FBI CONTINUES TOXIN PROBE AT LANCASTER WORK YARD.

Byline: Karen Maeshiro Daily News Staff Writer

FBI agents returned Monday for a second day of digging soil samples at the city Public Works yard in an investigation into the storage and disposal of hazardous materials.

FBI officials, who were accompanied by members of the Los Angeles County Fire Department health hazardous materials unit, declined once again to comment on their on-site probe, which began Friday.

``It's just a continuation of Friday's. They didn't finish Friday,'' said FBI spokesman John Hoos. ``Everything has been sealed by a federal court. They are executing a federal search warrant. They should finish today.''

Federal grand jury subpoena and search warrant documents released Monday by the city say the Department of Public Works yard is believed to contain evidence of violations of the federal Resource Conservation and Recovery Act, which pertains to the illegal disposal of hazardous waste at a facility that does not have a permit, records show.

Federal investigators also have asked the city to provide them with items from the period covering January 1993 through November 1998, including files that relate to the Sierra Highway widening project, and invoices and other documents associated with the Public Works department's purchase of chemicals, paints, solvents, cleaners and fuels.

The subpoena also asked for environmental assessments prepared for properties or projects within a half-mile radius of the yard, and all manifests used by the city to transport and dispose of hazardous materials and wastes generated, handled or received by the city.

FBI agents searched the Public Works yard Friday and took soil samples and served subpoenas to Public Works Director Jeff Long and several other city employees.

Operations at the yard have been scrutinized in the past by city officials when they investigated a former employee's allegations that Public Works Superintendent David Mulkey misused city property and employee time, drank on the job, used racial slurs and improperly disposed of hazardous waste.

A former employee stated that the water used at the maintenance yard to wash the vehicles is being improperly diverted to a water basin through pipes Mulkey installed on the ground, a city report said.

The city's probe found no evidence that hazardous waste had been dumped improperly. Mulkey told city officials that prior to installing the pipes, he spoke with several city employees who assured him that the installation of the pipes was OK, the report said.

However, Lancaster Mayor Frank Roberts said the city will hire a leading environmental compliance consulting firm to study city practices and make recommendations, if any, to bring the city into compliance with local, state and federal environmental laws and regulations.

``The firm will examine and recommend any further measures to bridge us into full compliance,'' Roberts said. ``We've never received any notices of violation related to the maintenance yard and the kinds of environmental things that (some employees) seem to be alleging out there.''

The agency apparently is looking into the disposal of toxics into a 6- to 8-foot pit on the northwest corner of the Public Works yard at 46008 7th St. W.

Search warrant documents show a second location that was to be searched is a water basin located on the northeast corner of Avenue G-12 and 7th Street West, just north of the city yard.

In his response to the city, Mulkey acknowledged drinking alcohol but denied making racial slurs.

As a result of city investigation into allegations against Mulkey, the Public Works Department's No. 2 official was suspended without pay for 15 days beginning Monday.

Officials found evidence to support the allegation that Mulkey drank alcohol on the job, provided special assistance to certain employees who were up for promotions, made racial slurs and used poor judgment in purchasing a wet bar for his office. He also was reprimanded for not seeking permission to remodel his office.

Mulkey was hired by Lancaster in 1994 to help run the 97-employee department. He makes between $55,668 and $72,120 a year, records show.

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PHOTO (Color) The FBI returned Monday to a Lancaster Public Works yard in a waste disposal case.

Shaun Dyer/Special to the Daily News