Trail to Nowhere© Hits Embarrassing Snag

What a view!

On Tuesday the seemingly inevitable rubber stamp of the Trail to Nowhere© contract award didn’t happen. That’s thanks to the presentation of facts that were deliberately being obscured by City Staff in an incompetent agenda report.

Not Joshua…

Public speaker Joshua Ferguson raised the issue of the increased City cost that FFFF raised, here; and noted that the phrase “increase in scope” was marvelously uninformative.

When the “Consent Calendar” finally rolled around, Councilman Nick Dunlap, to his credit, pulled the item for discussion. Once again Mr. Ferguson unloaded on the lack of transparency, and the failure to describe why the City cost had doubled. He also correctly observed the likelihood of more and more costs as the project was being built. Fullerton Engineer has already expertly shared the likelihood of that, here, when he predicted an eventual City borne cost increase of $800,000. At $630,000 we’re getting there real fast, and a shovel hasn’t even broken the contaminated soil yet.

Then Dunlap took over.

Good questions, but getting good answers?

He was demonstrably upset that the item was on the Consent Calendar in the first place, and noted, correctly, that the additional money had to come from somewhere else. Dunlap referred to a transfer from the General Fund; that’s not what the staff report said. The staff report referred to a Park Dwelling Fund transfer, as FFFF has noted. It really doesn’t matter. We already saw that next years CIP only identified a few Park Dwelling Fund projects for a total of $250,000. So where is the additional $300,000 coming from, and what is it displacing? Excellent questions.

Have some milque with your toast…

City Manager Eric Levitt volunteered to answer Dunlap’s questions in “two minutes,” a promise that would almost certainly never have happened in two minutes or with coherency. To his credit, Dunlap smelled a wagon load of bullshit coming down the road, and demanded a continuance.

Advocating better health. For the public.

A few of the usual suspects popped up to demand immediate approval of the Trail to Nowhere© construction contract. Poor Egleth Nuncio, claimed her health had been impaired advocating for the trail and picking up broken glass on the right-of-way, the latter a claim so preposterous that I’m surprised nobody burst out laughing. But maybe it happened during the infamous Skaksia Kennedy photo op.

Put your money in the bucket over there!

But trees, right? Before waddling off in a huff, she promised a vast turn out on May 20th, which should be a fun rehash of uninformed nonsense as her overlord Ahmad Zahra mobilizes another cry-and-cry session from Fullerton Boohoo.

Finally the Council voted 3-2 to continue the item until May 20th meeting. Once again staff misled the Council by implying that a May 20th meeting was needed to secure the bid within the required 60 day window to hold a public bid. No one thought to inquire about that, because the bid took place on April 22, meaning that there’s another whole month after May 20th in which the contractor has to honor his bid. Zahra and Charles voted no, neither giving a rat’s ass about the escalating cost of this boondoggle.

Of course the Friends know that the real reason for the desperation of the May 20th date; it’s because the City is already so far behind in its Trail to Nowhere© project milestone obligations that the completion date is already impossible to make, and that not even the State of California can look the other way forever.

Boutique Bungling Bears Bounty

And by “bears bounty,” I mean the boutique hotel scam pulls Fullerton into ever deeper shitwater.

By now we all know how stupid, inept, and problematic the so-called “Tracks at Fullerton” has been.

Starting out as a boutique hotel, a dumb idea took on a bloated, lumbering life of its own and has been kept alive through bureaucratic inertia and predictable metastasis.

Hostert

Now there’s a new twist. Word on the street is that the family of the guy with the original brainstorm, Craig Hostert of Westpark Development, is suing the current “developers” TA Partners. You may recall that Hostert is dead. His relatives seem to think that his money men, Johnny Lu and Larry Liu of TA Partners, pushed Craig out of his interest in the project. Johnny and Larry are said to be counter suing.

That can’t be good…

Parenthetically, I might add that Johnny and Larry are no strangers to the legal system, having left a trail of bankruptcies, foreclosures, and fraud in their wake. Fullerton being Fullerton.

Enhanced with genuine brick veneer!

I don’t know what the lawsuits might entail, legally, but due to the incompetent actions of Councilmembers Bruce Whitaker, Shana Charles, and Ahmad Zahra in upzoning the property, there could be a lot at stake. Remember, the City sold Westpark/TA almost two acres of land for $1.4 million (less demolition costs) while making it worth ten times that amount by abusing the allowable density in the Transportation Center Specific Plan.

Right now the City Hall silence remains deafening. We do know the council met in closed session about this awhile back, and still the public remains in the dark. Why hasn’t the City kicked Johnny Lu and Larry Liu to the curb long ago? They were supposed to have performed all sorts of stuff by now. Here are Johnny and Larry’s milestone obligations per the Development and Disposition Agreement, approved at the end of December, 2022.

Read. Weep.

Westpark/TA Partners are clearly in default. Plans submission was supposed to take place in December 2023 – fifteen months ago. Permits were required to be obtained fourteen months ago. Grading was supposed to start eleven months ago. Above ground construction was supposed to start by the end of last October – five months ago. See a pattern?

For some reason TA Partners was given some wiggle room in the actual verbiage of the contract for plans submittal – 240 days which would have been February of 2024, still thirteen months ago, and still a massive default.

Was there an “Unavoidable Delay?” Who gets to know? Why would the City fail to exercise its right retake the property? If you see a councilperson, please be sure to ask. Of course you won’t get an answer as the whole thing is shrouded in Closed Session secrecy. Without any action on the part of Fullerton, the two fly-by-nighters are still in possession of entitlements worth a pile ‘o cash – enough to excite the pecuniary envy of Mr. Hostert’s heirs and assigns.

I get the strange feeling that this latest legal entanglement might have repercussions for any case Fullerton might have in getting rid of Johnny and Larry. It shouldn’t, but it might be cause for staff to continue to string this thing out since it has been such a lucrative toy for Fullerton’s crack “economic development” employees.

Let the BooHooing Begin

Yes, it’s that time of every year comes up when the Fullerton City Council chooses one of its own to be Mayor for the upcoming year. Another is chosen to be Mayor Pro Tem, which is Latin-ish for back up guy.

Nurse Jamie still looking good…

This will occur on Tuesday after newcomer Jamie Valencia is sworn in to replace Bruce Whitaker. The jobs are basically ceremonial, but the Mayor gets to run the meetings.

For the past several years the Council majority of Fred Jung, Nick Dunlap, and Bruce Whitaker have chosen one of their number to hold these offices and have deliberately excluded “Dr.” Ahmad Zahra. They have offered no explanation for this exclusion, which is too bad.

Zahra-Busted
Time to come clean…..

Zahra and his claque have attributed this exclusion to discrimination against his (dubious) Muslim beliefs or alternatively, his gayness – the two attributes that he relies on to promote his unique “brand.” What the public doesn’t get, but that council watchers know to be true is that those three really don’t like Zahra. Why? Maybe because of his public pontifications against them, and his even more egregious behavior behind the scenes that sometimes becomes hysterical, and one time led him to file a false police report against Fred Jung. We are aware of Zahra attempting to smear his colleagues via OC political blogs.

The Council majority is well-aware of Zahra’s penchant for self-promotion and camera hogging, even going so far as to leave a council meeting for a photo op.

Of course there are other good reasons to exclude Zahra, reasons that people are too polite to express, Fullerton being Fullerton. Like Zahra worming his way into the USA via marriage fraud – to a woman. Or his shifting biography, or his blatant plagiarism while pretending to be a water expert. Then there’s his assault and battery case, safely sealed now, in which he claims, fraudulently, that he was exonerated. Lying seems to be Zahra’s modus vivendi.

It turns out that there is a policy suggesting that everybody gets a chance to put “Mayor” in front of their name. Policy No. 226 in the Policy and Procedures Manual spells it out. The problem is that a policy is not an obligation, especially for those who didn’t cook it up in the first place. But this is what Fullerton BooHoo rests its confidence on year after year, as they turn up in their numbers to promote their darling, Zahra.

What will happen Tuesday? Will Valencia go with Jung and Dunlap and keep Zahra and his acolyte Shana Charles from being Fullerton’s figureheads?

Let’s hope so.

Other People’s Money – The Silly F

It’s axiomatic that when government agencies get money from some external source they often display a casual attitude toward spending it intelligently. Thus we get boondoggles like the infamous Trail to Nowhere, paid for mostly by a State grant.

The latest example of this is an $800,000 grant handed to Fullerton by Caltrans meant to improve transit centers. Here’s the staff report intro:

BACKGROUND AND DISCUSSION
The City received funding to enhance and beautify areas in and around the Fullerton
Transportation Center (FTC) through a competitive grant application process. The City
used the grant to work with a consultant to establish a downtown brand and wayfinding
program to assist mass transit users navigate the downtown area and improve
visitation. The FTC is one of the higher ridership stations in the region serving over
400,000 riders annually. The project would capitalize on visitors using both Amtrak and
Metrolink services.

At the last council meeting Community and Economic Development Director Sunayana Thomas and ED underling, Taylor Samuelson presented the fruits of all their labor so far in their effort to expend the Caltrans largesse.

And what they came up with is mostly just comical. And unnecessary.

It seems that our staff thinks the the most important way to “enhance” the FTC is by installing news signs. But of course “signs” is far too simple a concept, which instead is called “wayfinding,” a term implying that people are just too stupid to know where they’re going while “navigating.” But of course we know this whole thing is just make work for our crack “economic development” team who don’t develop anything except our pension obligation to them.

Of course a sign is inextricably tied to the notion of “branding,” an advertising phrase co-opted by bureaucrats pretending they have something to sell. And boy do they think they can “capitalize” on visitors. Why branding downtown Fullerton has anything to do with Caltrans is beyond me, but I leave that to greater minds to ponder.

Here are some branding ideas displayed at the council meeting.

Legendary music history? Local charm? A carnation? Botanical attributes? Modern and timeless theme? WT everlasting F? We paid somebody for this nonsense?

And, of course, new signs, repeating the theme, just in case you didn’t get it the first time.

Naturally, the “brand” looks outdated even before it’s installed on the signage, and we can be sure that in less than ten years the reigning economic development experts will be calling for a new brand, the old being so embarrassing. But in the meantime, fear not. The signs will be printed on “retroflective” vinyl attached to rigid aluminum panels.

The funniest idea of all is the notion of a “gantry” sign spanning Harbor Boulevard, welcoming people to downtown Fullerton.

Superfluous gantry sign

Of course there already is a sign on the old UP bridge doing just that a few hundred feet to the south:

And how much is this nonsense going to cost the taxpayers of California? Check out the budget:

That’s $322,000, give or take, if you count thirty-one grand for some sort of mural. That’s a whopping 40% of the entire grant that is supposed to freshen up the Fullerton Transportation Center.

When you see this sort of circle wank, you really have to wonder if there is anybody providing any sort of adult supervision in City Hall when you look at footling crap like this.

Bungling Boutique Boondoggle Blunders

Some folks have been asking about the fate of the idiotic “boutique” hotel project that had morphed into a hideously overbuilt hotel/apartment hippogriff that is twice the allowable density permitted per the City’s own Transportation Center Specific Plan. Of course the project was never contemplated at all in the Specific Plan, so who cares, right? Fullerton being Fullerton.

In an act of utter incompetence the City actually rushed the approval to transfer of title to the land, before the deal had received final approval. Then they gave it away the land for pennies on the dollar.

Friends may recall our last October post in which we discovered that the new “developer,” one Johnny Lu of TA Westpark LLC, was way upside down on loans he had somehow leveraged on apartment blocks in Irvine and was in default.

You may also recall that Lu started shifting the property to different corporations, the first of which, a Delaware corporation, was non-existent. And just for grins, Mr. Lu changed the property description, too, when he later deeded it back to his California Corporation.

Anyhow, it looks like Johnny has finally created and recorded the appropriately named Delaware corporation in March – only two years too late, but, hey, not bad for Fullerton, right?

There has been nothing but radio silence from City Hall as to the status of Mr. Lu and whether he has met any of the stipulated deadlines in the Development and Disposition Agreement, but as we have learned in the case of the Florentine/Marovich sidewalk heist, contractual obligations mean nothing when the “I Can’t Believe It’s a Law Firm” of Jones & Mayer is your City Attorney. Recently, cluelessly verbose Shana Charles indicated that the project was still alive and well. She didn’t mention Mr. Lu’s financial embarrassment, but then nobody else has, either.

And now for some sadly interesting news. It turns out the original Founding Father of the boutique hotel concept, Craig Hostert of West Park Development – the guy who sold the idea to Jennifer Fitzgerald, Jan Flory, Jesus Quirk Silva, Ahmad Zahra, Bruce Whitaker, et. al. – died in late May.

Hostert

Poor guy. He went to his Reward after getting pushed out of his own scheme, and sticking us with the appalling, metastasized mess the concept has predictably morphed into; showing that once again, no bad idea goes unappreciated in downtown Fullerton. Being Fullerton, of course.

Revenue Enhancement

M. Eric Levitt. Will he save us from ourselves?

It seems like every few years Fullerton City Councils are presented by the bureaucracy with a new “fiscal cliff”: It’s done slowly, tentatively, and then with an ever-increasing tone of persuasion, the argument for “revenue enhancement” unfolds.

Revenue enhancement means taxes or debt – one way or another. And so it is in 2024.

With time running out to put a tax increase on the November ballot, the urgency from “staff” is getting more direct. Time has run out for soft-sell concepts like phony push polls of unwitting citizens. At Tuesday’s council meeting our esteemed City Manager is presenting ideas for raising money.

Well, it might work…but, then again…

TOT Tax. What is a TOT tax? Transient Occupancy Tax is a tax levied on visitors who stay in Fullerton hotels. The staff report tells us that several million can be raised with a slight increase and that hopefully we will remain competitive because we are so close to the Anaheim “Resort.” No on can prove this one way or another, but it seems like becoming comparatively less competitive is a poor way of raising revenue. The positive thing about a TOT increase, says the staff report, is that Fullerton taxpayers won’t be affected (unless, of course the concept turns out to be a money loser).

Sales tax. We have already seen the sales pitch on how a general sales tax only needs 50%+1 to pass. We are told that a “1%” increase (from 7.75 to 8.75) on sales tax is being pursued by cities up and down California, etc, etc. Of course they think we’re too dumb to know that this isn’t a 1% increase, but a 13% increase. As with a TOT increase, it’s hard to see how becoming comparatively less competitive is going to make money. The sales tax issue seems DOA. 4 votes are needed to put this on the ballot and Whitaker and Dunlap aren’t going for that.

POBs. And then we see the concept of Pension Obligation Bonds, in which bond revenues are deposited with CalPERS to buy down the actuarial unfunded liability. The idea is that the interest rate on the bonds is lower than the return CalPERS will give us and the difference is all gravy. This idea was floated back in 2021 by then Interim City Manager, Jeff Collier. FFFF covered the proposal, here. One upside is that this scheme is not constrained by the usual debt ceiling limits placed on local governments by the state. Great. More gambling.

Well, there she goes. Don’t worry. There’s more where that came from…

Mr. Collier was kind enough to visit our humble site to educates us on POBs. Friends immediately pointed out the risks involved with POBs, and the lack of skin in the game Collier and his pals had. And that was three years ago when market interest rates were way lower. The equities market is now going through the roof so the idea looks appealing to our bureaucrats, but not to California pension system observers who note CalPERS ever-declining return assumptions and remember the disaster of 2008. Will the City Council approve this gambit? It’s possible, and a public vote is not required.

Hey, you down there…

These various options involve raising taxes or encumbering property to some extent. That’s risk with a speculated payoff. Ahmad Zahra is bound to support anything risky and foolish so as to protect his friends in City Hall. So is Shana Charles, another liberal torchbearer who will tell us this is for our own good; or for the urban forest; or for boutique hotels, or something else nonsensical. Whitaker won’t go for any of this nonsense. Dunlap? Who knows these days. And then there is Fred Jung who had the opportunity to be the third vote to shut down talk of revenue enhancement last year and didn’t.

Hero. Deserve.

A problem with any tax revenue increase is that the increase, such as it were, will immediately be snatched up by the so-called “public safety” employees, whose unions have the clout to grab what they want and everybody else be damned. That’s exactly what happened in Westminster a few years when the cop union pounded the pavement for a sales tax increase, got it, then gobbled it all up. And Westminster is right back where they were before.

COVID ZAHRA

When things get tough, real leaders make difficult choices. And then there are those like Ahmad Zahra.

When Covid 19 rolled around in the spring of 2020 Fullerton was already looking at financial disaster. Years of unbalanced budgets were backfilled by reserve funds by the partnership Fitzgerald, Flory, Silva and Zahra. With the Covid lockdown things looked bleak.

What to do?

“I know” said Ahmad Zahra, “lets have a sales tax.”

And so the ill-fated Measure S was placed on the ballot by the same herd: Fitzgerald, Flory, Silva and Zahra. The proponents didn’t seem to care that sales taxes are inherently regressive, and Zahra seemed uninterested in the fact that his D5 constituents would be disproportionately hurt. Ironically, at the time, Zahra was hauling in $4,000 a month for a few hours time as an appointed member of the Orange County Water District Board.

Later, in 2021, when federal relief money rolled in to Fullerton, Zahra tried to direct funds away from infrastructure and into salaries and pension obligations.

Well, those chickens have come to roost. This mail piece landed in D5 mailboxes today:

Oops!

And the back side:

You have something he wants…

The Second Try

Nothing says 1962 like Fullerton City Hall

Back in 2020 our Lords and Masters at City Hall cooked up a plan to impose a sales tax increase upon people buying stuff in Fullerton. It was staff-driven natch, and lazy liberals Zahra, Quirk-Silva, Flory and Fitzgerald were on board. It was called Measure S. See, they figured the path of least resistance was deploying a new tax rather than finally exercising fiscal restraint.

Measure S Covid Lie
The Big Lie

Measure S soon found itself in the crosshairs of Fullerton anti-tax advocates and some well-placed signs describing the true nature of the beast doomed it to failure come election time.

Well guess what? They’re at it again. This time the idea is something called a Pension Obligation Bond, a mechanism for paying off part of Fullerton’s massive unfunded pension actuarial liability at CalPERS, the State’s giant pension administrator.

An introductory briefing was on the Council’s agenda last Tuesday to start the cheerleading process – a process that will entail the employment of an “expert” who will certainly benefit from a positive result; and of course “bond counsel” the legal camp-followers who push bonds on lazy elected officials after a hot meal and a few glasses of wine.

As everybody knows, the interest on the bonds are ultimately backed up by the collateral of new property taxes. This revenue would go to pay down the pension debt and free up money owed to CalPERS for staff salaries and benefits that will ultimately, and ironically, increase pension debt.

Here’s the second kicker: because a pension obligation bond is not deemed new debt, per se, but a sort of pea-under-the-walnut shell maneuver, no vote of the people is required – as it is in the case of general obligation bonds. It just gets “validated” by a judge and goes through on the nod unless challenged. Ouch. Of course the Council, if it wanted to could put the issue on a ballot anyhow, if they chose to move ahead with this scheme.

Of course the strategy for this type of thing is to reprimand opponents by citing the fact that the daily cost is little more than a Big Mac, or some other trifle and in return we get…what do we get again? Our loyal and devoted “public safety” club will almost certainly gobble up the lion’s share of this taxpayer largesse, just like they already do, and we’ll be even worse off than we already are, and no desperately needed cultural changes will have been made.

I looked over the agenda material on line and found nary a clue as to how this was even agendized. Another smoke screen protecting somebody.

The Cost of The Florentine Sidewalk Scam

Gone, but not quite forgotten…

Of course everybody is now familiar with how, in 2003, the Florentine Mob successfully put a permanent building on an area that only had an “outside dining” encroachment agreement. The details of the case reveal an incompetence and misfeasance on the part of city staff that is truly mind-numbing, the principle party being F. Paul Dudley, Planning Director, who “approved” the illegal permanent structure as it was being built in June, 2003. He also  seems to have personally approved a loan to the Florentine crew, and rental terms on the space that weren’t approved by the City Council.

dick-jones
Staying awake long enough to break the law…

Of course it wouldn’t be Fullerton unless our legal-eagle Dick Jones also played a part in the fiasco, and in the inevitable cover-up. He actually put his signature on a completely different agreement in August, 2003 – two months after Dudley did his sleazy back-room deal. How’s that for staggering incompetence?

The gun was smoking badly…

Note that “for some reason” the agreement was not formally executed until August. For some reason? Jesus H., Jones, did you even bother to ask why you signed something that was obsolete, or why in Hell you were signing it?

So the embarrassing enclosure was allowed to continue in July, 2003 even though the furor continued for months, and the deal was finally buried in 2004 whereby the parties involved, Shawn Nelson, Don Bankhead, Dick Jones, Mike Clesceri and Leland Wilson surely hoped it was forever interred.

Well, now it’s 2020. The legal party responsible to remove and restore the encroachment area has fled the scene, and the embarrassment of the Florentine addition that squats on public property, remains.

The owner of the rest of the building, Mr. Mario Marivic is apparently embroiled in a legal fight with the FloMob, and good luck to him. But good luck to us, too. Because we, the citizens of Fullerton, have an unowned room addition on our right-of-way, and the people on the hook for its possible removal are gone. Mr. Marovic is under no obligation to remove the structure, and he is not even under any obligation to pay the measly 25 cents per foot that the egregious F. Paul Dudley “negotiated” with the Florentines. The City’s options are limited: it can terminate the encroachment and pay to remove the building addition itself, or it can negotiate a new lease agreement with Marovic, and the sidewalk stays as is. Either way, the public loses.

So this Ghost of Incompetence Past continues to haunt us almost 20 years after the con was consummated. Mr. Dudley has been six-figure pensioned, and the inept councilmen who were indifferent to the notion of government accountability are dead or moved on. But Attorney Dick Jones is still around, profiting off of the gullibility, incompetence and militant ignorance of our “leaders.”

Is Fitzgerald Out?

I’m not telling the truth and you can’t make me…

Rumor is circulating that our Mayor-for-Hire, lobbyist Jennifer Fitzgerald isn’t going to be running for election to represent District 1 in Fullerton this fall. Good news, indeed, if true, for those who care about honest, competent government.

But is it true? No pronouncements have been forthcoming from the woman herself which suggests that the rumor isn’t true, or that the influence peddler is going to try to slide in a candidate of her own choosing – one who may just be amenable to continuing the Culture of Corruption in the FPD and the Culture of Incompetence in City Hall.

Pringle and Fitzgerald

What her departure might mean for her future value for the swamp known as Pringle and Associates remains to be seen.

Well, I guess we’ll know in about six weeks. And if Her Highness is just playing games and is going to run after all, we’ll be reminding voters of her:

  1. Promise to take no pay or benefits, and then doing just that.
  2. Lying about a “balanced budget” for years while depleting reserve funds to pay for ever-greater pension obligations.
  3. Covering up the drunk driving of her best buddy, City Manager Joe Felz, a spectacle that has embarrassed the City, ever since.
  4. Ignoring the roads of Fullerton until they have become the worst in Orange County , as determined by the OCTA.
  5. Presiding over the shoddy or incompetent  construction of vanity projects that put money in the pockets of her campaign contributor.
  6. Working as a lobbyist while representing the City of Fullerton.

Axis of Casual Corruption.

So bring it on Jen.’ We’ve been paying attention and we’re gonna make sure your neighbors know all about your record. Stooge endorsement from recalled former council buffoons, corrupt liberals and government camp followers and a new tsunami of prevarication ain’t gonna cut it in 2020.