Moorlach Orders Investigation Into Daly’s $10 Million Nightmare

Was it fraud, negligence, incompetence or just an honest to goodness mistake when Tom Daly approached the Board of Supervisors and asked for $2.1 million to purchase a dilapidated building 433 W. Civic Center Drive?

Did Daly forget to tell the Supes that the building was a tear down and not in turnkey condition? Or did he actually believe that the building was ready to move into?  If he did then he needs to fire his real estate agent! There are many hard questions that remain to be asked and answered.

At Tuesday’s board meeting, Supervisor John Moorlach asked County CEO Tom Mauk to bring back a report detailing what happened to the missing information on the useless multi-million dollar building.  Was it lost or intentionally withheld? Did Tom Daly just forget to tell the Board the complete facts about the money-sucking building, knowing that they would have said “HELL NO!” when they found out that it would cost another $7.6 million to make it suitable for the archives and the Orange County Sports Hall of Fame?

Let’s not forget the Sports Hall of Fame was being “brainstormed” by Daly’s BFF Brett Barbre to the tune of another $48,000.

So back to the word “fraud.” What does it mean and how is it really pronounced?

fraud–noun

/frôd/

1. deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage.

433 W. Civic Center Dr. 2 years later, still vacant

Why is “Red County” Editor Searching Records on Republican?

I'm trustworthy. Trust me.

That is a good question.

One of the fun things about public records searches is that you can also see who is doing searches. Now that’s good, clean fun!

We found out that Matthew J. Cunningham of the formerly Red County blog did a public records search on County Clerk candidate and Republican  Hugh Nguyen. He asked for Nguyen’s e-mails since the invention of the computer. Well, over two year’s worth, anyway.

Oops! That was going to be pretty expensive since the County would have to hire a contractor to collect the data and then it would have to be reviewed prior to release. The upshot was the County declined to satisfy the request. They did provide Nguyen’s 700 forms (statement of economic interest).

On the other hand a record search of available records turned up a brief and harmless discussion about Daly protegee Renee Ramirez’ very brief County Clerk campaign sent to Nguyen. Wow. Go to work and turn that into an issue, Matthew!

Now first, let’s dispense with the “why” part for the uninitiated. Cunningham claims to be a conservative Republican – he’s been chattering away just like one for years now.  And yet his mentor and string puller from way back is John Lewis, a campaign consultant and lobbyist who has been working for Democrat County Clerk Tom Daly behind the scenes since 2002. Daly recently quit the 4th District Supervisors race after a series of embarrassing revelations of waste and mismanagement in his office and has scuttled back to the County Clerk’s race so he can keep wasting money left and right as he protects our vital records.

Snooping on a fellow Republican, and one backed by a good share of the County Republican establishment in order to help a Democrat with an awful fiscal record? Bad boy. Bad, bad, boy!

When I'm done with my sports hall of fame project we'll get right to work on fixing 433 Civic Center West

Cunningham has already made it a point to parrot “untrustworthy” drivel about Nguyen he picked up at the local liberal blog and comically expanded upon; and hasn’t said a peep about any of Daly’s fiscal squanderings. How’s that for conservatism and accountability?

Matt and I are of like mind...

Now for the “how” of the great e-mail hunt. Presumably Cunningham could actually pony up the dough to do opp research on a Republican. Would he? That’s a lot of cash. If he does, it will look extremely suspicious and a reasonable person would have to question the source of the cash.

To wrap up, it’s pretty obvious that the Daly/Lewis/Cunningham team are worried about Nguyen. Daly has challenged Nguyen’s ballot title and a surrogate has actually challenged Nguyen’s use of his first name. Still it’s a County-wide race and Daly has plenty of name ID over the relatively unknown Nguyen.

But maybe they’re right to be worried. Are there more Daly skeletons that are about to tumble out of the closet?

Heh heh. Just wait and see.

Love For Sale.Tender Young Love For Sale

Just remember. You are what you eat.

A few weeks ago I did a pretty tongue-in-cheek post about some guy named Thomas Anthony Gordon, a goon from Santa Ana who popped up out of nowhere with a gratuitous anti-Shawn Nelson post on the Mauve County blog. He criticized Nelson for being soft on criminals because he is a defense lawyer. I pointed out the bad luck since there was a guy in OC with the exact same name and body type as Gordon who had been busted a couple of times for driving on a suspended license – and opined about how that guy was probably in need of a defense lawyer himself.

At the time I believed Gordon was just prostituting himself for Lewis/Cunningham and hence, Tom Daly. I may have been wrong. That was before I understood the deep, moist crevices into which Harry Sidhu’s pocket change had fallen. Of course the common denominator, John Lewis, is still in the picture, although Daly quit the supervisors race to play catch with his kid.

Well check this out. Harry Sidhu, the perpetual office seeker has decided to run for the GOP Central Committee for the 69th Assembly district (which must surely be a record – carpetbagging two districts at the same time, what a hustler). Now for the fun part. Take a look at who was out circulating petitions on the very last day so Hide and Seek Sidhu could “qualify” for the ballot. None other than our old friend Thomas Anthony Gordon. Click on the pdf and take a look.

Gordo! And now we really have to wonder. Is Gordon actually on Sidhu’s payroll? If not, why not? Everybody else is!

Of course, if he is let’s hope he informed his bosses over at the Mauve County where they say they will fire you if you don’t disclose that fact that you are blogging for dollars!

Tom Daly’s $10,000,000 Headache

Take two aspirins and call me in the morning...

Well, no that’s not quite right. Headache would imply that County Clerk Tom Daly cares he blew $2,100,000 of public money on a real estate venture and that it could cost another $7,600,000 to fix the problem; or that he is in any way worried about it. And why should he be? When there’s no accountability you never even have to say you’re sorry.

433 W. Civic Center Drive. The jewel in Tom Daly's crown.

Here’s the background. In 2007 Daly urged the purchase of the small office building at 433 West Civic Center Drive, in Santa Ana. The ostensible purpose of this acquisition was the expansion of the County Archives. Negotiations were approved by the Board of Supervisors in September, 2007. After several months of dickering and alleged property inspections, the County CEO and RDMD staff recommended that the Board of Supervisors approve the purchase for $2.1 million. Staff recommended an “as-is purchase” with the caveat that the County Clerk would be paying for “minor repairs” and interior improvements; they noted blithely that the purchase price was below their appraised value for the building. Nothing was mentioned about inadequate space or building deficiencies. In fact the staff report claimed the building had been well-maintained.

An almost comical selling point was an alleged annual savings of $26,000 for parking paid by the County to private parking vendors. No one seemed to calculate the lost opportunity costs or even the interest value of $2,100,000.

The Board voted 3-0 to approve the purchase in January, 2008. Norby, Moorlach and Nguyen put their fingerprints on the deal.

Two years later the building still sits empty across the street from Daly’s office.  And the archives still sit where ever it is they sit, presumably more crowded than ever.

What happened? Could it be that the County Clerk is now wrestling with the embarrassment of how to deal with a massive boondoggle?

It turns out that the building in question was not fit for public occupancy. Apart from ADA issues, the structure is deficient, the basement is going to leak, and all of the building systems are all obsolete. It also turns out that the building is too small to do what it was bought to do.

In other words, the building is practically worthless; and plus demolition and paving costs, the County is now the proud owner of a $2,100,000 parking lot for a few dozen cars.

How and when did this painful realization occur? We’re not real sure about the chronology, but sometime in 2008 Daly hired a firm called Kishimoto Architects to look at the building and produce a feasibility report, after the building was purchased, with cost estimates for various alternatives.  The report, dated January 12,2009, proposed 3 approaches:

1. 2.8 million to remodel the building to make it usable; ADA, structural, electrical, mechanical, plumbing, roofing, replacement, etc.
2. 5.7 million to remodel as above, and expand the building to accommodate the proposed use.
3. 7.6 million to demolish the building and start over again.

Say what? $2.8 million to remodel a $2.1 million dollar building?! Option two – that included a remodel and expansion – seems highly unlikely given the price tag, the schedule delays and the embarrassing admission that nobody ever bothered to do a space/needs assessment in the first place. And of course #3 was even worse: starting over would jack the price up to nearly $10,000,000, and add years onto any occupancy schedule.

So there the building sits.

Is any of this really Daly’s fault? His few remaining adherents will argue that poor Tom was just the victim of staff incompetence. Blaming the staff that recommended that this turkey proceed is easy because they were obviously derelict in their appraisal and physical assessment of the property. And the two remaining supervisors who voted for this (Moorlach and Nguyen) have a responsibility to the taxpayers to answer for their employees and the waste of over $2,000,000; after all, they are “Supervisors.”

I was gonna put the sports hall of fame in the basement.

But ultimately Tom Daly is the chief architect of this fiasco, and to those who know how elected politicians apply pressure to the staff to get the recommendations they want, there can be little doubt that the County Clerk was likely pressing and probably pressing hard for his imperial expansion. The money had been budgeted and needed to be spent. So the staff either intentionally looked the other way or didn’t bother looking at all. In the final analysis Daly is an elected official and answerable to the voters.

It’s hard to say what will happen to this real estate jewel. It’s too expensive to knock down and too deficient to use. The site is too small to do much of anything with. In other words it’s a real headache. And it’s all ours.

Register Picks Up On Daly’s $50K Hall of Shame

UPDATE: ALTHOUGH THIS STORY BY MS. MUIR APPEARED ON-LINE, APPARENTLY IT DID NOT APPEAR IN ANY PRINT EDITION – CAUSING SOME OF OUR FRIENDS TO WONDER WHAT SORT OF THRESHOLD OF PUBLIC MISFEASANCE/MALFEASANCE NEEDS TO BE SURMOUNTED IN ORDER TO ACTUALLY BE PRINTED BY THE ORANGE COUNTY REGISTER.

THE ANSWER: WE DON’T KNOW. BUT MUST IT MUST BE PRETTY HIGH.

WELL, I’VE GOT MORE GOOD STUFF ON DALY AND WE’LL SEE IF THAT’S OF ANY INTEREST TO THEM.

– Grover Cleveland

Jennifer Muir of the OC Register picked up on the Brett Barbre hall of fame brainstormin’ fiasco that cost the taxpayers $48,000 – courtesy of County Clerk Tom Daly’s reckless largess with our money. Interestingly, Muir cites a County rule that any expenditure more than $50,000 has to be approved by the Board of Supervisors. Hmm.

I am a fiscal conservative. I am a fiscal conservative. I am... aw the hell with it.

The funniest quote in Muir’s piece was Daly claiming that the whole deal was within his purview and that he paid Barbre for ideas, not “long reports.” Of course he got neither.

Worked my synapes to the bone, I tells ya...

Hilariously, Barbre claims to have worked 40 hours a month on the project. That would be an average of 2 hours a day. Every working day. For 18 months. That’s 720 hours – with nothing to show for it. Is there a single person in OC stupid enough to believe any of that?

He seemed to be soliciting sympathy with the big revelation to Muir that a trip he made to Boston was paid for out of his own pocket! What self sacrifice!

Barbre also seemed indignant that somebody (us) might imply a nexus between his windfall and the $1000 he gave to Daly’s supervisorial campaign. His self-exoneration? He didn’t even give Daly the maximum amount of $1700! What a guy.

Additionally, we have received an e-mail that really sheds light onto just how feeble Barbre’s and Daly’s “research” efforts really were. Here it is:

Subject: Orange County Sports Hall of Fame

I am a founder of the Orange County Sports Hall of Fame.  We began in 1980 with a huge banquet at the Anaheim Convention Center.  Over the years, we inducted more than 70 athletes, coaches and contributors from Walter Johnson and Mickey Flynn to Jack Youngblood and Jim Fregosi.  We eventually had a museum at Anaheim Stadium that has since been replaced by Angel offices (our artifacts are in storage).  Nobody contacted me or other founders (including Cal State Fullerton Sports Information Director Mel Franks and long-time OC business and political leader Buck Johns) regarding research into a Hall of Fame — that existed 30 years ago.  If someone was paid nearly $50,000 to do research they did an amazingly  poor job.  Sincerely, Pete Donovan

Thanks for the e-mail, Mr. Donovan. Just as we expected.

He Went to Boston But Couldn’t Make a Local Phone Call; Original Hall of Fame Founder Calls BS on Daly/Barbre

The Tom Daly Experience. The closer you look, the worse it gets...

It’s looking like County Clerk Tom Daly figures he can peddle any old bullshit to a Register reporter and get away with it. And he probably figures on an easy re-election this spring. That’s the arrogance of a career politician for you.

When questioned by the Reg’s Jennifer Muir about his sports hall of fame fiasco in which he paid “consultant” and campaign contributor Brett Barbre $48,000 to “study” the notion, Daly said he paid Barbre for “ideas, not long reports.” Not quite right, Mr. Daly. See, we read your contract with Barbre even if you didn’t. He was supposed to be doing research on the feasiblity of the scheme – a scheme, by the way, that falls way outside the County Clerk’s job description. That specifically included contacting similar entities.

Hey, those guys weren't in the phone book!

And here’s the kicker: we already had a hall of fame in the County – which apparently was located in Angel’s Stadium in the 80s and subsequently mothballed. And we got an e-mail from a gent who says he was one of the founders: Pete Donovan. Mr. Donovan asserts that nobody ever contacted him or fellow founders about this idea. Here’s Donovan’s e-mail:

Subject: Orange County Sports Hall of Fame

I am a founder of the Orange County Sports Hall of Fame.  We began in 1980 with a huge banquet at the Anaheim Convention Center.  Over the years, we inducted more than 70 athletes, coaches and contributors from Walter Johnson and Mickey Flynn to Jack Youngblood and Jim Fregosi.  We eventually had a museum at Anaheim Stadium that has since been replaced by Angel offices (our artifacts are in storage).  Nobody contacted me or other founders (including Cal State Fullerton Sports Information Director Mel Franks and long-time OC business and political leader Buck Johns) regarding research into a Hall of Fame — that existed 30 years ago.  If someone was paid nearly $50,000 to do research they did an amazingly  poor job.  Sincerely, Pete Donovan

Gee. Barbre had time to go to Boston to “study” the issue at Fenway Park, but not not enough time to make a couple of local calls to people who had already given it a go. Come to think of it, maybe those were exactly the people Barbre and Daly didn’t want to talk to!

Well, that pretty well sums up the incompetence and/or corruption of the whole stinking pile.

Want your $48,000 back?

Tom Daly’s $50K Hall of Shame

Will it have a football wing?

As we reported last week, here, County Clerk/Recorder Tom Daly paid almost $50,00 in 2008 and 2009 to a campaign contributor to “study” the feasibility of developing an Orange County athletic “hall of fame.” We opined upon the irresponsible expenditure and questioned why the County Clerk would even embark on such a lame idea in the first place.

At the time of the post, our request for public records had resulted in scant documentation that this “consultant” Brett Barbre, had actually done anything at all to justify his $3000 per month bill. We were informed by the County that we didn’t have all their “work product” documents.

Now we do.

I don't remember and you can't make me.

The sum and substance of Mr. Barbre’s efforts for Daly is reflected in brief periodic memorandums sent  to Daly’s office informing them of what he had been up to in the previous month. Even these cursory, written updates ceased after September 1, 2008, although Barbre continued to be paid by Daly through June, 2009.

The lack of accomplishment was clear; but the invoices kept coming in.

Curiously, in the summer of 2008 Barbre and Daly had gotten it into their noggins to create something called a prep sports honor roll dinner, some sort of tie-in to the original concept, presumably. They had even picked a date for the inaugural event. Amazingly no one seems to have even questioned why the County Clerk would be organizing such a blatanly non-public function that had absolutely nothing to do with his job responsibilities.

The other scant fruits of Barbre’s labor were a photo montage of the New England Hall of Fame and a facsimile of a brochure from the Newport Sports Museum. Material collected and scanned and submitted as somehow substantive.

We will probably never know what was actually discussed verbally between the parties involved – including why they thought this hare-brained idea was in any way justified; or how they could ever defend the $50,000 paid to Barbre to do almost nothing. One thing is evident from the documents: by the summer of 2009 Barbre was no longer at the public trough, although by then he had already collected regular monthly payments of $3000, totaling $48,000 with nothing to show for it.

Almost fifty thousand dollars. Squandered. Wasted. Flushed down a rathole and into the pocket of a Daly campaign contributor.

Does anyone in the County government even care about this total dereliction of responsibility and breach of the public trust? Do the folks at the Orange County Register care? Do you?

The Tom Daly Experience. The Longer You Look, The Worse It Gets

Just keep saying "fiscal conservative."

UPDATE: FYI, our document request only extended back to 2005.  Any retainer payments to GFR in 2004 are not included in the spreadsheet, below.

– GC

Yesterday we reported on the dubious contract between Tom Daly’s County Clerk office and a Republican PR man and campaign agent, Brett Barbre, that put a cool $48,000 in Barbre’s pocket, and produced no evident accomplishment. We also learned that Mr. B was not only a political supporter of Daly, but a big contributor, too – to the tune of one thousand bucks.

Today’s revelation is just as startling. Starting in the summer 2004 Daly made an agreement with an operation called Government Finance Research from Rocklin, CA, and it’s principle consultant, Peter A. Lauwerys, for a retainer deal that would cost the County $1695 per month, each and every month with special projects billed separately. Consider the implications: over twenty grand a year to some sort of research firm in order to do….well, nothing.

In the documents provided to us through our request for “all activity status reports” and “lists of work completed,” we have identified two principal GRS project proposals: one was to do a “push” survey to support Daly’s desire to expand his empire by opening satellite offices. The survey project as outlined in a September 2004 proposal would cost $16,200. Apparently that project was not finished per the original contract because in January 2005 Mr. Lauwerys proposed a nine-week extension that would cost the County another $14,000 – a whopping 86% increase. The survey was finally produced in April 2005 – a meager twenty-two page double-spaced report, including tables, plus photos and appendices.

One year and twelve more retainer payments later, in June, 2006 Lauwerys submitted a second proposal: $15,800 to “prepare and complete” the California County Recorder Association’s Statistical Report for 2006, a job that Daly apparently decided to take over from the County of Riverside. Why the County of Orange and not the Association paid for this “report” is unknown.

Finally in November, 2007 and another year and a half of retainer payments later, GFR did some sort of analysis of the benefits of “outsourcing” data entry clerks and found a savings. We do not know if Daly implemented the recommendation contained therein.

Since then two more years of monthly retainer payments have been made by the taxpayers of Orange County to the lucky boys at GFR.

The County’s invoice and billing records pertaining to GFR appear to be incomplete and somewhat confused. But one thing is perfectly clear: GFR has been receiving a monthly retainer of $1700 a month for over five years, and counting. The latest check was cut on January 15, 2010, so presumably the GFR spigot has not been turned off. Not yet, anyway.

The total payout to this operation to date has been $113,810, including the 2006 California Recorders Association project. But the billing for the original satellite office survey contract and its extension in 2004 and early 2005 seems not to have been included in the material that we received; that total was $30,200, as proposed.

Of course we question the utility of these projects as even necessary; Daly’s die-hard devotees would probably disagree. However what appears to be incontrovertible is the evidence of a complete and frivolous waste of public funds in the retainer payout to a Sacramento area firm to essentially do nothing – for over five years.

As with the Barbre contract we ask: what was the consultant selection process? Was this a no-bid arrangement? What are GFR’s unique qualifications that justify a retainer agreement, and for that matter, what are the Clerk/Recorder’s needs that justify it?

Maybe one of Daly’s supporters who have been pitching his fiscal conservatism can help us out here.

Daly To Drop Out of Supervisor Race; Art Brown To Jump In

A little while ago we received the following e-mail from Art Brown, the avuncular councilmember from Buena Park:

Subject: 4th District Supervisor

I just got off the phone with Tom Daly.  He is pulling out of the race for supervisor today and filing to run for his current position of Clerk-recorder.

As it had been my intent to run for supervisor in the past but stood aside for Tom I am filing for the supervisors race on Monday.  I feel with my experience in local government over the past 24 years and my record OCTA representing the 4th district that I am the best candidate for the job.

You what??!!

We have not yet verified this information, but it sure has the ring of truth. Daly’s desire for the job may have been tempered by the reality of abandoning a great paying job with no requirements, no performance standards, and no term limits. The idea of a rough and tumble campaign may not have been too appealing, either; but if Tom think he’s out of the woods, he’s may have another think coming: he has well-endorsed opponent in the Clerk’s race and eight years of office baggage to haul around with him.

But we will say this for Daly in parting the Supe race: AT LEAST HE LIVED IN THE DISTRICT.

And to Art Brown: thanks for the heads up and welcome to the party. Supes on!

Shawn Nelson on Tea Parties and the Paycheck Protection Initiative

Shawn, please explain to our readers how you got involved in the Tea Party movement?

Shawn: To begin with, there was no Tea Party movement that I was aware of at this time last year. Last March people across the country and certainly in Southern California were reeling from the constant beat down of small business people and this unending talk of raising taxes, bailouts, and the government taking over everything from the auto industry to banking.

As a small business man myself I began to sense there were a number of my peers that had not been typically politically active but had suffered through all they were going to take. KFI’s John & Ken were focused on the same issues that were troubling me and so many others and the talk began to be that they should have some kind of rally to protest. I thought this was the perfect time to do exactly that and that people that had never participated in such things might be ready to scream they wanted the nonsense to end.

I got together with a fellow business owner in Fullerton and we sent an e-mail with photos of other events that had been held in the Fullerton transit center to the producer for John & Ken. It took a few days but they finally responded and were psyched up about the idea and the location. 12,000 people later on a beautiful Saturday in Fullerton I realized we were on to something. The people that attended last spring’s Tax Revolt 2009 in Fullerton were folks that in most cases had never protested anything before. They were people that run businesses and raise families and are usually willing to leave the protest stuff to the activists. They were ready to engage and I was thrilled to see them in action. These were my kind of people.

It wasn’t until last summer that I remember folks beginning to use the word Tea Party to describe the anger of the people and the new activism but I was thrilled to see the movement was not just a one day thing.

Prior to last springs’ Tax Revolt, I hit the radar screen of the Tea Party folks because I stood up against and stopped an attempted retroactive pension spike in the city of Fullerton 18 months ago. Since then I have been seen as one of the few people that will actually take political risk when it comes to all things union run.

What are thoughts about the paycheck protection initiative?

Shawn Nelson: I  believe unions have a right to participate and should. My family’s business, Daily Saw Service (yes I am a Daily) has been union since just after World War II. Paycheck protection will end the strong arm tactics of the union presidents who can at a moments notice raise millions of dollars whether their members are in favor of an issue or not. Right now, unions can literally control the election process in many cities. counties and state wide by their sheer ability to take their members money and throw their weight around. If members had to actually cut an after tax check before a union boss could use their money, I for one do not believe the faucet would be stuck in the “on” position like it is now.

Are you going to the rally this weekend?

Nelson:I will be at the event on Saturday, 10:00 a.m. in the Fullerton Transportation Center. Please say hello to me if you stop by.

What are people looking for in a candidate?

Nelson: Fullerton is the same as the nation. Folks are tired of people who make their living in politics.  A career spent in government affairs is exactly the type of background that has Tea Party types furious with their election choices.

I think people are looking for someone straight forward and honest. Some one who as actually run a business and who is about results not measuring intentions and effort. I think people are tired of voting for a person just because he/she is moving to another office in politics. They want to vote for someone that will get things done, not accommodate those that make their living in the system.

It is too much to ask a guy that has spent his career stroking his political friends to break ranks and disappoint by cutting programs that are not needed, reducing staff when it is feasible etc? This is the reason I am willing to give up my law practice and run and the reason I think I will win. I will say no to the cronies at the county and particularly any union boss who places protecting salaries and benefits above the taxpayers need for service.

There are a lot of candidates moving or claiming to move their residence to run for office lately. Would you be willing to move to run for office?

Nelson: No.

Why not?

Nelson: I live right near where I grew up in a home one of my best friends was raised in. I chose where I wanted to live based on the community, my children’s well being, proximity to friends and family trails, parks etc. Where I chose to live had nothing to do with politics or running for office. I cant imagine being so self absorbed as to move my family specifically to run for an office in a district outside of where my home is. Maybe worse than that would be to pretend I moved but not actually do so. Anyway, gimmicks are not what I am about.

Why do you think you will win?

Nelson: It really is time for some bold changes in who runs, who we elect and what the people we elect have the guts to do. For too long we have elected supposedly conservative people and what we get is constant cow-towing to unions and interest groups that are close to bankrupting government at every level. We need people who are giving up more than they get from public service, not folks that win elections and get a raise.

Can we consider you a friend?

Nelson: Sure, I am a Friend of Fullerton’s Future.