman Councilman Greg Hart. Gates said the city of Huntington Beach is adamantly opposed to the audit and that the audit does not infringe on Huntington Beach's local autonomy as a charter city.
“The City will continue to oppose and take all necessary legal action to protect the City's rights and prevent state interference in City affairs,” Gates wrote, adding that he believes the audit is improper and violates state law.
Rep. Minh (D-Irvine), who represents parts of Huntington Beach in the 37th Senate District, fired back in a statement: “What is Huntington Beach City Attorney Michael Gates trying to hide? His claim that the City of Huntington Beach is not subject to state audit authority is absurd and baseless. But more importantly, why is he so desperately trying to hide the facts about the Pacific Air Show settlement, which he clearly played a major role in negotiating. City Attorney Gates is overreach. Huntington Beach residents are entitled to government transparency, and they will get it.”
Clayton Tarvin, who represents Gregory Pleasants and Brett Murdock, said once the full settlement money for the air show is received, it will be given to the state auditor, as well as offered to residents and taxpayers who want to see it.
“[The ruling] “This is a victory for the residents of Huntington Beach and a victory for openness and transparency in government,” she said. “Our government should be honest with us, not just tell us to sit back, shut up and accept it. That's not how it works in America. We have a right to know, and we will know.”