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Some water officials use office for personal gain, report says
June 24th, 2009, 4:00 am · 43 Comments · posted by Teri Sforza, Register staff writer
You wash my back, I’ll wash yours!
The Orange County grand jury unearthed some wriggling worms while peering beneath the rocks to probe the (largely invisible) world of O.C.’s billion-dollar water districts, finding that:
- Some water district governing board members – quite a few of whom run consulting businesses – appear to use their positions for personal gain, “conducting professional practices” with other water districts, and using their elected positions “to promote their competitiveness.”
- Perhaps not unrelated? “Procedures for the selection of professional consultants’ contracts are somewhat lax and in some instances non-existent, thereby creating a perception of bias in the selection of candidates, especially in the selection of board members from other member agencies to provide professional services.”
So if you ever wonder why there are a dozen of these wee governments (full list below), or why they tend to fight consolidation tooth and nail, well, perhaps this sheds some light?
“Safe water for the average residents of Orange County should be the concern of these people, not things that may benefit any particular individual,” said James Perez, foreman of the 2008-09 grand jury (and, er, retired administrator for the Federal Bureau of Investigation).
Districts have 90 days to respond – in writing — to the grand jury’s report. Many officials are declining comment until they craft a formal response; but a canvas through our sources in Water World found quite a variety of reaction, from “They don’t know what the %^&% they’re talking about” to “We have very strict ethical guidelines in place already” to “Hmm. Term limits aren’t such a bad idea!” (Thanks to Irvine Ranch Water District for its detailed response, which you can read here.)
One might ponder all this as water rates skyrocket and one strives to conserve the stuff.
CONFLICTS OF INTEREST?
“There should be a clear line and a necessary balance between board members’ personal work efforts and their participation on water district boards,” the grand jury report says. “Numerous issues can surface if it is perceived that members are using their positions to enhance business opportunities for themselves or their companies.”
And it sure did look that way:
- “The Grand Jury found instances where staff members were expected to review proposals from directors of agencies for which they are clients. Under these conditions, the objectivity of the evaluations of the proposals becomes questionable.
- “Pressure occurred to accept the work product and, in some instances, portions had to be redone by staff members.
- “An inappropriate situation that the Grand Jury found involved a board member who received a contract from another water agency that skirted the competitive selection process.”
LACK OF DUE DEMOCRATIC PROCESS
Water districts are not exactly bastions of representative democracy, despite their oft-heard cries of being “the governments closest to the people.” We have tsk-tsked at water districts in this column for a propensity to avoid the trimmings (such as, say, real elections), and are heartened that the grand jury shares our sentiments.
“An unusually high percentage of water board directors were originally appointed, not elected to their position,” the report says. “The Grand Jury reviewed over 35 years of information from the Registrar of Voters. The records revea
led that 20 percent to 80 percent of directors currently serving on any water board were originally appointed by the seated board members. Over 50 percent of all water district directors were originally appointed, not elected, to their positions. These individuals then ran for that office in the next election and usually won.”
There’s an interesting pattern, it said — one exemplified by the Irvine Ranch Water District, though the grand jury doesn’t name names. “ The typical example the Grand Jury found shows an individual winning his/her re-election bid. Subsequently, the individual resigns the position for a variety of personal reasons and a replacement is appointed. When this pattern is repeated over and over again, some authorities have viewed this action as a subtle method of ‘managing’ the process.” (Read our story about that here.)
And here’s a great one: Board member is appointed, then loses the next election; is appointed again, and then loses yet another election. “It is difficult to see how these types of actions promote the ideal of representative government,” the report says.
DINOSAURS
Roaaar; this is the governmental equivalent of “Jurassic Park.” Some water district board members have been in their seats for more than three decades.
“Another issue of importance concerns the length of time some individuals have served as board members,” the grand jury diplomatically notes. “Some board members have been involved with the same water district and re-elected for decades, thereby precluding individuals with new ideas from the opportunity to serve.”
Term limits are the answer here, the grand jury says.
ACCOUNTABILITY
Getting public input into essential public business doesn’t seem to be much of a priority.
“Many districts hold meetings at 8 or 9 in the morning, which prevents most individuals who are working at those times, from attending,” the report says. “Consequently, it is imperative that board meetings be scheduled at times that logically allow the most members of the public to attend.”
AND, SO? HOW TO FIX?
In addition to embracing term limits and rescheduling public meetings to suit the public, the report says that water districts should:
- Adopt more encompassing rules regarding the selection of professional consultants.
- Develop a specific code of ethics, hold training sessions and monitor enforcement.
- Hold elections to fill board vacancies. The appointment process should be used only in exceptional circumstances.
- Promulgate rules requiring each director to inform the other board members of any other offices including seats on boards of member agencies that he or she holds.
‘A NEW ERA IN PUBLIC INVOLVEMENT’
In a time of drought, shrinking water supply and rising water rates, it’s essential that the public get involved in these obscure agencies on which lives literally depend, the grand jury says.
“Persistent drought conditions and adverse court rulings have prompted the California governor to declare a state of emergency and some agencies have declared the first stages of mandatory water rationing,” the report says. “This increasingly deteriorating
supply will dramatically impact the price of water, which can be expected to double or triple in cost in the foreseeable future. Other important issues may include levying civil fines and sanctions, as well as policing for compliance. Given these circumstances, water will take center stage in the public’s awareness. They will choose to become involved, thus reversing years of neglect. With this new attention, the spotlight will be focused on water issues and those involved with administering these assets. The public will expect all water district boards to focus on innovative and cost-effective solutions especially in these economic times.
“The public is justified in expecting that their representatives operate in a transparent manner, for the best interests of their customers, as well as for the benefit of succeeding generations. Through future water board elections, the public will decide if their directors have been responding appropriately in this precarious environment. In deciding who should represent them, voters will examine how board members have originally attained their positions as well as how actively they have participated in the decision-making process.
“In some areas voters will be especially sensitive to delayed construction projects, such as reservoirs and pipelines that, when stalled, compromise public safety. They want straightforward responses and insightful explanations on critical issues from their boards of directors, not justifications for prior inaction. They will show little patience for distractions, questionable judgments and unwise decisions. In addition, perceived or actual conflicts of interest or divisive behavior will not be tolerated in this new era.”
Wouldn’t it be something if that came true?!
We’ll keep you posted on what the districts have to say. For the record, they are:
- East Orange County Water District
- El Toro Water District
- Irvine Ranch Water District
- Laguna Beach County Water District
- Mesa Consolidated Water District
- Moulton Niguel Water District
- Santa Margarita Water District
- Serrano Water District
- South Coast Water District
- Trabuco Canyon Water District
- Yorba Linda Water District
- Municipal Water District of Orange County
- Orange County Water District
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43 Comments
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It’s about time someone pulled these shadowy agencies out into daylight for more transparency. The public doesn’t understand them because it doesn’t have enough information, and the districts like it that way. They are “Good Old Boy & Girl” theocracies, their internal policies difficult to monitor. SCWD is an excellent example of a district that lets out consultant and/or vendor contracts to personal friends. When challenged, they claim that they don’t need to follow California Contractual Law regarding competitive bidding because they’re a special independent district. So they “single source,” that is grant fiscal monopolies to those they know and like….Worse, those who provide them with questionable justification for controversial projects. This type of incest does NOT serve their ratepayers and leaves room for “boosts” (cash kick-backs).
I would make it a point to interview the South Coast Water District, especially its president Dick Deitmeier who has gone on trips to faraway islands and has spent millions of the district’s money on consultants who never did any work. I interviewed some of those consulants who received about $20,000 a month and they even told me tthat it was good money and did what they were told to do.
This is a crooked district and it needs to be exposed.
Jerry A. Grunor
Dana Point, CA
949.248.7815
Personal gain and conflict of interest? This is a no-duh, no brainer. Water districts are used as political stepping stones.
HELLO . . PERSONAL GAIN AND CONFLICT OF INTEREST?
NAAAAAAAAAAAAAAAAA
About regulation when I get Gas the pump has been certified by the state weights & measures, but my water meter has been in front of my house for years, who certifies that the meter is reading the correct amount of water I am being charged for???
who could ever know?
what ever happend to doing the right thing or having pride in a job well done–
or being able to SHOP AROUND? i guess we just have to suck it up?
what does our county board of supervisors say?
city councils?
state officials?
i’ve been trying for about 6 mo’s now to get answers….
i thought this “MONOPOLY” thing and OPEN GOVERNMENT and Rico Act have all been addressed–
not here i guess— ; (
Lets break this down so it’s makes some sense.
Municipal Water Districts + Nepotism at Board Level + Co-mingling of Districts + Croonieism + Unaccountability..to anyone = MASS CORRUPTION!
I cannot accept this nor believe it, can this happen in Orange County…NO in America TODAY??
You bet ‘Bunky’! every stinking day! Welcome to the wonderful world of ‘The Shadows’! Pull out you’re wallet and join in the Fun!
If this is not an example of how corrupt things really are, I don’t know what is.
And THESE are the same group of scammers who are raising user rates…… how much more do they think the people are going to tolerate of this type of corruption????
MORE transparency…and laws that ensure these gammers when found guilty spend REAL time in a REAL jail….. and ensure there court costs are NOT paid for by the public.
Simply DISGUSTING behavior!!!
Do you go to your water board meetings as a member of the public? How much did you research the candidates at the last election to make your informed choice? Democracy is a responsibility. If you refuse to do your part and be an informed citizen, then you have no right to complain about TRANSPARENCY OMG LOL
The managment side of these government agencies, water, school, etc… are full of corruption. There may soon be class warfare, private sector vs. public sector, and it will not be based on words. I’ll put my money on the private sector, they have better aim.
you. me. main street. high noon.
Private sector like Halliburton? Blackwater? Yeah, they’re so clean.
This is like having the executives at Philip Morris in charge of tobacco regulation! Come on people get a clue. Time to clean house in the water regulation departments and get some new, current blood in there.
it is easy to stand aside point fingers, but that does nothing to solve the problem. all those who commented above, GO TO A BOARD MEETING!
these people get away with this because nobody is watching. once the public gets interested and starts showing up at meetings, demanding transparency and good governance, the game changes. remember, these water districts are in charge of a vital service. if they fail to protect your water supply, people die. there is simply no excuse for the public not to get involved.
here is Moulton Niguel Water districts board schedule:
http://www.mnwd.com/community/bod.aspx
When you arrive, say hello to directors Fiore, Buck, Lizotte, McKenney, Froelich, Kurtz, and Probolsky (when he finally gets his substantial meatpile into the room). While you are there, ask them what their connections are, and why it takes seven directors, paid up to $2000 dollars per month, plus full medical and retirement benefits, to manage a service area of only 27 square miles. (IRWD handles 179 square miles with only five directors).
Ask them why they are raising your rates, while at the same time reducing the safety and reliability of your water supply by cutting the districts operations and maintenance budget by 10 percent. ask them if they were aware that they are being watched closely, by employees and the public.
nice job, Teri
Why are they raising your rates while reducing costs?
Maybe it’s because the price your water is way up from the wholesaler? MWD raised their rates to the local agencies by 15% in January, and will raise them again by 20% in September; there is another raise in prices again later this year.
What do you propose the water district DO to keep bringing water to you in your southern California desert, if you complain about BOTH a rate increase AND an expense reduction?
perhaps you misunderstand, miss tea.
water rates (revenue) have been increased.
budgets (funded by water rates and property taxes) have been cut.
this means that your water is more expensive AND less reliable. This situation is a direct result of poor planning; had rates been adequately scaled during the last 20 years instead of the cost of water being hidden in your property tax bill, the rate increases by MWD would be more easily absorbed by its customers.
reducing expenses is not the same thing as reducing budgets. thank you for playing.
“had rates been adequately scaled during the last 20 years instead of the cost of water being hidden in your property tax bill”
And how do you think, in tax-averse Orange County, would people take 20 years of up-scaling water fees? I agree that the districts have to take some responsibility, but the voters have just as much to do with it. Several of the water board members of the past (they were voted out this year) on the MNWD board were pretty much single-issue board members - all they cared about was pandering to the public by artificially forcing the water rates down, at a dangerous expense to safety and reliability. What’s happening now is a course correction by the current board. People are fixing what’s broken; stop complaining already.
why do you keep telling us to go to meetings??!!
we the paying public SHOULD NOT HAVE TO ATTEND MEETINGS!
We thought that’s what we paid for– and to trust someone who is taking our money—
i dont leave home– what’s your excuse genius? is this my penence?
Exhibit A: “These agencies are shadow agencies with no transparency! I don’t know what’s going on at their meetings!”
Exhibit B: “I shouldn’t have to go to meetings.”
People DO go to public meetings, you know. It’s how the elected officials know what you think about what they’re doing. What would you prefer, that they personally call you at home after each meeting and read you the minutes?
You pay taxes for your kids to go to school too. Do you completely ignore the teachers ’cause it’s their job to teach your kids?
Why dont they investigate Rancho Santa Margarita Water, which serves Mission Viejo? They are the MOST corrupt agency EVER!
Who knew that simple H2O could be such a powerful thing. Why is it so? Why is an agency about water so corrupt and powerful? Maybe because I don’t really care? I don’t vote for any of these positions and haven’t had interest in it so officials can get away with so much more than other elected positions (some appointed).
You this becoming so common place now……..and I bet were just barely scatching the surface. If you look at all budgets from federal to state by state………………………WASTE
Another problem is that some of these Water Boarders (no pun intended) don’t even really LIVE in the district they represent, they just own property there and use the address as a “residence” marker.
In reading the conflict of interest portion of your article, the Grand Jury seems to be referring to the instances when Director Ergun Bakall did the Urban Water Management Plans for the retail water agencies that his agency (a water wholesaler) serves. According the your article, some of those plans apparently had to be redone. So how would the retail agency approach a Director that provides them with the water? Would they be held hostage because of that political relationship?
Thank you again Teri Sforza for another excellent article and a clearer view of this tangled situation that is so difficult to navigate on our own. This whole concept of people being appointed forever to what are supposed to be elected offices is a nightmare for citizens. We have this same situation in our city council in Laguna Hills where 3 of our council members are apparently allergic to any sort of “transparency or new ideas” and totally opposed to term limits. That’s a terrible situation but this situation involving our scant water supply is a citizen’s nightmare. The extent of “greed” involved in business and politics should no longer surprise us and this area consists of both business and politics. How much do we ever know about any of these water people when they do appear on a ballot - I suggest most of us know nothing. Moulton Niguel Water District services my area and I will be paying much more attention to it in the future. It’s really difficult for the average person to pay attention to Local, State and Federal Government much less water districts and on and on but it is clearly becoming increasingly necessary. Thank you to the OC Grand Jury and to you Teri, without watchdogs to warn us the dinosaurs in our government and governing boards will never be extinct
Just because people can’t be bothered to look, doesn’t make your water districts, sanitation districts, board of equalization, and other ’shadow agencies’ invisible.
With Respect to investigate Rancho Santa Margarita Water, corruption at that agency seems to start at the top and work its way down. Just start with the General Manager John J. Schatz and his wife Betty who hides behind with not having the same last name as her husband. Ho, its gets better when you take into account the positions these two hold within the district. Supervision and internal control stays with the family and friends. Sadly in 1993 the Board had a turn over and the fruit of change is still missing within SMWD. Consultations by experts are costing the SMWD large amount of money and are they really experts or friends of the top players. Lets her from the PR friend?
The solution is citizens who care enough about democracy to know what they’re voting on, not whining about how things aren’t handed to them on a glass plate. People who don’t bother to learn about your local government, who don’t bother to go to meetings (many of them are held in the evenings), and sometimes don’t even bother to vote, have NO RIGHT to complain.
Democracy is a responsibility. In a democracy, we get the government we deserve and have no one to blame.
I’m sure the Grand Jury didn’t find any conection to Moulton NIguel Board Member Brian Probolsky and his tie$ to Curt Pringle. Brian’s big brother (Adam) would never let little Brian get involed in such a scandal.
Although something smells fishy at MNWD. Speaking of smells; some of the homeowners and business owners on the corner of Crown Valley and Niguel can thank Board Member Larry Lizzote for the hideous sewer scent that fills that intersection and drives hordes of business away. Go to an early morning board meeting and ask about the sewer line that was moved from behind his house.
Posterchild, I’ve attended a MNWD Board meeting before and it was quite interesting. I noticed that the Larry Lizotte character you referred to has “sat” on the Board for thirty-some years. I’m not so concerned with the rates or the dirty politics but I do care about my water being safe for my kids to drink. I noticed they are one of the only Districts that don’t have an employee with “Water Quality” in it’s title or main job description. I hope while they’re busy slashing the budget at Moulton Niguel they don’t make anyone sick.
All right! This is more like it, true dialogue. This is the America I defended as a Marine. Thanks to the OC Register for creating this venue. It seems obvious that term limits need to be mandated by law County-wide, not just for councils but incestuous water/sanitation boards. Too many opportunities for mischief, for cronyism right now. Next, there is no water crisis, just a crisis of visionary leadership as a result of that incest: South OC is the only region in California that hasn’t pursued full, 100% Advanced Waste Treatment (AWT) in its treatment facilities. Sometimes referred to as highly cleansed “Tertiary,” 10’s of millions of gallons of potential drinking and landscape water gets discharged as pollution into the ocean off Dana Point and Aliso each day. This does not benefit the public, and represents the necessary, assured future water supply demands of our region. If SOCWA, the parent JPA and its 10 members in South County fulfilled their fiduciary responsibilities they should have already upgraded their numerous plants to 100% tertiary years ago—They knew these lower amounts from up North and from the Colorado River were coming 10 years ago, I heard them at meetings, and did little or nothing to plan ahead. They have failed, should be held accountable for their abject failure to protect us from threatened shortages. Yes, it will require money, but at least you’d know you were investing in your family and community’s heritage, doing the right thing regarding conservation and adverse impacts upon ocean ecologies. Instead, 30-40 million gallons a day,
Oooops, I hit the wrong button.
30-40 million gallons each day goes out from these 2 Ocean Outfall Pipes, enough (at 500 g/d per household) to provide water for 60-70,000 homes. The point being that a tremendous part of the so-called crisis is really one of leadership by water world board members and their staffs. The millions necessary to upgrade plants to full tertiary in all of SOCWA’s member facilities is basically a one-time purchase. By budgeting now, by educating the ratepayers, perhaps by liquidating some of those billions of $$$ in assets they’re sitting on to fund them, we’d have less panic when we go to the tap. Maybe someone should start a grass roots citizen committee, TAWT (Time for Advanced Waste Treatment), as in we’re at the end of our rope when it comes to these knuckleheads!
Roger, You seem to know quite a bit about the corruption and water crisis these Boards have created. I’m a customer in the Moulton Niguel Water District and I don’t want to become the next “Erin Brockovich” but do you have any info or tid bits about the Board Members at MNWD. I plan on attending more board meetings and want to know who I’m dealing with. Nancy
Nancy,
I would like to chat with you. I have some insider knowledge of the Moulton Niguel Water District.
Nancy, I don’t know how much Roger knows about Moulton Niguel Water Board Members, but being a rate payer and someone who knows some higher ups down at their office on La Paz I’ve learned a few things. But first I’d like to come to the defense of the MNWD Board. I read a comment by Squidmaurin who was concerned the MNWD Board has 7 members lining their pockets while most other Districts only had 5. Part of the reason they have 7 members is to maye pick up the slack for thier “Part-Time” General Manager (he just got an $8,200 raise) who spends a substantial amount of his time out of the state.
But the Grand Jury isn’t concerned with petty things like running the District from Idaho. They’re probrobly more interested in Brian Probolsky sending rate payer $$$ to his brother/campaign manager Adam probolsky. I’ll let you find out for yourself Nancy when you go to these early morning Board Meetings and ask the RIGHT questions.
Nancy & Poster Child:
The only one I know of on MNWD who is extremely suspicious is Larry McKinney—A former shill for the County of Orange, an attorney who specializes in helping clients to get around the regs, to NOT comply with enviro-laws.
I think the underlying theme, the common thread for those of us writing here is that the world of water/san districts is a lot like the ocean: Mostly unknown and unexplored, lots below the surface that’s just being discovered! We know more about Mars than some of the deeper recesses of the Pacific. My main gripe is that the members of the JPA called SOCWA (And MNWD is one of them) won’t provide leadership, communicate with the ratepayers, show some parental foresight. Yes, like our parents, they need to make some tough fiscal decisions NOW that will benefit their trusting customers later in life. Yes, as others have pointed out, going to meetings and getting yourself educated is critical but very time consuming. Scammers will always operate in the murky corners of any corporation. By getting hip, they can be exposed. The price for this, like freedom, is vigilance. We may not need to drain streams, nor build desalination plants. SOCWA already has millions of gallons of potential water in the treatment plants systems themselves. Ex.: Did you know that the briny waste from desalination plants is huge in volume, basically hazardous waste that can’t be dumped directly into the ocean, must be expensively transported to a landfill where it contaminates the ground? That desal plants gobble up incredible amounts of energy? This is only one reason why they’re so expensive. The money (OUR money) that SOCWA intends to use for a desal down at Dana Point could upgrade ALL of its existing major treatment plants. Guess who owns the property, who will benefit as the landlord? SCWD. They own that 30 acres next to the San Juan Creek. As writer Jerry Grunor pointed out, they have most of the internal problems and nepotism, are fined every year for some big violations. Next week at the Water Board Hearing (Cal/EPA) they’re being fined $204,000 for 68 violations in a 14 month period (2007-2008). That’s not THEIR $$$, that’s YOUR $$$, Mr. & Ms. Laguna Beach and Dana Point.
It is unfortunate that this is being discussed so far into the water game, but hopefully this blog by OC Register is the mustard seed. Many in Dana Point have been crying out for help regarding SCWD for years. I agree with Jerry Grunor: They would make a good first step for an extensive, past 10 year activity investigation for corruption by the DA. Make an example of one, maybe the others will get the point until citizens can get up to speed. It’s our $$$, it’s our environment, it’s our children’s heritage—We need to take back the reins of power from these shadowy folks.
My goodness, you do have an axe to grind.
has anyone else gotten a
“duplicate comment, looks like you already said that?”
msg from freedom.com and ocregister??
clean your cache after leaving this site people–
freedom to lie maybe!!
thx for the freedom– yeah right
Emery Ann…
thank you for your levelheaded response. You are correct re: single issue board members. I disagree with your assertion that the current board is working to fix the problem though.
the current board has reluctantly agreed to a rate increase solely to keep its bond rating and the ability to issue debt. the approved rate hikes will keep pace with the met increases, but do nothing to address the fact that the bottom has fallen out of the available tax resources.
as to attending meetings- of course you shouldnt NEED to. but when attendance is actively discouraged one must wonder…
squid
I would like to chat with any of you living in the Moulton Niguel Water District boundaries. There is a grate deal more involved here than you can imagine.
RICK, YOU SOUND LIKE YOU ARE STILL BITTER ABOUT BEING FIRED FROM MOULTON NIGUEL WATER, AND HAVE A BUNCH OF FREE TIME ON YOUR HANDS
They can appoint people to the water board by passing the voters of the county, definitely a no go. They raise the water cost when water supplies dwindle, they raise the water rates when water is plentiful.
They have executives who get bonus’s for merely showing up to work.
But then the water meter in front of my house is most likely the original meter install in 1954, and never calibrated since. Guess we need to buy more airplanes for the board, instead of more accurate meters for the bill paying customer.