The CotoBuzz Journal, Community Journalism

The CotoBuzz Journal

Community Journalism, Newsletters and Blogs Covering South Orange County, CA

The CotoBuzz Journal is a member of Investigative Reporters and Editors (IRE) and NAHJ

August 2007 Issue

We do not make jokes, we simply watch the LA Times, the Orange County Register and the Coto de Caza Board of directors and report the facts!

LA Officials No Conflict of Interest

Private security bids? Property Management company bids? What bids?

July 29, 2007

A July 28, 2007 LA Times article by Ted Rohrlich reports that Victor Taracena, “a high-level manager for the Housing Authority of the City of Los Angeles directed nearly $800,000 in contracts to his brothers and three politically connected firms without competitive bidding or after rigged contests”. According to the article, “Taracena, oversaw more than 150 contracts worth about half a million dollars that went directly to companies his brothers created”, and it adds, “ Seven other contracts worth $289,000 were awarded to non-family firms, two of which had little or no expertise in the work they were hired to do”.

For context, the CZ Master Association’s yearly budget is close to $9 million per year. When Securitas, a private security company listed as one of the largest in the world, was fired by the CZ board, there was no evidence of competitive bidding.

'No, no, no, no. I haven't submitted any bids. . . . Those are not my doing at all. Somebody else has used my name."

— --George Sihvonen, listed as unsuccessful bidder, as reported by the A Times.

I keep saying CZ needs to go out to bid for Property Management Services. It has been more than six years since I managed that supplier selection process. The Securitas bid was a joke. I saw the materials with my own eyes. The very thought that a $1.5 million dollar contract would be awarded without implementation of a comprehensive supplier selection process was a violation of CZ Board Member fiduciary responsibility. It is what it is. Varo/Mezger trusted CJ Klug to do the job and he just accepted marketing proposals with pricing. There was no serious review of the security suppliers. Varo just accepted Universal’s “compelling offer”. JM

P.S. I have offered to help on many occasions; but no takers on the CZ Board

NOTE: Mr. Joseph Morabito is a former member of the CZ Master Association board of directors.

There is absolutely no question you are right on this. When is the contract up? I thought CZ Master could not contract for more than a year - Ken

Ken: CZ Master cannot contract for more than a year; however, the contracts are routinely renewed. I have said for years that major contracts should be bid on a three or four year cycle. To go out longer than five years, is a real disservice to our Members. It does not necessarily mean that the supplier is doing a bad job or even that the supplier will be replaced; however, the market should be tested on a regular basis to keep everybody honest and to see if there are better services and technology available. It is a lot of hard work which is also the reason I keep pushing the CZ Board to appoint a Supplier Selection and Contract Management standing committee. Of course, who am I but a former CZ Board Member who once headed that Committee and someone who manages hundreds of suppliers for a living? Go figure. JM

Hi Joe:

On the other hand, you can be proud that the association is holding the CHP at bay by reviewing their contract every three months, or can you?

Is this an indication of where the association’s priorities are? - Buzz