The company, which was paid at least $790,000 by the Los Angeles County water district, was created three days before a deadline to submit proposals for a contract, records showed.
Central Basin Municipal Water District is a public water wholesaler with few of its own employees. It serves nearly 2 million people from 24 cities and unincorporated areas in southeast Los Angeles County, with its boundaries stretching from La Habra Heights in the east to Carson in the west and from Signal Hill in the south to Montebello in north. The board is made up of seven members, four of whom are elected and three of whom are appointed by the agency’s customers.
A staff report at the time states all four groups that submitted proposals were invited for an “interview with the General Manager and two staff members.” Rojas recommended Capstone and a second company, Cummings Management Group,, for the contract based on their “background, experience and quality of their work,” according to the report.
Central Basin struggled to get bidders, even after Rojas personally approached several companies in the industry to ask if they would be interested in bidding. He did not ask Del Terra, he said, because they did not “know water.” “Unfortunately, we have a board majority that hasn’t carried out their fiduciary duty to look into these very, very serious matters, including the fact Del Terra was essentially doing business and getting money out of Central Basin through this company called Capstone,” Vasquez-Wilson said.
Viramontes managed the engineers and other subcontractors that were sent out to cover the various jobs requested by Central Basin, according to Jaramillo.
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