An Orange County Superior Court judge has cleared the way for a state audit into Huntington Beach’s settlement with the Pacific Airshow.
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In a tentative ruling on July 30, Judge Carmen Luege ordered Huntington Beach to give state auditor Grant Parks “access to, examination of, and reproduction of city records requested in connection” with the audit.
In May 2024, the California Joint Legislative Audit Committee directed Parks to audit a settlement Huntington Beach leaders struck with Pacific Airshow LLC 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 exclusive rights to host the annual event for up to 40 years.
The city inked a 25-year deal with Pacific Airshow LLC last September.
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.
The ruling comes after months of hearings and deliberations over the scope of a state audit and what due process rights a city might have. The judge has said she wanted to tread carefully with the case as there are few precedents for cities that have contested state audits.
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“If I’m going to dive into issuing a ruling about enforcement, I want to dive and step lightly because I don’t want to drown,” Luege said during a November hearing.
The city has called the probe a “witch hunt” and argued that the subpoena violates the home rule doctrine in the state constitution, which grants “individual charter cities,” such as Huntington Beach, the authority to manage their own finances.
Luege rejected that argument in her decision last week and said the state has the authority to audit a charter city.
The city had voted in April to pursue a settlement with the state over the audit to prevent legal fees from accruing.
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This is a developing story, please check back for updates.