The Capistrano Insider

Capistrano Councilman Reeve at it Again: Questions Integrity of 'Middle Eastern' Students

San Juan Capistrano City Councilman Derek Reeve, who just weeks ago ignited a firestorm of controversy by announcing from the dais that he'd named his dog "Muhammad," has now questioned the integrity of 'Middle Eastern' students on his Facebook page.

Reeve was also in the news when it was discovered he'd plagarized dozens of passages for a political column he wrote for the Patch news site. He dismissed those allegations, contending while he'd used other's work without attribution, the same standards didn't apply to blogs as other forms of writing.

An attorney and college teacher, Reeve, who portrays himself as an arch-conservative, lost his job teaching political science at Concordia University after those revelations. Saddleback College kept him on board, however.

It's apparently students there that spurred his latest Facebook post. The page is open to friends only, but the post was sent to several media outlets.

On his Facebook page, Reeve questioned "Are my international Middle Eastern students less honest or just really bad at cheating?"

We'll contact Reeve, Saddleback and others tomorrow for comment. See earlier reports of the other episodes at www.thecapistranodispatch.com ... Also, a college watchdog has a post at http://dissenttheblog.blogspot.com/

Supervisor Bates on Bringing Public Salaries in Line

This from Orange County Supervisor Patricia Bates, whose district includes San Juan Capistrano:

2012 Labor Negotiations

A major focus of your Board of Supervisors in 2012 will be labor negotiations. Several employee contracts are up for renegotiation, and it will be the responsibility of this Board to ensure taxpayers’ interests are successfully represented at the bargaining table.

We need to take the opportunity of the 2012 negotiations to explore options for slowing the rapidly rising cost of government. Employees must be compensated fairly; however, the compensation offered to employees must live within means of what the County treasury can afford both in the short-term and long-term.

In the closing months of 2011, the Board has taken actions that signal our intentions for 2012 labor relations and have initiated reforms that will prevent mistakes made in past negotiations.

In my view, a positive step forward for taxpayers was the Board’s recent action to reject proposed changes in the Orange County Managers Association (OCMA) contract. If approved as presented to the Board, the OCMA contract, which contained a “Pay for Performance” award program, would have significantly raised the salary range for managers and long-term pension costs.

The accelerated increase in base salaries, which is a byproduct of the Pay for Performance program, is what is threatening the fiscal solvency of our pension plans and the overall cost of government. That is why my colleagues and I rejected the OCMA contract proposal.

Similarly, this week we rejected a proposal that would have increased salary ranges for Law Enforcement Managers. I believe our employees deserve to be paid appropriately; however, we must correct the past that set salary and pension benefits at rates we cannot afford in the long-term.

To correct the record and avoid confusion, I should point out that media reports asserted the Board privately approved retroactive raises for members of OCMA prior to publicly voting down the contract I mentioned above. Such an assertion is inaccurate. The fact is these “raises,” or more accurately performance awards, were made in compliance with a previously negotiated contract.

The County began negotiations with OCMA in November 2010, as their employment contract was due to expire January 14, 2011; and as part of the negotiations, the County included in the discussions significant changes to the Pay for Performance award program contained in this existing contract. OCMA agreed to defer the 2010 performance awards that were due to be paid to eligible managers on or around January 5, 2011 until a new contract was hammered-out.

As a result of not reaching agreement on the new contract, it was determined the County was legally bound to fund and award performance increases, as outlined in the previous existing contract. Paying the previously agreed to awards saves the County the costs associated with litigation and avoids the large salary range increases included in the new proposed contract.

The Board has directed staff to continue to work with OCMA to reach an agreement that is fair to the County’s managers and awards exceptional performance yet does not significantly increase pay ranges and associated pension benefits.

Going forward, the prospects for taxpayers in the 2012 negotiations are strong. The Board continues to move toward implementing a significant reform: hiring a third party private firm to negotiate our labor contracts.

The negotiators supplied by a private firm will provide the County with the needed skill and expertise. A private, independent firm will also determine short-term and long-term impacts of every major contract component discussed at the bargaining table.

In the past, the County relied on in-house staff to conduct our negotiations. However, we believe a third party will provide for a stronger advocate at the bargaining table.

An additional positive for taxpayers is our recent Performance Audit, which identified over $150 million in savings can be achieved in contract negotiations. As such, the Board has agreed to meet and discuss this list of savings and develop a strategy for making them a reality.

Balancing savings for the taxpayer with salaries that award performance and also retains a superior workforce will continue to be a priority for me throughout my term. Nowhere is the opportunity for savings greater than in our labor contracts.

I value the work our public employees do and the services they provide; and I know Orange County is fortunate to have very competent and diligent public servants. However, the current path is unsustainable. Reversing the trend is the challenge all local officials must take on and one this Orange County Board of Supervisors is ready to meet.

About that Capistrano Mayor Vote...

While moving from Mayor Pro Tem to Mayor in San Juan Capistrano is certainly no guaranteed step, it happens pretty regularly.

So it wasn't unusual that Mayor Pro Tem Larry Kramer became Mayor earlier this month ... except for what happened a year earlier.

As we've reported, when Kramer and John Taylor were elected a year ago, it created a new council majority with Sam Allevato. Those three voted against then Mayor Pro Tem Laura Freese becoming Mayor because she'd supported a one-time political ally, Lon Uso.

Uso didn't get along with Allevato.

But when the three-man majority supported Allevato for Mayor over Freese, the two new councilmen, alluded that Freese would have her day in the Mayor's chair. Serving as Mayor in Capistrano is largely ceremonial and rotates among elected council members.

Here's what was said a year ago, according to Track 1019 in SJC archives:

At 1:55 (Kramer) "I expect that in some near future you [Freese] are going to be Mayor."

At 3:14 (Taylor) "I want to echo my colleagues in that Council Member Freese would have made a fine Mayor too and I also see that in her future if I can have anything to do with it."

Kramer and Taylor both voted against Freese as Mayor this year, in what's her last year in this term on council.

See the full story at The Capistrano Dispatch

Capistrano Makes the Wall Street Journal ... but it's not Good

The case of San Juan Capistrano verses Chuck and Stephanie Fromm -- the couple cited for hosting Bible studies in their home -- made the Wall Street Journal's online edition.

The article is pretty straightforward and notes the case has been settled, with fines dropped and the city re-examining their zoning codes.

But the interesting part? The comments -- especially those in which people say "there must be something missing, this can't be true..."

Here's the link: WSJ Fromm Story

Attorney Generals Going After Mortgage Fraud

this just in:

Attorneys General of California and Nevada Announce Mortgage Investigation Alliance

LOS ANGELES -- Attorneys General Kamala D. Harris of California and Catherine Cortez Masto of Nevada today announced that their states have entered into a joint investigation alliance designed to assist homeowners who have been harmed by misconduct and fraud in the mortgage industry.

By forging this alliance, California and Nevada will combine investigative resources, including litigation strategies, information, and evidence gathered through their respective ongoing investigations, assisting each state as it pursues independent prosecutions.

This alliance will link the offices' civil and criminal enforcement teams, speeding along the full, fair and adequate investigation of wrongdoing in the two states, which have experienced similar foreclosure and mortgage fraud crises.

"The mortgage crisis is a man-made disaster that has taken a heavy toll on the country, but it saved its worst for California and Nevada," said California Attorney General Kamala D. Harris. "The mortgage crisis is a law enforcement matter, and we will prosecute to hold accountable those who are responsible and also protect the homeowners who are targeted for fraud. I am delighted that California and Nevada are entering into this alliance to leverage the best results for our investigations and look forward to forging similar collaboration with other states."

"I am pleased to join forces with General Harris to fight against fraudulent mortgage and foreclosure practices that continue to devastate lives, homes, and the economy in Nevada and California," said Nevada Attorney General Catherine Cortez Masto. "This strong partnership will allow our states to make an even more concerted effort to hold fraud perpetrators accountable and ensure law-abiding homeowners receive justice."

By most objective measures, California and Nevada have been the states hardest hit by the nation's foreclosure crisis. In October 2011, Nevada and California ranked first and second, respectively, for the percentage of their housing units that entered the foreclosure process, reflecting a parallel surge in foreclosures in the two states. One in every 180 Nevada properties entered the foreclosure process in October, and one in every 243 California homes received a filing that month. In 2010, California led the nation with a total of 546,669 foreclosure filings (4 percent of the state's housing units), while Nevada led the nation with 9.4 percent of its homes receiving a foreclosure filing (totaling 106,160 units).

The crisis in these Western states is similar because both states share a foreclosure system in which a bank can foreclose on a borrower's home without court oversight, also called "non-judicial foreclosure." The collective result has created a rich opportunity for predators, leading both states to make mortgage-related law enforcement action a top priority.

In May 2011, Attorney General Harris formed a Mortgage Fraud Strike Force, now composed of nearly 40 attorneys and investigators, that has launched a wide series of investigations and litigation. The Mortgage Fraud Strike Force has instigated legal actions in cases including a fraudulent multi-million dollar "mass joinder" lawsuit operated by the law firm Kramer and Kaslow, and the arrests earlier this month of three top officers of a Stockton real estate company who took thousands of dollars in up-front loan modification fees and made false promises to assist struggling Central Valley homeowners with lowering their mortgage payments.

In 2007, Attorney General Masto formed the Nevada Mortgage Fraud Strike Force that launched a wide series of investigations and litigation into areas including violations of the law related to mortgage lending, servicing, and foreclosure practices and the creation, rating, marketing, sale, and management of mortgage backed securities. The Nevada Mortgage Fraud Strike Force has taken action against predatory "mortgage rescue" companies and individuals claiming to offer services to stop foreclosures. Last month, the Strike Force announced the indictments of Gerri Sheppard and Gary Trafford, who led a massive robo-signing scheme which resulted in the filing of tens of thousands of fraudulent documents. Nevada is also suing Bank of America and its subsidiaries, including Countrywide, for violations of a Consent Judgment for mortgage servicing and mortgage origination irregularities.

The Mortgage Investigation Alliance is the product of weeks of discussion between Attorneys General Harris and Masto regarding the most effective and efficient means of achieving justice for their respective states. Today's announcement formalizes an agreement reached between the two officials last week.