San Juan Capistrano water customers to get refunds for tiered rates

San Juan Capistrano, California –

Water customers in San Juan Capistrano who were charged under a pricey tiered system declared illegal can get their money back under a new refund process.

Anyone who paid for water under the top three of four tiers between Aug. 28, 2013, and June 30, 2014, is eligible for a refund or credit on future bills under the system approved Tuesday night by the City Council. The period covers from when an Orange County Superior Court judge ruled the tiers to be illegal to when the city implemented new prices last summer.

The new rate system includes tiers, but they’re not nearly as steep before: top users paid $11.67 per 100 cubic feet of water under the old rates; they pay just $5.15 now.

How much the refunds will cost the already cash-strapped city is unclear. City staff are preparing a report for the June 16 meeting that will include a projection and information on a formal application process.

That prompted Councilman John Perry, one of two residents who sued before he was elected, to vote against the refunds because he wanted to know how exactly they will be calculated.

“By any measure, they deserve every penny extra that they are forced to pay by the city,” Perry said.

The refund process comes as people like Eric Krogius, a Cota de Caza resident who used to live in San Juan Capistrano, have filed small claims to recoup the money they paid for the heavy tiers.

Krogius, who is U.S. Rep. Mimi Walters’ brother, said Wednesday he doesn’t plan to drop the claim he filed last month in Superior Court. And he said he still wants the money back he paid under the tiers prior to Aug. 28, 2013. His court hearing is scheduled July 13.

“I’m going to take it all the way to the end, and we’ll let the judge decide if they can arbitrarily decide that that’s the date,” Krogius said.

The city already is in a tight financial position. Years of unrelated litigation drained funds so much that when an appellate court in 2010 ordered the city to pay $6.35 million to a landowner over a development dispute, the city paid for about half of it by increasing property taxes in 2011 for the next 10 years.

City documents presented to the council Tuesday say the water rate refunds will increase a deficit in the city’s water budget that’s already expected to be at least $1 million by June 30, which is the end of the fiscal year.

It’s not the first time San Juan Capistrano’s water revenue hasn’t kept up with expenses: The city has supplemented that aspect of the budget for years. One of the biggest financial factors is a struggling groundwater recovery plant for which the city owes more than $40 million. Jim Reardon, who also sued the city, and Perry have long said they believe the water rates were artificially inflated to cover the enormous cost of the plant.

But city documents didn’t show how the rates related to the actual cost of water in San Juan Capistrano. That’s where the city ran into trouble: Proposition 218, enacted by voters in 1996, requires all government fees be set in accordance with cost. Reardon and Perry had long told the council the city water rates didn’t do that.

The 4th District Court of Appeal’s April 20 affirmation of the August 2013 Superior Court ruling attracted international attention and was criticized by Gov. Jerry Brown. The court was careful to emphasize that tiers in general aren’t illegal, but arbitrary tiers are.

But so many municipal agencies use tiered systems that the ruling has caused a scramble to ensure compliance and fend off more litigation. Last week, a class-action lawsuit was filed in Marin County over the tiered water rates there.

Contact the writer: 949-492-5122 or [email protected] On Twitter: @meghanncuniff.

https://www.ocregister.com/articles/city-664292-water-court.html

Police Propaganda Website Blurs Line Between Journalism and PR – paid for in part by taxpayers, and writes from a pro-public safety perspective

Website Blurs Line Between Journalism and PR – paid for in part by taxpayers, and writes from a pro-public safety perspective.

It is a gripping image — a fireman shudders with grief as his mother and family sob in his arms, during a memorial service for a fallen police officer, his brother and her son.

The photo, by Steven Georges, has the framing and emotional punch that gets the attention of judges during journalism awards season.

And that’s exactly what it did, winning Best News Photo in this year’s OC Press Club awards.

But the local publication that published the photo and accepted the award wasn’t a news publication like The Orange County Register, OC Weekly or The Daily Pilot.

It was Behind the Badge OC, a website that is staffed by many former news reporters but produced by a public relations firm, paid for in part by taxpayers, and writes from a pro-public safety perspective.

Its content consists primarily of published news releases and sleek feature stories about officers across seven local police agencies.

Since going live nearly ten months ago, Behind the Badge has garnered 19,000 followers on Facebook and now averages 80,000 unique visitors a month, according to Bill Rams, a principal at Irvine-based Cornerstone Communications, who serves at the site’s editor-in-chief.

It takes the concept of promoting the good work done by police officers and firefighters to another level. And in doing so, it has raised a few eyebrows in the world of media and public policy ethics.

The only mention of taxpayer dollars spent on the site is a disclosure statement on the About page, which states: “Some funding for this site is provided by the participating agencies.”

“Some” equates to 60 percent of the site’s total budget, Rams said. Included among the funders are police departments from Anaheim, Fullerton, Garden Grove, Westminster, La Habra, Tustin and Cypress, as well as the Anaheim Fire Department.

David Medzerian, a former Register staffer and Miami Herald reporter himself, penned a column for the Register in March criticizing Behind the Badge OC for not being more up-front with readers about its funding sources.

“The content is funded in part by agencies that the stories are about. And most readers don’t know that,” he wrote. “That critical information isn’t hidden, really, just difficult to find.”

Battling ‘Cops Behaving Badly’ Image

In an interview, Rams, a former public safety reporter for the Register, quickly acknowledged the site’s funding sources and said he and others in the organization make no attempt to present Behind the Badge OC as an objective news source.

Rams said police departments typically come up with the ideas for stories and rely on his writers to produce a professional product. The purpose, he said, is to help police agencies tell their stories in what he described as an increasingly hostile media environment.

“If you look at how law enforcement is being covered today, it’s mostly cops behaving badly, ‘allegations of inappropriate use of force,'” said Rams. “It’s mostly negative — but that’s not all that’s going on out there.”

The way police agencies typically deal with reporters and dispensing public information– assigning the responsibility to a low-level sergeant with no background in writing or news — has been ineffective, Rams said.

“When I was a reporter, the cops were never good at telling their story,” Rams said. “My experience with police officers is most of them [are] decent people — their job, I felt, was misunderstood. And I thought maybe I can be a force for helping them [explain] how complex their job is.”

In what can be best described as a twist of fate, the site’s emergence has coincided with a period of police scrutiny unmatched since Los Angeles police officers were caught on tape beating Rodney King in 1991.

The site launched in July 2014. One month later, Darren Wilson, a police officer in Ferguson MO, shot and killed Michael Brown, an unarmed black man. Brown’s death and a decision by a grand jury not to charge Wilson sparked days of rioting.

After Ferguson, incidents in New York City and Baltimore sparked protests that have seized the media and triggered a national discussion about race, excessive use of force and community policing.

The genesis of Behind the Badge OC can be traced back to police incidents that sparked protests and unrest in Anaheim and Fullerton.

One of the site’s first clients was the Fullerton Police Department, where Chief Dan Hughes was brought in after significant fallout from the fatal beating of a mentally ill homeless man named Kelly Thomas in 2011, an incident which sparked outrage and public scrutiny of law enforcement and the treatment of the homeless countywide.

“If you look at their old website, there were no pictures, there was no way to contact anybody. [Police department] websites look like they were built in the 1990s,” said Rams. “In this day and age, your website [is] how the public gets an idea of what you’re about.”

That poor communication became increasingly clear as the Fullerton department began to field calls from news outlets across the country, and websites, blogs and social media posts about Kelly Thomas proliferated online.

“I don’t know if it was just the Kelly Thomas incident, [but] over a number of months, there was misinformation being presented, not only in the press but out on blogs,” said Hughes. “We were not trained on how to communicate on blogs or social media.”

Hughes describes the website as a strategy for increasing public understanding of law enforcement, something akin to a community policing strategy.

“Who are the people patrolling our neighborhood? What are they like off duty? Do they understand what it privilege it is to serve our community?” Hughes said.

PR Response

Other funders of Behind the Badge OC include both the police and fire departments in Anaheim, where hundreds of demonstrators took to the streets in July 2012 to protest the fatal shootings of two young Latino men on consecutive days.

Jose Moreno, a member of a police community advisory board formed in response to months of public backlash, said he doesn’t have a problem with the department spending money on public relations, but questioned its effectiveness.

“The average Anaheim resident isn’t going to go to that website,” said Moreno, who is also president of Los Amigos of Orange County and ran for the Anaheim City Council in November.

Moreno also disputes the notion that local media haven’t been fair to law enforcement.

“The local media haven’t covered [the police] in a critical way. And the department in Anaheim…attack anybody who isn’t 100 percent in support of the department,” Moreno said.

To really make a difference, the site should “cover stories that lead to broader policy conversations,” he said.

It’s not uncommon for reporters to leave journalism for jobs on the so-called “dark side.” With the decline of traditional newspapers has come a growth in public relations specialists, who now outnumber reporters 5 to 1, according to the Pew Research Center.

Joel Zlotnik and Eric Carpenter, former Register reporters, both work in public relations for the Orange County Transportation Authority. Jennifer Muir, the incoming general manager of the Orange County Employees Association, is a former investigative reporter. County spokeswoman Jean Pasco wrote for the Los Angeles Times.

Several writers for Behind the Badge are career journalists, including former Register reporters Greg Hardesty and Jaimee Lynn Fletcher.

Critics like Medzerian, who now runs the University of Southern California’s Communications website, has no issues with former reporters earning a living in PR, but is concerned when they produce content that blurs the line between journalism and promotion.

In a media environment where many people are getting their news through clicks on Facebook and other social media sites, readers are less likely to visit a website’s homepage and most people won’t go looking for information about how a website is funded, Medzerian argues.

Rams, meanwhile, says that from the name of the website to the disclosure on its “About” page, Behind the Badge isn’t being coy about it’s funding.

“Our readers are smart — they’re going to figure it out. Do we need to call ourselves ‘funded-by-the-cops-dot-com?'” Rams said. “We say it’s produced by Cornerstone, you spend some time with our site, and you get the idea of what we’re about.”

Yet the site won first place awards for “Best News Photo” and “Best Feature Broadcast” from the press club, arguably the county’s most notable journalism organization.

Press club president Denis Foley, a former Register editor who is now an adjunct journalism professor at Chapman University, said the club is trying to be inclusive of all the new types of media. Public relations sites, news media and blogs can compete as long as the publications are transparent and judges are aware, Foley said.

“The way I look at it is, there’s so much stuff online, it’s really about news literacy and how readers can distinguish and evaluate different sites and where [news] is coming from,” Foley said. “I look at the About Us page for Behind the Badge, for [Voice of OC] and OC Weekly, and I think everyone is pretty clear.”

Medzerian believes Behind the Badge should disclose its funding more explicitly because there is a business relationship between writers and the subject of their stories.

“What Behind the Badge does well is give [police departments] another way to get their story out, and I like that,” Medzerian said. “What bothers me, and this is speculative, is that agencies might start to use the site as their way to get their information to readers, rather than traditional media.”

A ‘Complicated’ World

Marc Cooper, a journalism professor and Director of Annenberg Digital News at the University of Southern California, contrasts Behind the Badge with a news site embedded within the website of former Los Angeles County Supervisor Zev Yaraslovksy.

Yaraslovsky hired former reporters to staff the site and write about county news and politics.

“While there was no pretense that this was an independent publication, it did cover real news in a somewhat professional way and with a somewhat unpredictable point of view,” Cooper said. “It did not announce or intend to be a counter to the mainstream or local reporters’ covering the county – it considered itself an additional resource.”

Ultimately, Cooper thinks the disclosure question won’t matter.

While the goal of deepening the relationship between the public and law enforcement is noble, he doubts the site will have any impact at all.

“There’s a difference between public relations and community relations — PR sells a product and community relations builds relationships,” said Cooper. “And what you’ve got here is a cereal commercial, a piece of uncritical advertising that is going to convince absolutely nobody who isn’t already convinced.”

The site is a constant experiment, Rams said, and he defends his site as professional content produced by veteran reporters, worthy of publication in the Register or LA Times.

“Everything is complicated in the world right now. Law enforcement is going through a state of disruption, media is going through it,” Rams said. “Police leaders everywhere are trying to do a better job of engaging their communities.”

Contact Thy Vo at [email protected] or follow her on Twitter @thyanhvo.

https://voiceofoc.org/2015/06/website-blurs-line-between-journalism-and-pr/

Water customer Eric Krogius used to live in San Juan Capistrano – he wants his money back – and So Do We – Let’s Sue City Hall

San Juan Capistrano, California –

Victorious San Juan Capistrano water users want a refund

Water customer Eric Krogius used to live in San Juan Capistrano, and he wants his money back.

The homeowner and securities specialist paid huge water bills under the steep tiers recently declared illegal by the 4th District Court of Appeal, and he recently filed a claim in Orange County Superior Court to try to recoup the thousands he once thought were gone for good.

“I think it’s got the makings of a great class action,” Krogius said.

But San Juan Capistrano city officials aren’t ready to talk refunds. The City Council – now dominated by four people who support the lawsuit, including one of the men who sued – has yet to decide whether to appeal the April 20 ruling to the Supreme Court. It has until June 1 to do so. Mayor Derek Reeve expects a decision “probably this week.” The Council is scheduled to consider the case in a closed session today.

“If the council does not appeal and thus accepts the judgment, I anticipate some form of refund policy will be developed and announced soon thereafter,” Reeve wrote in an email to the Register.

That would open the door for a flood of requests – first in San Juan, and later in other agencies that can’t prove a leak-tight link between what it costs to provide water and what they charge for it.

“Could that create chaos? It certainly could,” said Ryan Cogdill, an attorney for the Howard Jarvis Taxpayers Association, which backed the challenge to San Juan’s rates. “That’s a risk agencies run when they try to impose costs they can’t justify.”

The city of Fullerton knows this story well.

More than 40 years ago, Fullerton tacked a 10 percent “in lieu franchise fee” onto water bills. That raised millions over the decades – more than $27 million since 1997, according to city figures – but the fee wasn’t tied to any specific cost of providing service. That ran afoul of Proposition 218, the Howard Jarvis Taxpayers Association warned, threatening to haul Fullerton into court in 2012.

Fullerton didn’t fight the way San Juan did. Instead, Fullerton essentially acknowledged that the 10 percent figure was pulled from a hat and hired a consultant to do a full analysis of water utility operations. It calculated how much it costs for everything from office space, electricity and personnel to operating stations, pumps and wells.

In the end, Fullerton wound up reducing the fee and refunding $3.3 million to customers. That’s a fraction of the excess it collected over the decades, but the statute of limitations only left Fullerton on the hook for three years’ worth of repayment.

San Juan – and every water agency that can’t clearly demonstrate the link between costs and rates – could find itself backed into a similar corner.

“It does seems to be the case that this ruling would mean refunds,” said Frank Wolak, director of Stanford University’s Program on Energy and Sustainable Development. “It’s unfortunate that so few judges understand basic economics.”

And Reeve’s statement indicates the city is preparing for refunds. While no decision on whether to appeal has been announced, city officials have taken a couple of steps that indicate they’re not interested in pursing the case further.

The council recently ended its contract with Michael Colantuono, the lawyer who’d fought the lawsuit since it was filed in August 2013, and directed the city’s contracted law firm, Best Best & Krieger, to handle the case as part of its standard litigation duties. And city attorneys sent a letter, saying they wanted to negotiate a settlement, to the lawyers who sued.

But who would be eligible and for how big a refund is unclear.

A claim filed last year by Newport Beach lawyer Gerald Klein estimated total refunds of $20 million to $30 million. Klein said at the time that the claim was the first step in a class-action lawsuit, but he hasn’t sued yet and recently declined to speak to a reporter about the case. Councilman John Perry, who sued with fellow Capistrano resident Jim Reardon, said he believes class-action firms don’t want the case because they can’t make enough money from it.

In court documents filed after the 2013 Superior Court ruling, Reardon and Perry’s lawyer, Ben Benumof, noted that the money owed to him – a Superior Court judge calculated it at $237,242 – exceeds the amount of money expected to be refunded to San Juan Capistrano ratepayers: about $150 per household for three years, which he called “a small return easily eclipsed by the attorney’s fees needed to prosecute the case on CTA’s behalf.”

The city has yet to pay Benumof anything. The City Council is to consider today how much to give him, Perry said.

Krogius calculated his request of $7,511.70 by subtracting the difference between the top tiers he paid – $11.67 – and the base rate that was the only non-tiered rate in place – $3.18.

But the court emphasized that tiers are still legal; it’s arbitrary tiers that are problematic.

San Juan Capistrano readjusted its rates in 2014 to greatly reduce the tiers, but they’re still in place – the top tier charge was slashed from $11.67 to $5.15; the bottom tier rose from $3.18 to $3.41. So theoretically, heavy water consumers like Krogius could still be charged more than the base rate. Just not as much as San Juan Capistrano originally charged.

And the court hasn’t said anything about refunds.

“It’s too amorphous,” said Larry Kramer, who served on the San Juan Capistrano City Council for four years before losing in the November election. “I couldn’t get an answer out of the city as to how it might work.”

There is, however, a checkmate possible in this game.

“Prop. 218 limits local government, not the state,” said Thomas J. Campbell, dean of Chapman University’s Fowler School of Law. “The Legislature could simply pass its own tiered-pricing law, trumping local units. The result would be a short-lived rebate to the plaintiffs, but a restoration of tiered pricing. It would not surprise me if Gov. Brown attempted such a step as part of his drought-relief package.”

Such a move would have to be uniform for all water agencies, he said – something like a surcharge on usage exceeding a predetermined level, with proceeds dedicated to a rebate for low- water users. That would avoid construing the state action as a tax increase, Campbell said.

Meanwhile, Krogius is scheduled to appear in court July 13 for his claim against San Juan Capistrano.

He decided to demand a refund after he and his wife, Kathleen, were turned down by City Hall staff. They’d paid huge water bills – sometimes upward of $800 a month – for their big home and lawn in San Juan Capistrano.

“We just thought it was the status quo and we had to live with it. And we did live with it,” Kathleen said.

They lived there for 16 years before moving to Cota de Caza earlier this year. They still recall receiving the first bill under the now illegal tiers, which were approved in February 2010.

“We couldn’t believe it when I got the first bill,” Kathleen said. “I thought it was a typo.”

https://www.ocregister.com/articles/city-662302-juan-san.html

Contact the writer: 949-492-5122, [email protected] or on Twitter: @meghanncuniff

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