Bungling Boutique Boondoggle Blunders

Some folks have been asking about the fate of the idiotic “boutique” hotel project that had morphed into a hideously overbuilt hotel/apartment hippogriff that is twice the allowable density permitted per the City’s own Transportation Center Specific Plan. Of course the project was never contemplated at all in the Specific Plan, so who cares, right? Fullerton being Fullerton.

In an act of utter incompetence the City actually rushed the approval to transfer of title to the land, before the deal had received final approval. Then they gave it away the land for pennies on the dollar.

Friends may recall our last October post in which we discovered that the new “developer,” one Johnny Lu of TA Westpark LLC, was way upside down on loans he had somehow leveraged on apartment blocks in Irvine and was in default.

You may also recall that Lu started shifting the property to different corporations, the first of which, a Delaware corporation, was non-existent. And just for grins, Mr. Lu changed the property description, too, when he later deeded it back to his California Corporation.

Anyhow, it looks like Johnny has finally created and recorded the appropriately named Delaware corporation in March – only two years too late, but, hey, not bad for Fullerton, right?

There has been nothing but radio silence from City Hall as to the status of Mr. Lu and whether he has met any of the stipulated deadlines in the Development and Disposition Agreement, but as we have learned in the case of the Florentine/Marovich sidewalk heist, contractual obligations mean nothing when the “I Can’t Believe It’s a Law Firm” of Jones & Mayer is your City Attorney. Recently, cluelessly verbose Shana Charles indicated that the project was still alive and well. She didn’t mention Mr. Lu’s financial embarrassment, but then nobody else has, either.

And now for some sadly interesting news. It turns out the original Founding Father of the boutique hotel concept, Craig Hostert of West Park Development – the guy who sold the idea to Jennifer Fitzgerald, Jan Flory, Jesus Quirk Silva, Ahmad Zahra, Bruce Whitaker, et. al. – died in late May.

Hostert

Poor guy. He went to his Reward after getting pushed out of his own scheme, and sticking us with the appalling, metastasized mess the concept has predictably morphed into; showing that once again, no bad idea goes unappreciated in downtown Fullerton. Being Fullerton, of course.

New Well. Same as Old Wells

A new testing well has recently appeared on Walnut Avenue next to the source of trichloroethylene contamination at 311 South Highland Avenue. Friends may remember that this contamination has been monitored by the Feds and the State agency responsible for tracking such things. Here’s the drill rig crew hard at work installing the well casing.

Of course FFFF has already noted the existence of the contamination of the property and its neighbors in the context of the dismal $2,000,000 Trail to Nowhere, pet project of Ahmad Zahra and his colleagues on the City Council; FFFF also identified ten testing wells on the trail site, plus a couple more in the middle of Truslow Avenue. Apparently testing is now taking place to the north, on Walnut Avenue, too. That’s not very good, is it?

The City of Fullerton claimed and still claims that there is no problem with their trail site and apparently the State Natural Resources Agency, the bureaucracy that doles out grant money, remains incurious as to why no mention of trichloroethylene has ever been made by Fullerton’s environmental consultants in their reporting.

Meantime the City continues its silence about the growing plume that could be moving northward, too.

Of course public employees are indemnified for their activities, no matter how incompetent or based in misfeasance. It’s the public that gets to pick up the check.

I Wanna Paint It Black

So somebody noticed that a new downtown “club” called Kalaveras is opening. Looks like they have painted the rear of their building black.

Apparently they have also expanded their business into an adjoining property.

The trouble is, according to our correspondent, their Conditional Use Permit is only for 122 W. Commonwealth and work is being done next door – at 120 W. Commonwealth – which is not covered under the CUP. Oops. It looks like they’re actually putting in underground plumbing.

Black is the new black…

I don’t know if this information is accurate, but I know if it is, the City will likely do nothing about the scofflawry, Fullerton being Fullerton.

As far as the black exterior is concerned, it’s hard to believe that the City actually approved of this since elevations must have been submitted along with the CUP application, and yet Fullerton’s Planning Department has been so inept and careless in the past that maybe it seemed okay, Downtown Fullerton being all about coolness and hipness and a wonderful, vital, -$1,500,000 per year success, and all.

It’s entertaining to recall that the location of this operation is the same place that Slidebar, DTF’s Nexus of Nuisance used to occupy. That owner, Jeremy Popoff, went years operating without a CUP, breaking just about every rule in the book.

The Fiscal Cliff

The Fullerton City Council is holding a special meeting tonight – a 2024-25 Budget “workshop.” No work will get done but there will be shopping going on as staff begins its formal press to raise a sales tax.

There is a lot of self-serving verbiage about how well our City staff has performed its tasks up ’til now, but then the hard reality hits because budget numbers can’t pat themselves on the back.

There are some harrowing numbers in the proposed budget – including a $9,400,000 draw-down from strategic reserves. This means of course, that the budget is no where near balanced as City Hall apologists like Jennifer Fitzgerald and Jan Flory claimed when they ran the place into the red almost every year.

M. Eric Levitt. Will he save us from ourselves?

Let’s let our City Manager, Eric Levitt tell the tale:

Financial Stability. The City has been able to over the last two years (for the first time in recent history of the City) to reach and maintain a 17% contingency reserve level. This budget maintains that reserve level; however due to an operating deficit, we will be utilizing one-time excess reserves this year and coming close to that 17% level in FY 2024-25 and below that in years beyond next year

Read. Weep.

The overall picture gets even worse as the levels of reserves slowly dwindle away. After this year Fullerton continues to be upside from $7.5 to $8.8 million each year until the end of the dismal decade. We are not favored with the running reserve funds balances.

Infrastructure is supposedly a big deal. Which reminds me of a quotation attributed to Mark Twain: Everybody talks about the weather but nobody does anything about it. But this year we are told, we can push get going on our deteriorating infrastructure along by borrowing! Once again let’s heed the words of Mr. Levitt:

I have also put together a strategy to increase that funding level to closer to $14 million over the next four years through the use of financing. However, there are both upsides and downsides to this approach which will be discussed with you in more detail at today’s presentation.

Now this should be a red flag: borrowing to perform maintenance, a basic accounting no-no. And what form will the borrowing take? Not a municipal bond, you can be sure, It would likely be by selling certificates of participation or some other dodge to avoid municipal debt restrictions. Here’s the table that shows our Maintenance of Effort (MOE) shortfall without financing.

Now we all know that interest payments are made by somebody, somewhere, and that somebody is you and me. We get to pay the interest on debt incurred by years of municipal mismanagement by people like Joe Felz and Ken Domer and Jeff Collier who get to sail off to a glorious and massively pensioned retirement at 55 years of age.

And finally, to circle back to the story lead, here’s a distasteful nugget carefully slipped into the City Manager’s report:

“Staff recommends City Council review options over the next year to stabilize the budget and ensure the City remains financially sound.

Jesus H. There it is. Not quite explicitly stated, but we know very well where this is going. Another general sales tax effort, just like the ill-fated Measure S of four years ago. The seeds for this have already been planted, of course, in a nasty little taxpayer-funded fishing expedition in the guise of a community survey. Last November I regaled the Friends with this slimy maneuver, here.

How did things get so bad?

By the way, this is exactly the same process City Hall rolled out four years ago. And we will be told By Ahmad Zahra, Shana Charles and Vivian Jaramillo that if we don’t pony up we will be morally deficient.

Well, good luck Friends. This is going to be a long year and you can bet the farm that we will be asked to pick up the check – again.

Dysfunction Junction

Denial is a fairly common human condition, but normally it involves interpersonal relationships and fact isn’t always that easy to ascertain. It is also quite common in politics where one’s emotional beliefs and prejudices are set against somebody else’s. And then there’s the case when bald facts are staring you in the face and you just can’t allow the cold truth to intrude upon your fantasy.

Nowhere is the latter situation better seen than in the City of Fullerton’s attitude and actions involving the “downtown” area.

Business is booming…

It’s not real complicated. The City has known for almost two decades that downtown Fullerton was a money loser. A big money loser. And yet nary a word of complaint or criticism of the booze culture of downtown Fullerton has been uttered by the bureaucrats and politicians.

The most recent analysis was essayed 7 years ago. Here’s the money shot:

In 2017, the taxpayers of Fullerton were subsidizing the bar owners to the tune of almost $15,000 per liquor joint, each and every year. Three quarters of a million a year. Of course this was just for “public safety” as noted:

We focused on the public-safety facets of this study alone, and did not include the development and maintenance services costs Fullerton audited. We illustrate below Fullerton taxpayers were effectively subsidizing bar and restaurant establishments – to the tune of about $15,000 per establishment – all to cover the costs of police, fire and rescue services provided to the establishments and their patrons.

We know that maintenance and code enforcement and the legal services of Dick Jones and his I Can’t Believe It’s a Law Firm jack up the cost to well over a million bucks – $1.4 million being the overall cost previously discovered. And there are now over 50 bars.

Another award!

Think of it. During hard times and good, the taxpayers of Fullerton subsidize the likes of the Florentine family and the Marovic mob and the Poozhikala posse, while they make a fortune peddling fish bowls of booze to out-of-control miscreants and ignoring the law.

And still City staff insists on describing downtown Fullerton a glowing success story, a triumph to be built on; of course they aided and abetted in the charade by city councils that are marked by political cupidity, stupidity and a desire to look like they have accomplished something. Anything. For decades these people have crowed about their achievements in DTF, even as they desperately crammed more and denser housing blocks in and around main streets – hoping a captive audience would somehow help. It didn’t, and by the early 2000s the City decided an open air saloon was just the thing. And then the restaurants morphed into bars and then the bars morphed, illegally at first, into nightclubs.

I can keep this up all night…

As things got more lawless, and even some like Dick Jones lamented the “monster” he had created, the only thing that happened was that things got worse. Blasting noise, random violence, sexual assaults, human waste, mayhem, shootings, sadistic and pervy cops – you name it – caused no retrospection in City Hall about what had, and what was happening. It was all a big victory, and you don’t second guess a victory.

Well, things are looking glum fiscally for Fullerton according to last years budget projections and we will be told Ahmad Zahra and Shana Charles that we must bear the burden of a new sales tax jack-up in order to keep the creaky old jalopy going.

I say fix the financial sinkhole that is downtown Fullerton before you stick your hands in our pockets.

Council Ponders Parking Puzzle Pilot Program

Lots of people have lots of cars. And the on-site parking plans of the 50s, 60, and 70s multi-family housing just don’t work anymore. We all know that. Even single-family neighborhoods suffer from the same issue – adults’ cars, their kids’ cars, and a garage full of crap.

In 2023 the Fullerton City Council directed staff to consider the issue of early morning parking prohibition, a device to keep people from parking on the streets overnight. The current situation is that certain streets with multi-family housing or old, pre-1940 houses have been granted a waiver. An applicant’s address could also get a one-year “hardship” permit with an extensive review process and a $250 permit fee.

After an 11 month gestation period, staff labored hard and gave birth to a “pilot plan” proposal that would keep existing street and individual waivers/permits, but that would make it easier, supposedly, to get a one year permit – with four one-year options.

The issue is Item #7 on the 3/19/24 Agenda consent calendar.

The staff report provides the usual entertaining history of a Fullerton topic, like downtown nuisance noise, that never seems to get fixed.

As usual there are options presented that are really just non-starters to make the desired option look better. Option 1 is to do away with overnight parking altogether – a surefire recipe for political disaster. Option 2 is to get rid of street/block waivers and also hardship permits, and let anybody apply for an overnight permit – another sure loser.

And so Option 3 (as described above) gets the brass ring, with the proviso that it be a 2-year pilot program to see what happens. As noted, staff is proposing a streamlined process, online portal, etc., etc., with one goal being to help disadvantaged neighborhoods (of course “disadvantaged,” like “underserved” is code in City Hall for Latino, so that’s an interesting use of the word). This option begs the question: if the permit process could be streamlined why wasn’t it – a long time ago? There is no mention of the new permit fee amount.

The staff report contains a long list of possible additions that could be made, presumably to help a City Council that can’t be trusted to come up with its own.

What I think is really interesting is that there is no option for doing nothing. Not every snake or green-glowing rock needs to picked up and examined, and I get the impression that there is a political undercurrent here. Commonsense suggests that adopting a revision for the purpose of allowing more cars to park overnight will still annoy some residents who may not like others parking in front of their house all night – especially in the vicinity of under-parked, older apartments.

Cops Croak Combative Chemise-less Chap

The following is a Fullerton Police Department issuance:

Fullerton Police Officers responded to a restaurant located in the 1300 block of S. Brookhurst Rd on March 6 at 3:01 am regarding two males that were standing at the front of the doors, possibly under the influence of drugs. The reporting party, who was the manager of the business, was concerned for the employees’ safety as they began to arrive for work. 

Officers arrived on the scene and contacted one shirtless male adult, who was uncooperative with Officers’ commands. The male began swinging a belt at officers as they attempted to contact him. Additional officers were requested, and once they arrived, they utilized a taser to attempt to subdue the suspect, which was ineffective.

The suspect continued to act erratically and was uncooperative as he refused to comply with officers’ commands. Officers then utilized a less lethal kinetic energy projectile and struck the suspect, allowing officers to take him into custody. At this time in the investigation, it is believed the suspect sustained a significant injury to the chest area as a result of the use of the less lethal kinetic energy projectile. 

Officers began life-saving measures while paramedics responded. The suspect was transported to a local trauma center, where he was later pronounced deceased. 

As is standard practice in Orange County, the Orange County District Attorney’s Office will conduct an independent in-custody death investigation. 

The Orange County Coroner will release the deceased suspect’s identity. 

It would be nice to take FPDs statement at face value, but given both the history of the department, it’s unreformed record, and the nature of police reports in general, it would be unwise to do so. I won’t comment on the propriety of this episode other than to point a out a few of the typical bias issues with the report that are clearly intended to sway public opinion in the police direction, regardless of the central facts of the actual encounter. We’ve seen it lots of times before in Fullerton.

It’s 3 o’clock in the morning at a restaurant, most likely the McDonald’s store, which is in the 1300 block of South Brookhurst. Two dudes are hanging out in front of the doors, as reported by the store manager, who is apparently concerned for the safety of his incoming employees, and who has called for the police. So far so good.

Except that the two are reported as being possibly under the influence of drugs. It’s also possible that they are not under the influence of drugs. And here’s where the narrative gets loosey goosey because we don’t know, and won’t know until the Coroner is done with the corpus delecti, oops, the body.

We learn from the report that the cops on the scene encounter “one male,” shirtless; male #2 presumably has decamped. The fact that the man is inexplicably not wearing a shirt at 3am is further non-evidence in the effort to direct us to the inevitable exculpation of the police.

We are informed that the man was uncooperative with commands. Not knowing what the commands were, we are left to assume they were legal commands. Mr. Shirtless, removes his belt and swings it at the cops as they try to “contact” him. Contact? Verbally? Physically? What for? Has he even broken any laws at this point? Your guess is as good as mine. Fearing for their safety (no doubt) the cops on the scene request back-up, which arrives. Is Shirtless still swinging the belt? Don’t know. But rather than physically restrain Shirtless, somebody decides he needs a Tasing as a form of attitude adjustment. Which, of course fails.

Now there are multiple officers on hand and Shirtless still remains uncooperative to commands and erratic, another subjective and loaded term. Is he still swinging the belt after the failed Tasing? Don’t know. Still no mention of an attempt at physical restraint by any of the multiple, presumably fit officers. At this juncture somebody decides to hit the man with a “less lethal kinetic energy projectile” which hits him in the chest. I don’t know what a less lethal kinetic energy projectile is, but I guess if you hit somebody in the wrong place (and I don’t mean the 1300 Block of South Brookhurst), you can kill him. In this case, the technique wasn’t less lethal.

The police offer “life-saving measures” that don’t work, either, and the man is hauled of to a trauma center where he is “later” pronounced deceased, although the wording implies that the death, not the announcement came later. We don’t actually know when the man died.

There are lots of specific questions about this encounter, such as several failed tactics and the possibility of escalation, none of which is offered in the press release. Will we find out? The DA won’t help with transparency and neither will the FPD. But, surely Mr. Shirtless has relatives, and the relatives will have lawyers.

The Compartmentalization Effect. Or Worse.

It’s a total waste of money, but it sure is short…

Now that the Council majority of Dunlap, Whitaker and Jung have done a 180 flip-flop and accepted the so-called Trail to Nowhere grant, it seems like a good idea to remind Fullerton about some things that the City still doesn’t want us to know.

Well, well, well…

About eight weeks ago – several weeks before the Council flip-flop – I wrote a post about the presence of test wells on the Trail to Nowhere. These wells were installed to test the levels of trichlorethylene (TCE). Not only were the wells situated on the trail but also farther south, in the middle of the street in the 300 block of West Truslow Avenue.

I offered the fact that no one can do this sort of thing on public property without permits from the City of Fullerton and that surely the Engineering Department or Development Services Departments has records of those encroachments. The scope of the actual TCE contamination has been known for 20 years or more, and the State of California and the Environmental Protection Agency have known all about it. So has City Hall, since groundwater contamination in north Orange County was the subject of a massive lawsuit involving the Orange County Water District. Plus, someone was installing test wells on City property.

I asked how was this contamination could be omitted from the City’s grant application to the State Natural Resources Agency.

The grant has finally been accepted by the City, but the problem remains. Two problems, in fact. The contamination is still there, of course, and so are the test wells – an issue not addressed in the project budget. But an even bigger question remains. Was the omission due to a management problem – complete compartmentalization of City departments? Or, worse was the problem deliberately ignored?

In either case Fullerton has a fundamental problem the cause of which is clear: complete lack of accountability that appears cultural. City Manager Eric Levitt was preceded by a long leadership vacuum in which City Managers like Joe Felz and Ken Domer were simply along for the ride – chosen, apparently for their elastic sense of responsibility. Yet, Levitt has been around for two years and seems to show the same flexible attitude.

If departments are sequestered behind opaque compartment walls, there is a failure of corporate leadership, and an inevitable decentralization that was, and is, a recipe for costly failure. That’s on Mr. Levitt. If City employees knew about the contamination issue and either said nothing or deliberately lied to the State, that’s a problem of employees who feel utterly secure in their behavior, knowing that consequences for bad actions is not a problem; this is on Levitt, too.

In the specific case of the Trail to Nowhere, the three councilmembers who flipped their votes have some explaining to do, and not just about a matter of opinion, good idea/bad idea. They need to explain how and why the City application for the grant omitted mention of a real and present issue, and also what their City Manager (who just got an 8% raise) is going to do about it. If they don’t they’re part of the accountability problem.

A Couple of Old Friends

I noticed two items that popped up on the Fullerton City Council’s December 19th, 2023 Closed Session Agenda, two things that remind us that in our town bad news never seems to go away, if it ever needed to happen in the first place.

One item had to do with Jacob Poozhikala, the slimy SOB who owned JP23 on the southwest corner of Harbor and Commonwealth.

Poozhikala is a poster child for the miscreant club owners in DTF who slithered in as our city government kept bending over backward to accommodate them. Pooz’s place of hospitality was probably the worst offender of them all – quite a feat. A shooting, alleged drug rape, overcrowding, operating without permits, etc.

Oh, I’ma hit that!

There wasn’t a legal barrier Pooz chose not to ignore. In the end he tried to shift the stalled permit process to a new owner – his nephew. That didn’t work. There’s a new establishment there now, but evidently Pooz isn’t through with us. I Can’t believe It’s a Law Firm to the rescue!

The other item involves our old friends from Air Combat.

In case you forgot, Air Combat, a lessee out at the airport, sued the City for violating its lease agreement, an incompetent ploy by our wonderful Airport Director, Brendan O’Riley to push out Air Combat and install a new tenant whose use was illegal.

Gravity asserts itself…

Ultimately a jury found the City at fault and awarded the aggrieved party $1.2 million. Of course nobody suffered any consequences, although the man in charge, City Manager Ken Domer eventually was fired and is now plying his dubious abilities in Laguna Beach.

Domer-Decorations
Hitching to Willow Springs…

I don’t know what is still being litigated here, but it’s nice to see familiar faces, isn’t it? Jones and Mayer presided over this fiasco, too, but unfortunately for us taxpayers, Dick Jones ran up against Sheppard, Mullin, Richter, a real law firm.

The Sound of Music

Business is booming…

Over the past two decades FFFF has documented the mess our City government has made of the financial sinkhole know as Downtown Fullerton; how laws and rules have been ignored to help the myriad bar owners, and how what is undoubtedly a fiscal municipal liability continues to be characterized as some sort of wonderful accomplishment.

Matt Foulkes. The spin out left casualties…

Planning Directors and Redevelopment Drones came and went: Dudley, Zur Schmied, Zelenka, Haluza, White, Foulkes, each one as useless as the one that came before, and each willing to put the scofflaws’ interest ahead of the citizens.’ To be fair, the political interference was there, too, nowhere better exemplified than in the case of our now-departed Mayor-for-Hire, Jennifer Fitzgerald, who had a for sale sign on her back. And of course City Attorney Dick Jones was there every step of the way to add obfuscating smoke into the downtown atmosphere.

dick-jones
Staying awake long enough to break the law…

Nowhere is the Fullerton downtown dysfunction better seen than in the complete hash the bureaucrats in City Hall have made of the noise situation. At first, the noise ordinance was simply ignored by the cops and by code enforcement. And for the past 15 years the City has made a concerted effort to allow amplified outdoor music downtown, to delay action (we’re still studying it), and to water down whatever official rules were on the books.

For the past four years nothing has happened and of course the nightclub operators have continued to take advantage of Fullerton’s de facto unwillingness to enforce anything.

And now the issue has finally resurfaced yet again, and once again the effort is likely not to work for us, but essentially, to admit defeat and allow the raucous free-for all to become official.

In December a new stab at a noise ordinance addressing outdoor music was placed on the table in front of the City Council.

Evidently the proposed ordinance was so bad that the our otherwise malleable City Council turned it back for rework. I don’t know what was in it because the City Clerk’s webpage doesn’t work. But supposedly the thing will be coming back on Tuesday the 29th and hopefully we will be able to see what sort of surrender our staff is coming up with.