RDA and then Where did the 2.3 Million Go?

Friday, September 16, 2011
Page 4 San Bernardino County Sentinel

Grand Terrace Works Out Ten Year Repayment Schedule With SBVMWD

The Grand Terrace City Council this week resolved to return to the San Bernardino Valley Municipal Water District almost $2.3 million in state redevelopment pass-through funds mistakenly credited into the Grand Terrace’s redevelopment agency account two and three years ago.

In 2008-09 and 2009-10, the county auditor-controller’s office, which handles the apportioning of state redevelopment pass-through funds to the county’s cities and various agencies, utilized an incorrect schedule and formula to calculate the amount of money to be shared by Grand Terrace, the San Bernardino Valley Municipal Water District and the Inland Valley Development Agency (IVDA).

The water district was shorted roughly $8.8 million over those two years and IVDA received $6.5 million more than it was entitled to and Grand Terrace received a $2.294 million windfall to which it was not entitled. This spring, after the water district’s finance officer noted a discrepancy between his own calculation of what his district was owed and what it had received, the district’s general manager contacted the county auditor-controller/treasurer’s office. The auditor-controller verified the miscalculation and notified both Grand Terrace and IVDA in May, informing both entities they would need to repay the water district.

The issue was almost rendered moot a month later when the state moved to abolish municipal redevelopment agencies and confiscate their assets. Grand Terrace, however, has agreed to pay the state $2.8 million this year and $670,000 next year to keep its redevelopment agency intact.
Pursuant to a three-month bargaining session with the water district, Grand Terrace officials have negotiated a payback arrangement that will allow the $2.3 million to be refunded to the district in increments over the next ten years.

Gramps Thinks: In 2008/09 Grand Terrace (Steve Berry and The Finance Department and then City Council Members), should have realized there was an overpayment and not used the excess funds and called attention to the error prior to the Passing of the Kill the RDA Law was passed. What are these folks thinking... OH MONEY... during a RECESSION... COME ON.. This sounds like we still have a bunch of people working in City hall that would not return money if the local cashier got the change wrong. I expect better of people who work in go GT. Don't YOU? City Manager Betsy Adams may not have noticed a year to year increase as she was hired after the initial error.

IF the CITY paid back the 2.3 Million could pay the State the funds to continue the RDA? BONDS WERE SOLD.... Sounds like some money shifting going on again... People are not pleased with the shell game being played.

Small Town = Short High Speed Chase = Big Trouble

Grand Terrace couple arrested following vehicle pursuit

Lori Consalvo, staff writer

Posted: 09/19/2011 06:22:41 PM PDT

A couple was arrested for alleged child endangerment and felony evading Sunday night after leading sheriff's deputies on a chase.

Curt Warren, 56, and Cheri Warren, 52, of Grand Terrace were taken into custody and booked at the Central Detention Center in San Bernardino, according to a San Bernardino County sheriff's news release.

The couple was was seen fighting at the Grand Terrace Chevron Gas Station at 22483 Barton Road. When deputies arrived, the couple led them on a high-speed pursuit, which ended at the intersection of Mt. Vernon Avenue and Van Buren Street where the couple's vehicle ran out of gas.

When a sheriff's deputy arrested the suspects, a 6-year-old child was found inside the vehicle.

Read more: http://www.sbsun.com/ci_18930407?source=most_viewed#ixzz1YWiDVkxA

Something Fishy in the Water.

What hasn't been answered in public is why on earth did the City of Grand Terrace spend the excessive payment of 2.3 Million that was paid to it? Let's think about it for a bit. If you go to your bank's ATM and ask for 20.00 and you get 2000000, you are obligated to inform the bank and return the money that is not yours. You don't have the right to go on a shopping spree.

So although a repayment plan has been agreed to, the citizens still aren't fully informed as to what happened to that money we weren't entitled to. Who's pay raise was approved, what project was paid for, what bills were paid, what golden handshake was paid for? If the money wasn't spent, it would be siting in a fund some where ready to be paid back. This is the behind closed doors discussion that the Citizens are not being told.

Let's think back to how many times the "Professional" Finance Department has been the source of problems. The non payment of withholding taxes on City Council Members, the confusion about the Red light Revenues, the unrecorded payments for the sale of city property to city employees, the payment of Schwab's house being improperly recorded for years, and now this use of a significant overpayment. Under who's direction are these decisions being made and the Finance Department just going along with that Management Decision. What were the decussions in City Hall when they found they had recieved a windfall of extra unexpected cash?

This all smells a bit fishy. I don't feel we have gotten all the truth. We can handle the truth the question is, who is being protected from possible legal action for their "error" in judgment when they used funds that they most likely knew the city should have reported as an overpayment.

Questions from the Email InBox:

Pa: Why has the city been hiring so many outside advisers or consultants?

Answer: The expense or the need for outside advisers and consultants goes right back to the troubled management of Tom Schwab and Steve Berry. Because their management and decision making was so flawed, there is no reason to trust an internal report compiled by city employees who were hired by either of the Schwab or Berry. In addition no doubt City Manager Betsy Adams needs to cover her own back as there may be continuing employees with loyalties to Tom Schwab or Steve Berry willing to sabotage a report or staff recommendation in order to make her look bad or liable for a bad representation to the City Council. The City Council's own credibility is in question after being led down the road by bad advise from Schwab and his City Attorney all those years. City Manager Betsy Adams did not clean house so she may not feel the staff hired by Schwab/Berry are up to the professional standards to provide reliable reports and analysis. Given past experience this may be a justified assessment. So the outside consultants may seem to be expensive, but the need for an honest answer and a unbiased professional clearly written report is required at this time.

Pa: How will the payment for the Water 2.3 Mil, and the RDA Fee Payment impact the year to year budget and RDA Obligations? Was there an adjusted Revenue/Budget presented.

Answer: Good question, I don't know but now that the cat is out of the bag there should be a revised long term budget provided to the public and council.

Pa: How long will the old Stater's location be empty?

Answer: Jack Brown/Stater Brothers has a pattern of behavior that leads me to believe that they have a hold on that property and it will remain closed and empty for at least 6 more months. This way they keep out any competition. Their old facility in Colton was held empty until the City of Colton and the property owner found an occupant that would not be in direct competition with Stater's.

Is this fair. No. Having an empty space like that even if they are paying rent to keep it empty causes the other business remaining in that development to be hurt by diminished traffic. In addition it hurts the city by those business having fewer sales and collecting less sales tax. The RDA could have negotiated with Stater's not to have a vacancy hold on their former location during the negotiation regarding the RDA funds provided to Staters. It is not in the City's RDA's interest to have the RDA project hurt the pre-existing businesses as they can put in a claim for lost revenues resulting from the RDA's Action and support for Stater Brothers.

Stater's continues to have people parking on unpaved parking areas... is this what GT RDA paid for? or CalTrans? This is a code violation if it were anywhere else in GT. This is flagrant favoritism being shown to Staters on several levels.

This should go to a LOCAL Company...

The City of Grand Terrace is seeking an experienced, responsible, capable and Professional with proven experience in Park Maintenance.
You are hereby invited to submit a proposal by the Submittal Date and Time of October 12, 2011, at 2:00 p.m., based upon the requirements and conditions set forth in the Request for Proposals.
There will be a mandatory job walk on September 28, 2011 at 9:00 a.m. for all interested parties submitting a proposal.

The RFP can be found at:
http://www.cityofgrandterrace.org/DocumentView.aspx?DID=820

Something May Have Gone Right...in GT

Grand Terrace pays $6,000 to fund community events, lets volunteers do rest

By Ryan Hagen Staff Writer

Posted: 09/15/2011 02:41:43 PM PDT

GRAND TERRACE - The loss of city funding won't mean the loss of city-funded community events such as Halloween Harvest and Community Days.

The city has agreed to pay the Foundation of Grand Terrace the last $6,000 out of a trust - funded mostly by donations and sponsorships - to put on the events and gather its own sponsorships for future years, after approving a budget in June that ended what had been a $52,880 annual expense.

"As a resident of this city, I want to make sure the events that have gone in the past continue," said Sally McGuire, chairwoman of the foundation's events committee on Wednesday. "As we get the monies, we'll be able to make decisions on what events we can and cannot have."

The first definite yes is Halloween Harvest, previously known as Halloween Haunt. It's scheduled for Oct. 31 from 5:30 p.m. to 7:30 p.m. at Richard Rollins park.

McGuire expects to spend $2,000 or less on a Halloween celebration, which according to City Manager Betsy Adams is about half the usual total cost.

But she said the celebration will be much the same as usual, but with less candy - donated by the Grand Terrace Woman's Club - than in earlier years and without carnival-style game booths.

The city's other big annual event is Community Days, held in June.

Beyond that, McGuire said, she wants to hear from community members to see how much money the foundation can raise and which events people think are most important.

All expenditures will be tracked, because it's public money being used.

Councilwoman Darcy McNaboe abstained from the vote because she is the unpaid president of the Foundation of Grand Terrace.

The city had to make the agreement with an official group such as the foundation, City Attorney John Harper said.

ryan.hagen@inlandnewspapers.com, 909-386-3916

Gramp's Notes: For many years now the blog has promoted the idea that the Citizens and Service Groups of GT should be planning and accounting for and hosting the "Events" and not the City Staff. The Funds were ill accounted for by Schwab and Berry, and the events were corrupted into being Political or Power Building Events. Staff Hours were shifted from what their job descriptions were to the Events Planning and Hosting Duties. Having Redevelopment Funds or Fees for Code Enforcement Inspection on Rentals used to plan Events is miss use of funds and a breach of the public trust. It is time that this miss use of funds and "Informal" accounting is not normal operational procedures for our city.

The Foundation of Grand Terrace is a logical service agency to hand these activities to. The Foundation of Grand Terrace is a legal entity, and carries insurance or can be sure that the down line activity sponsor has event insurance if needed. They can also keep accounts clear and not be using City Employees improperly. This will also increase the co-ordination of volunteers within Grand Terrace. Smart solution all ways around.

Will this transfer the planning and building of Blue Mt. Park, and the Dog Park? Can these be developed as Volunteer Projects with Foundation Oversight, with City Planning Approval of course? Minimal City Costs for trash pick up and perhaps water.

In the Past Service Organizations and the Foundation of Grand Terrace started events and eventually those events were taken over by the City... It is more efficient to have the events and special activities and perhaps all volunteers co-ordinates by non- City Management. This will par down the function of the City hall to what it was intended to be when the city became a city. We wanted, service contracts negotiated as a city period. All other activities were and should be citizen supported without City Hall's participation or interference.

In the future let's hope the community is informed about what comes under this new agreement. It is time to step up and support with funds or time or labor those events you think are important to the community.

Transparent as MUD

Grand Terrace agrees to pay off $2.3 million debt over 10 years

Ryan Hagen, Staff Writer

Posted: 09/13/2011 10:01:02 PM PDT

GRAND TERRACE - After nearly five months of closed-door negotiations, the city agreed Tuesday night to pay almost $2.3 million owed to the San Bernardino Valley Municipal Water District.

Grand Terrace learned of the debt in May, after the water district realized that in fiscal years 2008-2009 and 2009-2010, the county Auditor, Controller and Treasurer's Office used the wrong formula to calculate the amount Grand Terrace's redevelopment agency needed to pay to the district.

Despite early agreement on the basics of a repayment plan, details were repeatedly changed because of a law abolishing all California redevelopment agencies - which was passed in June, along with another law allowing cities to pay to maintain the agencies, then stayed by the state Supreme Court - said City Manager Betsy Adams.

"This is an item that's been in closed session a long time, and some ancillary issues still are but we can now report the debt and that the water district gave us 10 years to repay it," Adams said. "It was extremely generous of them to do so, and I think it's important for that to be publicly acknowledged."

The court's stay prevents redevelopment agencies from entering into new agreements, so the council - which also sits as the board of the redevelopment agency - agreed to repay the debt out of city funds.

The debt was discovered as Grand Terrace grappled with a $50,000 general fund deficit. Finances remain extremely tight in the city.

It has long leaned heavily on the redevelopment agency, but moved to issue bonds to develop infrastructure and alleviate that dependency at the same time the debt came up.

That put the city in the precarious position of acknowledging the debt to bonding agents while keeping negotiations details private until now, a dilemma Councilman Bernardo Sandoval said Adams and the council handled perfectly.

"Our city manager made the very conscientious decision that we would not go out for bonds without addressing this issue," Sandoval said Tuesday.

"(Also,) everybody on this council has really been very assertive to report out the items on closed session as soon as we are able. I want to thank my colleagues for that level of integrity and transparency."

The incorrect payment amounts also mean the formula used to determine how much Grand Terrace must pay to retain its redevelopment agency is wrong, factoring into the city's earlier decision to appeal that amount, Adams said.

The Inland Valley Development Agency owes more than $6.5 million to the water district because of the same error, according to county records

GRAMPS SAYS: TRANSPARENT AS MUD

There would be no reason that the above matter had to be resolved behind closed doors. YES this fits in the Can be or May be behind closed doors however, this is the very type of issue that CAN be discussed in public IF the City Council and City Manager wanted to be TRANSPARENT.

Why should we know about this type of negotiation and problem facing the City. Well this issue has an impact on other Council Decisions or Indecision, Actions or Inaction. The public should know what is the issue, what are the complications and what is the progress of the issue as it is being resolved. It is unlikely that the PUBLIC has any control over the out come. It is also a reality that the water district could say pay up now and kill the City of Grand Terrace, but it is seldom in the interest of an agency to kill off it's clients. That would be bad business practices.

When Bernardon Sandoval, Walt Stanckiewitz, Darcy McNaboe were running for City Council Positions they promising more TRANSPARENCY they have not maximized that promises sufficiently. Gene Hays an appointed Council Member also said he believed in transparency. This leave Lee Ann Garcia who no doubt went along to get along.

A debt issue is not a Payroll issue, it is not a matter of National or even City Security. Your a bunch of misguided leaders who think the public is either too reactionary, or too dumb to have these serious financial matters and negotiations in public view as they transpire. This is why the public or the governed does not trust its government.

Let's hope the next election cycle produces a set of Council Members who want true Transparency and will hold all Agenda Items that CAN be discussed in public are in public.

Danger being ignored.

Dear Gramps: Who do you tell?

There is a high risk fire hazard that by all appearances is being neglected by code enforcement and the presumed property owner Cal Trans. The trees, brush, and weeds along the freeway off ramps on Barton Road are ripe for a hot tail pipe, spark, car accident or spontaneous combustion. Of particular concern is the off ramp by the Animal Hospital. If there were fires along the off ramps they could spread depending on the wind conditions.

Gramp answers.

Well, a call to Grand Terrace Code Enforcement or CalTrans may be in order. Perhaps the Fire Station knows how to get the problem addressed. The water to the off ramps may have been cut with the expectation that the plants would be removed during construction. Good eye in spotting a hazard. Good luck in getting it mitigated.

Saying No to Thy Neighbor

Teen and 21-year-old Arrested in Connection with Burglary

The suspects are accused of breaking into a home near their residence.

Loma Linda/Grand Terrace Police arrested two suspected robbers Thursday shortly after the break-in was reported at a Grand Terrace home.

About 10:38 pm, Deputy Daniel Hanke was dispatched to a residential burglary in progress at a home in the 22000 block of Newport Avenue. Officials said a resident confronted the two men who then fled the area.

Hanke and Deputy Jeremiah Cornett arrived on scene within minutes of receiving the call, officials said. Using information gathered at the scene and from witness, the deputies found their suspect, 21-year-old Jesse Hernandez and a 15-year-old Hispanic boy at a neighboring mobile home park. Both live in the park and were arrested at their homes, officials said.

Hernandez was also on felony probation and booked into Central Detention Center for violation of probation and on suspicion of residential burglary. The 15-year-old was released to his parent or guardian pending a court appearance for residential burglary, officials said.

HI All

Know Thy Neighbor

Traffic Stop Turns Into Meth Bust In Grand Terrace

A truck stopped for speeding in the area ends in two arrests for possession of a controlled substance.

A routine traffic stop for speeding turned into a drug bust in Grand Terrace Monday, when two people were arrested for possession of methamphetamine, according to a Riverside County Sheriff’s news release.

A Sheriff’s deputy pulled over a black Ford F-150 on a traffic violation for speeding in the area of Newport Avenue and Grand Terrace Road. The driver, John Cartmill, 61, of Grand Terrace had an active warrant out for his arrest.

During a search of his vehicle, approximately six grams of methamphetamine were located and additional Sheriff’s units arrived to assist in an investigation.

Deputies went to the residence Cartmill rents in Grand Terrace where the homeowner, Belinda Millard, 51, was contacted and a search of her residence was conducted. Approximately one gram of methamphetamines was located along with several items of drug paraphernalia.

Cartmill was booked at West Valley Detention Center for Transportation of Methamphetamines and is being held on a fifty thousand dollar bail amount. Millard was also booked at West Valley Detention Center for Possession of a Controlled Substance and is being held on $25,000 bail.

More on Roring Arrest

Grand Terrace man pleads not guilty to "Virginia Tech"-style terrorist threats

By Jesse B. Gill Staff Writer

Posted: 09/01/2011 05:54:04 PM PDT

A Grand Terrace man has pleaded not guilty to charges that he made threats on his Facebook page that he was planning a "Virginia Tech"-style shooting at Crafton Hills College in Yucaipa, where he is a student.

Stanley Roring, 30, of Grand Terrace, was arrested Wednesday on suspicion of making terrorist threats. He was booked at Central Detention Center in San Bernardino. His bail was set at $50,000.

"It was information reported from someone who is a friend or acquaintance of (Roring's) on Facebook," said Cindy Bachman, spokeswoman for the San Bernardino County Sheriff's Department. "Obviously, it was very alarming once that was read."

Roring pleaded not guilty at Central Detention Center Thursday to one felony count of criminal threats.

The threat was a "general, blanket threat" against the school, and did not lay out specific plans for an attack, Bachman said.

"But he did indicate that (the attack) would be similar to the shooting at Virginia Tech," she said.

Roring also posted messages of impending "genocide" at the school, officials said.

After being alerted to the threat, college police contacted the Sheriff's Department, who moved very quickly to investigate the claims and take Roring into custody.

"At 11 (a.m.), we were notified and by 3 p.m., (Roring) was in custody," Bachman said.

Investigators served a search warrant at Roring's home after arresting him nearby. They recovered evidence at the home but Bachman said detectives won't release details about what they found.

Crafton Hills president Gloria Harrison said college staff was "stunned and horrified" to learn of the threats.

"However, we are gratified at the courage of the person who reported this matter and grateful to the law enforcement officers who resolved the matter so quickly and without any injury to anyone and without any disruption of classes or work at Crafton Hills College," she wrote in a prepared statement.

Roring is still entitled to due process within the San Bernardino Community College District apart from any criminal proceedings, said Alisa Moore, spokeswoman for the district.

"We have already started the process for disciplinary action," Moore said. "Those processes have been initiated, his due process rights will be protected."

Roring has a weapons charge in his criminal record. He pleaded guilty in 2007 to the willful discharge of a firearm in a negligent manner. He was sentenced to 33 days in jail and three years probation.

Bachman said it is likely that Roring may undergo an evaluation to determine his mental state.

"If he was mentally prepared to commit a violent act like this or if he was looking for some attention, he definitely got some attention from law enforcement," Bachman said.

jesse.gill@inlandnewspapers.com, 909-386-3921

Read more: http://www.sbsun.com/news/ci_18808134#ixzz1WmsnXLid