New Taxes Are Coming . . . And Far Worse

The end comes soon.

We hear drums, drums in the deep.  They are coming.

They are coming.

Fullerton’s general fund hemorrhaged cash over the last half decade, losing tens of millions of reserves, and now stands at the bare legal minimum.  This blog, and others, warned Fullertonians of the looming fiscal cliff for some time, only to be dismissed by the powers that be as the hateful screed and wails from malcontents.

That cliff is here.

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One of the Worst Decisions

Your Fullerton City Council majority — consisting of Fitzgerald, Chaffee, and Silva — made one of the worst decisions in recent memory last night.

Desperate to protect their pensions, and to keep pension contributions at a minimum, the Fullerton Police Officer’s Association (FPOA) approached the City about extending their contract.  They voted yes.

CalPERS pension costs are skyrocketing as a result of poor investment returns, and far too optimistic rates of return.  To “correct” this problem, CalPERS is demanding the City of Fullerton pay more in the years ahead.  The table shows pension costs for FPOA members which consist of Police Officers, Police Corporals, Police Sergeants, and a small handful of non-sworn civilian employees, such as Police Dispatchers.

The table above uses the current fiscal year as a baseline (on the bottom row) to get a feel for the pain ahead.  Beyond the current fiscal year, the projected pension costs for FPOA employees will cost Fullerton residents — at the very least — an additional $12.3 million through June 2022.

That’s $12.3 million of new money the City of Fullerton doesn’t presently have.

The timeline of the FPOA contract status is illustrated above with the agreed to “concessions” which are disingenuous at best.  As noted, the contract extension runs to 2021 at the earliest, and possibly 2022 if FPOA decides to exercise that option.

You might be thinking to yourself, wait a minute, if their current contract expires June 30, 2019, why not negotiate a new contract at that time to get a better handle on the escalating pension costs?  That’s precisely the problem.  Instead of acting in good faith for Fullerton residents, council members Fitzgerald, Chaffee, and Silva rolled over to satisfy the public safety unions that paid big money to help them get elected.

The worst part about the FPOA contract, and the extension handed out last night, is the City cannot reopen negotiations to combat rising pension costs.  The promises are now etched in stone through 2021 or 2022 regardless of what CalPERS does.

All very troubling, not just for basic principles, but because the California Supreme Court is expected to rule in 2018 on the so-called “California Rule” which prevents government agencies from reducing already promised pension benefits.  The court’s decision will carry significant implications either way.  If they overturn or modify the “California Rule,” Fullerton could have sought to renegotiate FPOA pension benefits upon the expiration of the contract in June 2019 and saved Fullerton residents millions of dollars.  Conversely, if the “California Rule” is upheld, CalPERS will likely respond by further lowering the discount rate (assumed rate of return).  A lower discount rate will cost the City of Fullerton tens of millions more in the coming years.

At last night’s meeting, the introduction of a new financial forecasting tool was presented earlier in the night, before the FPOA extension came up for a vote.  The gentleman making the presentation noted that his model predicts a U.S. recession in the year 2020 — right in the middle of the FPOA extension.  I was at the meeting and brought this up when it came time for the FPOA vote.  I also pointed out that Fullerton’s brand new City Treasurer, who started on January 8th — just eight days prior — should be given a chance to review the FPOA proposal and offer his thoughts to the City Council.  After all, the existing FPOA contract didn’t expire for another 18 months, so what’s the rush?

Council member Sebourn registered his opposition to the FPOA proposal, and then, without another council member saying a word, it passed with a 3-2 vote, Sebourn and Whitaker voting no.

Last night’s recklessness puts us a couple steps closer to municipal bankruptcy.  When the Library is forced to cut hours or close completely, when Parks and Recreation has to shutter the community center, when Public Works has to stop paving streets and repairing broken water mains, you now know exactly which three council members to thank.  It was failure on full display.  As usual.

A Trip Up and Down Memory Lane…AKA The Pine Wood Stairs.

“Pine Wood Stairs” looked a lot better in concept than in reality…

Back in May, FFFF documented the lamentable construction disaster of the Pinewood Stairs, a $1.6 million boondoggle created by City staff, whose construction defects were so bad and so plentiful that a reasonable person might even inquire about how we could get our money back. In fact, City Councilman Sebourn mumbled something about getting our money back, then said he was just kidding. Bruce Whitaker said nothing at all. On Facebook City Hall bureaucracy advocate Gretchen Cox cooked up a story about some alleged City “report” that exonerated all concerned.

Nine months have passed and I thought it might be interesting to revisit the site of the fiasco and share a visual tour to take another look.

Here’s a typical example of a project with nobody in charge and nobody who knows what they’re doing.

The caisson footings with the wood posts are almost all cracked; some of the posts aren’t even vertical. Some of the caissons are out of plumb, too.

Aspects of the construction reveal building that was cobbled together to make the contraption fit together.

 

Now, as then, the wooden rails are extremely rough and splintiferous.

Rough cut

The lack of quality workmanship, structural and cosmetic remains in evidence. And those fraying cable ends? Why, they’ve been taped! Of course the tape is falling off.

Simple things – like removing the cardboard tube form from the caissons seem to have eluded the City’s crack inspection team. Crack. Get it?

Basic design oversight problems were jerryrigged and never addressed properly at all.

Weird features that are nothing but potential for risk management headaches and taxpayer payouts are still much in evidence – like this trip hazard. Shrug, indeed.

Loose cables. Down the hill goes the toddler.

As usual, maintenance of  public property remains a challenge for the City. Loose ends are not their specialty.

How hard is it to keep a tree alive? Don’t bother asking. You won’t get an answer.

The effects of the inevitable pedestrian shortcuts betray both design and maintenance failure. It looked better on paper.

We have been assured by people who don’t know what they are talking about that everything was just grand about this grand failure; but, the evidence did and still does point to the exact opposite: a project that suffered from fundamental design shortcomings, incompetent and careless construction, a construction manager whose only function seems to have been to cash our check, and inspectors who were (and probably still are) a disgrace to their profession.

As you can see driving up Harbor, the City is now building its splendid new entry to the park – including a bridge – costing millions and accomplishing nothing but wasting park construction resources. Apart from the obvious uselessness of the project I have to wonder if it will suffer from the same dereliction that informs the so-called “Pinewood Stairs.” Nothing leads me to hope for the contrary.

Good Bye and Good Riddance

Ed Royce, holding forth to a mesmerized audience. (Image pilfered from Voice of OC)

The Voice of OC is reporting that our congresscritter, Ed Royce has had enough congresscrittering and is quitting his seat next January. This will be seen a great news for the Democrats who were targeting this seat due to a recent increase in their own party’s registration, and who believe that the S.S. Trumptanic vortex will suck all sorts of Republicans down to Davey Jones’ Locker.

I don’t know about that, but I do know it will be wonderful to get shed of Ed. Set aside Royce’s dutiful loyalty to our new, budget-busting  security state and his willingness to vote for tax bills he hadn’t read. Instead let’s focus on his dismal record meddling in the local political affairs of Fullerton.

For almost 25 years he has backed city council (and Legislature) candidates of the worst Republican stripe – dimwitted and vapid RINOs like Pat McKinley Leland Wilson, Julie Sa and Mike Clesceri; creepy slouches like Larry Bennett; sleepy nincompoops like Don Bankhead; a useless carpetbagtress like Linda Ackerman;  and let’s never forget: Dick Jones, Doc HeeHaw, the clownish donkey from Galveston who seemed to take joy in bullying his constituents and braying utter nonsense. Royce could not have cared less about sticking us with this parade of non-entities. He obviously didn’t care if Fullerton developed no new generation of real conservative leadership. What mattered was to elect hollow shelled Republicans that posed no threat to him, and to keep potential Democrat challengers from becoming potential in the first place.

Well, so long, Ed.

The Waiver

Gravity asserts itself…

Recently FFFF has been chronicling the goings on at the Fullerton Airport, specifically a lawsuit by a former tenant, AirCombat USA,  and the non-aviation commercial use by another tenant, Hangar 21, who is desirous of expanding its party venue. The two issues are only conjoined only because Hangar 21 was recommended by staff to move into the space that CombatUSA was kicked out of.

With enough fuel the party will get off the ground. An aviation use.

On Tuesday, December 5th, the City Council reviewed and approved the selection of Hangar 21 to occupy the space and signaled its intention to change the Zoning Code to legalize what is obviously not permitted under current zoning regulations.

The issue of Federal Aviation Administration approval of hospitality use was raised by Councilman Greg Sebourn. Fullerton Airport Manager Brendan O’Reilly, in a convoluted statement, finally got around to claiming that he had received a “waiver” from the FAA for using the airport for parties. He didn’t produce this document. Maybe we can help.

We know that back in 2014, O’Reilly communicated with the local branch of the FAA seeking advice on establishment of a non-aeronautical use in a hangar at our airport. Who this proposed lessee was we don’t know because we don’t have the attachments described in the written response from an LA FAA dude,  David Cushing. It may have been the establishment of a party venue known as Hangar 21 Venue.

Here’s what the FAA had to say:

Well, I don’t know about you, but I can read English pretty darn well. Once you strip away the cross-bureaucracy congratulations and the double-talk, the message is crystal clear: raise money to support the airport, but continue to keep non-aeronautical uses out of aeronautical areas. I don’t  know which part of an airport is non-aeronautical, but an airplane hangar ain’t it.

Is O’Reilly’s FAA waiver in reality the Cushing letter of October 2014? I can’t be sure, but that’s what the City provided when asked for documentation of FAA approval. If it is we may be heading for turbulence up ahead.

 

 

Airport Saga Continues. Does “Hangar 21” Conform To Zoning Law?

Gravity asserts itself…

In my previous post regarding recent doings at the Fullerton Airport I described a big lawsuit by a disgruntled former tenant, Air CombatUSA, and also remarked upon the propriety of the use of airport property as a party venue called “Hangar 21.” The implication was there might be some sort of Federal Aviation Administration issue. One Friend, “Order 5190.6B, Chapter 9” provided the name and place where such issues as equality access to aviation facilities are spelled out by the FAA.

Getting prepared for takeoff…

But then another of our Friends, “Little City Planner School Graduate” questioned whether such use was even legal per the Fullerton Municipal Code. I didn’t have a clue. So I looked it up.

Per Fullerton’s Zoning Map, the airport is designated “P-L,” i.e., public land. Municipal Code Section 15.25 describes permitted and CUP uses for the P-L designation. Here they are:

Bookmark15.25.020.  Permitted uses.
   The following uses are permitted in a Public Land (P-L) zone, subject to the provisions of this chapter:
   A.   Flood control reservoir areas.
   B.   Public parks and open space areas.
   C.    Public educational facilities.
   D.    Public buildings including administrative buildings, libraries, fire stations, reservoirs, and maintenance facilities.
   E.     Public parking facilities.
   F.     Public transportation facilities.
   G.    Public golf courses.
   H.    Other similar public facilities when in conformance with the purpose of this zone when recommended by the Director of Development Services, and approved by the City Council.
(Ord. 2982, 2001)

Bookmark15.25.025.  Conditionally permitted uses.
   A.   The following non-public uses or activities are permitted in a Public Land (P-L) zone when approved by and subject to conditions of the City Council:
      1.   Commercial stables, subject to the development requirements, provisions and conditions of Subsection 15.55.030.C of this title.
      2.   Open-air marketing activities including, but not limited to such activities as a cooperatively sponsored farmers market or swap meet.
      3.   Commercial agricultural production and non-retail plant nursery operations excluding cannabis cultivation as defined in Chapter 15.04.
   B.   A special event may be permitted on a property with a Public Land (P-L) zone pursuant to Chapter 8.71 or Chapter 9.12 of the Fullerton Municipal Code.
(Ord. 3227 § 3, 2016; Ord. 2982, 2001)

You will notice that there is no provision for a private party venue, no matter how tenuously tied to a legitimate “public transportation” use such as helicopter rides.

So what gives? Hangar 21 as a party spot seems to be in violation of the Code since it is not consistent with the uses described above, and since the City Council has never even tried to legitimize it via 15.025.020(H).

Fish This: Burning the Budget

Some things in life are perfectly predicable.  Things like physics and math.  They’re not really that difficult to understand, but some people in our society are a little slower than others.

For example, next week there will be idiots who put a frozen turkey into a vat of hot liquid fat because #Merica.  Despite many public service announcements to the contrary, stupidity will have its unavoidable and predicable consequences.

Tonight Fullertonians will miss out on the discussion taking place behind closed doors at City Hall concerning the state of the city’s budget.  Voters won’t get to hear about the new contract negotiations designed to help the massive multi-million dollar structural deficit, the $100,000,000 in deferred infrastructure maintenance, or the equally massive unfunded pension debt.  Instead, we’ll get a null report from The Other Dick Jones ™, and the facade of all being well will continue into this year’s planned First Night festivities.

Like so many idiots with a tank of propane, recent City Councils had fair warning of the current financial crisis.  The math just isn’t that hard to understand.  Every year, every single year, since each of their elections, Fullerton has spent more from the general fund than it has taken in.  Tens of millions of dollars in reserves have evaporated.  *POOF* gone, without a trace.

At the current rate, Fullerton may be bankrupt in two years.

This Thanksgiving, while you’re enjoying your non-idiot prepared bird, I want you to remember tonight’s secret city council meeting.  I also want you to remember a meeting held just last year.

Just last year, the council authorized the largest pay raises for staff in a decade.

“The budget is balanced!” — Jennifer Fitzgerald

“Fullerton is in excellent financial shape!’ — Jan Flory

Well, the math simply doesn’t lie.  The budget was not balanced and the city was not in excellent financial shape.  Jen and Jan dunked their frozen bird and lambasted all the chronic malcontents who protested their fine stewardship.

*POOF*

Like that, Joe Felz hit a tree, and their financial bird exploded, the raging predictable disaster apparent for all to see.

Tonight the Fullerton City Council will likely authorize reducing pay and benefits for city employees, just in time for the holidays.  When this is over, some employees will have their salaries reduced or their hours cut.  Others will simply lose their jobs.  Many of those individuals are good people who do good work. This isn’t their fault, but it will be their house that gets burned down and it will be their life that gets ruined.

Now Jen and Jan, two of those responsible for dunking this turkey?  Don’t worry.  They’ll be fine.  Jen just gave herself a $9000 raise and Jan retired.

Seems just, don’t you think?

Who Is Paulette Marshall?

Good question. She is the spouse of Fullerton Councilman Doug “Bud” Chaffee, and has often been considered the brains of the operation.

She is also rumored to be a future council candidate from the 2nd District once that district comes up for election – now slated for 2020. Here is Ms. Marshall attending an underpass opening ceremony. She’s the one over on the left wearing the purple jacket.

Here’s a close up.

But wait. Why is she even there? She doesn’t hold any official position in the city. And even more importantly, why is she wearing a City of Fullerton badge bearing the official city seal?  How did she get that badge and why is she wearing it?

A cynical person might suspect that Ms. Marshall is posing in a photo op like this for future campaign material, projecting the subliminal message of “incumbent.” But that would be extremely unethical and really hard to credit.

Felz Gets a Trial Date

I’ll drink to that!

It’s been almost one year since former Fullerton City manager, Joe Felz, embarked on his infamous Wild Ride after an evening of drinking at election night parties in the Downtown Fullerton gin mills he worked so tirelessly to protect.

We all know how the drive home went wrong: Felz lost control of his vehicle on Glenwood Drive, drove over a tree, and tried to get away – in violation of the law. We also know that the Fullerton cops gave Joe a free pass and a ride home, many believe on the instructions of outgoing Cop-in-Charge, Danny “Gallahad” Hughes. That would be a crime, too – obstruction of justice, which is exactly what is asserted by District Attorney investigator, Abraham Santos.

Anyway, Felz has been charged with drunk driving by the DA, but the collusion to protect the City Manager has not been addressed and it never will be. That would set a very bad precedent, wouldn’t it?

On January 16, 2018 it looks like Wild Ride Felz is going to get his day in court as he has pleaded innocent to the charges. And since there is no evidence of his inebriation we all reckon the deal will be “dry reckless” driving, and case closed.


Rest assured, FFFF will be present to record and report the court proceedings.