The California Auditor has released a scathing report slamming Central Basin Municipal Water District’s Board, led by President Bob Apodaca, Vice President James Roybal and Director Leticia Vasquez for the past three years.
The report cited factors related to the poor leadership, including the handling of the infamous slush fund, handing out no-bid contracts, Central Basin’s hiring policy, turnover at the general manager position, loss of insurance coverage, and its debt coverage ratio.
The report concluded by setting out guidelines to correct the inefficiencies and proposed the governance structure of CB be changed from at-large voting to Directors appointed by “Central Basin’s customers.”
The auditor stated that Central Basin “generally agreed with our recommendations and indicated that it plans to take various actions to implement them. However, the district disagreed with our recommendation to the Legislature that it should modify the district’s governance structure.”
The first paragraph set the tone of the report: “The district’s board of directors’ poor leadership has impeded the district’s ability to effectively meet its responsibilities.”
Citing the firing of general manager Tony Perez and the cascade of events that occurred after that, the report stated, “The board has not maintained stability in the district’s key executive management position. It has not established essential policies to safeguard the district’s long-term financial viability. The board’s actions caused the district to lose its liability insurance coverage, resulting in higher costs for less coverage.”
After a number of unsuccessful attempts which caused irreparable turmoil within the water district, Messrs. Apodaca, Roybal, and Ms. Vasquez inexplicably fired Mr. Perez in September 2014.
Sources told us that Pacifica Services CEO Ernie Camacho “ordered” the firing because Mr. Perez was investigating the billing practices of Pacifica.
“The district consistently engaged in questionable contracting practices by avoiding competitive bidding and inappropriately using amendments to extend and expand contracts.”
The report went on, “In recent years, the district’s actions have called into question the efficiency and effectiveness of its operations. News reports have focused public attention on a number of issues at the district, some of which we explore in detail in this report. Our audit found that the board’s poor leadership has impeded the district’s ability to effectively meet its responsibilities.”
Again the report cited the insurance fiasco of 2014 that then-G.M. Mr.Perez warned the Board about: “The board’s actions caused the district to lose its insurance coverage. Specifically, in 2014 the board did not respond to the conditions required by its then-insurer in a timely manner, and consequently the insurer canceled the district’s insurance coverage, including its general liability and employment practices liability coverage.”
Later, on a 3-2 vote, Ms. Vasquez, Mr. Roybal and Mr. Apodaca fired Mr. Perez. The report slammed the three stating that “subsequently, in September 2014, after the district had obtained new insurance coverage from private insurance companies, the district’s insurance broker warned the district that any changes to senior staff could adversely impact the district’s employment practices liability insurance coverage. Despite this warning, the board subsequently fired the district’s then-general manager (Perez), and the insurance company did not renew the district’s insurance coverage in 2015.”
In reference to the Apodaca-Roybal- Vasquez vote, the Auditor said, “As a result, the district had to obtain new coverage yet again and currently pays thousands more for $1 million less general liability and employment practices liability insurance coverage than previously.”
The report once again referred to many of the no-bid contracts first handed out by Central Basin, as we first revealed.
They presumably included Pacifica Services, a contract give to Jasmyn Cannick, a friend of Ms. Vasquez, a contract awarded to Tafoya and Garcia to investigate the firing of Mr. Perez, and many others.
All contracts were voted on a 3-2 line with Mr. Apodaca, Mr. Roybal and Ms. Vasquez voting yes, while directors Chacon and Hawkins voted no.
The report stated, “Additionally, the district often inappropriately avoided its competitive bidding processes when it awarded contracts to vendors during the period we audited. Thirteen of the 20 contracts we reviewed, the district did not use its competitive bidding process and did not adequately justify why it failed to competitively bid for 11 of these contracts.”
Citing former general manager Art Aguilar’s lavish golf outings, mostly with Pacifica’s Camacho, as first reported by us, the lack of a competitive bidding process opened the district up to favoritism in awarding contracts.
“In early 2015 the Fair Political Practices Commission fined a former general manager and a former board member for accepting gifts in excess of applicable limits from a contractor doing business with the district.”
Mr. Hews may be contacted at loscerritosnews.net
