Derek Smith and the Anaheim Cabal

Backscratching is fun – with other people’s money…

This blog has introduced Mr. Derek Smith to our friends. He is the appointee of “Doctor” Ahmad Zahra to the so-called Budget Sustainability Committee. His qualifications? Well, none are apparent. But we do know that Smith is (or was) the political lobbyist for the union that organizes cannabis store employees.

Cannabis Kitty Jaramillo

We already knew that Smith’s union was bankrolling a PAC for the benefit of Cannabis Kitty Jaramillo’s scampaign in 2024 to the tune of $60,000, $4000 of which went to The Councilwoman Shana Charles Self-improvement Fund.

And now thanks to detailed reporting by Mr. Duane J. Roberts, a true citizen journalist, we know that the union in question, UFCW Local 324, was up to it’s neck in schemes to bring legal cannabis to Anaheim. Roberts’ post is a must-read, for it details the close alliance between Anaheim’s crooked cabal and the union. For several years Smith and his union worked closely with disgraced Anaheim Chamber of Commerce head Todd Ament, Anaheim fixer Jeff Flint, and the Mayor, Harry Sidhu.

Ament, Flint, and Sidhu (graphic by Duane J. Roberts)

For the cabal the dope incentive was money, and lots of it. Money that would go to the cabal leaders, the Chamber of Commerce, and campaign funds of the later-convicted Mayor. For Derek Smith’s union, the promise of a Labor Peace Agreement (LPA) that would eventually cover even part-time workers was the goal.

Belal Dalati wanted in. And then out.

First this association of strange bedfellows tried to get the City Council to go along. Then they began the process to put the issue on the ballot, with proposals written by the cabal, and then by the lobbyist for the Long Beach dope cartel; they were submitted by a UFCW Local 324 employee, and then a local realtor and insurance salesman, Belal Dalati, respectively. Both were eventually retracted, but not without threats, according to Roberts.

Rafiei not looking so hot…

Left unreported by Roberts was the role of Melahat Rafiei, the acknowledged queen bee of OC dope lobbying, and a player deeply involved with Anaheim’s cabal. She later went to jail after she was busted by the FBI for wire fraud; Harry Sidhu did a prison stint, too for destroying evidence; Todd Ament pleaded guilty to fraud and his buddy Jeff Flint left town – for a while. Nice people, right?

While none of the Anaheim MJ activities were illegal, at least as far as can be discerned, the whole episode gives off a real bad smell; and in the middle of it was Derek Smith’s union.

Anybody who thinks Ahmad Zahra was ignorant of what was going on in Anaheim and with Rafiei (whom he recommended to at least one Fullerton businessman as a necessary contact) is pretty credulous. And his appointment of Derek Smith to the budget committee comes into sharper focus.

All that transparency can give a lad a headache…

The fact that the self-righteous clamorers who have decried the appointment of Tony Bushala to this committee have diligently ignored the appointment of Smith is telling. Bushala’s political involvement is a disqualification; Smith’s political history is assiduously ignored – just like the Fullerton Observer Sisters relentlessly ignored the Scott Markowitz conspiracy and the massive contribution by Derek Smith’s union to a pro-Jaramillo political action committee.

Both Zahra and Charles are beholden to the dope lobby, but they still need another vote to revive the 2020 marijuana ordinance approved by Jan Flory, Jesus Quirk-Silva, and Ahmad Zahra. They won’t get it this year.

Derek Smith and the Budget Sustainability Committee

Reading all that Das Kapital stuff will give a young lad a headache…

The Fullerton Boohoo claque has made a big deal about how Tony Bushala is unfit to be on the ad hoc Budget Sustainability Committee. His disqualification? He is involved in politics. He is a “rent seeker” in the words of Tender Young Elijah Manisserro, who remarkably is not ashamed at being a dedicated Marxist in the 21st Century. Bushala has a conflict of interest, these people keep bleating.

Bye…

Tony’s real offense is that he has money and is willing to spend it to keep aggressive imbeciles like Cannabis Kitty Jaramillo from getting into office; and for that he has gained the animus of the Damascus Dodger, Ahmad Zahra and his small collection of sycophants.

But Mr. Bushala is not the point of this post. Rather it is another member of the Committee, one Derek Smith.

Not a lobbyist, I tells ya…

Mr. Smith is Ahmad Zahra’s personal appointee to the group, and has a lot of interest in Fullerton’s budget. Why? Because he is the political lobbyist for the local union that represents marijuana dispensary employees. He is part of a coalition that has been trying to get these places legalized in Fullerton for years. Their point man is Ahmad Zahra who doesn’t seem to see a contradiction between dope use and his alleged Muslim convictions.

Smoke it down, Kitty…

In the the 2024 District 4 election Smith’s union funded a political action committee dedicated to electing Cannabis Kitty. He funded it to the tune of $60,000 which included a $4,000 payment to Andre Charles, husband of councilmember Shana Charles. How come? To elect the pro-cannabis candidate who would re-instate the old dope law repealed in 2021.

That’s a lot of political activity, activity that has received zero scrutiny by the Fullerton Observer Sisters, Sharon and Sickia. Come to think of it, the delicate rose petal Elijah Manissero has never mentioned it either. How’s that for hypocritical “transparency?”

Moreover, Brother Smith is not an accountant, or a business owner, or a entrepreneur. Instead, he is a dedicated union functionary, virtually the last person I would want on a municipal budget sustainability committee. The apex of Smith’s business experience has been blowing through $60,000 of his members’ dues on Jaramillo. Did he know about the fraudulent Scott Markowitz campaign? I wonder.

Applying the rhetoric and logic of Fullerton’s boohoos would immediately disqualify Derek Smith from the Budget Sustainability Committee. Will anybody apply it? I wonder.

In the meantime Ahmad Zahra the eager messiah of marijuana in Fullerton has once again raised the topic. The issue isn’t dead as far as the dope lobby is concerned.

When is An Audit Not An Audit?

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

When a misleading City of Fullerton agenda proclaims: “Introduction of Special Fiscal Audit – Grant Thornton Risk Advisory Services.”

I assumed, wrongly, that somebody had already been hired to look into the misdirection of funds into the General Fund Reserves that should have gone some place else, a fact that has caused considerable embarrassment to our severely and habitually underinformed City Council. I also figured this firm was going to talk about what they found.

But no.

A Manfro all seasons…

In fact, the firm of Grant Thornton Risk Advisory Services were brought before the council by the City Manager, Eddie Manfro, simply to make a sales pitch for their services. And what services.

Step one is to be some sort of forensic accounting exercise, a fishing expedition to explore the world of Fullerton’s accounting regime to see what, if anything, is amiss. Nobody said anything, but there must have surely been some internal squirming when the company rep kept using the word “fraud.” And that included our Finance Director and recently anointed City Treasure, Steven Avalos who was sitting in the pit.

The second phase of GTRAS’s endeavor was to explore how the City might improve efficiencies, save money, and help address Fullerton’s grim fiscal situation. Why this all-purpose company was suggested for this task seems odd, the two tasks having nothing to do with one another.

I’ll address the first project first. Why is it necessary at all to delve into Fullerton’s accounting with an audit? We have been told that there were seemingly honest bookkeeping errors – embarrassing, sure and it did alter the already dire projection of General Fund reserve draw downs, but fear not, all was well. The councilmembers kept talking about transparency and public trust, but what does that really mean? Is this serious or just a political pantomime?

Consider the following facts. GTRAS was picked by the City Manager under his own authority and just brought to the council to give them a chance to ratify the decision. That’s a sole source contract, and the public has no idea how much they will be paid, and won’t without a PRA request. Will added scope to the $100,000 contract be reviewed by anybody except the City Manager and Steven Avalos? If some sort malfeasance were actually discovered – purely by accident, of course – would offender(s) names be published? Is any of this going to discussed in Closed Session because it touches on employee issues? Who knows? The Council approved the deal, without knowing whatever it is or might be.

As for the second part of GTRAS offer, the City Manager announced that would be returned to the Council for approval of a $130,000 deal. At least someone might get the chance to ask some pertinent questions, such as why is this “economic development” effort needed, given that Fullerton has highly paid staff who enjoy employment as economic developers. What have these people been doing and why do they need outside help. These people have been on the payroll for years. What have they accomplished?

Economic Development is my specialty…

Sunaya Thomas, in charge of economic development, was in attendance. Her presence at the meeting was an almost begging of the question about her own success in this endeavor, the effort of bureaucrats that never even pays for itself.

I wonder if GTRAS will actually suggest something that might help, outside of taxes. Personally, I doubt if their suggestions would even pay for their own service. That we will probably never know because no one will talk about it. This will be an agreement with no metrics for success or failure, just more electronic billboards and hotel occupancy taxes. Staff reductions? Getting rid of all our brand new “firefighters” and ambulance drivers? Don’t be ridiculous.

Anyhow our brave Council voted unanimously to proceed down this dark corridor, protesting their sincere desire to pursue those most elusive prey: transparency and public trust. No one said much about accountability. They never do.

Yes, He Is A Film Maker!

Some have questioned Dr. Ahmad Zahra’s claim that he quit his life as a man of medicine for a life as a filmmaker. But this claim is no longer in doubt.

A Friend has forwarded this image of the extraordinary Ahmad Zahra that clearly shows the good doctor from Damascus as a big time Hollywood cinematic auteur.

Hurry up, rent is due on this thing…

So there you have it. Who are we to argue with our own eyes?

The Doctor is In

Some skeptical folks in Fullerton have long wondered aloud if 5th District Councilman Ahmad Zahra is really a doctor. His acolytes and camp followers in the Fullerton Observer call him “doctor” and he doesn’t correct them. Still there’s no evidence that he ever practiced medicine, so the skeptics had some reason to wonder, given Zahra’s ever shifting “origin narrative” and omission of salient features of his past – like the gay man’s stop over in Little Rock, Arkansas to marry…a woman.

But now the truth will out. The FFFF Research Department has done a deep dive into photographic evidence and discovered unequivocal proof of Zahra’s doctorhood.

Unless it was Halloween.

Fullerton’s Big Log

No, it’s not the Fullerton Observer itself, but it is a story related by Stikia Kennedy on that unfortunate publication’s blog. The post seems to have vanished, as is sometimes the case when it suits the publisher/CEO. In this instance it caught the attention of Mr. F.L. Olmstead before it was dispatched; and he sent it to me.

Mr. Hallstrom

It seems that a local resident named Jensen Hallstrom has been jumping a short wrought iron fence to make homemade repairs to the big slab of redwood dedicated to veterans. It’s in Hillcrest Park not far from the Isaac Walton lodge.

Mr. Hallstrom has been seen at local City Council meetings sharing his personal efforts to repair damaged and missing names. That was was a big mistake, for apparently he has been issued a cease and desist letter from the City, to and from his trespass and his activity.

Not asking real questions is a great way to avoid getting real answers…

Ever the intrepid partisan, Shakira Kennedy seizes upon this David and Goliath tale to spin a yarn about it is somehow the result of the ethics of the Council majority, honesty, transparency and yakkity yak yak yak. It doesn’t seem to have occurred to Kennedy that Fullerton parks staff just hates it when private citizens do unsupervised stuff in City parks, and no political interference is necessary. That fight’s been going on for 35 years, without a peep by two generations of Observers.

Anyhow, Mr. Hallstrom should also know better. He got into a squabble with the City a few years back over the impromptu and unauthorized “native garden” he planted along the Hiltscher Trail. This latest effort seems to suggest a fundamental immaturity on his part.

Giving truth the middle finger…

Shiitake Kennedy’s older sister Sharon even put in an appearance in the comments to decry the event and wonder aloud if Jones and Mayer didn’t have anything better to do than to get the City involved in more legal activity in which they get to bill more hours.

Now that’s ironic. Did either of the Kennedy’s raise an objection about the legal costs associated with the idiotic lawsuit against this blog that was approved by a liberal Council majority? Did any Observers call out the enormous waste of legal fees involved in the foolish and Air Combat lawsuit caused by an incompetent Airport Director who couldn’t understand his own lease? Of course not.

Maybe news will break out.

Accountability doesn’t apply to the left-leaning Democrats favored by the Kennedy Sisters whose gaze becomes myopic when dealing with the likes of Ahmad Zahra, Jan Flory, Jesus Quirk Silva and their ilk.

Why this post was pulled is anybody’s guess. Maybe it will mysteriously pop up in the Register.

Don’t Worry, Be Happy!

The City of Fullerton has issued a press release to address the recent revelation that $10,000,000 was erroneously counted in general reserves when it really belonged in special restricted categories. Peruse this soporific and condescending verbiage and see if you can read a single reference to City employees having made a mistake, honest or otherwise.

Alternatively, take an Ambien and relax. Everything’s gonna be fine.

City of Fullerton Budget Update

At the March 17, 2026, City Council meeting, City staff presented an agenda item titled “Second Quarter Financial Report for Fiscal Year (FY) 2025–26 and Mid-Year Budget Adjustments.” The purpose of this item was to provide an overview of the City’s financial position through mid-year FY 2025–26, report on revenues and expenditures from July 1, 2025, through December 31, 2025, and present the updated financial position based on the finalized FY 2024–25 Annual Comprehensive Financial Report (ACFR). Following this presentation, the City would like to provide additional context and clarification to support a clear and shared understanding of the information discussed.

The City Council adopted the Fiscal Year 2024–25 budget on June 4, 2024, which included a planned structural deficit of approximately $9.4 million. As part of that budget, it was understood that the City would utilize a portion of its reserves—similar to drawing from savings—to balance the difference between revenues and expenditures. This approach was discussed publicly during the budget adoption process.

Throughout FY 2024–25, the City took steps to manage costs, including holding vacant positions and limiting expenditures where feasible. As a result of these efforts, the City reduced the actual year-end operating deficit to approximately $5.7 million, reflecting ongoing attention to fiscal responsibility.

At the close of Fiscal Year 2024–25, the City’s General Fund—the primary operating fund used to provide essential services such as police, fire, parks, and infrastructure—reported a total fund balance of $30.0 million. A fund balance can be thought of as the City’s overall savings. Of this amount, $19.8 million is held in the City’s contingency reserve, which serves as the City’s emergency fund to maintain services during economic uncertainty or unexpected events.

A portion of the City’s fund balance—approximately $10.2 million—is categorized as restricted, committed, or assigned for specific purposes. During the fiscal year, approximately $2.7 million was more clearly designated within these categories, increasing the allocated portion of the City’s savings from approximately $7.5 million to $10.2 million. These funds support important community priorities such as capital improvements, General Plan updates, Downtown parking, and street and infrastructure improvements, including road repairs. These funds remain part of the City’s overall financial resources but are set aside for their intended purposes.

Additionally, a $2.9 million prior-period adjustment identified through the City’s independent audit was related to the proper classification of assets between the General Fund and the Successor Agency. This adjustment ensures that funds are reflected in the appropriate account in accordance with accounting standards. The funds were not lost or misspent, but rather properly reallocated.

At the end of FY 2024–25, the City’s contingency reserve was approximately 14% of annual General Fund expenditures, which is above the City’s minimum policy requirement of 10%, though below the long-term goal of 17%. Based on current projections, the City is anticipated to end FY 2025–26 with approximately 12% in reserves, which remains within policy guidelines.

There has also been discussion regarding a potential 2% reserve level. It is important to clarify that this figure represents a baseline, starting position in the City’s long-term financial forecast, assuming no changes to current revenues or expenditures. It is neither the City’s current condition nor its expected outcome. As part of the upcoming budget process, the City Manager will present options during public budget study sessions to reduce the funding gap and improve reserve levels over time, ensuring the City remains on a path toward long-term financial stability.

The City’s financial outlook reflects broader trends impacting many communities, including rising costs for labor, materials, and services. At the same time, revenues remain stable, with property tax revenues increasing by 6.23% due to growth in assessed property values.

To help illustrate, the City’s finances can be compared to a household budget. Revenues function like a paycheck, expenses represent the cost of essential services, and the fund balance serves as savings. Over the past year, the City used a portion of its savings to support planned expenditures, while continuing to maintain an emergency reserve. Moving forward, the City is focused on aligning ongoing revenues and expenses to support long-term financial sustainability.

The Annual Comprehensive Financial Report (ACFR) referenced above is the City’s official year-end financial report and is independently audited. In simple terms, it is similar to a household’s year-end financial statement—it shows how much money came in, how much was spent, and how much remains in savings, along with how those funds are designated.

Looking ahead, the City will continue to evaluate cost containment strategies, operational efficiencies, and potential revenue opportunities, which will be discussed during upcoming public budget study sessions along with updates to the City’s multi-year financial forecast.

In summary, the City of Fullerton’s financial position reflects a planned and publicly approved use of savings to address a budget gap, along with standard accounting updates to ensure funds are properly tracked. No money was lost, missing, or improperly spent. Approximately $2.7 million was reclassified to reflect funds set aside for specific purposes—such as road repairs and capital projects—and a $2.9 million adjustment was made to the appropriate account for those funds. The City ended FY 2024–25 with 14% in reserves and is projected to have about 12% this year, both above the City’s minimum requirement. The 2% figure referenced in recent discussions reflects the City’s baseline financial outlook if no changes are made to current spending or revenue levels, underscoring the importance of taking action. The City is actively working to reduce the budget gap and strengthen its financial position moving forward.

The City of Fullerton remains committed to transparency and keeping the community informed. Residents are encouraged to review financial documents available on the City’s website and participate in the budget process.

Small Stuff Adds Up

The Fullerton City Council agenda for tomorrow’s meeting is pretty light. Except for a budget discussion everything is “Consent Calendar.” One of those items caught my attention. Item #10 is an emergency, non-bid request to work on some drainage channel wedged between the Uptown Apartments on Yorba Linda and the 57 CalTRANS right-of-way.

Staff is claiming the project (whose scope isn’t described, other than “a damaged wall”) is necessary due to “recent rain events,” always a useful pretext for doing stuff. The channel isn’t one of those big ones with perpendicular walls, but from a satellite view it looks like a simple concrete “V” ditch that enters and exits a concrete drain structure.

It must look something like this, right? A concrete “V” in cross section with woven wire mesh or thin rebar. Has a part of the been washed out or undermined? Who knows? We just know there’s some sort of damage, and I’d bet the “recent rain events” are an excuse for a long-developing issue.

Here’s a google earth view of a portion of the the existing “V” ditch that is either buried or washed out.

This is the funny part. The City Engineer has estimated a construction cost of $105,000, but with an overhead of almost 20%. That’s ridiculous. At $100 an hour for staff time we’d be looking at 200 manhours, or one person working on nothing else for five weeks. The design is negligible since you can just sketch a plan and pull a cross section and specs out of the Green Book or other standard sources, like I did, above. Administration? Processing? You’ve got to be kidding. And then there’s the amount budgeted for “contingencies.” $75,000, or 75% of the construction amount. So they really don’t know what the scope is and are expecting surprises.

If I were on the City Council I would be asking staff about these figures. They don’t make sense, at least not on the surface. Something is going on.

When the 57 freeway was built this drainage flow was created by a giant berm, but I have to wonder how and why the City created a drainage right-of-way on what appears to be the CalTRANS right-of-way, or on private land since the property looks like a jagged remnant of the State’s freeway land acquisitions.

Someone might also reasonably inquire into how come this thing is an emergency at all. That seems awfully strange. The rainy season is virtually over and the amounts of water collected here seem pretty insignificant.

But back to the finances. The problem with all municipal public works budgets are the amount used to cover staff expenses and overhead, and this, normally around 10% or more, is already padded. If you think about it, money from infrastructure funds are being used and abused to support to bureaucracy instead of pouring concrete.

The amounts in this instance are small, but they are indicative of an ongoing philosophy of abusing Capital Improvement budgets. Some might argue that unused funds will simply be returned to the fund from which they came. Could be. But how would anybody know?

Zahra Tells All – Part I

Land of opportunity…

No, of course not. The truth is not in him. If it were he would have explained how he, the first gay Muslim in America married a local woman in Arkansas to jump the Green Card line.

Not asking real questions is a great way to avoid getting real answers…

The Damascus Dodger is featured in a three part interview with Stiskia Kennedy in the Fullerton Observer. It’s an opportunity for the Kennedy Sisters to give the scam artist another of their tongue baths and to avoid anything that resembles the truth about Zahra and his career, a career that resembles a jailbreak more than anything else.

In a recent discussion, I spoke with Fullerton City Council Member Ahmad Zahra about his role and responsibilities. We engaged in a Q&A session that delved into the challenges and rewards of serving the community at the municipal level. 

Bushala says stop!

First Satkia wants to know how to stand up to influential donors. Suddenly Tony Bushala’s unseen presence fills the room. Zahra’s response? He lies of course. Naturally, Zahra is a profile in courage, standing up to the “special interests” over whom he prevailed in his two elections. This demanded his “wisdom and thick skin.” This history is false, of course. Nobody knew who he was in 2018 and he slipped in past a couple others; naturally he ignores the facts of his 2022 run when his victory was not won on any issues, but by spending $120,000. And then there was his recruitment of Tony Castro, the dummy Latino candidate who the OC Dems set up to take votes away from Oscar Valadez. Oops.

Stikia follows up with campaign finance. Zahra complains about political action committees and the poor plight of the “community-focused” candidate (presumably just like him). No questions are asked or answered about Zahra’s big campaign donors, just as the Kennedy Sisters never bothered to ask who gave money to Cannabis Kitty Jaramillo in 2024, and what they hoped to get out of it. The cannabis workers’ PAC gave $60,000 to help Cannabis Kitty, but that’s not the sort of mean, nasty PAC Zahra has in mind.

Malo, indeed…

Zahra says his opponents spent more than he did and he still won in 2022. That’s a lie, too, but he knows the Sisters won’t check him on it. Dredging up another Fullerton Boohoo gripe about Mr. Bushala, Zahra bemoans the fact that donations can be returned so that councilmembers can vote on the donor’s project. This is reference to Councilwoman Jamie Valencia’s return of money to Bushala before the vote on the stupid Walk on Wilshire in which Bushala had no legal interest. That return wasn’t even necessary per state law so why is this a problem?

What, me lie?

Staksia’s last question is about ranked choice voting about which her interlocutor knows nothing and doesn’t care. He wants to curb “unethical practices” by PACs, saying nothing about the fraudulent candidates Tony Castro and Scott Markowitz whom his party set up so their pals like Zahra and Jaramillo could get elected in Fullerton. And that betrays Zahra’s true feelings about the community he pretends to love so much.