Wasn’t it the Ferenghi that said there is profit in chaos?
August 22, 2012
Dear Members and Others,
On August 16th, Alliance director Judge David Lampe requested Executive and Planning Committee chairman Justice Douglas Miller to make public the audit report of the AOC Office of Court Construction and Management prepared by Pegasus Global Holdings. A copy of that letter appears below.
Justice Miller declined to make that report public, indicating that it would be released in September, so we were surprised to learn yesterday that the summary of that report was somehow “leaked” to Daily Journal reporter Paul Jones. We include today’s Daily Journal story on that “leaked” document.
We were not surprised, of course, by the summarized findings of the audit because we fully expected to see the same dysfunction, incompetence and lack of oversight in the multi-billion dollar court construction and maintenance program that we saw on display in the failed CCMS project.
As to who leaked this document, we will not speculate. As to why the document was leaked, we offer the following possible explanation: it is common to attempt to blunt negative press attention by leaking portions of an embarrassing report to a single reporter. Once that story runs the agency which is the subject of the report can claim that it’s now “old news” and that the recommendations in the report have been complied with. This tactic is often referred to as an “inoculation.” Whether or not this occurred in this instance, the Alliance will not be dissuaded from publicly disseminating the entire report once the Council sees fit to release it. Nor do we expect that the rather strange “leak” to a single reporter will dissuade other reporters in both the print and television media from reporting on yet another instance of Judicial Council and AOC mismanagement.
The common themes of this latest report, the State Auditor’s report on CCMS, the SEC report on the AOC, and the concerns raised by hundreds of judges during the most recent public comment period all underscore the desperate need for the democratization of the Judicial Council. The 15 year experiment of centralized governance by unelected bureaucrats and the abdication of oversight by handpicked functionaries has significantly damaged the image of the judiciary. The lack of Council oversight of the AOC has become habitual and blatant, as yet another report has found. At some point we need to say enough is enough. Let’s hope that doesn’t occur after additional millions or billions of public funds are wasted.
Directors, Alliance of California Judges
________________________________
August 16, 2012
Dear Justice Miller:
I am writing on behalf of the Alliance of California Judges to request that the Judicial Council immediately make a public release of the Pegasus Global Holdings, Inc., report on the operations of the Office of Court Construction and Management. I make this request to you in your role as Chair of the Executive and Planning Committee based upon that committee’s authority under Rule 10.11(a) to act on behalf of the Judicial Council between meetings. It is our understanding that this report has issued internally. Even if the current version of the report is preliminary and not final, it is imperative that the preliminary findings of this consultant group be made public. Please do not treat this as a Rule 10.500 request. We are constitutional judicial officers, and we need this information in order to perform our duties for the reasons outlined below. Even draft versions of this report, once released to the AOC, need to be made available to the public and to judges. If the report is preliminary, it may be denominated as such.
The immediate release of this report is critical because the Court Facilities Working Group has invited public comment on the decision-making process and criteria to be used in re-evaluating 31 SB 1407 projects moving forward with limited funds. Comments are due on August 24, 2012 with public meetings scheduled on September 5- 7, 2012 with planned final recommendations by the end of September 2012. The committee expects to make its final recommendations to the Judicial Council by October 26, 2012.
The information in the Pegasus report is critical both to any public comment that would be made on the 1407 projects, and it is also fundamental to any decision to be made upon the recommendations of the Strategic Evaluation Committee. The SEC Report references the Pegasus study at Page 156, after noting substantial deficiencies in the performance of the OCCM.
Prioritizing the 1407 projects from an operational needs standpoint cannot be accomplished in a vacuum without full appreciation of the likely available cash flow from 1407 funds. There are a number of fundamental deficiencies in the OCCM’s performance relative to likely available capital outlay and cash flow. First, the OCCM has not adequately considered the lack of available funds to maintain new courthouses once constructed, in light of the fact that the size of new courthouses will result in substantially increased costs of maintenance, identified to be at least $32 million more annually, which may have to be taken from 1407 funds. This problem compounds the fact that available funds for existing maintenance are already inadequate. Secondly, the OCCM may not have adequately taken into account available cash flow for the projects under consideration, particularly since there is likely to be an ongoing need to divert some 1407 funds to operations for the foreseeable future.
These discrepancies in the performance of the OCCM need to be addressed before any further decision can be made on prioritizing court construction projects. We are concerned that the court construction program may be headed in the same direction as the CCMS fiasco–a complete failure after a wholesale waste of public funds. This would be disastrous to the branch on a number of levels. We think that the Pegasus report must be released to judges, the public, to the Executive, and to the Legislature, in order for there to be a determination whether a public audit of OCCM is warranted, just as it was with CCMS.
Rumors abound that the Pegasus report has been issued internally and that it excoriates the performance of the OCCM, and that the report is being withheld for that reason, or perhaps even being modified. All interested parties need to be assured that this is not the case by an immediate public release of the report. It is unhealthy for this report to be withheld in light of the judiciary’s newfound commitment to transparency and open decision-making.
Thank you for your careful consideration of this request.
Directors, Alliance of California Judges
by David Lampe, President.
cc: Members of the Judicial Council, Hon. Brad Hill, Hon. Charles Wacob, Chair of the Strategic Evaluation Committee
_______________________________
Daily Journal
8/22/2012
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Report is critical of court construction
Audit blames state judicial branch’s lack of involvement for building program’s inefficiency
By Paul Jones
A leaked summary of an audit of the state judicial branch’s court construction program says the program needs more oversight, coherent policies and better organization in order to function more accountably and efficiently.
{Snip}
Last August, the working group directed the Administrative Office of the Courts to hire an outside auditor to examine the Office of Court Construction and Management, which handles the branch’s courthouse construction program.
The audit notes problems with the construction program’s organizational structure and procedures, claiming that limited staffing and “program constraints” have caused what was designed to be a top-down organization to function “horizontally.” Pegasus auditors determined that state law puts the Judicial Council in charge of the program but that there was no evidence it’s sufficiently involved. As a result, “the actual Owner [the Judicial Council] may not be exercising its responsibility to examine and make crucial funding decisions from a program perspective,” according to the audit summary, which didn’t lay out the practical effects of the lack of involvement.
{snip}
The document describes structural and operational problems with the court construction program, saying it has been understaffed since its genesis and operates without formal “delegation of authority and responsibility.”
While the report found policies for projects’ site selection and acquisition were acceptable, it identified policy and procedural deficits, nonuniform and unimplemented policies and the lack of a true project execution plan.
It goes on to say that there’s no formal review and approval process for projects, nor a uniform quality management program. Opportunities to achieve efficiencies are missed, and there is also no “apparent” analysis of the cost differences for projects’ initial estimates and final price tag upon completion. The auditors also found there is no formal means to evaluate contractors’ work.
{snip}
The audit’s results have been highly anticipated within the branch. Kern County Superior Court Judge David R. Lampe, president of the Alliance of California Judges, which has been critical of branch management, recently petitioned for its release.
Sacramento County Superior Court Judge Maryanne G. Gilliard, an Alliance member, said the findings of the audit aren’t surprising and that the Alliance believes poor management of the court construction program is resulting in a significant waste of money.
“The theme of inadequate oversight is one we’ve seen before, after [the Administrative Office of the Courts was] wasting over half a billion [dollars] on a failed computer system,” she said. “We cannot allow this to happen or continue to happen with the multibillion construction program.”
Jody Patel, interim director of the Administrative Office of the Courts, declined to comment.
“The report has not been publicly released,” Patel said. “Any comment on the report will fall to the judicial oversight committees.”
Judicial Council Watcher 
unionman575
August 23, 2012
Inquiring minds want to know more…Nice work JCW & ACJ!
😉
Wendy Darling
August 24, 2012
“We were not surprised, of course, by the summarized findings of the audit because we fully expected to see the same dysfunction, incompetence and lack of oversight in the multi-billion dollar court construction and maintenance program that we saw on display in the failed CCMS project.”
Uh-huh. So not a surprise. Garbage and greed in, garbage and greed out. Still waiting for the bigger lightbulb to go on at the State Legislature. How many of these reports does there have to be before there is an outside independent investigation? Even in baseball, three strikes and you’re out. But not at 455 Golden Gate Avenue. Judicial branch administration can waste, hide, mismanage, and misappropriate hundres of millions and hundreds of millions and hundreds of millions and hundreds of millions of public dollars ad nauseum, and absolutely no one in any position of authority and responsibility that could so something about, will. Judicial branch administration and the AOC will get another free pass on this too.
Long live the ACJ.
unionman575
August 24, 2012
In the midnight hour you cried more more more Wendy!
😉
Wendy Darling
August 24, 2012
At some point, Unionman, a person really begins to wonder what has to happen before there is an outside, independent investigation. Videotape? Oh, wait, that already exists. A report that reveals massive waste, lack of oversight, absence of transparency and accountablity, mismangement and malfeasance? Oh, wait that already exists. Actually, two such reports, and soon to be three. Purposeful disregard of internal rules and controls? Oh, that’s right, that already exists too. How about intentially breaking the law? Oh, that already exists to. How about lying to the State Legislature and deceptively hiding “special fund” money? Oh, that’s right, that already exists too.
You just can’t make this stuff up. Really.
Long live the ACJ.
unionman575
August 24, 2012
“RICO”
unionman575
August 24, 2012
4:25–4:40 p.m. Public Comment
[See Cal. Rules of Court, rules 10.6(d) and 10.6(e).]
Click to access jc-20120831-agenda.pdf
JUDICIAL COUNCIL OF CALIFORNIA MEETINGS
Open to the Public Unless Indicated as Closed (Cal. Rules of Court, rule 10.6(a))
Ronald M. George State Office Complex
William C. Vickrey Judicial Council Conference Center
Malcolm M. Lucas Board Room
455 Golden Gate Avenue • San Francisco, California 94102-3688
Thursday, August 30, 2012 • 10:30 a.m.–5:10 p.m.
Friday, August 31, 2012 • 8:30 a.m.–2:30 p.m.
unionman575
August 24, 2012
F*** me. Public comments at the end of the day.
Lando
August 24, 2012
The legislature needs to act.” The case for democratization of the Judicial Council. ” Exhibit 1 , the State Auditor’s report on CCMS. Exhibit 2 , The Judicial Council and AOC’s significant lobbying against even having such an audit. Exhibit 3, The Pegasus report on the millions wasted on courthouse construction . Exhibit 4, J Miller and J Hull’s refusal to release the Pegasus report in a timely way to the public. Exhibit 5, The SEC report and the recommendations it makes for massive branch reform. Exhibit 6, The Chief Justice’s and J Miller’s combined efforts to delay adoption of the many cogent SEC recommendations. Exhibit 7, The Judicial Council and AOC’s failed lobbying effort to kill 1208 . Exhibit 8, The Chief Justice’s diatribe against the State Assembly for passing 1208. Exhibit 9, Allowing AOC employees to receive pay raises while the trial courts lay off and furlough their employees .Exhibit 10, J Hull’s oversight of a so called nation wide search to hire a new AOC Director who has little relevant experience in managing an organization the size of the AOC. Exhibit 11, The continued employment policy of allowing an OGC attorney to telecommute from Europe in violation of California state policy. Exhibit 12, The CJP’s recent policy of arbitrarily investigating Judges for the legal decisions they make,. Once these exhibits are examined and evaluated the Legislature should hire former Judge and FBI Chief Louis Freeh to conduct a full scale investigation into all of the above so someone can finally be held accountable for the waste of literally millions of California taxpayer dollars and the destruction of the once proud California judicial branch. The bottom line , the legislature must intervene to democratize the Judicial Council and CJP so the branch can once again move forward in a positive way.
unionman575
August 24, 2012
Amen brother!
😉
Wendy Darling
August 24, 2012
Exhibit 13: AOC executives, directors, and senior managers not paying one penny into their public retirement and AOC pension padding practices. Exhibit 14: washing salaries of non-AOC/non-state employees through the AOC payroll in order to give them a PERS retirement, in blatant violation of the law. Exhibit 15: using unlicensed contractors. Exhibit 16: building new courthouses at 3 to 4 times what it should cost, while closing down existing courthouses across that state, and then trying to sell those closed courthouses back to their respective counties, even though the counties deeded them over to the AOC for one dollar or even for free. And so much more.
The legislature needs to act, indeed. Let us know when they can get around to that. Apparently, it’s not a priority. Or important. Or even on the State Legislature’s radar.
Long live the ACJ.
Lando
August 24, 2012
It will be now as a number of legislators and their staff access this outstanding site.Thanks Wendy for the powerful additional exhibits. You are awesome and an inspiration to all here who seek meaningful long term reform and democratization of the crystal palace .
Wendy Darling
August 24, 2012
Exhibit 17: an admitted embezzlement of public money in the AOC’s HR Division that was unreported to law enforcement and for which no one was held accountable and no effort was made to recover the embezzled money or to prosecute those responsible for the theft of public funds.
Long live the ACJ.
JusticeCalifornia
August 24, 2012
Yes, it is time for an outside investigation.
FOLLOW THE MONEY. Find out where the money went, how it went and why it went. Who got rich?
Yes, the Judicial Council absolutely has abdicated its responsibility to be responsible, but let’s look at the 1,000 person monstrosity that became the AOC, that spent the money, covered up, created “cleaner” reports (hello John Judnick et al), made strong recommendations/presentations to the AOC and refused, over and over again, to release information to the JC until right before, or AT the JC meetings. Those massive binders contained all sorts of new information. Was that an accident? I think not.
FOLLOW THE MONEY. Everything else will sort itself out. Those that feathered their nests and engaged in blatant waste will eventually be outed.
Speaking of waste–and Exhibit 17?– isn’t our acting director Ms. Patel the one who remodeled her AOC digs three times, and had that lush, lavish secret office floor when she was a regional director? Or was that someone else? I wonder how much money has been poured into such things, instead of insuring Access to Justice?
FOLLOW THE MONEY.
Let’s find out what all the people at the AOC who have been making the big bucks, and sucking up the big pensions, have been doing for that money.
unionman575
August 24, 2012
As to the remodeling, “Great Minds” do their best “thinking” in fresh high end remodeled digs. Didn’t you know that?
Think of it as a “reverse” Robin Hood.
courtflea
August 24, 2012
Bravo Lando! Does anyone know Louie Freeh’s email address?
I can’t believe the SEC report is on the “discussion” agenda. I think the Pegasus report leak was to take the heat off the issue of the SEC report, which encompasses the majority of the AOC.
I would like to also add that any fiscal or operational audits performed by the AOC or their designees in the “snapshot” of time of the last few years should be rendered unacceptable, null and void, and just tossed out because the AOC auditing trial courts is like Bernie Madoff handling your finances!!!
Wendy Darling
August 24, 2012
It can’t be a “snapshot in time” if nothing has materially changed, they’re still doing it, and it’s still going on. And nothing has materially changed, they are still doing it, and it is still going on.
Long live the ACJ.
Robert Turner
August 24, 2012
That snapshot in time is a complete insult. This was a 15 year vision of centralized power by the former Chief and his State Court Administrator. Both have their names on the buildings in SF. Lol I can’t think of better proof that the Judicial Council (JC) was/remains a pawn of the Chief than the fact that the JC named their conference center after Bill Vickrey even after members of the legislature were demanding his resignation in a letter to the Chief Justice. I wonder if the JC members feel some shame/irony in discussing the SEC report about the leadership errors of Bill Vickrey in a conference center they just named after him last year? That’s gotta suck and be awkward but it is pretty funny.
That’s be like Penn State University creating a new award in Joe Paterno’s name and naming a conference center for him right after the scandals broke. Sure Joe’s a great coach, he worked very hard, did a ton for Penn State, but all of that is tainted by the scandal of boys being abused by his assistant coach on his watch. Same theme with Bill vickrey (though I’m not saying Bill overlooked sex abuse). I am saying all of his good things are now being overshadowed by multiple scandals. Perhaps he was doing his best (like Jo Pa) but the mistakes happened on his watch. The part that offends now is the JC members won’t admit they lack legitimacy themselves as a body. Members with honor should resign from it until it is a democratically elected by judges/justices from the trial courts and appellate courts. Until then it is body tainted by scandal and is not worthy of any Constitutional Officer of CA to sit on save the Chief. After all, it’s effectively the same as the Chief sitting in a room alone dictating orders to AOC staff. Where are the real open discussions, the debate, the struggle on policies, the dissenting votes on tough issues? It does not exist! (save one judge who tried to get and could not get a second to implement the SEC report immediately).
Wake up other branches and do your jobs from outside the courts! The JC needs to be reformed for they are not going to change. The ego’s of the JC members/former members are huge. They are not going to be critical of themselves ever. That’s like having a wife who cheated on you and left you for your best friend own up to having had the affair and take responsibility for the damage she’s done. It aint gonna happen. She’ll live in denial denial denial of her actions because to accept the alternative is too painful. Or it’s like expecting Lance Armstrong to come out and admit, “OK, I did dope to win.” That’s not how people with huge egos work. Shouldn’t an innocent man falsely accused defend his actions with every fiber of his being? I say absolutely. Lance would rather be stripped of everything than ever admit publicly (or more importantly to himself) that he didn’t win fairly. Marion Jones has been down that road and it is a very humbling path that she has walked (to her great credit) in accepting that she cheated in the Olympics. People with great egos hate to be humbled more than anything. Better to go to “war” as the former Chief said when mention of change to the JC selection process than to admit being wrong. It ain’t gonna happen from within. .
Wendy Darling
August 24, 2012
Naming a judicial branch conference center after Bill Vickrey is akin to naming an “athletic center” after Jerry Sandusky after Sandusky’s indictment.
Long live the ACJ.
Curious
August 24, 2012
Do not expect shame, do not expect contrition, and above all do not expect voluntary change. This is a war and they have “gone to the mattresses”, to borrow a phrase from the Godfather. They have have surrounded themselves with several flak catchers from the Appellate Courts to try to insulate themselves. They are daily stonewalling information requests from judges and the press. They want to keep their grasp on power, and will use whatever means are at their disposal to do so. This includes the Chief Justice. Despite the outrageous revelations coming from the State Auditor and SEC, and now the Pegasus report (which cost almost half a million to produce) has anyone heard the Chief so much as murmur her disapproval? No, and you won’t. They will take the judiciary over a cliff rather than act rationally and reasonably. If that’s their desire, so be it. I, for one, would rather see that happen than see an enslaved judiciary where judges lose their last vestige of independence to feckless bureaucrats and and world-class apple-polishers like those on the Council. That’s an easy choice. There has been an absolute corruption of purpose, and a corruption of mission, while judges sat by silently. Now those sick of the situation must steel themselves and continue the fight. That’s the only answer.
Wendy Darling
August 24, 2012
All true, Curious. Pathetically, repungnantly, atrociously, disgustingly, offensively, repulsively, true. All that one can really expect at this point is more unethical conduct, fiscal irresponsibilty, and gross mismanagement from 455 Golden Gate Avenue, and continued indiffernce and inaction from the State Legislature and the California Attorney General’s office.
Long live the ACJ.
courtflea
August 24, 2012
Geez I have a winky ego but yes, it hurts to admit mistakes. but the best top people in public and the private sector will tell you that if you are not making mistakes you are no longer learning and you are surrounding yourself with yes people. To mistake is to keep growing. That is why the AOC its administration and the JC are so F***ed up.
Courtney House
August 26, 2012
I could not agree more with the above posts. Well said!!!