Rusty’s Bank Account

A while back some anonymous Friend dropped off what appears to be leaked financial statements from Rusty Kennedy’s non-profit, the Orange County Human Relations Council. The files didn’t receive much attention from FFFF at the time, but this week one of our readers recently pointed out Rusty has been down at the county begging for a new $250,000 infusion to fund additional employees for his private non-profit.

We have a small problem.

OK, let’s take a look at his financial statements. If you believe that this leaked budget is authentic (I do), an additional $250,000 per year from the county taxpayers would conveniently cover the Council’s projected loss for 2016.

Now that’s not very good, is it? Running a non-profit at a 20% annual loss is cause for concern. But of course this is a private 501(c)(3), so that’s normally a problem for Rusty’s private board members to worry about.

Or is it? What if Rusty is groveling for cash at the county just pay for existing expenses, rather than hiring the three new people as promised? The group already receives substantial funding from the county and local cities. Why should the county give more money to a group that can’t balance its budget? Furthermore, it’s hard to tell if there’s any real value in Rusty’s services, or if his organization offers any sort of efficiency. Program expenses aren’t identified in this budget at all. Why not?

Here’s one clue hidden within the documents: Salaries, Benefits, and Payroll Taxes account for 98.1% of their budgeted revenue. With salaries eating up the entire budget, one might wonder if this whole operation isn’t just some make-work project for Rusty and his friends.

There’s one more concern. Rusty has collected a lot of donations over the years by pretending that his non-profit is actually an empowered county agency. Many of his donors are misinformed, which is why the county recently insisted he stop using the county logo and misappropriating  the name of the similarly-named Orange County Human Relations Commission. Furthermore, there is at least one board member who hold seats in both organizations – a glaring conflict of interest that the county has yet to resolve.

Altogether, these documents paint a pretty dim picture for Rusty’s personally lucrative public/private amalgamation. Will county supervisors continue to dump money into Kennedy’s opaque and unaccountable mess of an organization? And how much are individual OC cities paying into Rusty’s perpetual self-employment apparatus? Do Orange County residents receive any real value from this public/private partnership, or is it time to scrape this useless barnacle off the county barge?

Elevators to Nowhere – Construction Begins! Oh, Wait. No It Doesn’t.

Friends, here is another in a series of posts about Fullerton’s ill-fated “Elevators to Nowhere” series by “Fullerton Engineer”

It may have been expensive, but it sure was unnecessary…

In following the trajectory of the new elevator project at the Fullerton train station I have described a project that the public neither wanted nor needed, that had its genesis in the simple availability of “free money” way back in 2011 – six long years ago.

Although the design contract was let in 2013, the project was not bid until 2015 when the low bid came in 22% higher than anticipated. The construction contract was awarded anyway. With numerous ancillary “management” contracts, the project budget had grown to $4,000,000. By 2017 that figure had ballooned to an astonishing $4,600,000.

And yet construction didn’t start until February, 2016 and when it did it was only for some minor ADA toilet room modifications adjacent to the AMTRAK ticket office.

Woodcliff Billing #1

You can see in the project billing submitted by Woodcliff Corporation, the contractor, a few items related to bonds, mobilization and the bathroom work in February 2016 – a year after the contract bid. Nothing was billed against the elevator items at all, except for crediting the structural steel shop drawings for $55,000. Over 14 months later the structural steel has not been erected. In fact, the foundations for the steel structure haven’t even been built, as the site sits empty with minor demolition having taken place and some lighting conduit rerouted.

If any delay claims have been submitted by Woodcliff, those documents have not been shared, although delay claims are certainly coming, and escalation costs are already starting to accrue, although we don’t know how much because the costs were intentionally lumped together with  other completely unrelated items in the March 2017 staff report.

As I noted in an earlier post the cause of all these delays is not known by the public because the Public Works staff doesn’t want the public to know that things have obviously gone wrong, very wrong; and, that the inexplicable and unexplained delays have finally cost the taxpayers of Fullerton directly. The money is no longer free.

— Fullerton Engineer

 

 

 

EV Free Lunch. Fullerton Megachurch Gives City Employees a Love Offering

Lunch is on me.

Since at least 2013, Fullerton’s EV Free megachurch has been paying for and hosting a lunch as a gift to City of Fullerton employees. Probably not coincidentally, 2013 is when EV Free congregant Jennifer Fizgerald began her first year on the Fullerton City Council. Last year the event included a tri-tip lunch and “prizes and a raffle to win gift cards to local Fullerton businesses.” These events must cost the church thousands of dollars.

http://www.evfreefullerton. com/2016/06/an-olympic- fullerton-city-luncheon/

It should be crystal clear why it’s wrong for an organization to buy lunch for city employees, one or all. This church frequently petitions the city on land use issues, and it even hires city police to manage its parking. If a business like Chevron or Red Oak Development or Renick Cadillac tried to glad hand City functionaries and employees like this, the public would be outraged. It is a clear conflict of interest for city employees to accept gifts like this.

For its part, the church ought to revisit Scripture as it relates to Pharisaical behavior. I don’t remember Jesus Christ or his disciples buying lunch for the Romans, but then Jesus didn’t have two denarii to rub together.

However, it is not our business to tell a church what to do, although we may well look askance – as when a Grace Ministries’ representative stood up at a public hearing and claimed his church’s members supported the bar owners’ districting map.

The action of the city government, led by City Manager Joe Felz, in accepting these gifts, is appalling and not only exhibited a complete lack of judgment and awareness, but placed the City in the position of a gift-receiver from an entity that does substantial business in Fullerton. If an individual were the sole recipient of this largess questions of integrity would immediately follow. That Joe Felz entangled the people of Fullerton in this situation is deplorable.

And where has our City Council been on this? MIA, as in so many other things.

The Day Nothing Happened

They say the wheels of justice turn slowly. They would be right. Today a pre-trail hearing for Joe “Burt” Felz’ DUI caper was on the docket over at North Court. Joe sent his attorney to handle the matter, who promptly asked the court to continue the case to a future date. That date is June 20.

There isn’t much else to talk about, so enjoy a little photo fun courtesy of the FFFF courtroom reporting team.

Burt’s attorney, ready to represent his many upstanding clients.
The winner’s circle
Lots of activity, little progress.
KTLA requested a camera in the court room. Denied.

 

The Elevators to Nowhere – Managing The Managers

It may be expensive, but it sure is unnecessary…

Yet another in a series about the depot elevator additions by our friend, Fullerton Engineer.

There is an alarming trend in public works construction, namely the larding up of the project with costly overseers to oversee other overseers. The justification is always the same – hiring essential “expertise” to make sure the project gets done on time and under budget. Forget the irony that no one in charge really cares if a project is late, or how much it costs, although they would prefer that no one find out. But what they really care about care about is the photo-op ground breaking and the bronze plaque with their name on it.

The consequences of this trend are two. First, the cost of the project goes up. Way up. And secondly, the overdose of management is guaranteed, when something inevitably goes wrong, to diffuse accountability by the sheer numbers of people potentially responsible for the problem. 

Exhibit A for the prosecution: the completely unnecessary elevator addition project at the Fullerton train station, a project that has already skyrocketed toward $5,000,000. Yes, you read that right. $5,000,000.

When last I left off my narrative, the City had hired Woodcliff Corporation in April 2015 to build the new elevators; and it had paid Griffin Structures to make sure the thing was “constructible.”

In August of 2015 the City employed the services of Anil Verma, a civil engineer and construction manager for vague “construction support services” with a contract worth about $154,000. Since the contract was not provided per our PRA request, we are left to guess what Anil Verma’s scope of work is; we do know they presented two large invoices in 2016 for $55,000, even though nothing had been started except the small ADA remodel adjacent to the AMTRAK office. Regular billing began this spring and the total paid out so far as of April 2017 has been $66,000.

Anil Verma PO P002068

As if the professional services of Anil Verma were not enough to oversee this small project, the City hired yet another construction management company in March 2017 – Griffin Structures, for another $154,500. Since the contract was not provided per our PRA request, we are left to guess what Griffin Structure’s scope of work is, but we know that they are not replacing Anil Verma because, as noted above, the latter seems to have begun regular, monthly billings.

Griffin Structures PO P902854

Now we come to the money that must be spent on our own city staff who makes sure the overseers are properly paid and ministered to. This money popped up in a budget transfer in March, money that is now coming directly out of Fullerton’s own Capital Budget. The total identified in the staff report is a lump-sum $600,000 for various items since the City Engineer, Don Hoppe, was not kind enough to share the specific amount for what is casually referred to as “additional assistant in construction administration.”

And finally, let us not forget the amounts that will surely be billed by, and require further contract augmentation for, Hatch Mott McDonald, the original designer of these two elevator structures, for on-site walkabouts.

Speaking of inspection, back in June 2015, the City hired the “as-needed” good offices of Smith-Emery, a construction testing/inspection lab. The contract is for just under $50,000, which is an awful lot of money for materials testing on a couple of elevator towers; so we’ll just have to trust our City public works department that the money will be well-spent. Our city council certainly trusts them.

Smith Emery PO #P001989

— Fullerton Engineer

Elevators to Nowhere – The Expensive Death March

Here is the latest installment in a series by our Friend, Fullerton Engineer, describing the sad story of the ruinously expensive elevator additions at the Fullerton train station.

It may have been expensive, but it sure was unnecessary…

In my previous installments I described a project that nobody outside City Hall wanted or needed, a project that would never have been contemplated without State transportation grant monies, and that had been “designed” under a 2012 contract that had ballooned to a jaw-dropping $460,000 – including a mysterious increase of 28%. The engineer – Hatch Mott McDonald completed their efforts in 2014, per their purchase order billing record. And there the project sat for a year.

Hatch Mott MacDonald PO P001258

Why? The answer is not immediately forthcoming and naturally the public wasn’t informed; but the cause of the delay can be reasonably inferred from the staff report accompanying the request to award the construction contract to Woodcliff Corporation in April, 2015. For the first time we read that the OCTA is going to authorize a shift of a million dollars from transportation parking funding – money, presumably, needed to actually build the project. And we may surmise that without the funding, money spent on the engineering/design work, money authorized over three years earlier, would have been wasted.

Please observe the complete lack of transparency in the staff report, and the omission of any history that would indicate that staff and the city council in 2011-12 had committed the City to this project without adequate funding.

And note that the staff report lazily repeats the casual assertion of increasing train ridership as the justification for the project, but offers no data to substantiate the need.

The report does indicate worrisome information. The low bid, by Woodcliff is an alarming 22% over the estimate. But remarkably, this fact does not faze city staff at all, who nevertheless recommend award; nor does it alarm our city council who approved this fiasco unanimously. Staff even admits that there are potential cost savings that could be realized if the project were rebid. But nobody cared.

What the public is also not told is that toward the end of the design completion in 2014, a firm called Griffin Structures was given $6000 to provide “constructibility” services, a function that questions the competency of both the designer and the contractor whose job it is to design and build these elevators.

Griffin Structures – Constructability Review PO P001678

Remember the name Griffin Structures. You haven’t seen the last of it.

 

 

Dan Hughes Accidentally Tells the Truth – Felz Was Intoxicated!

A follow-up to last night. Here’s some more, under oath, testimony from Former Police Chief Dan Hughes. See if you can spot the moment when Dan decides to not dissemble the details.

Hint – “The Supervisor believed he was intoxicated”.

Did Hughes lie to the Fullerton City Council or did he lie Under Oath yesterday?

Behind the Badge

One of the more startling examples of stupid waste at Fullerton City Hall has been the exorbitant expense of Behind the Badge: fifty large ones a year for former bad OC Register “journalists” to publish and disseminate pro-cop propaganda pabulum. It was all phony crap meant to obscure the real news about the FPD: a litany of bad behavior and criminal activity that over the past decade has spanned the breadth of the California Penal Code. Fortunately, thanks to the Friends this ridiculous waste is coming to an end. We wanted to make sure, too, so we requested the good bye letter.

And here is our temporary police chief Dave Hinig, hand-wringing over the loss of what can only be described as no loss at all for the taxpayer:

Is this some sort of sick joke? Value? To whom? Certainly not for the people who were paying out almost $250,000 over the past four years.

And what’s really laughable is all this lachrymose bullshit over a contract that was made in secret, was grossly mismanaged, and that had no actual requirements for performance – even if Joe Felz had had any inclination to oversee what he initiated.

Well, anyway, Behind the Badge is going away although why we have to pay another $8000 for two more months of this unadulterated literary manure is beyond me.

Photo Fun: Jesus Asks Questions

If you don’t ask you’ll never find out…

Friends, in response to our public records act request regarding council communications on November 9th, 2016, we actually received the image below from newly-elected but not even sworn-in councilman Jesus Silva.

The first message from the afternoon of November 9th is “responsive,” but not requested since Silva was not yet a councilman. Still it’s pretty darn funny.

The second message dated five days later is a completely gratuitous offering, and you are free to make of it what you will. To me it looks an awful lot like Jesus was planning a list of invitees to an upcoming fundraiser. Let’s hope Felz didn’t waste any time on a purely political exercise for somebody too lazy too do his own research. Of course Stumblejoe had other things on his mind on November 14th.

Jesus Silva’s phone

I wonder if Joe had a restful weekend.

Elevators to Nowhere – the Genesis

This is the third post in a series by our Friend “Fullerton Engineer” describing the elevator addition project at the Fullerton Depot. 

So you think the problem with transportation revenue is that there isn’t enough of it? Let’s see what happens when the State of California doles out grant money to localities, in this instance our very own town of Fullerton.

California transportation projects are very often driven by the availability of money spent in pursuit of a social agenda. Car pools lanes with fantastically expensive fly-over bridges? Check. Highly subsidized transit for upper middle class commuters? Check.

Forget that carpool lanes make everybody’s drive worse and that commuter trains only serve a puny portion of the taxpayers that foot the bill. It’s the gesture that counts, you see, and the more expensive the gesture, the more it counts.

It might be expensive but it sure is useless…

Back in 2010, or so, the good folks whose livelihoods depend on putting the plans of our Sacramento social engineers into effect foresaw a big increase in rail transit through the Fullerton train station. But gee, thought someone, won’t that mean making it harder to get all those new travelers to other side of the tracks?  The solution? New elevators, and right next to the old ones. Forget the fact that most of the day the existing elevators were unused, or that most people just climbed the stairs; and forget the fact that a sensible set of stairs already existed under the Harbor Boulevard bridge to do the same thing. New elevators made no sense even if the new ridership tsunami was believable: after all – only two trains can stop in the station at the same time, the same as before.

But of course the real kicker was the availability of money from our friends in Sacramento to effect alterations in stations that accommodate “transit” modalities, and so the City of Fullerton was going to grab while the grabbing was good, and never mind that the idea was nonsense and that nobody needed or wanted it.

On December 20, 2011 our esteemed City Council voted to award a design contract to Hatch Mott MacDonald, an engineering firm to “design” two new elevators right next to the existing ones. The contract amount was $358,390, a remarkable amount given the scope of the task at hand – to replicate the existing bridge in two new, one-stop elevator structures. In case you are wondering, $358,000 equates to the billing of one $100 per hour person working on this project full-time, doing nothing else, for 1.7 years.

Here’s the Hatch Mott MacDonald Purchase Order record

And so the City embarked on this ridiculous project. HMM began work in march 2012 after the City had signed a master agreement with the State of California. Someone should have become alarmed the following year when Hatch Mott MacDonald’s design service billings eventually ballooned 28% over budget – almost a hundred thousand dollars. But no one did. It was someone else’s money.

Fullerton Engineer