Water District Makes No Move to Fire Manager

The most significant occurrences at the Three Valley Municipal Water District’s board of directors meeting this week were the two events that didn’t happen.

The directors did not vote to fire beleaguered General Manager Richard W. Hansen--as urged by the newly elected board president, William Koch--nor did they move to drop a lawsuit filed last year against Koch by the district. Both the personnel review of Hansen and the discussion of the lawsuit took place behind closed doors Monday night in executive session.

Koch, for years a stridently dissident director, was elected president of the board last week with the votes of two newly elected directors. Longtime board members initially expressed worry that Koch had assembled a solid voting bloc that would enable him to wield total control over the board. Much of that fear was assuaged Monday night.

Speculation of Firing

Koch had repeatedly called for Hansen’s firing, arguing that the general manager was responsible for the district’s loss of $1.5 million through bad investments with E.F. Hutton in 1987. When it appeared Koch would become president, many--including Hansen himself--speculated that the board’s new majority intended to fire the general manager.

But new board members Bruce Milne and Paul Stiglich apparently did not share Koch’s desire to dump Hansen. Neither would comment in detail on the board’s discussion in executive session, but both said in interviews afterward that they favor keeping Hansen as general manager for the time being.

Earlier in executive session, the board heard a status report from attorney Art Kidman, who is representing the district in its lawsuit against Koch. The suit accuses the director of “unjust enrichment from public funds,” alleging that he received $4,700 in undeserved fees and expense reimbursements.

In November, Deputy Dist. Atty. Lawrence Mason, who had been asked to investigate the matter by Three Valleys, informed the district that he lacked sufficient evidence of wrongdoing to prosecute Koch.

Although Milne and Stiglich have raised questions about the lawsuit, which has cost the district more than $21,000 in attorney fees so far, the board took no action to dismiss the suit, said William J. Brunick, the district’s legal counsel.

Board members refused to comment specifically about their discussion of the Koch lawsuit.

“I think it’s going to be cleared up in the near future,” Milne said guardedly. “I would hope so, because it’s another black cloud hanging over the district.”

Koch said he believes he will receive an offer from the district to drop the suit in return for his promise not to countersue. He said he would refuse such an offer.

“As far as I’m concerned, there’s no negotiations,” Koch said. “Either I’m a damned crook or I’m not.”

Board member Sandy Baldonado said that Monday night’s executive session discussions, along with another lengthy closed-door meeting last week, have eased her initial concern that Milne and Stiglich would vote in lock step with Koch. Baldonado, along with Muriel O’Brien, had been part of the former board majority that was consistently at odds with Koch.

“I’m very encouraged,” Baldonado said. “I think both Mr. Milne and Mr. Stiglich are extremely open. They’re both quick studies. I’m very encouraged that we’re going to have a board we can work with.”

Said Milne: “I think we surprised some people. We’re not in anybody’s pocket. We represent our areas and we have our own minds. . . . I hope we were able to allay some fears.”

But during open session, Monday’s meeting was not without some friction. Koch, Milne and Stiglich all criticized aspects of the district’s plan to increase the size of its board from five to seven members and realign the territories represented by each member. There will be a special election in June to select the two additional members.

Milne and Stiglich are seeking to alter the boundaries of the areas they will represent while Koch is opposed to a plan to have Baldonado, a Claremont resident, represent northern Pomona.

“I think Pomona’s getting shafted totally,” Koch said. “We’re getting sold down the river, to (have) a Claremont lady, who has no love for the city of Pomona and has expressed that on occasion, representing us for four years.”

Representatives of most of the district’s 15-member water agencies appealed to the board Monday not to tamper with the proposed boundaries, which were approved by the board last year after months of negotiations and compromise.

“All of the member agencies were of one mind,” said William V. Caveney, president of Southern California Water Co. “All the retailers said, ‘Go with what was negotiated.’ ”

Nonetheless, the board will meet today at 7 a.m. to discuss modifications to the boundaries. The board must agree on any changes by Feb. 6, the deadline for submitting a map to the county registrar-recorder’s office for the June election.