SMMC Officials Take Challenge in Stride

• Law Firm Seeks Investigation of Their Use of Funding

BY BILL KOENEKER

A Conservancy official said the attorney general’s office has already presented an opinion on the matter. “They found it to be perfectly legitimate,” said Rorie Skei, who is the chief deputy director of SMMC.

The crux of the letter, penned by the law firm Stradling, Yocca, Carlson & Rauth “on behalf of certain concerned taxpayers,” is that the SMMC awarded funds to its joint powers agency, called the Mountains Recreation Conservation Authority, that were either allegedly misspent because they were not used for the stated purposes or that it was improper for SMMC to be giving money to MRCA because “[SMMC] is the de facto operator of the MRCA.”

Skei said both assertions are incorrect. “The SMMC and MRCA are joint powers. It is an incorrect conclusion,” she added.

The SMMC is essentially, according to the law firm, making grants of Prop 50 monies to itself. “As previously noted by the Department of Finance in its 2004, 2005 and 2006 audits of SMMC ‘there is not an arms-length separation’ between SMMC and MRCA, which situation is evidenced by the violations identified. Because of SMMC and MRCA’s significant and continuing violations of California law, the taxpayers believe that only the institution of legal action will serve to stop SMMC and MRCA’s illegal expenditure of public funds,” the letter states.

Skei said the charges two years ago were addressed by the two state agencies, which found no wrongdoing and the SMMC’s actions to be perfectly legitimate. She said the two grants being questioned by the taxpayers were specifically approved by the attorney general’s office. Citing state policy, Skei said the bond money may be used for planning and legal services. “That is the law,” she added.

Because the statute of limitations to bring a reverse validation action is approaching, the state agencies are being asked to respond by Oct. 17. If the state does not file legal action, the taxpayers have indicated they will do so.