Steinberg’s Consulting Arrangements with Metropolitan Water District

MEDIA RELEASE

Date/Time: June 2, 2016, 3:00 p.m.
Contacts: Craig Powell, President,
Eye on Sacramento
Phone: (916) 718-3030
E-mail: craig@eyeonsacramento.org

Eye on Sacramento Calls on Mayoral Candidate Darrel Steinberg

to Fully Disclose the Details of His Contractual Relationship

With Southern California’s Metropolitan Water District

Sacramentans learned for the first time yesterday from a Sacramento Bee story that Darrell Steinberg, while actively seeking the support of Sacramento voters for his mayoral bid, has been covertly providing strategic consulting services to the politically powerful Southern California-based Metropolitan Water District (MWD) whose interests are very much at odds with the interests of the City of Sacramento and its residents on just about every major water issue facing our region. Steinberg’s law firm, Greenberg Traurig, has been collecting $10,000 per month from MWD for Steinberg’s services since July of last year.

Eye on Sacramento (EOS) has been championing the adoption of meaningful transparency and ethics reform in the City of Sacramento for the past 18 months. EOS co-hosted 10 public forums on the subject last year, helped form a broad coalition of supportive community groups and presented reports and proposals for a model ethics code, a robust ethics commission, a strong Sunshine Ordinance and an independent redistricting commission.

We are troubled that Sacramento voters who have already voted via absentee ballot (now fully half of all Sacramento voters) did so without the knowledge that one mayoral candidate was effectively on the payroll of the MWD. While nothing can be done at this late date to cure that significant informational failure, there are some immediate steps that Mr. Steinberg can and should take to fully explain the nature and extent of his relationship with MWD for the benefit of voters who will be casting their ballots on Election Day.

Questions that Mr. Steinberg should now answer include: When did he and MWD first begin discussing a consulting arrangement? How much of his time over the past year has he devoted to providing “strategic advice” to MWD as called for in the contract? Has he been maintaining time records of his services? Will he publicly disclose such records? Has he provided any “deliverables” to MWD, such as reports and other documentation? Will he and MWD now disclose such documents? What public officials in our region did he meet with in the service of MWD’s goal of building relationships with North State stakeholders? Will he and MWD voluntarily release copies of their e-mail communications with one another, without the need for submitting formal public records requests? (Note: Steinberg was providing “consulting services” for MWD, not legal services which would have been protected from public disclosure under the attorney/client privilege).

The voters of Sacramento deserve to know if Mr. Steinberg, in providing consulting services to MWD while campaigning for Sacramento mayor, has been acting appropriately, ethically and loyally as both a Sacramento resident and an aspirant to the mayor’s office or has he acted in a manner that is at odds with the long-term best interests of Sacramento and its residents?

By promptly and fully disclosing these matters to the Sacramento public, Mr. Steinberg will go a long way towards allaying legitimate public concern over the role he is playing with MWD. If Mr. Steinberg fails to provide such disclosures, we would encourage the Sacramento County Civil Grand Jury to consider initiating an investigation into Mr. Steinberg’s relationship with MWD to uncover the facts. One way or the other, Sacramento voters deserve to know the facts and implications of Mr. Steinberg’s dealings with MWD.

The contract between WMD and the Greenberg Traurig law firm involving Mr. Steinberg’s consulting services to WMD may be viewed on the EOS website via this link.

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Sacramento needs real ethics reform, not city’s fake version

SOAPBOX

OCTOBER 4, 2015

City Council is finalizing a package of proposals on ethics and open government

Eye on Sacramento says its reforms are much more robust

Public won’t be satisfied with weak changes

Eye On Sacramento Objects to Repeal of the 10-Day Sunshine Rule

Statement from Eye on Sacramento to Sacramento City Council on the Repeal of the 10-Day Sunshine Rule on City Contracts over $1 Million

Monday, March 10, 2014

Dear Mayor Johnson and Members of the City Council,

We are writing to express our strongest possible objection to the proposal before you tomorrow evening to gut the current city council rule that requires that all city contracts involving more than $1 million be posted on the city’s website and be made available to the public at least 10 days before the council takes action on such contracts.

This 10-day posting/disclosure rule is commonly known as the city’s “Sunshine Rule” and was adopted to assure that the public and the media have adequate time to review and provide feedback to you on the terms of major city contracts before you vote on them (Council Rules Chapter 7, Section E-2-d; found here).

The council’s adoption of the Sunshine Rule has been the single most important upgrade in city government transparency in the past 20 years.

Had the Sunshine Rule been in place when the city was considering approval of its 20-year exclusive, no-bid prime garbage contract with BLT Enterprises (now Waste Management) in 2010, it is unlikely that such an unfair and grossly burdensome contract would have been imposed on hapless city utility ratepayers. Because the Sunshine Rule was not in place at the time, the egregious city/BLT Enterprises contract was jammed through late at night during the final session of the term of the city council with zero public or media awareness or analysis. The Sacramento County Civil Grand Jury has castigated the city for both the atrocious terms of the BLT contract and the shady circumstances under which it was approved (Grand Jury, 2011-2012 Reports, page 39; found here).

The proposed draft of the new council rules proposes that the Sunshine Rule apply in the future only to city labor contracts – which are already covered by the current Rule since every city union contract involves more than $1 million. Gutting the Sunshine Rule would return us to the council’s bad old days when it all too often provided de minimis notice to the public and the media of the terms of large contracts that have a lasting and major financial impact on the city. That is simply unacceptable.

How can you expect the citizens of Sacramento to trust the city council and city government when you are taking active steps to hide from them the details of major city contracts? When you intentionally change the rules so you can provide inadequate public notice of the terms of major contracts you only breed public cynicism and suspicion over what it is you are trying to hide from the public.

For example, is it sheer coincidence that this move to gut the council’s Sunshine Rule is occurring just three weeks before you are set to approve a massive public subsidy of a new sports and entertainment facility, set for April 1st? Somehow we doubt it.

There has been no showing whatsoever of any need to water down the Sunshine Rule. The council already has a relief valve in place in cases of exigent circumstance: the council, by a 2/3rds vote, can choose to waive the 10-day posting requirement.

We can only surmise that some council members are seeking to gut the Sunshine Rule now in order to deprive the public and the media of a reasonable opportunity to review the several hundreds of pages of legal documents that will comprise the “arena deal.” We can only conclude that you don’t want the public and the media to have adequate time to review the documents, determine the impacts and provide citizen feedback to you, their elected representatives.

If you approve this rule change tomorrow evening you will be sending a clear signal that you want to keep the public and media in the dark for as long as possible about the final terms of the arena deal and deprive them of the time needed to adequately review the final deal and provide informed feedback to the council. No council member voting to gut the Sunshine Rule could ever again creditably claim to be supportive of transparency and openness in city government.

We beseech you: please show a higher level of respect for your constituents and reject this misguided effort to gut the city’s Sunshine Rule. Thank you.

Very truly yours,

Craig Powell, President

Phone: (916) 718-3030

cc: Mr. John Shirey, City Manager
Ms. Shirley Concolino, City Clerk
Mr. James Sanchez, City Attorney
Media Distribution List

City of Sacramento Sales Tax Increase, Measure U (November 2012)

  • Citizen law suit filed against City of Sacramento 

    Petition for Writ of Mandate – City of Sacramento Measure U – Tax Increase

    … The writ sought by Petitioners will rectify an egregious and extraordinary confluence of actions and dereliction of duties by the City, its City Council and its Mayor which have combined, whether by design or mere neglect of officially assigned responsibilities, to effectively deprive Petitioners of their right and opportunity to place arguments against Measure U before Sacramento voters and, more critically, to deprive Sacramento voters of their fundamental right to see and consider the arguments of both proponents and opponents of Measure U instead of having available to them only the arguments of proponents of Measure U …

The City’s Garbage Contract with BLT Enterprises: Time for Full Accountability

Review the full report

IX. SUMMARY

We sincerely hope that Sacramento city officials and the Sacramento County Civil Grand Jury, as well as local media, will investigate and further examine the problems and serious issues that have plagued the City of Sacramento’s administration of its waste disposal contract over the past 15 years, as identified in this Eye on Sacramento report. It is time for full accountability.  … full report