OPINION – Despite the growing chorus of complaints from thousands of Californians up and down the state about long lines and wait times at the DMV, state lawmakers and Governor Brown refuse to order an official state audit into the agency’s management practices.
How many hours have you wasted, spent standing in line at the DMV or on hold on its automated phone system?
A recent audit request needed at least eight supporters from the Joint Legislative Audit Committee (JLAC)— four from the Assembly and four from the Senate — for approval. But they just couldn’t muster the political will or the votes to audit an agency that impacts the lives of almost every Californian over the age of 16.
Contrast that with a recently completed audit, requested by controversial Assemblywoman Cristina Garcia of the California’s two and a half year-old mattress recycling program.
Somehow, JLAC managed to find the votes to audit this little-known program, and spoiler alert: the state auditor found little to be concerned about, as it announced the results of the audit in late August of this year. In fact, the state auditor’s report criticized the MRC for having held too much money in its reserves!
The California’s Mattress Recycling Council was created to oversee the collection and recycling of used mattresses. Nearly a million used mattresses are now collected and recycled in the state every year, diverted from landfills and kept from being dumped on the side of the road or in empty fields. A worthy program financed not by taxpayers but by a fee paid by people who buy mattresses.
And now, the rest of the story. While the audit revealed no major problems with the MRCs daily operations, it did contain one glaring omission. The lion’s share of the MRC’s contract volume is going to just one politically connected company: Eco-Modity LLC DBA Blue Marble Materials.
At one point, the company used its political muscle to obtain approval for millions of dollar in tax free bonds, facilitated by the State Treasurer’s office. They were approved, but never issued. What did the Treasurer’s office know then, and why didn’t the auditor review those transactions which can be found with a simple Google search?
The company’s ability to complete the work its contracted to perform, and notable public legal and financial issues[See Page 152; $826,000 OVERCHARGE identified on page 154] are a matter of public record that Blue Marble Materials, owned by a consortium of investors and led by CEO Tchad Robinson, had difficulty paying its bills [most recently Mayfran, but see summary of others on handout]—but the owner did donate regularly to Assemblywoman Cristina Garcia’s campaign coffers – $6,000 between August of 2014 and June of 2017. And found the money to hire the well-connected Mercury Public Affairs Sacramento Office led by former Assembly Speaker Fabian Nunez.
After the donations rolled in, the audit magically rolled out after JLAC received a letter from Assemblywoman Garcia. A video of the JLAC in action provides some highlights.
So why did BMM spend money that it clearly didn’t have to initiate this audit? Could it be a gambit to grab more market share? An attempt to distract others from its own shortcomings? We’ll probably never know. That is why it is rather ironic that the audit itself highlighted the mattress recycling programs shortcomings with nary a mention of employees of the company or claims they are forced to spend long hours manually dismantling the mattresses by hand, and that the technological automation innovations Robinson and his company promises to appear to be a myth.
It’s also public record that an unknown number of used mattresses and materials collected by Blue Marble Materials were burned in a warehouse fire at the company’s City of Commerce location—which is just one of several fires in which Blue Marble mattresses have gone up in toxic smoke. [insert video link and NOV]. Perhaps that’s a metaphor for the companies business model?
The conclusion, even when the state does perform an audit it can’t seem to find the right culprit, or maybe there’s something more sinister about their ineptitude. Let’s focus on the big picture, and the big targets. Let’s take this back to the beginning, time to audit the DMV. Are you listening Ms. Howle? Or should the taxpayers hire Mr. Nunez to get this job done?
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By Craig J. Deluz
CBM Guest Commentary