Scrutinize Every Detail — Part One

 

The sad part about Joe Felz’ retirement is that running over a tree, while likely under the influence of alcohol, might have actually improved his legacy as City Manager.  How is that possible? Easy. The tree incident is a convenient distraction at an optimal time. Except for the anonymous letter penned by City employees a couple weeks ago, few people are talking about his actual job performance which deserves just as much scrutiny.

One of his biggest failures is that he not only tolerated, but actively participated in deceiving the public through various means, be it omission, obfuscation, or just outright lying to people.  He wasn’t crafty about concealing it either – agenda letters and staff reports sent to the City Council and others were chock full of half-truths, non-truths, and other nonsense designed to mislead the public.

I think we ought to be forgiving in the case of legitimate mistakes or typos.  None of us are perfect, so transposed digits, or maybe a missing word here or there, isn’t the end of the world provided it doesn’t materially influence a decision. The point where it ceases to be a “mistake” or “typo” and, thus, becomes completely unacceptable, is when people offering up this information stick to their guns and defiantly defend such errors as being gospel.

In case you missed the last installment of the Brea Dam fiasco, one point of contention concerning the golf course was converting the Lease to a Management Agreement with American Golf.

Parks and Recreation Administrative Manager Alice Loya went before the City Council in November 2010 and said American Golf would receive a $500,000 “Management Fee” with 1% annual increases.  Minus payment to a couple American Golf managers, this constitutes guaranteed profit to American Golf, a perk they never enjoyed in the past.

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Brea Dam: Crony meet Capitalism

Have you ever woken up in the middle of the night and said to yourself, hey, I’m going to take out a new mortgage to pay for sprinklers on property I don’t even own?  Yeah, me neither.

Joe Felz, circa 2010

That’s exactly what the City of Fullerton cooked up in 2010 with one minor difference. Instead of a mortgage, they sold municipal revenue bonds, but that distinction is, for the most part, a moot point.  Debt is debt.

You see, the Fullerton Golf Course, located northeast of Harbor Blvd. and Bastanchury Rd. (near St. Jude) sits on nearly 75 acres of land owned by the Federal government.  The City of Fullerton is simply the lessee on a long-term lease granted by the US Army Corps of Engineers.

American Golf (and it’s predecessor) was the contract operator of the Fullerton Golf Course beginning in 1979.  They operated the course as if they owned it outright, and gave the City of Fullerton 20% of the golf and 8% of the concession revenue. This was not a bad arrangement for the City considering it was in American Golf’s best interest to run a lean operation and generate as much revenue as possible.  They also assumed responsibility for golf course operating costs, liability, and capital improvements.

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The Brea Dam Denial

Trust us, the answers are buried in there somewhere…
Trust us, the answers are buried in there somewhere…

I began to question the City’s management of the Brea Dam in early 2015.

Numerous problems had one thing in common: Joe Felz‘ involvement during his tenure as Parks and Recreation Director, and then, again, during his transition into the City Manager role in 2010.   Who better to ask about these things than Joe himself?  I tried reaching him by e-mail.  After that failed, I tried calling instead.  He never returned my calls either.

Seeing that as a dead end, I requested copies of documentation from Parks & Recreation staff that I believed to be the responsibility of administrative manager Alice Loya.  Her name appeared on numerous City Council and Parks & Recreation agendas pertaining to the Brea Dam.

My initial records request was denied, in part, because they said the records didn’t exist.  I had requested from Ms. Loya very basic budget and profit/loss statements for the Fullerton Golf Course.  That’s when I knew my suspicions of mismanagement had at least some merit.  We pay the golf course expenses, yet Ms. Loya, whose job it is to supervise these things, could not produce anything of substance to justify the overall financial performance.  She instead offered what I’ve termed monthly invoicing “bundles”, so I requested a full 12 months.  This was the only way to reconcile financial performance over a full fiscal year.  I would later be shamed by the Fullerton Observer for making that request and others.  After all, I was wasting precious City staff time.

Over the summer of 2015, some friends and I studied these documents in depth, and we each came to the conclusion that something is very, very wrong up there. So wrong that, unless corrected, the US Army Corps of Engineers could revoke the lease and evict the City of Fullerton.  That could potentially force the closure of the Fullerton Golf Course, Fullerton Tennis Center, Fullerton Sports Complex, YMCA, Child Guidance Center, and Fullerton Community Nursery School — all of which occupy Brea Dam land leased from the Federal Government.  The Feds could also sue the City for failing to remit revenue.  Believe it or not, we could also face the wrath of the IRS because the bonds we sold to replace the golf course sprinkler system came with strings attached to the interest subsidy the City receives from the Feds. The list of problems just goes on and on and on…

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