Meeting on Potential Lawsuit: A Violation of Brown Act

The person(s) responsible for listing the Tax Non Payment issue on the Agenda is in violation of the Brown Act. Classifying the discussion as a "Possible Litigation" is an over reach and a half. Would the city actually fight the IRS and or the Franchise Tax Board in Court. Only in Attorney Harper's Dreams. Now that may be a potential Law Suit, or is it a Criminal Act? An IRS Audit is an Audit, not a Law Suit, did they really think they would take it to a COURT?

A further violation of the Brown Act was not to report when the decision was made to pay for 3 years back taxes. This report of the decision should have been immediately after the closed door meeting, much before the check hit the check register. If the Closeted City Council had decided to not pay the IRS and Franchise Tax Boards the public may have never known about the pending tax problems or accounting practices error of the past.

The City Attorney, Mayor Ferre and City Manager Betsy Adams are responsible to see that the Agenda and the Reporting of Decisions of the Council complies with the Brown Act.

Once again the attempt to save "Embarrassment" has caused more harm than just being honest and open from the one set. Was this face saving action a political effort to hide Mr. Schwab's past managerial incompetence? Mr. Schwab's defence of his actions sure didn't hold water. First he said he disagreed with the IRS.. Well that's good logic... and an argument anyone should avoid in the course of an audit by the IRS. Second he said that the other two cities he worked for didn't report stipends as income to the recipients. This last statement was later found to be FALSE as the two places he worked in the Accounting Departments all said they payed taxes on stipends and reported the payments to the IRS and Franchise Tax Boards.

NOW they half open the file on the matter. It is available if you come in to look at it or it is $16.00 per copy if you want to take a copy home to read. When this may be the most important evidence a voter should be exposed to it should be posted on the City Web Page like all other Minutes, and City Council Packets. Who said what and how each city council member comported themselves behind closed doors is important tot he Citizens who will be asked to vote in the next few weeks. We need to know who had OUR best interest in mind.