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Archive for the 'Special districts' Category

$100,000-plus pension club in Mesa Consolidiated, Mission Viejo, Moulton Niguel

November 20th, 2009, 5:00 am by Teri Sforza, Register staff writer

joy-of-not-workingSo we continue our trek through the CalPERS database of public retirees today with three more OC agencies - which have five retirees who get pensions greater than $100,000 a year.

These three are interesting exceptions to the emerging rules. In general, the most well-paid retirees have been public safety types - police and fire chiefs - and they have been men.

But two of today’s agencies are water districts - so no expensive benefits for public safety employees; and the other is a city that contracts with the Sheriff’s Department for police services, thus keeping high public safety pension expenses off its own books.

And two of the three most well-paid retirees at these agencies are women. The agencies are:

  • Mesa Consolidated Water District in Costa Mesa, which has two (the top dog being Diana Leach, former general manager, $145,393.56),
  • Mission Viejo, which has one (former planning diretor Clinton Sherrod, $107,241.12)
  • and the Moulton Niguel Water District, which as two (the top dog being former administrator Carol Sanders, $130,674.36).

This brings total membership in the local CalPERS $100,000-plus pension club to a round 200, from 15 different public agencies. We still have a dozen to go. See full lists, links to previous stories and standard disclaimer below.

Read the rest of this entry »

Poseidon adventure: $350 million public subsidy for private desalination plant

November 13th, 2009, 5:00 am by Teri Sforza, Register staff writer

poseidon(Vote in our poll: Should Poseidon get the subsidy?)

The mighty Metropolitan Water District of Southern California agreed this week to pony up $14 million per year - or $350 million over the next 25 years, if you prefer to think of it that way - to pay for desalinated water in San Diego County.

That money will go to public entities - cities and water districts - to offset the cost of water they’ll buy from a private, yet-to-be-built, desalination plant in Carlsbad. That plant will be constructed and owned by Poseidon Resources LLC. 

If this Poseidon thing rings a bell, it’s not just because you remember Shelley Winters from the disaster movie. Poseidon is also working on a similar project in Huntington Beach. 

The San Diego project, however, is much farther along, and will be Southern California’s first major foray into ocean desalination. Construction of the $300 million-or-so plant should begin next year, and water is supposed to flow in 2012. It will provide enough water for about 300,000 residents, or  100,000 homes a year. (Over the quarter-century, that translates to some 1.4 million acre-feet of new water - nearly twice the capacity of Diamond Valley Lake, the region’s largest drinking water reservoir near Hemet, Met says. See Met report here: met-desal-report)

Poseidon hopes to issue more than $500 million in tax-free bonds to construct the Carlsbad facility.

The $350 million public dollars that will make their way to Poseidon’s pockets over the next quarter-century come from Met’s Local Resources Program, which aims to boost SoCal’s own water supplies, and reduce dependence on the imported stuff. It’s a controversial move:

  • Critics want Met to fund public projects, not private ones.
  • Environmentalists worry about the impact of highly salty brine, a byproduct of desalination, and want to pursue cheaper alternatives (conservation, recycling, recapturing stormwater and the like).
  • Others worry about Poseidon’s splotchy track record. Read the rest of this entry »

Vote! Should Poseidon get $350 million public subsidy for private desal plant?

November 13th, 2009, 4:59 am by Teri Sforza, Register staff writer

poseidon1(Read the main story here)

The Metropolitan Water District of Southern California agreed this week to pony up $350 million over the next 25 years to pay for desalinated water in San Diego County.

That money will go to public entities - cities and water districts - to offset the cost of water they’ll buy from a private, yet-to-be-built, desalination plant in Carlsbad. It will be constructed and owned by Poseidon Resources LLC.

Some feel that Met should be funding public efforts to find new water, not private ones. Others worry about the project’s effect on the environment. And still others question Poseidon’s ability to get the job done.

So. Should Met - whose money comes from the 19 million Southern Californians who pay for water through their cities and water districts - cough up the $350 million?
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Greed forces local governments to blow $504 million on lawsuits, group says

November 9th, 2009, 5:00 am by Teri Sforza, Register staff writer

ladyjusticeA handful of local governments in California spent more than a half-billion dollars dealing with lawsuits over two years - including $14.2 million spent by the good County of Orange, and $4.4 million by the city of Anaheim, according to a report released by California Citizens Against Lawsuit Abuse.

“Not only are these costs outrageous in their own right, the money spent by Orange County in just one year could have more than paid for both the county’s Domestic Violence program and Emergency Medical Services,” said the group in a prepared statement. “In Anaheim, one year of litigation costs could have maintained 146 acres of park and 105 sports fields for the same year.”

Of the nine counties examined, Orange County had the fourth-highest total spending on lawsuits - much more than similarly-sized San Diego and Santa Clara counties. See charts of totals below.)

Of the eight cities, Anaheim ranked No. 7.

“Orange County is facing severe cuts to vital services and programs like public safety, parks and education,” said Maryann Marino, Southern California Regional Director for the group, in a press release. “Yet we are doing nothing to curb litigation costs, which could actually provide substantial savings to local governments without sacrificing jobs or programs.”

The group acknowledges that some lawsuits are meritorious, but “(g)overnment entities are too often seen as deep pockets, even in today’s tough times, and abusive lawsuits are filed in an attempt for some plaintiffs to get rich quick,” the report says. “With many of these lawsuits being filed on a contingency fee basis, plaintiffs’ attorneys have plenty of motives to file lawsuits in the hopes of a quick settlement or a large verdict.” Read the rest of this entry »

PR consultant earned $295 an hour to champion doomed labor contract

November 3rd, 2009, 5:00 am by Teri Sforza, Register staff writer

marathonIt may be worth noting that the fee paid to attorneys working death penalty cases is some $150 per hour.

Far better, then, to be the strategic communications consultant hired by the Metropolitan Water District of Southern California, to help shepherd tentative labor contracts to fruition.

Lichtenstein & Associates - doing business as Marathon Communications  - inked a deal with Met in July that pays it $295 per hour, “plus necessary expenses at Consultant’s actual cost without mark-up.” The mission: “To provide strategic communications consulting and counsel in support of Metropolitan’s labor agreements.” (See contract below.)

Marathon pulled down $25,000 in July, and $17,026 in August. (No billings yet for September.) The deal, for up to $100,000, runs through next year.

It may also be worth noting that the labor contracts Marathon was to champion to the public were withdrawn from consideration, after Met’s board signaled its displeasure last month. (The contracts included a pay raise of up to 23 percent over five years, and a pension hike of 25 percent forever. Board members - from SoCal cities and water districts - couldn’t vote for that in the midst of recession.)

Marathon Communications’ job was not to simply respond factually to questions about the contracts, but to mount something of a campaign in their favor. To wit:   Read the rest of this entry »

Turbulence is part of the ride, consultant says; Met will find labor solution

November 2nd, 2009, 12:23 pm by Teri Sforza, Register staff writer

argueWhen we at The Watchdog asked how much has been spent on consultants working on labor negotiations for the Metropolitan Water District of Southern California, we noted that the biggest bills came from Agreement Dynamics Inc (nearly $300,000 through July).

Agreement Dynamics advocates a kinder, gentler approach to negotiating called “interest-based bargaining.” This produced a controversial labor contract that was withdrawn earlier this month, and sent back to the drawing board - which has given rise to some hard feelings on the part of some employees. 

We asked Agreement Dynamics what their thinking was about the procees now, and where things might go in the future (Met hopes to have a new agreement on the table by February). Here’s the response we got from Rhonda Hilyer, president of Agreement Dynamics:

Thank you for your question about interest-based bargaining at the Metropolitan Water District of Southern California. In my opinion, it’s a very important question because the outcome of this process will have a profound influence on this organization and those it serves.

Having been involved in labor relations for over 35 years, I have never seen unilateral approaches benefit any party over the long run. Interest-based bargaining is more challenging than traditional, position-based methods because it requires all parties to seek mutually-acceptable solutions. Like any negotiations, it can get very turbulent at times.

What will happen at Met? Read the rest of this entry »

Consultant’s bill for harmonious labor negotiations: $300,000 and rising

November 2nd, 2009, 5:00 am by Teri Sforza, Register staff writer

agiThe kinder, gentler and much-ballyhooed “interest-based bargaining” process - which produced a controversial labor contract that was withdrawn earlier this month and sent back to the drawing board - will cost the Metropolitan Water District of Southern California more than $300,000 in consultant costs before it’s all done.

Met hired consultant Agreement Dynamics in February 2008 to help keep the peace as it plunged back into labor negotiations with its employee unions, which have proved quite contentious in the past (and, judging by how some employees reacted on Oct. 13, may well prove quite contentious again).

The consultant’s original contract was not to exceed $200,000 and was amended several times, now extending to February 2010 (see contract: agrdynamics).

Agreement Dynamic’s billings through July were $282,093 (see met-billings-to-date), with many thousands of dollars sure to come.

The use of a consultant to help smooth labor negotiations is certainly not unprecedented. However, the much larger County of Orange, which has some 18,000 employees (compared to Met’s 2,000) and some contentious labor history as well, generally negotiates union contracts in-house, officials said.

Met’s attempts at harmonious negotiation don’t come cheap:

  • Agreement Dynamics’ head honcho, Rhonda Hilyer, charges $2,500 per day for her services. If you’ve only got a half-day’s worth of consulting for her to do, the charge is $1,500; and if it’s less than that, she bills $250 per hour (and ”less than an hour’s work will be billed at a prorated amount based on 15-minute increments,” the contract says.) Read the rest of this entry »

O.C. water exec gets raise and $15,000 bonus

October 28th, 2009, 3:09 pm by Jennifer Muir

ocwd-gmAs public agencies across the state are cutting their budgets and laying off staff, the Orange County Water District’s board has approved a 10 percent raise for its general manager.

That means Michael Markus will be collecting $215,000, up from the $195,000 he’s been earning since he took over the job two years ago. Plus, he gets a $15,000 one-time bonus.

Oh, and the pay raise will be applied retroactively to July 1, 2009.

District board member Philip Anthony says Markus deserves the pay raise to reward the hard work he’s put in over his 20 years with the district, including spearheading the construction of a sewage-to-water reclamation system that turn 70 million gallons of treated sewage into drinking water every day.

“It’s a world-famous project,” Anthony said.”He and our district received awards worldwide. He’s done an exceptional, unusually good job. And his job, as is, is a lot bigger than (other water district managers) who make a lot of money.”

Read the rest of this entry »