OC Register Endorses Sebourn, Paden for Fullerton Council

Editorial: Paden, Sebourn for Fullerton Council

ORANGE COUNTY REGISTER

Published: Oct. 15, 2014 Updated: 5:14 p.m.

Fullerton is recovering from a largely negative bout in the public limelight. A high-profile prosecution for police brutality cast shame on city governance, prompting a recall of three council members and engaging the city in questions of oversight for law enforcement.

The resulting scrutiny bore fruit: Fullerton became a pioneer in using police body cameras and is pondering a civilian review board. Yet, residents are now facing another important election, one that will no doubt greatly influence how the city engages a whole range of issues: Homelessness, infrastructure, pensions, development and more.

To continue the city on its positive path, the Register recommends the mayor pro tem, Greg Sebourn, and challenger Sean Paden for City Council.

Read more...

http://www.ocregister.com/articles/sebourn-638666-city-paden.html 

Sean Paden, JD

Greg Sebourn, PLS

Howard Jarvis Taxpayers Association Endorses Sebourn Council

This week the Howard Jarvis Taxpayers Association joins the Lincoln Club and Atlas PAC with their endorsement of Greg Sebourn for Fullerton City Council.

I am thankful that the HJTA supports my longstanding commitment to keeping taxes low in Fullerton.  The endorsement will certainly lend visibility to the fragile state of Prop 13 and the necessity to protect the future of our aging population to live within their means.

Each of us as renters or property owners benefits directly by keeping the increase of property taxes to a sustainable rate of 2%.  Don't buy into the "split role" nonsense.  Any change to Prop 13 threatens our economic future.

HJTA was founded in 1978 to protect future generations from property tax spiking.  To learn more about the Howard Jarvis Taxpayers Association, please go to http://www.hjta.org/.

Counterfeit COIN - Just the Facts

by Mayor Pro Tem Greg Sebourn, PLS & Council Member Bruce Whitaker

The issue of open negotiations in government finances is nothing new.  In fact, Fullerton considered this at its November 5, 2013 City Council meeting in which the matter was tabled for nearly seven months.

Elected officials have a fiduciary duty to manage your tax dollars and the public has the absolute right to know how and why their tax dollars are being spent.  This right to know is underscored since unionized labor is the single largest budgetary line item for the City and the fact that the City is still operating with a City Council approved (3-2) structural deficit of at least $1.6-million! 

Fullerton taxpayers have a long history of being shortchanged by City Hall.  From illegal taxes to redevelopment waste, Fullerton taxpayers have every reason to question who is proposing to spend how much and on what.  Civic Openness in Negotiations, or COIN, offered a glimmer of hope to Fullerton taxpayers before being surreptitiously replaced with a Counterfeit COIN. 

On June 17 the Fullerton City Council voted 2-3 (Ayes: Whitaker & Sebourn; Noes: Chaffee, Flory, & Fitzgerald) to approve COIN based on the original model approved in other jurisdictions including Costa Mesa.  COIN would have provided a new level of openness and transparency into labor negotiations.  Unfortunately, after that motion failed, three Council Members (Chaffee, Flory, & Fitzgerald) voted to approve an ordinance that gives the illusion of transparency and rigor to a backroom process that has to this day remained secret.

Fullerton’s Counterfeit COIN ordinance lacks the two most critical components that make COIN an effective process for taxpayers and city workers - transparency and accountability.  Supporters of Counterfeit COIN point to the model guidelines “LABOR NEGOTIATION STRATEGIES AND PRINCIPLES” by the Association of California Cities of Orange County (ACCOC).  The guidelines offer up sample language and suggestions for COIN-like ordinances but Counterfeit COIN ignores the first rule of the guideline, Use of Outside Negotiators, as well as the second which calls for use of an independent auditor for financial analysis.

COIN and Counterfeit COIN both have a process for disclosure to the public regarding what the Council and public employee unions have negotiated behind closed doors.  Fullerton’s Counterfeit COIN, however, only applies to written offers.  Further, it does not specify when the details of the proposed agreements, offers, or counteroffers must be made public.  This means there may be countless secret “trial balloons” offered by both sides before settling on written terms.  This is where Counterfeit COIN fails the transparency test.

Accountability is completely absent from Fullerton’s Counterfeit COIN as well.  COIN required that all negotiations and economic analysis were to be conducted by professionals that were not subject to a public pension system and far removed from City Hall.  They are to be independent from the negotiating parties in every way.  Counterfeit COIN offers certain criteria that must be met in order bring in any outside parties. Even if the criteria is met, Counterfeit COIN requires the Council appoint a representative as a representative to the outside Negotiating Team, and further requires that representative be a public employee who stands to benefit by the outcome of the negotiation process.

COIN is really quite simple despite attempts to create the illusion of complexity or difficulty.  There are just three key components of COIN:  Independent Negotiator, Independent Economic Analysis, and Timely Public Disclosure. 

The lack of labor union opposition to Fullerton’s Counterfeit COIN sends the message to taxpayers that this new ordinance brings no substantive changes to the backroom labor negotiations. 

Until a clear majority of the Fullerton City Council is willing to recognize that feathering the beds public employee unions is contrary to their fiduciary duty, Fullerton’s legacy of backroom negotiations lead by city staff to benefit city staff will continue. 

More of the same, same as before.  

Illegal Water Tax Not Quite Dead

Ending the illegal 10% water tax is only part of the solution

It shouldn't come as a surprise to anyone that the end of Fullerton's decades-old water tax will not mean the end of Fullerton's financial woes.

As far as anyone can remember only a handful of Fullerton employees fill out time sheets and account for their time spent on specific tasks or projects.

This was the case in 1970 when the City Council voted to tax the Water Fund 10% of the gross water sales.  The blanket application of a percentage-based tax instead of the actual specific costs for service is indicative of poor management from people who had no idea just how much time and effort their employees spent working on water projects and tasks.

The City Manager has placed the elimination of the water tax on Tuesday's City Council agenda citing legal reasons, not economic reasons.  He has very few economic reasons to support any tax because he has no proof of the time and effort spent by employees working on the system except for certain water system employees and engineering employees.

That being the case, how did the City and their consultant, Municipal & Financial Services Group, produce this chart?

Somehow city staff and the consultant concluded these figures and presented them to the Water Rate Study Ad Hoc Committee as facts for consideration when determining just how much water rates should be increased.

If we take a leap of faith that these numbers are remotely accurate, then there are no other costs.  Therefor, any newly discovered "costs" are truly fabricated from thin air.

And then there is yet another problem.

Tuesday's City Council agenda contains a resolution which will, in essence, stop the water tax for May and June of 2012 and from then on.  However, the 1970 resolution states that the 10% tax will be applied at the conclusion of the fiscal year.  In other words, NO MONEY SHALL BE TRANSFERRED until June 30.  Somehow, the City Manager has taken it upon himself to transfer funds BEFORE June 30.  That's illegal.

Read the resolution for yourself, in particular the last paragraph:

Also, the agenda includes a rate hike to cover the "pass-through" increases from Metropolitan Water District and the Orange County Water District.  The problem I have is that MWD will not be raising rates on Fullerton until January while the rate hike to you and I goes into affect on July 1.  

The bottom line is that you, the ratepayer, must attend the City Council meeting on April 17, 2012 at 6:30PM (303 W. Commonwealth Ave.) and speak out on the continued gross financial mismanagement.

Fast Facts About Fullerton

Here are a few fast facts about Fullerton:

400 - the number of years it will take to replace that water line in the street (current replacement cycle should be 6 miles per year on 50-year cycle)
547.6 - millions of dollars of pension liability (CAFR 2011, page 69)
657.9 - millions of dollars of Redevelopment Agency liability (March 20, 2011 agenda item 6: "PROPOSED THIRD AMENDMENT TO ENFORCEABLE OBLIGATION PAYMENT")
91 - the percentage of increase in water rates proposed by City of Fullerton May 23, 2011
2,000 - approximate dollars paid per month in daily stipends to Councilman Bankhead as a Director on the Orange County Water District Board (City Council Agenda Item 12, April 3, 2012)
27 - millions of dollars skimmed since 1997 from the Water Fund to pay for salaries and benefits of employees not associated with the water department  (Public Records Request data from Julia James, Administrative Services Director, City of Fullerton)
2.7 - millions of dollars the City plans to skim June 2012 (Based on Adopted Budget FY2011-2012)
64 - days left for you to decide if you want to change any of these numbers (Recall Election June 5, 2012)

The OC Watchdog Plays in Fullerton's Muddy Waters

The OC Watchdog jumped into Fullerton's muddy water tax again on Sunday. CLICK HERE TO READ THE OC WATCHDOG.

Let's not forget how the City has used the $2.5 million.  10% of every water bill gets diverted or skimmed from the water fund and transferred into the City's General Fund. 80% of the General Fund goes to cover public safety employee salaries and benefits. The General Fund does not contribute any funds back into the water system. Removing this hidden tax would allow the water system to retain about $2.5-million for pipe replacement.
http://gregsebourn.blogspot.com/2011/07/reasons-i-oppose-fullertons-water-rate.html

WAKE UP FULLERTON! The Water Fund isn't the only fund getting skimmed.
http://gregsebourn.blogspot.com/2011/08/where-did-all-money-go.html

And in case you forgot...

http://gregsebourn.blogspot.com/2011/08/illegal-taxes-and-misappropriations.html

Water Rate Meeting TODAY at 4:30PM

Public parking will be available in the small parking lot accessed from Commonwealth as well as the large employee parking lot accessible from Basque. 

Where is Fullerton's Independent Advocate?

Fullerton water rate payers are becoming increasingly weary and suspicious of politicians and managers who have relied on the City's Water Fund to help offset the rising labor costs at City Hall. 

Inflation is at about 3.15% on average for 2011 and keeping up with it is challenging in a recession. Being somewhat predictable, we can manage to keep pace with it and plan for future investments in the water system.

However, Fullerton, much like Los Angeles, relies on the water rate payers to help offset and pad the ever-rising costs of labor. That's not fair.

So who at City Hall can Fullerton's water customers turn to when the City Council is dazzled by brilliance and baffled by BS?

No one.  There is no one left in City Hall to turn to when City staff draft a report - true or not - that paints a grim picture of the City if rates are not immediately increased.

To counter the misleading and false emergency to generate cash-flow which will be used to make up for poor fiscal management and planning, some communities, Los Angeles included, have turned to independent advocates or rate payer advocates.

The problem is that the advocate, which might be a single individual or a committee, is appointed by the very people who have their hands in the cookie jar thus making the advocate less than independent.

Fullerton is special.  Not because of the large number of schools or the inexcusable level of apparent police corruption but because Fullerton already has an independent advocate.  The Fullerton Association of Concerned Tax Payers (FACT) was created in 1996 after the last recall effort of 1993-1994 when the City Council voted to create a utility tax.  FACT founder, Bruce Whitaker, was elected to the Fullerton City Council in November 2010.  Time and again, FACT has fought for Fullerton taxpayers.  Current FACT president Jack Dean took over the organization in 2003 and has since launched http://www.pensiontsunami.com/.

FACT has helped residents, business owners, and taxpayers tackle the issue of excessive and unnecessary taxation.  FACT has a close relationship with the Howard Jarvis Taxpayers' Association (HJTA) which came together recently and challenged Fullerton's illegal and unnecessary in-lieu franchise fee which skims 10% of the total revenue from the Water Fund.  Some say the "fee" is nothing more than robbing Peter (the Water Fund and water consumers) to pay Paul (employee salaries, pensions, and benefits).

FACT has saved Fullerton taxpayers more than $150-million since its work to repeal the utility tax. 

FACT was the sole Plaintiff in lawsuits against the Gray Davis administration and, later the Schwarzenegger administration to block the issuance of pension obligation bonds of $2 billion and just under $1 billion respectively.  The second lawsuit was successful at the Sacramento Superior Court and later at the Court of Appeals and has since provided protection against the State issuing bonded indebtedness without voter approval.

FACT remains the only guardian against unfair and unwarranted taxation, whether disguised as a fee or buried in your utility bill. 

If you are having a hard time digesting City-imposed fees and taxes, and if you are tired of the lip service of politicians, please support the Fullerton Association of Concerned Taxpayers - your ONLY independant advocate in Fullerton.