Santa Margarita Water Update

The awareness of corruption that was raised from the Cadiz proposal of last summer ( http://www.missionviejoca.org/html/article225.html ) was evidently not enough for voters to throw out the incumbents from the Santa Margarita Water District Board of Directors. Two incumbents were reelected on Nov. 6, and a third candidate, Charles Gibson, was elected to the board. Gibson says he is a “close friend” of board member Roger Faubel.

Following are examples from SMWD’s board meeting last week of how the board operates:

• The 50-page FY 2012 year-end June 30 audit did not agree with the page 6 handout to ratepayers. No mention was given in the audit of the legal contingent liability exposure relative to the seven active state lawsuits, and one pending federal lawsuit filed, all concerning Cadiz.
• The SMWD is losing money from operations and taking money out of their Rate Stabilization Fund, $2.2 million in the prior year and forecasting $1.5 million in FY 2013. False reports have been issued by Cadiz Inc. and SMWD regarding lawsuits.
• Despite the SMWD operating at a loss, they've hired Jim Leach, SMWD Director External Affairs. Leach is CEO of the South Orange County Regional Economic Coalition, a direct arm of the South Orange County Regional Chamber of Commerce. Another new hire is Joyce Crosthwaite, active Executive Officer LAFCO. (Note: Charley Wilson, SMWD Director is Chairman of LAFCO). Ms. Crosthwaite is a Harvard graduate and will become Dan Ferons direct assistant. Ms. Crosthwaite specializes in land development and CEQA law.
• Kristin Griffith, Director of Finance, presented a power point presentation justifying the reasoning for rate increase that totally perplexed the Board. They had no idea how or what the tables/graphs represented. Regardless, they voted unanimously to okay the resolution for a rate increase. Public Hearing(s) are to commence late summer 2013.