Aguirre vs Murphy

From the Union Tribune -

"City Attorney Michael Aguirre holds a news conference to present his eight-point plan to address the city's financial condition.

SAN DIEGO – San Diego City Attorney Michael Aguirre called Tuesday on Mayor Dick Murphy and members of the City Council to conditionally accept findings of his reports on the city's debt-ridden pension plan.

The request was the first of eight recommendations Aguirre described as "an integrated plan" and "the things we need to get us out" of current problems.

The second of two reports on the pension deficit – released by Aguirre on Feb. 9 – alleged "substantial evidence" that Murphy and the council committed civil violations of federal securities laws.

Murphy has denied the allegations in the report, saying Aguirre was "acting in a serious conflict of interest" and "greatly damaging the city he supposedly represents."

At an evening news conference at City Hall, Murphy said he and the council would "absolutely not" accept Aguirre's conclusions. "

City attorney's recommendations (PDF)

Our bonds

From the Union Tribune -

"A New York-based ratings service has downgraded $46 million in San Diego's general obligation bonds and $250 million in debt, a decision that may lead to higher borrowing costs for the financially challenged municipality.

The notice, issued by Fitch Ratings analyst Amy Doppelt in San Francisco, downgraded the city's general obligation bonds to "A" grade from "AA." The lease-backed debt of $250 million was dropped from "AA-" to "A-", a company spokesman said."

Who runs this town

Just in case you had any doubts about who owned City Hall...

From the Union Tribune -

"San Diego Mayor Dick Murphy's two Planning Commission nominees were confirmed by the City Council yesterday, despite objections from community planners and others that the commission is weighted in favor of development

Only Councilwoman Donna Frye opposed appointing Robert Griswold, president of a real estate management company, to a four-year term on the seven-member commission. Attorney Barry Schultz, who specializes in real estate law, was reappointed without opposition.

Griswold replaces chairman Anthony Lettieri, a professional planner who stepped down because of time constraints. Schultz will be the new chairman.

Frye said the commission should include a member from one of the city's 42 planning groups and representatives from more than four of the eight council districts.

"Half the city does not have representation. . . . That is not reasonable. That is not even fair," Frye said.

Three planning commissioners live in Brian Maienschein's 5th District, two in Toni Atkins' 3rd District, one in Scott Peters' 1st District and one in Michael Zucchet's 2nd District.

Tony Young's 4th District, Frye's 6th District, Jim Madaffer's 7th District and Ralph Inzunza's 8th District have no members.
"

More fun down at city hall

From the Union Tribune -

One compared him to Joseph McCarthy, America's all-time leading witch hunter. Another threatened action at the state bar. Still another held out a possible defamation lawsuit.

So went the reaction of San Diego's elected officials to City Attorney Michael Aguirre, who in a report issued after hours Wednesday concluded there is "substantial evidence" that Mayor Dick Murphy and the City Council committed civil violations of federal securities laws.

City officials were badly stung by the report, which concluded that beginning in early 2002, they misled the public and Wall Street in bond documents that omitted facts about the deteriorating state of the city's pension system.

Their displeasure played out across a broad front yesterday.

In addition to threatened legal action, there were renewed allegations that Aguirre is out of control and violating professional guidelines by going after the public officials he is supposed to represent.

For his part, Aguirre dug in his heels, defending his report and aiming sharp criticism at the council in general and Murphy in particular.

"The idea of whining about a conflict really is a sideshow," Aguirre said.

The city attorney accused Murphy of putting self-interest above the public interest.

"The conflict is between Mayor Murphy's need to defend himself and the city's need for an honest investigation," Aguirre said