Thursday, July 02, 2009

San Diego sheriff's department raids Francine Busby fundraiser

Okay, Bonnie Dumanis, this is getting to be a bit one-sided. You prosecuted a young man for trying to take a picture at Republican Cheryl Cox's fundraiser. Let's see how you handle a case of far greater abuse at a Democratic fundraiser. The very least that should be done is to make the caller (who was not a neighbor) pay for the cost of the helicopter and charge him with making a false police report.

Why were a canine unit and helicopter deemed necessary for this action? What on earth did the caller say, if anything, to make the sheriff's department pull out all the stops? Or was it the sheriff's department that overreacted?

Who Was Busby's Party Pooper?

Voice of San Diego
By WILL CARLESS
July 2, 2009

On June 26, at 9 p.m. someone called the San Diego Sheriff's Department and made what the department has described as a "noise complaint." The call resulted in several deputies, a K-9 unit and a helicopter being deployed to a private residence where a political fundraiser was being held for congressional candidate Francine Busby.

The evening ended in chaos, with the host of the fundraiser in jail accused of obstructing a peace officer and battery on a peace officer and several middle-aged guests alleging excessive force by a deputy who they claim shot pepper spray indiscriminately at a crowd of guests.

Of all the questions to surface since that evening, the identity of the mystery caller to the Sheriff's Department, and the nature of his or her complaint remain perhaps the most perplexing. Because the department won’t reveal any information about the caller and won't release any documents or recordings of the incident, the public has no way of knowing if the caller was a disgruntled neighbor, upset about noise from the party, or a political saboteur, intent on disrupting Busby's fundraiser.

For her part, Busby wants to know if the caller was the same person who hid in some bushes on a plot adjacent to the home where the fundraiser was held and heckled her while she made a speech to supporters. She has asked the Sheriff's Department to clear the air by releasing a recording of the phone complaint.

The Sheriff's Department issued a statement saying that it received a noise complaint from an individual regarding the fundraising event. But the department has refused to elaborate on the incident because it is currently under internal investigation.

Sanford Toyen, a Sheriff's Department legal advisor, said the records are exempt from disclosure under the California Public Records Act because they are records of a law enforcement investigation.

But public records law expert Terry Francke disagreed. Francke said while the department may keep the identity of the complainer secret, it is required to make public the basic facts of the complaint under the CPRA.

"Merely using a label like 'noise complaint' is insufficient," Francke said.

Kevin Keenan, executive director of the American Civil Liberties Union of San Diego and Imperial Counties, said the Sheriff's Department has to play a delicate balancing act between releasing information about what could be a malicious complaint and protecting the privacy of the individual who made the call.

But Keenan said the department could release certain information about the incident -- for example, whether the complaint was made by a neighbor or someone who did not live near the party and could not legitimately make the claim that they were disturbed by it.

"When there's a vacuum of information and a lot of legitimate concerns, it's usually the best policy to get the information out there," Keenan said.

According to the Sheriff's Department, a deputy based in Encinitas was called to the residence on Rubenstein Avenue in Cardiff after the department received the noise complaint at about 9 p.m. on July 26.

About an hour before the deputy showed up, Busby had made a brief speech on the back patio of the large house where the fundraiser was being held.

That speech prompted the mystery heckler to launch his reported tirade.

As Busby spoke to the crowd through a public address system, a man hidden behind trees and bushes on a neighboring lot started to shout obscenities and insults about her policies, said four people who attended the party. The profanity-laced invective went on for several minutes before one of Busby's supporters decided to shout back, Busby said.

"Somebody yelled back at him. Whoever he was, he was hidden in the bushes, we couldn't see him," Busby said.

There are three homes whose gardens back onto the yard where the fundraiser was being held. In interviews, the residents of all three of those homes said they had no idea who might have shouted at the group gathered for the fundraiser. All of the residents said they were Democrats and said they had not heard any noise from the party until the Sheriff's Department helicopter showed up...

Thursday, June 25, 2009

Rick Wurts and Marco Gonzalez have memory problems; why did the city help Surf Diva and damage Menehune Surf School

A Battle Over Surf Camps at La Jolla Shores
By ADRIAN FLORIDO
June 22, 2009

The waves at La Jolla Shores are a beginning surfer's dream. They break far from shore, and the beach's gradual slope means that when they do, new surfers have plenty of time to ride the gentle shallow whitewater all the way to shore.

La Jolla Shores is a surf instructor's dream, too. The scenic strip of San Diego's coast and its oceanfront hotels and boutique shops draw tourists year-round, providing a renewing pool of potential clients.

Those factors make the four surf instruction permits that the city's Real Estate Assets Department issues there the most lucrative of the 13 citywide. Since 2005, when the city first required permits for commercial surf instruction on San Diego's beaches, two companies have shared the sands at La Jolla Shores.

But how the city has distributed those permits in the last four years is threatening to put one of those companies, Menehune Surf, out of business, said Darren Fulhorst, the company's owner. When his competitor, Surf Diva, was granted only two of the three permits it bid on in 2005, the city circumvented the formal bidding process to create a fifth permit at La Jolla Shores, which it granted to Surf Diva, and in the years since has been unwilling to account for how or why it did so.

That decision, Fulhorst said, set the precedent for the city's move to revoke one of his two permits and grant it to Surf Diva when the fifth permit was eliminated during the 2008 bidding process. Last year, Fulhorst's company was awarded only one permit to operate on La Jolla Shores, cutting his operating capacity by half. Surf Diva was awarded the other three.

Gary Jones, the real estate department's asset manager, the city's decision was based on scores given to each of the companies' proposals...

But Fulhorst said the decision to grant one of his permits to his competitor was spurred more by the department's need to formally grant Surf Diva the third site it had created to accommodate the company's demands outside of the formal bidding process in 2005.

In the fall of 2004, the city, in an attempt to regulate the commercial surf instruction operations on the city's beaches and generate additional revenue, asked existing surf camp owners to submit proposals for the limited permits.

Fulhorst applied for two of the four La Jolla Shores permits to accommodate the Menehune Surf Camp and the Ocean Girl surf school, which he had recently created. Surf Diva, which had recently acquired two smaller surf schools operating on La Jolla Shores, applied for three of the four site permits.

In May of 2005, each company was granted two three-year permits. The decision meant that Surf Diva's Australian Surf Academy, which would have been granted the third permit the company's owners requested, would be unable to operate at La Jolla Shores.

That should have been the end of it.

But then a new permit popped up. In a July 11 letter to Surf Diva owner Isabelle Tihanyi, READ property agent Diane Bartko noted that the city had created an additional site, which it called 1A, for the company.

Why that fifth site was created is what Fulhorst has been trying to find out for more than a year, since the end of the 2008 renewal process when he lost his permit. Since then, his operating capacity has been reduced by half, and the investments he has made, like his partnership with a local boutique, and a mortgage on his house, threatened, he said.

Representatives from the Real Estate Assets Department could not account for the decision to accommodate a fifth site permit outside of the formal bidding process in 2005, saying only that it was within the department's authority to do so.

In deciding how many permits to grant at each beach, Bartko said the department only formalizes the recommendations made by the city's lifeguard services and parks departments, which evaluate the beaches and determine how many commercial operations each can safely accommodate.

In both 2005 and 2008, that number for La Jolla Shores was four, and four permits were made available during each bidding cycle. The creation of site 1A in 2005 following the conclusion of the bidding process appears to have been made to accommodate the Surf Diva's third company, although neither city nor Surf Diva representatives would speak about who had requested it.

Marine Safety Captain Rick Wurts, who made that recommendation in both 2005 and 2008, and who would have advised READ on any additional sites, said he could not remember how or why site 1A was created,
saying only that the determination of a beach's commercial capacity changes day to day and over time...

Wurts, who in 2005 was also on the READ committee that decided which companies would be issued permits, recused himself in 2008, "in order to ensure that there was an absolutely objective evaluation," adding that "he didn't have a conflict of interest with anything. I could have been a perfectly objective part of the evaluation process."

Marco Gonzalez, an environmental lawyer who represented Surf Diva during the bidding process in both 2005 and 2008, was also unable to recall how he secured the fifth site for his clients in 2005.

"That was a long time ago. I don't remember," he said...

Sunday, June 21, 2009

Dean Calbreath hopes Arnold Schwarzeneggar will stop tax breaks


Tax changes may be key to plugging budget hole

Dean Calbreath
San Diego Union-Tribune
June 21, 2009

With California on the brink of insolvency, Sen. Dianne Feinstein recently recalled the days when, as mayor of San Francisco, she would venture out into the neighborhoods and ask people what kind of services they wanted.

“Do you want more police?” Feinstein would ask.

The answer would come back, loudly, “Yes.”

“Do you want more firefighters?”

The answer would come back, loudly, “Yes.”

“Do you want to pay for them?”

“And instantly,” Feinstein said, “there would be a booming 'No.' ”

Speaking to a crowd of mostly government workers at Lawrence Livermore National Laboratory late last month, Feinstein said “that's part of the dilemma of (the California budget crisis). And the hard part of it is where the cuts have to come from.”

Feinstein's comments get to the heart of the problem facing Sacramento now. How many schools, libraries, parks and other public services is California willing to do without as we try to close our budget deficit, currently pegged at $24.3 billion?

Gov. Arnold Schwarzenegger's proposal before the Legislature is to rely on cuts alone to fix the budget: $5.5 billion from health and human services, $5.1 billion from education and $1.3 billion from the court and prison systems. The rest of the money would come from one-time sales of state assets; borrowing from cities and counties (an idea that infuriates local officials); furloughs, pay cuts and layoffs of state employees; fee increases and cuts in other services.

Schwarzenegger pledged last week to veto any budget that includes new taxes beyond what he has already proposed, which largely consist of increases to the state sales and income taxes.

“To do another tax increase is irresponsible,” Schwarzenegger said.

But if Schwarzenegger really wants to be responsible about putting out a budget, he should re-examine some of the tax breaks that were inserted into the budget last year to gain the votes needed for a two-thirds passage in the Legislature. And he should reconsider some of the taxes that were abandoned during the budget negotiations.

A conference committee of the Legislature last week proposed doing just that: clipping out the tax breaks and adding back the taxes. Despite Schwarzenegger's veto pledge, he should give the panel's recommendations some consideration:

Oil companies. California is the fourth-largest oil-producing state in the country behind Louisiana, Texas and Alaska. But despite our reputation as a high-tax area, California has never imposed severance taxes for pulling gas or oil out of the ground.

That's a stark contrast to the other oil-and gas-producing states, most of which have double-digit severance taxes. The taxes in conservative, Republican-dominated Alaska are at 25 percent, generating so much money that the state is able to pay residents $2,000 per year as a benefit, besides building a war chest for when oil will no longer be available.

The conference committee proposed putting a 9.9 percent severance tax on oil – a proposal that Schwarzenegger supported last year – which would generate an estimated $830 million in revenue.

Joseph Sparano, who represents oil interests as head of the Western States Petroleum Association in Sacramento, argues against the severance, noting that in California, as opposed to some (but not all) oil-producing states, oil companies pay property taxes for the land where they are drilling.

“If you add the severance tax, oil producers would be paying higher taxes than anywhere else in the country,” he said.

Sparano may have a point. But perhaps we could at least lift severance taxes to the point where we'd be on a par with, say, Texas, Louisiana, New Mexico and Wyoming, which now collect far more on their oil and gas than we do, even after taking property taxes into account.

Corporate tax breaks. During the budget negotiations in February, the Legislature inserted three corporate tax breaks that resulted in a total gap of $2 billion to $2.5 billion

Data from the state Franchise Tax Board show that one of the proposals – to allow companies to choose between two ways of being taxed in the state – would largely benefit the 0.1 percent of companies in California that make more than $1 billion per year. Much of the benefit would go to just nine companies, saving them an average of $33 million a year.

“These massive, permanent tax cuts will exacerbate California's persistent budget troubles, requiring deeper cuts in public services or potentially larger tax revenues from California's families,” said a report of the California Budget Project, a liberal think tank in Sacramento.

Another proposal, which would allow corporations to transfer taxes among related companies, would benefit just 0.03 percent of corporations, with the top six companies saving an average of $23.5 million a year.

Auto license fee. Schwarzenegger's first action as governor was to roll back California's fee on automobile licenses, which put a $4 billion hole in the budget. As the budget problems mounted last year, Schwarzenegger was forced to increase the license fee. And now the Legislature is proposing to raise it an additional $15.

The standard argument against raising taxes is that it would discourage people from buying automobiles. But will an additional $15 fee on an auto license really stop Californians from buying a new car? That's doubtful – but it could generate millions of dollars for the health care, education and other services being cut.

Cigarette taxes. The committee is proposing to increase excise taxes on cigarettes and other tobacco products by $1.50 per pack, nearly tripling the tax on a pack of cigarettes from 87 cents to $2.37. This proposal would increase revenue by an estimated $1 billion next year.

Esmael Adibi, economist at Chapman University in Orange, who happens to be a smoker, complained that such a tax would be “Draconian” and would fall most heavily on the poor.

But if you weigh the value of helping people quit smoking versus laying off teachers and suspending health care for poor children, it would be hard to call it an altogether bad idea. Even if that proposal were chopped down by 90 percent, to 15 cents per pack instead of $1.50, it would still generate $100 million in revenue, which would be enough to keep quite a few teachers on the job.

The bottom line is that to have a balanced budget, there will be pain all around. Assembly Speaker Karen Bass, who supports the tax revisions, said she just wants to make sure “that the shared pain be shared by oil companies and tobacco products, as well.”

Sunday, May 31, 2009

Judie Italiano out as manager of MEA, the largest white collar union of San Diego city employees

Judie Italiano has resigned as manager of the San Diego Metropolitan Employees Association (MEA), and her erstwhile supporters are scrambling to distance themselves from her.

Events have developed quickly since MEA members Linda French and Ed Harris sued Ms. Italiano a few weeks ago.


Italiano Resigns After Investigation Finds Card Misuse

Voice of San Diego
RANI GUPTA
May 29, 2009

Judie Italiano, the longtime general manager of the Municipal Employees' Association, has resigned after an internal investigation determined that she continued to use the union's credit cards for her personal use despite promising not to do so in 2006.

MEA board members said in a letter sent to members today that the union had referred the matter to the District Attorney's Office for "its determination as to whether any crime was committed in the course of Ms. Italiano's breach of trust."

Michael Zucchet, a former city councilman who had been working as a consultant to the group, has been acting as general manager since Italiano was put on leave May 12 as the union conducted an investigation.

Italiano's personal use of credit cards was first discovered in 2006 and was the subject of an internal investigation, a campaign to unseat her, and an investigation by then-City Attorney Mike Aguirre.

In an interview today, MEA President Tony Ruiz said the union subsequently changed its policies to prohibit the personal use of credit cards. Italiano also agreed to pay the association back for personal charges, Ruiz said.

Ruiz said Italiano stopped using the card for personal charges shortly after those charges came to light. But starting in November 2006, she resumed using the union cards for personal charges such as groceries and a casino gift shop, Ruiz said.

Ruiz said he discovered Italiano's personal credit charges when he was preparing his first budget as association president and examined the books kept by office staff. The letter sent to members says Italiano wrote the organization a check totaling $13,903 covering the full amount, including interest, of $6,916 owed in credit card charges, along with $6,987 in annual leave. Those cover charges made through February 2009, Ruiz said.

"We were all taken in by Judie," Ruiz said. "She [said] she would not be doing this type of behavior anymore. We put these policies in place and she agreed to these policies, and she breached our trust."



[Maura Larkins' note: I'm not sure I believe Mr.Ruiz. I think Bud Simpson might be describing the situation more accurately:

"Judie pretty much had the board of directors eating
out of her hand," Simpson said. "She's done a pretty
good job for them and, as a result, she makes sure she
has the executive committee handpicked."

Simpson added that the general membership didn't
appear to care. "Just as long as you take care of us,
we'll forgive minor indiscretions," he said.]

Wednesday, May 27, 2009

How can this be? Jan Goldsmith is the new Mike Aguirre? Or is Mayor Sanders the problem?

Fight Like It's 2007
Voice of San Diego

During Mike Aguirre's term as city attorney, nobody dogged him as diligently as John Kaheny.

Kaheny's relentless e-mails sometimes broke news about the city attorney and sometimes spread conspiracy theories more ridiculous than the ones Aguirre was sometimes wont to spin. But always, Kaheny, a former assistant city attorney, was on Aguirre's case and his e-mail list served as an almost daily talking points memo for the ever-growing ranks of Aguirre's dissenters. I don't know that anyone locally has ever so effectively used e-mail, document sharing and media criticism to gore a rival.

Kaheny declared victory months ago when Aguirre lost his re-election bid and he said the network would largely go quiet.

It's back.

In case you hadn't noticed, there seems to be a rising tide of concern about City Attorney Jan Goldsmith along with a growing lack of respect for the mayor. First, months ago Goldsmith infuriated some local opinion leaders and Mayor Jerry Sanders for ruling that the City Council could basically ignore the mayor's recommendations on labor negotiations. This became moot -- this year at least -- when the City Council decided to agree with the mayor unanimously. Nonetheless, the Mayor's Office thought it was a ridiculous opinion and it began to foment unrest about Goldsmith's competence.

Now, Rani Gupta's story Sunday has documented another major rift between the city attorney and mayor.

Gupta reported that the Mayor's Office was struck dumbfounded that its much-championed reforms to the city's controversial DROP benefit for employees would be subject to a vote of those same employees. Where was the city attorney on this?

Key passage in the story:

The news that the DROP changes apparently require a vote of the employees was news to Sanders' office, Chief Operating Officer Jay Goldstone said in an interview last week.

"It was a bombshell that was dropped after the fact," Goldstone said. "I'm not necessarily suggesting we would have taken a different position, but we would have known going in that the imposition was only step one of a two-step process."

Goldstone said it "would have been nice" if Goldsmith's office had told city officials about the requirement beforehand. He added, "I will tell you candidly, they will claim they told us and told our lawyers at least, our negotiators, but we (in the Mayor's Office) were not aware up here."

Several hours later, after a reporter called for comment from the city attorney, Goldstone called back to offer a different version of events, saying a conversation with the city attorney had refreshed his memory about the situation.

Goldstone said that the city's outside attorneys from the firm Burke Williams & Sorensen had talked to SDCERS officials during negotiations and, based on those conversations, had advised that the city had a "very strong argument" that the provision of the city charter requiring a vote didn't apply to the changes the city was seeking to make to DROP.

The City Attorney's Office, Goldstone said, never told city officials or even strongly suggested that changing DROP required an employee vote.



Kaheny, the prolific e-mailer, grabbed the story and sent it to his network with a note essentially hinting at incompetence in the City Attorney's Office (or, maybe worse for Kaheny's group, that the office has yet to restore competence). Since Jan Goldsmith, the current city attorney, has Kaheny to thank as much as anyone for getting the job, this was a potentially hurtful development. If questions about his own abilities to run the office become more mainstream, watch out.

Here was Kaheny's note:

I have no clue what is going on. It appears that the institutional memory was completely destroyed by Gwinn and Aguirre and that Goldsmith hasn't quite figured that out yet.



Wow. Someone in Goldsmith's office responded to Kaheny assuring the curmudgeon that Goldsmith was not to blame and attacking the mayor. Kaheny passed it along. Here was the note:

No John... Jan told them. Joan Dawson delivered the message... Sanders did not want to hear it & Bill Kay told Sanders what he wanted to hear so they moved forward. Kay & his firm are also handling litigation not the City Attorney...



Bill Kay is the city's labor negotiator. Yes, what we have here is a full-throated battle between the Mayor's Office and City Attorney's Office complete with accusations of reckless political agendas and incompetence! I went to D.C. last week and came back to 2007!



Kaheny responded to the anonymous city attorney staffer.

If the City Attorney so advised why was it not it not in writing and made public? Inquiring minds need to know.



Stay tuned. This isn't just insider intrigue. Aguirre was supposedly the main reason the mayor had trouble implementing his reforms and fixes for the city. Now one of the mayor's most prominent initiatives -- to roll back the most controversial of all city employee compensation issues -- might not work and he's blaming the new city attorney.


-- SCOTT LEWIS
May 27, 2009

Wednesday, May 06, 2009

Lifeguard files suit against Judie Italiano of MEA

UPDATE: May 31, 2009
The lawsuit detailed below seems to have triggered some defensive maneuvers within the MEA (San Diego Metropolitan Employees Association). All of a sudden the union became interested in allegations that were brought up in 2006 and all but ignored by the board of directors. The union started an investigation, and Italiano resigned.

My question: where is Judie Italiano's faithful friend and attorney, the ubiquitous Ann M. Smith? She seems to be taking a back seat to Michael Zucchet. I guess the directors realize that the Judie and Ann show is over.



ORIGINAL POST:

Suit Filed Against Italiano
Voice of San Diego
RANI GUPTA
May 6, 2009

Two members of the city's white-collar employee union filed suit today against its general manager, Judie Italiano, claiming she misused union funds by charging thousands in personal expenses to union credit cards and made loans to herself, her family and her allies in the union.

The suit was filed by Ed Harris, a lifeguard who is leading a push for the lifeguards to separate from MEA, and by Linda French, who sought to unseat Italiano in 2007. The lawsuit says Italiano breached her fiduciary duties and seeks to have her suspended or removed as general manager.

Among the charges: that Italiano used MEA's line of credit to secure her son's business lease and make a business loan to him. The suit says Italiano made more than $130,000 in personal purchases on the MEA credit card -- including to casinos -- and used $10,000 in union money to buy property "believed to be a timeshare in Hawaii." The lawsuit alleges that Italiano has stopped making payments on a promissory note drafted after the charges were first discovered.

MEA consultant Michael Zucchet said the allegations were already reported in 2006 when former City Attorney Mike Aguirre investigated Italiano.

Zucchet said MEA started an internal investigation into the allegations, hired auditors "and deemed it to be without merit, and took care of what needed to be taken care of."

[Maura Larkins' note: Would this be an investigation by Ann Smith, Judie's inextricably close associate?]

Harris said...the problems cited in the complaint are part of the reason he's seeking to leave MEA.

Monday, March 16, 2009

Did San Diego County make a big mistake by investing almost a billion dollars in hedge funds?

Jacob's Jaw Dropping Worry Spreads to Other Issues
Voice of San Diego
Scott Lewis
March 16, 2009

This month's Vanity Fair is almost wholly devoted to financial stories...

But most interesting to locals is this story on hedge funds and "why hedge funds are imploding by the thousands..."

Obviously, the story is interesting from the perspective of San Diego County's pension fund, which has something less than a billion dollars now invested in hedge funds. But the story also helps explain one of the attributes of these hedge funds that has apparently caused some alarm among those who oversee the county's retirement system.

You might remember that when the trustees of the pension fund accepted the resignation of their chief investment officer, David Deutsch, they also talked about their potential losses in the hedge fund WG Trading. WG Trading, of course, is under scrutiny from federal prosecutors who accuse its principals of fraud. And San Diego asked for its $78 million back from the fund late last year.

But they can't get the money back for several more months. Why?

From Seth Hettena's story (emphasis mine):

The pension terminated its relationship with WG Trading on Dec. 31 after the hedge fund refused to cooperate with an SDCERA consultant. Under its agreement with WG Trading, SDCERA is not entitled to receive its money until June 30.

Such restrictions on hedge fund redemptions, known as gates, have caught many investors by surprise, including SDCERA. Board member Dianne Jacob, chair of the County Board of Supervisors, requested a review of all similar restrictions SDCERA might face with other investments.



Take note of that word: "gates."

Vanity Fair helps illuminate Jacob's worry about hedge fund gates:

There are many managers who argue that the industry's problems are at least in part of its own making. Says Leon Cooperman, who founded the $3 billion hedge fund Omega Advisors in 1991, after a 25-year career at Goldman Sachs, "Hedge funds have shot themselves in the foot. They have not treated investors correctly." Atop his list of sins: refusing to allow investors to take their money out, which is known in the industry as "gating" investors.



The author explains more about gating later in the story, which focuses on Fortress Investment Group, a hedge fund that evolved into a publicly traded company.

Managers who employ gates defend the practice on the grounds that it's within their legal rights, and that selling their positions to meet redemption requests would be unfair to those investors who wanted to stay. But the widespread impression among investors is that managers broke a social contract and are doing it to save their own skins. And there may be another reason for the gates. Fortress's documents, for instance, disclose that "our funds have various agreements that create debt or debt-like obligations ... with a material number of counterparties. Such agreements in many instances contain covenants or 'triggers' that require our funds to maintain specified amounts of assets under management."



In other words, gates may mean that the money invested in a hedge fund simply isn't accessible -- or worse, that the assets simply don't exist...

Saturday, March 07, 2009

Tri-City Hospital probe kept secret: Does that prove there's no serious wrongdoing?


Should San Diego be called "Enron by the see-no-evil"?

Does keeping a probe secret prove that there was no serious wrongdoing? Quite the opposite, I would say.

Tri-City Hospital isn't releasing the probe conducted after CEO Art Gonzalez and eight administrators were placed on administrative leave. My guess is that the board doesn't want to go through litigation which would be expensive for the hospital. My guess is that the former employees don't want a trial, either, because the information in the secret probe would no longer be secret. Instead, both parties want to settle, keep the report secret, and preserve the reputations of both the former employees and the board members who worked with them.

Terry Francke, counsel for Californians Aware, says, "If they did find serious misconduct by these employees, then it becomes a matter of public interest" and the report must be released.

I agree, but in San Diego, wrongdoing is regularly hidden by public entities. Maybe the city should be called Enron by the see-no-evil.

Saturday, February 28, 2009

Welfare for the rich: top California officials bill taxpayers for nonessential travel

Report: Top Schwarzenegger staff traveled on taxpayer's dime
Channel 6, San Diego
Feb. 28, 2009

SACRAMENTO (AP) - A news report says in the midst of a budget crisis, top officials in Gov. Arnold Schwarzenegger's administration charged taxpayers tens of thousands of dollars for airfare, hotels and meals despite a ban on nonessential travel.

The Los Angeles Times says 10 high-ranking staff members who live in Southern California billed the state for routine trips from their homes to Sacramento.

And Carrie Lopez, the director of the state Department of Consumer Affairs, billed the state for transportation costs to attend a Justin Timberlake concert with her daughter. Lopez said the transportation cost was for a meeting with an energy company executive but the company denies it.

The Times says expense reports and calendars show many of the expenses submitted by top staff were incurred after the governor issued an executive order a year ago requiring state agencies to reduce travel costs because of the budget crisis.

The governor's office says the travel expenses will be reviewed.

Sunday, February 08, 2009

Greg Cox defends grants to daughter's employer, Elite Racing Foundation


Cox defends grants to daughter's employer, Elite Racing Foundation

By Eleanor Yang Su
San Diego Union Tribune
February 6, 2009

County Supervisor Greg Cox is defending his decision to award grants that top $100,000 to the Rock 'n' Roll Marathon while not disclosing that his daughter works for the company that stages the event.

Cox, whose district encompasses much of the marathon route through downtown San Diego, Hillcrest and Mission Bay, helped provide a $12,500 community enhancement grant this year to the Elite Racing Foundation for Children, Education and Medical Research.

He has recommended similar amounts since 1999 for the charity, which co-hosts the marathon with the privately held Elite Racing Inc. Cox also received $750 in campaign contributions from Elite executives in 2007, when he was running for re-election.

The San Diego Union-Tribune reported on Sunday that Elite Racing Inc. has been profiting from the marathon while its affiliated nonprofit has received hundreds of thousands of dollars in public subsidies and grants.

Elizabeth Cox has worked at Elite Racing Inc. since August 2002, and is responsible for development and community relations.

Supervisor Cox said he started supporting the marathon a decade ago because it helps boost the local economy and community involvement.

“I wasn't going to penalize the Rock 'n' Roll Marathon because of the fact that my daughter works there,” he said. “Nor was I going to reward them. . . . My decision has been to hold them to the same dollar amount for the past five or six years.”

Cox did not disclose his relationship when voting on the grant awards “because there was no legal reason to,” said Luis Monteagudo, an aide to Cox. Only the financial interests of dependent children and spouses must be disclosed, Assistant County Counsel Tom Montgomery said.

Bob Stern, a government ethics expert, said Cox should have recused himself and allowed other supervisors to recommend and vote on the grant...





UPDATE 1:

Race organizers hire independent auditor
02/06/2009
By Eleanor Yang Su


Background: The for-profit Elite Racing Inc., organizer of the Rock 'n'Roll Marathon, has an affiliated foundation that collected more than $600,000 in public subsidies and grants, according to city and county records analyzed by The San Diego Union-Tribune.

What's changing: Elite Racing's parent company has hired an auditor to look into finances. It has also withdrawn an application for city tourism promotion funds for next year's marathon.

The future: The audit is expected to be completed within three weeks.

...Elite Racing was acquired 13 months ago by a private equity firm, Dickey said, and the new management was unaware that the grants and subsidies were flowing in through the Elite Racing Foundation for Children, Education and Medical Research.

In naming the foundation as a co-host for the event, Elite benefited from a city policy that allows nonprofits to pay about half the cost for police services used race day. Those subsidies have been worth $40,000 to $45,000 a year. County supervisors also gave grants of about $20,000 annually to stage the marathon.

During the past year, the company has reported profits ranging from nothing to $275,000 in its applications to the city and county to stage the event and collect community grants...

Board members at the San Diego Tourism Promotion Corp., the nonprofit entity that will grant an estimated $25 million in hotel fee revenue to promote tourism this year, had mixed reactions about the withdrawn application.





UPDATE 2:

Marathon Organizer Rescinds Application For Tourism Funds
02-06-2009
Metro Networks Communications

The organizer of the San Diego Rock 'n' Roll Marathon has rescinded an application for 375-thousand dollars in city tourism/promotion funds. It has also announced it's hired an outside auditor to investigate questionable payouts associated with an affiliated charity. The actions come after it was discovered Elite Racing Inc. profited from the race while its charity foundation acted as a co-host for the race. The charity has also received over 600-thousand dollars in city subsidies and county grants over the race's eleven-year history.

Tuesday, January 13, 2009

San Diego Supervisors give out surplus revenue when there's no surplus

The Supes' Logic

The San Diego Union-Tribune, a local newspaper, has a bit of interesting context about the county's financial situation today. The county is considering laying off employees to cope with declining revenue.

Reporter Craig Gustafson writes:

"In a video message today to the county's 18,000-plus employees, Chief Administrative Officer Walt Ekard warned "actual layoffs will be necessary" to close a budget gap caused by the slumping economy."



At the same time the county is cutting, the supervisors that oversee operations continuing giving out grants to local community groups -- money the supervisors describe as coming from surplus revenue.

Why give out surplus revenue when there's no surplus? The supes say it's because there was a surplus when they approved their budget last year.

They're sticking to their budget when it allows them to give out grants that critics say are used to curry campaign support.

But they're not sticking to their budget when they have to make adjustments to cut services or eliminate staff.

-- ROB DAVIS
Tuesday, January 13 2009-- 12:47 pm

Sunday, January 04, 2009

San Diego County uses worn-out excuse of attorney-client privilege to keep investigation report secret


Did gifts cause CCS therapists to favor certain vendors of wheelchairs and other medical devices?

The Investigation the County Doesn't Want You to See
By WILL CARLESS
Jan. 4, 2009

At some point in 2007, a whistleblower at California Children's Services, a program run by the county of San Diego that provides wheelchairs and other medical devices to children with physical disabilities, filed a complaint with the county alleging improprieties within the program.

The county launched a widespread investigation into the allegations that continued for at least 13 months in 2007 and 2008, records show. The investigation led to disciplinary action against county employees and changes to the county's ethics policies, but the report the investigators produced, and all the information it contains, is being kept a secret.

... Minutes from meetings show staff discussed allegations that therapists at the CCS program received gifts from vendors in violation of county ethics rules and may have favored certain vendors over others because of those gifts.

But exactly what was alleged, who was investigated and how deep any problems at the program went, are all things the county's top officials have decided shouldn't be released to the public...

One public records expert said attorney-client privilege is consistently used by public agencies to avoid releasing embarrassing documents, and pointed out that the county could chose to waive its privilege and make the document public.

The county has also refused to provide a copy of the report to the state of California, which provides the bulk of the $20 million budget for the CCS program. A spokesman for the California Department of Health Care Services, which oversees the CCS program, said county officials told the state that the investigation only concerned "personnel issues" and that they had not found any evidence that the program had been negatively impacted by the individuals investigated.

...A county spokeswoman said in an e-mail that the medical therapists work with the family's physician to provide the best piece of equipment available to the child from a list of possible vendors.

The selection of vendors, and the possible undue influence placed on county therapists by vendors who gave gifts to county staff, appear from documents to have been the subject of the internal investigation sparked by the whistleblower...

...In San Diego, public bodies regularly hand over such reports and documents.

But, in response to a request from voiceofsandiego.org media partner NBC 7/39 for the investigative report, County Counsel John Sansone claimed that the document fell within one of the law's exemptions and therefore did not have to be provided...

Sunday, December 14, 2008

Jan Goldsmith: right wing and reckless? Andrea Dixon and developers are back in favor.

Jan Goldsmith is still going negative after being sworn in. Jan Goldsmith apparently likes campaigning more than he likes the job of San Diego City Attorney. In his inaugural speech, he combined his fondness for developers with some reckless, unsubstantiated allegations.


Goldsmith stirs up criticism with claim
Inaugural speech lashed out at foe
By Matthew T. Hall
SAN DIEGO UNION-TRIBUNE
December 14, 2008

The rub on Michael Aguirre was that he was reckless: He made unsubstantiated allegations that were beneath the dignity of any lawyer, much less San Diego's city attorney.

No one sounded that criticism louder than Judge Jan Goldsmith, who used it to unseat Aguirre in an election last month.

But in his first five minutes in office, Goldsmith made an unsubstantiated allegation of his own. During his inaugural speech in front of 2,000 people Monday, Goldsmith alleged that Aguirre had reassigned an attorney who dared to take an ethical stand in an office run amok.

From the dais, Goldsmith restored Deputy City Attorney Andrea Dixon to her old position advising the Planning Commission. Afterward, he declined to back up his claim or elaborate on it.

“I really think it says something about his character and integrity that he's willing to jump on this for political advantage to continue to grind his heel into Mike,” said Kathryn Burton, who was an assistant city attorney under Aguirre. “He made spurious accusations about the office and the management of the office that he hasn't even vetted. In a funny way, he's as reckless as Mike is.”

...The inauguration came a month after the supposed end of a tough political campaign in which Goldsmith said Aguirre habitually circumvented due process and Aguirre said Goldsmith was too close to builders and business interests.

A quarter of Goldsmith's high-profile speech involved the tale of Dixon being punished for refusing “to do something that she was ordered to do because it violated her ethical obligations.”

...Another former assistant city attorney, Karen Heumann, said a belief that Dixon was rubber-stamping development projects played a role in her being removed from Planning Commission duties.

Burton and Heumann said Goldsmith never spoke to them before making his accusation, to hear their version of what happened. Both were relieved of duty during the transition.

The public accusation by Goldsmith is surprising because, again and again in his campaign, he criticized Aguirre for making unfounded allegations.

“Your work is based upon conduct and actions, not based upon a lot of accusations and hot air and making enemies,” Goldsmith said at one televised debate. “That's a huge difference between us. I have never shot first and asked questions later...

UTC expansion

Retail giant Westfield's proposal for a $900 million expansion of its University City shopping center was at the center of the Dixon dispute.

The company sought approval to add 750,000 square feet of shops and 250 to 300 condominiums, raising concerns for neighbors about traffic, noise and other environmental issues.

Two July 25 e-mails show Burton asked Dixon to rewrite her memo reviewing the project to more fully analyze the legal issues and “to protect the public interest.”

Dixon wrote, “While I am very aware the project is controversial, I have not found any legal inadequacies in the EIR (environmental impact report), nor is there anything illegal concerning the draft permits.”

Burton replied, “Irrespective of any personal opinion regarding the merits of the project or the merits of the EIR, any opposition position that could prove problematic for the decision maker should be addressed.”

Burton added, “When I spoke to you about the project, you shrugged your shoulders and said: 'Ehhhh, the council is going to do what the council is going to do. Nothing we write will change that.' Your work on this project has not been of a quality that could be approved for distribution to the council.” ...

Friday, December 12, 2008

Cheryl Cox should resign or be recalled; she has brought corruption, not character, to the Chula Vista mayor's office

District Attorney Bonnie Dumanis' office investigated and prosecuted a young man for taking two hours off when he worked for mayor Steve Padilla. Why? Because Cheryl Cox supporters were outraged that the young man used the time to try to get a photo of Cheryl Cox with disgraced politico David Malcolm. Dumanis topped off her gift to Cox cronies (including San Diego County Supervisor Greg Cox, Cheryl's husband) by prosecuting another Cox opponent, Steve Castaneda. That political prosecution ended with the vindication of the victim.

Cheryl Cox told the voters that she was the candidate with more "character." That gambit was a hoax.

Cheryl Cox's character has been revealed to be cynical and corrupt. Not only is Cheryl dishonest and secretive, but she abuses her power. And worst of all, she happily watches as the District Attorney's office abuses its power on her behalf.

Chief of staff Dan Forster should go, and he should go now.

And Cheryl Cox should go with him.

Mayor's top aide got pay for other job on city time
By Tanya Sierra
SAN DIEGO UNION-TRIBUNE STAFF WRITER
December 12, 2008

Mayor Cheryl Cox's chief of staff was paid at least $25,000 as a consultant for his previous employer, with some of that work done on city time, according to documents released this week.

Dan Forster, who has worked for Cox since December 2006, said last month that he made $10,000 plus expenses for his consulting work for the North Slope Borough, a government agency he once worked for in Alaska...

North Slope Borough records show that officials agreed to pay Forster up to $27,030 between September 2007 and August 2008...Forster said Wednesday that he might have underestimated how much he was paid when asked about the work last month.
Invoices show that Forster has so far been paid $24,957, about $2,000 shy of his $27,030 contract maximum...

It is unclear how much of the work was done on city of Chula Vista time, but numerous e-mails – many with lengthy attachments – were sent to and from Forster's city e-mail account during his regular work hours at City Hall.

Last month, Forster said he did very little consultant work on city time. Cox said she gave Forster permission to consult during work hours because he was a good employee with an excellent record of being available when needed.

[This attitude is a complete contradiction of Cox's attitude toward city manager David Garcia. Being available when needed was not an acceptable defense in Cheryl's opinion just one month ago.]

The city's Internet and e-mail policy, however, prohibits employees from operating a business through the city's Internet link.

[Cheryl made it clear when she was a Chula Vista Elementary School board member that she didn't think policies applied to her.]

...This week, Cox proposed eliminating Forster's position because the city is struggling with a projected $20 million budget deficit next year...

Forster, who makes $124,000 a year at the city, said the idea was his and that Cox initially objected...

[I believe Mr. Forster's comment regarding Cox's objection to a clever idea. Cox is not a gifted problem solver, nor does she believe in doing the right thing.]

If his position is eliminated, Forster would stay through the end of June, when this fiscal year ends.

[Very clever idea, Mr. Forster, but not quite good enough. You should leave now, and take Cheryl Cox with you. And you should both be grateful that San Diego has a District Attorney who protects corrupt public officials.]

Thursday, December 11, 2008

If it weren't for recent stories about Sarah Palin and Ted Stevens, I'd be surprised Alaska is on the list

North Dakota Tops State Corruption List
By John Fritze,
USA Today
Dec. 11, 2008

Federal authorities arrested Illinois Gov. Rod Blagojevich Tuesday...

"If it isn't the most corrupt state in the United States it's certainly one hell of a competitor," Robert Grant, head of the FBI's Chicago office, said Tuesday.

On a per-capita basis, however, Illinois ranks 18th for the number of public corruption convictions the federal government has won from 1998 through 2007, according to a USA TODAY analysis of Department of Justice statistics.
Louisiana, Alaska and North Dakota all fared worse than the Land of Lincoln in that analysis.

Alaska narrowly ousted Republican Sen. Ted Stevens in the election in November after he was convicted of not reporting gifts from wealthy friends. In Louisiana, Democratic Rep. William Jefferson was indicted in 2007 on racketeering and bribery charges after the FBI said it found $90,000 in marked bills in his freezer. Jefferson, who has maintained his innocence and will soon go to trial, lost his seat to a Republican this year.

But North Dakota?

Morrison said the state has encouraged bad government practices in some cases by weakening disclosure laws. North Dakota does not require legislative or statewide candidates to disclose their campaign expenses.

The analysis does not include corruption cases handled by state law enforcement and it considers only convictions. Corruption may run more rampant in some states but go undetected.

Michael Johnston is a political science professor at Colgate University in New York — which is ranked just after Illinois for corruption convictions. Johnston, who has studied political corruption for 30 years, said places such as Illinois gain a bad reputation that becomes a self-fulfilling prophecy.

Friday, November 28, 2008

Are the library closings really secret land deals?

Blog of San Diego
11/22/08
by Pat Flannery

Mayor Sanders made an abrupt proposal to summarily close down several libraries. Here is Andrea Tevlin's much more thoughtful budget cutting proposal. Hers shows a wider perspective and allows for community input.

Tevlin's recommendation is: "keep these facilities open until a more deliberate and comprehensive plan for facility closures is developed and presented to Council." She notes that a number of libraries are on Sanders' closure list and also on his expansion list. Is this just incompetence or something else? If it is incompetence it is really gross incompetence.

Take the Ocean Beach Library for instances. Is Sanders aware that:
"In 2005, the City purchased land adjacent to the Ocean Beach Library for an expansion. According to Council reports at the time, this property is collateral for a HUD Section 108 loan of $2.0 million garnered for the Ocean Beach Library. Loan payments are approximately $223,000 annually through FY 2017 and are being paid from District 2 CDBG allocations."
Here is the public record, from the Tax Assessor. It confirms the IBA's findings but does not reveal the sale price from attorney Thomas Bryan to the City. It would take a little more digging to get that. The fact that the City later borrowed $2 million against the property tells nothing of the sale price or the value of the property. The important point is that the City is on the hook for $223,000 per year for that property. They have probably used the $2 million elsewhere by now. They move such money around all the time.

It seems to me that this whole library and park closure business has more to do with secret land deals than balancing the 2008/09 Budget. If Sanders is about anything he is about land deals. It is my guess that somebody wants that OB site. The library lot together with the lot next door would make a perfect mixed-use development. How many of the other library lots chosen for closure would make excellent development opportunities? Here are aerial pictures of the seven properties, all prime developable lots.

It would explain why Sanders is so sore at Andrea Tevlin. Is she spoiling a well-laid plan? Her recommendations make all the sense in the world. She says: "we are recommending a comprehensive facility plan addressing proposed closures along with proposed openings be brought to Council by February 2009 in order to prepare for the future." Sanders was very scathing about that suggestion. Why? His demeaning remarks about Tevlin brought public protests from Councilmembers Atkins and Young.

Sanders argues that because of an implementation delay, Tevlin's recommendations will result in a "cost". He failed to mention that she has offset this "cost" by raiding two of his pet projects: a BPR (outsourcing) surplus and his reallocation of a Transient Occupancy Tax surplus (he wants to use it for promotional expenditure on his hotel friends). Look at the attachment to her Report to Council. Sanders has a very weak argument.

The best thing that came out of the new "Strong Mayor" form of government was IBA Andrea Tevlin. We are immensely lucky to have her. Let's hope the City Council votes to support her sensible recommendations over the very suspicious proposals of Sanders on Monday November 24, 2008.

Scott Peters' last act of infamy as a City Councilor

Scott Peters' last act of infamy as a City Councilor
11/27/08
by Pat Flannery

A bizarre end to Scott Peters' eight years on the City Council is unfolding. He is using his powers as Council President to finally ram an unwanted 12,000 square foot student center, with a 17,000 square foot garage, on a quiet single family residential neighborhood in La Jolla. For some unknown reason he has pushed this project like a tiger for his entire term in office.

Facing widespread opposition from his own constituents in La Jolla, he managed to get his former law partner, Suzanne Varco, to represent the City in a law suit filed by two La Jolla citizen groups: the Taxpayers for Responsible Land Use and the La Jolla Shores Association. On March 27, 2007 the City lost. Superior Court Judge Linda B. Quinn struck down the City of San Diego's decision to permit this totally inappropriate project.

Peters and the City decided to ignore the court, saying: "it was determined that the applicant would be allowed to resubmit a new application addressing the judge’s concerns, and process it through the City’s review process." Peters docketed the project for a Council hearing on December 2, 2008, his last day on the City Council. Here is the full documentation for the Council Meeting on Tuesday afternoon. Note that the project has been rejected numerous times by the City Planning Commission, the La Jolla Community Planning Association and other local groups.

According to this Peters Doctrine of land use, if a citizen objector sues the City and wins, the City simply invites the applicant to resubmit substantially the same project and call it a new project. The City will then decide what "addresses the judge's concerns", not the judge. That is what Peters has placed before the City Council on Tuesday. They should reject it.

But here is where it gets really bizarre: the City screwed up the public notice regarding the vacation of a right of way that is part of the project's application. Dr. Ross M. Starr, a Professor of Economics at UCSD, sent this email to the City Clerk on November 19th. He noted that after inspecting the site on November 18 "There were no posted notices for the hearing currently docketed for December 2, 2008."
There was however a posted notice dated October 1, 2008 for a hearing on October 16, 2008. Dr. Starr and his friends wisely took pictures of the posted notice on front of a copy of the Union-Tribune for that day, November 18, 2008. Here it is and another showing a wider view of the site.

The City's response was to go out to the site and post this Revised Notice, announcing a special City Council meeting for December 5, 2008. It explained in bold print: "This Posted Notice is being provided in addition to the Posted Notice, previously posted on November 19, 2008. The Hillel of San Diego Student Center Public Right-of-Way Vacation has been noticed for the City Council hearing of December 2, 2008. It is anticipated that this item will be continued until Friday, December 5, 2008."

This means that Council President Scott Peters informed the City's Development Services Department that five Council Members had reached a "collective concurrence", on or before November 21, 2008, to continue Item 343 on the City Council Agenda for Tuesday, December 2, 2008 to a special City Council meeting on Friday December 5, 2008. Such a "collective concurrence" is illegal - in breach of the California Brown Act.

Yet that is exactly what Scott Peters is planning - one final act of infamy on his very last day as a member of the City Council. I hope a sufficient number of his former La Jolla constituents turn up at City Hall on Tuesday December 2, 2008, to deny him this final abuse of elected office.

Thursday, November 27, 2008

Public Records Request for CCDC's Nancy Graham e-mails finally granted, sort of

Link: 404
Voice of San Diego
by Rob Davis
November 25, 2008

E-mailWatch has ended. The Centre City Development Corp. recently turned over one final batch of e-mails sent or received by its former president, Nancy Graham.

We sought all of her e-mails after April 1, looking to determine what Graham had communicated as questions began being raised about her financial relationship with developers with business pending downtown. As my investigation continued, what did she tell people around her?

Turns out, not much. Or at least not much that was disclosed in the e-mails I fought for months to obtain.


Here's how the e-mails look by the numbers:



5,205: E-mails Graham sent or received between April 1 and her July 24 resignation.


0: E-mails that CCDC's attorneys from the Los Angeles-based law firm Kane Ballmer Berkman said were public records before our fight began in September.


4,388: E-mails that CCDC's attorneys ended up turning over after two months of back-and-forth.


413: E-mails that were spam or duplicates.


404: E-mails that were withheld and kept secret.

CCDC attorney Murray Kane offered this breakdown of why the 404 e-mails were withheld: 260 were attorney-client privileged; 35 were part of the deliberative process; 40 were confidential or related to on-going negotiations; 40 contained personnel, medical or "similar privacy matters"; 30 were preliminary notes or drafts not kept in the regular course of business.

CCDC withheld some responses to e-mails it disclosed. For example, Richard Ledford, a local lobbyist, sent Graham a May 13 e-mail entitled "Love That Press". It was written four days after our initial story documenting Graham's past business relationship with the affiliate of a developer with business pending downtown. The story was the first in that led to Graham's resignation and misdemeanor criminal charges being filed against her.

"I leave the country for a couple of weeks and you hit the press..." Ledford wrote. "you just gotta stay out of trouble! Ok, now don't shout, but my St. Paul client wanted to know if there are any fully entitled condo projects for sale in the redevelopment area. Yeah yeah yeah... don't start on me!"

Graham replied the same day. CCDC never provided her reply or the specific legal reason it was withheld.

For those who have been following E-mailWatch, at least two changes have resulted from our pursuit of Graham's e-mails.

Fred Maas, the CCDC board chairman, discovered from the e-mails that Graham had bought $18,000 in office furniture for CCDC's move to new offices earlier this year. That furniture is now supposed to be returned and replaced with less-costly furniture.


Maas said that CCDC is also taking steps to streamline the disclosure of e-mails requested in the future. Maas said CCDC's policy starting in 2009 will be to disclose all e-mails sent to staff members. Any e-mails containing confidential information will be directed to a special e-mail account; everything will be released otherwise, Maas said.



-- ROB DAVIS

Friday, November 21, 2008

When it comes to greed, sometimes it's hard to differentiate between city unions and Republican insiders

We know that developers and their insider friends keep public money flowing to private projects, but in San Diego it seems that city unions are just as ready as the fat cats to suck the city dry.


Trying to DROP the Budget Deficit
By DAVID WASHBURN
Nov. 19, 2008


As the denizens of City Hall search every financial nook and cranny for ways to close the city's gaping budget hole, some sights have been set on the DROP program, the now famous pension perk that has long been the target of fiscal reformers.

The city could save in the neighborhood of $750,000 annually if the 13-member board of the San Diego City Employees' Retirement System votes to cut in half the guaranteed 8 percent interest rate paid on money city employees have in the program, according to a back-of-the-napkin estimate by Joseph Esuchanko, the city's actuary.

Though this savings would represent less than 2 percent of the city's $43 million midyear budget deficit, it would be equivalent of saving several libraries or recreation centers that Mayor Jerry Sanders has proposed closing to close the budget gap...

However, the pension board, made up of a mixture of current and former city employees and mayoral appointments, has consistently shot down proposals to lower the interest rate. The board is scheduled Friday to consider lowering it to 7.75 percent.

In 2005, the city ended the Deferred Retirement Option Program, or DROP, for new employees. And both Sanders and City Attorney Michael Aguirre have tried unsuccessfully to eliminate the program altogether.

The program allows employees with five or fewer years left until retirement to keep working and collect a monthly pension payment based on their salary and years of service at the time they enter the program. The pension money is deposited into an account controlled by the pension system, which pays an 8 percent return no matter what is happening in the financial markets.

In exchange, employees freeze the salary that their pension calculation is based on the moment they enter DROP...

On Oct. 31, the pension deficit stood at $2.78 billion -- more than double what it was a year ago, according to Esuchanko...

Sunday, November 09, 2008

Does San Diego need two city attorneys? Aguirre to represent the people, and Goldsmith to represent officials?

I suggest that cities need two city attorneys--one to give honest, accurate legal advice, and the other to defend officials.

Voters want the city attorney to look out for them, and not just for elected officials. Shamefully, most elected officials want to keep the system in which the city attorney's job has been to help officials do whatever they want, and get away with it. Alternatively, the attorney tells the council what to do, and acts as a de facto city council without being elected.

Apparently San Diego needs both Mike Aguirre and Jan Goldsmith.

Wednesday, October 29, 2008

How many lawyers does it take to do an ethics training? Three--Leslie Devaney, Priscilla Dugard and Christina Cameron

In the case below, three lawyers from Stutz, Artiano Shinoff & Holtz were apparently needed to give a two-hour ethics training to Murrieta officials.

But Stutz partner Daniel Shinoff has found easier methods of training public employees.


MURRIETA: Ethics training opens eyes
Attorneys from the San Diego firm Stutz, Artiano, Shinoff and Holtz held an ethics training
October 28, 2008
By NELSY RODRIGUEZ

...Attorneys from the San Diego firm Stutz, Artiano, Shinoff and Holtz held an ethics training session for elected and appointed city officials dealing in public business. Members of the City Council and six commissions reviewed issues of transparency in government, reporting personal financial interests, handling public contracts and the misuse of public funds...

"The public's expectations of you are even higher than the law," Devaney told those in attendance. "And avoiding conflicts of interest is your responsibility."

[Blogger's note: This is actually not true. The public would be delighted if officials would simply obey the law. Devaney's problem is that she and her firm have spent so many years helping public entities get away with violating the law, that she has a distorted view of what the law is. The same is true for conflicts of interest, which Ms. Devaney apparently defines as anything that conflicts with her own interests.]

With regard to public meetings, Devaney said new restrictions on serial meetings limit how much discussion of public business can be done outside of a public meeting. If one commissioner e-mails another ... with the intent of getting a consensus, those commissioners will have violated a law that prevents city business from being conducted without the public's knowledge.

[Leslie Devaney's law firm orchestrated the PALMGATE scandal at MiraCosta College.]

..."It would look wrong," said attorney Christina Cameron, regarding financial favors for public officials. "If the public read about it in the paper, they would be sure that (you were) getting a better deal."

Regarding campaign contributions, current officials and even City Council candidates were warned of accepting contributions that might later be suspected of a quid pro quo exchange.

"During the campaign season, promises are going to be problematic, (even) when there is no smoking gun," said attorney Priscilla Dugard.

Murrieta officials have not always been on the right side of conflict of interest allegations. A former city councilman who had also been mayor pleaded guilty in 2007 to criminal counts of submitting a false document and conflict of interest. Jack van Haaster, who was ousted from the City Council in a 2005 recall election, admitted to failing to declare his financial interest in a road paving project when he voted on it.

Councilman Warnie Enochs was admonished by fellow council members in 2006 for helping his son on a contracting job on which Enochs had voted in favor. While Enochs said he did not benefit financially, his colleagues said his action was inappropriate for a public official...

Saturday, October 25, 2008

Psychology of elected officials: the Diva

Some say Sarah Palin is going rogue:


Link
CNN
Oct. 25, 2008

"...A second McCain source tells CNN [Palin] appears to be looking out for herself more than the McCain campaign.

"She is a diva. She takes no advice from anyone," said this McCain adviser. "She does not have any relationships of trust with any of us, her family or anyone else.
"Also, she is playing for her own future and sees herself as the next leader of the party. Remember: Divas trust only unto themselves as they see themselves as the beginning and end of all wisdom."

"A Palin associate defended her by saying she is "not good at process questions" and that her comments on Michigan and the robocalls were answers to process questions..."

Tuesday, October 21, 2008

SEDC's Regina Petty has written the best denial of a Public Records Act request I've ever seen

Regina Petty, attorney for the Southeast Economic Development Corporation, has written a heated, angry letter. I much prefer it to the cold, disinterested letters of refusal I have received from attorneys Daniel Shinoff and Diane Crosier when I was trying to get the invoices for Daniel Shinoff's bills to San Diego County Office of Education. (Yes, at one time Diane Crosier put Shinoff in charge of denying my requests for Shinoff's records!)

Here is Regina Petty's letter:


I Am Sorry, for You
Voice of San Diego
By Regina Petty
San Diego

Oct. 20, 2008

I am sorry when I must inform a person requesting records that the Public Records Act expressly exempts from disclosure privileged information.

[Blogger's note: You mean you wish you didn't have to come up with a bunch of bogus excuses when someone makes a legitimate public records request.]

I am sorry that voiceofsandiego.org was dissatisfied in July 2007 when it promptly received a summary of the amounts the Southeastern Economic Development paid to my firm for legal services in response to a Public Records Act request.

[Come on. You knew they'd be dissatisfied. You intentionally left out the information they wanted.]

I am sorry that I responded by agreeing to perform the task of redacting privileged and confidential information from multiple years of statements for legal services even though there is no legal authority requiring that I do so for this type of document.

[Right. You could have just copied the documents without redacting them.]

I am sorry that in 2007 no one from voiceofsandiego.org ever came to review the redacted statements for legal services which took some time to prepare.

[You say (below) that you couldn't find the documents recently. When did they get lost? Was there ever anything for VOSD to look at? How severe what the redactation job you did on the documents?]

I am sorry that voiceofsandiego.org's attention to its own Public Records Act requests unexpectedly vacillates from indifference to exclusive focus.

[What?!? You mean you thought they were going to let you off the hook, and then they didn't? Yes, I guess that would be a disappointment.]

I am sorry that when voiceofsandiego.org recently renewed its request for the records the SEDC staff was unable to immediately locate the documents from 2007 so that the redaction task had to be performed again.

[Yes. That's too bad.]

I am sorry that there were extra demands placed on my time in September due to the replacement of more than half of the board members of the SEDC.

[If you had given better legal advice, there wouldn't have been so many board members losing their positions.]

I am sorry that there were extra demands placed on my time in September because of the additional board and committee meetings that were held by the SEDC.

[See previous]

I am sorry my highest priority in September was attending to the needs of a Board of Directors managing a major organizational transition.

[Transition? You mean the people to whom you gave legal advice got caught carrying on questionable relationships with developers, and were forced out?]

I am sorry that my daughter's desire that I accompany her as she relocated to France was inconvenient for voiceofsandiego.org.

[I'm sure VOSD would have been perfectly happy if your secretary had simply copied all your invoices and turned them over while you were gone. But that would have been inconvenient for you, right?]

I am sorry that I shortchanged my daughter by delaying the trip to be present for the SEDC Board of Directors meeting on Sept. 24 and limiting the trip to return in time for another agency's board meeting on Oct.2...I am sorry that my presence was required at publicly noticed meetings of the SEDC and other agencies on Oct. 2, 9, 10, 13 and 14 so that Will Carless was unable to determine my whereabouts.

[Sorry, Ms. Petty. There's no way you will be able to make Will Carless the bad guy here. Your presence was required because of a scandal you helped create.]

I am sorry that Will Carless called me at my home on Oct. 9 while I was attending a publicly noticed meeting at the SEDC.

[See above.]

I am sorry that Will Carless has repeatedly falsely claimed that responses to Public Records Act requests were late.

[I'm a whole lot more likely to believe Will Carless than to believe Carolyn Smith's lawyer. He has no motivation to lie; you do.]

I am sorry that Will Carless is a bully.

[This sounds like blaming the victim. You wanted to violate the California Public Records Act, so you call Will Carless a bully for demanding that you obey the law! You sound just like Daniel Shinoff.]

I am sorry that Will Carless did not notice that his abusive conduct caused me to stop taking or returning his telephone calls in early August.

[Or did you stop taking his calls because you wanted to hide your billing records?]

I am sorry that Will Carless cannot discern any real news to use for his blog in light of the global financial, political and social issues of the day.

[The SEDC fell apart due to the efforts of individuals to enrich themself by abusing the system. Isn't it newsworthy to find out how much its lawyer was being paid? The global financial crisis seems to be the result of the efforts of individuals to enrich themself by abusing the system. Credit Default Swaps were invented because individual investors wanted to get rich faster, and the problem was that these instuments hid the identity of the seller. Why didn't the SEC jump on this problem? Probably for the same reason that you, Regina Petty, didn't jump on the problems at SEDC. My guess is that individual lawyers at the SEC thought they could help out their greedy investor friends and get away with it. Individual public entity lawyers at both the SEC and the SEDC are an appropriate subject of investigative journalists.]

(End of Regina Petty's letter and of my responses.]

VOSD Editor's Note: Will Carless has doggedly, yet professionally, pursued open records and answers from an agency that has been extremely reluctant to provide either. While this can sometimes be a tense effort, we stand behind his work.

Thursday, October 09, 2008

Many Chula Vistans--including some Republicans--aren't happy with Cheryl Cox

Voice of San Diego
A Disillusioned Former Cox Supporter
by SCOTT LEWIS
October 7, 2008

Yes, there is a political war in Chula Vista. Steve Castaneda may be running for re-election to the City Council this November, but his broader sights are set on the Mayor's Office. Mayor Cheryl Cox is on the other side, summoning as much charisma as she can muster to fight this thing out. She doesn't seem to be winning.

One reader, Susan Watry, has already responded to my requests for perspective on it.

"When we supported Cheryl Cox in 2006 we hoped that adults were finally going to be in charge at city hall. Unfortunately we got a rigid authoritarian who has to be in control of everything, who has no ability to compromise and who considers anyone who disagrees with her the e-n-e-m-y. She swooped in expecting to run the city like she ran the Chula Vista Elementary School District -- with a heavy hand and little public input.

"She immediately chose Councilman Jerry Rindone to form her legislative committee. She has even surprised her own council with things these two hatched up behind closed doors.

"She has been out to get Councilman Castaneda for two years. She has strong ties to the Lincoln Club who spent heavily in the June primary in an effort to defeat Castaneda. Just this week I was given a letter she and Greg Cox are sending out asking people to help elect Scott Vinson who is trying to unseat Castaneda. Don't look for harmony anytime soon."





...Comments on Voice of San Diego regarding above article:

Editor´s Choice
During her campaign, Cheryl Cox repeated over and over that she was the candidate that would restore trust between the citizens of Chula Vista and their mayor. I heard her over and over saying this. I agreed. I voted for her. Since her election, I have seen little of what I consider attempts to restore trust. On the contrary, the mayor has worked behind closed doors, corresponded by emails with devlopers out of sight of the public, and proposed new (phone) taxes, calling them tax reductions. None of these were presented in a manner that would make a citizen of Chula Vista feel they were included and wanted them to "trust" their city officials. I am disappointed. My trust has not been restored.

Posted by Sam Longanecker
October 7, 2008 10:44 pm

I agree with the other three completely. This is the Mission Statement of the Chula Vista City Council and Mayor Cox totally disregards it on every point. City Council Mission Statement The City of Chula Vista is committed to build and nurture a progressive and cohesive community which values our diversity, respects our citizens, honors our legacy, and embraces the opportunities of the future. It is horrible how big corporations with money to throw around are the only ones considered worthy of doing business in the city and get whatever they want. We need an elected City Attorney who will make sure the laws and policies of the city are interpreted equally and fairly to protect the existing residents and businesses from atrocities such as the MMC Energy proposed large heavy industrial peaker plant a mere 350 feet from homes and 1300 feet from a Headstart and school!

Posted by Theresa Acerro
October 8, 2008 8:34 am

Poor Cheryl. She won the mayors job just as the bottom fell out of real estate development and the city's tax base, which is founded on unlimited sprawl development, is going to hell. And all she does is play dirty George Bush type republican politics, instead of rethinking the city's revenue sources and coming up with a more balanced approach to maintaining a sustainable city. Chula Vista deserves better leadership than she can provide.

Posted by Watcher
October 8, 2008 11:09 am

Cheryl Cox has spent too much time trying to appease her friends and not enough time trying to understand the city she lives in. She laments that she can't get a 8 dollar beer in CV. She will show you all the postcards of the Gaylord facilities in other cities, yet she probably couldn't tell you she stepped foot outside the facilities, which is excactly the problem for the businesses on Third Avenue. If this council election is a referendum is on Cox, then we can expect to see Steve and Pamela. I bet the Supervisor is disappointed that the Cox name he helped build in the South Bay has been sullied by such a divisive and ineffective leader like Cheryl.

Posted by Third Avenue Al
October 8, 2008 11:35 pm

I’m a life-long Republican and I must say that I’m embarrassed to be in the same Party as Cox. While I did vote for her, I will never do so again. She bungled the Gaylord mess, the City Manager, and bungles almost everything that she touches. We would be much better off if she just stayed home and let the city mail her salary.

Posted by Dean
October 9, 2008 6:58 am




This Blogger's comment:
My guess is that Greg Cox taught his wife everything she knows about politics, and also introduced her to David Malcolm, Bonnie Dumanis, Patrick O'Toole and others whose efforts on her behalf ended up exposing the ethics-free environment in which Coxes operate. Greg has simply been luckier than Cheryl, not better.

Wednesday, October 08, 2008

Cheryl Cox didn't even bother to pretend to oppose political prosecutions

Peter O'Toole and Bonnie Dumanis seemed to have opened the Public Integrity Unit for the sole benefit of Cheryl Cox, going after Cox's opponents for the flimsiest of reasons. Money spend on defending public employees has never bothered Cheryl Cox. She spent huge amounts at Chula Vista Elementary School District.

Of course, at CVESD Cheryl was in charge of deciding who would be attacked, too. She was sort of a two-for-one deal: Bonnie Dumanis and Cheryl Cox wrapped up in one package. Castle Park Elementary still hasn't recovered from Cox's illegal actions and her expensive payments to lawyer to help her get away with it.


San Diego Union Tribune
City won't ask DA to reimburse legal bills
By Tanya Sierra
October 8, 2008

CHULA VISTA – Chula Vista officials won't ask the district attorney to reimburse the city $609,000 for legal bills one councilman said are from a “fishing expedition” that caught nothing.

The motion to ask for reimbursement failed on a 2-2 vote, after a heated discussion at last night's City Council meeting. Councilman John McCann was absent. Mayor Cheryl Cox and Councilman Jerry Rindone voted against requesting a refund, and Councilmen Rudy Ramirez and Steve Castaneda voted for it.

Reached Monday, McCann – who did not indicate he would be absent – said he did not know how he was going to vote, and he was still waiting for legal advice.

In the last two years, Chula Vista has spent more than $600,000 defending council members questioned or prosecuted by the district attorney's Public Integrity Unit.

Ramirez made the initial request last month. Over the course of several meetings, some residents criticized the city for agreeing to pay $194,000 for Castaneda's legal bills, which he incurred for his defense during a perjury trial in April. Castaneda was found not guilty on six counts and a mistrial was declared on four others...

Last month, Ramirez asked for the council's support in requesting reimbursement for legal bills. He said District Attorney Bonnie Dumanis has unfairly persecuted Chula Vista with investigations that have led nowhere.

In an interview Ramirez said: “When I go fishing, I pay for the fishing expedition.”...

Friday, October 03, 2008

Chula Vista Peaker Power Plant Protest October 2, 2008


The young man in the middle drew the colorful posters his family is holding.








The Russell Coronado family



Meanwhile, inside the council chambers, the hearing was taking place. The crowd outside could be heard now and then.




Protest planner Hugo Ivan Salazar at the hearing.

After dark, a crowd waited outside while the CEC (California Energy Commission)hearing went on.







Diana Vera spoke to the crowd.

Wednesday, October 01, 2008

Why do businesses give shoo-in Greg Cox such big campaign contributions?

The San Diego Reader's Susan Luzzaro has some questions, and some possible answers, about San Diego County Supervisor Greg Cox's campaign donors.San Diego Reader
Big War Chest, No War
By Susan Luzzaro
May 21, 2008

"...Greg Cox has been a San Diego County supervisor since 1995, and he will be a candidate again on the June 3 ballot. He represents District 1, the southern part of the county, which includes Chula Vista, where his wife is mayor, and Otay Mesa. Cox’s opponent, Howard Johnson, says his campaign has only $20,000.

"The total amount Cox has collected for his war chest, $280,000, is remarkable because it is so unnecessary. Why are people donating sizable amounts to a shoo-in? A look at Cox’s campaign donations between July 2007 and March 2008 is equally remarkable for what they reveal about what’s going on in his district.

"...In the second half of 2007, employees of San Diego Gas & Electric and its parent company, Sempra Energy, gave Greg Cox $6150. SDG&E has been pushing hard to get the Sunrise Powerlink project approved. Supervisor Cox and Mayor Cox have given strong public support to the controversial project.

"Worth mentioning is that the Coxes have investments in three companies located on Otay Mesa: Medtronic Inc., Copart Inc., and Ethos Environmental. Disgraced former port commissioner David Malcolm is a major stockholder in Ethos Environmental.

"Do campaign contributions affect the future? Ask the Coxes. A February 1995 Union-Tribune article reported, “In the six weeks before Greg Cox was appointed to the Board of Supervisors, he and his wife made campaign contributions to three of the four county supervisors who would select him to the coveted position.” Dianne Jacob, the one supervisor who did not receive contributions, said she would not have “accepted money under circumstances like that.… It carries the wrong message.”