More than one week ago, the Hews Media Group broke a big story about California State Assembly Speaker John Perez collaborating with former Assemblyman Tom Calderon and Central Basin Municipal Water District officials, “in an attempt to coerce three Maywood Mutual Water Districts into taking on unwanted projects that if they did not accept, the districts, as Calderon said, would be ‘dissolved with a stroke of a pen.’”

One of the water districts’ general managers later asked who Tom Calderon was, with Calderon answering, “I was a State Assemblyman, my other brothers were Assemblymen too, so (laughing) we got the politics covered.”

The projects would have landed Calderon and his allies, as well as the Central Basin Municipal Water District, a lucrative $25 million dollar consulting contract to “fix problems” that one Maywood Mutual Water District General Manager insisted twice in the audio recording “we don’t have, or we were already working with the WRD to fix,” Randy Economy and Brian Hews reported.

Hews Media Group has three audio tapes of the meetings and deal making, which are now in the hands of the FBI.

“Calderon is heard on the audio recording saying he was ‘summoned’ by Speaker Perez and the Los Angeles Mayor Antonio Villaraigosa to call the meeting that included Enrique Gasca, one of Perez’s top staff lieutenants, CBMWD General Manager Art Agiular, Sergio Palos, General Manager of MMWD #1, Gustavo Villa, GM of MMWD #2, and Bob Ruhlf, who is the GM in District #3,” Hews reported.

This is big news worthy of a RICO investigation. RICO is the federal Racketeer Influenced and Corrupt Organizations Act, passed in 1970, to eliminate the ill-effects of organized crime on the nation’s economy.

But since the Hews Media Group October 24 story, it’s been only crickets in the mainstream media.

The other Calderon scandal

Instead, most news outlets are focused on the latest scandal surrounding Sen. Ron Calderon, D-Montbello, Tom Calderon’s brother and chairman of the Senate Select Committee on California’s Film and Television Industries. He stands accused of offering to help provide a state tax credit for films that cost less than a $1 million.

On Saturday, I published a story about Freshman Assemblyman Ian Calderon, D-Whittier, Ron’s nephew, authored two bills in 2013, AB 344 and AB 533, also involving the movie industry. And, Freshman Assemblyman Ian Calderon, 28, was given the chairmanship of the Arts, Entertainment, Sports, Tourism and Internet Media committee, by Speaker John Perez.

Again, it’s been crickets in the main stream media.

It is likely that representatives of Assembly Speaker Perez made some phone calls discouraging further reporting of his Calderon connection. Hews Media Group reported that the Los Angeles Times was also provided with the audio tapes, but refused to do the story.

The meeting, the deal

At the time of the meeting, Hews Media Group reported that records show Calderon was being paid $11,000 per month by Central Basin Municipal Water District for “public affairs.”

Aguilar begins the meeting with an explanation of why they were “summoned” by Perez and Villaraigosa and then says to the Maywood Mutual Water Districts general managers, “anything can happen if the money is there.”

“Almost three minutes into the meeting, Enrique Gasca enters the room and is introduced as Speaker Perez’ Director by Calderon,” Hews wrote. “Calderon goes on to say, ‘if we can’t make this (the project) happen we are all in a lot of trouble, in terms of things you want from Sacramento and his (Speaker Perez) ability to retaliate or encourage things… I have never seen a Speaker who does not get what he wants.’”

Calderon continues: “Here’s the deal, we need to be proactive, if we are not, if we do not put a plan together we can all support, the MMWD’s can be dissolved with (Calderon snapping his fingers) a ‘stroke of the pen’, it can be done,” reported Hews Media Group.

“One of the GM’s angrily says, ‘and this is your solution to better quality water?’”

“Calderon answers him, ‘it (the water quality) doesn’t matter, the (goal of the project) does not matter.’”

The bill that Calderon was talking about was Assembly Bill 240, first authored by Perez after he became Speaker. The current bill was authored by Assemblyman Anthony Rendon, D-Lynwood.

The bill was also being pushed by former Assemblyman Tom Calderon, and only targeted the Maywood Mutual Water District.

AB 240 was signed into law by Gov. Jerry Brown.  According to Rendon, “AB 240 addresses the water quality problems in the 63rd Assembly district by requiring mutual water companies like those that that deliver water to Maywood’s residents to comply with the Brown Act and the Public Records Act—two icons of public agency law.”

The audio recording has Calderon telling the group that “the quality of the water is not an issue, but painting a perception that the water is bad is the intent and if the water is presented as being bad, then the money will be there.”

He goes on to say, “if we can do that, then that will make him (Speaker Perez) feel comfortable enough to go ahead and move forward (to disburse the $25 million). He (Perez) will want to have an independent agency receive the disbursement-Calderon indicates that CBMWD as the agency-and would be the appropriate entity to control the process.”

Twenty minutes into the meeting one of the Maywood water districts general managers asks “what do you want us to do?” Calderon’s response was, “as long as it is agreeable to us (Calderon, Aguilar), I don’t think the Speaker (Perez) is going to care how it is done, as long as it is getting there,” Hews reported.

Aguilar then prompts the GM’s for a “needs list” and tells them that, “it is in the best interests of you and your owners to cooperate with us and Speaker Perez.”

“In what was probably indicative of the entire meeting, one GM says to Aguilar, ‘so you want me to give you a list of things that I need to replace to solve a problem I don’t have.’” Aguilar’s response was a loud laugh followed by “yeah.”

For the audio recordings, click HERE.

Gil Cedillo Jr.

Gil Cedillo Jr. will be “relieved of duties” July 31 from the Central Basin Water District.  The Los Cerritos News reported Cedillo Jr. was paid $112,970 a year, as well as $22,000 toward his bachelor’s degree. He is the son of Gil Cedillo Sr., who now sits on the Los Angeles City Council; and formerly served in the state Senate and Assembly.

Cedillo Jr. was once the chief of staff for then-Assemblyman Ron Calderon, D-Montebello, who now is a state senator. 

And more than a decade ago, Cedillo Jr. was a senior field representative for then-Assemblyman Tom Calderon, D-Montebello, who left office in 2002. Tom and Ron Calderon are brothers.

On June 5, the FBI raided Ron Calderon’s office. According to the Los Angeles Times, “[F]ederal authorities have seized records from a Southern California water district that provided contracts to Calderon’s brother, former Assemblyman Tom Calderon.”

Tom Calderon is a “consultant” for the Central Basin Water District and has been a familiar site at the Capitol lobbying lawmakers on bills benefiting his clients.

Tom Calderon is paid $10,000 a month as a consultant/unregistered lobbyist, and another $140,000 per year as a consultant to a subcontractor, according to the Los Angles Times. The Chicago Tribune reported this totaled more than $750,000 in consulting fees since 2004.

The FBI also searched Pacific Hospital of Long Beach and Industrial Pharmacy Management in Long Beach, companies using Tom Calderon as a consultant.

Political fiefdom

“Cedillo Jr. was rarely seen at work for the past several months by employees and elected directors of the district, but still collected his six-figure salary,” the Los Cerritos News reported. “Copies of checks written to Azusa Pacific University to cover the costs of Cedillo Jr’s.” salary were “approved by former CBMWD General Manager Art Aguilar, who is a longtime personal friend of Cedillo’s family.”

Cedillo Jr. has been working since April of 2011 as a “business development manager” for the Central Basin Municipal Water District.

Cedillo name

“It pays to have the name Gilbert Cedillo in Los Angeles political inner circles these days,” said Randy Economy and Brian Hews in the Los Cerritos News story.

When Cedillo Jr. went to work for Central Basin, a college degree was a condition of his employment. So the water district paid him $22,000 toward tuition at Azuza Pacific University. If Cedillo Jr. were to “flunk out,” he had to repay the district, according to the Los Cerritos News. Instead, termination means he doesn’t have to repay the tuition. And he will receive a severance package.

By Katy Grimes

By Katy Grimes

Following the June 5 FBI raid on his Capitol offices, Sen. Ron Calderon, D-Montebello, made a really brief appearance before the Senate convened for session.

However, Calderon revealed nothing about the raids, part of an ongoing corruption investigation, according to the FBI. Calderon instead referred all questions of substance to his attorney Mark Geragos, famous for his representation of Scott Peterson, now on death row, convicted of murdering his wife, Laci, and their unborn baby.

“My family and I have gone through a lot in the last several days,” Calderon said. “It’s been very stressful. It’s been very hard on all of us. We’re all very anxious to put this behind us and to carry on normal life.”

Calderon spoke for about 60 seconds.

“I have a lot of my own questions,” Calderon said. “My intention at this point is to do my job I was elected to do, attend my hearings, get my bills passed out of committee to the floor and do the work of the state.”

 The investigation

More details of the cases have been revealed. In April, the FBI also searched Pacific Hospital of Long Beach and Industrial Pharmacy Management in Long Beach, which had hired Calderon’s brother Thomas Calderon as a consultant. Thomas Calderon is a former Assemblyman.

Additionally, another consulting client, the Central Basin Water District, paid Thomas Calderon $10,000 a month as a consultant and another $140,000 per year as a consultant to a subcontractor, according to the Los Angeles Times.

The Central Basin Water District has its own troubles. The water district is made up of 44 cities and water utilities in southeast L.A. County. The cities have been in a dispute with the Central Basin Water District over management issues which allegedly impact water rates.

Last year, Downey Mayor Mario Guerra testified before the Joint Legislative Audit Committee about the mismanagement. But the committee, led by then-Assemblyman Ricardo Lara, D- Bell Gardens, turned the tables on Guerra and ordered an audit of Downey’s Department of Public Works.

Lara is now in the Senate and rumored to also have been subpoenaed in the FBI case.

U.S. Rep. Grace Napolitano, D-Calif., pushed for an investigation and audit of the Central Basin Water District in 2009, the LA Times reported.  Napolitano said she has heard complaints for more than a decade from cities she represents about the agency’s lack of transparency and questionable spending of public funds,” according to the LA Times.

“In particular, Napolitano questioned how the district spent $5.6 million in federal funds she helped secure to build infrastructure for a regional system to recycle water.”

But the audit did not happen, and Napolitano blamed Sen. Calderon for thwarting efforts to make it happen.

And there have been charges of corruption of board members. “Central Basin Municipal Water District Board Director Leticia Vasquez is using her newfound -and possibly illegal – majority voting bloc status to benefit longtime personal associates including Maurice Chenier, the law office partner of her fiancé Ronald N. Wilson and another close personal associate Jasmyne Cannick,” the Los Cerritos News reported.

“CBMWD Director Phil Hawkins was even more outspoken telling LCCN, ‘The very first board meeting, after she was elected, I said her whole plan was basically to hire all her (Vasquez) campaign team, friends, and relatives and put them on staff so they would be ready for her next campaign, and it is all coming true now.’”

Sen. Calderon has carried legislation that would benefit the water district.

Calderon is also well-known in Sacramento for accepting gifts, tickets to sporting events, and exotic trips from lobbyists, including first class accommodations in Hawaii, Las Vegas, and the AT&T Pro Am in Pebble Beach. Some estimates of the gifts from special interests are between $45,000 and $60,000, since 2000, significantly more than any other legislator.

By WAYNE LUSVARDI

Remember “Chinatown,” the murky 1974 movie about the water wars in the Los Angeles Basin in the 1930s, starring Jack Nicholson and Faye Dunaway?

A January 18 California appeals court water rights case is reminiscent of the multilayered plots and subplots in the flick.

The “Chinatown” movie plot involves fictional character Hollis Mulwray who is  murdered due to his opposition to the proposed construction of a new dam.  The fictional Mulwray is based on the real historical person of William Mulholland, the infamous head of the Los Angeles Department of Water and Power, who allegedly stole water from Mono Lake in Northern California in the early 20th Century.

But the current court case is not like the movie “Chinatown” in one important aspect. There is no sex involved in the putting in and taking out of water from the Los Angeles Central Basin Water District water basin that is the focus of this court case. But there is alleged bureaucratic bigamy and robbery.

Quoted in the Long Beach Press Telegram newspaper, Long Beach City Water Department Director Kevin Wattier succinctly summed up the main issue in the case, “Right now it’s like a bank account where you can put money in but can’t take it out.”

The legal citation for the current case is Water Replenishment District of Southern California versus the City of Cerritos, Case No. B226743, Second District Court of Appeals, filed Jan. 18, 2012.

The Plaintiffs

The original complainants (plaintiffs) were five cities and a regional water replenishment district: Long Beach, Lakewood, Los Angeles, Huntington Park and Vernon; and the Water Replenishment District of Southern California.

A water replenishment district is a special agency of government that recharges underground water supplies from natural rainwater runoff captured from a local watershed.  In this case the water recharge basins are adjacent to the upper San Gabriel River and the 605 Freeway in Los Angeles County.  And the watershed involved is the San Gabriel Mountain and River watershed.

All the cities involved in the case are located downstream of the water recharge basins.  Long Beach is located near the mouth of the San Gabriel River to the Pacific Ocean. A map of the cities along the San Gabriel River can be found here.

The Defendants

The defendants (respondents) are three cities and one sub-regional water agency: the cities of Cerritos, Downey and Signal Hill, together with the Central Basin Municipal Water District.  The Central Water Basin is obviously located near the center of the land surface of the Los Angeles urban basin.

While there is no sex involved in this case, there is bureaucratic bigamy and alleged robbery: all of the parties to the case share the same underground water basin.  In fact, the Water Replenishment District was created to refill the Central and West Coast underground water storage basins.  There has been a history of court cases in the Central Basin alleging “overdrafting.”  That is water terminology for “highway robbery.”

The History of the Central Basin Water Wars

The Central Basin has a 277-square-mile underground footprint.  If the basin were square shaped, it would comprise an area of about 16.5 miles by 16.5 miles. The Central Basin serves city water departments, unincorporated areas, private water companies, school districts, electric utilities and landowners.  The Central Basin Water District sells treated water to cities and others within its regional service area. Like the movie “Chinatown,” water is a many-layered story.  There are no murders but there are plenty of complex water wars.

Going back to 1965, a court ordered that 500 parties having water rights in the Central Basin were subject to limits as to how much water they could take to prevent overdrafts.

In 2001, several interested parties sought unused storage space in the Central Basin.  A court appointed the California Department of Water Resources to serve as “watermaster,” or water traffic cop.  But at that time, the court rejected the legal notion that the right to extract water creates a concurrent right to store water.

By 2009, another group of water pumpers bubbled up. They filed a court action to use 330,000 acre-feet of “dewatered space” in the Central Basin for future water storage.  This would be enough water for about 660,000 households per year. This action sought even more layers of complexity: three “watermasters” were to be appointed.

The trial court issued an order on July 7, 2010. The order said it only had authorization to apportion water rights and not rights to unused capacity space in the Central Basin.  Additionally, the court believed it could not appoint “watermasters” over unused space in the basin that held no water today. The Water Replenishment District of Southern California is appealed the ruling.

The Current Court Ruling

On Jan. 18, 2012 the State Appellate Court ruled that the trial court: 1) had authority to allocate future storage in the Central Basin; 2) had jurisdiction over water transfers between the Central and nearby West Coast Basins; and 3) was not prohibited from appointing a “watermaster” over unused space in the Central Basin. The court additionally ruled that the Central Basin Water District might also be able to serve as “watermaster.”

The defendants — the cities of Cerritos, Downey and Signal Hill — contended: 1) their costs would be increased if others were given the right to lease unused capacity in the Basin; 2) over-drafting of the Basin could result if new “wet water” was not put in first; and 3) there was a threat the appointed watermaster could try to merge the Central and West Coast Basins. The Central Basin did not want a proverbial “shotgun marriage” to result over the issue of renting a room to the unwanted bastard child of unused basin capacity.

Presumably, the above issues can be heard and adjudicated now that the jurisdictional issues have been clarified.

Enormous Implications

The timing of this case has enormous implications for what is happening statewide.  The Delta Stewardship Council appointed by the State Legislature is about to put into place widely encompassing laws that could usurp powers from local water districts.  Local water agencies would no longer be able to do anything that adversely impacted the Sacramento Delta.  The Delta is where Southern California gets most of its imported water supplies.  Conceivably, local water departments might not be able to issue any new water permits or “will serve” letters to real estate developers if that meant using more imported Delta water.

David O. Powell, the former chief engineer of the San Diego Office of the State Department of Water Resources and the Alameda Water District, said he believed the proposed Delta Plan would result in cutting water allocations to Southern California in half.

This is despite Southern California using about the same amount of water it used 25 years ago, even with 35 percent more population. Through conservation, Southern California has already given up about 1 million acre-feet of water per year to the Delta ecosystem. That is enough water for about 2 million households or 4.5 million people. Yet the Delta Stewardship Council wants to reduce water use by and additional 20 percent by the year 2020.

State and regional water agencies have shown an inability to bring more water to Southern California without huge, costly infrastructure projects, such as: the proposed Peripheral Canal that would route water around the Delta and/or the proposed $11.1 billion water bond.  Both of these projects would pinch the already deficit-plagued state budget.  There are matching fund requirements in the proposed state water bond.  Thus, the real cost of the proposed water bond may be about $18 billion.  The cost of the Peripheral Canal is estimated to cost $13 billion, or $23.5 billion with bond interest costs.

Consequently, local water districts and cities are going to have to find a way to capitalize on the unused storage capacity in the eight underground water basins in Southern California.  They may be compelled to contract for some of their own water supplies instead of depending on more imported water from regional water wholesalers.  This could mean water transfers from recycled water, from the new Cadiz water basin in the Southern California desert, voluntary purchases of water from farmers, desalinated ocean water or the development of new water resources. This will require a much more open water conveyance and storage system with reasonable transfer costs than the present semi-socialized system with many trade barriers.

So the outcome of the Water Replenishment District versus the city of Cerritos case may have huge consequences for Southern California’s cities and economy.

Economic Homicide? 

To add another subplot to the story, Assembly Bill 375 — the anti-urban sprawl bill passed in 2008 — would divert future population growth to the coastal urban areas.  But this may result in “no growth” if the water spigot from imported water from the Delta is simultaneously shut off.  This could kill off an economic recovery.

So maybe the above-mentioned court case is like the movie “Chinatown” and will involve murder — economic homicide — anyway.

Or it may have a wedding and happy ending: economic reproduction if local water agencies and city water departments are allowed to contract for future water and deposit it in fertile underground local water basins.

A sequel to “Chinatown” came out in 1990, called “Two Jakes.” It wasn’t as good, even though it starred Jack Nicholson and another great actor, Harvey Keitel.

It’s time for a better sequel. Call it, “Central Water Basin Blues.” Jack Nicholson could star once more, this time with Arnold Schwarzenegger, now an actor again after his stint as governor. As in the original “Chinatown,” and as with the real California, reality and fiction would blend on the celluloid.