The Fiscal Cliff

The Fullerton City Council is holding a special meeting tonight – a 2024-25 Budget “workshop.” No work will get done but there will be shopping going on as staff begins its formal press to raise a sales tax.

There is a lot of self-serving verbiage about how well our City staff has performed its tasks up ’til now, but then the hard reality hits because budget numbers can’t pat themselves on the back.

There are some harrowing numbers in the proposed budget – including a $9,400,000 draw-down from strategic reserves. This means of course, that the budget is no where near balanced as City Hall apologists like Jennifer Fitzgerald and Jan Flory claimed when they ran the place into the red almost every year.

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

Let’s let our City Manager, Eric Levitt tell the tale:

Financial Stability. The City has been able to over the last two years (for the first time in recent history of the City) to reach and maintain a 17% contingency reserve level. This budget maintains that reserve level; however due to an operating deficit, we will be utilizing one-time excess reserves this year and coming close to that 17% level in FY 2024-25 and below that in years beyond next year

Read. Weep.

The overall picture gets even worse as the levels of reserves slowly dwindle away. After this year Fullerton continues to be upside from $7.5 to $8.8 million each year until the end of the dismal decade. We are not favored with the running reserve funds balances.

Infrastructure is supposedly a big deal. Which reminds me of a quotation attributed to Mark Twain: Everybody talks about the weather but nobody does anything about it. But this year we are told, we can push get going on our deteriorating infrastructure along by borrowing! Once again let’s heed the words of Mr. Levitt:

I have also put together a strategy to increase that funding level to closer to $14 million over the next four years through the use of financing. However, there are both upsides and downsides to this approach which will be discussed with you in more detail at today’s presentation.

Now this should be a red flag: borrowing to perform maintenance, a basic accounting no-no. And what form will the borrowing take? Not a municipal bond, you can be sure, It would likely be by selling certificates of participation or some other dodge to avoid municipal debt restrictions. Here’s the table that shows our Maintenance of Effort (MOE) shortfall without financing.

Now we all know that interest payments are made by somebody, somewhere, and that somebody is you and me. We get to pay the interest on debt incurred by years of municipal mismanagement by people like Joe Felz and Ken Domer and Jeff Collier who get to sail off to a glorious and massively pensioned retirement at 55 years of age.

And finally, to circle back to the story lead, here’s a distasteful nugget carefully slipped into the City Manager’s report:

“Staff recommends City Council review options over the next year to stabilize the budget and ensure the City remains financially sound.

Jesus H. There it is. Not quite explicitly stated, but we know very well where this is going. Another general sales tax effort, just like the ill-fated Measure S of four years ago. The seeds for this have already been planted, of course, in a nasty little taxpayer-funded fishing expedition in the guise of a community survey. Last November I regaled the Friends with this slimy maneuver, here.

How did things get so bad?

By the way, this is exactly the same process City Hall rolled out four years ago. And we will be told By Ahmad Zahra, Shana Charles and Vivian Jaramillo that if we don’t pony up we will be morally deficient.

Well, good luck Friends. This is going to be a long year and you can bet the farm that we will be asked to pick up the check – again.

I Think I’ve Seen This Movie

It’s real expensive, but it sure is short…

When thinking about the Trail to Nowhere it seemed to me that I had seen this same sort of thing before. Then it struck me. Of course.

An expensive and unnecessary project that dragged out for years, and that was supposed to be paid for with other people’s money, “free money” as it is known in City Hall, I recalled.

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

I remembered because I wrote about it, here. The second elevator towers at the Fullerton train station, a project so ridiculously over-engineered, so expensive, so reliant on phony ridership projections and so expensive and mismanaged that it ended up raiding Fullerton’s own Capital Budget to the tune of $600,000. In the end no one knows how much was actually spent on that boondoggle when everything was said and done. But one good thing that came out of it was teaching me to appreciate how things are done in Fullerton, and how there isn’t one cent’s worth of accountability on the part of anybody.

If the Trail to Nowhere actually ever gets built but is way over budget, unused, unmaintained and falls into decrepitude, who will stand up to take responsibility? Not the City Council who approved it without question. Not City staff – the chief architects of this disaster in-waiting are already gone – nor will the City Manager, who will be gone as soon as his pension formula tops him out. None of the people stirred up to insult and harangue the City Council will be in evidence and the proprietors of the Fullerton Observer, if they are still around annoying people, will not be searching for those accountable. No one else will be, either.

Maybe the less said, the better…

Remember the multi-million dollar Poison Park intergenerational fiasco? Has anybody ever taken responsibility for that poster child of bureaucratic incompetence and political indifference? Of course not. That would be a horrible precedent. Fullerton.

The Compartmentalization Effect. Or Worse.

It’s a total waste of money, but it sure is short…

Now that the Council majority of Dunlap, Whitaker and Jung have done a 180 flip-flop and accepted the so-called Trail to Nowhere grant, it seems like a good idea to remind Fullerton about some things that the City still doesn’t want us to know.

Well, well, well…

About eight weeks ago – several weeks before the Council flip-flop – I wrote a post about the presence of test wells on the Trail to Nowhere. These wells were installed to test the levels of trichlorethylene (TCE). Not only were the wells situated on the trail but also farther south, in the middle of the street in the 300 block of West Truslow Avenue.

I offered the fact that no one can do this sort of thing on public property without permits from the City of Fullerton and that surely the Engineering Department or Development Services Departments has records of those encroachments. The scope of the actual TCE contamination has been known for 20 years or more, and the State of California and the Environmental Protection Agency have known all about it. So has City Hall, since groundwater contamination in north Orange County was the subject of a massive lawsuit involving the Orange County Water District. Plus, someone was installing test wells on City property.

I asked how was this contamination could be omitted from the City’s grant application to the State Natural Resources Agency.

The grant has finally been accepted by the City, but the problem remains. Two problems, in fact. The contamination is still there, of course, and so are the test wells – an issue not addressed in the project budget. But an even bigger question remains. Was the omission due to a management problem – complete compartmentalization of City departments? Or, worse was the problem deliberately ignored?

In either case Fullerton has a fundamental problem the cause of which is clear: complete lack of accountability that appears cultural. City Manager Eric Levitt was preceded by a long leadership vacuum in which City Managers like Joe Felz and Ken Domer were simply along for the ride – chosen, apparently for their elastic sense of responsibility. Yet, Levitt has been around for two years and seems to show the same flexible attitude.

If departments are sequestered behind opaque compartment walls, there is a failure of corporate leadership, and an inevitable decentralization that was, and is, a recipe for costly failure. That’s on Mr. Levitt. If City employees knew about the contamination issue and either said nothing or deliberately lied to the State, that’s a problem of employees who feel utterly secure in their behavior, knowing that consequences for bad actions is not a problem; this is on Levitt, too.

In the specific case of the Trail to Nowhere, the three councilmembers who flipped their votes have some explaining to do, and not just about a matter of opinion, good idea/bad idea. They need to explain how and why the City application for the grant omitted mention of a real and present issue, and also what their City Manager (who just got an 8% raise) is going to do about it. If they don’t they’re part of the accountability problem.

A Couple of Old Friends

I noticed two items that popped up on the Fullerton City Council’s December 19th, 2023 Closed Session Agenda, two things that remind us that in our town bad news never seems to go away, if it ever needed to happen in the first place.

One item had to do with Jacob Poozhikala, the slimy SOB who owned JP23 on the southwest corner of Harbor and Commonwealth.

Poozhikala is a poster child for the miscreant club owners in DTF who slithered in as our city government kept bending over backward to accommodate them. Pooz’s place of hospitality was probably the worst offender of them all – quite a feat. A shooting, alleged drug rape, overcrowding, operating without permits, etc.

Oh, I’ma hit that!

There wasn’t a legal barrier Pooz chose not to ignore. In the end he tried to shift the stalled permit process to a new owner – his nephew. That didn’t work. There’s a new establishment there now, but evidently Pooz isn’t through with us. I Can’t believe It’s a Law Firm to the rescue!

The other item involves our old friends from Air Combat.

In case you forgot, Air Combat, a lessee out at the airport, sued the City for violating its lease agreement, an incompetent ploy by our wonderful Airport Director, Brendan O’Riley to push out Air Combat and install a new tenant whose use was illegal.

Gravity asserts itself…

Ultimately a jury found the City at fault and awarded the aggrieved party $1.2 million. Of course nobody suffered any consequences, although the man in charge, City Manager Ken Domer eventually was fired and is now plying his dubious abilities in Laguna Beach.

Domer-Decorations
Hitching to Willow Springs…

I don’t know what is still being litigated here, but it’s nice to see familiar faces, isn’t it? Jones and Mayer presided over this fiasco, too, but unfortunately for us taxpayers, Dick Jones ran up against Sheppard, Mullin, Richter, a real law firm.

Part II: Is the “Trail to Nowhere” Poisoned?

It could be. Last post I described how the the UP Park was contaminated and shut down for remediation just after $2 million were sunk into building a park. Nobody in the City bothered to do an Environmental Analysis.

I asked, rhetorically, whether the rest of the long UP right-of-way had been subsequently tested for toxins in light of the fact that trichloroethylene (TCE) had been detected on the property at 311 South Highland Avenue, a property adjacent to the proposed Trail to Nowhere. It seems that some years ago the Hughes Corporation used the solvent to clean up the circuit boards they made at this location, and the EPA still regards it as an active site.

A trail runs through it…

A little digging uncovered the fact that ground zero seems to be the west end of the property where testing has been periodically done in the area of a likely dump site for the nasty TCE toxin. Apparently there are several monitoring wells located in the yellow areas circled in red in the image below.

Please note the proximity to the Trail to Nowhere of the wells in the lower left. 15 feet? 10 feet? 5ft? Surely somebody in the Parks or Engineering Departments gave thought to this when the Trail to Nowhere concept was developed; when the grant application was made; even when the proposed project budget was laid out. No? If not, why not? How could they not have known? The EPA has recognized this as a site of TCE ground water contamination where a toxic plume is heading southward – under the proposed trail.

At this point questions are starting to pile up. Questions that may have uncomfortable answers.

We are fortunate that Messrs. Dunlap, Jung and Whitaker have put the kibosh on the silly and wasteful Trail to Nowhere proposal for other common sensical reasons. And yet there remains the problem about lack of disclosure to our elected officials in their decision making process, and perhaps even in the grant application itself.

The Mysterious Police Report

FFFF has just received an interesting document from an anonymous, yet seemingly informed source.

Something happened after a council meeting last year that caused the Fullerton cops to take a police report and to inform the councilmembers, obliquely, what they were doing – as if the council already knew. So what was it? Our informant tells us that Ahmad Zahra, the perpetual victim, filed a complaint against Fred Jung for some sort of assault, or threat or something. That part isn’t clear.

Looking down from above…

The fact that this police report never went anywhere means that there was nothing behind it, and in fact that Zahra probably and deliberately filed a false report to begin with. That would be a crime, of course, if anybody is keeping track, and well within broadly described moral compass Zahra has drawn for himself.

FFFF could do a Public Records Act request to get the documents, but I have a sneaking suspicion they are long gone, rather like the records surrounding Zahra’s battery and vandalism case.

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 Joe Felz Case and the Culture of Corruption

Before we publish the unedited video of our former City Manager, Joe Burt Felz, arrested for drunk driving, only to be taken home and tucked into bed by his own MADD recognized cops, let us share some highlights of the video as shared and analyzed by FFFFs own Joshua Ferguson. Ferguson was the target of a vindictive and highly expensive lawsuit courtesy of the City’s “I Can’t Believe It’s A Law Firm” of Jones and Mayer. And so it is appropriate for Joshua to remind us what happened – and to remind those not paying attention that the Felz catch and release was a far from isolated case of malfeasance by our police department and our esteemed leaders in City Hall.

There is no no doubt that Danny “Gallahad” Hughes lied to the City Council about Felz, and that the cops knew doing the right thing was professionally dangerous.

As Ferguson says, if there is a lesson to be learned in this long train of corruption, you can be sure that Councilmen Ahmad Zahra and Jesus Quirk Silva haven’t learned it. They voted until the bitter end to keep the moribund lawsuit against FFFF staggering along.

The Case of the Florentine Case

It’s true that the gears of justice grind slowly and no where is that more true than in the case of the Florentine forgery. You remember that, right? Joe Florentine, proprietor of the family amalgamation of restaurants on the corner of Harbor and Commonwealth deliberately altered an official planning document so that he could pursue the Conditional Use Permit that he had never bothered to get. That was in January 2020.

Jail is for the little people…

The document was changed to make it look like Florentine was the owner of the property simply because he had a business there. His specious legal theory was backed up by City Attorney Dick Jones, who had his own conflict of interest in the matter and never should have been involved in the first place.

Poor Joe. A victim of circumstance…

To their credit, the Planning Commission refused to deal with the matter and the application was dropped. But the forgery was not forgotten, as desired.

Domer-Decorations
Hitching to Desert Center

The real owner of the building, Mario Marovic became involved in a lawsuit with the City over this complicity by both the City Attorney and the City staff – most notably City Manager Ken Domer and Planning Director Matt Foulkes. When that case was settled to Mr. Marovic’s satisfaction ($25,000 courtesy of you and me) he proceeded to file a criminal complaint with the Fullerton Police Department.

That was over eight months ago.

Finally, we hear from folks at City Hall that the case is finally making its way to the District Attorney. Why it has taken the sleuths at the FPD almost nine months to refer this case to the DA can only be explained by a reluctance of the cops to make their compadre public employees look bad. The evidence was right there, on video. The perp admitted what he had done. A blind man could have processed this thing expeditiously. Well, fair is fair, I guess, and Fullerton’s City Managers have never once said or done anything to correct the rampant corruption in the police department.

Matt Foulkes. The spin out left casualties…

Well, the hapless boob Domer is gone, kicked out after several years of gross incompetence and mismanagement; Foulkes fled to Buena Park – a step down – but presumably a step ahead of the axe. Both should be damn glad this issue hasn’t come up sooner because both were complicit in the forgery – and that in itself is a felony.