Posts Tagged ‘sacramento’

A long habit of not thinking a thing is wrong gives it a superficial appearance of being right  –Thomas Paine

NEWS RELEASE: CALIFORNIA REDEVELOPMENT DEAD ON ARRIVAL?  THE CALIFORNIA REDEVELOPMENT ASSOCIATION AND LEAGUE OF CALIFORNIA CITIES HAVE SUED CALIFORNIA STATE CONTROLLER JOHN CHIANG AND THE DIRECTOR OF THE CALIFORNIA DEPARTMENT OF FINANCE ANA MATOSANTOS.  THE SUPREME COURT HAS MANDATED A STAY OR FREEZE ON ALL CITY REDEVELOPMENT, UNTIL THE ISSUE CAN BE RESOLVED APPROXIMATELY SIX MONTHS FROM NOW IN THE BEGINNING MONTHS OF 2012.  THIS MEANS THAT THE SUPREME COURT HAS MANDATED EXISTING REDEVELOPMENT AGENCIES FROM INCURRING NEW INDEBTNESS, TRANSFERRING ASSETS, ACQUIRING REAL PROPERTY, ENTERING INTO NEW PARTNERSHIPS, ADOPTING OR AMENDING REDEVELOPMENT PLANS ETC.,  AND ESPECIALLY THE FOLLOWING:  ENTERING INTO NEW CONTRACTS OR EVEN MODIFYING EXISTING CONTRACTS.  EVEN THE NEW ORDINANCE ADOPTED BY CITY COUNCIL THIS WEEK IS NOW DOA.

ON JUNE 29, 2011 GOVERNOR BROWN SUSPENDED ALL REDEVELOPMENT ACITIVITIES IN THE STATE OF CALIFORNIA, WHILE CRITICIZING THE AGENCIES FOR DRAINING TAX DOLLARS AWAY FROM SCHOOLS AND PUBLIC SAFETY AT A TIME WHEN REVENUES ARE RUNNING THIN.   THE STATE GAVE CITIES TWO OPTIONS TO THIS SUSPENSION,  AS A RESULT OF THE ABUSES OF REDEVELOPMENT, DISSOLVE IT OR CONTINUE IT.  IF YOU CHOOSE TO CONTINUE, THE PAPERWORK THE STATE EXPECTS CITIES TO FILL OUT, IS TEDIOUS, AND THIS HAS UPSET MOST CITY GOVERNMENTS AS OURS. THEREFORE, OUR CITY ISSUED AN ORDINANCE TO CONTINUE THE VOLUNTARY REDEVELOPMENT PROGRAM.  THIS CHOICE TO CONTINUE BECOMES AS THE STATE CALLS IT “ VOLUNTARY CHOICE”. THEREFORE ENTERING INTO THIS CONVENANT CITIES ENTER A MORE STRUCTURED PROGRAM TO FORCE THE CITY TO BECOME MORE RESPONSIBLE, THIS IS WHAT THE STATE’S VIEW THAT IT WILL MITIGATE ABUSE OF FUNDS. 

THIS IS WITH CONSIDERATION OF THE MERE FACT THAT THE CITY WILL HAVE TO PAY FOR BONDS JULY, 1, 2012, AND WE WILL NOT BE ABLE TO PAY FOR IS A FACT, AND EX-RIVERSIDE CITY MANAGER BRAD HUDSON IS RESPONSIBLE FOR THIS.  THE COMMUNITY OF RIVERSIDE WILL INADVERTANLY HAVE TO PAY FOR THIS THRU HIGHER UTILITIES SUCH AS ELECTRIC, WATER AND SEWER FEES.  IF YOU LOOK A OTHER CITIES, YOU WILL REALIZE WHAT 2 BILLION OF CONSTRUCTION REALLY LOOKS LIKE. REDEVELOPEMENT CRITICS SAY THAT, TOO OFTEN, THE MONEY BENEFITS PRIVATE BUSINESSES AND STEAMROLLS PROPERTY OWNERS.  ASSEMBLYMAN CHRIS NORBY, R-FULLERTON, SAID THE AGENCIES LONG AGO OUTLIVED THEIR USEFULNESS AND SHOULD BE SHUT DOWN, PARTICULARLY AS THE STATE CONFRONTS A $25.4 BILLION BUDGET GAP. BUT IN THEIR ARROGANCE, THE CITY OF RIVERSIDE DID NOT TAKE THIS SUSPENSION WELL, THEIR ENTITLEMENT WAS CLEAR, GOING AS FAR AS CALLING THE OBLIGATION PAYMENT  “RANSOM” AND A FORM OF “THEFT“.  AS INDICATED ON THEIR WEBSITE.  YOU WOULD THINK THAT THE CITY OF RIVERSIDE WOULD BE ON THE TEAM EFFORT AGAINST SUPPORTING SUCH WASTE, BUT ARROGANCE IS DEEP SEATED AND IRREVERSIBLE AS A MALIGNANT CANCER THAT IT HAS LED THEM TO SUE THE STATE.  THE STATE IS YOU THE TAXPAYER.  THE CALIFORNIA REDEVELOPMENT ASSOCIATION AND CALIFORNIA LEAGUE OF CITIES, OF WHICH MAYOR LOVERIDGE IS PART OF, ARE TAXPAYER FUNDED LOBBYING INTEREST GROUPS WHICH ARE SUING YOU (TAXPAYER) TO GET THEIR SPENDING MONEY.  IT’S AS IF YOU GIVE A CHILD AN ALLOWANCE, WHICH THEY KEEP SPENDING AN IN TURN, THEY KEEP COMING BACK TO YOU FOR MORE.  THE REAL SAD CONTRADICTION IS THAT YOU (TAXPAYER) ARE ALSO PAYING THE LITIGATION FEES TO SUE YOURSELF FOR MORE OF YOUR MONEY.   THE CALIFORNIA REDEVELOPMENT ASSOCIATION AND CALIFORNIA LEAGUE OF CITIES FUNDED A CAMPAIGN THAT ULTIMATELY STOPPED SERIOUS EMINENT DOMAIN REFORM IN CALIFORNIA, LEAVING PROPERTY OWNERS VUNERABLE TO SEIZURE IF CITIES FIND A BETTER USE FOR THEIR LAND OR BUSINESS. 

BUT HOW MUCH DEBT SERVICE ANNUALLY IS THE CITY OF RIVERSIDE PAYING ON RENAISSANCE PROJECTS?  IF $1.58 BILLION IS THE TOTAL FOR DOING ALL RENAISSANCE PROJECTS, WHAT’S THE TOTAL COST WITH INTEREST OVER THE LIFE OF ALL THE BORROWED MONEY?  IN OTHER WORDS, WHEN IT’S ALL PAID OFF, WHAT WILL THE TOTAL COST BE?   THIS WOULD THEREFORE BE A PROJECTION, BECAUSE BONDS COULD BE REFINANCED OR PAID OFF EARLY DEPENDING ON THE ECONOMY ETC.  WE MUST ALSO TAKE INTO CONSIDERATION WHAT THE LONGEST TERM OF BORROWING FOR THE RENAISSANCE PROJECTS, SUCH AS 30 YEARS ETC.

SO, TOTAL NEW MONEY BONDS ISSUED DURING THE PERIOD AMOUNT TO $1,084,051,402, INCLUDING NON-CONSTRUCTION PROCEEDS, AS INDICATED IN TABLE 1.   THE FOLLOWING IS A LIST OF OTHER FUNDING SOURCES IN THE RENAISSANCE: 

1. DEVELOPMENT IMPACT FEES.

2.USER FEES.

3. STATE, FEDERAL AND REGIONAL GRANTS.

4. LAND SALE PROCEEDS.

5. PRIVATE FUNDING- SUCH AS RAILROADS, DONATIONS ETC.

6. GENERAL FUND CASH.

7. RDA TAX INCREMENT.

8. CERTAIN OLDER RDA BOND PROCEEDS ALLOCATED TO RENAISSANCE.

9. CERTAIN MEASURE-G PROCEEDS ALLOCATED TO RENNAISSANCE.

10. FUTURE PLANNED RIVERSIDE CONVENTION CENTER BOND ISSUE.

THE ANNUAL DEBT SERVICE AMOUNT VARIES BUT TYPICALLY IS IN THE MID $60 MILLLION RANGE FOR 2012 AND EVEN 2013, AS INDICATED IN THIS TABLE 2.  IN YEAR 2014 THERE IS A BALLOON PAYMENT THAT WILL LIKELY BE REFINANCED.  IT IS WORTH MENTIONING THAT THE VAST MAJORITY OF THE DEBT IS UTILITY DEBT, WHICH THEY ROUTINELY CARRY AND WOULD HAVE REGARDLESS OF THE RENAISSANCE.  THE ACTUAL APPROXIMATE COST OVER THE LIFE OF DEBT WOULD HIT THE $2.0 BILLION MARK.  THEREFORE, BASED ON THE APPROXIMATE POPULATION COUNT IN THE CITY OF RIVERSIDE, EVERY MAN, WOMAN AND CHILD IN THE CITY WILL BE LEFT TO PAY FOR THE RIVERSIDE RENAISSANCE IN INCREASED SEWER, WATER, ELECTRIC, PARKING AND GENERAL FUND REPLACEMENT.  THE $2.0 BILLION BREAKDOWN IS AS FOLLOWS:  THE PRINICIPAL IS $1,084,051,402 AND THE INTEREST IS $979,022,581.  TODAY, THE COST TO EACH INDIVIDUAL WILL BE APPROXIMATELY $6,660.00, OR A FAMILY OF FOUR WILL HAVE TO PAY OUT $26,400.00. 

JOHN CHIANG, WHERE ART THOU? YOU CERTAINLY ARE NOT IN RIVERSIDE….

UPDATE:08/28/2011: OF COURSE, THE CITY OF RIVERSIDE AND THE CALIFORNIA REDEVELOPMENT ASSOCIATION, A TAXPAYER LOBBYING GROUP, WON’T TAKE NO FOR AN ANSWER ON THE SUPREME COURTS RULING OF PLACING A STAY ON ALL REDEVELOPMENT.  MOST HAVE SAID SINCE IT WAS LEGISLATED IN, IT CAN BE LEGISLATED OUT.  BUT THE CRA, WHO SUED THE STATE ON THE CITY’S BEHALF DID NOT LIKE THE RULING.  THE CRYSTAL CLEAR RULING PLACES A STAY ON ALL REDEVELOPMENT ACTIVITY UNTIL THE ISSUE CAN BE RESOLVED IN JANUARY 2012, THIS IS TO PREVENT FURTHER QUESTIONS OF FINANCIAL MOVEMENT.  BUT THE CRA HAS NOW ASKED THE SUPREME COURT FOR A CLARIFYING ORDER WHICH WOULD ALLOW LOCAL REDEVELOPMENT AGENCIES WHICH HAVE ADOPTED ORDINANCES TO THE NEW VOLUTARY STATE RULES, PAY THE ENFORCEMENT OBLIGATION PAYMENTS AND CONTINUE TO  DO LOCAL RDA BUSINESS AS USUAL.  BUT WHAT IS QUITE IRONIC IS THAT THE CRA AND THE CITY DID NOT LIKE THE VOLUNTEER PROGRAM TO BEGIN WITH, THAT’S WHY THEY ARE SUING.  SINCE SUING THE STATE PLACED A STAY ON ALL ACTIVITY, THE CRA AND THE CITY NOW WANT THE STATE TO NOW HONOR THE VOLUNTEER PROGRAM IN THE INTERIUM, THAT THEY ORIGINALLY SUED AGAINST.  GO FIGURE? 

KEEP CONNECTED WITH TMC, RATED RIVERSIDE’S MOST “SLANDEROUS”  BLOG SITE! NOW EXCLUSIVELY ON FILE WITH THE RIVERSIDE COUNTY DISTRICT ATTORNEY’S OFFICE… 

Press Enterprise reports DeSantis hired back to Moreno Valley by Moreno Valley City Manager Henry Garcia to review Public Works via a contractual agreement. The City Council did not have to approve the contract, because Garcia authorized the money from his (slush) discretionary fund.  Henry Garcia stated, “There is no relation between what occurred in Riverside and Tom DeSantis’ talents, he has a very distinguished reputation for analysis in Riverside.”  Garcia contracted DeSantis three months ago, paying him $100 an hour for 140 hours of work.  As an independent contractor, hopefully Garcia 1099 him, and this can be found through the public records act.  Is Garcia drinking the Kool Aid when hiring DeSantis or was this part of his orchestrated schpeel?  Moreno Valley just brought Tom DeSantis up a notch by calling him “distinguished”, but then you must consider the source.  This is a similar to the accounting of Sacramento County Chairwoman Roberta MacGlashan, where she said officials don’t believe Riverside’s City Manager Brad Hudson ordered Riverside city contracts steered to friends.  Well, OK, but you are still required as a steward of the people to investigate.  Brad Hudson worked for the County of  Riverside, and when he departed to the City of Riverside, he not only brought over Belinda Graham from San Bernardino County, but brought DeSantis, Tina English, Deanna Lorsen, and later, the new kid on the block Emilio Ramirez all from Riverside County.  But is history repeating itself? Or does Moreno Valley fit the profile of the track record of the imcomperable Mr. DeSantis?  Has he been tagged as unhireable?  City Manager Henry Garcia left the City of Rialto as City Administrator in February of 2011.  Incidently, Joe Baca Jr. is Councilman for the City of Rialto, the son of  Congressman Joe Baca, who represents the 42nd District, of which the City of Rialto is a part of.  Get the picture?  Just recently, Tom DeSantis had applied for the position of Town Manager in Gilbert, Arizona, but raised red flags when his past service came into question.   Sources have indicated that he originally left the County of Riverside due to allegations of sexual harassment.  There has been similar indications of these allegations with the City of Riverside.  Then there is the coups d’état, the allegation of brandishing the firearm, and there is more, the badges, the holsters, the illegal gun purchases, the concealed weapons permits, the post-it notes documentation of public vehicle use and the illegal cold plate vehicle use, and of course, there is much, much, more….  What is it about this culture of corruption, that appears to turn the other ear to the constituents welfare?  DeSantis, the fall guy for City Manager Brad Hudson…….will he be the fall guy for City Manager Henry Garcia?  Then there was the sorted tale of Ex Moreno Valley City Manager Robert Gutierrez, who resigned in 2009 while facing seven misdemeanor charges involving sexual harassment. No matter how agregious the crime, you still get an enormous payout by the taxpayer! The filo dough is just about to seperate and unfold on this one. 

UPDATE: 06/29/2011: How closely tied is the City of Riverside and Moreno Valley?  Closer than you think…  Barry Foster, Moreno Valley’s Economic Development Director is the husband of Siobhan Foster, the City of Riverside’s Public Works Director.  Now Riverside’s Ex Assistant City Manager Tom DeSantis has been hired by the City of Moreno Valley to review Public Works.  Will Tom DeSantis now maintain an inter-city collaboration with Siobhan Foster concerning issues of Public Works?  Is Tom DeSantis even qualified to review Public Works?  Garcia, formerly city manager of Rialto, said he has known DeSantis more than 20 years since both were administrators in San Bernardino County. Is this close culture of networking responsible for the problems California is experiencing?  Is this all in the family? or just part of the family business?

UPDATE: 06/30/2011: Undisclosed sources are allegedly stating that Riverside’s Human Resource Director Rhonda Strout is the girlfriend of Moreno Valley City Manager Henry Garcia.   The close tie would have enabled Garcia to receive a true account and background check of Riverside’s Ex Assistant City Manager Tom DeSantis.

MORE TO COME, ANONYMOUS SOURCES WELCOMED, DOCUMENTATION AND PHOTOS WELCOMED, KEEP CONNECTED WITH TMC, MAKING THEM HONEST, AND HELL, IT AIN’T EASY….