It is no surprise to find out that JCW is firmly against public private partnerships for building public infrastructure because historically it has always been the people that lose when these projects shoot over budget. In California, examples abound of these failed initiatives that make private investors rich and fail to deliver on the public good or any of the purported the savings that will materialize as a result.
Consider these recent California PPP failures:
The Hwy 91 express lanes in Orange County ended up costing Caltrans 166% of what it would have cost them to go at it alone. It was supposed to be a company would build and maintain hwy 91 express lanes for 35 years, much like the project of this post. However, the private entity neglected to maintain non-toll portions of the hwy91 express lanes causing Caltrans to buy them out of the 35 year lease.
cha-cha-cha ching! Much like the AOC will be renting the old, empty and vacated mammoth lakes courthouse, the private developers made money hand over fist, both coming and going in this deal and the people lose.
Belmont High School AKA Roybal Learning Center (LAUSD) – Initially slated to cost 110 mil, they built upon an abandoned oil and gas field that was bubbling up methane and hydrogen sulfide gas and was straddling a fault line. The private developer failed to mediate these hazards and more than half of the new, unoccupied learning center was torn down. $377 million dollars later the people of Los Angeles have about 40% of the school they initially set out to build.
On Friday, Cheryl Miller of The Recorder published an article about the new Long Beach Courthouse:
Capital Accounts: Bill Comes Due for Much-Hyped ‘Public-Private’ Courthouse
Cheryl Miller
SACRAMENTO — It’s still more than a year away from completion, but the new Long Beach courthouse is already a showpiece.
The 531,000-square-foot building-to-be doesn’t even have a complete exterior yet but it already has its ownwebsite, telephone hot line and webcam featuring the local temperature and heat index readings.
The bells and whistles reflect the hype over the judiciary’s first attempt at a public-private financed courthouse project on the site. Private investors provided the capital to build the 31-courtroom downtown facility in a scheme that promised a cheaper building delivered faster. The public will cover the costs over a 35-year lease-to-own plan.
Problem is, that first bill is coming due soon and nobody seems sure who is going to pay it. That could spell trouble for other courthouse projects planned around the state.
In an Aug. 20 letter to Interim Administrative Director of the Courts Jody Patel, state Senate Budget Chairman Mark Leno warned judiciary leaders not to look to the state for help when the first service fee for the Long Beach courthouse must be paid in the next fiscal year.
“Given the enormity of California’s budget crisis, it seems highly unrealistic for the AOC to expect the state general fund to support the Long Beach courthouse project,” Leno wrote.
The San Francisco Democrat said judiciary leaders should consider tapping internal construction funds to pay for the first round of Long Beach bills — projected to total $44 million in 2013-14
More wonderful planning by the central directorate in San Francisco under the esteemed leadership of Cantil-Sakauye and George: Spend money that you don’t have and you haven’t budgeted for (about 22 million a year or $709,000 per year per courtroom for 35 years) and make those payments with other funds meant to finance bonds for other courthouse projects because you should have known from the onset that the state general fund wasn’t going to willy-nilly pick up the tab on this. The legislature always expected the payments to come out of judicial branch proceeds to pay the rent, so to speak while our esteemed leaders always believed a twisted version of the field of dreams.
If we build it, they will pay.
A front-loaded 22 million a year in payments would surely impact the SB1407 program which would rely on a similar amount to finance other projects with bond money. That would be tantamount to eliminating another large scale construction project similar in costs, size and scope to Long Beach or the nixing of more than 1/2 dozen (or more) other smaller courthouse projects around the state. The only advantage is for $709,000 per courtroom per year in rent money, the courts should experience a reliable building that isn’t going to be built and degrade in place due to a lack of effective maintenance much like all other projects are experiencing.
The questions about the project that is slated for completion next year and how it is to be paid for have just begun. While completion is slated for the fall of 2013, there has been little in the way of success of public-private partnerships and mitigating cost overruns. While the project is represented by the AOC as currently under budget, the AOC can say that because their budget for this project amounts to non-existent oversight.
The budget for this project is borne entirely by Meridiam Infrastructure as it is technically their building. However, in PPP’s such as this, any changes to the approved project are typically borne by the customer. On this project in particular, there was no plan checking done by AOC engineering staff so they couldn’t begin to tell you what to expect or what changes will need to be performed to make this building functional on day one. You shall receive what Meridiam gives you with a hope that it suits your purposes.
Let’s hope that the Governor George Deukmejian courthouse doesn’t turn out to be another PPP disaster but it brings into question: In the era of Cantil-Sakauye transparency and accountability, who should pay the price for this failure of leadership to identify funds to maintain the current infrastructure while building more they cannot possibly maintain? Who should pay the price about not identifying where the Long Beach rent was coming from? Accountability vaporized with the last group of Chief Justice appointees and is never going to happen under the current re-arranged deck chairs leading the AOC today.
The writing was on the wall at Long Beach well before the contracts were awarded. No smart assemblyperson that wants to be re-elected is going to turn down a public works project in their district so the only people we can fault are those that predicted “If we build it, they will pay”, much like many of their other “if we build it, they will pay” boondoggles.
What would be an enlightening exercise for the Judicial Council and the AOC is this: Any program or project, both current or future that they already haven’t clearly and publicly identified the source of ongoing funding for, that project and the people associated with it gets nixed. This must include courthouse maintenance and construction.
Related articles
- Council acts to reform bloated bureaucracy (judicialcouncilwatcher.wordpress.com)
- AOC Raises skirted committee review (judicialcouncilwatcher.wordpress.com)
- Transparency? AOC? Think again. – AOC to pay justices to attend Monterey conference? (judicialcouncilwatcher.wordpress.com)
- Dan Walters: Rebels make gains, but California’s judicial war still rages (sacbee.com)
- As they’re bankrupting the courts, they’re handing out raises! (judicialcouncilwatcher.wordpress.com)
- More mega projects turning to private investors (news.yahoo.com)
- Public-Private Partnership: Another Phrase for Fascism (musicians4freedom.com)
- Involve people in public-private-partnership model: Selja (news.in.msn.com)
JusticeCalifornia
September 17, 2012
Just what the branch needs: a bells and whistles showpiece.
Let them eat cake, right Tani?
Let’s all fasten our seatbelts for more branch pain.
Wendy Darling
September 17, 2012
Don’t be surprised when the new Long Beach Courthouse ends up being the CCMS of Judicial Branch court construction projects.
Long live the ACJ.
unionman575
September 17, 2012
It already is and “opening day” isn’t even here yet…
😉
wearyant
September 17, 2012
Very well done, JCW, on your coverage of this disaster. It makes it patently clear why there should be an exhaustive and complete audit of the AOC, i.e., all contracts these dimwits have entered into that involve public funds. Which means ALL of them, all the nitwits and all the contracts going back for years. The public really has a right know.
Hello? Anybody out there?
courtflea
September 17, 2012
I know who will pay for it: the other 57 trial courts!
unionman575
September 17, 2012
We all will…grab your ankles….
Nathaniel Woodhull
September 17, 2012
It’s time to pass the torch. wearyant, courtflea & Wendy Darling can do everything I could have hoped to do. I think it is time that I simply walk out into the forest and die…
Good luck JCW and to all those who have raised the banner against the AOC and Judicial Council. I am finally at that point at which I am not sure I have anything positive left to contribute…
Faithfully yours…
Wendy Darling
September 17, 2012
General Woodhull: The troops still need a leader that they have faith in, that they trust, and whose advice and good counsel they can follow in clear conscience.
Long live the ACJ.
unionman575
September 17, 2012
General please don’t go…
Official
September 17, 2012
Hey there, General! We can’t have talk like that! You scare me! No giving up and no dying!
We need you, and someday we will all make a difference!
wearyant
September 17, 2012
General Woodhull, please take a deep breath and relax a moment. Your contributions here cannot be duplicated by anyone else. We each have different viewpoints from our varying walks of life. I am hoping you will continue on with the fight! 🙂
JAD
September 18, 2012
Nooooo – What everyone else has said! Flash back to the first of the AOC Watcher where we were all just a bunch of manure stirrers, spreading lies. What has occurred since then; while not the final outcome we are working/hoping for, has been huge. All those ‘lies’ were proven to be the truth. The Judicial Council and AOC are actually being looked at by the Governor, Legislature and the public ~ and not in a good way. Additionally, there is the Alliance of California Judges, who saw that happening? CCMS – finally stopped, who really thought that would happen? Please General Woodhull, your input has been valuable, insightful and needed.
unionman575
September 17, 2012
Rubbing my eyes… And scratching my head…
http://www.longbeachcourtbuilding.com/
courtflea
September 17, 2012
Oh N Woodhull don’t go!! We need you! I know we all feel that way at one time or another. We can’t give up yet!! For over 200 years the judicial branch has prevailed. We can’t let usurpers,charlitans, SOBs and carpet baggers take it over! We can’t just hang it up. We have a higher calling here Woodhull. OK SOLDIER! ON YOUR FEET! we can and will exterminate the terminator, Darth Vader and the death star if only you hang in there for the fight. If we all give up we may just as well submit in the worst way possible. The death of our branch, truth and justice. And true soliders can’t allow that. And you are one of the best. Lets ROLL!
Wendy Darling
September 17, 2012
Better to die on your feet, than live on your knees.
wearyant
September 17, 2012
CourtFlea, well said!
courtflea
September 17, 2012
Wearyant, tried to send you a hushmail but my computer won’t do it for some reason. Thanks my friend.
unionman575
September 17, 2012
wearyant@hushmail.com
wearyant
September 17, 2012
Hey, Flea, well, one day perhaps we will meet. Hope all is better today for you and yours! And, thank you, Unionman575!
courtflea
September 17, 2012
I hear ya Unionman, I checked out the live cam and got a shot of the same crappy old urine smelling parking lot I had an occasion to park in many moons ago. Whatsup with that? And no photo updates since April. tsk tsk.
Official
September 17, 2012
And so far, mostly court reporters have been paying for all this. (In no way do I mean to minimize other staffers who have been laid off, but reporters have been specifically “targeted,” I think we all can agree.)
What a dream come true for so many haters of the verbatim record! For years they’ve wanted to replace reporters, and now they’ve created a monetary excuse to do so.
What a disgusting act of selfishness! Furthering your own interests at the expense of the public’s RIGHT to a record of the proceedings is NOT access to justice.
Wendy Darling
September 17, 2012
Serving themselves to the detriment of all Californians, Official. The real motto of the Office of the Chief Justice, the Judicial Council, and the AOC.
Long live the ACJ.
unionman575
September 17, 2012
Yes CSR’s have been HAMMERED.
wearyant
September 17, 2012
Totally agree with you, Official. Court administrators have been for the most part a-holes towards the verbatim record by certified court reporters. The public has been well served by court reporters. Their fees have been controller (and hammered) by the gov’t code. IMHP, court reporters really should be available in every court for the public — and at one time they were. This is not PC, but I will say, all I can do is pray for the right outcome to occur for our courts.
wearyant
September 17, 2012
“controller” should be “controlled.” No raise in the folio rate for 20 years or more! Unheard of in any other industry. Reporters pay for their own supplies to provide the transcripts, i.e., paper, ink, new software, printers, computers — all the prices on those have risen. If court administrators gain control of transcripts, you know the price per folio or page will go through the roof! The public will not benefit from that.
Wendy Darling
September 17, 2012
Without an accurate record, a litigant is toast. And without a good court reporter, there is no accurate record.
And an accurate record is the last thing that 455 Golden Gate Avenue wants.
Long live the ACJ.
unionman575
September 17, 2012
And now a Public Service Announcement from Ms. Kiri Torre, Court Executive Officer….
unionman575
September 17, 2012
http://www.courts.ca.gov/11582.htm
Find out where AOC is seeking property
OCCM’s real estate unit engages local real estate brokers who advertise locally when we undertake a market search for property as part of the site selection and acquisition process for new courthouses. Local advertisements are re-posted on this page when active.
wearyant
September 17, 2012
Unionman575, this is just, plain scary stuff! Who needs to watch horror films when we have the JC/AOC/CJ getting into real estate!!
Wendy Darling
September 17, 2012
Real estate “transactions” =’s a good way to hide money from the State Legislature.
Not that anyone up at the State Legislature is paying any attention to that, or cares to.
courtflea
September 17, 2012
Hey unionman how about the Bel-Arabs? My personal fav!
unionman575
September 17, 2012
In today’s world, I am not going there Flea.
😉
wearyant
September 17, 2012
Flea, are you talking about the pink mansion in Bell Air? HeeHee! And the lovely statues? Whoa, baby!
Lando
September 17, 2012
General Woodhull, your contributions to the cause of justice for California have been outstanding. I have particularly admired the historical perspective you have given the readers of JCW. Your candid and honest assessments as to how our branch got here give all a much better understanding of how our branch came to be dominated by anti democratic insiders looking to promote themselves at the expense of the citizens we serve. Thanks for all your help in this great battle to restore democracy,fiscal responsibility, integrity and common sense to the California judicial branch.
The OBT
September 18, 2012
Thanks Lando. Restoring democracy, fiscal responsibility, integrity and common sense How amazing we even need to talk, plan and work hard to achieve those goals in a judicial branch. The Long Beach courthouse just once again illuminates all that is wrong when you have governance by dictatorship. Woodhull . We need you now more than ever as we are making significant progress. The more progress we make the meaner and meaner they get as evidenced by their introduction and roll out of Justice Hull combined with their false propaganda that they are reforming and changing. The bottom line, nothing at 455 Golden Gate has changed and it is my belief HRH 1 is still calling the shots from behind the curtain.
JusticeCalifornia
September 18, 2012
Open courts, good judges, court clerks and court reporters = court basics.
Under George and Sakauye, the basics have become but a fond memory.
Not to worry though, we’ve got a gambling barmaid firmly in charge, flanked by her amazingly well-paid best Sacramento buddy Jody and Jody’s sidekick Curt, and by two other “top administrators” with no relevant administrative experience. All five of whom helped get the branch into the current mess.
Yippee. Yessireebob, this administrative team will garner loads of respect and credibility. The legislature will surely be lining up to throw money at it.
Meanwhile, out on the streets. . . .a friend reported this morning that yesterday she parked at a one-hour metered spot, and was 2 minutes late. 2 minutes. She got not one, but two $95 tickets. One for letting the meter run out, and one for parking longer than an hour in a one hour spot.
Cool. Rape and pillage the public to pay for the sins of administration. Cha ching, cha ching.
I am just wondering if anyone has ever seen the branch fall so low? It is very, very sad.
There must be a change in leadership. Anything else is re-arrangement of deck chairs while the ship sinks. We all know it. When will the branch demand leadership democratically selected by the branch, not a gambling barmaid? Leadership that will investigate, not obfuscate?
Maybe everyone is waiting for the branch to declare bankruptcy so a receiver can be put into place?
courtflea
September 18, 2012
Yes wearyant, that is the one and the SNL skit too!