Judge’s preliminary ruling orders Huntington Beach to comply with air show settlement agreement
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An Orange County judge recently ruled Huntington Beach must cooperate with state officials seeking to investigate its controversial $7-million settlement with the operators of the Pacific Airshow in 2023.
Huntington Beach’s status as a charter city does not exempt it from examination by the California State Auditor’s office, Orange County Superior Court Judge Carmen Leuge determined in a July 30 tentative ruling.
“The city and its responsible officers and employees shall comply with [the law] by permitting the auditor and the auditor’s authorized representatives … access to, examination of and reproduction of city records requested,” the ruling reads.
In addition to producing documents pertaining to its agreement with event management company Code Four, the city must also compel its former treasurer, Alicia Backstrom, to provide testimony.
“The court’s ruling is another step in this process,” Councilmember Chad Williams wrote in a statement Tuesday. “... Those who truly have nothing to hide should have no problem with transparency and accountability.”
The council voted in April to move forward with a proposal by Williams and Councilman Andrew Gruel to initiate talks with the State Auditor’s office in hopes of reaching an out-of-court deal. It’s unclear what may have been discussed between the two parties since then.
Both Williams and Gruel, as well as Councilman Don Kennedy and Mayor Pro Tem Butch Twining, were not members of the City Council when the Pacific Airshow settlement was negotiated.
Announced in May 2023, the deal raised eyebrows about some past and current council members’ relationship with Code Four, the company that stages the annual air show, and its chief executive, Kevin Elliott.
Several panelists acknowledged on campaign contribution forms they’d paid the local company to produce materials for their council campaigns, the Voice of OC reported in 2025.
The agreement was intended to compensate the company — which sued Huntington Beach after the last day of the 2021 Pacific Airshow was canceled due to an oil spill — not constitute a “giveaway to their campaign benefactor,” Ocean View School District school board President Gina Glayton-Tarvin told the Daily Pilot.
“Tax dollars are not their monopoly money to play with,” the Huntington Beach resident said of those who orchestrated the city’s deal with Code Four.
Although it is technically public record, Huntington Beach officials refused to share a copy of the settlement when the deal was inked.
Clayton-Tarvin sued for its release, and a judge forced the city to publish the document in 2024.
In addition to a $4.9 million payout, the settlement waived $454,145 in event and parking fees. It also authorized Code Four to monetize thousands of city-owned parking spots during the air show and a related music festival, and gave the company the right to host the shows at any time of year for up to 30 years.
After the document’s release, the bipartisan California Joint Legislative Audit Committee voted to investigate the origins of the agreement.
When Huntington Beach refused to produce witnesses and documents related to the matter, State Auditor Grant Parks sued the city.
In an email to the Pilot Thursday, city spokesperson Jessica Cuchilla said officials believe the auditor’s office “overstepped its own authority” by inserting itself into the city’s decision to settle a lawsuit.
“The city is committed to open and transparent government,” she wrote. “Despite our belief that the state audit was improper and illegal, the city reached out in an attempt to address the state’s request for information. However, the state refused to consider the city’s position in any meaningful way. We will discuss our options regarding this case.”