Category Archives: orange county
On The City Council Agenda, May 21, 2013
The city apparently fixed the video problem they had with the May 7th meeting and the video is finally up for viewing. We’ll let you know if we find anything interesting that we haven’t already reported on. We are wondering if the issues had to do with their recent changeover to allow direct downloading of the video, something we applaud as a step toward a more open government.
May 21st could be a busy day for the city council. The Closed Session, which begins at 5:30 pm, makes no mention of labor contracts. Negotiations have been in progress for the past couple of weeks. Most of the employees in the city are represented by the Orange County Employees Association. The grapevine tells me the city may be looking for increased pension payments as they are in a hurry to catch up the unfunded liability. City employees belong to CalPERS, not the County pension system, OCERS. Too bad. OCERS is doing quite well at this time, even though the OC Board of Supervisors would like the voters to think otherwise.
Most of the Closed Session will discuss property negotiations on the MCAS base. The fact they are discussing terms is a good sign the development of the base is finally picking up. As we said before, the best thing the last city council could do was to make the city its own master developer for purposes of developing and selling the property. It seems when that occurred, development picked up drastically.
The Open Session begins with presentations to Hewes Kids, OCFA Fire Chief Keith Richter and the National Student Leadership Council of SADD. Chief Richter was recently awarded the Fire Chief of the Year Award by the Metropolitan “Metro” Fire Chiefs Association. Undoubtedly, the city council will bestow a certificate or two on him as well.
Two items on the Consent Calendar deserve discussion. The first is the contract with the Orange County District Attorney to prosecute violations of city code. The DA provides prosecution for the city for any violation of state law without cost (the people vs. etc. etc…). Violations of city ordinances, on the other hand, must either be handled by the city attorney or the district attorney under contract. Now, I could really slam the ineptness of the city attorney here but his law firms expertise is in government not criminal law. So, he is off the hook.
The DA has proposed a contract with a reasonable rate increase ($150 p/hr Attorney & ($84 p/hr Clerical) that we doubt the city could find elsewhere. The indication is the OCDA’s services are rarely needed and the contract is based on use rather than time. It is interesting to note the burden of deciding prosecution remains with the DA rather than the city. This is the same as it would be for any felony prosecution.
Item 4, Asset Capitalization Threshold, should also be pulled for discussion. There is a (very) brief discussion on the issue in the staff report that outlines the issue. The economy has outgrown the previous amounts used for capitalization of short and long term assets. City staff are proposing new thresholds but, we question how they came up with those numbers. In fact, judging the economy from a consumer standpoint, we wonder if the new thresholds may be too low considering the skyrocketing cost of infrastructure constructions nowadays.
The final item on the consent calendar is the Quarterly Investment Report. Since the passing of George Jeffries, responsibility for investment of city funds has been delegated to Finance Director, Pamela Arends-King. We’ll reserve judgment as this is her first time out. Suffice it to say the funds are intact.
While most of the Regular Calendar consists of Second Readings of various ordinances affecting MCAS property, one item stands out as a bit of good news for homeowners.
The Approval of Issuance of Special Tax Refunding Bonds should be good news for some homeowners in the Tustin Legacy. About 563 homeowners will see their Mello-Roos lowered by a tax refunding bond. If you are a glutton for punishment, read the 232 page staff report that details the background and refunding of the money. Of course, all of this assumes the economy will continue to improve, a hedgy bet at best.
A second reading will also be heard on amending an ordinance to allow city commissioners to remain on their commissions until such time as they are elected to city office or replaced by the city council. This change will not only bring the city in line with most other cities policies in Orange County, it actually makes sense. One item of contention at the March meeting when this was first discussed was commissioner compensation. If we had to guess, we would say the current city council is not happy with the way the previous council screwed them in regard to compensation.
When Jerry Amante first proposed the voters have a say in compensation, it was clearly a tactic to hurt Councilwoman Deborah Gavello, whom he considered his arch nemesis. That he could care less about the city and future councilmembers, who largely foot the bill for their own expenses, was obvious. By shaming them into compliance, he convinced John Nielsen and Al Murray, both of whom were on the council at the time, into voting to place an ill-conceived ballot measure before the voters that eliminated compensation for city councilmembers. This has placed an undue financial burden on all of them and could hurt the city when it comes time to find otherwise qualified candidates for office.
Seeing the damage it has done so far has apparently caused the Gang of Four to reconsider compensation and not do the same thing to city commissioners. This makes the city commission seats, as influential as they are, a more palatable choice for those who choose to serve the city in a volunteer basis.
The final item, as usual, is the Legislative Report. Staff are recommending support for several bills in Sacramento.
The first, AB229, is specifically geared toward creating tax districts and, in Tustin’s case, on former military base property. Essentially, when redevelopment agencies went away last year, it left Tustin in limbo regarding financing of infrastructure on base property. They joined other government entities who had former base properties in legislation that would allow them to continue to operate similarly structured enterprises. This is, of course, an end run around the demise of redevelopment agencies and is actually RDAs on steroids. We have to wonder why Democrats continue to give gifts of bad public policy to the Republicans.
We do agree with the city’s opposition to AB667 which would require an Economic Impact Report in “economic assistance areas”. This is essentially a “rent control” for businesses that would require a superstore, such as Wal-mart, to study the economic impact on small businesses in a city before they would be allowed to build a superstore. On its face this is protectionism at its worst and should be defeated. What makes this bill even more ominous is the fact the city could be allowed to conduct the so-called study itself, leaving business development even more prone to corruption than it already is. The fact is, there are already enough impediments to business, big and small, that no more should be required by law. Two previous bills like 667 were vetoed by the governor. Support and opposition are typically aligned with unions and business.
Likewise, we agree with the city in their opposition to SB323 which would exclude tax exemptions for private non-profit organizations whose membership requirements exclude certain classes of citizens. SB323 is clearly aimed at the Boy Scouts who continue to exclude gays from their organization. In doing so, the author of the bill, Assembly Speaker John Perez, who is openly gay, is willing to chance the disbanding of other organizations that cannot meet the strict definitions of membership in their organization. This is nanny state government at its worst. Better the BSA debate should remain in the public opinion arena rather than rely on implementation of socialist laws that serve a narrow purpose.
That’s it for the week. If you attend the meeting this week, drop me a line and give me your thoughts.
Budget Workshop Slated for Orange County May 24, 2013
Anymore, it is not just the city of Tustin we have to worry about. With the recent failed court case, Orange County may be facing some serious challenges to its budget next year. The annual budget workshop is coming to town 10 am May 24th at the Board of Supervisors Hearing Room in the Hall of Administration, 333 W. Santa Ana Blvd., Santa Ana, California. This will be followed June 11th & 12th for Budget Hearings and the subsequent Budget Adoption on June 25th.
The official press release for the budget hearing process states:
You are invited to the 18th annual County of Orange Budget Workshop. Community members are encouraged to learn about the County’s budget process and anticipated issues. The County’s Chief Financial Officer and County staff will discuss:
- 2013-2014 Budget Overview
- Affordable Care Act
Dr. Michael Riley Director, Social Services Agency
This is your chance, as a resident, to have some input into the budget process. As we said, given this years bad news on the property tax take back by the state, many program and agency funding schemes may be up in the air. While no one wants to see lifeline programs shut down, they are often the first to go. That could have a drastic effect on the fragile economic recovery Orange County is seeing. The budget workshops are there for citizens to express their views on what available funds should provide for the county’s citizens.
The Ressurection (sort of)
The other day, we were riding down El Camino Real when we noticed construction workers walking around Jabberwocky… well, sort of. There wasn’t much of it to walk around since, sometime in the recent past, they tore down nearly the entire building, leaving only the facade up.
It’s unfortunate that the building, one of the oldest in Tustin, was burned so badly back in 2011 that many thought it would be lost completely to the annals of history and the collective memories of our local historians. But, as luck would have it, the building, originally a doctor’s office built around 1885, was saved from the wrecking crew. Well, some of it, anyway.
As you can see from the pictures, the entire building, save for the facade has been torn down. This was considered the safest way of preserving a piece of Tustin history while allowing the owners to also build a new up-to-code building that woud pass muster and Elizabeth Binsack’s code-busters. Architecural work was completed last year by local historic achitect, Nathan Menard. Menard is a well-known designer (or redesigner) of both historic buildings and newer buildings where the historical aspect of an area is important. His plans for the Jabberwocky continue that effort.
When I approached the bulding, I almost laughed out loud. This is the classic facade of the old western town with the unadorned building behind it. There isn’t much right at the moment. The construction is focusing on foundation right now and it gives one the idea of how large the building will be (it isn’t). I would say not much more than the old building itself although Nathan assured me it will be adequate for the owner’s needs.
And, what will the owner do? As far as I know, plans are to reopen the Vintage Lady, the store that was located there at the time of the fire. The owner has rented the store almost continuously to others since 1985 and lives in the home to the rear. The store, which has been determined to be historically significant due to the rare construction type, will probably never make it to the National Register. But, thanks to the owner’s perseverance and the help of Menarch Architecture, Tustin will continue to enjoy the Jabberwocky.
The Board of Supervisors Doesn’t Get It…..Again
Every time I think of the OC Board of Supervisors, I’m reminded of Mel Brooks’ “Blazing Saddles”. No, not the campfire scene, although I can understand why you would go there. I’m talking about the scene where Governor William J. Le Petomane is meeting with his advisors and insists everyone be as incensed as he is over the corruption in fictional Rock Ridge. Everyone around the table starts saying “harumph, harumph…”. That’s the reaction of the Supervisors as they received the bad news that most everyone else in Orange County already knew.
Wednesday, Superior Court Judge Robert Moss ruled against the county saying they illegally withheld more than $73 million in property taxes from the state. To make matters worse, the figure now looms at $140 million by the time this fiscal year is over. The Voice of OC did a pretty good job of outlining the problem in layman’s terms.
When the county financed its billion-dollar bankruptcy in 1995, state officials allowed them to send a portion of their vehicle license fees directly to bond holders. But in 2007, when the county refinanced its debt, the legislative authorization for the special license fees was not included.
Despite warnings that the authorization should be quickly reestablished, county legislative leaders, lobbyists or staff did not act. The intercept, as its known, was not addressed in any subsequent county legislative platform or by the county’s main lobbyist, Platinum Advisors.
In 2011, Brown’s budget staff discovered the omission and took back the money, prompting an intense reaction from county leaders. Assemblyman Jose Solorio sponsored last-minute legislation to fix the situation for the county, but it failed to make it through both houses of the Legislature.
You read right. The county ignored the problem even when the gaff was first discovered and then, when the state demanded the money to balance their own budget, county Democratic Assemblyman Jose Solorio tried to fix it with last-minute legislation. But, Sacramento Democrats took the opportunity to beat down one of the few Republican strongholds by refusing to pass the legislation in time. Without the legislation, loss of the money was a sure thing.
Nonetheless, the Board of Supervisors convinced Auditor David Sundstrom to withhold payment of property taxes from the state. The state promptly sued the county and the writing was on the wall. As with previous pension lawsuits involving the deputy sheriffs union and the retirement system, the Gang of Five ignored the obvious and argued that the intent to keep the status quo had always been there and so, they must be right (right about now, I am hearing John Moorlach jumping up and down while screaming epithets at Jerry Brown).
From the outset, nearly everyone in the county has warned them the court battle would be uphill. In reality, I don’t think anyone wanted to tell the county it had a zero chance but, in truth, that is what they had.
In a video briefing to public union employees, Orange County Employees Association General Manager, Nick Berardino, said, “It was, once again, county executives falling asleep at the switch,as they did during the bankruptcy, when they forgot to include the $73 million dollars state subsidy when they refinanced the bankruptcy funds.” Berardino did agree that the state is treating the county unfairly by requiring the repayment but also said the county did not do its job in protecting the funds to begin with. Berardino lamented that Supervisors are already ringing the layoff bell and laying the responsibility on the backs of the public employees to balance the budget. “The county did the same thing when it declared bankruptcy in 1994.”
Berardino is not the only one to publicly admonish the county for its lack of diligence. In an Orange County Register article published May 9th, Andrew Galvin alleges the local community colleges pleaded with the county in 2011 not to withhold the funds from the state. The money grab, according to them, would result in a serious shortfall of funds going to community colleges in the area. When the county continued the grab, the community colleges joined the state in the lawsuit.
So, when will the county ever get it right? If this were a trust owned by a private family, they would have fired their lawyers for giving them bad advice long ago. In the case of the Board of Supervisors, they have been led astray time after time and not only by county counsel, but attorney-come-chief-of-staff Mario Mainero as well as a plethora of hired gun law offices who, oftentimes while giving good advice, have been unsuccessful in turning the opinion of the Gang of Five.
I have no idea how much money has been spent, so far, by the Board of Supervisors on this debacle. Any amount, however, is too much when one considers how tight the budget is now. Unfortunately for the citizens of Orange County, the Gang of Five may be planning another play as they appeal the ruling to a higher court. In the best case scenario for them, the judge would delay the transfer of funds until the appeals court sides with the trial court. That would be a temporary fix at best. Eventually, the money would have to be repaid. What the Supervisors might want to look at is negotiating a payment schedule. Given the animosity the OC GOP has garnered in recent years in Sacramento, our Democrat governor may turn a deaf ear. Better get that checkbook out, John.
