RUELAS ACCUSED OF BIAS ON LEASE.

Byline: - Rachel Uranga

City Councilwoman Julie Ruelas has come under fire for refusing to recuse herself from today's expected vote on a city contract with a nonprofit group she heads.

The contract would allow Friends of the Lopez Adobe - a preservation group headed by Ruelas - to lease the city's old fire station at a below-market price. In exchange, Friends would open up the San Fernando Museum of Art and History.

``She needs to recuse herself (from) this discussion,'' said Councilwoman Steve Veres. ``There is obviously a conflict of interest here. What she is going to do is defend the best interest of the nonprofit.''

City Attorney Mike Estrada said Ruelas can legally vote because she personally does not profit financially from the deal.

But Veres has contested that opinion, and last week he unsuccessfully called for an audit of the 1-year-old nonprofit preservation group to ensure Ruelas has no financial interest.

The proposal failed in part because Ruelas, who did not return phone calls on Thursday, helped vote it down.

Under the proposed city contract, the Friends group will have to submit a biannual report detailing progress in raising funds, renovating the facility, developing itself as a tax-exempt nonprofit agency and offering programs.

It's unclear how Friends, which was established last year to develop the museum, will pay for the $100,000 overhaul and upkeep of the old fire station. The group's financial records have not been released. Its largest fund-raising event pulled in only $6,000, according to the Friends treasurer, Elvira Orozco, who is Ruelas' mother.