BHGC, An Unmitigated Disaster Waiting To Happen.

Today, Brea Matters again addresses the recent vote by Council to assume title of the BHGC (Brea Hills Golf Course).

Red DiceWhen I launched Brea Matters in October 2011, a key catalyst was former City Manager Tim O’Donnell’s favorite definition of leadership, “Leadership is disappointing your constituents in increments they can absorb.”

Long ago ingrained as the management mantra of Brea’s Council and Staff, it has proven to be sadly accurate in it’s premise.

How Much Have You Absorbed?

In ten years, I’ve lost track but in recent times we’ve “absorbed” the disappointments of the 1976 Paramedic’s Tax, the 1991 RDA bond refinancing that produced a $50 million unaudited slush fund, the loss of the Gateway Center – a prime city asset, loss of the Yorba Linda Police contract, reorganization of the Brea Fire Department.

Plus the mismanagement of Landscape, Lighting & Maintenance Districts (LL&MD) and Community Facilities Districts (CFD), Tiered Water Rates, and these self explanatory fiascos: Koreagate, Madrona, Rock Garden, unfunded pension debt and Brea Envisions

Council and staff count on our short memories and propensity to forgive. Next Tuesday they will once again rely upon their old mantra to get them off the hook one more time.

Misdirection, Misinformation and Misconceptions.

The first thing you’ll be fed is a litany of useless historical “facts” designed to lull you into a dull sense of inattention. Detailed descriptions of the “parties” involved, clarification of the original intent of the title exchange and justification of redesigning the course into substandard quality.

They’ll try to justify the ridiculous $80/yard excavation fee as a basis to project future mitigation fees. Everyone put your calculators away. We’re missing one important factor in the equation, without which no accurate projection is possible. They have no clue exactly what the remaining unmitigated condition of the BHGC is, how many acres… how many yards of “dirty dirt”… remain after the admitted partial mitigation done to save Chevron $13 million in additional costs.

The BHGC: Permitted Uses, Prohibited Uses.

We’re told, by the City Attorney, that permitted uses include a golf course or other outdoor recreational use, and the addition of a community or banquet facility. Prohibited uses include residential development, hospitals, clinics and medical offices.

So, does “permitted” mean legal and “prohibited” mean illegal? These terms have been tossed about as equivalents and they’re anything but!

City Attorney Boga stated that, with certain permissions, the city could do whatever they wished with the property. Permissions from OC Healthcare Agency, US EPA, Birch/Kraemer LLC and Union Oil.

He failed to mention that, assuming getting all of those permissions was even remotely possible, that Chevron would be absolved of their requirement to maintain the parking lot and the city would assume the responsibility.

Plus, changing the BHGC to a non-park use requires voter approval of Brea residents. Really?

When Is Our Voice, Our Vote Obligatory?

BHGCDid we get to vote on whether we were willing to trade the $8 million In Lieu Fees for the eventual title to a semi-toxic stripped down golf course worth, at best $5 million? No.

Did we ever get to vote on whether we believed the city, in addition to routine municipal responsibilities, should be free to commercially compete with all manner of local businesses? No.

Did we get to review the detailed legal documents and agreements required to effect this transfer of title and vote whether we supported the transfer with all of its complicated and fiscally threatening limitations? No.

One member of Council, for reasons I still find incomprehensible, was recused and the four remaining members of Council voted unanimously to take ownership of this white elephant.

Have You Absorbed Enough Yet?

I have! And if response to the prior blog and commentary on the Brea Buzz is any indication, many of you have reached total saturation as well.

You’ve got about two days to make your thoughts and concerns known to Council before they launch into their dog and pony show to justify the unsupportable vote they cast two weeks ago.

Juked out of simply putting their propaganda on the city website, thereby giving it the full weight and credibility of the interwebs, they’re stuck making it look like a formal report Tuesday evening.

Luckily Matters From The Audience follows this sugarcoated attempt to justify after the fact… so those of you with the chutspa are welcome to step up to the podium and give these folks a piece of your mind.

Matters From Don Parker.

Last Tuesday, at Matters From The Audience, Brea Deputy City Treasurer Don Parker dropped a bombshell on Council and staff. There seems to have been yet another case of “less than best practices” on the part of staff and there could be a cost to approaching a million bucks.

Emerging from a nine year series of amendments (six actually) to a professional services agreement with Ninyo & Moore for their work on the Rails-To-Trails project that increased their cost from $24,500 to $1,034,777.30 – 42.3X the original estimate.

Don’s Report To Council.

I said I would review the contracting done when the City auditors questioned costs and I am here to comment on that. As background, the contracting for soil testing and services on the Tracks project was questioned because the file(s) “could not be located” but I looked at the contracting.

In 2010, an agreement was approved with Converse Consultants for a soil remediation plan. The report indicated their bid was $46,100 and the high bid of Ninyo & Moore was $55,200. A consent item approved their contract for $55,200. No I have not misspoken, the low bidder was given the high bid price with no explanation as to why. In my 40 plus years of municipal auditing and accounting I have never seen this done and no one questioned it. What was done with this difference is unknown.

(Burying items like this on the Consent Calendar has become de rigueur for city business whenever they prefer to keep the public in the dark. More on this later.)

In 2012, Ninyo & Moore, prior high bid, proposed $19,500 for a soil remediation plan and a contract was prepared for $24,500. Again I have not misspoken as this was $5,000 more than their proposal with no explanation. Since this was under $25,000 “policy limit” our prior City Manager approved it. Where that $5,000 went is unknown.

(Hot button number two – City Manager purchasing authority. Are you serious? It was purported to be $25,000 back then (2012 and prior) but no one could establish when or even if this was approved by Council!

Today the rumor has doubled to $50,000, with no indication as to how many times a year the City Manager can exercise this authority. I’ve filed a CPRA request to document details of this. We’ll see what the City Clerk can dig up.)

In 2013 through 2015, the first through third amendments were done and approved on consent for $200,000, $70,000 and $40,000, respectively. Supposedly because original estimates of soil depth, etc. were in error.

(Note: As a part of soil remediation work, a separate contractor is required to provide oversight to ensure that the cleanup meets the standards of both the City and the local regulatory agency, which is the Orange County Health Care Agency.

So, this exponentially escalating cost is only part of the expense. This is for analysis and oversight. Another contractor had to dig up the arsenic laced soil and properly dispose of it. When I mentioned this to a friend they chuckled, “Maybe ‘the roads are paved with gold’ didn’t come from Dick Whittington and his Cat after all.”)

In 2016, the fourth amendment was approved on consent for $60,700 again for additional soil testing services. However, now in the staff report it was stated that Council approved the original agreement with Ninyo & Moore in 2012. As I have indicated, and as confirmed by your City Clerk, the original agreement in 2012 was never approved by Council. This misinformation started after our current City Manager took his position and I believe this was added to justify using this vendor

In 2017, the fifth and sixth amendments were approved by consent for $218,144.30 and $421,433, respectively for segments 2, 3 and 4 of the project. Each of these segments should have been bid separately. Instead, they were just given to the existing firm. Repeatedly in these staff reports it was stated that Council approved the 2012 original agreement which was a lie.

(Not unlike the lie that the Paramedic Tax was for the sole purpose of developing and maintaining a mobile intensive care paramedic service. Now we know it was just another honey pot. Anyone but me starting to see a pattern here?)

In summary, we have contracts awarded for amounts in excess of the proposals received with no explanations of why or where those monies went. A contract which started at $24,500, approved by our prior City Manager, which was increased to $1,034,777.30 with no additional bids to protect the public’s money. Staff reports repeatedly misled readers into thinking the original agreement was Council approved but it never was. Community Development staff, management and our prior and current City Managers cut corners, prepared false staff reports and possibly enriched themselves or others to the detriment of our City.

Our auditors did not comment on these situations so we are lucky they did not follow through. However, it is possible we still could have to repay these monies. In any event these situations occurred and they do time and time again. When is Council going to say enough is enough and start holding City management accountable and protecting our monies? I guess just approving false staff reports is easier.

D.P.

So, where do we go with this? How about starting to hold Council accountable to do what we elected them to do. I think the popular term today is ‘community driven governance’ – something I’ve been advocating for many years.

So, What Have We Learned?

We’ve learned that our Records Retention Schedule allows critical records and important public documents to be routinely dumped every 90 days. Stuck in the sixties, the City Clerk has no control over electronic communications… the IT department has their servers set on auto-purge.

We’ve learned that a deceptive plan to do an end run around Prop 13 gave us the Paramedic Tax. Millions of dollars, almost half of what has been collected since 1978, has been diverted to pay for development debt and other obligations not even remotely related to the paramedic services Brea voters believed they were creating.

We’ve learned that, for decades, the Consent Calendar has been used as a bureaucratic black hole to hide everything Council and staff wanted to keep from public view. Thankfully, in recent years, several Breans have become quite talented at spotting the big fat checks disguised as routine expenses.

We’ve learned that the City Manager has a huge treasure chest he can dip into at will without Council’s knowledge, oversight or approval… and we’re about to find out if it’s even legal.

We discovered that our appointed Cal Domestic Board Members unanimously approved combined stipends from Cal Domestic and their for profit subsidiary Cadway totaling a potential $24,000 a year income. That’s 3 or 4 times Council’s base stipend.

Council has been requested to require these public servants to file the annual CA Form 700 Statement of Economic Interests and Council is balking. Unless they call a special meeting, which they won’t, they’ll miss the deadline and face a formal complaint being filed with the FPPC.

 

Planning Commission Blindsides Breans.

commission meetingI am still dumbfounded. With Chairman McGrade at the helm, carefully steering the Planning Commission towards an all too obvious destination, there was no hint of addressing the larger issues.

As people gathered for last night’s meeting, Director of Community Development David Crabtree was asked how he expected things would go. He smiled and responded, “It’s in the Commission’s hands now.”

Where did that confidence come from? What might he have known that the rest of us, on pins and needles, failed to understand?

My opinion? He knew the Commission had been prepped that process issues were not their responsibility, but Council’s. I think Commissioners realized that if they challenged process issues the City Attorney would have interjected and shut them down.

Consequently, there wasn’t a whisper about document destruction, the Records Retention schedule, arbitrary limitation of what the Commission was allowed to see or using an addendum to restrict public input.

Also my opinion, Chairman McGrade began his path to orchestrating the flow of discussion last night in January 2016, when he interjected himself into the selection process for Vice Chair.

Coincidently, this occurred at the exact same time that Planning Staff was rejecting the ICF proposal, deleting it from public record and moving forward with the addendum to the 2003 General Plan EIR.

Back to the meeting.

Dejected but still hopeful, a half dozen folks addressed the Commission during Matters from the Audience. They restated their concerns over density, building mass, traffic and parking — the big four.

The standout comments came from Dwight Manley. He shared a legal opinion from an environmental attorney clearly pointing out the gross error in using a General Plan EIR, which is a program level document, to assess a specific project… 14 years after the fact.

Right as rain, Dwight’s comments fell on deaf ears and Chairman McGrade moved on, without comment, and opened deliberation.

First to speak, Chairman McGrade set the tone by establishing his support for the project and his belief that everything was above board and legal.

Next up, Commissioner Schlotterbeck who went to great lengths to share the impressive extent of her due diligence. She reviewed thousands upon thousands of pages of highly technical and legal documents.

She also remarked that the public, whom she cared deeply about, had only a very limited understanding of CEQA. She cited specifics from the California Public Resource Code that proved there was nothing in the Hines project that violated law.

She also suggested that the project only complied with about 80% of the General Plan but failed to offer how to mitigate that shortfall. That’s like a transplant surgeon telling you that your new heart will work really well 80% of the time.

There are two solutions. Amend the General plan to accommodate the project so it is 100% in compliance or alter the project. Neither was done or even suggested last night.

Commissioner Schlotterbeck also raised the possibility that building “B” on the north lot might best be changed to condo/townhome product to lower density and add a very needed type of housing to Brea’s inventory. Other than weak applause from a few residents, the idea went nowhere. Why?

I’m wondering if changing from apartments to single family homes would trigger the need to change the zoning from Mixed Use to Residential. Such being the case, a new EIR would be automatically required. Not what Staff or Hines wanted.

Commission hits an impasse.

Chairman McGrade suggested a short break for Hines to discuss what options they were comfortable with moving forward. With Building “A” and the Hotel apparently in the bag, all that remained was to fix the density complaint for Building “B”.

Interjection: There is no way in hell Building “A” and the Hotel should have been given a free ride at this point! Everything should have remained on the table 

The likelihood that a creative solution could be instantly designed when it took the better part of a year and a half to get to this point was nonsense.

During the break I asked one Commissioner, if none of them cared about the breakdown in process and the look I received in return said it all. There was clearly the presence of a sad inevitability in their eyes. Their shoulders shrugged and they plodded, dejectedly, back to their seat.

For weeks, if not months… Hines, their attorneys, architects, engineers and consultant, John Koos, hunkered down in a conference room playing “what if” with every scenario Koos might imagine.

Over the break, all they did was find the right page in their playbook.

They didn’t even mention the condo/townhome option but jumped straight to a mashup of 3 and 4 stories reducing the density from 285 units to 228 units, leaving the total number of project units at 690.

This reduced the “B” building by this mystical magic number of 20% but something markedly less is true for the entire project. Neither the massive Building “A” on the corner or the Hotel across the street has been touched.

Back to deliberations.

As they did earlier, Vice Chair Willis and Commissioners Fox and Grosse added little to the discussion… all echoing concerns for density, building mass, traffic and parking — reaffirming their lack of support for the project as proposed.

Armed with this get-out-of-jail-free card, all that remained was to morph Brea Place into something different than what was currently proposed. The Commission moved on with a single minded determination.

I was reminded of the used car salesman eye-to-eye with the first prospect of the day… “What will it take for me to put you in this little jewel today?”

No interest in whether the heap of junk was even close to meeting the prospect’s needs, let alone their dream of a new car. No concern that the rattling valves and acrid smoke coming from the tailpipe were clear signs of a car on it’s last legs. Unworried that the greater expense of maintenance would likely crush the prospect later.

It was all about closing the sale.

The people of Brea got steamrolled last night. Staff knows it. The Commission knows it. Hines, their consultant, attorney, architect, traffic engineer… they know it.

The last to realize the unthinkable had occurred were the folks with the red buttons and the high hopes.

Will there be an appeal when, inevitably, the project with it’s crushing density, easily foreseeable flood of traffic and long list of overlooked negative impacts is approved?

Maybe, maybe not.

“Leadership is disappointing your constituents in increments they can absorb.”

This O’Donnellism, this longstanding municipal mantra, once again proved prophetic. I’m not fond at all of the fatalist’ mentality, but this feels a lot like, “Game over.” 

I’m unwilling to give up. How about you? Are you ready to roll over or will you take some time out of your busy day to become part of the solution?

Markman & Flower