Thursday, January 30, 2014

Report On 60th Anniversary Costs Now Available

Just before the close of business today the City of Costa Mesa finally released the report on the controversial 60th Anniversary Celebration Costs, HERE. (Read Bradley Zint's excellent summary in the Daily Pilot late Thursday night, HERE.) (And Antonie Boesenkool's equally fine report behind the pay wall in the Orange County Register, HERE.)

That page includes several links to individual segments of the financials of the report, including an Executive Summary, HERE, an 89 page report on the Sun Group Entertainment Expenses, HERE, and a 489 page report on Other Expenses, HERE.

I'm not going to try to present any kind of indepth analysis of this information now... I know that, all over the city, there are people and groups of people poised to spend their weekend doing just that.

However, perhaps some snippets from the Executive Summary may be helpful to you.  For example, while they state that "multiple investigations have found to date that no public funds were used for personal gain or were unaccounted for" they acknowledge that purchasing policies and procedures were not followed.

They tell us that the total expenses for this event ended up at $518,000!!!!

In the section titled "City Shortcomings" they list the following, with details you can find on the report itself:
  • Unbudgeted event growth
  • Unbudgeted costs
  • Violations of purchasing policies and procedures
  • Control over cash
They also lost, under a title, "Specific potential violations by city staff of Costa Mesa policies" thirty-three (33) separate items that will make you very angry when you read them.

Under "Reforms Instituted", they tell us that they have:
  • Instituted a refresher training course for all employees involved in purchasing
  • CEO and Finance Director working with staff to ensure that the Finance Department actas as a strong check and balance mechanism.
  • Added a new "Buyer" position
  • Established a Purchasing Quality Control Committee
I encourage you to take some time and review the various documents - all 1051 pages of them.  We've not heard the last of this issue.

And, although rumors are all over the place about the future of Dan Joyce, I'm told officially this afternoon that he is still on paid administrative leave.

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Blogger Joe said...

o/o/ Bad boys, bad boys.. whatcha gonna do when they come for you..o/o/

1/30/2014 07:56:00 PM  
Anonymous Heart for Costa Mesa said...

In the Potstirrer's picture Tom Hatch looks like he is in serious pain and he probably is. Tough day for the City.

In fact it has been a tough, painful three and a half years.

I want to send my City a "Get Well Soon " card!

1/31/2014 12:46:00 AM  
Blogger The Pot Stirrer said...

I selected that one from my library on purpose because it reflects how he is probably feeling about this whole thing.

After all is said and done, The Buck Stops At His Desk on this whole mess.

1/31/2014 01:09:00 AM  
Anonymous Chris Blank said...

From the Executive Summary on Page 5 of 7: "Sun Group: Significantly exceeded authorized amount in contract, no competing bids, unauthorized use of subcontractors, no purchase orders." The contract was capped at $8,000.00. The total paid to Sun Group was $126,868.81. See page 2 of detail on Sun Group Expenses located here: I'd say that significantly exceeded the amount of the contract. Many of the extras appear to be pass-throughs, but that is one of the reasons such things should follow City purchasing procedures. A significant amount was spent on the VIP tent and extras (over $19,000.00). A significant amount for labor (over $33,000.00). Roland Barrera is the proprietor of Sun Group. He is presently under investigation by the SEC for his alleged participation in a multimillion dollar Ponzi scheme. One more curiosity worth noting. Mike Schaefer signed several of the check authorizations to pay the contracted consulting fees to Sun Group, i.e. the $1,000.00 per month fees. All of the check authorizations for the extras were signed by Dan Joyce "on behalf of Mike Schaefer" except for one, and that one was signed by Christine Cordon "on behalf of Mike Schaefer." Make of that what you will.

1/31/2014 09:37:00 AM  
Blogger Gericault said...

This "Forensic" audit, like much else coming out of City Hall, is a complete joke. Read that "painful" analysis, and you realize that NOBODY was minding the store. Sadly, the auditors couldn't audit anything because all they had was invoices and canceled checks. Tom Hatch claiming that there was "no money missing" is like looking at a smoking gun and saying, "this couldn't be the murder weapon, there are no bullets in it". We, residents, will add this up and come to our own conclusions. Based on the information provided.The City at this point cannot be relied upon for being truthful. At the end of this it will be up to the citizens to decide if they think this is how you run a City "like a business". Absolutely disgraceful.

1/31/2014 11:10:00 AM  
Anonymous Where's My Coffee? said...

Heart, send one in November in the way of a vote to get rid of Righeimer and his ilk. The best get well card there is.

1/31/2014 02:40:00 PM  
Anonymous Where's My Coffee? said...

Gericault, great analogy. I wonder how Tom Hatch knows there was no money missing? Its impossible to account for that which you know nothing of.

1/31/2014 02:43:00 PM  

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