MOORLACH UPDATE — Supreme Court — February 8, 2011

Today the Board of Supervisors will vote on whether to appeal our case to the California Supreme Court, declaring that the granting of retroactive benefits is unconstitutional.

The OC Register, the third piece in its editorial column, encourages the Board to do so.  It is the first piece below.

The Voice of OC brings us up to date, and it is the second piece below.


Editorial: On to the Supreme Court

A Los Angeles-based state appeals court ruled last month against the Orange County Board of Supervisors’ fight to reverse retroactive pension benefits awarded by an earlier board to sheriff’s deputies. Today, supervisors will decide whether to appeal to the California Supreme Court. It is in the best interest of Orange County taxpayers for the board to do so.

The board has lost at the trial-court and appeals-court levels with its argument that a portion of retroactive pension benefits conferred on public safety employees in 2002 essentially gave workers a raise for work they had already done and placed an additional $100 million burden on taxpayers.

Supervisor John Moorlach has championed the effort to undo the retroactive pension boost, but for the lawsuit to continue he will need at least two other supervisors to vote in favor of proceeding. Supervisors Shawn Nelson and Pat Bates have talked a good game on pension reform; we hope they take this opportunity to act. Continuing the lawsuit is in the best interest of Orange County taxpayers.


Third Time a Charm or Just More Lost Taxpayer Dollars?


County supervisors today will decide privately whether to ask the California Supreme Court to listen to their lawsuit arguing that the county government shouldn’t have to pay retroactive pension benefits to deputy sheriffs.

While it looks as if supervisors are likely to keep moving forward, as the legal bills (and courtroom losses) mount, there are questions whether the county should keep going to court.

The 2nd District Court of Appeal last month rejected current supervisors’ arguments that their former colleagues broke the law on incurring debt when they chose to expand deputy sheriff pensions after the Sept. 11 terrorist attacks in 2001. A Los Angeles Superior Court had previously rejected the same arguments.

Both courts made their decisions quickly, prompting many — even fervent opponents of public employees unions — to question whether the lawsuit should have ever been filed.

Wayne Quint, president of the Association of Orange County Deputy Sheriffs, has argued that the $2.2 million spent by the county is a waste of taxpayers’ money. He is expected today to address supervisors in open session asking them to abandon the next appeal to the Supreme Court.

Actuaries figure supervisors’ actions on deputy sheriff pensions in 2001 could end up costing taxpayers more than $187 million over the next three decades.

County Supervisor John Moorlach — who along with his former chief of staff, Mario Mainero masterminded the effort — says it’s no time to quit.

Although Mainero left county service a few years ago, he’s been retained to advise supervisors under a contract that has drawn fire.

Despite concerns over monies spent to argue the lawsuit, Moorlach sees an appeal to the Supreme Court as a natural because he argues that court can challenge legal concepts in a method other lower courts won’t.

"They would really take a serious look," said Moorlach, adding that he’s ready to make a case to his colleagues on Tuesday. "This is where we can change the understanding of the law."

Moorlach acknowledges he’s a bit nervous, hoping he can secure two more votes to keep going.

Moorlach said the costs for moving forward today are nominal, especially when considering the potential benefits. And, he warned, if someone else makes a successful court challenge later, Orange County would get nothing.

County Supervisor Janet Nguyen – who voted against going forward with the appeal last year – sees Tuesday in a different light.

Nguyen said she’s concerned with mounting legal bills from the lawsuit, especially during today’s tough budget-cutting environment.

And it doesn’t help that the lawsuit keeps losing, Nguyen added.

For her, it’s time to move forward.

"If we want reform on pensions, we’ve got to negotiate that," Nguyen said.

She mentioned recent deals that have been crafted with the county’s general employee union, the Orange County Employees Association, as well as the deputies on issues involving retiree medical benefits and pension contributions.

Taking people that you want to negotiate with into court is a bad idea, she said.

"If we want to negotiate better contracts," Nguyen said, "this is a distraction."


February 8


The OC METRO used to have a “Quotables From KOCE’s ‘Real Orange’” section.  Here was the quote for the week:

                “Our strategies are to hold to maturity; we don’t feel that a deep discount needs to be made . . . it’s time for cooler heads to prevail.”

                JOHN M. W. MOORLACH, O.C. treasurer/tax collector, on the next step after his $40 million investment in Edison International

Disclaimer:  You have been added to my MOORLACH UPDATE communication e-mail tree.  In lieu of a weekly newsletter, you will receive occasional media updates, some with commentary to explain the situation, whenever I appear in the media (unless it is a duplication of a previous story). 

I have two thoughts for you to consider:  (1) my office does not usually issue press releases to get into the newspapers (only in rare cases); and (2) I do not write the articles, opinions or letters to the editor. 

This message should appear at the bottom of every e-mail you receive.  If these e-mails should stop arriving in your mail box, it will be because your address has changed and you did not provide a new one.  If you do not wish to receive these e-mails, then please e-mail back and request to unsubscribe.