Jockeying to Take Reins in San Diego

Embattled Mayor Dick Murphy may have announced his resignation, but the turmoil gripping California’s second-largest city is far from over.

For starters, Deputy Mayor Michael Zucchet, who says that he is ready to assume Murphy’s duties when his resignation becomes effective July 15, has troubles of his own. Starting next week, he and another council member are scheduled to go on trial on charges of taking illegal campaign contributions from the owner of a strip club.

And would-be mayors are not so subtly jockeying for position.

Like any big city, San Diego has had its share of problems and scandals, but nothing like the last two years, including the “stripper gate” case in which council members Zucchet and Ralph Inzunza were indicted, as well as Charles Lewis, who died awaiting trial.

Murphy’s announcement Monday that he intends to quit to allow the city to get a “fresh start” was just the latest in a string of surprising announcements.

“We have a city that wants to be big league, but we don’t have a big league City Council,” said Carlos Batara, a local criminal defense attorney. “It has to get better, because it can’t get any worse.”

Two federal investigations are looking into the city’s pension system, which is running a deficit approaching $2 billion. Federal officials served subpoenas requiring documents and testimony from city officials.

Murphy is the third major official to leave his post because of the controversy. City Auditor Ed Ryan abruptly retired and City Manager Michael Uberuaga was forced out.

Voters endorsed two reform measures on the November ballot and elected City Atty. Michael Aguirre, a longtime critic of City Hall. Aguirre immediately launched several investigations and began criticizing the City Council and mayor.

The council, where civility was once the rule, is now engaged in incessant bickering with the city attorney, who has said the council members and key city staff may be guilty of securities violations by hiding the bad fiscal news from Wall Street.

For a city that once prided itself on fiscal prudence and consensus leadership, and still boasts that it is “America’s Finest City,” it’s been a fast and furious fall from grace.

“The hits just keep on coming. We’re sort of in a state of shock at this point,” said Lisa Briggs, executive director of the San Diego County Taxpayers Assn.

Federal prosecutors say that Zucchet and Inzunza took several thousand dollars in illegal contributions from the owner of Cheetahs Totally Nude Club in exchange for promising to change a city law to let nude dancers sit on patrons’ laps while seeking gratuities. Zucchet said he expects to be vindicated at the trial before Murphy’s resignation takes effect. Under the City Charter, the council can either appoint a successor or call for a special election, possibly linked to a statewide ballot in November.

So far, Councilwoman Donna Frye, the outspoken co-owner of a surf shop, is the only announced candidate.

Her supporters believe she was unfairly deprived of the mayor’s job in November when a judge ruled that several thousand write-in votes for her were invalid. If those votes had been counted, Frye, a Democrat, would have defeated Murphy, a Republican, in his reelection bid.

Frye said that as troubled as San Diego may seem, there is a bright side. The controversy, she said, is a sign of reform in action.

“It’s one of those mixed blessings,” she said. “It creates some immediate turmoil but on the other hand it provides a resolution to a lot of problems.”

Frye has called for the council to schedule a special election to fill the vacancy. By law, the council has 30 days from Murphy’s departure to decide whether to appoint a successor or set an election date.

Councilman Scott Peters, who wouldn’t say whether he has mayoral aspirations, suggested that an interim appointment might be preferable.

“The last thing we need is the foment of an election,” he said. An appointment could last until the 2006 election, the next scheduled city election.

Among those being considered were Councilmen Peters and Brian Maienschein, Rep. Bob Filner (D-San Diego), car dealer and Port Commissioner Steve Cushman, Assemblyman Juan Vargas (D-San Diego) and former Police Chief Jerry Sanders, now the board chairman of the local Red Cross.

County Supervisor Ron Roberts and banker and redevelopment leader Peter Q. Davis -- both of whom have twice lost to Murphy -- were among those deciding whether to seek to become his replacement.

Newly elected City Atty. Aguirre, who had called for Murphy’s resignation, told reporters he will not be a candidate.

Republican Party leaders say that they plan to interview prospective candidates May 9 so the party’s central committee can back a single contender to succeed Murphy.

“The wrong person in the mayoralty of San Diego could be devastating to the San Diego business community,” Chamber of Commerce official Mitch Mitchell said.

Because of its plummeting credit ratings, the city is blocked from selling bonds to reduce the immediate impact of the pension deficit.

Murphy, 62, a retired Superior Court judge, was faulted for his low-key, detail-oriented style.

Even supporters became dismayed that he was not forceful in demanding cuts in pension benefits to keep the deficit from swamping the city budget. His disputed victory in November undercut his legitimacy as mayor.

He had been slow to realize the enormity of the pension deficit. Even after the stock market decline, he continued to support a plan in which the city underfunded the pension plan, preferring to avoid making cuts.

Now large-scale cuts, even layoffs, could be possible unless the city’s financial house can be fixed. Murphy has called for increased city payments and a cut in pension benefits but his critics say his delay put the city in a precarious position.

Twice in the past two decades San Diego has been without a mayor: In 1983, when Mayor Pete Wilson resigned after his election to the U.S. Senate and in 1985, when Mayor Roger Hedgecock was ousted after being convicted of perjury and conspiracy.

In both instances, the city government appeared to function smoothly while special elections were held. John Kaheny, a retired deputy city attorney and frequent critic of Aguirre’s assertive style, said he worries that the city “will now have a lame duck mayor, in one form or another, until perhaps November.”

He doubted that either Murphy or Zucchet will have much time or energy to devote to issues of how to transfer power from the city manager to the mayor under a measure endorsed by voters to make the mayor a chief executive, like many major cities, with hiring and budgetary authority.

One result of the City Hall drama may be a decline in respect for local government.

Mark Miller, the manager of a downtown restaurant, said San Diego’s lifestyle is second to none in Southern California, but its civic leadership is laughable.

“By far, San Diego is the nicest city I’ve ever lived in,” he said. “But we can’t seem to get anything right.... It’s just a big mess.”