Sunday, February 28, 2010

HEADS UP... It is time to Drink Tea GT...

Schwab and the Finance Department should all be investigated for intentional fraud of the CRA. Reading of the California Code indicates that funds can go from the City to the CRA but it does not allow for any funds or loans to flow from the CRA to the City.

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..

Ex City Manager Tom Schwab said: "My intention was to borrow it and never pay it back," Schwab said. "When the redevelopment agency expired, the debt would expire with it."Schwab said the redevelopment agency was chartered for a set number of years and then would fade into oblivion. The city would then have the option of chartering a new redevelopment agency or going on without one. With the closing out of the existing agency, any money owed to it would become a moot issue.

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.

San Bernardino Sentinel Covers GT RDA Money

San Bernardino County Sentinel Friday, February 26, 2010

GT RDA Money Funded City Operations for Two Decades

The city of Grand Terrace has accumulated a debt of more than $4.6 million in loans outstanding from the city’s redevelopment agency over that last nineteen years, according to city manager Betsy Adams.

Adams, who took the helm as the city’s top administrator in November, identified the outstanding debt in conjunction with a mid-year budget review that included an independent auditor’s report carried out by the firm of Rogers, Anderson, Malody and Scott.

The practice of borrowing money from the redevelopment agency for use in day-to-day operations at City Hall is one of questionable legality that extends back nearly thirty years. Redevelopment agencies are adjuncts to municipal government that take as their primary function redressing blight and urban decay. State laws require that redevelopment agencies make careful accounting of the funds they utilize, which quite often consist of tax increment routed to the agency from a given municipality’s redevelopment project areas. Those redevelopment funds are required to be kept in a sequestered account that is separate from the city’s other accounts such as its operating, general, enterprise or utility funds.

Adams made the disclosure of the loans from the redevelopment agency to the city’s general fund in an agenda report to the city council dated February 23 entitled "Mid Year Budget Review for Fiscal 2009/2010."

In a section of that report headed "Adjustment to General Fund Reserve," Adams wrote, "The general fund reserve does not include a $4,606,950 ‘advance’ from the community redevelopment agency to the city general fund which is reported in the annual financial report for June 30, 2008 for the city and the redevelopment agency. It was reported then because of a change in general accounting standards board reporting requirements. Staff has done considerable research for available records on this advance so that it could properly be reported in the adjusted budget. In addition to the community redevelopment agency advance in the general fund, staff discovered a general fund loan to the community redevelopment agency for $538,838 made in February 2003 of which $271,216 has been repaid. Property tax increment was misallocated to the general fund instead of the community redevelopment agency during the fiscal years of 1991/1992 through 1996/1997 and only partial repayment was made. Since this time period is past the statute of limitations (10 years) staff recommends the misallocated amount $2,013,628 due to the community redevelopment agency capital payments fund be ‘forgiven’ and written off as an uncollectible debt. Advances from the community redevelopment agency to the general fund were made during the fiscal years of 1990/1991 through 2000/2001. These funds ($2,025,495 from the capital improvements project fund and $300,205 from the low-mod fund) should be repaid with interest. With interest calculated each year a the historical Local Agency Investment Fund rate, the net amount due to the community redevelopment agency from the general fund is $2,609,059. The $2,609,059 due to the community redevelopment agency from the general fund should be reflected in the budget by designating reserves."

Councilman Walt Stanckiwitz said he was taken aback by the report, which indicated a deviation in the intent of the city’s redevelopment efforts, which by charter are devoted to eliminating blight rather than funding city operations, as well as a departure from accepted redevelopment agency protocol pertaining to the use of redevelopment agency money for specified purposes. The sheer length of time the loans had remained on the books without any effort to repay them was disturbing as well, he said.

Most bothersome, however, Stanckiewitz said, was that the loans were made without the full cognizance of the city council, which also acts as the board of directors for the redevelopment agency.

Stanckiewitz, who has been on the council since 2008, told the Sentinel, "I was not informed about this before." It was in reading Adams’ report, Stanckiewitz said that he learned of the loans "This was the first indication I had of this," he said.

Also accepted by the council at its February 23 meeting was the Rogers, Anderson, Malody and Scott firm’s independent financial report for the city of Grand Terrace dated December 10 2009. In a section of that report labeled "Notes to Financial Statements" the auditors wrote, "In April of 1980, the community redevelopment agency of the city of Grand Terrace entered ino a pass-through agreement with the city of Grand Terrace which provided that certain tax increment generated by the agency project area be allocated to the city of Grand Terrace beginning in fiscal year 1981/82. This agreement was in noncompliance with state statutes. As a result $3,680,075 of tax increment was allocated to the city’s general fund through June 30, 1993, of which $737,805 represents amounts which should have been allocated for low and moderate housing set asides as required by state statutes."

Tom Schwab, who was city manager in Grand Terrace from 1989 until 2008, said the city’s practice of borrowing from the redevelopment agency was one borne of fiscal necessity in a town that had limited financial resources with which to work.

"We did it because we didn’t have enough money in the general fund to pay for operations," Schwab said, adding that the practice is an accepted one among California cities in like fiscal circumstance. "It is something that is commonly done. When I was there it was looked at as a straight loan. The city is now looking at it as overhead."

The use of redevelopment agency money to fund that portion of municipal operations relating to staff salaries is entirely justified because city staff functions as redevelopment agency employees during a portion of their time working for the city, Schwab said.

"Paying our employees was something we needed to do," Schwab said. "Our other option was to start paying everyone half their salary out of the redevelopment agency. I thought it was cleanest just to have the city make the payments."

Schwab said the changes that the council is instituting upon Adams’ recommendation are ones of form rather than substance.

"The city is still borrowing from the redevelopment agency, except they are calling it overhead," Schwab said. "They will be taking slightly over $600,000 from the redevelopment agency this year. I’m not sure why they are going to be paying the money back to the redevelopment agency instead of just forgiving the loan. I don’t see any benefit to paying it back when they will need to borrow it again next year."

Schwab conceded that some might have legitimate concerns that utilizing redevelopment money for funding city operations might shortchange the redevelopment agencies function.

"I understand what you are saying," he said. Nevertheless, he insisted that having the city borrow the money from the redevelopment agency to cover the cost of maintaining municipal services served a legitimate purpose. Moreover, he said, using the loans for critical ongoing functions that could not have been paid for otherwise and then closing out the deal by not refunding the redevelopment agency the money forwarded to the city was an entirely legitimate way of putting the city’s redevelopment function to work for the city.

"My intention was to borrow it and never pay it back," Schwab said. "When the redevelopment agency expired, the debt would expire with it."
Schwab said the redevelopment agency was chartered for a set number of years and then would fade into oblivion. The city would then have the option of chartering a new redevelopment agency or going on without one. With the closing out of the existing agency, any money owed to it would become a moot issue.

"When the redevelopment agency ran its course after thirty years, that debt would be forgiven," Schwab said. "The agency still has a few years left. In 2012 the redevelopment agency will cease to exist as a legal entity."
The arrangement was presented to the council and formally accepted,

Schwab said, but flew under the radar for years. "There was a time when the auditors made us formalize it and that was what has brought up all of this attention," he said. But even before the auditors forced the practice to be highlighted, Schwab said, what was going on was there for all to see. "There is no way it would have been hidden unless the council could not read a financial statement, which some of them might have had trouble doing," he said. "But if they read it there was no way they would have not been able to catch it. The mayor’s husband is a CPA and she would have known."

At the February 23 city council meeting, the practice of borrowing funds from the redevelopment agency that went unrepaid for decades was the subject of derision.

At that point, Schwab, who was in attendance at the meeting, came to the public podium to make a defense of the practice.

The criticism of the practice, Schwab said, "seemed to infer the city council was unaware the redevelopment agency was making loans to ths city. In fact the budget we adopted this fiscal year included the same transfers we did the last ten years. We called it a loan. Last year it was called an overhead payment. The city is the redevelopment agency. The city council is the redevelopment agency board of directors. The city manager is the redevelopment agency director. The city clerk is the redevelopment agency secretary and the city attorney is the redevelopment agency council. This borrowing has been going on for many years with every single budget and will continue to go on."

Early in the city’s history, Schwab said, "We never borrowed from the redevelopment agency. We loaned money to the redevelopment agency and it was the other way around. I believe there is no way in the short term you are going to stop that with the economy the way it is."

In response to questions by the council about how the borrowed redevelopment money had been spent, Adams said, "From the research staff was able to do, we know from the agency to the general fund. In terms of what it was used for, we don’t know. We’re not sure we can tie it to specific expenditures."
Finance director Bernie Simon told the council the borrowings constituted "non-specific transfers. It was a decision by the city council to do that. Whether they understood [what they were doing] is a different matter. It is documented in the financial records."

Councilmen Jim Miller and Walt Stanckiewitz, the two most recently elected members of the council, expressed concern over the practice.
"We are not happy about what has gone on and we are trying to fix it," he said..

Stanckiewitz was even more pointed in his comments.
"The council has to deal with things that went back 16 plus years," he said. "Call it mismanagement or slight of hand, it did damage and it now has come home to roost. It is important that we not forget what happened in the past exactly so we don’t do it again. I want an answer as to what happened and how we got here. Staff is struggling to find it in the documentation."

In direct response to Schwab, Stanckiewitz said, "What you did was wrong and I accept your challenge to formulate a budget without raiding redevelopment agency funds."

Also in the Sentinel:

GT Residents Point out Prosecution Discrepancies

Two Grand Terrace residents this week challenged the Grand Terrace City Council to take a more aggressive stand in defense of councilman Jim Miller, who has been criminally charged with violating the state of California government code section relating to conflicts of interest. In making their call, the two residents raised the dual specters of political and selective prosecutions and contrasted Miller’s action with that of other current and former Grand Terrace council members and mayors, suggesting their actions were no less, and in some cases more, egregious than Miller’s.

Miller was arrested on July 15 and charged with engaging in a felony conflict of interest that arose out of his voting, as a member of the Grand Terrace City Council, to ratify the city’s consent calendar.

The consent calendar, in Grand Terrace as in all cities, typically contains multiple items pertaining to the function of the city government, all of which are deemed non-controversial and routine matters and are bundled together so they can be approved in a single yes or no vote of the council. It is unheard of, in Grand Terrace and elsewhere, for the consent calendar not to pass and it is generally approved by a unanimous vote of the city council, although on rare occasion a dissenting vote on a consent calendar vote is registered. In Grand Terrace as elsewhere, the consent calendar contains the city’s check register, that is, a listing of the checks that have been written to the city’s various vendors and contractors.

Among the items that had been certified as routine and non-controversial on the Grand Terrace consent calendars were payments to the Grand Terrace City News, the only adjudicated newspaper in Grand Terrace, which is owned by Jim Miller’s wife, Margaret.

The Grand Terrace City News had published legal notices at the behest of city employees in the city manager’s office and the city clerk’s office. Those ads were purchased without the prior knowledge of the city council.

The district attorney’s office has interpreted Miller’s vote to confirm the city’s payments to his wife’s newspaper as a violation of Government Code Section 1090, which prohibits an elected official from voting on any matter in which he or she is deemed to have a financial interest.

Both Bernardo Sandoval and Patricia Farley came before the city council on Tuesday to propound their view that Jim Miller’s transgression was inadvertent and done without intent. Furthermore, they said, others on the Grand Terrace City Council who had made similar votes had not been subjected to criminal prosecution.

Sandoval came to the public podium and asked for a show of hands of those present to see who among them "support Jim Miller." Nearly all of the roughly 40 members of the public present raised their hands. Mayor Maryetta Ferré responded, "We all support Jim."

"Then what I am requesting will be easy for you," said Sandoval. "Sign a piece of paper as part of a non-binding resolution in asking the DA to drop these charges against Jim Miller."

When none of the council responded, Sandoval continued, first addressing council woman Bea Cortes. "Bea, was there criminal intent on your part when you voted to approve payments to your employer [Terra Loma Real Estate]? Was it worthy of being arrested at six in the morning and having your mug shot plastered across every paper and news outlet on web?"

Sandoval then addressed Ferré.

"Mayor Ferré, when you voted to approve payments to the [Riverside Highland] Water Company, where your husband sits on that board and receives a stipend, was there criminal intent on your part? Were you guilty of a felony?"

Sandoval then answered his rhetorical questions. "No, there was not criminal intent on your part," he said. "There was no intent to defraud on your part. There was no criminal intent on your part. By the same measure, reason and logic, Jim Miller is innocent of these politically motivated charges and you all know it. Everybody in this room knows it. Jim Miller is collateral damage in a war being fought between the DA and the board of supervisors. Do not allow Jim Miller from Grand Terrace to become a campaign slogan for district attorney Mike Ramos in his reelection campaign. Jim Miller is innocent. He deserves more from this council and this council has the authority to support him."

Farley then came to the podium and referenced past votes by previous city councils, including one to make payments to All State Printing, which was owned by then-mayor Byron Matteson, and a vote to make a payment to the Grand Terrace Area Chamber of Commerce that was of personal benefit to council members.

Farley said an effort by the city to convince the district attorney’s office that the charges against Miller were ill-conceived was in order.

After the meeting, mayor Ferré, who was visibly agitated at Sandoval’s public reference to the circumstance relating to her votes to make payments to the company over which her husband presides as a board member, refused Sandoval’s proffering of a petition to the district attorney’s office on Miller’s behalf.

"I am the mayor of this city I don’t believe I have to sign anything," Ferré said. "I am in control of my own person and I am not going to sign it."

(Remember this statement of Ferre when or if the City Council Members are held accountable for their participation of the Financial Shell Game Ex City Manager and Current City Attorney Harper advised them to participate in. She said: I am the Mayor of this city I don't believe I have to sign anything, " Ferre said. I am in control of my own person and I am not ging to sign it.") Then look at Schwab's statement, her husband is a CPA she should have known.....

The SUN TELEGRAM only covers the Fireworks Issue...

Fireworks' fate going on Nov. 2 ballot
G.T. residents have differing views
Stephen Wall, Staff Writer
Posted: 02/27/2010 06:12:48 AM PST

GRAND TERRACE - Residents will decide whether fireworks remain legal in the city. The City Council has agreed to allow residents to vote Nov. 2 on the sale and discharge of fireworks. The election will cost no more than $1,900, officials said.

"Safe and sane" fireworks will be allowed on July Fourth. The council also agreed to create a "safe" zone around the base of Blue Mountain where fireworks will be prohibited.

The San Bernardino County Fire Department, which provides fire services for the city, will determine the areas to be included the safe zone. The council must sign off on the boundaries at a future meeting.

Mayor Maryetta Ferre said last week there appears to be equally strong sentiments from residents on both sides of the issue. "We seem to have as many people wanting them banned as we do wanting to continue with safe and sane fireworks," Ferre said. "This seems to be a good way to go."

Fireworks have been allowed in the city since 1997. Two youth sports groups, Grand Terrace Little League and Grand Terrace Soccer Club, are the only two organizations permitted to sell fireworks. They share a booth in front of Stater Bros. Market on Barton Road. The groups say they rely on fireworks sales to sustain their operations.

Opponents say fireworks pose a public-safety risk. "As an elected official, my first duty is to protect the residents," Councilwoman Bea Cortes said. "I would prefer that the organizations come up with another method of fundraising instead of fireworks. The organizations said they sincerely tried, and it's very difficult to reach that amount of money no matter what type of fundraising they do."

The council has gone back and forth on the issue. Last year, a verbal deal was reached between the city and the presidents of the two groups to stop selling fireworks in exchange for a break on field use and lighting fees charged by the city.

But the board of directors of the leagues never agreed to the deal in writing. Ferre said she wants the issue settled once and for all. "This has gone on for a couple of years," she said. "It's time we solved this problem. Let's make a decision and move on."

Read more: http://www.sbsun.com/news/ci_14483563#ixzz0gr3Uj8Rt

WHY the board of Directors of the Leagues must agree prior to Council action is a mystry. No one asked the residents along Barton Road if they agreed with the City taking their land under the threat of Eminent Domaine for a Shopping Center developed by a Private Developer.

How do we get included in the Safety Zone?

What other efforts at fund raising have they tried? It is known they have made zero effor to replace the Fireworks they are determined to use Fireworks until the last possible moment.

Thursday, February 25, 2010

Schwab Should Keep His Mouth Shut:

Ex City Manager signed a Confidentiality Agreement when he was terminated from the position of City Manager. So why is he taking the podium and offering his advise to the City Council and Public. Does this not smell a bit like a breach of Confidentiality or working on Insider Information. Unless he is willing and forced to answer ALL the Questions he should not speak half representations without facts to back them up in hand.

UNTRUE Statement to Public...

1. RDA tax increment: Joyce Powers claims it does not raise taxes. Yes it does in an indirect way. The theory is that RDA encourages development that increases property taxes--via increase value of improved property;debt is incurred to finance projects, such as the Town Center, in the anticipation that the improved property will generate more value in tax assessment(the increased value of the property) or generate sales taxes.
If the City incurred debt of $100,000, the improvement should generate enough new revenues to pay the debt and administration(planning, environmental studies and management staff of the project and provide a tax increment-more property tax revenues.

The problem is that if any new property taxes are produced they can only go back to the RDA.

Thus, in our City of Grand Terrace, the general fund has had to borrow from the RDA. Why, because any increase in property taxes goes to them whether they can prove their projects generated any new tax revenues or not. RDA is cash rich, the City cash poor.

Many studies, that can be found on the internet from very credible sources, such as the Public Policy Institute, find that RDA's do not increase revenues. Increased real estate values produced the increased tax revenues. So obviously, the the housing bubble has deflated that growth and the house of cards if falling.

For all the efforts of the City of Grand Terrace, sales taxes are down almost 12 percent. The general fund is in a deficit. RDA has tons of money, but it is designated to pay for debt or enter into commercial ventures best left to market forces and private enterprise.

Read more at http://www.crrsj.com/references/morrreport.php

TELL THEM NO.... PUT IT ON THE BALLOT... NO NO NO...

CITY OF GRAND TERRACE REDEVELOPMENT AGENCY NOTICE OF PUBLIC MEETINGS ON THE PROPOSED AMENDMENT NO. 6 TO THE REDEVELOPMENT PLAN FOR THE GRAND TERRACE COMMUNITY REDEVELOPMENT PROJECT COMMUNITY INFORMATION MEETING


The City of Grand Terrace Redevelopment Agency (“Agency”) is considering an amendment to the Redevelopment Plan for the Grand Terrace Community Redevelopment Project (“Project Area”), referred to as Amendment No. 6. The proposed amendment would:

1) increase the tax increment revenue and bonded debt limits in the redevelopment plan;

2) extend the effectiveness of the redevelopment plan and time limit to collect tax increment revenue in the redevelopment plan;

3) rescind the Agency’s authority to commence eminent domain within the Project Area;(This should be done without a bribe.)

4) replace the description of land uses in the redevelopment plan with language that directly refers to the City’s General Plan, zoning ordinance, and other applicable land use policies and standards, as they exist today or are hereafter amended; and

5) amend and restate the redevelopment plan to incorporate the prior amendments into a single document.

Project Area residents, businesses, property owners and interested parties are invited to attend a Community Information Meeting at 4:30 pm, on Tuesday, March 9, 2010, in the Community Room, Grand Terrace City Hall, 22795 Barton Road, Grand Terrace, CA. The purpose of this meeting is to inform residents and stakeholders about Amendment No. 6 and to encourage input from the public on the proposed Amendment No. 6. The Mayor and Council members will be present, and available to receive comments and answer any questions.

At 6:00 pm on March 9, 2010, the City Council/Redevelopment Agency will review a recommendation to set a Joint Public Hearing for April 27, 2010 regarding approval of Amendment No. 6 to the Redevelopment Plan and the Environmental Impact Report.

BACKGROUND ON THE REDEVELOPMENT PLAN AND PROJECT AREA

The City of Grand Terrace originally established the original and added areas that make up the Project Area in 1979 and 1981, respectively. The Project Area includes all properties within the City of Grand Terrace.
The Agency pursues a variety of activities in order to improve the Project Area and City by eliminating negative physical and economic conditions, fostering economic growth, and providing upgraded public improvements. The Agency’s many achievements include Blue Mountain Senior Villas and Senior Center, assembling property and public improvements related to the construction of the new Grand Terrace High School at the Ray Abril Jr. Educational Complex, assembling property for the Town Square commercial project, grants for commercial and neighborhood improvements, and a number of design plans for infrastructure and development standards.

(The School District could have assembled the property for the School.) (The Town Square was forced upon the land owners by the threat of Eminent Domain.) (Design Plans for many "Projects" have failed to produce much or gotten past legal challenges.) So what really has the CRA Got to show past the Senior Housing that will not be paying back the city for the debt funds the CRA spent on it.?)

Amendment No. 6 is being pursued to continue revitalization efforts and attract private investment to the Project Area and the City. All activities undertaken by the Agency are regulated by State law.

REASONS FOR THE AMENDMENT

The Agency is pursuing Amendment No. 6 to ensure that financial and administrative tools remain in place to continue redevelopment and revitalization activities within the Project Area and City. Increasing the tax increment and bonded debt limits, as well as extending the duration of the redevelopment plan and the Agency’s time to collect tax increment, will allow the Agency to continue to receive a revenue source without increasing property taxes.

Without Amendment No. 6, the Agency would cease to receive these tax increment revenues within a 3 year period. These revenues are used to remove and alleviate negative physical and economic conditions that remain in the Project Area, fund infrastructure improvements, assist with economic development activities, and increase and preserve the supply of affordable housing within the City.


Additionally, the Agency has no intention of utilizing its existing eminent domain authority which is due to expire next year. As part of Amendment No. 6, the Agency will rescind its eminent domain authority in the redevelopment plan. Finally, updating land use language in the redevelopment plan to be consistent with that in the City’s General Plan (as it exists today or is later amended) and replacing the existing redevelopment plan and all previously adopted amendments with a single, updated redevelopment plan will bring the redevelopment plan to current compliance with State law.


FREQUENTLY ASKED QUESTIONS

What is redevelopment?

Redevelopment is a financial tool that allows cities, counties and private enterprise to work together to prevent and eliminate blight within a designated project area. It aids the general economic development of a city to improve living standards of increased income, better education, and health, safety, and environmental protection.

(The only income that increased because of the GT CRA was that of City Management, City Lawyer, and a Few Realtors and some Out of City Contractors who don't use local labor. Education is not the business of the CRA or City of Grand Terrace. Health, Safety and Environmental Protection... they just allowed Fireworks People.. Most of the plans were struck down in court because of Health, Safety and Environmental issues. Even the Senior Center was redesigned as a result of a long drawn out and expencive trial. The City Attorney was happy to bill the city for his services.)

Is there any benefit to being in a redevelopment project area? (NO)

The redevelopment process is one of the most effective ways to foster private investment in areas of a community plagued by negative physical, environmental, or economic conditions. These include conditions such as a serious lack of necessary commercial facilities (such as grocery stores, drug stores and medical facilities), buildings that are unsafe or unhealthy for persons to live or work, inadequate infrastructure, obsolete and substandard design, or threats to public safety and welfare.

Through redevelopment, an area can receive focused attention and financial investment to reverse deteriorating trends, create jobs, revitalize the business climate, and rehabilitate housing stock.

(Grand Terrace is so "Negative" that it was one of the top 100 Cities, you can't have it both ways City Council.) (Redevelopment has not created any livable jobs outside of the High Paid City Hall Management). (Past funds were used for Traffic Island that Look Nice, $57,000.00 flashing signs, and many other items the city did not need or get benefit from.)(Redevelopment Agencies are not the most efficient way to conduct the business of the City. Orange County Banned Redevelopment and has flourished.) Where Redevelopment Agencies Exist the communities are in trouble and having greater economic problems. Funds are Drained from the General Fund to pay for debts and grand failed plans. Funds were used to paint the roads black, and a few real repairs or improvements were made for the 19 Million already spent.

Will my property taxes be higher because of redevelopment?

No, the Agency has no power to levy a property tax or other tax. Property taxes do not go up as a result of being located in a redevelopment project area. Tax increment is only the property taxes paid on properties within the Project Area, as a result of a sale of property at a higher value or new development value.


For more information on Amendment No. 6, please contact Joyce Powers, Community and Economic Development Director at 909-430-2225.

The real reason behind this increase in the Debt Limit is that the City Council wants to continue to use the CRA to fund the City's General Fund, and pay some of the staff salaries and Legal Fees with Redevelopment Funds because the General Fund can not support their delusions of grandeur and greed. It is time to say STOP NO MORE. GET THE City Redevelopment Agency Off your Backs and return your full property rights to the land owners. Stop making Plans that Stop Free and Fair Development and Competition.

Ex City Manager Tom Schwab's Contempt of Law and Public

Ex City Manager Tom Schwab's recent quote in the Grand Terrace City News. He challenged the idea that the City Council could pass an ordinance, a law, that the Citizens would obey. He said, "There is no way you can stop the discharge of fireworks in Grand Terrace, because people will go down the hill into Colton and purchase them and then bring them back up here to fire off."

Following his logic, we should not have ordinances against riding skate boards in parking lots... that law is violated daily. When the offender loses his skate board he just goes down to Colton and buys another one and brings it back here to ride again.

Following his logic, we should not have a leash law because people who live out side of Grand Terrace dump their unwanted animals in our town.

Following his logic, the City Council and Law Enforcement is Powerless to enforce a City Ordinance, as if under his management City Ordinances were all enforced 100 Percent of the time.

FACT: Law and Fire Officials all said it is easier to enforce a total ban than a partial ban.
FACT: There have been fires and injury caused by the sale and use of "Safe and Sane" fireworks right here in Grand Terrace.

Once upon a time long long ago, fireworks were not allowed in Grand Terrace. Some people would purchase them in San Bernardino or Colton and the family would go to a large parking lot to fire them off in San Bernardino. Sure even in those days you had a few people who violated the County Ordinance/Law. Some were fined, some got away with it. However, the risk was less than current days. We have more homes closer to hill sides. We are not using goats and sheep to trim the hills and road ways.

Citizens should be offended by Ex CM Schwab's assertion that a significant number as in ALL of them will violate the law. He is suggesting that the general population of Grand Terrace has a Criminal Mindset.

Tom Schwab's low opinion of the Citizens of Grand Terrace and the function and efficacy of a properly working City Council and City Manager indicates he was not fit for his past position or any future position in the future.

There is a way to show your support for the sports teams:
Don't buy any fireworks.
After a failed sale then donate the CASH you would have spent to them directly. Send a note that says I will donate this every year you do not sell fireworks. If you sell again there will be no donation or sale.

No profit going to the Fireworks company who seems to be an influence on Ex City Manager Tom Schwab. Remember Tom Schwab got contract raises while he cut support to Parks and Recreation and brought to the council the grand idea of allowing fireworks to support the teams and eventually even the City's Enforcement Efforts which did not work all that well.

To Encourage the Council Members to ban fireworks we should make it only legal to use Fireworks on streets where they and the Sports Team Board Members live.

Wednesday, February 24, 2010

End the Schwab Gag Agreement....

If he and the Council did nothing wrong why would they need a confidentiality clause. If you have nothing to hide, then why hide it.

There should be a further investigation of the entire Schwab Era... Confidentiality Clauses are waived in a court room.. So for this reason alone there should be a trial to discover all the hidden facts and persons involved.

It should be clear that the City Attorney should be replaced.

Financial Disclosures Are More Than A Lie To Citizens:

"Everyone thinks our reserves are healthy, but we really only have $1.1 million," he said. "We are not as well off as we have been telling the world."

When the Debt Bonds are issued it is done in part based upon the representations of the Former City Manager Tom Schwab and the City Council and the City Attorney Harper. The missrepresentations could rise to the level of intential misrepresentation and that would not be legal in business and should not be legal in government management.

Will the Federal Regulators be knocking on door steps of City Hall? Will they haul in Schwab like they do CEO's who rip off investors? Time will tell.

Current City Manager Betsey Adams may be able to save the City's and Schwab's bacon by paying off the worst of the transgression the misappropriation of funds. But, the debt holders may require more than just interest payments on the bonds and the cost of litigation may kill more than the assets of the Redevelopment Agency, but also the City as well.

As with other CEO's who were held liable Mr. Schwab may lose his house and cars and a portion of his retirement fund as a result of his part of the over statement of Grand Terrace's resources.

Perhaps this is why the City Council Meeting was not broadcast on CH3. The fewer people knowing about the City's real financial situation the safer Mr. Schwab and his minions feel.

City is Stuck with CRA Debt as CoSigner.

HEALTH AND SAFETY CODE SECTION 33070-33071

33070. The Legislature finds and declares that decent housing and genuine employment opportunities for all the people of this state a revital to the state's future peace and prosperity, for all of the following reasons: (a) Hazardous, congested, and insanitary housing debilitates occupants' health to the point of impairing motivation and achievement. (b) Lack of employment opportunity creates despair and frustration which may precipitate violence. (c) Unfit housing and lack of employment opportunity depend on each other to perpetuate a system of dependency and hopelessness which drains the state of its valuable financial and human resources.

33071. The Legislature further finds and declares that a fundamental purpose of redevelopment is to expand the supply of low-and moderate-income housing, to expand employment opportunities for jobless, underemployed, and low-income persons, and to provide an environment for the social, economic, and psychological growth and well-being of all citizens.


How to Dissolve a RDA Agency__

HEALTH AND SAFETY CODE SECTION 33140-33142

33140. If an agency has not redeveloped or acquired land for, or commenced the redevelopment of, a project, or entered into contracts for redevelopment within two years after the adoption of an ordinance pursuant to Section 33101, or, in the case of an agency authorized to transact business and exercise powers by resolution adopted pursuant to the provisions of Section 33101 that were in effect prior to the adoption of that resolution, the legislative body may, by ordinance, declare that there is no further need for the agency. A legislative body shall not adopt an ordinance declaring that there is no further need for the agency if, in one or more project areas, the agency has not complied with subdivision (a) of Section 33333.8. Upon the adoption of the ordinance, the offices of the agency members are vacated and the capacity of the agency to transact business or exercise any powers is suspended until the legislative body adopts an ordinance declaring the need for the agency to function.

33141. Upon the motion of the legislative body or upon recommendation of the agency, the legislative body of the community may, by ordinance, order the deactivation of an agency by declaring that there is no need for an agency to function in the community, if the agency has no outstanding bonded indebtedness, no other unpaid loans, indebtedness, or advances, and no legally binding contractual obligations with persons or entities other than the community, unless the community assumes the bonded indebtedness, unpaid loans,indebtedness, and advances, and legally binding contractual obligations. A legislative body shall not adopt an ordinance declaring that there is no need for the agency, if in one or more project areas, the agency has not complied with subdivision (a) of Section 33333.8. An ordinance of a legislative body declaring there is no need for an agency to function in the community shall be subject to referendum as prescribed by law for the ordinances of the legislative body.

33142. The legislative body of the community shall file with the Secretary of State a certified copy of any ordinance suspending or dissolving an agency pursuant to Section 33140 or 33141.

*****************************************************

The above defines the purpose of the RDA. Judge for yourself if the City Redevelopment Agency has been used for the purposes intended.

Also see that the Debt of the Redevelopment Agency is the full responsibility of the City of Grand Terrace. Ending this agency now will be painful but it is better now than if the Schwab and his minions continue to expand Debt and the drain on the City's General Fund by their Bernie Maddof Financial Logic. These are the Big Spend and no tax Republicans that ran the Federal and State Government into DEBT. These are the same tactics that inflated the property values and created the Financial Bust.

Grand Terrace is not going to get a Bail Out. Grand Terrace can not print more money. Grand Terrace has to cut its losses, suck it up and end the bleading. We need to end the CRA, sell off all the land possible and cash out to as close to as zero as we can get. It is time the City of Grand Terrace lives within its budget and stops speculating on Real Estate under the cloak and protection of a Redevelopment Agency.

Budget Solutions and Guidance:

Here is what can be done by the Citizens of GT.

1: Have a Citizen Backed Measure put on the next Ballot that says:
A: All City General Fund and City Redevelopment Agency Funds must be kept separate at all times.
B: The City Shall have a Balanced budget based only on its revenue excluding any use of funds transferred from the City Redevelopment Agency.
C: The City Redevelopment Agency can no longer issue Debt Bonds and must pay back the current debt in 5 years or go into foreclosure.
D: Establish City Employee Pay and Compensation Limits to be 10 Percent above the Median Individual Income of GRAND TERRACE. We do not need to pay a Kings Ransom for a the job of a stable boy. This is not Los Angeles, or San Diego folks.
E: Routine Billing should be contracted out and the Finance Department minimized to the direct function of City Government Only.
F: Order the Reorganization on Retirements and Extended Payments to Tom Schwab and all employees earning above 80,000 and former and current city council members. Reduce their retirement benefits to fit the service they rendered... and what the city can afford after having been taken to the cleaners by them.

Public Supported Measures are the only way the People can Take Back Grand Terrace. We can't wait till 2012 to get rid of some of the council members who think Debt is Good... and they are REPUBLICANS... GADS.

We Want Our Money Back! From Email

Where the money went.....

I recall several thousand dollars being spent by Schwab and Berry on rocks to "beautify" Mt. Vernon. Sell the rocks. We could have had them for free.

All we would have had to do was shake them out of Schwab's head.

Here are a few of the other things that Schwab did. to contribute to the financial problems of the City. He had the City buy a house from the RDA and sell it to him. The City carried the loan on it for several months until he could arrange his own financing. He was over qualified for an RDA house and skirted the law with the help of those council members at that time.

Two city employees, one has since left the employment of the City, Michelle Bousted, who was over qualified for an RDA house and claimed it to be her sole property so as not to have to list her husbands income, She also received a "silent second mortgage" of $48,000. A silent second mortgage does not have to be repaid unless you sell the house before living in it for twenty years. One other city employee also has a RDA house. Bousted and Schwab took house's that were intended for low income people. "Let them eat cake".

Schwab took RDA funds to build a building for the City and took RDA funds to buy a truck for the City. Both an illegal use of RDA funds and were so stated in the independent audit of the RDA. How many millions going to Knootz and Megna were wasted by Schwab.

Knootz was an employee of Megna, (The Infamous Outdoor Adventure Center) at the same time he was employed by the city, thanks to Schwab, as a consultant or some title that had to do with advising the Council and Schwab on how to waste money . A job well done by Schwab.

The Dodson house. The Dodson's could not sell their house because of the proposed Outdoor Adventure Center. So Schwab and Gene Carlstom approached the city to buy it.

Schwab was the spokeshole for the City in the negotiations and Carlstrom (Bea Cortes employer) for the Dodson's. The Dodson's had been asking $750,000 going in for their partial swamp land. It is consider marsh land when it rains. After the brilliant negotiations by Schwab they got $2,400,000. Herman Hillkey was on the Council at the time. After weeks of closed session meeting and Ferre saying "no action had been taken" after each closed door session, A very angry Hillkey stated in public that the deal was made in the first session and "We paid too much for a piece of property we did not need".

Ferre had the payments approval divided between two or three Council meetings so as not to let the public know exactly how much we paid.

How about the residents of Honey Hills reimburse the city for the "Honey Hills" letters that were stolen from their entrance sign. Schwab just took city funds to replace them without Councils, well not all of the Councils, approval. What Mayor's father developed Honey Hills and lives there. The sign is not city property.

Look on the bright side. The Corporation for Better Housing, who Schwab said was not section 8 housing and in fact it is, who Schwab said there would be a list of Grand Terrace residents that would be first to move there. There wasn't such a list, because it would be illegal. Corporation for Better Housing is paying one dollar a year for the lease on the property for 60 years. They get all the income and GT pays the debt of 9 Million.
60 years from now we get it back. I hope they have the new kitchen at the Senior Center fixed by then.

On and on it goes. Birthday bonus for city employee's, paid "volunteers", expensive parties Schwab's "City portfolio" that was nothing more than debt for the taxpayers, a high school we don't need, letting a trucking company operate in a residential zone with hazmat conditions for the "good ol boy" network, we almost had a turbine powered peaker plant, one council member piled on by the D.A., Berry and Counciless woman Cortes whom is doing the exact same thing that Jim Miller is being accused of and bragging of her personal relationship with Mike Ramos, the D.A.

Miller's biggest mistake was questioning Schwab, Berry and Ferre. Berry's criminal investigation and arrest being stopped by what the Sheriff's Department report called "extraordinary means". Schwab stopped it so the public would not find out about the corruption. The former Mayor getting over three million for his property when others with more desirable land in the same Barton Road RDA zone were offered pennies on the dollar.

Think back about the hundreds of citizen that came into the Council Chamber and addressed the Council in protest on the Outdoor Adventure Center, Senior Housing, the peaker plant, who without the steadfast determination of an affected citizen would have been built and The Town Center. The promised Town Hall meeting for citizens input that never happened. Council woman Garcia's vote of "Aye" after she took the maximum allowed by law in campaign contributions from Doug Jacobson and his wife. That is nothing more than bribery.

Ferre's creditability is zip. Over the years at Council and in the press she said she would never allow drive thru restaurants, there are now two, big box stores or tilt up building and that is all she has allowed or pushed for. Why?. The traffic does not go past her house in Honey Hills. Grand Terrace has always been known for it's "Bedroom community" atmostphere. It is if you live in Honey Hills.

Ferre's husband sits on the board of the Riverside Highland Water co. You know, the new building on Michigan in the residential zone with the play room and big new board room and offices for the board members. The residents on Michigan protested that and it fell on deaf ears. How many times has Ferre voted for payment to the Water Company while her husband sits on the board. How many times has she voted for items that her son the lawyer represented the interest of the item.

This City was incorporated by those that wanted to profit from the RDA and their real estate holding and they did and still do. If you have lived here for any length of time you know who they are.

If you think you own your house, think again. You are wrong. When this City was incorporated by Ferre's father, the Petta's and the rest, they declared the whole of the City blighted. So when a new house is completed it is immediately blighted and can be taken by the City.

This is the "baby and the bath water" saying. The thing here is we can keep the "baby" by re-electing Jim and Walt and throw the others out.

A bit of advice for Mr. Schwab. Don't waste your time running for Council. Absolutely every illegal thing you did while City manager will end up on fliers and on every door step in Grand Terrace.

Why No Broadcast on CH 3... Hide the Budget & Fireworks

From Email:
Paw:
I had the same question, why was there no broadcats on Ch 3 last nights Council Meeting. I think it’s because there was a discussion about the debt we are in.

LeAnn Garcia ranted about how borrowing from the RDA brings more money in from the government. Bea Cortes just repeated what LeeAnn said. It is so annoying. They take everything they hear from Schwab/staff as the gospel. Schwab got up and defended the same position.

Walt wanted to know specifically why the decisions of the past years were to borrow from RDA. Nobody could answer. There are no specific answers. The attorney says it was to put in the general fund. Citizens wanted to know why it is that they don’t report it as debt if they borrow from themselves to give to themselves, isn’t that debt.

From Email:

dirty laundry finally coming out, --- just not too out in the open
might embarrass the mayoretta

Pick A Place For Your 4th of July.

Go ahead and purchase your Fireworks this year. Take them over to your Firework Supporting Council Member's House and knock on their door holding a lit Sparkler and have your kids setting up the fireworks on their front lawn or in their driveway or on the street in front of their house.

You may want to invite yourself to Former City Manager Tom Schwab's house and to the homes of the Base Ball Teams Board Members and the Soccer Team Board Members. Light them up... but be safe... on their property but not in my back yard, front yard or anywhere near my house.

IF you burn my house down I will sue the city, the sports teams and who ever lit the match in that order.

Tuesday, February 23, 2010

Schwab He Can't Balance Budget With the Right Funds

Former City Manager Tom Schwab admitted in public that he could not balance the City Budget without taking money out of the City Redevelopment Funds. This admission should demonstrate the true malfeasance of his nature and possibly worse. He made recommendations spend, spend, spend, he always assure the City Council there was plenty of money available. He also continued to take more and more personal income and perks from the same limited funds. When he balanced the budgets in the past he cut Parks and Recreation, and ushered in the layoff of the lowest paid employees in the city.

Shame on Former City Manager Tom Schwab. Shame on YOU... If what you did to Grand Terrace isn't illegal it is Amoral and you should crawl under a rock in your shame. Hope you have room for your friend Steve Berry who you trained to do the same things.

Shame on the City Council Members who let him do this to the City.

From Email: First Reports on the Blacked Out CC Meeting

Act One: Mayor moves agenda so Chamber can give its Bus of the Month.
FIREWORKS RETURN TO BURN IN GRAND TERRACE THIS YEAR: Little League discussion on fireworks, council votes to lease site to TNT for $1.00 cuz general fund makes no money--only CRA.


Vote w/Miller Abstaining to extend for one year, do ballot measure--with designated high fire zones not able to have fireworks.

( Gramps Says: The 1.00 lease is to protect the City from Liability. Governments often lease property out for the fair market value who are we kidding here? Try to have a ballot that says not in my back yard but my neighbors house is fine. Try to enforce a partial ban with zones like this. They will make it harder for enforcement. Again, if it isn't safe in a green wide open lawn type city park it is not safe anywhere in Grand Terrace. Chickens.)

Act Two: Council rehash for city council meeting of budget shortfall. Suggestion was made they could just get rid of any future CRA obligations and return land/money to CRA. They do not get it! They think there must be a CRA and DEBT to finance the City.

Act Three: Public Comment: Former City Manager Tom Schwab attacked Council Member Walt Stanckiewitz. Schwab said Walt Stanckiewitzed voted for CRA advances to the General Fund. Schwab then issued a challenge to to Stanckiewitz see if he can balance a general fund budget taking CRA Fund Advances.


Walt Stanckiewitz responds to the challenge saying, yeah he will and what you (Tom Schwab) did was wrong.

Then Deb Hurst got up w/petition supporting Miller and asked council to sign and brought up all their bad deeds. (See Below)

Sylvia Robles said the City Council/CRA is a legislative body that has the power to, get rid or reduce CRA and return property tax $$$ to general fund where they can support things like little league.


Council Member Lee Ann Garcia did not understand the separation between the City General Fund and the RDA. She said debt is wonderful... Robles made it clear that Debt is not good under any scenario. But this economic fact went right over the heads of the Council / RDA Members Heads. LeAnn ranted about how borrowing from the RDA brings more money in from the government. Bea just repeats what LeeAnn says. It is so annoying. They take everything they hear from staff as the gospel. Schwab got up and defended the same position. Walt wanted to know specifically why the decisions of the past years were to borrow from RDA. Nobody could answer. There are no specific answers. The attorney says it was to put in the general fund. Citizens wanted to know why it is that they don’t report it as debt if they borrow from themselves to give to themselves, isn’t that debt.

(More money from other Government Funds are Liabilities and require performance and contribution of matching funds. In a good city these matching funds come from the General Fund not CRA DEBT. This dependence on skimming funds off of Government Funds and Debt Bonds demonstrates the inability of Schwab to stay within the resouces of the city ever expanding the debt and paying himself more and more every contract.)


Council Member Bea Cortes said if the 3 speakers had been at the workshop they would have known what was going on.

(Gramps Adds: Council Members calling a Workshop at 4:00 preclude Public Participation as Most of the Public have to work for a LIVING. Calling a meeting when the public can't attend and then not having Ch 3 broad cast the "Regular Meeting" should be considered a fraud upon the Brown Act 10 fold. The Workshop Materials and Record should be available prior to the Council Meeting or ASAP.)


((((((((((((((0))))))))))

Dear Grand PaTerrace,

I got up to speak tonight in support of Jim Miller. Below is a petition that is being signed in support of Jim. You and your readers can sign a copy of this petition at La Pasta Restaurant. If anyone wants a copy of this to gather signatures, have them contact me for a copy. .

Petition to Have Councilman Jim Miller's Charges Dismissed

We, the people, present this petition in support of City Councilman Jim Miller. We believe the district Attorney has had sufficient time to review the case against Jim Miller and believe the allegation's to be unfair and unjust to our community and the Miller Family.

At no time has the ownership of The City News been hidden from our community or City Officials. We believe The City News to be a wonderful communication tool and an asset to our community as a public service that provides community information.

We, the undersigned, are concerned citizens who urge the District Attorney to dismiss the charges brought against our City Official Jim Miller, we believe in his integrity and honor.

Print your name Sign your name



((((((((((((((((((((0))))))))))))))))))))))))))
Paww Thinks:

A Judge should not make a decision based on a petition but the law. Public support like this should only be used after conviction in the sentencing phase or for a pardon. You may be doing Jim more harm than good with this effort. An effort like this could be thought of as tampering with Justice.

A petition requesting that the charges against Bea Cortes and Ramos for not charging her could go the the Grand Jury and that would be a proper action in our Justice System.

A petition requesting the Grand Jury do a full audit of GT Finances and Steve Berry and Tom Schwab in relation to Window Tinting Fraud and Cover UP... would be within the proper function of the Justice System.

More From Email. Financial Problems or Fraud?

We get such leadership from the mayor, --- wow impressive -- "let's see what others suggest."

Here is a suggestion. How about calling all city/RDA loans due now, especially those made to employees on their RDA houses, including Schwab?

Interest rates are as low as they are going to be, they should refinance & repay now. If the loans are underwater so let them share with the bad credit rating that will follow under payment of a loan.

The city has been out of compliance with the state on low income housing for years. Sharon has documented the "funny business" of "low income housing" sites Schwab submitted to Sacramento for years. The senior center is low income housing it was pushed for a long time without publicly saying so.

Interesting to watch IF it were on CH 3 like it is supposed to be.

About time

Tom Schawb Should Pay Back the City:

Former City Manager Tom Schwab should pay the city back the money taken over the years for his "Professional" Mismanagement of the City Funds. He often re-assured the City Council there was plenty of reserve. No need to worry... Even when there were layoffs of low paid employees, Tom Schwab and Steve Berry were rewarded with pay increases and cars and a house.

The Bernie Maddof of Grand Terrace is Named Tom Schwab and his helper was Steve Berry and the City Council Members who let it go by their review.

Citizen after citizen said things weren't adding up. Tom Schwab said that the citizens didn't understand financial reporting. The Council it turns out did not understand financial reporting enough to ask for clear reports and strict adherence to sound fiscal practices. Taking money from one fund to support another would be a criminal act in most situations... Why isn't there a pile of arrest warrants being served in GT?

Perhaps this is why the email from this blog has been blocked by Tom Schwab's Administration, he did not want the Council Members to be educated and held accountable for his actions.

Last note. It is time to get a different Legal Council... This fellow has not served the City Well, and has been happy to charge the city a prime rate for his bad services.

YouTube Post of Tonights City Council Meeting

IT HAS BEEN REQUESTED
If anyone can Please post on YouTube the Meeting that was not Broadcast on Ch 3. People want to see and hear it.

Council Meeting On CH # 3

Still no broadcast 8:00 PM...

The Council Meeting Broadcast still not happening at 7:10 PM. Reports are the Council Chamber is full of concerned Citizens. What are they trying to hide from the viewing public?

The Council Meeting should be on Ch 3 at 6:00 PM tonight, it is now 6:11 and no Broadcast.

The City maintains video production facilities including a remote controlled multicamera TV Production Control Room in City Hall to provide live coverage of the City Council Meetings and other legislative body meetings designated for television coverage.

If you have any questions regarding Grand Terrace Television Channel 3 you can contact the City of Grand Terrace @ (909) 824-6621

From Email:

For years the folks that went into the podium and explained they knew what was going on with Schwab, Berry and Ferre were made to look ignorant by Schwab and some members of the council. Ferre says she "is not alarmed" It's because she has no clue about anything. From the San Bernardino Sun.

Mayor Maryetta Ferre said she is glad that Adams is providing the council with answers to the city's budget problems. "We would be nuts to say we didn't have a financial crunch," Ferre said."I'm not alarmed at this point. I'm waiting to see what is being suggested and what we can do."

This happened under her watch and all she can say is "I'm not alarmed at this point. We would be nuts (we knew that a long time ago) to say we didn't have a financial crunch. I'm waiting to see what is being suggested and what we can do." At what point is Ferre going to become alarmed. I have several suggestions what she can do, One would be to resign. She is an incompetent. When the Schwab, Berry scandal surfaced she should have insisted the Sheriff's Department follow through on the investigation and indictment. Complacency is complicity

$ 57,000.00 Electric Signs: Bad Budget Decision.

The first message on the new Electronic Signs should be:

All I got for my Taxes is this STUPID SIGN.
and A Giant Debt

The City Council Needs to trim over 400,000 in the next 4 months. Here is where to start:

City Manager's Compensation 30 Percent:
All Department Heads 25 Percent
All Stipends and Allowances to City Council Members Reduced to 1.00
Any City Employee Earning more than 80,000.00 per year Reduction 15 Percent
No More Paying the Medical Co-Pay of Council Members and Employees who earn above 80,000.00

Sell the City Owned Property and Call in Loans made to Employees and Former Employees.

Do not cut the city workers who are earning less than 50,000.00 year.

How to earn some income?

Open all City Owned Fields to Agriculture Use on a 3 year Lease for a buck a year plus 10 percent of the gross.

Provide Banking Services at cost for All Households to have a Home based Business. This would insure collection of sales taxes. All homes are pre approved for a business. Allow clients and deliveries to Home based businesses to 1 delivery and 10 clients per day. (Day care operations often have 8 to 10 children).

Thank you Mrs Adams for showing the Council what Schwab / Berry left you with. Please step up to the responsibility by first taking a reduction in your contract compensation.

GadFlies Were Right: Schwab Era Finance Problems Shown

Grand Terrace has been borrowing redevelopment money to bolster its general fund for years

10:00 PM PST on Monday, February 22, 2010
By DARRELL R. SANTSCHI
The Press-Enterprise

The Grand Terrace City Council tonight will begin grappling with a budget crisis that could drain the city's treasury for years to come.

In the short term, council members must trim $423,000 from the city's general fund budget for the 4½ months remaining in the current fiscal year.

Then, they must find a way to pay back $2.6 million funneled since 1990 from the city redevelopment agency to balance the general fund that pays for day-to-day expenses.

Part of this year's deficit includes a $155,725 loan that was to be taken from the redevelopment agency to bolster the general fund. The city manager will ask the council not to proceed with that loan.

Councilman Walt Stanckiewitz said by phone Monday that he had not been told the city was borrowing from redevelopment agency funds, which he believes can be used only to improve low-income housing and build up the city's infrastructure.

He acknowledged that some redevelopment money is routinely used to help pay the salaries of city administrators who devote a portion of their time to redevelopment projects. But he said the $2.6 million was siphoned separately.

"We have a gaggle of residents who have been crying ... about this kind of stuff for years," Stanckiewitz said. "They have been pooh-poohed away as gadflies. What this says is, these people were all right. They knew what was going on and no one would listen to them."

Grand Terrace's new city manager, Betsy Adams, is recommending that $2.6 million of the city's $3.7 million reserve fund be restricted as collateral for the loans owed to the redevelopment agency, and that a portion of the remaining money be used to help balance this year's $5.2 million general fund budget.

Stanckiewitz said the council will consider paying only interest on the money for several years until the economy -- and the city's finances -- recover sufficiently to pay back the principal.

"Everyone thinks our reserves are healthy, but we really only have $1.1 million," he said. "We are not as well off as we have been telling the world."

The City Council meets at 6 p.m. in its chambers at 22795 Barton Road.

Reach Darrell R. Santschi at 951-368-9484 or http://us.mc331.mail.yahoo.com/mc/compose?to=dsantschi@PE.com---


Grand Terrace to discuss budget problems

Stephen Wall, Staff Writer
Posted: 02/22/2010 04:18:57 PM

PST GRAND TERRACE - The nation's economy may be starting to rebound, but the city's budget woes are not over. The City Council will hold a 4 p.m. workshop today to talk about how toclose a $423,000 mid-year budget shortfall in the General Fund.

Spending and revenue projections have changed since the start of the 2009-2010 budget year in July. Construction permit revenue, sales tax receipts and investment earningsare all down since the budget was adopted. Most of the budget gap can be closed through unspecified "labor savings"with employees and use of reserves, City Manager Betsy Adams said in areport to the council.

The council also could freeze non-essential spending as a way to close theshortfall, Adams said. "Everything is on the table," said Councilman Walt Stanckiewitz said. "

It could be pay cuts, furloughs, you name it." Stanckiewitz said he is concerned about the city's dwindling reserves inthe General Fund. During the 1990s, the city transferred $2.6 million from the Redevelopment Agency to the General Fund.

That loan has to be paid back, lowering reserves from $3.7 million to $1.1 million, Stanckiewitz said. "We no longer have that healthy reserve because back in the `90s they were robbing Peter to pay Paul and didn't bother to tell anybody," Stanckiewitz said.

Mayor Maryetta Ferre said she is glad that Adams is providing the council with answers to the city's budget problems. "We would be nuts to say we didn't have a financial crunch," Ferre said."I'm not alarmed at this point. I'm waiting to see what is being suggestedand what we can do."

Open Letter to City Council

I just wanted to share in writing that the problem facing all local governments is their debt to development districts using RDA powers. Thirty-three (33%)percent of the average property tax revenues of all cities in the County of San Bernardino goes to pay debt for RDA projects.

In a City such as ours in which the entire City is within a RDA--all growth in property tax revenues--has gone to the RDA.

Why should we be in the position of borrowing from the RDA?

Property taxes are intended for general fund government.

It should pay for fine libraries, police, fire and parks and recreation.

The state is not robbing local government-- it is merely taking back it's portion of the property tax revenues it has given to cities under a complicated system called ERAF--Educational Revenue Augmentation Fund.

The recession of the 1990's forced the state to take back the majority of these funds to meet it's obligation to schools. Every taxing entity that shifts property tax revenues from local government to RDA's--unless a pass-through agreement has been made-- is less money for schools.

Cities claim they need to enter private capital business ventures to increase sale tax revenues.

This "Great Recession" has proven that with a less manufacturing jobs, more money going to too-generous public pensions, grossly inflated managerial salaries, creates a shrinking middle-class. No middle-class, no jobs no consumption of goods that generate sales taxes.

I urge you not to increase the debt capacity of the RDA. If anything all debts we are obligated to should be the end of government folly into private business ventures. No new debt for RDA's. It is taxation without the vote of the people.Sylvia Robles, Grand Terrace Citizen

Monday, February 22, 2010

Park or A Freeway May Run Through It.. From the Email

Gramps No Development should be done. Jacobsen Park or anything near the freeway and possible locations for the off ramps to the 215... We could have a park that is right under an off ramp... or under it... NO Thanks not now. The Blue Mt. Park could do a lot with the available funds... A parking lot and restroom area for the tail head to the natural park and trails that many in the community already support the concept of.

I do not support the purchase of the Land Jacobsen bought under the suggestion of Tom Schwab while the two of them were acting like Dictators and Tyrants over other property owners and the citizens of GT. Nope, if funds were made available to purchase Jacobsen Land, there should be an investigation right up the the Politicians in Sacramento down to the City Council who asks for it.

Good News: GT Website and Financial Reports

This blog was established in part to share City Documents with the GT Web Public. For years the City of Grand Terrace refused to increase the information and documents available to the public via the web. There is still room for improvement but it has been noted that the Council Member Packets with Financial Reports are now easier to read and the information on the web site in general is more current.

However, the information going to a Club or News Paper, or individual prior to being released to the Public via the Web Page should not happen. Insider information can be used for business and political purposes that may lead to future problems.

Please visit the City Web Site for the Documents related to the Park and the next City Council Meeting. The planning department and the RDA need to improve their reporting and web information.

The public would like the Council Meetings posted on the YouTube so that people can go back and see a meeting they were unable to attend.

There are still some city / county documents that should be on or linked to the City Web Page. Lets hope that happens soon.

Some Thoughts on Jacobsen Park

Paww...Saw the new park picture on the GT blog recently, that was taken via the Lion's club. A tiny error or revision may have crept in. I think the property now is a bit bigger. At last word they were going to take the little house lying off of GT Road too. This the place to north of the large refurbished residence.

From what I read off the newsletter, most all is correct though. 'cept the 5 (initial) million dollars for purchase of land, demolition and the improvements were not mentioned. That is a high figure too. If the City only gets $3 then the remainder is to be used for PARK purposes. Seems everyone automatically assumes the City will receive the high figure.


Gramps Reply:

The Lion's information was posted as is due to the fact that Not Everyone in GT is a member of the Lions Club. However, the Lions have a significant influence upon Council Members and Council Decisions. So what is being represented to them in regards to City Business is a PUBLIC matter.

The opinion of the Blog has not changed, 3 Million or 5 Million. No new property should be purchased. No property should be purchased from Doug Jacobsen for any purpose.

Saturday, February 20, 2010

Jacobsen Bailout Park Will Cost Taxpayers

The location of the Proposed Jacobsen Bailout Park is shown in this picture made available in the Lion's Club News Letter. Note many readers are less than pleased that the Lion's Club and only a FEW SELECT people have been informed of this proposed land purchase and the building of an additional park. This is a Bail out for Jacobsen and nothing more. There is a need for real improvements on Grand Terrace Rd. There is a real need to replace the Terrace Pines Mobile Home Park that Jacobsen Raised in his and Schwabs Grand Plan for a SUPER CENTER along Barton Rd.

The City of Grand Terrace does not need to add to its land ownership. The City already owns property that could be developed for park land. This additional purchase has the single purpose of bailing out Jacobsen who was following the directions of Former City Manager Tom Schwab when he purchased and distroyed the Terrace Pines Mobile Home Park.


The city may not get an approval for a park in that location given that the housing element removed has not been replaced.


Nope Mr. Jacobsen, sell your property on the OPEN FREE MARKET and yes you will have to suffer a loss. This is almost fair as the land you forced people to sell to you or the city was not able to go on the OPEN FREE MARKET.


Tuesday, February 16, 2010

Meeting Prior to the Council Meeting TONIGHT...

Gramps:

There is a workshop on the updated general plan 5:00 pm in the Chamber Room at Grand Terrace City Hall. All citizens who own property should be interested in this as the zoning on their property may be changed and the City could try to use eminent domain to take your property for a development, limiting your ability to sell or use your property as you see fit.

No planning meeting this month, or so they say...

GRAMPS:

The $57,000.00 signs are being installed. Let's see when the first traffic accidents happen as a result of distracted drivers.

Saturday, February 13, 2010

Yes that was an earth qake.. 4.1

It was located near San Timetao Canyon... Closest reporting site... Olive Del Ranch in Reche Canyon...

Good reminder to be ready with supplies and know your household emergency plan.

Some Media Reports have confused blog readers so here is the facts from USGS.

Recent Earthquakes in California and Nevada== PRELIMINARY EARTHQUAKE REPORT ==California Integrated Seismic NetUSGS/ Caltech/ CGS/ UCB/ UCSD/ UNR
Version #4: This report supersedes any earlier reports of this event.This event has been reviewed by a seismologist.
A light earthquake occurred at 1:39:06 PM (PST) on Saturday, February 13, 2010.The magnitude 4.1 event occurred 6 km (4 miles) S of Redlands, CA.The hypocentral depth is 9 km ( 6 miles).
Magnitude
4.1 - local magnitude (ML)
Time
Saturday, February 13, 2010 at 1:39:06 PM (PST)Saturday, February 13, 2010 at 21:39:06 (UTC)
Distance from
Redlands, CA - 6 km (4 miles) S (188 degrees)Loma Linda, CA - 8 km (5 miles) SE (128 degrees)Mentone, CA - 9 km (5 miles) SW (219 degrees)Moreno Valley, CA - 10 km (6 miles) NNE (27 degrees)Los Angeles Civic Center, CA - 98 km (61 miles) E (93 degrees)
Coordinates
34 deg. 0.2 min. N (34.004N), 117 deg. 10.8 min. W (117.180W)
Depth
8.9 km (5.5 miles)
Location Quality
Good
Location Quality Parameters
Nst= 85, Nph= 85, Dmin=7 km, Rmss=0.22 sec, Erho=0.3 km, Erzz=1.1 km, Gp=32.4 degrees
Event ID#
ci10541957
Additional Information
2-degree map Google Earth KML (Requires Google Earth.)Did you feel it? ShakeMap shaking intensity maps Waveforms 24-hour Aftershock Forecast Map SCSN Moment Tensor Solution Tsunami Information Statement from the WC/ATWC

Who got the Notice of the Park Meetings?

Many readers are reporting that they did not get mailed a notice about the meeting regarding the Proposed Park on Grand Terrace Road on property currently owned by Doug Jacobsen.

It would be interesting to know what mailing list was used. Not all the homes in the area received notices... So is there a list of Citizens worthy of notice and the rest of us are kept in the dark?

This is a strike against the Current City Manager and City Council... This type of selective communication should not be continued.

Friday, February 12, 2010

Prop 84 Funds: for Parks : Thoughts and Ideas

The State of California has a Fund as a result of Prop 84. In that fund there are programs for local or regional parks to be funded. The parks are to be competitive application for funds. So, what is the best application?

The Projects that discourage the use of automobiles, protect agriculture lands, and connect trails and parks like the Santa Anna River to the Ocean Bike Path and trail are the type of projects to be funded.

GT should not buy anymore land from Jacobsen.. or anyone...

Thursday, February 11, 2010

Jacobsen Bail Out: GT or TaxPayers will PAY... SAY NO

Pawww...

There have already been "Public Meetings" on the new park and all the parameters, but went to the meeting as noted within here on Thursday afternoon. This regarding a preliminary, proposed public park on the west side of GT.
It mainly was lead off by Barrie of the City of GT Code Enforcement and weak public attendance. The property under thought for the P.P.P.P. is lying just north of the mobile home park now on Grand Terrace Road (to north of Barton Road).
This property was or is currently owned by the Jacobsen Family as the facts (based upon summer 2009 conversations) are in doubt at this time. An old subdivision lies underneath, and was up for heated comment at a past GT Planning Commission meeting.

1. Zero, nada, zippo Environmental investigation or reports have been done. The process is being done at this time by city of GT staff, and will be done at such time and approved by Sacramento, thus avoiding the City Council and residents. The public, the GT city council, and many others will not be be able to see nor read the whole thing until minutes before it is placed into some big package for mailing. Let us hope it is 100% correct and truthful.

2. The whole situation is based in hurry-up mode as funds are being sought from Sacramento, in the thrilling amount of $5 whole million dollars. An additional $3 million (total of eight then) can become available within one or two years, provided that Sacramento then gives an Okay.

3. Regarding #2 above, the $5 to $8 million in funds are to be used for purchase of two parcels, plus the tear down of two residences lying on north side of the subject property, that plus the main purchase price of the Jaconsen property.

4. Zero, nada, and zippo, street improvements are going to be installed. Even though near every other project in the County of San Beranrdino and the various cities require such, it is not in the budget on this project. The acquisition of the latent properties, and simple construction on-site, have knowingly used up most all of the allocated funds. And so, zero street improvements are being sought.
If enough people make a stink, the improvements will be installed, but the entire city of GT residents will have to foot the bill. If you intend to utilize the park, then you cannot park along the street but instead use the Parking lot.
Residents of GT are also being asked to foot the bill for street improvements associated with improvements along the south side of Barton Road, and those over all connected with the new GT High school. The latter includes widening of Michigan street, and the widening to Center street, and storm drain improvements. The relocation of "In the Way" water lines has already been paid via the residents. (May be why no one has stepped forward with a grant).

5. Why was that particular site chosen then? Best explanation derived from the conversation is that it is based upon the passage a few years ago of Megan's Law. The singular parcel is within near 2000 feet of many parcels on west side of city, that makes it difficult for "New" sex offenders (those that register) to move in to the area. If we have some already, (like living in the trailer park on the south edge) they are supposedly exempt then.

But why not choose a more visible empty lot along LaCrosse street then? One in which the visitors and public could readily see from the Interstate Highway? It comes down to the 2000 feet radii, or if the legislature would have said more feet or less then the parcel would not have been considered.

It is also assumed that part of the Sacramento grant would be for mailing out of letters to the registered Sex offenders to get out of town, for a park is about to be built, and if not, they are going to get the full force of the S.B. County DA's office on their backs then. After all that is one of the major points in locating the park where is is at, and has nothing to do with Jacobsen or the GT city council. Isn't it?

6. During the period up to end of 2009, it was exclaimed loud and clear by former Planner Koontz (on many occasions) that the City of GT had just a couple of percent over the required (by Sacramento) land set aside for public parks. Now that figure included the parcel set aside via the GT Retirement Home. According to Barrie, we are now shy of such a figure by a few percent. The kiddies use of Pico park for baseball purposes, is no longer a consideration now, it is assumed. Thus either the new senior citizen's reflective parks got pulled from the estimate, or someone was lying to us long ago.

7. As a part of #2 and #4 noted above, the city will not be including any lighting for the park. Too expensive. Persons who intend to visit the park are expected to run around during daylight hours only and listen to the boom box music.

8. How many people are for this new park? It was asked if 100% of GT residents are going to be happy with it or not? I understand that via Barrie, "Far" from that sort of quantity approve of such.

9. Per #7 above, there already are insufficient funds to foot the bill for any traffic study, or TRUCKs Prohibited signing that indicates for Truck Traffic to use an alternate way of entering the SCE property on Newport Road (once we get the County Sherrif's Department to patrol and enforce the signage, it will pay for itself then.
It has already been mentioned by a (female) representative of SCE Co. during a city council meeting, although the facilities at the point on cliffs has been in place longer that the city has been incorporated, the SCE Co. will easily pack up and leave for better property they already have, if enough complaints come in via deliveries from truck traffic every day.
Thus the west side would gain a park, and loose the SCE facilities eventually. With every park we gain a few and loose a few.

10. Although the Yet to be Approved City of GT Land Use map says differently, the park property is rubbing elbows with a residential area, across the street, and to north. Guess they will have to move too.


Here is what PAWW THINKS
Doug Jacobsen and the GT RDA would have been REQUIRED to Replace the Mobile Home Park on Michigan that they removed as part of their grand plan of Town Center or what ever it is being called this week.


Doug Jacobsen is now trying to off load this obligation, and the property he purchased for that purpose at the expense of the Grand Terrace City Budget and Expense. Parks cost money, grant or no grant. The investigation of the purchase of those properties may well include the use of the threat of Eminent Domain like the practices use on Barton Road.


Don't support the rush job on this park. The Public should be well informed of the cost, and plan and who is benefiting from the purchase of the land. Why not put the funds into Blue Mt. Park. and still have that land for other purposes. Nope, I am against relieving the burden on Jacobsen. It is time he enjoys the benefits of having used the City of Grand Terrace as his strong arm. He should continue to have to pay taxes on that property. He should also be fined for allowing it to be weed filled.

The Sex Offender Logic is just an example of smoke and mirrors being used to misdirect what is the truth behind the deal.


Nope Bailing Out Doug Jacobsen is not on my agenda as a Citizen of California, or Grand Terrace. It is Time for a Root Beer Float Party in GT.