Of Waste And Water

NEWS FROM THE WATER AND SANITARY DISTRICTS
Things have been relatively quiet in the two special districts that serve Costa Mesa - the Costa Mesa Sanitary District and the Mesa Water District.  So, on the last day of the municipal fiscal year, I thought I'd comment on some very recent news from each - just to get your hearts pounding.

CMSD 2-YEAR BUDGET ANNOUNCED
First, last week the Costa Mesa Sanitary District passed a two year budget and fired off a press release announcing it.  I'd like to be able to refer you to the press release on their web site, HERE, but it's not posted yet.  Check back for all the details.

HEADING FOR $11 MILLION
In a nutshell, their approved two year budget includes spending of $10,741,860 for FY 2013-2014 and $10,913,940 for FY 2014-2015, and includes funding for manhole maintenance, new laptops for field staff and digital imaging of District records.  They also plan to spend $850,000 to rehabilitate their force main sewer pipes, $328,500 to install emergency generators at critical facilities and $340,500 for rehabilitating brick manholes.

RATES TO BE LOWERED
We were also told that the District, for the second consecutive year, authorized the lowering to residential solid waste rates.  The Board approved a 10% reduction, dropping the rate from $19.95 per month to $18.00, using undesignated solid waste water reserves.  Multi-family customers and commercial/industrial customers will see significant reductions in their liquid waste rates, too.

MESA WATER VS. THE REGISTER
The most fun news, however is the case of dueling articles in the local "real" media.  On Saturday Mike Reicher published an interesting piece in the Orange County Register, HERE, titled, "Water officials'meals, travel top $170,000.  Since this article is hidden behind the Register's paywall, I'm not going to attempt to give you all the information.  I'll give you some of the highlights, however, and let you subscribe to the online version for more.

CURIOUS EXPENSES
Reicher tells us of several instances of what appears to be significant unjustified expenses for meals and other expenses racked up by Mesa Water District officials over the past couple years - like a dinner for two in Palm Springs for $144.00.

YIKES!
Reicher says that the five directors and eight District staffers spent more than $170,000 in expenses in 2011 and 2012.  Yikes!

OPEN MEETING LAW VIOLATIONS?
He tells us that "sometimes a majority of the five board members attended restaurant meals, which is allowed by the state's open meeting laws when the event is a strictly social gathering.  He tells us, though, that the district credit cards are only for official business".  He chronicled at least two instances when a quorum of board members met a restaurant for pre-meeting meals and charged them to district credit cards.  And on and on and on.


DEFLECTION

Then, on the same day and in the competing Daily Pilot, Mesa Water District Jim Fisler published a letter that paints a rosy picture of the District, HERE.  In it he tells us about our low water rates - ignoring the fact that Mesa Water has raised rates for the past couple years to jack up its bond rating.

GOOD NEWS

He touts the fact that Mesa Water provides its customers with "100% local water", not imported from distant venues.  He also talks about the exceptionally high quality of the water.  These are all good things, worthy of mention.

HEADING OFF CRITICISM
However, when I cornered Fisler at the 60th Anniversary Celebration Saturday and asked him about it, he acknowledged that he anticipated a "hit piece" from Reicher, and his letter in the Daily Pilot was intended to blunt the impact of Reicher's piece.  I'm not so sure it did, particularly when an increasing number of folks don't read both papers.

RE-BRANDING AND OTHER EXPENSES
I didn't ask Fisler about the major gaffe recently exposed by Reicher - that their expensive "re-branding" campaign for an organization that has a captive audience that cost north of $250,000 (the exact number varies, depending on who you ask) and resulted in a logo that cannot be protected by copyright, HERE.  That, plus the long list of curious expenses racked up by Mesa Water, probably should make the ratepayers of  the District more than a little uneasy.  The directors of Mesa Water attempt to portray the District as being "efficient, financially sound and transparent", but the information discovered in Reicher's two recent articles paints a slightly different picture.

Waves In Mesa Water's Little Pond

REICHER'S WATCHDOG ARTICLE OPENS THE DOOR (NOTE)*

More than a few of you probably don't read the Orange County Register in print, which means you didn't see Mike Reicher's excellent piece above the fold in the Local section today, Sunday.  And, unless you've decided to pay for it via the Register's recently-announced Paywall, you can't read it online, either.  That's a shame.  However, if you DO have access to the Register online - like me - you can read Mike's article HERE.  John Canalis, editor of the competing Daily Pilot, described this article as "strong enterprise" in a Twitter feed.  So, since you probably can't read Mike's work, I'll give you a taste of it without (hopefully) violating their copyright. *Early Tuesday, 41613, Mesa Water President Jim Fisler sent me the following link to a blog entry by their former PR consultant, Laer Pearce, providing his view (spin?) on this issue.  Thanks to Fisler for this information: http://clutterinclarityout.com/mesa-waters-excellent-rebranding-program/

THE HOOK

Mike's opening paragraph will give you a little bit of the flavor: "Native American musicians blessed the 'ancestral waters,' valets parked cars for the 150 'VIP' guests and $50,000 event planners passed out catered custom cookies shaped like water drops and redwood trees - $1,500 worth of cookies"

REELING YOU IN
He goes on from there to describe "Mesa Water District's lavish spending on marketing and communications.", including "undergoing a $500.000 branding campaign, including a name change and redesigned logo."  By now you've probably got the feel for the article.


MILLION DOLLAR PLUS PR BUDGET

He tells us that, while raising rates, Mesa (the new name) has increased its communications spending by 300% in four years - a $1.25 million annual budget that "dwarfs those at similar water districts."

PEARCE
Apparently Mesa paid PR consultant Laer Pearce nearly $270,000 in total consulting fees since beginning talks in 2008, including $85,000 specifically for branding.  They stopped using Pearce in December and plan to issue a new request for proposals for public relations consulting support.


WHY SPEND SO MUCH?

By all measures Mesa is a financially strong organization, but we wonder why they feel it's necessary to spend so much on public relations - to let people know who they are.  Reicher says, "A customer survey in 2012 found less than one-third of surveyed ratepayers could identify the district by name."  He quotes Mesa's Communications Manager Stacey Taylor as saying, "There's a big void.  It showed a lack of connection with the community."

GRAND JURY OPINION

Reicher tells us that "in 2009 the Board of Directors voted to increase rates by 25% between fiscal years 2010 and 2014".  He quotes district officials as stating the money to be received by the increased rates "is needed to maintain its AAA credit rating".  However, Mesa has "about $23 million in reserves and the Orange County Grand Jury issued a report last year recommending districts use excessive reserves to pay down debt."

STAFF COMPENSATION

To further illustrate the financial condition of Mesa Water, Reicher provided a little chart showing the top ten most highly compensated members of the Mesa staff - - each earn over $150,000 including benefits - starting with General Manager Paul Schoenberger at over $315,000  and includes Taylor at the number 3 spot, with more than $194,000 in total compensation.  You can find out more information about Mesa Water at their website, HERE, and specific information about the compensation program HERE.

NO GRUMBLING ALLOWED!

Reicher's last paragraph leaves his readers with an interesting quote from Communication Manager Taylor.  He quotes her as saying, "Yes, we're a monopoly public utility, and customers don't have a choice," Taylor said, "but does that mean we want people grumbling about their government?"  That should make us all think just a little about how Mesa is spending OUR money.

FIND IT AND READ IT

I hope these snippets will cause you to jump off your couch, abandon watching the final round of the Master's Gold Tournament, and go buy a copy of the Sunday Register at your local convenience store.

DEBBIE COOK COMMENT
Reicher's article is only the most recent of many critical publications about Mesa Water District.  In February former Huntington Beach Mayor Debbie Cook published a scathing commentary on the SurfCityVoice blog titled Mesa Water Drops Fiduciary Duties as Ratepayers Pick Up The Tab, HERE.

SURF CITY VOICE ALL OVER IT
SurfCityVoice Blog publisher John Earl has long been a watchdog on water issues in our region, focusing on the planned Poseidon desalination project in Huntington Beach.  Last month he published two very critical essays on his blog concerning Mesa Water, HERE and HERE.

LITVAK'S QUESTION

Late last month Costa Mesa resident Jay Litvak published a commentary in the Daily Pilot that asked, "What is Mesa Water Up To?", HERE.  And resident Howard Hull - one of the cadre of true believers who hover around the power elite in Costa Mesa - published a snarky rejoinder to Litvak in the Daily Pilot last week, HERE.

REAL TRANSPARENCY IS GOOD
Personally, I think a little light on Mesa Water and the other small, special districts, is a good thing.  I'm not so sure that Mesa anticipated the kind of attention they're getting when they decided to spend hundreds of thousands of dollars on a PR campaign so folks would know who is delivering their water.  It might be one of those "be careful what you ask for" situations.  We'll see...

Outsourcing Lawsuit Impact

NOW WE UNDERSTAND...
In case you missed it, Mike Reicher's piece in the Orange County Register yesterday is a MUST READ for anyone even remotely interested in Costa Mesa's outsourcing lawsuit.  Read it HERE, and be sure to follow the link at the end to his companion piece, too.

MORE BUCKS FOR JONES DAY
This will give you a little better understanding of why Costa Mesa - through their $495 per hour law firm, Jones Day - has decided to file for a review of the recent appeal to the California Supreme Court.  From the sound of Reicher's article, MANY cities have a lot to lose by the actions of the current City Council majority that forced the lawsuit.

WHICH CITIES ARE PARTICIPATING?
When the City issued their press release about the plan to request the review they indicated that many other California cities were very interested in this case and would be participating in the request.  However, when we asked WHICH cities were going to participate we got stiff-armed and were referred only to four organizations that represent some of the cities.  It's hard to understand what the big secret is, since this apparently is a VERY big deal for the general law cities throughout the state.

THE PRICE OF HASTE
The irony here is that if they had just not gone off half-cocked and violated their own policies in their rush to outsource half the city staff the lawsuit would probably never have happened.  This is what happens when you have people in positions of power who are more interested in following their marching orders issued by political party leaders than doing what is right for our city.  Remember this when you vote...

Sign Vandal Identified As City Employee

REGISTER IDENTIFIES THE PRESUMED CULPRIT
Orange County Register columnist Barbara Venezia and her colleague, reporter Mike Reicher, reported tonight in an article HERE, that the person captured last weekend on video tape vandalizing campaign signs is a Costa Mesa Maintenance Worker named Steve White.  According to the article, councilman and candidate for election, Steve Mensinger provided the identification to the press.

PILOT PROTECTS HIS IDENTITY
The Daily Pilot, in an article this evening by Bradley Zint and Lauren Williams, HERE, also identified him as a city employee, but withheld his name "because he has not been arrested or charged with a crime."  Of course, that seems to be the prudent course to take.

"VOLUNTEER" OR "PRIVATE INVESTIGATOR"?
There seems to be some confusion about just who did the video taping last weekend.  Proponents of the 3Ms and Yes on V have identified the videographer as a "campaign volunteer", but the press release issued by the Costa Mesa Police Department identified him as a Private Investigator hired by a councilman who was running for election.  It is widely assumed that councilman is Mensinger.
 
MIXED FEELINGS
I view this information with mixed feelings.  First, I'm glad the vandal has been identified.  As I've said many times here, the vandalism of campaign signs is a stupid, petty and ineffective act that's been going on with too much frequency by parties on both sides of the issues.  I'm glad someone has been apprehended and hope it will cause others to cease these acts.

GASOLINE ON THE FIRE
I'm saddened, however, that it apparently turned out to be a city employee because it will be like  tossing gasoline on an already-roaring campaign fire.  According to the Register article, Maintenance Services Manager Bruce Hartley confirmed that White had been placed on paid administrative leave and is under investigation.

FITZPATRICK'S ILL-TIMED PRESS CONFERENCE
I'm sure soon-to-be-former Sanitary District Director and current President of the Costa Mesa Taxpayers Association, Jim Fitzpatrick, will be giddy at the press conference he's called at City Hall tomorrow at 10:00 to address this issue.  Sadly, his circus will be held at the same time the ceremony for retiring legendary School Resource Officer Jess Gilman is being held in council chambers.

IMPROPER ACTION BY MENSINGER
I'm concerned about the propriety of a sitting councilman, Mensinger, announcing to the press the name of a city employee who has not been charged with a crime in this matter.  This is unacceptable, unethical behavior on Mensinger's part and is only the most recent example of his disregard for the rules that govern council members' behavior.  His premature public identification and condemnation of White may jeopardize any prosceution and/or any administrative punishment that might be levied on him by The City.  Remember Tom Johnson's recent description of Mensinger as a "bull in a china closet"?  This is a perfect example of what he may have meant. This behavior should make every employee and voter shudder when considering him in office if Jim Righeimer's Charter passes.  That document is virtually a blank check for malfeasance, with insufficient controls to prevent these kinds of acts.

UNWELCOME OUTSIDE INTERFERENCE
Just when you think things can't get any more bizarre in Costa Mesa during this campaign season, something like this pops up.  It's bad enough that the OC GOP and developers are pumping thousands of dollars into the campaigns and outside unions doing the same.  They all just need to butt-the-heck-out of our city and let us sort out the issues without their interference.  Of course, that's not going to happen.