Thursday, March 11, 2010
Cheque Fraud in GT City
Kiting of funds, is illegal. However, most folk who use the float between the time a check is written and when it is cashed to fund a transaction hope and plan on there being funds intime for the transaction to complete. However, in the Case of Ex City Manager Schwab he stated he used CRA Funds to pay for City General Fund Expenditures and had NO INTENTION OF PAYING the CRA back.
This is a form of EMBEZZLEMENT called Paper Hanging. The paper hanger deposits a cheque one time that s/he knows is bad or fictitious into his/her account. When the bank considers the funds available (usually on the next business day), but before the bank is informed the cheque is bad, the paper hanger then withdraws the funds in cash. The offender knows the cheque will bounce, and the resulting account will be in debt, but the offender will abandon the account and take the cash.
Ex City Manager Schwab just had the added advantage of having a CRA and Fiance Department and apparently Attorney John Harpers blind eye and deaf ear to help cover his trail.
Current City Manager Betsy Adams needs to get a new City Attorney, and she needs to sent the entire financial history to the highest authority to investigate the extent of the fraud and abuse. This is the only way to begin to restore the credibility of the Government of Grand Terrace.
Get Back to Important City Business.
OUR State is going BROKE, OUR City has been KITING FUNDS, GOVERNMENT SPENDING be it a CITY, CITY REDEVELOPMENT AGENCY or STATE AGENCY we must STOP USING DEBT to finance "Future Taxes".
We also need to reduce the size of Local Government in the areas that affect our economy the most. CRA "Development Projects" that go beyond the scope of infrastructure such as roads and utilities should be limited to aiding EXISTING Businesses and Homes. There is no justification for a CRA to bring additional blight by causing business to close due to over saturation of services. We don't need to spend any money CRA or Developer Fees or money that falls from the sky on projects like traffic islands, red curbs, and Electronic Welcome Signs...
The City and CRA should be limited to the Necessities only.
There is not an abundance of funds available in the Big Picture. We are not Haiti or even Oakland, or Los Angelus. We should not get money just because we can. We should not burden our future residents with a debt they will have to pay off, "just because we can".
Walt, if some bank said here is a credit card for your store. You have a ceiling of 200,000.00 and you'll have to take 75 percent of your Gross to Pay it back. The Deal will be that if 75 percent of your Gross doesn't pay for it all an "Insurance Company" will cover the difference. Oh and by the way we'll be offering financing to another Pasta Maker that will be moving into a newer bigger facility just down the road. Good Luck Walt. That Banks and AIG love you.
Frank Guzman of Grand Terrace to Run for DA
Guzman pulls papers against Ramos
Written by Administrator Posted March 10, 2010 at 7:09 pm
http://inlandpolitics.com/blog/2010/03/10/inlandpolitics-s-b-county-guzman-pulls-papers-against-ramos/#more-4178
Grand Terrace attorney Frank Guzman has become the second candidate seeking to unseat San Bernardino County District Attorney Mike Ramos.
Guzman, who has been highly critical of Ramos’ personal and professional conduct and its effect on the image of the District Attorney’s office took out nominating papers today.
Guzman will join Barstow attorney Bob Conaway and Ramos in making up the current field of three.
The deadline for filing is this Friday at 5 P.M.
Wednesday, March 10, 2010
Alternative CRA Plan Provided City Council
March 07, 2010
Dear Council Member:
I am writing you about my concerns regarding the staff recommendation to increase the Redevelopment Agency (RDA) debt ceiling to $225 Million by continuing to divert tax increment dollars to fund the debt of mostly private commercial development.
The premise by RDA staff that the tax increment does not raise taxes, is clever language.
RDA’s do increase taxes because the revenue they divert from the general funded local governments is no longer available to help pay for schools, fire protection, nor the City itself that created the RDA Agency. The City of Grand Terrace, is in a parasitic relationship with the RDA Agency. The City is under-funded, in a budget deficit and forced to borrow from the RDA Agency.
The assertion by the RDA Agency that they generate new revenues and jobs is not supported by recent studies. RDA’s cannot quantify their results.
Redevelopment boosters claim the agency is entitled to keep the tax increment, because it was created by agency activity itself. The exhaustively researched Subsidizing Redevelopment in California by Michael Dardia (Public Policy Institute, San Francisco, 1998) disproved this. Thorough analysis showed property tax diversions to be a net loss, and do not "pay for themselves" with increased development.[1]
Increases to the tax increment were attributable to the increased net value of housing. Building new retail centers to generate new sales taxes do not justify the debt load incurred by the city.
Without an RDA Agency in place, any tax increment revenues-generated by the expiration of the existing RDA Agency- would go to the City general fund.
Normal market demand for more retail centers would bring new retail to cities without any incentives. Profit alone is a good incentive for private development. Current market conditions in housing/commercial values negate RDA goals and functions.
The RDA takes the property base for the entire City (as the entire City is in the boundaries of the RDA) and plays “commercial developer.” A role best left for the private entrepreneur. The current plan calls for diverting tax revenues to incur debt, enormous debt. For example RSG Report page 15, Table A-4, clearly demonstrates the costs and burden of debt. All the projects incur a debt equal to proposed project costs.
The City Council needs to meet in a workshop setting including the Auditor-Controller to define the tax base and what the City of Grand Terrace would capture without incurring new RDA debt and by dissolving the agency.
I did a list of projects the voters may want to fund using RDA powers. These costs are only $10Million. RDA proposes $30 Million of new projects. A proposition that will divert $225 Million of tax revenues to projects for costly real estate speculation in the worst housing market in the last century and worst economic decline since the Great Depression.
We are three years out from the RDA Agency losing their ability to divert tax increment dollars to private commercial speculation. I urge you to investigate your options with patience and due diligence. You are the elected stewards of our tax dollars.
Respectfully submitted,
Sylvia A. Robles, MPA
[1] “Redevelopment: The Unknown Government.” Published by the Municipal Officers for Redevelopment Reform (MORR).
The Sun Follows Up On The Miller Resignation
By Andrew Edwards, Staff Writer
Sun Telegram
Posted: 03/10/2010 07:16:52 PM PST
GRAND TERRACE - Councilman Jim Miller, who has been charged a single felony count for an alleged conflict-of-interest violation, has resigned.
Miller's letter to City Hall stated his resignation became effective Wednesday.
"It has been my extreme pleasure serving the community that I love, and it is in that spirit, given the recent turmoil, that I step down from the council," Miller wrote.
"I choose not to be a distraction to my fellow council members, the city and my community any longer, and I appreciate the overwhelming support shown to both Margie and myself," he continued. "I realize the responsibility of this event lies solely on my shoulders and I intend to address it accordingly."
Miller did not return phone calls seeking comment. He pleaded not guilty to the charge in September 2009 and his next court date is scheduled for May 4.
The now-former councilman has been charged with breaking California law intended to prevent city council members from profiting from of their votes.
He is accused of voting to send $18,000 worth of city advertising contracts to a newspaper owned by his wife, Margie. Miller said during Tuesday's City Council meeting that his wife's newspaper would return the money to the city, according to a report published in an inland newspaper.
The city's mayor, Maryetta Ferre, declined to comment on Miller's resignation. City Councilman Walt Stanckiewitz, however, said he doesn't think Miller has gotten a fair deal.
Stanckiewitz said he and city residents want to know if the District Attorney's Office will be as zealous in investigating allegations made against another council member as it has been in pursuing the case against Miller.
A group of Grand Terrace residents sent a letter to the District Attorney's Office in late January that asked investigators to check whether City Councilwoman Bea Cortes also broke the law.
The residents demanded an inquiry into Cortes' votes in favor of $2,800 in city payments to Terra Loma Real Estate, a firm where she had a real estate license.
"They're waiting to see if the District Attorney attorney applies the same principles to the second case," said Stanckiewitz, who also said Grand Terrace politics have become more interesting than they should be.
"It's awakened a lot of residents to the fact that maybe things are not as pretty and rosy as they have been portrayed for years," he said, adding that government doings in Grand Terrace may not be much different than other cities and counties.
The District Attorney's Office is still reviewing the residents' allegations against Cortes, spokeswoman Susan Mickey said.
Cortes said in a telephone message in response to a request for comment on Miller's resignation that she has been advised to not make statements.
Grand Terrace City Attorney John Harper that it is his understanding that Cortes does not actually receive income from the the real estate firm and was not required to have abstained from votes on the payments.
Harper also said he was unaware that the city paid for advertisements in a newspaper owned by Miller's wife until August 2008.
"As soon as I found out, I told him he shouldn't do it," Harper said. "I wish someone would have told me."
The charge filed against Miller alleges that he had a conflict of interest from October 2006 until August 2008.
Miller was elected to the council in 2004 and 2008. City officials have not yet decided how to fill the two-year vacancy left by his resignation.
Read more: http://www.sbsun.com/news/ci_14651075#ixzz0hpxoEMij
City Attorney allowed the payments to be made for several years. While he could be seen playing with his black berry during City Council Meetings. Perhaps, if he was doing his job and paying attention to details he would have prevented this problem. He was made aware of the Cortes Relationship with Terra Loma... long before the Miller Issue came about and yet he remained silent... They even tried to change the record of the participation of Miller and Cortes in the Closed door negotiations that were done with Terra Loma. Miller's wife had rented a temporary desk space in the Same Office, but was in no other way related to Terra Loma. Where as Ms Cortes was a Sales Associate and Advertised under the Terra Loma Banner.
His statement Ms. Cortes was not "Paid" by Terra Loma Real Estate is also legally flawed because payment can be received in ways other than cash or cheque. Ms. Cortes had a business address, a desk, phone service and advertised and was included in Company Advertising. This is of VALUE and thus is a PAYMENT of Sorts. Unless of course Ms. Cortes can prove she paid Terra Loma for these services and use of assets.
The facts in this article are not reported correctly. Ms. Cortes was party to much more money being sent to her Business Associate Terra Loma, than what is stated in the article. The amount exceeds the amount paid to the Grand Terrace News Paper for actual services rendered to the city. She was in on the negotiations where as Jim Miller was not party to the negotiations.
Attorney John Harper said he didn't know... Well he admits to knowing the Millers Owned the Paper. Did he not read the Council Reports or listen to the Public and Council Discussions about local advertising, or review the Check Register? He is either not telling the truth or he is lacking sufficient skills of observation to do his job as a City Attorney.
Tuesday, March 09, 2010
Miller Could Replace Miller
I doubt that she would accept the chair on the council. However, it would be an interesting twist to an already twisted plot.
Let's Hope that Former City Manager Tom Schwab is not appointed as a replacement. He is after all the seed to all the problems the City is experiencing. Remember it was he who trained Steve Berry in City Management. The two of them and the City Attorney John Harper and City Council Member Bea Cortes should all be reporting to the Court House for their part in bringing ruin to the City of Grand Terrace and the inflation of the charges against Council Member Miller.
In The News: Miller Resignation
10:00 PM PST on Tuesday, March 9, 2010
By DARRELL R. SANTSCHI
The Press-Enterprise
GRAND TERRACE - City Councilman Jim Miller abruptly announced his resignation Tuesday night, admitting at a Grand Terrace council meeting that he should not have voted to approve payments of city funds to his wife's newspaper.
Miller, 61, said at the meeting that his resignation will be effective today and promised that his wife, Margie, who owns the weekly newspaper Grand Terrace City News, will return to the city about $18,000 that she was paid for running legal advertisements for the city from Oct. 26, 2006, to Aug. 12, 2008.
Miller was arrested last July on a felony conflict-of-interest charge stemming from his votes to approve payments to the newspaper as part of the council's consent calendar agenda, which contains a number of routine items approved in a single vote.
"I now know that I should have been told to refrain from voting on those items," Miller said Tuesday. "No one ever suggested that I should abstain from voting on those items or had a conflict of interest."
Fellow Councilman Walt Stanckiewitz, who stepped out of his chair and around the dais to shake Miller's hand, criticized other council members for not publicly supporting Miller and laid some blame for Miller's votes on City Attorney John Harper.
"Your hands are soiled in this also," he told Harper, accusing him of failing to "do your homework" before rendering an opinion.
In a report filed in support of the criminal charge, a San Bernardino County district attorney's investigator quoted Miller as saying Harper had told him when his wife bought the newspaper in 2006 that her ownership posed no conflict of interest for Miller.
Harper has since contended that his opinion dealt with whether the councilman's wife could make a purchase within the city-wide redevelopment agency boundary, not with Jim Miller voting on payments to the paper.
Miller said at Tuesday night's meeting that he had provided a copy of the prenuptial agreement he and his wife signed that provided for her to own the newspaper separately. She bought the paper in 2006 and stopped taking ads from the city, Jim Miller said, when she was told that a potential conflict existed.
Details about how Miller's resignation could affect his legal case were unavailable Tuesday night. He is next due in court May 4.
Reach Darrell R. Santschi at 951-368-9484 or dsantschi@PE.com
Just So YOU REMEMBER...
Inland Valley Daily Bulletin - Stephen Wall - Mar 7, 2010
GRAND TERRACE - For the first time in at least a quarter century, the city is on the verge of being left without bus service.
Grand Terrace updates planning guidelines
San Bernardino Sun - Stephen Wall - Mar 4, 2010
GRAND TERRACE - This small town of about 12500 residents doesn't have a lot of room to grow. But how it grows is important, ...
Grand Terrace looking for funds to build new park
San Bernardino Sun - Stephen Wall - Mar 1, 2010
GRAND TERRACE - The city is applying for a state grant to build a three-acre park west of the 215 Freeway. Officials have identified an empty lot on Grand ...
November showdown possible on GT fireworks
Press-Enterprise - Darrell R. Santschi - Mar 3, 2010
Voters will in all likelihood decide whether fireworks are to be banned in Grand Terrace. Torn between youth groups who depend on ...
Investigation misdirected
San Bernardino Sun - Mar 3, 2010
As many citizens are now finding out, city attorneys seem to be above the law. In the case of Grand Terrace City Council members Jim Miller and Bea Cortes, ...
Grand Terrace facing $1.2 million shortage over next 16 months
Press-Enterprise - Darrell R. Santschi - Feb 28, 2010
Grand Terrace will have to cinch its belt tight for the next four months to make up a $423240 budget gap this year and then brace for ...
Grand Terrace has been borrowing redevelopment money to bolster its general ...
Press-Enterprise - Darrell R. Santschi - Feb 22, 2010
The Grand Terrace City Council tonight will begin grappling with a budget crisis that could drain the city's treasury for years to ...
Grand Terrace general plan workshop set for Tuesday
Press-Enterprise - Feb 11, 2010
The Grand Terrace City Council and Planning Commission will hold a joint workshop Tuesday to discuss an environmental impact report for the city's updated ...
CRA to be put on AGENDA. Citizens say NO MORE CRA
Public Speakers at both the Redevelopment Agency and City Council spoke against the continuation of the CRA. The Staff provided a report for its extension with a raised debt level. The raised debt levels would continue to remove funds from the General Fund and put the majority of the funds into the hands of the CRA.
Noted was that past use of CRA has been abusive and counter to the purpose of the CRA. When the CRA build a Senior Center it did not insure it was built to code, as just an example. Further example was the building of commercial businesses adjacent to residential property without providing proper road construction prior to occupancy to the businesses. Commerce Road should have been built Prior to allowing businesses with heavy truck travel on roads built for light residential traffic.
No one tied the location of the Senior Center/Housing a CRA project with the planned termination of Bus Services in Grand Terrace. Because the CRA / Ex City Manager/ CRA Director went against the General Plan and devised a Town Center Plan the Senior Housing was placed in a remote location distant from shopping and existing public transportation. Now that the Senior Housing is occupied the Call A Ride services have increased and the cost to provide them is not something the RTA is fairly compensated for. These riders could have used the 25 bus if they were on Barton Road as the General Plan had called for.
The CRA funds have been co-mingled improperly with the City's General Fund and expenditures have not been accounted for in such a way that an accounting trail can be established to eliminate the possibility of fraud and self interests being served by city managers and employees.
The Citizens are tired of the Shell Game called the CRA. Calls for it to expire and not be expanded were the majority view of the participants.
Angery Citizens Call for More Resignations:
Many Citizens of Grand Terrace called for the immediate Resignation of Bea Cortes, on the grounds that her actions exceed the transgressions of Jim Miller and her abuse of political power and relationships is not wanted in Grand Terrace. Other Citizens Pledged that there will be a new council at the next elections.
The only indirect support for Bea Cortes came from her former business associate Gene Carlstrom of Terra Loma Real Estate. He tried to explain that the 1090 law and case law is like watered down cranberry juice. So some things that may look like a conflict of interest may not be a conflict. So the others on the council who have had business relationships with individuals or businesses in the city may not be subjected to the same legal problems that befell Council Member Jim Miller. Gene Carlstrom owns Terra Loma Real Estate. Terra Loma Real Estate did business with the City of Grand Terrace. Contracts were negotiated behind closed doors, and payments made on the general ledger. All while Bea Cortes was associated with Terra Loma Real Estate, and advertised her self as a Sales Associate / Agent and a Council Member/Mayor Pro Tem. This relationship only recently has changed. Much more money was directed to Gene Carlstrom. Gene Carlstrom who also supported the Maryetta Ferre election campaign.
Many Citizens addressed rhetorically DA Ramos and challenged him to apply equal level of scrutiny and justice to Bea Cortes and Marietta Ferry and any other city employee who has been receiving unreasonable personal benefit from their relationship with the City. The call for RAMOS to do HIS JOB or don't pick on the least of the transgressions.
None of the council addressed citizen's questions. Bea Cortes made no response to the question of her involvement with Jim Miller's Arrest. Walt did not answer the question of what Bea had told him about her relationship with DA Ramos.
Clearly there is more Story to this Story. Clearly the citizens by the power of the vote have to clean house.
Council Member Jim Miller Resigns : Deal With DA's Office
He explained he was operating under the assumption that he was financially independent from his wife as it was part of their prenuptial agreement and how they conducted their personal finances from the onset of their lives together. He also explained that the entire council and the City Attorney knew of his relationship to the City News, and the payments had not been questioned as an issue for over 2 years. When the question was brought to his attention he stopped voting for the payments and the Grand Terrace City News no longer did future business with the City.
The City Attorney John Harper's only advise to him was 2 years late that there "may" be a conflict of interest. It was a non issue until the battle between Tom Schwab and Steve Berry put him between the two fighting bulls, both wanting to be the GT City Manager.
Steve Berry in Concert with Council Member Bea Cortes filed a complaint with the DA's Office and tried holding it over Jim Miller's head to force his support for Steve Berry. When it became clear that Steve Berry was not going to have his way he played his last hand and Called the DA's Office from city hall and had Jim Miller arrested.
How long and what kinds of pressure tactics have been used on the members of the city council all these years? All except for Walt.. have some sort of conflict of interest issue that could be raised. Is this how raises, cars, houses and other perks were negotiated?
When Jim Miller concluded his statement the people in the gallery and all the Council Members and Staff spontaneously stood and showed their appreciation for him and his service.
ALL BUT ONE NOTABLE ONE. Bea Cortes sat silent, Not knowing how to respond to the moment she had a critical part in setting into action. Should she stand and clap like the others. Would that be seen as being happy that Jim Miller resigned? Would that be seen like she was saying ha ha told you so... ? No she sat almost expresionless.
Council Member Bea Cortes received direct and indirect scorn from the Public Speakers and Walt . In addition the City Attorney John Harper received his share of being dressed down. The suggestion of the need for his replacement was made by several individuals. In addition the point was raised that because of his deficiencies as a Lawyer the Millers have had to spend thousands of dollars that the City May be responsible to repay as the City Attorney is charged with keeping the City Council and City Business Legal. His failure to protect the City and the City Council Members should be justification for his replacement and some think loss of his license to practice law.
Later in a very weak statement, Bea Cortes said she "respected" Jim Millers work on the council. She was called a lair and the audience interrupted her speaking several times as none of them felt it was in earnest.
Herman Hilkey's Letter to the Editor..
Posted: 03/03/2010 06:16:44 PM PST
As many citizens are now finding out, city attorneys seem to be above the law.
In the case of Grand Terrace City Council members Jim Miller and Bea Cortes, both received advice from the city attorney advising them there was no conflict of interest if they approved the city of Grand Terrace's monthly check register. Both claimed they talked to the city attorney and received similar advice that there was not a conflict of interest. Now both are facing serious accusations.
The city attorney has washed his hands, claiming he cannot be held accountable for the advice he gave.
District Attorney Mike Ramos is making a serious attempt to clean up "white collar crime" in San Bernardino County, but these two investigations seem injudicious. Mr. Ramos' intent is honorable, but would be better directed toward blatant dishonestly and not small-town, well-intended citizens who volunteer.
HERMAN HILKEY
Grand Terrace
Editor's note: The letter writer is a former Grand Terrace mayor and city councilman.
GrandPa Thinks that the real investigation here is beneth the Miller / Cortes case. The Real Investigation should be into Ex City Manager Tom Schwab and City Attorney John Harper. Did they conspire to entrap members of the City Council in a compromised position so that future "Staff" recommendations and Contract Negotiations would go in their favor? Former Acting City Manager Steve Berry learned this method of Council Manipulation from Ex City Manager Tom Schwab. Berry however lacked the finesse to get away with it as long.
Look at the income increases Tom Schwab/Steve Berry and the City Attorney received. Look at the House and Cars for Schwab. Look at the increase in Legal Fees collected as a result of the bad advise the City Attorney gave to the City then "had to defend in court".
It would be reasonable to pay a flat fee to keep the city out of court and if the city goes to court the City Attorney gets no increased billing hours to bail the city out of a problem he should have prevented.
Grand Jurry Says KILL Redevelopment Agency Deal
Grand Jury Kills RDA Deal in Beaumont.Will the Grand Jury of San Bernardino Kill GT CRA for more extreme abuse of the City Redevelopment Agency?
Perhaps it is time to forward the Grand Terrace CRA problem to the Grand Jury again now that more records are being disclosed. Let's help keep the New City Manager on the Right Side of the Law and good financial practices.
The Grand Jury recommended a Claw Back of Funds. In the case of Grand Terrace the Grand Jury may recommend a Claw Back of Funds that were paid to Ex City Manager Tom Schwab for half of his income, his house payments, and cars purchased for his personal use. He benefited financially from the decisions he lead the CRA and City Council to make which were erroneous use of CRA FUNDS. City Planning and Finance Managers the City Attorney and the Former Assistant City Manager Steve Berry, should also be subjected to Claw Backs as these "Professionals" benefited inappropriately from the "Recommendations" they made to the City Council.
The Claw Back for the "Employees" would reduce their retirement costs and perhaps recover some of the funds that Ex City Manager Schwab said he took from the CRA and loaned it to the City General Fund with no intention of paying the CRA Back. This while the incomes of the Upper management increased, and he received a house deal and several cars.
Monday, March 08, 2010
Blue Mt. Senior Villas Kill Bus 25 Service
In the Sun the representative from the RTA said they are cutting the 25 so they don't have to have Dail A Ride Service.
Who uses Dial A Ride? Senior and Disabled at Blue Mt. Senior Villas who are not on the 25 and must call for a Dial A Ride due to the off the Bus Line Location the EX City Manager and CRA put the Senior Housing.
When this was pointed out... the City's Leaders turned a deaf ear to the speakers.
The article says:
The agency's savings would be largely linked to its Dial-A-Ride costs, he said.
Because it offers fixed-route service, the agency is required to provide corresponding Dial-A-Ride service. Dial-A- Ride is an advanced reservation service for seniors and people with disabilities. Eliminating Dial-A-Ride service along the part of the route through Grand Terrace would save roughly $57,000, Weaver said.
"We are saving costs because we would not be required to provide Dial-A-Ride service in addition to picking up customers along that stretch," Weaver said.
While the demand for bus service was low in the past, city officials say there is a greater need today. The Blue Mountain Senior Villas, a 120-unit senior apartment complex next to the senior center, opened last year. And a new high school is expected to open in the city next year. Officials say the high school and apartment complex are places where many potential bus riders can be found.Read more: http://www.dailybulletin.com/news/ci_14629338#ixzz0hbRvSmP4
Flaws Fiction and Lies in the CRA Plan 6
http://www.cityofgrandterrace.org/archives/38/03092010%20Council%20Packet.PDF
The Biggest Flaw in the CRA Plan 6 is that the presentation does not spend an equal time disclosing the alternatives. What will City Government Look Like without a CRA how will the funds be spent. What alternative actions can be taken to deal with blight?
The CRA system requires GT to go into debt. This is kind of like a Discover Card that gives you a "Discount" or "Rebate" for making purchases with the Card then charges you a high interest rate for the unpaid balance.
How much of the City's General Fund is sucked in to the CRA. How much of the State Taxes we all Pay gets paid to Banks and Finance Companies? Even if justifiable on the local level, it is not at the State Budget Level. Some one pays for the interest.
The Fiction is. Grand Terrace is in need of additional Grocery, Drug, and or other retail that does not increase the total income of the economic pool. The reality is we have a Walmart, BigLots,RiteAid and a Department Store all within 1 mile from our boarders. We don't have a shopping deficiency. The Current Stater Brothers market is sufficient. The claim of no Grocery Store is made in places where people have to drive 5 miles or more to get to a Grocery Store. Some neighborhoods in Los Angeles suffer from a shortage of Grocery Stores for example. Grand Terrace Does NOT.
In additon there is not a shortage of nearby better locations for stores in Colton closer to the 215. There is an Empty K Mart, Empty Albertsons, Empty small retail shops just down the hill from us. Retail Space sitting EMPTY.
It is a FICTION that the Town Center was going to include a stand alone public owned Library. To say such is a LIE. The truth is that the Developer and the City Manger planed for the City or County to Lease a space and have the County Move the Library out of City Hall. Problem is that this was not in the County Library's plan or budget. The City is not funded sufficiently to operate a Library on its own. This is and was pink smoke and lies to justify it as a "Public" development.
It is a Fiction that the "High Crime" areas are Crime Ridden like areas in large cities. There may be higher crime but the type and frequency is minimal in contrast to other cities and so this justification should be labeled an exaggeration of facts and a fiction.
It is a new fiction that a Dog Park is in the Plans by the City. The city has had several opportunities to make a Dog Park and has shown zero interest. Even the Jacobsen Park is not designated as a Dog Park.. Blue Mt, is not designated as an off leash area. This is a political bit of smoke to grasp some political support.
It is a LIE that Grand Terrace will be better off with more Drug Stores that sell alcohol. This will increase Crime. It is a Lie that we NEED a New grocery store or that Stater Brothers is dependent upon a Redevelopment Agency to Build its stores. It is fiction that the CRA will increase incomes and thus the purchasing power of the citizens of Grand Terrace. None of the proposed actions will increase the personal disposable income of Grand Terrace Residents.
What will happen is that existing businesses will fail due to new competition. Existing Commercial Buildings will become vacant. Existing housing stocks will have artificially supported prices and will not be sold at a price attractive to the fixer upper market. When things get old the prices should go down and the new buyer either fixes or replaces what needs repair. With this CRA in place the prices are inflated and supported by the need to have them over valued for tax collection purposes. It is an artificial economy designed to pay bankers, financiers, and developers to be vampires of tax money. They act like giant human ticks sucking sustainability right out of a naturally evolving economy and community.
Big Flaw in the plan to protect the Environment... and preserve the nature of the community. If the CRA is thinking of converting the flood plain along the Santa Anna River it is in violation of both of these stated objectives. First of all the SCE power lines over head limit what can be done on most of that land. Second the 10 to 20 year floods make it great pasture and farm land but limits other uses. Building "Flood Control" is not an environmentally sound idea for that area. The water table rises above that point at times. It doesn't take a wild flood to cause problems for that piece of property. That area should be Agriculture Zoned for a use that requires minimal capital improvements on the land. Plan on the area flooding and work around the floods. That would be the best environmental adaptation.
The CRA and City maintain the right to change the Zone Classification of all and any property in the City without regard to the owners intended use. Your "Residential Zoned Property" can be changed to Commercial and then you have lost some of your power and use of your own property. When the City has a Plan and a Designated Developer it limits the competitive market when you sell your property to a single buyer.
The past is a predictor of the future... The CRA has not been used correctly in the past, the CRA has not helped the economy of GT in the Past. In the Past CRA has been used to be a tool against Citizens and Businesses. There is no reason to think that the Past does not predict the Future. It is time to end the CRA and the Economic and Cultural Abuses it has subjected us to.
Sunday, March 07, 2010
WHY IT IS NOT TIME FOR MORE CRA DEBT....
1. Note Page 15 of RSG Report: Table A-4 provides a hazy numbers that do not add by column the cumulative proposed project cost, debt service (interest payments on borrowing) nor administrative costs. [This Table is Not a Fair Representation of RDA Plan for Debt. City Council should be able to read/understand without using calculator.]
2. Note the most expensive projects are for private sector type commercial projects:
Southwest Commercial Site Improvement--$7.4 Million
Additional Infrastructure Projects (What are these addt'l Projects?)--$5 Million
Town Center Land Assembly: $300,000
Additional Commercial and Economic Development Programs: $7.5 Million
Paw answers: It is not time to increase the size of CRA DEBT for any reason. It is time to bite the bullet and pay off the debt and then go to a Save then Pay Plan for all City Activities. There are ways other than a CRA to fund Existing Housing and Business Refurbishment. Get the City out of the Development Business. Spending 2.00 to get 1.00 of goods and services is not prudent in any economy. It inflates the cost of doing private investment and development thus killing sound private development and business.
The City Council and City Managements goal is to increase the debt and then use that to fund the City Hall Office Staff and City Manager by charging the CRA "Administrative Fees". This paying payroll with Debt Funds should not be allowed under any circumstance.
Read what other EXPERTS HAVE TO SAY:
The next crisis: Commercial real estate
By Jennifer Liberto, senior writer
February 11, 2010: 3:50 AM ET
WASHINGTON (CNNMoney.com) --
A congressional watchdog panel warned on Thursday that mounting commercial real estate losses could endanger the banking system and thwart economic recovery.
A total of $1.4 trillion in commercial real estate loans will require refinancing in the next four years, the Congressional Oversight Panel said in a report. More than half of those loans are underwater, written for properties whose value has dropped like a rock.
More at:
Commercial Real Estate Meltdown
http://shar.es/mHgr4Source: money.cnn.com The Congressional Oversight Panel warns of another looming crisis with commercial real estate loans that are underwater.
Saturday, March 06, 2010
This should be a Issue for the Public not the Council
Grand Terrace council to consider extending life of redevelopment agency
10:00 PM PST on Friday, March 5, 2010
The Press-Enterprise
The City Council will formally receive a report Tuesday calling for extending the life, and the revenue, of the city-wide redevelopment agency.
The council is being asked to extend the life of the agency by five years, to 2032, and to increase the maximum amount of property tax money it can collect from $70 million to $225 million.
The council meets at 6 p.m. in its chambers at 22795 Barton Road.
--Darrell R. Santschi
dsantschi@PE.com
What To Do About the Defective Planning Commission
The Planning Commission is only critical on independent or non city sponsored projects. Then the plans are circulated and nit picked to the point of what trees to plant and the color of paint on the fence.
The City Council has final approval and just as with everything else what staff approves or recommends goes. Tom Schwab lead us down many a bad path with his recommendations. The Planning Commission should have heard the citizens concerns and addressed them. The City Council should have heard the concerns and addressed them.
It may be better to have no Planning Department or Planning Commission at least then it would be fair for everyone.
What to do. Well, if you see a business that is in violation of the CUP or the City Code make a formal complaint and document it. Post it on YouTube. Then ask the city to either eliminate the code that isn't being enforced so that everyone can enjoy the same privileges as the Code Violator. This is the same logic used in the Fireworks debate.
In fact if there are documented reports of violation and there is a loss of life or property on as a result, the business in violation and the City of Grand Terrace will be liable. The City because of its non enforcement of codes.
Any member on the Current Planning Commission should not be elected to the City Council if they allowed the Public to be shut out of the hearing and the full discussion of issues with an applicant. That includes former candidate Doug Wilson who delivered the gag order to the citizens of GT.
Friday, March 05, 2010
More on Citizens Upset with Planning Comissioners
The Clear Message was that if you were to mention such, they would then turn off the microphone and then have you sit down or leave. (This only applied one direction though the out of town supporters of Swartsfinger were allowed to say how great the current facility and operations are and how much improved they are from past practices and facilities.
Now the day after the meeting there were trucks lined up out front of the Swertfingers service this early morning. There was no reason not to approve the application, because of past conduct is not a predictor of future conduct.
There is yet to be another review of the applicant's compliance (or progress) scheduled for June of July of this year. Citizens should be allowed to speak and update their observations of the operations and compliance with the CUP directions.
Eventually the City Council will be asked to approve the CUP but their pattern of past conduct will indicate that the Public will be allowed to speak for 3 minutes and be duly noted, and then they will rubber stamp the Planning Commission's findings and the staff recommendations. Perhaps it is time for the only way citizens have a voice in environmental matters do I hear a law suit being filed?
Planning Commision Gags Public during CPU Hearing.
Paww...Where to Get the San Bernardino County Sentinel
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To obtain your free electronic version, all you have to do is
contact us at 909-946-0900 or SBCSentinel@yahoo.com
and provide us with your email address, name and city of residence.
We will then make sure you obtain a copy of the Sentinel that can be downloaded and read right at your home at your convenience on your computer screen.
GT City Manager Seeking a Legal Opinion on "RDA Loans"
The new information was in the last paragraph of the article. City Manager Betsy Adams is reportedly seeking a legal opinion on how to proceed with this issue, and looking to get back to the council with the answer as soon as possible.
Let's hope she is looking beyond the legal advise of City Attorney Harper, hired by Schwab and continued by Berry. As a City Attorney he has allowed and in some cases participated in activities that he should have been advising the City Council and Members of the City Staff that they were not in compliance with State Law and Regulations.
Let's hope that the process includes a recovery of all of the income and houses and cars or other perks, Mr. Schwab and Mr. Berry received because of funds "Loaned" to the City's General funds. This would be called a Claw Back. Let's hope that it includes the Claw Back of Legal Fees paid to City Attorney Harper to defend the City and the RDA against his bad advise. The RDA in particular can not be involved or pay for legal actions. Yet funds were no doubt used for this purpose.
Finding where the money went will determine where the money can be recovered.
Walt Stanckewits was quoted as saying he was not sure whether the problem was created through mismanagement of funds or slight of hand.
Good luck City Manager Betsy Adams. Keep after this issue and you'll be exactly what GT Needs in a city Manager.
GT is a small town. We need real employment for our citizens. We don't need more stores that pay minimum wage. We need affordable housing for people who do work for minimum wage. We need Agriculture Parks that are public owned and leased to farmers for a share of the income. We need our full property rights restored to home owners and businesses. We need to have a city staff that earns about the same as the average citizens not a Royalty paid for by us peasants. We need the working city employees such as the teachers at the day care, and the people on the lowest end of the pay scale to have sufficient incomes to live in GT. The distance between the lowest paid GT Employee and the highest paid is a gross economic injustice.
What we don't need is an empty KMart kind of RDA Development. Look at the RDA Developments just down the hill. They don't work, we don't need to repeat the same error. Development should be a slow and natural process not the Big Development single Developer Promoted by Tom Schwab and Steve Berry.
RDA IMPACT ON CITY GENERAL FUND
In summary the City General Fund would benefit without increasing the debt limit of the RDA. (Writer bases findings on Council packet for March 9, 2010 Meeting.)Revenues going to the RDA without Amendment 6 decrease while city general funds increase. So the problem of borrowing between entities would not be necessary.
The only incentive for leaving the city general fund with very limited funds is to be able to spend hard-earned tax dollars on private commercial enterprise such as the Town Center.
Staff states the city is in a dire state because we have one outdated shopping center. We have a Stater Bros just down the street in Colton.
Staff states private enterprise cannot invest in Grand Terrace without RDA Agency help. Look at the empty K-mart down the hill; if private enterprise needs government help it is not a viable project.
Another example down the hill is the large former Albertson's Supermarket; it is now a Big Lot's and the pharmacy that was there is vacant-and long before the "Great Recession."
Staff state we have only one medical facility--an urgent care-- and we need more. Most of us lucky enough to still have jobs or able to pay for health care must travel to our provider, such as Kaiser- who has more than enough new facilities currently built or being built.
My next posting will be on the debt. Staff states that the City does not incur any debt. The Agency does, I thought the City Coucil was the governing board for the City and RDA because the entities are the same really. The RDA encompasses the entire City.
To qualify for debt you must prove you have a predictable stream if tax revenue to cover the debt. If the City and other local government give up tax revenues to go into the RDA Bank of Banana Republics--who pays--of course the taxpayer.
More Email On The Big Issues. Debt and Fireworks and Fiction
A few years ago I had to fight a fireworks caused field fire. It endangered five homes. I called 9-11 for the Fire Department and was put on hold. My hose and water pressure would not reach far enough to stop it from spreading to three of the houses. Thankfully the Fire Department arrived after several minutes. They had enough water pressure to reach the fire, it's a good thing they did, because their hose was not long enough to reach the whole of the blaze either. If you will recall the fires of the past season. Some homes burned because there was not enough man power, equipment or water to put them out. If the field fire had been in the Mayors neighborhood you know this would have been a "special agenda" item and the sale of fireworks would have been over turned. A couple years ago Blue Mountain burned over to Reche Canyon because of fireworks. What will it take, the loss of home and life? It will be of little consequence that children got to play soccer when you are looking for a place to live because your house, along with it's contents, no longer stands.
When the Council wants to throw a party with fine wine, furnish a home and car to the former City Manger, or give him a retirement "bonus" package or fund trips to the League of California Cities seminars in San Diego they have no problem finding money.
One other item in response to the "Peaker Plant" that will not be built. The only benefit to Grand Terrace would have been financial. The RDA would have been the only beneficiary. The power it would have supplied would have gone to the Los Angeles grid. Grand Terrace would not have received one nano-watt of power. Just the pollution.
Thursday, March 04, 2010
Council Unable to Decide For Safety
The Grand Terrace City Council can't decide to protect the community from the hazards of fireworks or the past proposed power plant close to a high school.
The City Council more than willing to pay Doug Jacobsen for property that was supposed to be used to replace Low and Moderate Income Housing Destroyed in his failed Development Scheme that forced people to sell their land to a single buyer, (a closed market) that has reduced the income taxes and sales taxes and property taxes collected by the City. The City Council should not reward Doug Jacobsen for his abuse of our community. There are alternative City Owned Sites for a park.
The City Council seems to be willing to increase the City Redevelopment Agency Debt to 70 million and extend the existence of the City Redevelopment Agency in order to support the function of the City's General Fund. Ask what has the CRA done for you? Isn't it time that the CRA choke hold on individual rights and use of property be eliminated in Grand Terrace? Isn't it time that the City of Grand Terrace live within its budget and not pay employees with borrowed CRA Money?
FROM THE NEWS PAPER
10:00 PM PST on Wednesday, March 3, 2010
By DARRELL R. SANTSCHI
The Press-Enterprise
Voters will in all likelihood decide whether fireworks are to be banned in Grand Terrace.
Torn between youth groups who depend on fireworks to raise money and residents fearful for their safety, the City Council voted last week to have staff members draft a proposed ballot measure for the November election.
In a written report to the council, City Manager Betsy Adams said the youth sports programs who rely on fireworks sales as their biggest fund-raisers of the year - the Grand Terrace Little League and the Grand Terrace Community Soccer Club - had rejected offers for the city to eliminate a $5-per-child fee for use and lighting of city fields in exchange for giving up fireworks sales.
Supporters of both groups have argued that without fireworks sales in Grand Terrace, residents will flock to other nearby cities to buy them.
"You cannot protect people from bad decisions," soccer club
Treasurer Teresa Gray told the council. "People do stupid things no matter what laws you pass to protect people."
In response to questions from council members about what the youth groups are doing to raise money, Eileen Garza said Little League players are only allowed to participate in one fund-raiser a year and that 24 businesses donated $150 each to the program.
About a dozen people spoke for and against a fireworks ban at last week's council meeting.
Resident JoAnn Johnson said she opposes the sale of fireworks.
"My major concern about the fireworks is for the pets," she said. "I will be at the front of the line when an effort is made to raise funds from the public."
"My basic concern is the fire danger," Ann Wade Hornsby said, arguing that families can go to public fireworks shows and attend picnics on the holiday.
City Councilwoman Bea Cortes quoted a petition she said the city had received with the signatures of 40 people who favor a ban on fireworks.
Councilman Walt Stanckiewitz noted that the city had not looked for alternatives to selling fireworks for 13 years and that the community is deeply divided on the issue.
At his urging the council voted 4-0 to allow the sale of fireworks this July even if the question is put to voters. Councilman Jim Miller abstained.
At the urging of Mayor Maryetta Ferre, the council voted 4-1 to create a safety zone around Blue Mountain where fireworks would be prohibited. Stanckiewitz cast the dissenting vote.
Reach Darrell R. Santschi at 951-368-9484 or dsantschi@PE.com
OPINION:
Mayor Maryetta Ferre lives in the "Safety Zone" she is protecting her own property while not able to protect the rest of the community. At least Stanckiewitz saw that protecting some citizens is a flawed public policy. He knows that if a fire starts anywhere in Grand Terrace we are all at risk. House to house fires spread in Santa Anna Winds just ask San Diego and Orange County Residents.
The Claim by Team Treasurer Theresa Gray that People will do stupid things regardless of the laws to protect them indicates that we are all lawless as a community and fails to understand that allowing fireworks ENCOURAGES Stupid Behavior and Endorses it and even PROMOTES IT. This causes an increased liability to the City and a risk to all households in the community.
The Teams and the City have gone year to year with no intention to stop the sale of fireworks. The Children don't participate in the Sale of Fireworks, that would be breaking the LAW. Perhaps the Parents could do one or more replacement fund raising activities and the Children could actually help earn their entertainment in a way that would benefit them and the community.
Good News: GT High School Will Breath Easier...
We do need industry and power in Grand Terrace. The placement of the high school in an industrial zone was questionable and will limit any real opportunity for industrial or commercial employment opportunities sufficient to build a sustainable community. However, it is good that the Energy Folks in Sacramento have our student's health in mind when our own City Council did nothing to protect the students after they pushed the location being adjacent to a Power Plant and an area of High Grove that is zoned Light Industrial and Manufacturing, and let's remember the Rail Road Tracks.
Well it is almost a done deal. Let's hope the toxins from the metal plating company don't come to the surface as a result of rains wicking the toxins up to the surface.
Tuesday, March 02, 2010
From the Email Inbox: Jacobsen Bail Out
Jacobsen has made a nice about of money for destroying the neighborhood and turning the residents against one another. The "Redevelopment" has torn down the community and its sustainability and Jacobsen puts money in his pocket.
That is just wrong every way you look at it.
Where are the replacement homes and the customers lost?
Monday, March 01, 2010
HOLD THE MONEY>>> NO JACOBSEN BAIL OUT
Stephen Wall, Staff Writer
Posted: 03/01/2010 05:32:48 PM PST
San Bernardino Sun
GRAND TERRACE - The city is applying for a state grant to build a three-acre park west of the 215 Freeway.
Officials have identified an empty lot on Grand Terrace Road between Barton Road and Vivienda Avenue for the proposed park.
The City Council passed a resolution last week in support of the grant proposal.
The city is applying for funds under Proposition 84, a bond measure approved by California voters in 2006.
"Our chances of getting the grant are very good because we do not have enough active parks," Councilwoman Bea Cortes said.
The city will know in September whether the request is approved.
"We are going to proceed with caution," Councilwoman Lee Ann Garcia said. "We are going to see if we are fortunate enough to get the grant. If we get it, we will have to revisit the idea to make sure we have the resources to maintain it and meet the needs of the surrounding neighbors."
The city plans to seek about $1.3 million to pay for land acquisition, design and construction.
The $50,000 annual maintenance cost would be a city expense.
The park design calls for water-efficient irrigation systems and drought-tolerant landscaping.
Possible amenities include a playground, walking path and sport courts.
HOLD IT A MINUTE:
How Much is Doug Jacobsen's Cut for the Land? I am against paying him more than 1.00 for the land he should have developed into low and moderate income housing he removed, on Barton Rd and Michigan. 1.3 Million will not cover the needed road repairs of Grand Terrace RD. Nor will it pay for the required sewage connections, restrooms, and all that will be needed.
In addition, where will the operations funds come from? Will the park have security cameras, monitored by who? Will the park have lighting to be paid for? Will the park allow dogs?
The city and the RDA already own property why not use grant money to develop a park on already owned property?
Why build a park where the Freeway Expansion may take a portion if not all of the park's usefulness? Do you want your kids playing adjacent to an off ramp?
If the grant is approved there should be an investigation all the way through the process to see how Jacobsen Pulled this off. The State has no money, and the city has no money to do this development right. The only one getting something out of this deal is Doug (Threaten you with Eminent Domain via Schwab) Jacobsen.
Conditional Use Permit Review March 4
THURSDAY, MARCH 4, 2010 at 6:30 P.M.
Grand Terrace Council Chambers
22795 Barton Road, Grand Terrace
Review of Conditional Use Permit (CUP)
SWERTFEGER’S EQUIPMENT, INC.
12438 Michigan Street, Grand Terrace, CA 92313
www.swertfegers.com
“Should Their Permit Just be Modified or Completely Revoked?”
This Business has a Long History of Code and Ordinance Violations, and has Demonstrated a General Disregard for the Safety, Health and Well-being of the Community
Numerous expired permits and expired extensions over the last ten
years.
Some fees were waived that other developers are normally required
to pay.
Parking spaces rented out to other truckers in violation of zoning
- no permits.
Important information for this project’s approval was not all accurate.
Never paid property taxes for years on any improvements.
Complaints regarding truck traffic, fumes, noise, and unsightliness.
Storage/use of hazardous materials, and it is not always in compliance with their emergency business plan, which is designed to protect the public.
No new environmental review before 12,000 sq. ft. building expansion (2006).
Illegally occupied 12,000 sq. ft. expansion without a Certificate of Occupancy and without the required fire sprinkler system.
Groundwater threat to a domestic well (repairs were allowed outside).
Some vehicles were parked on pervious surfaces and/or illegally on street.
Illegally operating in C-2 zoning without a CUP – which was required in 1984 when this business began, and also when zoning changed to CM in 1990.
Not approved for a CUP until 2001 when other permits and all licenses for prior years did not appear to exist.
Michigan Street will be one of the main streets that everyone will be using for our new High School.
It is already over crowded with trucks and all kinds of other traffic.
This kind of business should never have been approved right across from a residential area.
This Kind of Special Treatment has to STOP!
More on Schwabish Leftover Budget Problems for GT
10:31 PM PST on Sunday, February 28, 2010
By DARRELL R. SANTSCHI
The Press-Enterprise
Grand Terrace will have to cinch its belt tight for the next four months to make up a $423,240 budget gap this year and then brace for an $800,000 shortage in the fiscal year that begins July1.
City Manager Betsy Adams told the Grand Terrace City Council this week that new construction has ground to a halt, sales tax revenue has plunged and earnings on the city's investments have dropped more than expected. All of this, she said, is the result of a slumping economy in a community of 12,500 people. (She is understating the problem with the "Loans" not being accounted for and the Schwabistic Financial practices of the past. Perhaps she hopes to get continued assistance from Schwab Loyalists in City Hall. Good luck with having the Finance Department help untangle the mess of accounting practices used by Schwab and Berry for their shell game.)
The council met with city staff members in a budget workshop before announcing at their council meeting Tuesday night that cuts are coming.
In a written report, Adams said she will freeze spending on all but the most "mission critical" expenses; that department heads will have to gain her approval for spending more than $500 on anything; and there will be a freeze on hiring.
She said the city will look for ways to cut costs of services provided by outside contractors. That will not include the city's contract with the San Bernardino County Sheriff's Department, which is expected to increase next year.
Adams will also meet with city employee groups to discuss "labor savings." Even with all of that, she warned, the council will likely have to dip into its general fund reserve to balance the budget.
That could be especially painful, the council learned, because its $3.7 million reserve in a fund that pays for most day-to-day city services will be taking a $2.6 million hit to guarantee repayment of money placed in the general fund for more than a decade that should have gone to the citywide Redevelopment Agency.
Adams told the council that she has not yet determined details of the funding mix-up, but that by putting the reserve money on hold and treating it as a loan, "The city would be recognizing that part of the city owes money to itself." (This may just save Schwab and Berry and others from going to jail.)
The comment prompted a question from the audience later in the meeting.
"What does the statement 'We owe ourselves money' mean?" resident Charles Hornsby asked. "There is either money there or there is not."
Adams said in response that tax money that should have gone to the Redevelopment Agency, which pays for low-income housing programs and infrastructure construction, was placed in the general fund.
City Attorney John Harper said by phone after the meeting that San Bernardino County, which collects taxes, had sent checks to the city without specifying that the money was for the Redevelopment Agency.
"It was a long time ago," he said. "I don't even know if the law was particularly clear when the Redevelopment Agency was formed." (He is Paid Well to KNOW)
He said the money accumulated in the general fund, building as a reserve, and that "nothing nefarious" went on at City Hall. The error was discovered by a financial analyst handling a redevelopment program involving the city, he said. (Doesn't this sound like the same explanation given for the Red Light Funds? Did he nor the finance department ever learn from past experience or perhaps they did learn?)(He is still working for Schwab and not the City Council or City. He should be off the city's dime.)
Harper said the $2.6 million is now being treated as a loan until the city recovers enough financially to pay back the Redevelopment Agency.
Councilman Walt Stanckiewitz said he is still not sure whether the problem was the result of "mismanagement or sleight of hand."
"In terms of what it was used for," Adams said, "we don't really know." (Lack of documentation by Schwabish Finances is a management problem and may be intentional criminal activity to hide payments for things that were to benefit Schwab himself. Cars, House, and increases in income.)
Most of the money was received in the 1990s, although a part of this year's deficit is $155,725 of redevelopment money that was to have been credited to the general fund.
"We are not happy with what has gone on," Councilman Jim Miller said at the meeting, "and we are trying to fix it."
Reach Darrell R. Santschi at 951-368-9484 or dsantschi@PE.com
Recall Ex City Manager's Statement: HE knew what he was doing and he had no intention of the City Paying it back.
Mr. Harper should be replaced as the City Attorney. The law and code states that the CRA can not loan money to the City, it can make investments of funds not yet used with REAL Investments that should be very secure and repay the CRA with interest and secured principal. Mr. Harper should have known that then and now. He took part in selling the debt bonds after all. His service contract should be the first to go. Then there should be a complaint filed against him with the State Bar.
CUTTING BACK
Grand Terrace City Manager Betsy Adams announced measures to fill a $423,240 hole in the city's general fund budget for the fiscal year that ends June 30.
Among them are:
Freeze spending on all items not deemed as "mission critical" by department heads.
Require city manager approval for any purchase over $500.
Freeze hiring for vacant positions with benefits.
Require approval of city manager on hiring temporary employees.
Evaluate whether general fund expenses can be charged to other city funds.
Review contract services, excluding law enforcement, to determine if a more cost-effective method is available.
Review major revenue sources to be sure they are being fully collected and accurately estimated.
Meet with employees to discuss labor-saving alternatives. (The City Manager should take the lead and reduce her own compensation contract by 30 percent.)
Use general fund reserves to make up the difference. (This will leave very little General Fund Reserves.)
Schwabism's fictional "Reserves" have evaporated. Citizens have been warning of this day long before the recession. Making more debt available to a group of this type would only continue the abuse of CRA Funds and Intended Function. This is not how a city is supposed to finance its self. Adams will earn her credibility if she and Jim and Walt can get GT on the proper financial practices and standard accounting practices. Then the CRA can wind down and end in 2012 as planned. Allowing the Planning Department and Finance Department with additional Debt Generated resources should not be what GT should do.
Sunday, February 28, 2010
HEADS UP... It is time to Drink Tea GT...
City Employees who work in Planning Department or any other city function should be available to the CRA but not on the CRA's Payroll. IF there is a need for employees of the CRA they should have been paid for as CRA employees not the way Schwab took what was needed when he needed it. How much of those funds were used to pay for his house, his car, and other non CRA related activities? Apparently he kept such bad records the funds taken can not be reconciled with how they were used. In addition, if his overspending of General Funds on his pet projects, contractors and developers and personal privileges and parties he may have been able to balance the budget.
Current City Manager Betsey Adams has her work cut out for her. She'll need all the help she can get from Jim and Walt. It is clear the ladies on the council will continue to function as if Tom Schwab is the City Manager. Let's hope that Adams takes the aggressive and financially correct actions needed and Jim and Walt can perhaps help one of the others to grasp the need to have a balanced budget, and not be party to any future raiding of CRA assets.
In addition, the expanding of the Debt to Fund City's General Fund should not happen without a Public Vote. The CRA would have to be extended and the debt level increase requires a PUBLIC Vote not a vote of the City Council.
Friday, February 26, 2010
RDA's with Schwabish Management Kill Cities..
The Truth Debts owed to or by the RDA will transfer to the City. So the debt bonds that were sold to provide the funds that the City then spent will eventually become Debts of the City. Schwab is blowing smoke and as he does he has possibly admitted to intentional fraud.
He made representations to the bond purchasers, and to the city council that were intentional misrepresentations and apparently continues to do so.
Citizens did read the Financial Reports and called attention to the problems as they could be pulled laboriously from the intentionally obstructive financial and accounting system Schwab used to account and report the city finances. The Citizens were told by Schwab, you don't know how to read Financial Reports. Council Members did not direct him to answer the questions, or make the reports and facts clear. They all just followed along with staff recommendations.