The City Council decided Huntington Beach will appeal a state audit into its controversial settlement with the Pacific Airshow two months after a judge ruled that the review would go forward
“We believe the trial court made some reversible errors and we’re going to appeal that case,” City Attorney Mike Vigliotta said after a closed-session discussion Friday during which the council voted unanimously to pursue the appeal.
In April, the council had agreed to settle with the state, but Vigliotta said the state made “unreasonable requests” that made a deal impossible, including not having “any kind of guardrails whatsoever” on the scope of the audit.
In May 2024, the California Joint Legislative Audit Committee directed state auditor Grant Parks to review the settlement Huntington Beach leaders struck with the operators of the Pacific Airshow in 2023. The city agreed to pay the air show operator $4.9 million to make up for losses incurred after the 2021 show was cut short due to an oil spill. The settlement also included the potential for the air show operators to have exclusive rights to host the annual event for up to 40 years.
Parks sued the city in October 2024 for refusing to comply with his subpoena to interview staff and access permits and contracts related to the Pacific Airshow.
In July, Orange County Superior Court Judge Carmen Luege ordered the city to give Parks “access to, examination of, and reproduction of city records requested in connection” with the audit.
The ruling followed months of hearings in which the judge wrestled with questions about the extent of the state auditor’s subpoena powers and the due process rights a city is entitled to.
Luege ultimately ruled that the city cannot refuse to comply with the audit on grounds of confidentiality.
“The city argues that some requested materials exceed the audit’s scope or constitute attorney work product,” Luege wrote. “These concerns do not justify a categorical refusal to comply with (the audit).”