The Morning Report
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Mike Aguirre and I have often been at odds on many issues related to the city retirement system. I believe it’s because our responsibilities are just different. My sole responsibility (my fiduciary responsibility) is to the health and administration of the retirement system.
Mike says his responsibility is to the citizens of San Diego. I’m not sure where providing legal advice to the mayor and council fits in that statement, but that’s between him and them.
Two weeks ago, Scott Lewis wrote a little piece about me actually agreeing with Mike Aguirre over the Kroll report. I really don’t believe my opinion of the Kroll report was that much different than about a million, or so, other San Diegans. I mean, really … does anyone believe that report was worth $21 million?
It’s unfortunate that our city got taken by a bunch of slick New Yorkers from Kroll. They took full advantage of a city that had its financial back up against the wall and for 18 months milked this city for millions for a report that reads more like an amalgamation of the Vinson & Elkins, City Attorney’s Interim, and Navigant reports than an original document.
I guess the big bonus in the Kroll report is supposed to be its remediation plan. It should be called the Gucci Plan for what it will cost to implement. I don’t know how the city will find another $45 million (minimum) to implement 121 recommendations just so they can convince KPMG they’re committed to reform and worthy of a clean audit, so it can have access to the financial markets, so it can pay for (among other things) its remediation plan.
What really kills me about the Kroll people is their arrogance. I still remember Arthur Levitt’s statement before City Council that “San Diego’s problem isn’t financial, it’s political.” Are you kidding Arthur?
Of course it’s financial – did you happen to see the potholes your limousine had to drive around on the way over here from the airport?
And then, as a parting shot, the Kroll people have the audacity tell city leaders they needed to change their ethical culture. OK … maybe they got that one right – but coming from Kroll, that statement was just a bit too hypocritical – even for me.