City of Irvine City Council Great Park Audit in Re

CITY OF IRVINE CITY COUNCIL GREAT PARK AUDIT

IN RE: ) ) ORANGE COUNTY ) GREAT PARK CORPORATION. ) ) ) ______)

DEPOSITION OF SUKHEE KANG

Date and Time: Wednesday, February 18, 2015 9:58 a.m. - 1:12 p.m.

Location: 18881 Von Karman Avenue Suite 1700 Irvine, California

Reporter: Erika Kotteakos, RPR, CSR Certificate No. 9698

Job No. 5344 1 CITY OF IRVINE CITY COUNCIL 2 GREAT PARK AUDIT 3 4 5 6 IN RE: ) ) 7 ORANGE COUNTY ) GREAT PARK CORPORATION. ) 8 ) ) 9 ______) 10 11 12 13 14 15 16 17 18 19 20 Deposition of SUKHEE KANG, taken before Erika 21 Kotteakos, RPR, CSR, a Certified Shorthand Reporter for 22 the State of California, with principal office in the 23 County of Orange, commencing at 9:58 a.m., on Wednesday, 24 February 18, 2015, at 18881 Von Karman Avenue, 25 Suite 1700, Irvine, California.

ELITE COURT REPORTING (949) 829-9222 1 APPEARANCES: 2 For City of Irvine City Council: 3 ALESHIRE & WYNDER, LLP BY: ANTHONY R. TAYLOR, ESQ. 4 18881 Von Karman Avenue Suite 1700 5 Irvine, California 92612 (949) 223-1170 6 7 For the Witness: 8 SCHIFFER|BUSS, APC BY: WILLIAM L. BUUS, ESQ. 9 3070 Bristol Street Suite 530 10 Costa Mesa, California 92626 (949) 825-6140 11 -and- 12 MKC LAW GROUP 13 BY: MIN K. CHAI, ESQ. 20101 S.W. Birch Street 14 Suite 210 Newport Beach, California 92660 15 (949) 514-8652 16 17 18 19 20 21 22 23 24 25

ELITE COURT REPORTING (949) 829-9222 1 I N D E X 2 EXAMINATION BY: PAGE 3 MR. TAYLOR 6 4 5 6 E X H I B I T S 7 EXHIBIT NO. PAGE 8 1 - Pages 14 and 15 of the Schematic Design 25 Contract (2 pages) 9 2 - Pages 1 and 2 of a letter dated 5/14/08 to 26 10 Stu Mollrich from Gafcon (GAFCONGP0035815 and GAFCONGP0035816) 11 3 - Invoice dated 3/16/10 to Stu Mollrich from 27 12 Gafcon (GAFCONGP0023343) 13 4 - E-mail string, latest dated 5/13/08 to Laura 31 Pili from Josh Sebert (GAFCONGP0035814) 14 5 - Page 30 of the Schematic Design Contract 36 15 (1 pages) 16 6 - E-mail string, latest dated 8/25/08 to Josh 38 Sebert from Dennis Walters (GAFCONGP0035519) 17 7 - Change Order No. 35, with attached Exhibit H 41 18 (5 pages) 19 8 - Agreement Concerning Close-Out of Schematic 52 Design Contract (9 pages) 20 9 - Collection of e-mails and attachments, the 69 21 first of which is an e-mail string, latest dated 4/8/11 to Craig Reem and Sukhee Kang 22 from Stu Mollrich (37 pages) 23 10 - Excerpt taken from the city's video system 109 for a meeting on January 25th, 2007 (1 page) 24 25

ELITE COURT REPORTING (949) 829-9222 1 I N D E X (Cont.) 2 3 E X H I B I T S 4 EXHIBIT NO. PAGE 5 11 - E-mail string, latest dated 7/24/06 to Subia 110 Aleem from Pamela Shaffer (GAFCONGP0032264 to 6 GAFCONGP0032266) 7 12 - E-mail string, latest dated 6/20/08 to Theresa 112 Hancock from Corbet Belcher (GAFCONGP0020027 8 and GAFCONGP0020028) 9 10 11 12 QUESTIONS WITNESS INSTRUCTED NOT TO ANSWER 13 PAGE LINE 14 76 14 15 16 17 18 19 20 21 22 23 24 25

ELITE COURT REPORTING (949) 829-9222 1 IRVINE, CALIFORNIA; 2 WEDNESDAY, FEBRUARY 18, 2015; 9:58 A.M. 3

4 SUKHEE KANG, 5 called as a witness and having been first duly sworn by 6 the Certified Shorthand Reporter, was examined and 7 testified as follows: 8 THE REPORTER: Do you solemnly swear that the 9 testimony you're about to give in the cause now pending 10 shall be the truth, the whole truth, and nothing but the 11 truth, so help you God? 12 THE WITNESS: I do. 13

14 EXAMINATION 15 BY MR. TAYLOR: 16 Q Good morning, Mr. Kang. My name is Anthony 17 Taylor. I'm special counsel for the City of Irvine 18 Great Park Audit. 19 How are you doing this morning? 20 A Fine, sir. 21 Q I see that you're here with two attorneys. I 22 was going to give your attorneys the opportunity to 23 introduce themselves, and then I was going to ask you, 24 after that, to state and spell your full name. 25 But why don't we go ahead and have your

ELITE COURT REPORTING (949) 829-9222 1 attorneys introduce themselves, just so we have a 2 record. 3 MR. BUUS: I'm William Buus on behalf of 4 Mayor Kang, and sitting next to me is Min Chai, 5 co-counsel. 6 MR. TAYLOR: Thank you. 7 BY MR. TAYLOR: 8 Q And Mr. Kang, can you please state and spell 9 your full name for the record. 10 A Sure. Sukhee, S-u-k-h-e-e, Kang, K-a-n-g. 11 Q Thank you. 12 Have you ever had your deposition taken 13 before? 14 A I have done once. 15 Q What type of case was that? 16 A I don't remember, but it was about seven or 17 eight years ago. 18 Q Did it involve the City of Irvine? 19 A No. 20 Q Did it involve a personal matter or a business 21 matter? 22 A I'm not sure. 23 Q Let me just take a brief moment and explain, 24 as I have done in the other depositions that have been 25 conducted for the Great Park Audit, the legislative

ELITE COURT REPORTING (949) 829-9222 1 subpoena process under the Government Code. 2 You've come here voluntarily in response to a 3 letter. I asked for some additional information and the 4 opportunity to speak with you. 5 A Yes. 6 Q And you were very cooperative. Your attorney 7 contacted my office and we arranged for today's 8 deposition. 9 There are some formalities we have to go 10 through in the deposition process. One of the most 11 important things is that only one of us can speak at a 12 time. 13 There will be times where you may know the 14 answer to my question before I finish the question. The 15 request I have of you is to please pause and allow me to 16 finish my question. 17 There may be times where your attorney or 18 attorneys may object to various questions that I have. 19 Please pause to allow them to assert those objections. 20 A Thank you. 21 Q At the end of this deposition process, you 22 will be provided with a deposition booklet. That 23 booklet will contain all of your testimony from today's 24 deposition. 25 You will be afforded the opportunity to make

ELITE COURT REPORTING (949) 829-9222 1 changes. You may have seen already on the Great Park 2 deposition public records disclosure that the city has 3 done, there are changes posted to various depositions. 4 We have allowed people to make changes. 5 The only words of caution I give is if you 6 make a change that's material, that is something that 7 could be commented on in the audit. For example, if you 8 testified "yes" to an answer and then you changed it to 9 a "no," that's something that could potentially be 10 commented on in the audit. 11 If we were in a more formal setting, such as 12 litigation, you would receive an instruction from an 13 attorney like myself that that could be used against 14 your credibility in court, but that's not the process 15 we're in here. So that's staying consistent with that 16 formality. 17 Does that make sense to you? 18 A Yes. 19 Q Now, all the depositions, as you've probably 20 seen, they are treated as public documents under the 21 California Public Records Act. So the city has elected 22 to post the documents on its Web site, which is one 23 manner of complying with the California Public Records 24 Act. 25 So I do want to let you know and make you

ELITE COURT REPORTING (949) 829-9222 1 aware that the testimony today is considered part of a 2 public proceeding. 3 Do you understand that? 4 A Yes. 5 Q Are there any documents you reviewed in 6 preparation for your deposition today? 7 A No. 8 Q Have you reviewed any of the deposition 9 transcripts that have previously been posted for the 10 Great Park Audit? 11 A A couple. But not in full length, just 12 section by section, yes. 13 Q And which of those transcripts did you review? 14 A I reviewed the -- the last one, which is -- 15 Q Stu Mollrich? 16 A Stu Mollrich. And I reviewed previously 17 the -- the CEO of the Great Park, Mike Ellzey. 18 Q Any other transcripts? 19 A No. 20 Q Was there any statements in particular that 21 stood out in your mind by either Stu Mollrich or Mike 22 Ellzey as being something that surprised you or 23 concerned you? 24 A No. 25 Q Besides your attorneys, did you speak with

ELITE COURT REPORTING (949) 829-9222 1 anyone else in preparation for your deposition today? 2 A No. 3 Q I did look at your background, at least in 4 terms of what's available publicly on the Internet, in 5 preparation for your -- your deposition today. 6 I had some questions. I'm just trying to fill 7 in some gaps. 8 A Okay. 9 Q I understand that you were first elected to 10 the Irvine City Council in 2004. 11 Is that correct? 12 A That's correct. 13 Q And then you were reelected in 2006; is that 14 correct? 15 A That's correct. 16 Q And in 2008, you were elected as the mayor of 17 Irvine; correct? 18 A Correct. 19 Q And you served as the mayor between 2008 and 20 2012; correct? 21 A That's correct. 22 Q Prior to that, as I understand it, you were in 23 a management role with a Circuit City chain. 24 Is that correct? 25 A That was long before.

ELITE COURT REPORTING (949) 829-9222 1 Q Long before? 2 A So from -- so from 1977 -- that's the year 3 that I came to America. So from '77 to '92, I worked 4 for the Circuit City. 5 Q What was the highest job position -- 6 A General manager. 7 Q Were you general manager of a region, a 8 particular number of stores? 9 A Of a store. 10 Q Of one store? 11 A Right. 12 Q Which store was that? 13 A Well, there were -- I mean, out of 15 years, I 14 moved to a lot of different stores. Mostly, in Orange 15 County. 16 Q Some of the information I read on the -- the 17 research I did on the Internet, it's interesting. It 18 talked about -- it sounds like your inspiration to go 19 into politics was the 1992 riots and everything that 20 happened to Korean Americans in the riots at that time. 21 A Yes. 22 Q Is that your inspiration? 23 A Yes. 24 Q The one question I had, I was trying to put 25 together your educational background. It appeared that

ELITE COURT REPORTING (949) 829-9222 1 you did your education in South Korea. 2 Is that correct? 3 A That's correct. 4 Q And what degree or degrees did you obtain in 5 South Korea? 6 A I have a B.S., bachelor of science, on 7 agricultural economics. Graduated in 1977, right before 8 I came to America. 9 Q Do you have any other degrees? 10 A Recently, back in 2011, I received an honorary 11 doctorate degree from Dongseo University, D-o-n-g-s-e-o 12 University, from Busan, Korea. 13 Q Any other college degrees? 14 A No. 15 Q Going back to your prior work experience, 16 after doing the management roles you had at Circuit 17 City, what did you do after that? 18 A I ran my small business, shoe stores. 19 Q Was it a particular chain that you ran? 20 A A licensee. It's a -- it was a Stride Rite 21 Bootery, children's shoe chain. I had three stores. 22 Q Besides that business, did you run any other 23 businesses or manage any other businesses after Circuit 24 City? 25 A In between, temporarily, just about maybe ten

ELITE COURT REPORTING (949) 829-9222 1 months, I was hired by what's called Hollytron, who is 2 no longer in business. And I managed in their operation 3 for about nine to ten months. 4 Q What year was that? 5 A You know, I don't quite remember. I think 6 that was '96. 7 Q Are there any other businesses that you either 8 ran or managed that I've missed in my questioning since 9 Circuit City? 10 A That's about it. 11 Q And when you were -- I'm talking now to when 12 you were on the Irvine City Council -- 13 A Okay. 14 Q -- starting in 2004. Were you working at the 15 same time you were on the Irvine City Council or were 16 you focused solely on your city council duties? 17 A I still had my business until 2007. So yes, I 18 was working at my, you know, shoe business. 19 Q Until 2007? 20 A '-7. 21 Q And then between 2007 through 2012 -- 22 A I -- 23 Q -- were you working -- 24 A I devoted -- 25 MR. BUUS: Wait until he's done asking his

ELITE COURT REPORTING (949) 829-9222 1 questions. 2 THE WITNESS: Oh, sorry. 3 BY MR. TAYLOR: 4 Q That's all right. Go ahead. 5 A I started saying I devoted entirely to city 6 council. 7 Q And I understand now you're working as an 8 adjunct professor at Chapman University. 9 Is that correct? 10 A I taught two semesters last year, and 11 currently, I'm working as a chancellor fellow at the -- 12 at Chapman University. 13 Q Do you have any other employment besides that 14 currently? 15 A I -- I have a private consulting business 16 under Kang & Associates. 17 Q And between 2012 through the present time, 18 other than working at Chapman University and your 19 consulting business, have you done any other type of -- 20 A Yes. 21 Q -- work? 22 A UCI. I worked as a -- a special advisor to 23 the -- the chancellor. 24 Q And besides the three positions we've covered 25 at Chapman, UCI, and your consulting business, were

ELITE COURT REPORTING (949) 829-9222 1 there any other positions of professional employment you 2 had after 2012? 3 A Yes. One more. Briefly, I worked for 4 Sterling America, Incorporated, for, like, seven months. 5 Q What is Sterling America? 6 A Well, it's -- they own a building in Irvine. 7 Q What did you do for them? 8 A I helped them setting up their potential 9 development project, expanding their -- the medical 10 building to a bigger space. 11 Q Have I now covered all of your employment -- 12 A Yes. 13 Q -- after 2012? 14 A Yes. 15 Q Now, just -- your attorney's cautioned you, as 16 well. Again, I'm not trying to be anything less than 17 polite here. He's cautioned you, you want to slow down 18 just a little bit to make sure I finish my questions. 19 A I'll pay attention to it. 20 Q Now, there's another individual that I 21 interviewed in connection with the -- the Great Park 22 Audit who had a very distinguished professional career 23 for The Irvine Company, and that is Dick Sim. 24 Do you know who Dick Sim is? 25 A I do remember him.

ELITE COURT REPORTING (949) 829-9222 1 Q When was the last time you talked to Mr. Sim? 2 A I don't think I ever talked to him person -- 3 in person. I don't remember. 4 Q He's not somebody you were close with? 5 A Huh-uh. 6 Q "No"? 7 A No. 8 Q Do you recall when Mr. Sim was on the -- the 9 board of directors for the Great Park Corporation back 10 around the time when you began on the city council? 11 A I do remember. 12 Q Do you remember at some point in time that 13 around 2005, Mr. Sim resigned his position? Do you 14 remember that? 15 A Yes, I do. 16 Q Do you remember why he resigned? 17 A I was new on the council at the time, so I 18 don't quite remember why he -- he resigned. There was 19 something about his dissatisfaction of the -- the Great 20 Park Board. 21 Q At that time, did you ever have any 22 discussions with Mr. Sim about the issues that he had in 23 terms of the way he thought the board should be managed? 24 A No. 25 Q Did you ever have any discussions around that

ELITE COURT REPORTING (949) 829-9222 1 time, in 2005, with any other Great Park board member or 2 chairperson about the reasons why Mr. Sim was leaving 3 the board? 4 A I don't remember. 5 Q Do you ever recall discussing Mr. Sim's 6 concerns and the reasons why he left the board with 7 Chairman Agran at that time? 8 A I don't remember. 9 Q When you came on board the City Council of 10 Irvine and the Great Park Board, did you have any 11 concerns at that time, in the early time -- and this is 12 2004/2005 -- on how things were being run, based on your 13 personal experience in business? 14 A No. 15 Q Did you think everything was being run well at 16 that time? 17 A Yes. 18 Q And did you have an expectation in 2006 how 19 long it would take for the Great Park to be constructed? 20 A Could you repeat the question? 21 Q Certainly. 22 MR. TAYLOR: Actually, if you could read it 23 back, that would be great. 24 (Record was read.) 25 THE WITNESS: Not personally. But I think

ELITE COURT REPORTING (949) 829-9222 1 numbers were thrown, like 20 years, to finish building 2 the park. 3 BY MR. TAYLOR: 4 Q When you came onto the council in 2004, did 5 you, at any point in time, look at some of the prior 6 cost estimates that were done by the former city 7 manager, Miss Hart, to construct the Great Park about 8 that time? 9 A I don't remember. 10 Q One of the things I'll represent to you -- and 11 it's a document that's been attached to several of the 12 depositions that are on the city's Web site -- is that 13 there was an estimate of approximately 353 million in 14 late 2003 by the city to construct the Great Park; and 15 then by 2008, that estimate had changed, and it had 16 increased to 1.6 billion. 17 Do you recall why that change occurred? 18 A No, I don't. 19 Q Starting in 2004, what was your involvement in 20 terms of the day-to-day work that the Great Park 21 Corporation and the city were doing towards the design 22 process and moving forward with the Great Park? 23 A My involvement was just one of nine board 24 members that attend board meetings and cast a vote based 25 on staff recommended action, what have you. Nothing

ELITE COURT REPORTING (949) 829-9222 1 much other than that. 2 Q Did, over time, starting in 2004 through the 3 last time that you served as mayor in 2012 -- did -- did 4 your involvement in the day-to-day activities of the 5 Great Park increase over time? 6 A Not much, because I was staying as just a 7 regular board member, even though I was mayor. So I go 8 to the meeting and receive briefings from staff on every 9 board meeting and action item, I cast vote on it, and 10 that's what I did. 11 Q Did you regularly meet with staff of either 12 the Great Park Corporation or of the city prior to 13 council meetings where actions were being requested for 14 approval for the Great Park? 15 A For the city, as mayor, usually we a have 16 weekly meeting. It's on Monday. And city manager go 17 over the agenda items; and if there's any discussion or 18 question, we ask and answer questions. 19 Q Do you recall, outside of any public meetings 20 that occurred -- and that would include Great Park Board 21 meetings or city council meetings -- expressing to staff 22 any personal thoughts you had in terms of what should be 23 built at the Great Park -- 24 A No. 25 Q -- during 2004 through 2012?

ELITE COURT REPORTING (949) 829-9222 1 A No. 2 Q Did you have any particular preference as to 3 any specific features of the Great Park that should be 4 built during that time? 5 A No. 6 Q Did you observe other city council members or 7 Great Park board members have strong feelings about what 8 should be constructed at the Great Park? 9 A No. But based on the master plan that the 10 board approved. So that was our guideline, looking at 11 the -- at the park. 12 Q Did you have any observations about how 13 involved Chairman Agran was compared to other board 14 members or council members in the day-to-day work at the 15 Great Park between 2004 and 2012? 16 MR. BUUS: I'm just going to clarify this 17 question. Are you asking him whether or not he observed 18 Larry Agran's work -- 19 MR. TAYLOR: Exactly. 20 MR. BUUS: -- in connection with the 21 Great Park? 22 MR. TAYLOR: Exactly. 23 MR. BUUS: Okay. 24 BY MR. TAYLOR: 25 Q It wouldn't be just observations. You could

ELITE COURT REPORTING (949) 829-9222 1 have a situation, for example, if Chairman Agran or 2 somebody else said, "Oh, I just met with Chairman Agran 3 and we discussed the following." Other than you 4 personally observing something, there's other ways that 5 you might know of something. 6 A No. 7 Q Did you speak regularly with Chairman Agran 8 during the time he was chairman of the Great Park? 9 A Not regularly. But yes, we did meet sometime. 10 Q When you met, what were the types of 11 discussions that you had, just by way of example? 12 A You know, I don't recall. 13 Q Do you recall if the idea of hiring a project 14 manager -- and this is someone who's, for example, a 15 licensed engineer or contractor with experience building 16 a major park for a city or county -- was discussed 17 between 2004 and 2012? 18 A Would you mind repeating the question? 19 Q Sure. 20 MR. TAYLOR: If you could read it back. 21 THE WITNESS: Sorry. 22 (Record was read.) 23 THE WITNESS: I don't remember. 24 BY MR. TAYLOR: 25 Q You spoke earlier about the master plan. I'm

ELITE COURT REPORTING (949) 829-9222 1 going to skip ahead just a little bit. What I have here 2 in front of me is a binder -- and you don't have to read 3 the whole binder. It's a large binder. It's about an 4 inch and a half thick. 5 And what's in here is the schematic design 6 contract that was executed between the city and the 7 Great Park Design Studio on the -- on August 27th, 2007. 8 What I've done, to try to make this a little 9 bit easier, is I've pulled out two sections of this 10 agreement that I'm going have a series of questions on, 11 and these are questions that have come up in the audit. 12 As you probably know, one of the specific 13 tasks that the audit firm of HSNO and our law firm, as 14 assisting HSNO, was assigned to do last year in January 15 of 2014 by the city council was to go through all the 16 various contracts and ensure that there was compliance 17 with various contract provisions. 18 So I'm just focusing in on some provisions 19 here, just to see if you recall these provisions. I 20 have copies of this for your counsel, as well. I made 21 four copies. 22 I'm going to mark this as Exhibit 1 for your 23 deposition and present this to you. I've made an arrow 24 where you could start reading through. These are the 25 various conflict of interest provisions.

ELITE COURT REPORTING (949) 829-9222 1 MR. TAYLOR: And I have copies for you, as 2 well, Counsel, so there's nothing -- 3 MR. BUUS: And just to clarify, you wanted him 4 to read 1.2.3.7? 5 MR. TAYLOR: Right. So -- and following. Let 6 me list, just for the record -- 7 MR. BUUS: Okay. 8 MR. TAYLOR: -- so we're very clear, which 9 sections to read. 10 MR. BUUS: Yes. 11 MR. TAYLOR: This is page 14 and page 15 of 12 the schematic design contract, and the portion I've 13 asked Mr. Kang to read starts at the bottom of the page. 14 It's the second to last section. 15 It's section 1.2.3.7. And then after that, 16 there's 1.2.3.7.1. And then after that is 17 Section 1.2.3.7.2. So it's just those three sections, 18 are the only ones I'm asking Mr. Kang to read at this 19 time. 20 MR. BUUS: Go ahead and read those, and read 21 them carefully, and let me know when you're done. 22 THE WITNESS: (Witness complies.) 23 I read it. 24 MR. TAYLOR: Thank you. 25 ///

ELITE COURT REPORTING (949) 829-9222 1 BY MR. TAYLOR: 2 Q And there are some definitions used here, so I 3 just want the record to be clear, because the 4 definitions are labeled on the first page that I've 5 referred to of the large binder I have here with the 6 schematic design contract. 7 The owner is defined as the City of Irvine, 8 which is what you'd expect. The architect is a little 9 bit broader. It's not just Ken Smith Architect, it's 10 actually defined as "Great Park Design Studio, in care 11 of Gafcon." 12 And as you understand it, Mr. Kang, you recall 13 that the Design Studio was a joint venture between the 14 Ken Smith Architect -- Architect Company and Gafcon, as 15 well. 16 Do you recall that? 17 A Yes, I do. I believe they're the consortium, 18 when Ken Smith, as a master designer, received the award 19 of the -- being a master designer of the park. 20 Q So I've marked the conflict of interest 21 provision I just had you read as Exhibit 1. 22 (Deposition Exhibit 1 was later marked 23 for identification and is attached hereto.) 24 BY MR. TAYLOR: 25 Q As you sit here today, do you recall there

ELITE COURT REPORTING (949) 829-9222 1 being any work that occurred between Gafcon or Ken Smith 2 and any subconsultant of the project or any other entity 3 affiliated with the project beyond the scope of what was 4 actually done for the Great Park? 5 So, for example, do you recall any work being 6 done between Gafcon and Forde & Mollrich beyond the 7 scope of the Great Park work? 8 A No. 9 Q Let me share with you some information we've 10 uncovered during the audit. What I'm sharing this with 11 you for is to see if you've ever seen this before. 12 A Okay. 13 Q I'm going to mark as Exhibit 2 a two-page 14 document. And I have copies for your counsel. It's on 15 Gafcon letterhead. It's dated May 14th, 2008 -- it 16 says, "Revised August 22nd, 2008" -- to Stu Mollrich. 17 And it concerns Mollrich residence -- excuse me, 18 Mollrich residencies [sic] in Laguna Beach. And provide 19 this to you, give you a moment to read that. 20 (Deposition Exhibit 2 was later marked 21 for identification and is attached hereto.) 22 (Pause in the proceedings.) 23 THE WITNESS: Yes, I read it. 24 BY MR. TAYLOR: 25 Q Have you ever seen that document before?

ELITE COURT REPORTING (949) 829-9222 1 A No. 2 Q At any point in time -- let me strike that. 3 You know who Stu Mollrich is; correct? 4 A Yes. 5 Q And at any point in time, did Stu Mollrich 6 tell you that Gafcon was doing work on his two homes in 7 Laguna Beach starting in 2008? 8 A No. 9 Q Does that surprise you? 10 A Yes. 11 Q Now, I'll provide another document to you I'm 12 going to mark as Exhibit 3. This shows the dates of the 13 invoices for the work, just so you have that. 14 (Deposition Exhibit 3 was later marked 15 for identification and is attached hereto.) 16 BY MR. TAYLOR: 17 Q So those provide the various dates of 18 invoices. This is Exhibit Number 3. 19 I take it you've never seen this before? 20 A No. 21 Q And so this shows work done between March of 22 2009 through -- through February of 2010, which I'll 23 represent to you is during the time period of the 24 schematic design contract. And you can correct me if 25 you think that's an error.

ELITE COURT REPORTING (949) 829-9222 1 The -- what I want to do is turn back to the 2 conflict of interest language that -- that I had looked 3 at earlier and shared with you. This is Exhibit 1. 4 It says, "The Architect" -- which includes 5 Gafcon -- and it says, "(including the Architect's 6 Representatives and the Key Subconsultants)" -- and I'm 7 reading from Section 1.2.3.7 -- "shall not engage in any 8 activity, or accept any employment, interest or 9 contribution, which could create an appearance of 10 impropriety of business affairs or that would reasonably 11 appear to compromise the Architect's professional 12 judgment with respect to the Project." 13 Now, it's your understanding that during this 14 time period in the schematic design contract, Forde & 15 Mollrich was a subconsultant to Gafcon and Design 16 Studio; correct? 17 A Yes. 18 Q Going to Section 1.2.3.7.1, there's a sentence 19 that says -- starting at the end of that page 14, it 20 says, "Architect further agrees that while this 21 agreement is in effect, Architect shall not acquire or 22 otherwise obtain any interest, direct or indirect, that 23 would interfere with or impair in any manner or degree 24 the performance of Architect's obligations and 25 responsibilities under this Agreement."

ELITE COURT REPORTING (949) 829-9222 1 Do you see that? 2 A Yes. 3 Q Now, you were on the city council in 2007, 4 when the schematic design agreement was agreed upon and 5 adopted by the city council; correct? 6 A Yes. 7 Q Do you recall any discussion occurring 8 concerning the purpose of the conflict of interest 9 language that I just read out of the schematic design 10 agreement? 11 A No. 12 Q Do you recall reading this conflict of 13 interest language back in 2007? 14 A I don't remember. 15 Q Is this conflict of interest language that 16 I've read that you've seen here in Exhibit 1 -- is this 17 something that's typical in City of Irvine contracts, 18 based on your experience? 19 A I'm not sure. 20 Q Based on your experience as a city council 21 member and mayor, is it a very serious and material 22 matter where there's a conflict of interest between a 23 particular contractor and a consultant? 24 MR. BUUS: I'm going to object that that's a 25 rather vague and ambiguous question.

ELITE COURT REPORTING (949) 829-9222 1 But to the extent you understand it, you may 2 respond to it. 3 MR. TAYLOR: Let me strike that. Let me ask 4 it a different way -- 5 THE WITNESS: Okay. 6 MR. TAYLOR: -- that's probably a little bit 7 clearer. 8 BY MR. TAYLOR: 9 Q Based on your experience as a council member 10 and former mayor of the City of Irvine, can you please 11 explain to me why the city would have a conflict of 12 interest provision similar to that as I've read to you 13 on Exhibit 1? 14 MR. BUUS: I'm going to object to the extent 15 that it asks him to provide information that lawyers 16 like you and I would have and would know concerning the 17 reasons behind provisions like this. And to that 18 degree, I'm going to object that it would call for his 19 speculation, at least to some extent. 20 To the extent that you can answer the 21 question, if you feel like you can, then please feel 22 free to do so. 23 THE WITNESS: No. 24 BY MR. TAYLOR: 25 Q You don't know?

ELITE COURT REPORTING (949) 829-9222 1 A I don't have any information. 2 Q Does it cause you any concern, as you sit here 3 today, to read now, it appears for the first time, that 4 Gafcon and Stu Mollrich had a business dealing whereby 5 Gafcon was doing construction-management-type work? 6 And I want to be very clear on that, before we 7 go much further. Let me label as Exhibit 4 -- and I 8 will just read the description here of Exhibit 4 and 9 incorporate that into my question. 10 (Deposition Exhibit 4 was later marked 11 for identification and is attached hereto.) 12 BY MR. TAYLOR: 13 Q Have you ever seen Exhibit 4 before? 14 A I'm just reading. No. 15 Q Exhibit 4, I'm referring to the last e-mail 16 string. In the string here dated May 13th, 2008, at 17 11:35 a.m., it says, "Engagement of Gafcon." 18 It says, "Jerry, this is to confirm that I 19 intend to engage Gafcon as owner's representative on the 20 construction projects on subject to approval of scope 22 of work and fees." 23 So the work that Gafcon did for the Stu 24 Mollrich residencies is described as Gafcon serving as 25 the owner's representative.

ELITE COURT REPORTING (949) 829-9222 1 And just so my question is clear, does it 2 cause you any concern, sitting here today, to see that 3 in 2008, Stu Mollrich engaged Gafcon to do work on two 4 private homes in Laguna Beach for Stu Mollrich during 5 the same time Gafcon was doing the Great Park work and 6 also overseeing Forde & Mollrich as a subconsultant for 7 the Great Park? 8 MR. BUUS: I'm going to object that his 9 concerns today have nothing to do with what it is we're 10 here today to discuss. 11 He's here today to provide whatever type of 12 facts based on his own personal experiences and whatnot 13 concerning these past events. His concerns today, 14 whether personal or otherwise, I don't believe bear in 15 any respect upon your work here today. 16 MR. TAYLOR: Well, I disagree, but I'm not 17 here to have a disagreement with attorneys. I assume 18 you're instructing him not to answer. You're just 19 making an objection for the record. 20 MR. BUUS: I -- I am not instructing him not 21 to answer. If he wishes to answer, he may. I am -- I 22 am stating for the record that I don't believe that his 23 concerns have any relevance to do with the Great Park 24 Audit. 25 MR. TAYLOR: Well, I think it's very relevant.

ELITE COURT REPORTING (949) 829-9222 1 Let me explain to you -- 2 MR. BUUS: Because he's not a fact-finder. 3 MR. TAYLOR: Well, he was on the city council. 4 MR. BUUS: He was. He's no longer. 5 MR. TAYLOR: And -- right. But if -- if he -- 6 I think where we're going here, just so you're 7 clear, I'm trying to see if it -- if you had known 8 certain information that you said you didn't know until 9 now, as I understand your -- your testimony, if it would 10 have impacted how the Great Park would have proceeded 11 during this time period. 12 I think that's very material. 13 MR. BUUS: Well, let me -- let me see if we 14 can approach it this way, because I think I know where 15 you're driving and I don't disagree with where you're 16 driving, okay. 17 You want to know whether or not he would have 18 liked to have seen this information at the time that 19 this e-mail and agreement were generated, whether as a 20 city council member or as -- as the mayor, and whether 21 or not he would have liked to investigate things further 22 to see if there was any sort of improprieties. 23 If -- if that is going to be your question, I 24 have no problem with him answering that. 25 ///

ELITE COURT REPORTING (949) 829-9222 1 BY MR. TAYLOR: 2 Q Well, I think your counsel has articulated a 3 question here, and I'm going to try to resolve our 4 disagreement here and move on with your -- your 5 deposition. 6 But based on the information that I've shared 7 with you, in particular, Exhibits 2 through 4 for the 8 deposition, do those exhibits include information that 9 you would have liked to have seen as a city council 10 member or mayor during the relevant time period between 11 2008 and 2010? 12 A I've been struggling with the -- how to answer 13 those questions. I don't have enough legal knowledge to 14 propose my own judgment, and that's why I've been 15 struggling how to answer that question. 16 Q So if you had been presented with the 17 information that I just gave you in this deposition 18 that, as I understand it from your testimony, you have 19 never seen before -- 20 Correct? 21 A No. 22 MR. BUUS: Is that correct? 23 THE WITNESS: That's correct. 24 BY MR. TAYLOR: 25 Q That's correct. You've never seen this

ELITE COURT REPORTING (949) 829-9222 1 information; correct? 2 A That's correct. 3 Q And this information, I'm talking about 4 Exhibits 2 through 4, just so we're clear. 5 And my question to you is, had you seen the 6 information contained within Exhibits 2 through 4 before 7 today, as a city council member or mayor, what would you 8 have done in response to that? 9 A You know, once again, I'm struggling with that 10 question. You know, bear with me. 11 I don't want to speculate, not having enough 12 legal information or legal knowledge, how to answer that 13 question. 14 Q In situations where you needed more legal 15 knowledge or more legal information while you were on 16 the Irvine City Council, would you have normally gone to 17 the city attorney directly or the city manager or 18 somebody else at the city to get assistance? 19 A I would have first contact city manager for 20 help. 21 Q Did you regularly -- when you were on the city 22 council in Irvine and as mayor, did you regularly speak 23 directly with the city attorney, or did you work through 24 the city manager before contacting the city attorney? 25 A Both. Mostly, with city manager and city

ELITE COURT REPORTING (949) 829-9222 1 attorney. If there was a specific question that 2 addressed to the city attorney, that I would communicate 3 with the city attorney. 4 Q Well, are the matters that we've gone through 5 in the first part of your deposition here this morning 6 in Exhibits 1 through 4 -- are those matters that you 7 would have gone to the city attorney, as well, on 8 besides the city manager? 9 A Probably city manager will get the answer for 10 me. 11 Q I believe we're on Exhibit 5. Exhibit 5 is 12 another portion of the schematic design contract. I've 13 highlighted one particular section, which is 14 Section 1.3.6.25. It's on the bottom of page 30, which 15 I'm labeling as Exhibit 5 to your deposition. 16 (Deposition Exhibit 5 was later marked 17 for identification and is attached hereto.) 18 BY MR. TAYLOR: 19 Q So you just need to read that -- that bottom 20 paragraph. 21 A (Witness complies.) 22 Counsel, I have a question. 23 Q Sure. 24 A 1.3.6.25, "at the Owner's cost." I assume 25 that that's the city, or the Great Park?

ELITE COURT REPORTING (949) 829-9222 1 Q Right. It talks about all office 2 furnishings -- that's correct, the owner is the city, 3 what the city was paying for. 4 A Okay. Thank you. 5 MR. BUUS: So in other words, I think what 6 he's attempting to do is clarify that the words 7 "Architect" and "Owner" mean the same thing as they did 8 in Exhibit 1. 9 MR. TAYLOR: Correct. 10 MR. BUUS: Okay. 11 (Pause in the proceedings.) 12 THE WITNESS: Yes, I read it. 13 BY MR. TAYLOR: 14 Q Okay. And do you recall the time period when 15 the City of Irvine started paying for the lease space at 16 the Design Studio's offices? 17 A No, I don't. 18 Q Do you recall -- and I have it here. We 19 can -- I can use it later to refresh your recollection, 20 but do you recall that under Change Order 35, which was 21 done in the middle of 2009, that the City of Irvine 22 started paying for the lease cost of the Great Park's 23 Design Studio's offices? 24 A I don't remember. 25 Q I'll refresh your recollection on that in just

ELITE COURT REPORTING (949) 829-9222 1 a -- just a minute. 2 A Sure. 3 Q Before I get there, I wanted to label one 4 other document, as well, which is Exhibit 6. This is 5 another e-mail. It says, "From: Dennis Walters" at the 6 top. It's dated August 25th, 2008. 7 And the part I want to direct your attention 8 to is highlighted in the middle of the -- the paragraph, 9 literally in the middle of the page. And this is a 10 different e-mail, though. It's an e-mail from Dennis 11 Walters to Gaf of Gafcon dated -- and others -- dated 12 August 22nd, 2008. 13 It refers to "I also added a bullet point in 14 the scope area to indicate we will endeavor to use 15 personnel out of the Irvine office to help reduce travel 16 costs." 17 You'll note in the second page of Exhibit 2 of 18 the agreement I sent -- I gave you previously for your 19 deposition, it also talks about using the Irvine Design 20 Studio offices. I'm going to provide that to you. 21 MR. BUUS: This is Exhibit 6? 22 MR. TAYLOR: Exhibit 6. 23 (Deposition Exhibit 6 was later marked 24 for identification and is attached hereto.) 25 THE WITNESS: Question. Who is Dennis

ELITE COURT REPORTING (949) 829-9222 1 Walters? 2 MR. TAYLOR: As I understand, it is an 3 employee of Gafcon. 4 (Pause in the proceedings.) 5 THE WITNESS: Yes. 6 BY MR. TAYLOR: 7 Q So I mentioned Change Order 35. That contract 8 date is dated June 25th, 2009. It's quite voluminous. 9 What I'm trying to do is find in here, which I 10 think I've done, the summary here that shows the actual 11 payment of the rent for the Design Studio offices. And 12 that's here in Exhibit H. 13 So let me do this in a way that I think will 14 make it easier for you. 15 MR. TAYLOR: Let me take -- we can just go off 16 the record for one second. 17 (Recess was taken from 10:48 a.m. to 18 11:00 a.m.) 19 MR. TAYLOR: So I think we're back on the 20 record. 21 BY MR. TAYLOR: 22 Q The court reporter reminded me at the break 23 that some of the exhibits, I think you've written some 24 notes on. 25 A Okay.

ELITE COURT REPORTING (949) 829-9222 1 Q Those will be part of the official record, so 2 if we -- maybe what we need to do is get a clean copy 3 from your lawyer, and we'll need to straighten that out 4 at one of the breaks. 5 (Interruption in the proceedings by 6 office personnel.) 7 MR. BUUS: I don't know how many clean 8 copies -- 9 MR. TAYLOR: Can we ask you for a favor, too? 10 I don't -- maybe it is working. We're trying to figure 11 out how to get the coffee machine to work. 12 (Discussion was held off the record.) 13 MR. TAYLOR: Okay. I think we're back on the 14 record. I think where we left off with is Number -- 15 Exhibit Number 7, and this is -- 16 THE WITNESS: 6. 17 MR. TAYLOR: Well, 6, I had asked you a 18 question about. 19 MR. BUUS: He's asking you about a new one. 20 MR. TAYLOR: I'm marking a new one. So this 21 is Change Order Number 35. And what I've done with this 22 during the break -- and I want to thank you both for 23 bearing with me today. I'm fighting the aftermaths of a 24 head cold here. I'm not my usual self today. 25 But the -- what I did with the Change Order 35

ELITE COURT REPORTING (949) 829-9222 1 is I took the change order itself, which is the 2 agreement portion, that's all included within Exhibit 7, 3 and then I didn't include all the exhibits because most 4 of them aren't relevant for this line of questioning. I 5 just included Exhibit H, which is referenced in the 6 agreement portion. 7 If I included everything, it would be about a 8 half an inch to an inch thick. So that's what I've 9 done. That will, I think, help facilitate my questions. 10 (Deposition Exhibit 7 was later marked 11 for identification and is attached hereto.) 12 MR. BUUS: And are you just using this 13 document to refresh his -- 14 MR. TAYLOR: Refresh his recollection. 15 MR. BUUS: Okay. Thank you. 16 BY MR. TAYLOR: 17 Q So what I'm going to do is just go to the 18 second page, and it says -- in bold, in the middle of 19 it, it says, "Operating Expenses - in an amount not to 20 exceed $134,393." 21 Do you see that, Mr. Kang? 22 A Yes. 23 Q And if you go to -- and it says there -- it 24 says, "as further defined in Exhibit H." 25 So then if you go to Exhibit H, which I

ELITE COURT REPORTING (949) 829-9222 1 attached, after the signature page, Exhibit H is a table 2 that says, "Great Park Design Studio, Projected 3 Operating Expenses," and it shows the base rent amounts, 4 the operating expenses. 5 You can take a moment to look at that. 6 A (Witness complies.) 7 Question. 8 Q Certainly. 9 A So these are three months, May '09, June, and 10 July of 2009; correct? 11 Q Correct. 12 A Okay. 13 Q And that's what was in this change order. 14 A Okay. 15 Q I'm not getting into subsequent change orders. 16 I'm just using this change order to refresh your 17 recollection as to the point that during a portion of 18 the work under the schematic design contract, the City 19 of Irvine was paying for the rent and other expenses for 20 the Irvine Great Park Design Studio offices. 21 Do you see why -- why I've referenced that 22 now? 23 A No. Would you mind? 24 Q Well, sure. 25 A Yeah.

ELITE COURT REPORTING (949) 829-9222 1 Q So the first page of this exhibit, Exhibit 7, 2 says, "Change Order 35." And it talks about, you can 3 see here, the agreement between the City of Irvine and 4 Great Park Design Studio for schematic design services 5 dated as of August 27th, 2007. So that's the very first 6 page. 7 So this is the change order to the first 8 contract we covered here today at your deposition, which 9 is the schematic design contract. 10 Do you see where it refers to the schematic 11 design contract at the top? 12 A Yes. 13 Q And then the second page is what I referred 14 you to previously, which talks about operating expenses, 15 and it gives an amount, $134,393, and then it says "as 16 further defined in Exhibit H." 17 And then if you go to Exhibit H -- and I 18 believe you pointed out this just covers three months 19 during this period, but it shows how the City of Irvine 20 is now paying for base rent and operating expenses, for 21 example, among other expenses, per Exhibit H. 22 A Okay. 23 Q Do you see that? 24 A Yes. 25 Q And one of the things I previously brought to

ELITE COURT REPORTING (949) 829-9222 1 your attention in Exhibit 5 was the provision in the 2 design contract that says that materials, furnishings, 3 anything paid for per that provision by the owner, which 4 is the City of Irvine, shall be dedicated by the 5 architect to use exclusively in connection with 6 performing services under the schematic design contract. 7 So, in essence, what I'm trying to refresh 8 your memory about here is that the City of Irvine agreed 9 that where the City of Irvine paid for the rent and 10 furnishings of the Design Studio, that was to be used 11 for the taxpayers of the City of Irvine for the 12 Great Park. 13 It wasn't going to -- it wasn't allowed to be 14 used under the contracts for some other individual or 15 entity by Gafcon or by anyone else. 16 Do you understand that? 17 A Yes. 18 MR. BUUS: Okay. Do you understand his 19 question? Because I didn't hear a question. 20 Did you understand what he just said? 21 THE WITNESS: Trying to understand. 22 MR. BUUS: Okay. 23 BY MR. TAYLOR: 24 Q Well, have I refreshed your recollection that 25 during this time period, which is in 2009 -- and you

ELITE COURT REPORTING (949) 829-9222 1 could see Change Order 35, it says here, "This action 2 was approved by the City Council on June 9th, 2009." 3 Have I refreshed your recollection that you, 4 as a council, in the City of Irvine, approved Change 5 Order 35, and that included, under that change order, 6 that the City of Irvine would pay for the rent of the 7 Design Studio, among other terms and conditions? 8 MR. BUUS: Does this document jog your memory? 9 THE WITNESS: No. 10 BY MR. TAYLOR: 11 Q You don't remember this? 12 A No. I don't have the action item or the 13 summary of the Great Park Board minutes. I won't be 14 able to answer "yes" or "no." But based on what you 15 present to me, my answer is no. 16 Q You don't remember? 17 A No. 18 Q I believe I have in my binders here all of 19 those records. My one concern here is I can continue to 20 give you more and more documents, but I'm not sure if 21 that's going to refresh your recollection -- 22 MR. BUUS: Can we go off the record for a 23 moment? 24 MR. TAYLOR: Sure. 25 (Discussion was held off the record.)

ELITE COURT REPORTING (949) 829-9222 1 MR. TAYLOR: Okay. We're back on the record. 2 BY MR. TAYLOR: 3 Q We've had a discussion off the record among 4 the attorneys here. And, again, Mr. Kang, I'm not 5 trying to give you a memory quiz here. 6 What I'm really trying to get at here is the 7 bottom line, which is, had you been presented with this 8 information that I've now presented you in the exhibits 9 here at the deposition, including Exhibit 2 and 10 Exhibit 5, showing that Mr. Stu Mollrich had actually 11 requested that work on his Laguna Beach residencies be 12 done by Gafcon out of the Irvine Design Studio offices, 13 and given the other information that I've shared with 14 you in terms of the language in the schematic design 15 contract and the language in Change Order 35 that talk 16 about work being prohibited beyond what was done for the 17 City of Irvine, as well as the rent for part of this 18 period being paid for by the City of Irvine -- knowing 19 that, what would you have done had you learned, back in 20 2008, that Stu Mollrich was requesting to use the Irvine 21 Design Studio offices for two private remodel jobs for 22 homes in Laguna Beach? 23 A Let me try to answer, kind of personal way, 24 what I would have done. Had I known that there was some 25 transaction, I certainly would have called city manager

ELITE COURT REPORTING (949) 829-9222 1 for advice. 2 Q And I take it you would have done that before 3 voting on any additional payments or compensation to 4 Design Studio. 5 Correct? 6 A I may or may not. I frankly don't know. 7 Q When you say you don't know, why do you -- why 8 do you say you don't know? 9 A The situation never occurred, and I just don't 10 know how I would have reacted to that. That's why I 11 would have contacted city manager first and discussed on 12 that matter. 13 Q And did you typically follow the advice given 14 by the city manager? 15 A Usually. 16 Q And so if you called the city manager and 17 said, "Hey, I'm concerned that there's a potential 18 conflict of interest here with this work being done by 19 Gafcon at Stu Mollrich's homes, I'm concerned about use 20 of City of Irvine resources for these remodel jobs in 21 Laguna Beach," had you said that and the city manager 22 said, "We can't approve any more contracts until we sort 23 this out," would you believe you would have followed the 24 city manager's advice? 25 MR. BUUS: I'm going to object that this is

ELITE COURT REPORTING (949) 829-9222 1 getting too far into speculation. 2 But if you believe you can answer that 3 question, feel free to do so. 4 THE WITNESS: I don't know the answer. 5 BY MR. TAYLOR: 6 Q And as you sit here today learning all this 7 information for the first time about the work that was 8 done between Gafcon and Stu Mollrich, that concerns you; 9 correct? 10 MR. BUUS: I'm going to object that that's not 11 relevant as to whether or not he's personally present -- 12 presently concerned over what he's seen today. 13 If he wishes to -- to let you know whether or 14 not he's personally concerned, I'll let him testify. 15 But I -- I don't see how that's relevant here. 16 BY MR. TAYLOR: 17 Q Are you concerned as you sit here today? 18 A Probably so. 19 Q And had you known the same information back in 20 2008, would you have been concerned back then? 21 MR. BUUS: I'm going to object that it does 22 call for speculation. That is an incomplete 23 hypothetical. 24 If you wish to answer, you may. 25 THE WITNESS: I don't know.

ELITE COURT REPORTING (949) 829-9222 1 BY MR. TAYLOR: 2 Q Besides speaking with the city manager, in 3 light of the information that I've shared with you today 4 in Exhibits 1 through 7, are there any other steps that 5 you believe you would have taken in 2008 and 2009? 6 A Well, that would be the best step. Usually, 7 city manager will get information for council members or 8 the Great Park Corporation board members. 9 Q In terms of settlement agreements in general, 10 I take it, as a council member and mayor between 2004 11 and 2012, there were times on the city council agenda 12 where you had a settlement proposal brought before you; 13 is that correct? 14 A Yes. 15 Q And was there a standard practice that the 16 city followed between 2004 and 2012 as to the approval 17 process, not just for the settlement amount, but for the 18 settlement agreement? 19 And specifically what I'm asking is, as part 20 of a process, was the settlement agreement itself 21 typically voted on by the city council? 22 A I believe the final settlement agreement was 23 voted by the Great Park Corporation Board and eventually 24 by the city council. 25 Q But I'm not focused on a specific settlement

ELITE COURT REPORTING (949) 829-9222 1 agreement yet involving the Great Park. I'm just 2 talking about the standard practice for the city during 3 this time period, 2004 through 2012, when you'd have 4 settlements -- and this could be any type of settlement. 5 This could be a police claim, this could be an 6 employment claim. It could be a trip-and-fall claim. 7 Any type of claim. 8 When you had somebody, either through a 9 lawsuit or through a claims process, make a claim to the 10 city, did the council typically vote on not only the 11 settlement amount for that particular claim or lawsuit, 12 but actually vote on the settlement agreement after 13 seeing that on a public agenda? 14 MR. BUUS: Well, and just to clarify -- and I 15 apologize, it was a well-phrased question. I'm 16 wondering if you're talking about the actual document 17 embodying the settlement agreement or just a recitation 18 verbally of what the settlement agreement was. 19 MR. TAYLOR: Correct, I'm talking about the 20 actual settlement agreement. 21 MR. BUUS: The writing? 22 MR. TAYLOR: Correct. The settlement 23 document. 24 MR. BUUS: Okay. 25 THE WITNESS: If my memory serves correctly,

ELITE COURT REPORTING (949) 829-9222 1 any litigation or any settlement agreement will be 2 discussed at the closed session. If there's a vote made 3 and passed by the majority of the council, then city 4 attorney will make an announcement at the scheduled city 5 council meeting. 6 BY MR. TAYLOR: 7 Q And in terms of the actual settlement document 8 itself, would that settlement document come back before 9 the council on either the consent calendar or as a 10 business item for the city council to vote on in public? 11 And, again, I'm talking about the standard 12 practice that you had between 2004 and 2012. 13 A As I mentioned to you before, the item will be 14 discussed at the closed session. And we voted at the 15 closed session. And attorney -- city attorney will come 16 out to a public meeting and will announce the result. 17 Q And then what about the settlement document, 18 when does the city council, as a matter of practice, 19 actually see the settlement document? 20 A That, I am not sure. 21 Q And was there some type of standard practice 22 the city council had between 2004 and 2012, when you 23 were on the council? 24 A I don't believe there's any change in the 25 procedure. One of the city procedure dictates that's

ELITE COURT REPORTING (949) 829-9222 1 how city attorney/city manager will follow through based 2 on the direction of the city council's decision. 3 Q And if the city attorney or another staff 4 member drafted provisions in a settlement agreement that 5 members of the board disagreed with, what was the 6 standard practice to give the city council or the 7 Great Park Corporation Board the opportunity to review 8 an agreement to see if there were any objections to it? 9 A That, I'm not sure. 10 Q So let me mark as Exhibit 8 -- 11 MR. TAYLOR: I believe we're at 8. 12 Is that correct? 13 THE REPORTER: Yes. 14 BY MR. TAYLOR: 15 Q -- the agreement concerning the close-out of 16 the schematic design contract, dated August 13th, 2010. 17 I'll present that to you. 18 (Deposition Exhibit 8 was later marked 19 for identification and is attached hereto.) 20 MR. BUUS: And what would you like for him to 21 do with this? 22 MR. TAYLOR: Well, I'd like him to take a 23 moment to review it. 24 MR. BUUS: You don't have to read it 25 carefully, just -- just glance through it, at the

ELITE COURT REPORTING (949) 829-9222 1 moment. 2 Right -- 3 MR. TAYLOR: Yeah. 4 MR. BUUS: -- he's just glancing? 5 MR. TAYLOR: He can -- he can -- I'll direct 6 him to specific provisions. 7 MR. BUUS: Okay. All right. 8 MR. TAYLOR: While you're looking at that, why 9 don't we go off the record. 10 (Recess was taken from 11:22 a.m. to 11 11:24 a.m.) 12 THE WITNESS: I skimmed through. 13 BY MR. TAYLOR: 14 Q Okay. Let me direct your attention to the 15 signature page of the agreement, which is page 5. It's 16 signed in counterpart, so there's multiple page 5's. 17 But the first signature page that's page 5, it has your 18 name, "Sukhee Kang, Mayor," and a signature above your 19 name. 20 Do you see that? 21 A Yes. 22 Q Is that your signature? 23 A It is. 24 Q And did you review this agreement that we've 25 marked as Exhibit 8 -- this is the agreement concerning

ELITE COURT REPORTING (949) 829-9222 1 close-out of schematic design contract -- before signing 2 it? 3 A Probably, I did. 4 Q Do you recall specifically reading it? 5 A Yes. 6 Q Do you recall when this agreement was first 7 presented to you? 8 A That was sometime in the summer of 2010, I 9 believe. 10 Q Well, as I understand it -- and you can 11 correct me if I'm wrong -- and I have records here if 12 need be, to refresh your recollection -- but the item 13 went before the council on June 17th, 2010, but the 14 agreement was not part of that agenda package. 15 The agreement was actually prepared by your 16 city attorney's office, Rutan & Tucker, after the city 17 council authorized the payment amount. And there is 18 some question about the exact amounts in the -- the last 19 part of the agreement. But there was authorization for 20 the amount of 554,586. 21 Do you recall that council meeting? 22 A Yes, I do. 23 Q And when was the first time that you recall 24 seeing this agreement after that council meeting? 25 A After the council meeting?

ELITE COURT REPORTING (949) 829-9222 1 Well, I did go through -- I spent some time 2 with the city manager and city attorney during the 3 reconciliation process. So I was given a brief summary 4 of -- of what's happening with the -- the close-out of 5 the contract. 6 I have -- I remember directing city manager 7 and city attorney to take the time to make sure that 8 every invoice be verified before we sign off on it. 9 And I recalled from that process, the end 10 result, Great Park Board -- or the city, for that 11 matter -- was able to -- I wouldn't say save, but 12 allocate additional 5-point-some-odd million dollars to 13 the project that was coming up, such as North -- North 14 Lawn Project. 15 Q Do you recall being presented by either the 16 city attorney firm, Rutan & Tucker, or by the city 17 manager a draft of the schematic design close-out 18 agreement, which is marked as Exhibit 8, before you 19 actually signed the final version of it? 20 A Probably both city manager and city attorney. 21 Q And you say "probably both." 22 Do you recall a specific meeting you had with 23 either the city manager, city attorney, or both with a 24 draft of the agreement which is marked as Exhibit 8? 25 A I think it was at my office at the city --

ELITE COURT REPORTING (949) 829-9222 1 city hall, providing all the -- the documentation about 2 the close-out, yes. So I've seen that draft. 3 Q And you say "that draft." You're talking 4 about the draft of the agreement that's Exhibit 8? 5 A Yes. 6 Q And did you -- do you recall having any 7 comments to the first draft you saw of Exhibit 8? 8 A No, I don't remember. But based on my 9 direction to city manager and city attorney on going 10 over thoroughly on making that final payment decision, 11 so I trust that city manager and city attorney have done 12 their due diligence and presented before -- present the 13 draft before my desk. 14 Q Did you feel at the time the draft was 15 presented to you that the agreement that's marked as 16 Exhibit 8 needed to go back on the city council agenda 17 to get voted on by the entire city council and 18 Great Park board of directors? 19 A You know, I don't remember how that was 20 handled. I'm sure that -- you mentioned June -- June 21 meeting. It was voted on by the board of directors of 22 the Great Park, and also at the city council meeting, to 23 direct city attorney/city manager to come back with a 24 settlement agreement. 25 Q There have been concerns that have come up in

ELITE COURT REPORTING (949) 829-9222 1 the audit about the process for approval of this 2 agreement marked as Exhibit 8, going back to the 3 deposition that I took early on in the audit of Bill 4 Kogerman. 5 You know who Bill Kogerman is; correct? 6 A Yes. 7 Q And when I deposed Bill Kogerman, he read the 8 recitals to the agreement, which is the first page of 9 the agreement, and he said that he didn't agree with the 10 recitals stating that all work was done by the Great 11 Park Design Studio in a manner that is satisfactory to 12 the city and the corporation because there were ongoing 13 disputes at the time between the city and the Great Park 14 Corporation, and that he would have never voted on this 15 agreement had he -- had he seen it. 16 Were you aware of those concerns that 17 Mr. Kogerman had? 18 A No. 19 Q Mr. Kogerman, as I recall, was actually the 20 person that made the motion to approve the payment, 21 without seeing this agreement, back in June of 2010. 22 Do you recall Mr. Kogerman making that motion? 23 A I -- I don't remember. 24 Q Were you aware of any city council members or 25 Great Park board members that had concerns about any of

ELITE COURT REPORTING (949) 829-9222 1 the proposed language in the close-out agreement before 2 you executed it? 3 A No. 4 Q Do you -- are you aware of the close-out 5 agreement being shared with any other city council 6 member or board member before you signed it? 7 A No. 8 Q Was it standard practice for the city attorney 9 or city manager to share contracts with the city council 10 or Great Park Board to see if there were any concerns 11 with them before they were executed by the mayor in 12 2010? 13 A In general practice, the staff report will be 14 prepared prior to the -- either Great Park Corporation 15 board meeting or city council meeting, so they will have 16 an opportunity to raise concern or comments during their 17 time with the city -- city manager on one on one. 18 So usually -- I would say yes, there is a time 19 that city council member or the Great Park Corporation 20 Board will have an opportunity to review. 21 Q And it's your understanding that this 22 agreement, however, was not on the actual agenda for 23 approval, the agreement itself; is that correct? 24 A That, I don't remember. 25 Q You don't remember?

ELITE COURT REPORTING (949) 829-9222 1 A Huh-uh. 2 Q Were -- back in 2010, were agreements like 3 Exhibit 8 typically included with the agenda item where 4 approval was sought from the Great Park Corporation 5 Board and city council? 6 A I'm not sure. 7 Q Let me take you back now to the beginning of 8 the Great Park project and the design competition. 9 Did you have a particular role that you took 10 on as a council member during the design competition? 11 A Not particularly. 12 Q Do you recall the different entities that 13 proposed to do the design work for the Great Park? 14 A What do you mean by "entities"? 15 Q For example -- Gafcon, for example. 16 A No. 17 Q Do you recall when you first met the 18 representatives of Gafcon? 19 A I don't remember even meeting with Gaf- -- 20 Gafcon in a private setting. 21 Q Have you ever met with the principals of 22 Gafcon in a private setting? 23 A No. 24 Q Did you meet in a private setting with any of 25 the particular entities or individuals that were

ELITE COURT REPORTING (949) 829-9222 1 proposing to do the design work for the Great Park 2 during the design competition? 3 A Not that I know of. 4 Q How much involvement did you have during the 5 time period when you were on the city council and as 6 mayor in terms of looking at the budget for the 7 projected costs for the design of the Great Park? 8 MR. BUUS: I'm sorry, would you read that 9 question back. 10 (Record was read.) 11 THE WITNESS: We normally would be presented 12 the numbers by the CEO in a manner of staff-recommended 13 action or staff report. And that's the extent that I've 14 been involved. 15 Once again, I am one of nine board members at 16 the Great Park Corporation Board. So that's the role I 17 played. 18 BY MR. TAYLOR: 19 Q One question I had for you is -- I mean, you 20 brought to the Irvine City Council your background in 21 business. 22 A Uh-huh. 23 Q Did you, in your meetings with staff before 24 council meetings, talk to them about budgets and various 25 business points, taking that background that you had

ELITE COURT REPORTING (949) 829-9222 1 from managing Circuit City and other entities that you 2 had done work for in terms of your dealings with staff? 3 A Well, scale of what I used to handle in terms 4 of the financial amount cannot compare with the 5 magnitude of this Great Park project. 6 Q So I don't disagree with what you're saying, 7 but are you saying, in answering that question, that you 8 were deferring to staff because the scale of what you 9 did previously was not close to the scale of the 10 Great Park? 11 A Absolutely. I deferred to the specialist and 12 expert who can give us the right estimate and project 13 cost, whatnot. That was the -- basically, what I was 14 going by. 15 Q Did you feel that the staff of the city were 16 well-equipped to handle a project this large? 17 MR. BUUS: At what point in time? 18 MR. TAYLOR: Between 2004 and 2012. 19 MR. BUUS: If you had such a thought, you can 20 answer. 21 THE WITNESS: Well, would you repeat the 22 question again. 23 (Record was read.) 24 THE WITNESS: Yes. And if they needed extra 25 staff or expert in looking at specific matters, they

ELITE COURT REPORTING (949) 829-9222 1 would have brought forward to the city council or the 2 Great Park Corporation Board that they would need other 3 resources. 4 BY MR. TAYLOR: 5 Q Do you recall having any discussions with 6 staff about building the Great Park in phases? 7 A Yes. I remember that. 8 Q And what specifically do you recall on that 9 topic? 10 A Phase 1 and Phase 2 and go beyond. 11 Q And what was Phase 1? 12 A I'm trying to recollect. Phase 1 is before 13 the schematic design contract is awarded. So basic work 14 before get -- it gets to the schematic work. That's my 15 understanding. 16 Q So you're talking about the various phases and 17 how you build out the entire project; correct? 18 A That's correct. 19 Q One of the concepts I'll represent to you that 20 Dick Sim had, for example, when I interviewed him was to 21 essentially divide the land that was going to be 22 developed at the Great Park into quadrants and design 23 and build each particular quadrant, one right after the 24 other, which is similar to what The Irvine Company did 25 with parks like the Irvine Spectrum -- projects, I

ELITE COURT REPORTING (949) 829-9222 1 should say, like the Irvine Spectrum and other projects 2 they had done. 3 Were you familiar, back in 2004 through 2012, 4 that that's how The Irvine Company had done various 5 projects? 6 A No. 7 Q And had you ever discussed with staff this 8 concept of -- of dividing up the land that was going to 9 be developed in the Great Park into quadrants and 10 developing it one piece at a time instead of trying to 11 develop larger sections of the park at one time? 12 A I think the direction of the city council and 13 Great Park Board was to master-plan 1347 acres, and go 14 through the process. That was my understanding. 15 Q Did anyone explain to you, between 2004 and 16 2012, the risks associated with that, meaning that there 17 would be very high costs incurred for the planning 18 without significant development because you're talking 19 about doing a master plan and schematic plans, 20 large-scale plans, without actually building sections of 21 the park, and doing smaller sections of plans and then 22 building out those smaller phases one after the other? 23 A No. 24 Q Did anyone suggest to you at any point in time 25 between 2004 and 2012 that -- the concept of -- of

ELITE COURT REPORTING (949) 829-9222 1 actually designing and building smaller sections of the 2 park? 3 A I don't remember. Not that I know of. 4 Q Are you familiar with SharePoint360? 5 A I heard the name. 6 Q And did you know that SharePoint360 is owned 7 by Mr. Gaffen's wife? And this is the principal owner 8 of Gafcon. 9 A No. 10 Q Did you have any concerns that either you 11 observed or overheard from city staff about how 12 SharePoint360 was operating? 13 A One thing I remember, that staff had some 14 comment about the system is not interacting well with 15 the city's system. 16 Q Do you recall who you heard that from? 17 A No. 18 Q Do you recall ever having any discussions with 19 staff about the Design Studio's priority program 20 feasibility study? 21 A No. 22 Q Were there any portions of the Great Park that 23 you had concerns would -- based on your discussions with 24 staff and others, were not constructible from a design 25 standpoint?

ELITE COURT REPORTING (949) 829-9222 1 A Not that I remember. 2 Q Do you recall having any concerns that any 3 portions of the Great Park as the master design laid it 4 out were not feasible from a cost standpoint? 5 A Not that I know of. 6 Q Did you have any interactions with Sam 7 Allevato at any point in time concerning the Great Park? 8 A No. 9 Q Do you know who Sam Allevato is? 10 A Yes. 11 Q And how do you know Sam Allevato? 12 A He is currently a city council member, at -- 13 is it San Clemente? 14 Q San Juan Capistrano. 15 A San Juan Capistrano, sorry. And I believe he 16 worked as a tour guide giving tours to the visitors to 17 the Great Park. 18 Q Did you ever observe any of his tours? 19 A I have -- once or twice, had some people who 20 wanted to see the Great Park, and he was showing around. 21 And matter of fact, they were very impressed with his -- 22 his manner and the representation. 23 Q Do you know how much the City of Irvine was 24 charged for Mr. Allevato's services? 25 A I have no idea.

ELITE COURT REPORTING (949) 829-9222 1 Q We've covered previously the work done between 2 Gafcon and Stu Mollrich on Stu Mollrich's residencies in 3 Laguna Beach. 4 Are there any other entities you are aware of 5 having done work on the Great Park between 2006 to 2012 6 that also did work during that same time period for the 7 Great Park? 8 A No. 9 Q Did you have any of the same entities -- and 10 the reason I ask you that, let me take a step back. 11 We had received a response from former Mayor 12 and Councilmember Larry Agran discussing that he had 13 made payments to various consulting entities on the 14 Great Park during their work on the Great Park, 15 including Kenny the Printer and others. 16 Were there any entities that -- that you 17 personally employed that did work -- and this would 18 include individuals or entities -- that you personally 19 employed between 2004 and 2012 that did work on the 20 Great Park? 21 A No. 22 Q Did you ever do any work with Kenny the 23 Printer? 24 A Yes. 25 Q And you know Kenny the Printer did work on the

ELITE COURT REPORTING (949) 829-9222 1 Great Park? 2 A I did not know that. 3 Q Oh, you didn't know that? 4 A Huh-uh. 5 Q What type of work did you do with Kenny the 6 Printer? 7 A Just personal stuff, stationeries. Matter of 8 fact, I was there a couple days ago actually asking some 9 of the prices on my daughter's wedding invitation. 10 Q And did you at any point in time look at the 11 prices that they were charging the City of Irvine for 12 work in Irvine? 13 A I didn't compare with the other. Being one of 14 the Irvine printers, certainly, I wanted to use the 15 Irvine-base company. And no. 16 Q Did Kenny the Printer ever offer you any type 17 of discounts for printing? 18 A No. 19 Q Did you ever do any work with Forde & Mollrich 20 in terms of any personal work you did? 21 A No. 22 Q When was the first time you met Mr. Forde and 23 Mr. Mollrich? 24 A God, it was when I first got on the council. 25 Usually, as an introduction of the people who are

ELITE COURT REPORTING (949) 829-9222 1 working at the city, I remember having a meeting at my 2 office. 3 Q Meeting with Forde & Mollrich? 4 A Yes. 5 Q And this would have been in 2004? 6 A 2000 -- 7 Q '-4 to '-5? 8 A Well, I would say either the end of 2004 or 9 January or early 2015 -- I mean 2005. 10 Q Do you recall what was discussed at that 11 meeting? 12 A Oh, I don't remember. I would assume that 13 their basic role and responsibilities that they have 14 done for the city. 15 Q Did you ever use the services of either Stu 16 Mollrich or Mr. Forde during the time you were mayor and 17 on the city council for various speech writing or other 18 type of work? 19 A I did. And matter of fact, I saw the exhibit 20 that you posted. 21 It is generally commonly understood that as a 22 PR company, the city has used them before in helping 23 with the editing. And I think they have written a 24 couple drafts for me during my -- especially during my 25 mayor -- tenure as mayor.

ELITE COURT REPORTING (949) 829-9222 1 Q And I have those documents. I think it's an 2 appropriate time for me to -- to pull those out. Why 3 don't we go off the record and -- 4 A Okay. 5 Q -- and I'll grab those documents. 6 (Recess was taken from 11:49 a.m. to 7 11:54 a.m.) 8 MR. TAYLOR: This one, I do not -- I have two 9 copies of. I don't have -- so you'll have to share. 10 MR. BUUS: No problem. 11 MR. TAYLOR: It's Exhibit 9. I just want to 12 hand that to you. 13 (Deposition Exhibit 9 was later marked 14 for identification and is attached hereto.) 15 BY MR. TAYLOR: 16 Q Why don't you take a minute just to go through 17 and quickly read through those various documents on 18 Exhibit 9. 19 A (Witness complies.) 20 Yes, I read it. 21 Q So Exhibit 9 is a series of e-mails, mostly 22 between you and Stu Mollrich. Why don't we just go 23 through it in order. 24 A Yeah. 25 Q The first is an e-mail dated April 8th, 2011,

ELITE COURT REPORTING (949) 829-9222 1 at 4:42 p.m. It says, "Attached are some proposed edits 2 to the speech." And then there's attached changes or a 3 red-line version of a speech. 4 Is this a speech that you asked Mr. Mollrich 5 to assist you with? 6 A Yes and no. Looking at the -- the addressees 7 in this e-mail -- 8 Q Correct. 9 A -- Craig Reem and myself. Craig Reem is the 10 PIO, public information officer. 11 Q Correct. 12 A That -- this is the state of business address. 13 So generally -- or any type of speech that I make, 14 especially in an annual speech, we go through 15 approximately 25 to 30 edits. I am a perfectionist, and 16 whenever there's a -- an important address to be made, I 17 make sure all the contents is represented well. 18 Obviously, I'm representing the whole city. 19 Therefore, this particular e-mail that I see 20 is -- must have been initiated by staff to Forde & 21 Mollrich for their editing process. 22 Q Well, that leads me to my next question, which 23 is who is Alia Tirnanic? 24 Do you see the e-mail from Alia Tirnanic to 25 Stu Mollrich on the bottom of the first page of

ELITE COURT REPORTING (949) 829-9222 1 Exhibit 9? 2 A I don't know who that is. 3 Q Did you have discussions during this same time 4 period with Stu Mollrich about this particular speech? 5 A I don't believe so. Just simply sent the 6 contents to make sure that the portion of the Great Park 7 and others are proper -- properly worded. 8 Q Is there a particular reason why Stu Mollrich 9 was consulted as opposed to using your own staff? 10 A I did. 11 Q You used your own staff, too? 12 A Yes, yes, of course. As I said before, this 13 type of report -- or the address, I go through many 14 edits, the process. 15 To be honest, I'm a first-generation 16 immigrant, and when it comes to writing speech, I want 17 to make sure that there's no grammatical error; 18 therefore, you know, I turn to staff for correction -- 19 correction or advice on the final points. 20 Q Well, it seems to me there's three different 21 people you could have edit a speech. So you could have 22 Craig Reem, who is the city's chief information officer. 23 You could have your own staff. And as I 24 understand it, each of the council members have their 25 own staff, and that was part of the city budget to allow

ELITE COURT REPORTING (949) 829-9222 1 for that. 2 And then the third option is to have somebody 3 like Stu Mollrich. But that's really the one I have 4 questions about, why that was done. 5 So I understand that you'd probably go to 6 Craig Reem or your own staff to get comments or read it 7 for grammatical issues. But why would you -- besides 8 going to those first two sources, Craig Reem and your 9 own staff, why would you also go to Stu Mollrich? 10 A First step would be it generally goes to city 11 manager. The city manager will assign my speech to 12 different people, which really ask who drafts my speech. 13 And mind you, as mayor, I make hundreds, if 14 not thousand, during my tenure as mayor. So staff, 15 sometime they get busy. They are bombarded with a lot 16 of speech writings and comments, a statement, op-ed 17 pieces that I sign off on it. So sometime staffs are 18 busy. 19 And I rarely had my council executive 20 assistant because my philosophy is to maximize the 21 resources. We have great staff on the third floor. So 22 why not utilize the resources that we have rather than 23 paying somebody to do it. That was my general concept 24 of being a business person. 25 Q How often did you use Stu Mollrich to assist

ELITE COURT REPORTING (949) 829-9222 1 you with speeches? 2 A Not as often. Probably once in a while. 3 Q And was there something unique about this 4 particular speech -- and this speech I'm referring to is 5 the first page of Exhibit 9 -- that caused you to 6 consult with Stu Mollrich? 7 A I'm speaking before the business community, 8 mainly, and chamber of commerce. So to me, it's very 9 critical, letting business people know the status of our 10 city. Especially, from 2008 to 2012, during my tenure 11 as mayor, economy really fell. So I always look for 12 positive outcome, each year, when I speak to the public. 13 Q Was there something in particular in Stu 14 Mollrich's scope of work for the Design Studio that you 15 felt was applicable to this particular speech? 16 A Once again, as I mentioned to you before, it 17 is commonly understood by the city staff and -- or the 18 Great Park -- Great Park Corporation Board that as a PR 19 company, they had prepared speeches for special events, 20 and they are familiar with the Great Park and the 21 development. Therefore, we just simply would use their 22 resource to make sure that all the words are in place 23 correctly. 24 Q Now, there's some dividers in the -- 25 A Yeah.

ELITE COURT REPORTING (949) 829-9222 1 Q -- different documents. There's another 2 e-mail after the first divider. It has a Bates number 3 on the bottom, GP024322. This is an e-mail from Stu 4 Mollrich to you dated Wednesday, September 5th, 2012, 5 7:01 p.m. It says, "Here is the draft with the changes 6 we discussed. Let me know what you think." 7 Do you recall having a conversation on or 8 about this date with Stu Mollrich discussing some 9 changes to the following speech that starts at Bates 10 Number 24323? 11 A I don't remember what kind of communication, 12 but through an e-mail, probably I did. 13 Q Did you typically e-mail with Stu Mollrich? 14 A I mean, in this day and age, that's the best 15 means of communication; isn't it? 16 Q I don't know. I mean, people communicate 17 differently. Some people prefer to talk on the phone. 18 Some people prefer to meet in person. Some people text 19 message. Some people Facebook. A lot of different ways 20 to communicate. 21 I'm just asking, for you, which is the way 22 that you prefer? Was it e-mail? 23 A E-mail. 24 Q And this was a statement that you made on 25 September 11th, 2012, in an Irvine City Council meeting;

ELITE COURT REPORTING (949) 829-9222 1 correct? 2 A Yes. 3 Q And in this statement you're talking about -- 4 and I'm referring to Bates Number 24324. This is the 5 second page of this statement. 6 A Yes. 7 Q The paragraph starting from the third to the 8 bottom, it talks about "Councilman Steven Choi sent a 9 memo dated August 17th to our City Manager," and it goes 10 on to describe a memo by now Mayor Choi, then 11 Councilmember Choi. 12 Can you describe for me, based on your best 13 recollection, what the issue was in that memo? 14 A Yes. I think I do remember. During the 15 negotiation with the FivePoints on a second-phase 16 project, Mr. Lolloway served as another member of the 17 subcommittee negotiating it, and he had raised some 18 concern about I breaking the Brown Act law. 19 And that's what -- Councilmember Steven Choi 20 issued a memo regarding that. And, frankly, I don't 21 know why that Councilmember Choi was raising that issue. 22 Q Do you know if Stu Mollrich was available to 23 Councilmember Choi to assist him in various speeches at 24 council meetings? 25 A If he had asked, I'm sure he was available.

ELITE COURT REPORTING (949) 829-9222 1 Q Did you notice any particular favoritism that 2 Stu Mollrich had for any council members in 2012? 3 A No. 4 Q The end of this speech, it says -- this is on 5 Bates Number 24325. It says, "Shame on you, 6 Councilmemeber Choi. This is a cheap election year 7 stunt. This is not the way to move Irvine forward." 8 Is that something you wrote or something that 9 Stu Mollrich wrote? 10 A Yes, I wrote it. 11 Q Why did you choose those words? 12 A I'm usually a very mild person, and when my 13 credibility was challenged, I got a little irate. 14 Q How did you feel your credibility was 15 challenged? 16 MR. BUUS: I'm going to object to this. I 17 don't believe this is within the scope of your work here 18 in this Great Park Audit. 19 I'm going to -- I'm going to advise my client 20 not to answer that. This is clearly just a sideshow. 21 MR. TAYLOR: Well, I don't see this being a 22 sideshow. I'm asking your client -- 23 MR. BUUS: If you're asking questions about 24 Stu Mollrich's participation in speech writing, I've 25 allowed that. But once you started asking questions

ELITE COURT REPORTING (949) 829-9222 1 about some skirmish between now Mayor Choi and former 2 Mayor Kang, I don't see how that's relevant. 3 MR. TAYLOR: Well, the issue there is there's 4 assistance for the speech done by Stu Mollrich, who's 5 being paid, at this time, I believe a hundred-thousand a 6 month by the taxpayers of Irvine, now to get in the 7 middle of what appears to be what you've described as a 8 skirmish on the taxpayer's dime. 9 And that's, I think, exactly what we're 10 supposed to be looking at in the audit. 11 MR. BUUS: Stu Mollrich was hired by the city 12 as a PR consultant; correct? 13 MR. TAYLOR: No. 14 MR. BUUS: And he was hired -- and he was 15 hired specifically concerning the Great Park project. 16 He was giving advice concerning those particular 17 elements. I don't see why that's outside the scope of 18 his contract. 19 BY MR. TAYLOR: 20 Q Well, what I'm trying to understand, Mr. Kang, 21 is what about this skirmish, if you will, in this 22 statement has to do with the Great Park itself. 23 I understand the overall topic and the 24 Great Park is mentioned in this speech, but in terms of 25 Mr. Mollrich interjecting himself into what your

ELITE COURT REPORTING (949) 829-9222 1 attorney has called a political skirmish, what about 2 this political skirmish has anything to do with 3 Mr. Mollrich's service? 4 MR. BUUS: I didn't say that, and now you're 5 misrepresenting what I said. 6 What I'm saying is to the extent that that 7 speech related to the Great Park, it made sense 8 for Mr. -- or Mayor Kang to send that speech. 9 Why don't you ask Mayor Kang if he intended 10 Stu Mollrich to advise him as to his disagreement with 11 now Mayor Choi, and I think maybe you'll get an answer. 12 BY MR. TAYLOR: 13 Q What was the scope of why you asked 14 Mr. Mollrich to assist you in preparing this speech? 15 A I don't remember clearly, but I'm -- probably 16 staff was too busy and I needed something quick for the 17 meeting. 18 Every speech that I make is a public record, 19 so I speak before the council, try to clarify the issue, 20 and that's what happened. 21 Q Were there oftentimes where staff seemed to be 22 too busy where you'd go to Stu Mollrich? 23 A Well, they go through a lot of speech -- 24 speech writings and a lot of events taking place. Well, 25 sometime we just have to use other resources that's

ELITE COURT REPORTING (949) 829-9222 1 available at the time. 2 Q To answer your attorney's question, I think 3 the e-mail speaks for itself on Bates Number 24327. 4 It's an e-mail from, at the top, Stu Mollrich to Sukhee 5 Kang, and then below that is an e-mail where it appears, 6 Mr. Kang, you wrote to Mr. Mollrich, "Stu, Here's the 7 memo Steven Choi circulated regarding FivePoint 8 Communities. Let me know if you have any question. 9 Thanks." 10 So it appears from this you were asking 11 Mr. Mollrich to review the memo from Steven Choi; 12 correct? 13 A That's what the e-mail says. 14 Q There's an e-mail prior to that, on 15 August 31st, 2012, at 4:14 p.m., from Stu Mollrich to 16 Sukhee Kang. It says, "Sukhee, Please send me the memos 17 and correspondence that relate to the FivePoint Brown 18 Act issue so I can draft the statement you requested. 19 Thanks, Stu Mollrich." That's Bates Number GP024328. 20 A Yeah, I believe that's the response from the 21 September 1 e-mail from Stu -- or from me. 22 Q Did you view the -- what's described here as 23 the FivePoint Brown Act issue -- did you view that as 24 being within the scope of Mr. Mollrich's work for the 25 Great Park?

ELITE COURT REPORTING (949) 829-9222 1 A I don't know. 2 Q There's a -- after that, Bates Number 3 GP024309, there's an e-mail from Sukhee Kang to -- 4 MR. BUUS: Wait a second. 5 BY MR. TAYLOR: 6 Q -- Stu Mollrich. 7 MR. BUUS: Okay. 8 BY MR. TAYLOR: 9 Q It says, "O.C. Register interview," "O.C. 10 Register Column 11-16-12," November 16th, 2012. 11 It says, "Stu, O.C. Register is changing their 12 format and launching a new design of the Irvine World 13 News on November 28th. They want to interview me as I'm 14 leaving the City and ask several questions about my 15 views on issues. I want to respond in a real way and 16 say something from inside, not a diplomatic way." 17 When you wrote that "I want to respond in a 18 real way and say something from inside, not a diplomatic 19 way," what do you mean by that? 20 A Probably the language that I'm familiar with. 21 That's probably what I was asking him to help me with. 22 Q What, if anything, did this particular 23 O.C. Register interview have to do with the Great Park? 24 A Well, there are a lot of contents talks about 25 the development of the Great Park during my tenure as

ELITE COURT REPORTING (949) 829-9222 1 mayor. 2 Q Was Mr. Mollrich's assistance to you limited 3 to the Great Park? 4 A Probably not. But matter of fact, Great Park 5 is a part of the city. So when I make a public comment 6 as mayor of the city, that includes not only the city 7 and the Great Park. 8 Q Are you saying that every comment you made as 9 the mayor included the Great Park? 10 A I didn't say that. 11 Q As I understand it, there are some speeches 12 you gave that involved the Great Park specifically, and 13 then there's other things you did, like the interview to 14 the O.C. Register. It appears, from what we've seen, 15 that you were using Stu Mollrich for both of those 16 matters. 17 But the question I have for you is, why did 18 you use Stu Mollrich on matters that didn't exclusively 19 involve the Great Park? 20 A I don't know how to answer that. But once 21 again, because of the common practice that the city has 22 done in the past, I didn't think other things other 23 than, of course, it's within the scope of their -- the 24 responsibility of helping the city and the Great Park in 25 drafting some of the languages.

ELITE COURT REPORTING (949) 829-9222 1 And that's what I was -- had in mind, and 2 that's basically what I -- what I did. 3 Q Was it your understanding that it was within 4 Forde & Mollrich's scope to assist you on matters that 5 did not involve the Great Park? 6 MR. BUUS: Well, I'm going to object that that 7 isn't -- that isn't what he said, that isn't what's 8 being discussed. 9 So far, you've introduced some evidence of 10 speeches that did involve the Great Park. And to the 11 extent that maybe there were other points raised in the 12 speech, you're saying, well, why are you using Stu 13 Mollrich for these other points? 14 MR. TAYLOR: I think it's much broader than 15 that, Counsel. 16 MR. BUUS: Well, I think -- I think what 17 you're doing is you're trying to characterize -- 18 compartmentalize, I should say, Stu Mollrich's 19 obligations under the contract. 20 And you're saying, okay, well, he should only 21 be working on those portions of the speech relating to 22 the Great Park and shouldn't be working on any other 23 portions of the speech or public communication. 24 Is that what you're saying, even though it's 25 an integrated whole?

ELITE COURT REPORTING (949) 829-9222 1 MR. TAYLOR: Well, Counsel, let's -- let's 2 flesh that out, what you're saying. 3 MR. BUUS: Okay. 4 MR. TAYLOR: So when your client gets asked by 5 the O.C. Register -- and I'll find the exact page for 6 you. This is Bates Number GP024309. It says, "O.C. 7 Register interview." This is an e-mail written from 8 Mr. Kang to Stu Mollrich, and it says, "Stu, O.C. 9 Register is changing their format and launching a new 10 design of the Irvine World News on November 28th. They 11 want to interview me as I'm leaving the City and ask 12 several questions about my views on issues. I want to 13 respond in a real way and say something from inside, not 14 a diplomatic way." 15 THE WITNESS: Uh-huh. 16 MR. TAYLOR: Counsel, am I missing something? 17 Is the word "Great Park" mentioned in there at all? 18 MR. BUUS: The word "Great Park" is mentioned 19 in the article. 20 MR. TAYLOR: Is it mentioned in this inquiry 21 at all to Mr. Mollrich? 22 MR. BUUS: Did it have to be mentioned? 23 MR. TAYLOR: Well, Counsel, it would seem to 24 me that Mr. Mollrich -- 25 MR. BUUS: I don't believe it does. I believe

ELITE COURT REPORTING (949) 829-9222 1 that since he was involved with city business, a very 2 significant part of city business being the Great Park, 3 that it makes sense that he would go -- that Mayor Kang 4 would go to Stu Mollrich and ask him to -- to help 5 create something related to city business, including the 6 Great Park. 7 And I don't believe Mayor Kang had to 8 specifically state in an e-mail to Stu Mollrich, "by the 9 way, just limit your comments to the Great Park." 10 MR. TAYLOR: So in your view, Counsel, Stu 11 Mollrich was there to do anything essentially your 12 client wanted. 13 MR. BUUS: No. Related to the Great Park. 14 MR. TAYLOR: Are you telling me, Counsel, that 15 the article you're referencing is exclusively about the 16 Great Park? 17 MR. BUUS: Are you telling me that it doesn't 18 mention the Great Park? 19 MR. TAYLOR: You've answered my question 20 without answering my question. 21 MR. BUUS: You've done the same. 22 MR. TAYLOR: Well, it's 12:20. When did you 23 want to break for lunch? 24 THE WITNESS: I don't mind just going on. 25 MR. BUUS: If he's willing to go on, I'm

ELITE COURT REPORTING (949) 829-9222 1 willing to. 2 THE WITNESS: Yeah. 3 MR. TAYLOR: Okay. 4 BY MR. TAYLOR: 5 Q Now, my understanding is, Mr. Kang, that you 6 personally didn't pay, either from your individual funds 7 or from any other source of funds, such as your staff 8 budget, for any of the work that you requested from Stu 9 Mollrich. 10 Correct? 11 A No. 12 Q So as far as you understood, all the work that 13 Mr. Mollrich was paid for was paid for through his 14 Great Park contract; correct? 15 A His -- yeah, his -- his contract with the 16 city. 17 Q Right. You didn't have a separate contract 18 with him? 19 A No. 20 Q And did you ever make any disclosure on any 21 type of FTPC forms about any work you did with Stu 22 Mollrich? 23 A No. 24 Q Did you ever use Forde & Mollrich or Stu 25 Mollrich on any political campaigns you did?

ELITE COURT REPORTING (949) 829-9222 1 A Not that I know of. 2 Q Are you aware of Forde & Mollrich, including 3 Arnold Forde and Stu Mollrich, preparing any type of 4 slate mailers involved in any campaign that you were 5 involved with during the audit period? 6 A I'm not aware of that. 7 Q Are you aware of any gifts given by those who 8 did work on the Great Park, including consultants, 9 vendors, and contractors, to any Irvine City Council 10 members between 2004 and 2012? 11 A No. 12 Q Besides the Great Park, what other major 13 public projects can you recall being brought before you 14 by staff during your time on the council between 2004 15 and 2012? 16 A Not in that magnitude of the project. But 17 when I was mayor, there was a completion of the 18 underpath, Jeffrey underpath, and plan for Sand Canyon 19 underpath, which was over $50 million per project. 20 Q Do you recall how many change orders there 21 were for that project? 22 A I have no idea. What I remember, though, the 23 project got delayed over a year. 24 Q Do you recall why it was delayed? 25 A No.

ELITE COURT REPORTING (949) 829-9222 1 Q In 2006, how much did you expect the 2 Great Park to cost to be -- to be fully completed? 3 A I don't remember. 4 Q Do you ever recall having discussions between 5 2004 and 2012 with staff about the increase in projected 6 cost to build the Great Park? 7 A I don't believe so. 8 Q Do you recall having discussions with city 9 staff or any other individual, such as a consultant or 10 contractor, about the revenue projections during this 11 time period in terms of the revenue that would be 12 provided to build the Great Park? 13 A Well, revenue projection is generally 14 presented by the staff. At the Great Park Corporation 15 board meeting, CEO Ellzey will present with a staff 16 report regarding the potential revenue. 17 Q We've had testimony earlier in the audit about 18 the vision that Larry Agran had for the Great Park. 19 Did Larry Agran ever share with you his vision 20 for the Great Park? 21 A Well, I know that he spent a lot of time -- 22 well, let me just mention about his vision. I guess 23 that was his vision, to make sure that we build the 24 Great Park. 25 Q Do you recall -- and he had different hats he

ELITE COURT REPORTING (949) 829-9222 1 wore at different times, as chairman of the Great Park, 2 mayor, Councilmember Agran. 3 Do you recall, during this time period when 4 you were on the council between 2004 and 2012, 5 Councilmember Agran being very actively involved in the 6 Great Park? 7 A Yes. As a chair. 8 Q And did you ever have any discussions 9 one-on-one with Councilmember Agran about what he saw as 10 the future of the Great Park? 11 A I would say yes. 12 Q How often did you speak with Chairman 13 Agran/Councilmember Agran during this time? 14 A Well, we worked on the city council together. 15 For eight years, I've been on the council. So I don't 16 know how many times, but we did have discussions. 17 Q Did you develop a friendship with 18 Chairman Agran? 19 A Yes. 20 Q And if you were to give me your best estimate, 21 between 2004 and 2012, how often you spoke one-on-one 22 with Chairman Agran, how often was that? 23 A It's going to be hard to guess. But we did 24 talk, for the matter of the city council or for the 25 Great Park.

ELITE COURT REPORTING (949) 829-9222 1 Q Did you talk once a week, once a month? What 2 is your best estimate? 3 A There is no regular interval. As-needed 4 basis. 5 Q Were there any -- any elements, in terms of 6 Chairman Agran's vision, that he described to you for 7 the Great Park that you disagreed with? 8 A No. 9 Q What were the key aspects, as Chairman Agran 10 described to you, of his vision for the Great Park? 11 A Just building the Great Park, in a global 12 sense. 13 Q If you were to break down, in terms of 14 percentage, starting with the percentage of time that 15 you spent on the city council with city business, of 16 that percentage, between 2004 and 2012, how much of that 17 was spent on Great Park matters? 18 A That's hard to proportionalize. Perhaps 19 80/20, 80 percent city and 20 percent on the Great Park. 20 Q So 80 percent other city business, 20 percent 21 Great Park? 22 A (No audible response.) 23 Q Now, of the 20 percent estimate that you just 24 gave, other than attending city council meetings and 25 Great Park board meetings, meeting with staff, which you

ELITE COURT REPORTING (949) 829-9222 1 previously testified about -- 2 A Yes. 3 Q -- what other type of work were you doing that 4 you're quantifying in this 20 percent for the 5 Great Park? 6 A I think that's about all I did. 7 Q Were there any particular contractors that did 8 work on the Great Park that you had concerns about over 9 their performance on the Great Park? 10 A Not personally, no. 11 Q When you say "not personally," what do you 12 mean by that? 13 A Well, I heard some concerns by some of the 14 staff. 15 Q About what? 16 A In general. I don't remember in particular, 17 but I remember hearing some -- some concerns. 18 Q Do you recall what the general topic of those 19 concerns were? 20 A I'm not sure. 21 Q Going back to the close-out agreement that we 22 previously looked at earlier, was there a particular 23 staff member or attorney that requested that you sign 24 that close-out agreement? 25 A I believe that's a general practice, after

ELITE COURT REPORTING (949) 829-9222 1 item is approved by the city council, and generally that 2 final contract will come on my desk for my signature. I 3 believe city attorney signs it and city clerk signs it 4 before it comes to me. 5 Q Do you recall that the city attorney and city 6 clerk had already signed the close-out agreement before 7 it came to you? 8 A You know, I don't remember, but I'm sure that 9 that's the process. 10 Q And it would just be in a stack of documents 11 on your desk -- 12 A Yes. 13 Q -- at city hall? 14 A Yes. 15 Q And would you go through the stack of 16 documents and execute them? 17 A Yes. 18 Mind you, there are a lot of documents that I 19 signed every -- every day. Every minutes, every agenda 20 items, any memos that -- so there are quite a -- quite a 21 few signature that I have to make on a weekly basis. 22 Q Was -- do you remember the actual day that you 23 signed the close-out agreement? 24 A No. 25 Q Do you recall reading the close-out agreement

ELITE COURT REPORTING (949) 829-9222 1 that day before you signed it? 2 A Pardon me? 3 Q Do you recall reading the close-out agreement 4 that day that you signed it? 5 A Yes. 6 Q Did you have any concerns about the terms in 7 the close-out agreement after you read it, before you 8 signed it? 9 A If I did have a concern, that I would have 10 raised with the -- the city manager then. 11 Q Do you recall raising any concerns with the 12 city manager then? 13 A No. 14 Q In 2008, were you aware that Gafcon bid on a 15 project in the City of San Juan Capistrano through the 16 former redevelopment agency of the City of San Juan 17 Capistrano? 18 A I was not aware. 19 Q Were you aware that in 2008, when Gafcon bid 20 on this job, the location given for the work in San Juan 21 Capistrano was the Great Park Design Studio offices in 22 Irvine? 23 Were you aware of that? 24 A No. 25 Q If you were made aware of that in 2008, is

ELITE COURT REPORTING (949) 829-9222 1 that something you would have asked the city manager to 2 look into? 3 A Probably. 4 Q Is that something that would have caused you 5 concern back then? 6 A I don't know, because I -- I don't have the 7 specifics. So I won't be able to answer that question. 8 Q Were you aware of Gafcon or any other 9 contractor in Irvine doing work outside of the city of 10 Irvine through the Great Park Design Studio offices 11 between 2006 and 2010? 12 A No. 13 Q Do you know who George Urch is? 14 A Yes, I know the name. 15 Q Have you met him before? 16 A Not personally, but run into him at different 17 meetings. 18 Q Did you ever use him for any work that you had 19 in the City of Irvine as mayor or council member? 20 A No. But I do have a question. Because I 21 remember when HSNO first presented the -- the update, 22 there were mention of my name, that George Urch spent 23 six hours on my behalf. 24 And I immediately sent -- sent an e-mail to 25 Sean Joyce inquiring what that was for, because I did

ELITE COURT REPORTING (949) 829-9222 1 not remember any interaction or working on my behalf for 2 six hours. 3 I'll go maybe more than that. The only thing 4 that I could remember -- once again, going back to the 5 preparing speeches for council members, one time right 6 after I became the mayor, there was a conference of 7 mayor events, inviting mayors in cities who have big 8 projects. So I was invited to be one of the speakers 9 and presenter. 10 I have asked staff to prepare a PowerPoint 11 presentation. Of course, I never asked, you know, 12 who -- I assume that it was prepared by the staff. 13 I heard later on from city manager that they 14 have charged $5,000 for the presentation material. I 15 was totally irate and directed staff to look into it and 16 it shouldn't be paid. 17 And that's the question I made an inquiry to 18 Sean Joyce, after hearing that -- the audit result back 19 in last year. 20 Q What did Mr. Joyce tell you? 21 A Well, his reply was, well, it should have 22 taken care. He said he'll check into it. 23 Q Did he ever get back to you? 24 A No. 25 Q Besides that example, are there other examples

ELITE COURT REPORTING (949) 829-9222 1 that either you found out about later or were brought to 2 your attention where George Urch or another consultant 3 that did work on the Great Park charged for any work 4 they did for you? 5 A No. 6 Q Other than that project, do you recall any 7 other specific projects where George Urch did work on a 8 matter you were involved with? 9 A No. 10 Q One of the phrases that have come up, that's 11 really an acronym -- some of the witnesses talked about, 12 in their depositions, "FOL," "friends of Larry." 13 Have you heard that before? 14 A No. 15 Q "No"? 16 A Huh-uh. 17 Q Do you recall ever hearing from any citizens 18 or anyone else, while you were on the city council, that 19 friends of Larry Agran were given any type of 20 preferential treatment in hiring for positions on the 21 Great Park? 22 A Not that I'm aware. 23 Q When you were mayor, how many staff members 24 did you have? 25 A When you mention "staff member," what

ELITE COURT REPORTING (949) 829-9222 1 specifically you're referring to? 2 Q My understanding is the way that the city 3 works -- and we're outside counsel for the city. We're 4 not, obviously, their city attorney or in a position 5 where we're there every day. 6 But my understanding is that each of the 7 council members has a budget that they get to hire staff 8 to help them with their day-to-day functions. 9 A Yes. 10 Q Is that correct? 11 A Yes, that's correct. Each council member has 12 a budget of $55,000. You can hire one person and -- 13 full-time or you can divide up, get five, six people, 14 with the part-time status. As long as you do not go 15 over your annual budget on council executive assistant, 16 it's okay. 17 My -- actually, I was very strict on that. Of 18 course, I'm very fiscally prudent. We had great staff 19 on the third floor, so I'd rather utilize the staff that 20 we have rather than hiring another person on my behalf. 21 So I believe I have returned more than 50 percent of my 22 budget almost every year. 23 Q So how did you -- how were you able to 24 accomplish that? Did you not hire full-time people? 25 Did you hire --

ELITE COURT REPORTING (949) 829-9222 1 A No. 2 Q -- a part-time -- 3 A Well, when city council members goes to 4 events, they bring their assistant. You have to pay 5 them. I don't want to do that. I go by myself. I 6 certainly can take care of myself. So why you bring 7 your assistant when you don't need it. 8 So with that process, I was able to reduce the 9 amount of the budget in a very significant way. 10 Q Between 2004 and 2012, did you have one 11 assistant for each of those years, or multiple 12 assistants? 13 A I think I began with one, in 2004. And she 14 lasted three years. She was very good. And she moved 15 on, so we hired another person. And I think, over the 16 course, might have had maybe two, at the highest of my 17 staff level. 18 Q Did you use your assistants to do work on the 19 Great Park? 20 A Yes. Because -- because you are budgeted 21 actually $55,000. Out of that, I believe $35,000 you 22 can spend on the city matters, and the $20,000 be used 23 for Great Park activities. 24 Q So there was a separate budget allocation just 25 for the Great Park activities?

ELITE COURT REPORTING (949) 829-9222 1 A I don't know how they arranged that. But when 2 I first entered the city council, the amount was lower. 3 I forgot what that amount was. But after couple years, 4 the amount went up to 55,000 per city council member. 5 Q And what type of work did you typically use 6 your staff for concerning the Great Park? 7 A Preparing comments, researching on some of the 8 agenda items. Usually, those -- those are the things 9 that you use your assistants. 10 Q Are there particular agenda items, as you sit 11 here today, that you can recall having significant 12 concerns about that relate to the Great Park? 13 A I don't remember. 14 Q Did you interact with Bovis Lend Lease at all 15 concerning the Great Park? 16 A I don't believe so. 17 Q Did you recall, other than seeing them at city 18 council meetings, ever speaking with or meeting with any 19 representatives of Bovis Lend Lease? 20 A No. 21 Q Do you recall ever having any meetings with 22 Forde & Mollrich concerning the Great Park outside of 23 any regular city council meetings? 24 A Just at the city level. They -- they involved 25 in many levels of meetings, so I did see them on

ELITE COURT REPORTING (949) 829-9222 1 meetings that they -- they participated. 2 Q Do you recall ever meeting with them 3 privately? 4 A Probably, I did, a couple times, just in a 5 private setting. 6 Q Do you recall what was discussed at those 7 private meetings? 8 A Oh, I don't remember. 9 Q Did you use your staff that was assigned to 10 you to work on speeches for you? 11 A Some. But mostly, my speeches have been 12 prepared by staff. 13 Q You're talking about city staff? 14 A City staff. 15 Q Rather than your own staff that was hired 16 through the budget allocation -- 17 A Right. 18 Q -- you got? 19 A Right. Unless I had someone that's super 20 great, you know, with writing. Usually, I rely on 21 staff's preparation for that. 22 Q Other than our discussion earlier today about 23 the work done between Forde & Mollrich and Gafcon, are 24 you aware of any other Great Park contractors and 25 subconsultants doing any work with each other on other

ELITE COURT REPORTING (949) 829-9222 1 projects during the time when you were on the city 2 council? 3 A No. 4 Q And at the time that you approved -- strike 5 that. 6 At the time that you signed the close-out 7 agreement, were you aware of any consultant or 8 contractor doing work with any other consultant or 9 contractor on the -- the Great Park outside of the 10 Great Park project? 11 A No. 12 Q Had you been aware of the work done by Gafcon 13 on the Stu Mollrich residencies in Laguna Beach, is that 14 something that you would have spoken to the city manager 15 about before signing the close-out agreement? 16 A Probably. 17 Q Is that something, also, that you would have 18 spoken to the city attorney about separate from the city 19 manager before signing the close-out agreement? 20 A I think the same thing. If you direct or ask 21 city manager, city manager will confer with the city 22 attorney or, you know, respective party, to discuss on 23 that matter. 24 Q Were you aware, during the time that you were 25 on the city council, of any work being done through the

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ELITE COURT REPORTING (949) 829-9222 1 Great Park Design Studio offices on projects other than 2 the City of Irvine? 3 A No. 4 Q And had you become aware that there was work 5 being done through the Irvine Design Studio offices on 6 projects other than the Great Park, is that something 7 you would have inquired about with the city manager? 8 A I think I answered that question previously. 9 Q The answer's "yes"? 10 A Yes. 11 MR. BUUS: The answer was "probably." 12 BY MR. TAYLOR: 13 Q And when you inquire on these areas of concern 14 with the city manager, what specifically -- when you see 15 yourself doing that, what specific questions would you 16 ask? 17 A Well, that depends on the circumstance. I 18 can't really, you know, give you a real-time answer 19 because every issue could be different and requires a 20 different, you know, way of asking, and try to get the 21 answer. 22 Q Do you personally have any written contracts 23 that you've entered into with Forde & Mollrich? 24 A No. 25 Q Do you have any contracts that you've

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ELITE COURT REPORTING (949) 829-9222 1 personally entered into with Gafcon? 2 A No. 3 Q Do you have any contracts that you've entered 4 into with any other entity that did work on the 5 Great Park except for Kenny the Printer? 6 A No. 7 Q Did Kenny the Printer ever volunteer any free 8 time to help you on any campaign or any other matter? 9 A No. 10 Q Do you have still in your possession any type 11 of a rate sheet that Kenny the Printer gave you for any 12 work that you hired Kenny the Printer for? 13 A No. 14 Q You don't have that? 15 How was the work that you did through Kenny 16 the Printer -- how did that come about? And let me 17 strike that. I'll ask it a better way. 18 Who introduced you to Kenny the Printer? 19 A They're a well-known printer, one of the -- 20 one of the major printers in Irvine. So as an Irvine 21 resident and Irvine City Council member, we always talk 22 about using Irvine resource, Irvine business, and that's 23 what I did. 24 Q There are other printing companies in Irvine, 25 though; right?

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ELITE COURT REPORTING (949) 829-9222 1 A Oh, I'm sure they are there. 2 Q It's a big city. 3 A Yeah. 4 Q Is there a particular reason why you went to 5 Kenny the Printer? 6 A You know, once again, it's a well-known 7 printer, and that's what I used. 8 Q Did you know about them from their city 9 business first, or did you hear about them from some 10 other source? 11 A Personal. Yeah, personal sources. 12 Q Personal? Friends? 13 A Yeah. 14 Q That had used -- are you aware of any other 15 council members on the Irvine City Council between 2004 16 and 2012 that used Kenny the Printer? 17 A I don't know. 18 Q Now, as I understand it, you ultimately 19 voted -- and I believe it was either 2011 or 2012 -- to 20 reduce the amount of the Forde & Mollrich contract. 21 Do you recall that vote? 22 A Yes, I do. 23 Q Why did you vote to reduce their contract at 24 that point? 25 A That's what chair- -- I mean CEO Ellzey

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ELITE COURT REPORTING (949) 829-9222 1 recommended to the board. 2 Q And are you saying you voted for that because 3 it was staff's recommendation? 4 A Right. 5 Q Did you ever have any meetings with any city 6 council member prior to that vote being taken to reduce 7 Forde & Mollrich's contract amount? 8 A No meetings. But I remember getting a phone 9 call from -- I believe it's either Bill Kogerman or -- 10 what is it? Ray -- I'm losing it. Walkie Ray. 11 MR. BUUS: Do you need to take a break? 12 THE WITNESS: No, no, I'm okay. Yeah, I'm 13 okay. 14 BY MR. TAYLOR: 15 Q What was discussed on this phone call? 16 A Asking me how -- if I was supporting the 17 staff-recommendated [sic] action. So I said yes. 18 Q Did any council members attempt to call you or 19 e-mail you during that time about how you would vote? 20 A No. 21 Q And so your testimony's clear, I -- as I 22 understand it -- and I'm letting you clear the record, 23 but you're saying that none of the council members, 24 including Larry Agran or any other council member, 25 called you, e-mailed you, met with you, before the vote

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ELITE COURT REPORTING (949) 829-9222 1 to reduce Forde & Mollrich's contract? 2 A No. 3 Q So my -- it's correct that they didn't meet 4 with you? 5 A That's correct. 6 Q Before taking a vote on any particular matter 7 that you can recall that occurred on the Great Park, do 8 you recall ever having any meetings, phone 9 conversations, discussions of any nature, with Larry 10 Agran or any other council member before votes were 11 taken? 12 A I would say from time to time. I don't 13 remember all. But as long as I don't violate the Brown 14 Act, yeah. 15 Q Do you recall any particular discussions you 16 had with Chairman Agran or any other council member? 17 A No. 18 Q When was the last time that you spoke with 19 former Mayor and Chairman Agran? 20 A Good question. Matter of fact, after a long 21 time, I had coffee with him -- when was that? This 22 year. I would say early January. 23 Q Did you discuss anything with him about the 24 Great Park? 25 A No. Strictly personal.

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ELITE COURT REPORTING (949) 829-9222 1 Q I understand that you and him had a 2 disagreement at some point in time, or -- is that a fair 3 statement? 4 A It is. Well, we are different people, and we 5 had some differences. But my style usually reaches out 6 and try to build consensus. Therefore, on matters that 7 is very important to the city and the Great Park, 8 certainly, you know, we've been able to kind of work 9 together and try to bring that right decision to the 10 table. 11 Q Did you have any disagreements at the time 12 where you and Mr. Agran were disagreeing about the 13 Great Park, in particular? 14 MR. BUUS: I'm sorry? 15 MR. TAYLOR: That probably was not as well 16 worded as it could have been. 17 MR. BUUS: Ask that one more time. 18 MR. TAYLOR: Let me rephrase it. I'll 19 rephrase it. Strike that. 20 BY MR. TAYLOR: 21 Q You just testified about there being a point 22 in time where you and former Mayor and Chairman Agran 23 had a disagreement. 24 At that point in time, the point of this 25 disagreement, did any of the cause of the disagreement

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ELITE COURT REPORTING (949) 829-9222 1 have anything to do with the Great Park? 2 A Not on the Great Park, per se. There was an 3 item relating to the Great Park development by the 4 FivePoint Communities. 5 Q And what specifically about that item caused 6 friction, if you will, between you and former Mayor and 7 Chairman Agran? 8 A Simply put, there was a different style of 9 approaching things. We did not disagree on principle, 10 just a matter of how to resolve or how to go about 11 doing, we had some differences. Yes. 12 Q And what specifically were you talking about 13 there that you were trying to work through and resolve? 14 A Is that related to the Great Park audit? 15 Q Correct. It relates to the Great Park. 16 A Okay. I'm sure it's on public records, that 17 proving first phase of the FivePoint Communities 18 development project. And I believe that he casted a 19 dissenting vote on the final second reading vote. 20 Q Did you ever work with a company by the name 21 of Townsend? 22 A No. 23 Q Do you know who they are? 24 A I know who they are. 25 Q Did you ever work with a company by the name

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ELITE COURT REPORTING (949) 829-9222 1 of Chora? 2 MR. BUUS: Will you spell that, please -- 3 MR. TAYLOR: Chora? 4 MR. BUUS: -- so I know what you're talking 5 about. 6 MR. TAYLOR: C-h-o-r-a. 7 MR. BUUS: Thank you. 8 THE WITNESS: Yeah, I know the company. Well, 9 I know they work for the Great Park for a little bit. 10 That's all I know. 11 MR. TAYLOR: Why don't we go off the record 12 just for a few minutes and I'll see if I have anything 13 else. 14 THE WITNESS: Okay. 15 (Recess was taken from 12:57 p.m. to 16 1:02 p.m.) 17 MR. TAYLOR: So I had -- back on the record. 18 Thank you all for bearing with me with my head 19 cold today. If some of my questions didn't come out as 20 they normally would, I apologize for that. 21 I have a few final documents that I wanted to 22 go through. 23 Are we on 10? 24 THE REPORTER: Yes. 25 MR. TAYLOR: I was going to mark as

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ELITE COURT REPORTING (949) 829-9222 1 Exhibit 10 -- I just have one copy of this. This is an 2 excerpt taken from the -- the video system that the city 3 has for a meeting on January 25th, 2007. It's an 4 exchange between you and Mr. Gaffen of Gafcon. 5 (Deposition Exhibit 10 was later marked 6 for identification and is attached hereto.) 7 BY MR. TAYLOR: 8 Q Let me provide that to you and you can take a 9 moment to read it. 10 A (Witness complies.) 11 I read it. 12 Q It seemed to me, from reading this, that you 13 had concerns at this time, in 2007, about the financial 14 feasibility of the master plan for the -- for the 15 Great Park and you were raising questions about how much 16 revenue was available to fund the long-term 17 construction. 18 Is that a fair characterization? 19 A Well, I don't, first of all, remember this 20 question. Of course, it goes back to 2007, January. So 21 you're talking about at least eight years ago. 22 So I don't remember this particular question. 23 However, it says right there that I was asking them to 24 respond to my question. 25 Q And the question focused on the amount of

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ELITE COURT REPORTING (949) 829-9222 1 redevelopment funds that would be available for the 2 Great Park; correct? 3 A Yeah, it reads like that. 4 Q Do you recall having your staff or others 5 analyze that issue for you back in 2007 or at a later 6 date? 7 A You know, that, I don't remember. 8 Q Do you recall having any concerns in 2007 or 9 at a later date that the amount of money that was 10 available from the redevelopment agency would be 11 insufficient for the cost to build out the master plan? 12 A No. 13 Q Okay. I don't have any further questions on 14 that exhibit, unless you have anything else to add. 15 A No. 16 MR. BUUS: Why don't we hand this back. 17 MR. TAYLOR: Let's put them in the stack. 18 Yeah, we'll keep her stack. 19 THE REPORTER: Thank you. 20 MR. TAYLOR: I'm marking as Exhibit 11 an 21 e-mail string from 2006. It's July of 2006. It says, 22 "Meeting for Larry Agran." 23 (Deposition Exhibit 11 was later marked 24 for identification and is attached hereto.) 25 ///

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ELITE COURT REPORTING (949) 829-9222 1 BY MR. TAYLOR: 2 Q The reason I'm bringing it to your attention 3 is it looks like you were included on this meeting 4 string. 5 A Uh-huh. 6 Q And I'm going to see if this refreshes your 7 recollection. You're included on the second page. 8 You'll see your name is mentioned as attending this 9 meeting. 10 And I'll give you a moment to read this to see 11 if it refreshes your recollection about what was 12 discussed at that meeting. 13 A (Witness complies.) 14 I read it. I have no idea what this meeting 15 was about. I just can't recall. 16 Q Do you recall having meetings with different 17 groups where both you and Larry Agran were the only 18 members representing the City of Irvine? 19 A Probably, at times. 20 Q Do you recall what was discussed at those 21 meetings? 22 A No. 23 MR. TAYLOR: I'm going to mark as 24 Exhibit 12 -- this is a document we received in the 25 production of Gafcon. I'll let you read it. It

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ELITE COURT REPORTING (949) 829-9222 1 concerns sponsorship of $2500 for a table. 2 (Deposition Exhibit 12 was later marked 3 for identification and is attached hereto.) 4 (Pause in the proceedings.) 5 THE WITNESS: Yeah, I read it. 6 MR. BUUS: May I see it? 7 MR. TAYLOR: Sure. 8 MR. BUUS: Hold on one second, please. 9 MR. TAYLOR: Sure. 10 (Pause in the proceedings.) 11 MR. BUUS: Okay. 12 THE WITNESS: Yes. 13 BY MR. TAYLOR: 14 Q The question I have for you is, do you recall 15 ever requesting that Design Studio or any entity 16 affiliated with the Design Studio make any type of 17 contributions to any type of causes or groups? 18 A The e-mail reads that they were buying a table 19 at the Korean-American Coalition, Orange County, I guess 20 an annual event. 21 Q Is that something that you requested that 22 Gafcon do? 23 A Well, I don't remember, but it says that I 24 wanted the studio to buy a table. You know, I don't 25 remember that request.

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ELITE COURT REPORTING (949) 829-9222 1 Q Do you recall making any other requests that 2 the Design Studio or any entity that was part of the 3 Design Studio purchase any type of tables for any 4 fund-raisers or events for you? 5 A No. 6 Q Okay. I don't have anything further at this 7 time. I have given each of the witnesses, to my 8 recollection, that wanted to, the opportunity to add 9 anything that they'd like to at the end of their 10 deposition that they feel is important for the audit. 11 If you have something else you'd like to add, 12 feel free to do so at this time. 13 A No further comments. 14 MR. TAYLOR: Okay. Well, that concludes your 15 deposition today. That -- as I previously notified you, 16 you'll have the opportunity to review the transcript. 17 This is a public document, so one of the 18 things I've explained to all the witnesses is that we 19 can't hold up releasing the transcript until all the 20 changes are in, but what we've done our best efforts at 21 is to give you the transcript at least -- if not at the 22 same time, immediately before it actually is released, 23 so that you can have a chance to read it. 24 And then we'll post any comments/corrections 25 that you have concerning the transcript, so the record's

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ELITE COURT REPORTING (949) 829-9222 1 fully complete and accurate. 2 THE WITNESS: So when will you send the -- 3 MR. TAYLOR: It depends on the reporter's 4 schedule. Typically, it's one to two weeks. It just 5 depends on her workload. 6 THE WITNESS: Okay. 7 MR. BUUS: Ten business days is what they 8 always tell me. 9 MR. TAYLOR: That's my one to two weeks. It 10 just depends on -- 11 MR. BUUS: And then -- 12 MR. TAYLOR: -- her load. 13 MR. BUUS: And then if you wouldn't mind 14 sending it to my office, then I'll make it available to 15 Mayor Kang. 16 THE REPORTER: Sure. 17 MR. BUUS: And how much time does he have to 18 review it? 19 MR. TAYLOR: He can have -- we are getting 20 close to the end of the audit. If he can get back to us 21 within a week, that would be helpful. 22 MR. BUUS: Okay. 23 MR. TAYLOR: It's not very -- I mean, it 24 shouldn't be horribly long, so -- 25 THE WITNESS: Okay.

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ELITE COURT REPORTING (949) 829-9222 1 MR. BUUS: That's fine. 2 THE WITNESS: Thank you. 3 MR. TAYLOR: So stipulated. Thank you very 4 much for your time, Mr. Kang, and we'll go off the 5 record. 6 (Deposition concluded at 1:12 p.m.) 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

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ELITE COURT REPORTING (949) 829-9222 1 DECLARATION UNDER PENALTY OF PERJURY 2 3 I, SUKHEE KANG, do hereby certify under 4 penalty of perjury that I have read the foregoing 5 transcript of my deposition taken on February 18, 2015; 6 that I have made such corrections as appear noted 7 herein; that my testimony as contained herein, as 8 corrected, is true and correct. 9

10 11 DATED this ______day of ______, 12 201___, at ______, California. 13 14 ______SUKHEE KANG 15 16 17 18 19 20

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ELITE COURT REPORTING (949) 829-9222 1 REPORTER'S CERTIFICATE 2 3 I, Erika Kotteakos, Registered Professional 4 Reporter, Certified Shorthand Reporter in and for the 5 State of California, do hereby certify: 6 7 That the foregoing witness was by me duly 8 sworn; that the deposition was taken before me at the 9 time and place herein set forth; that the testimony and 10 proceedings were reported stenographically by me and 11 later transcribed into typewriting under my direction; 12 that the foregoing is a true record of the testimony and 13 proceedings taken at that time. 14 15 In WITNESS WHEREOF, I have subscribed my name 16 this date: February 27, 2015. 17 18 19 20 ______Erika Kotteakos, CSR No. 9698 21 22

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ELITE COURT REPORTING (949) 829-9222