-Caveat Lector-
Davis energy team denied pay
State controller says work for Edison is a conflict of interest
By Robert Salladay
Chronicle Sacramento Bureau
Friday, July 6, 2001
Sacramento -- State Controller Kathleen Connell is refusing to pay two
former Clinton- Gore campaign operatives hired by Gov. Gray Davis, even
though one of the consultants dropped his Southern California Edison
contract amid conflict-of- interest allegations.
Mark Fabiani and Chris Lehane were collectively known as the "Masters of
Disaster" for their work in the Clinton White House during various federal
investigations. They also worked for Vice President Al Gore during the 2000
presidential campaign.
Because of their work for Davis, Connell says the contract Fabiani and
Lehane signed with Edison is a conflict of interest under state ethics
rules. Davis is negotiating with Edison on a bailout for the utility.
Late last week, at the bottom of a press release, Davis announced that
Fabiani was no longer a communications consultant because his work had been
"successfully implemented." Lehane, on the other hand, has dropped his
contract with Edison and signed a new agreement with Davis.
Lehane's new contract includes reimbursement for travel and meal expenses,
which he didn't have before, and requires him to work a maximum of 66 hours
a month at $150 an hour. His total payments are capped at $76,000 for work
from June 26 to Nov. 20, 2001.
In his release, Davis said Lehane would be paid the same amount as former
communications director Phil Trounstine, about $9,900 a month. But Connell,
like Davis a Democrat, said Trounstine undoubtedly worked more than 66
hours in a month for his $9,990.
"We don't intend to be paying it," Connell said of the contract for both
men. "They represented Southern California Edison. You have to have a
singular relationship with the state of California and not show a
conflict."
Previously, the Davis administration said there was no conflict because
Edison and Davis wanted the same things out of their negotiations. Earlier
this week, Davis spokesman Steve Maviglio said attorneys had different
opinions over whether the two consultants had violated ethics rules.
Davis spokeswoman Hilary McLean said the governor had signed an executive
order allowing him to enter into consulting contracts with anyone he
believed could help him solve the state's energy crisis. She said Lehane
had been working full-time on public policy, even though his contract caps
his salary.
The National Tax-Limitation Committee, a Sacramento group that mostly
monitors legislation, sued last month alleging that Fabiani and Lehane were
violating the state Political Reform Act because of the Edison contract.
In a recently filed disclosure statement, Fabiani also listed more than
$10, 000 worth of consulting work for Cisco Systems, another company that
frequently brings issues before state authorities, including Davis.
The state Fair Political Practices Commission also is looking into a
complaint filed by GOP Secretary of State Bill Jones that Fabiani and
Lehane violated state ethics rules.
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