Ex-City Official Fined $18,000 : Government: Leonard Eliot, a former assistant city manager, admits he failed to disclose a conflict of interest when voting on expansion of mall.

SACRAMENTO — Leonard Eliot, a former West Covina assistant city manager, has agreed to pay an $18,000 fine stemming from an alleged conflict of interest and his failure to disclose it as required by California law, state investigators said this week.

Eliot, who has retired, agreed to pay the fine after an investigation by the state Fair Political Practices Commission determined that he had committed nine violations of the state Political Reform Act, the commission announced Monday.

In an agreement with the commission, Eliot acknowledged that a partnership in which he had a stake owned an Orange Julius franchise that stood to benefit from actions he took in 1989 regarding the expansion and restoration of the West Covina Fashion Plaza. The Orange Julius outlet, in which Eliot had held an interest since 1976, is located at the mall.

Eliot, who served as the assistant executive director of the city’s redevelopment agency, also acknowledged that he failed to file required economic-interest statements for 1987, 1988 and 1989. When he did file, in March, 1990, he failed to disclose his 12% stake in the partnership, Renel Enterprises.

In the documents, the commission staff said: “Because of the economic interests, Mr. Eliot was prohibited from participating in any decision which would have a reasonably foreseeable material financial effect on the Orange Julius franchise held by Renel Enterprises” or its lease at the shopping mall.

The Fair Political Practices Commission is scheduled to take action on the agreement at its meeting Tuesday.

Neither Eliot, who was assistant city manager for about 17 years, nor his lawyer could be reached for comment. However, in the documents released by the commission, Eliot indicated that he was aware of his obligation to file annual economic-interest statements and was provided forms annually by the city clerk. He told investigators that he was “very busy” and “simply procrastinated” in filing the statements.

In fact, he filed the statements only after an unnamed City Council candidate sought them and determined that Eliot had failed to submit the papers, according to the commission investigation.

The probe was launched in May, 1990, after the state’s political watchdog agency received a complaint, according to a commission spokeswoman. She said it is the agency’s policy not to disclose the name of a person who makes a complaint.

Elizabeth Hanna, West Covina city attorney, said it was her impression that Eliot’s retirement “had nothing to do with the investigation.” City officials say Eliot retired in August, 1990, but the FPPC says he remained on the city payroll until March, 1991.

Eliot is no stranger to controversy. In 1988, William Tarozzi, a successful candidate for the City Council, made one of Eliot’s decisions the prime campaign issue. The decision--made without approval from the Redevelopment Agency Board--was to allow a developer to repay a $567,264 debt to the Redevelopment Agency over a 12-year period without interest.

At the heart of the latest dispute was the determination by the Fair Political Practices staff that while holding an interest in the Renel partnership, Eliot participated in decisions and negotiations related to the expansion of the mall.

Among the actions cited by the commission’s staff:

Eliot’s recommendation on June 12, 1989, to the Redevelopment Agency board that it approve the final environmental impact report for the mall expansion, which is scheduled to be completed in the fall of 1993.

His recommendation to the agency board later that same month to establish a financing district to raise money to build parking and other facilities for the mall project and to enact a sales and use tax to assist in financing the expansion.

Between 1987 and 1989 alone, Eliot’s share of the franchise’s gross amounted to about $47,000, according to the commission documents.

The commission staff cited several mitigating factors in their investigation, including Eliot’s cooperation. They also noted that as of last August Eliot no longer had an interest in the Orange Julius franchise and since then has not received any additional income from the business.

West Covina Councilwoman Nancy Manners said she was aware that Eliot had failed to mail in his disclosure statements but unaware of the conflict of interest. She said that in relation to the mall expansion, the Orange Julius franchise “wasn’t important.”