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Rizzo Plea Deal ‘Validates’ Assemblywoman Reaches Out to Commerce Youth Residents of Bell, Assemblymember Garcia Claims
Montebello Unified School Board Member Montoya Scoffs at ‘Residency’ Claims
By Randy Economy
By Randy Economy
A local Bell-area lawmaker who now serves as a member of the California State Assembly said that the no-contest plea of former Bell City Manager Robert Rizzo “validates” the residents and taxpayers of the small municipality that was thrusted into the national spotlight. Assembly Member Cristina Garcia told Hews Media Group – Community Newspaper in a statement on Thursday that she has “mixed feelings over the plea deal that was announced by Los Angeles County District Attorney Jackie Lacey earlier in the day. “It is with mixed feelings that after three years we close this chapter, but a no contest plea is not the same as a guilty verdict,” Garcia said. “Closing this chapter validates the resident’s efforts in Bell. It reminds us that an informed and involved public can take their government back and that justice can be served. It also sends the message to other predators that this type of behavior will be made public and that they will be punished,” she stressed. “But because there will be no trial so there will be no way to explore or question why Mr. Rizzo chose to prey on the hard working people of Bell. Moreover, there are still other guilty individuals that are not in jail, but more importantly, the City of Bell continues to face the consequences of Rizzo’s regime and the residents will shoulder the burden for many years to come. The city still has a large bond debt, some of the highest property taxes in the county and has more than 3 dozen litigations open against the city,” the first term lawmaker said. “I urge Mr. Rizzo to shed light on all those that participated in corruption in the City of Bell. The public needs to understand how deeply rooted the corruption is in order to remove the offenders and direct their energy to rebuilding their government.” “Today’s plea strengthens my resolve to use my position in the State Capitol to continue to fight against predatory behavior within all levels of government and help create a more responsible and responsive
An appointed member of the Montebello Unified School District Board of Education has denounced claims that he was not a registered voter and did not live inside district boundaries when he was chosen to serve the remainder of a term left vacant due to the death of longtime school board member Marcela Calderon. On Monday, MUSD Board Member Paul Montoya issued a statement to Hews Media Group-Community Newspaper re-
See RIZZO page 9
Assemblywoman Cristina Garcia brought local high school students from Vail HS and Bell Gardens to the State Capitol to participate in a youth forum held on the Assembly Floor in Sacramento. Photo courtesy of Assemblywomen Garcia’s office.
DIRTY WATER: ‘PAY TO PLAY CULTURE’ AT CENTRAL BASIN
California State Controller Orders Cerritos to Sell $170 Million in City Property REPORT CALLS INTO QUESTION ACTIONS BY CITY COUNCIL, CITY OFFICIALS, AND THE OVERSIGHT BOARD FOR “UNALLOWABLE TRANSFERS” OF PROPERTY AND CASH.
Director Vasquez approved contracts for political friend and fiancé’s law firm. By Randy Economy and Brian Hews randy@cerritosnews.net publisher@cerritosnews.net
Despite repeated claims at Board meetings of promoting transparency, embattled Central Basin Municipal Water District Board Director Leticia Vasquez used her newfound-and possibly illegal - majority voting bloc status to benefit longtime personal associates including Maurice Chenier, the law office partner of her fiancé Ronald N. Wilson and another close personal associate Jasmyne Cannick. Chenier was hired as a special attorney and Jasmyne Cannick as a media consultant by the CBMWD in March, raising ire from two elected directors of the agency. CBMWD Director Art Chacon suspects that the two were awarded the lucrative work because of their close ties to Vasquez telling Los Cerritos Community Newspaper in a series of interviews this,
See WATER page 8
See MONTOYA page 8
By Randy Economy and Brian Hews
I
n a devastating blow that will send shockwaves across the city of Cerritos, Hews Media Group-Community News obtained the California State Controller’s Office (SCO) review on Tuesday confirming that transfers recorded by the Cerritos City Council and the Cerritos Redevelopment Agency were unallowable under ABX1 26, and the city must return over $170 million in property and cash to the Successor Agency. Land named in the report include some of the crown jewels of Cerritos: the Los Cerritos Center, the Cerritos Auto Mall, the Cerritos Towne Center, Sheraton Hotel, B & B Stables, Liberty Park and several other parcels. The City must forfeit all proceeds from any sales and also future rents to the State of California. ABX1 26 was passed in January 2011 eliminating Redevelopment Agencies
in California. Under the bill, any assets transferred after the effective date must be returned to the Successor Agency. The ruling demands city officials in Cerritos to sell the properties under the Health and Safety Code Section 34177 (d) (e) with the money disbursed to local taxing agencies. “This is a devastating blow to the city,” said one local Commissioner who did not want to be identified, “ to lose the land and rental income is a huge loss.” The Asset Transfer Review Report was issued by Controller John Chiang and received by Cerritos City Manager Art Gallucci via Certified Mail October 8. The review covered January 2011 to January 2012. HMG-CN obtained the report exclusively that same day. In the report, Jeffrey V. Brownfield, Chief Division of Audits for the State Controller’s officer, informed Cerritos officials that the Cerritos Redevelopment Agency transferred $210,774,198 in assets after January 1, 2011 including unallowable transfers of assets totaling $170,836,440 or 81.05% of the transferred assets. “Those assets must be returned at the Successor Agency to be disposed of as expeditiously as possible and in a manner
See CERRITOS page 9
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WATER
Continued from page 1 “The District apparently has added yet another lawyer and for some unknown reason some sort of media relations specialist, whatever that means.” CBMWD Director Phil Hawkins was even more outspoken telling LCCN, “The very first board meeting, after she was elected, I said her whole plan was basically to hire all her (Vasquez) campaign team, friends, and relatives and put them on staff so they would be ready for her next campaign, and it is all coming true now.” Hawkins went on to say that, “for no reason they fired our attorney, COO, and assistant manager, and filled those positions with her cronies.” Hawkins represents Cerritos on the five member board and is a former member of the California State Assembly. Chacon contends that Chenier and Cannick have no prior experience working for the District and were hired “without process.” at the sole request of Vasquez. Chenier has apparently been hired to investigate possible Brown Act violations related to election of officers, LCCN has determined. Chenier has been charged to “investigate facts relating to agenda posting procedures for January 24, 2013 special meeting to analyze and render legal opin-
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ions concerning procedures.” Chenier will be paid a minimum of $300 an hour plus expenses, he lists his office on Flower Street in Los Angeles. An examination of Vasquez’ 2012 California Form 460 disclosure statements lists Ronald N. Wilson as a multiple contributor and his address as 3700 Wilshire Blvd. Suite 655 Los Angeles, CA 90010. Chenier’s website lists the same address as Wilson’s. “It’s obvious this is a sweetheart deal, literally for the benefit of Vasquez fiancé’s legal associate,” said Chacon. “I don’t think anyone is being fooled by the awarding of this contract to another lawyer who’s website says that he works out of the same office as her fiancé, irregardless of what they the contract states.” As evidence of the deal, LCCN found numerous connections between Vasquez, Chenier, and Wilson. An internal document from Central Basin clearly displays Chenier as having RSVP’d for the District’s January 7, 2012 swearing-in as an invited guest of Director Vasquez, Wilson was also in attendance. An internet search also produced numerous links in which Chenier and Vasquez’ fiancé Wilson are described as “co-counsels.” A lawsuit filed against the City of Lynwood’s Redevelopment Agency show the Law Offices of Ronald N. Wilson & Associates with Ronald N. Wilson and Maurice L. Chenier are described as defendant and respondent for the City. Vasquez served on the City Council in Lynwood at that time and was subsequently recalled along with her colleagues who were later convicted on political corruption charges. Cannick was hired under similar circumstances. At last Monday’s Board
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meeting, staff offered a presentation of “specialized media relations services” to be provided by Cannick. Vasquez did not disclose her prior relationship with Cannick during the presentation. LCCN has obtained a video from the January 7th swearing-in event where Cannick refers to Vasquez as her “good friend.” LCCN also found a Wave Newspaper article dated March 14, 2012 featuring Cannick that refers to her working for various elected officials including Rep. Laura Richardson and former Lynwood Mayor Leticia Vasquez. LCCN’s investigation into Cannick’s hiring has also revealed questionable hiring practices within the District. The District entered into the contract with Cannick on February 1, 2013, but did not obtain signatures until the 15th. In addition almost two months passed before the contract was brought to the Board for review. Interim Chief Operating Officer Dave Hill’s contract was entered into Feb. 1, 2013 and not signed until the 21st. According to Chacon, Chenier and Cannick’s contract were authorized only under the Interim Chief Operating Officer Dave Hill’s spending approval, not the Boards. “Roybal, Apodaca and Vasquez are playing ignorant like they knew nothing about these contracts. They want the public to believe Hill just stumbled upon these Vasquez buddies by chance so it would seem”, stated Chacon. One source who declined to be identified said “I have no doubt that Leticia is leveraging her majority team of Jim Roybal and Bob Apodaca to secure contracts for her supporters and friends, that’s how these type of people operate. I think South Gate Councilman Henry Gonzalez said it best when he stated that Vasquez was ‘as dirty as they come’.”
MONTOYA
Continued from page 1 sponding to allegations written by a Montebello school district voter who claims that he was not a resident of the sprawling district during the time the appointment was made back in 2012. Lorraine Lugo, who identified herself as a resident of the Montebello Unified School District in an email to HMG-CN said that she questions Montoya’s legal residence requirements. “In researching Paul Montoya’s qualifications for re-election and political party status I noticed that he didn’t register to vote within MUSD boundaries until April 9, 2013,” Lugo said. “From September 15, 2004 to April 8, 2013 he was registered to vote in Arcadia according to the LA County RegistrarRecorder/County Clerk. This means he served on the MUSD School Board from February 25, 2012-April 8, 2013 when he was registered to vote and actually voting by mail on at least two occasions in another jurisdiction in violation of state law,” Lugo continued “If Mr. Montoya misrepresented himself to the Board of Education, is the Board’s appointment valid? I’ve attached the vacancy appointment that went out when he was appointed which states that legally the appointee must not be disqualified by state law from serving in order to be appointed.” “In this case, state law precludes someone who isn’t registered to vote in the district from serving on the local school board. Unless you have additional information that I’m not aware of, I am concerned that Mr. Montoya misrepresented himself and that his appointment should CONTINUED ON NEXT PAGE
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be rescinded,” Lugo stressed. Montoya slammed Lugo and her assertions in a written statement. “I was born and raised in East Los Angeles and have live in the Montebello Unified School District for over 36 years. I attended Winter Gardens Elementary, Joseph Gascon Elementary, Eastmont Intermediate, and Schurr High School. I am a product of the district and I am honored to have been appointed to the Board of Education in March of 2012,” Montoya said. Montoya did acknowledge that he lived outside of the Montebello Unified School District for a brief period nearly eight years ago. “I did live in Arcadia the first year of my marriage and I voted there in one election, but my wife and I moved back to East Los Angeles and the Montebello District in late 2005 and have lived here to this date. I updated my voter registration and have voted in my East Los Angeles precinct since 2006,” Montoya said. “At the time I applied for the appointment I met all the requirements, and I still do. I am eighteen (18) years of age or older, I am a citizen of the state, a resident of the school district, a registered voter and not been disqualified by the Constitution or laws of the state from holding a civil office,” Montoya said. Montoya is facing a stiff reelection effort in the November 5th election against two challengers including Edgar Cisneros who is a Field Deputy to Los Angeles County Supervisor Gloria Molina, as well as candidate CJ Salgano who is a recruiter. It is not known who Lugo is supporting in the campaign, and additional emails to her were not returned to the newspaper. “Never having run for public office before, I was warned that it could possibly get nasty or ugly, but I never thought people would spread such blatant misin-
formation,” Montoya said. “If it were a valid issue it would have been raised after my appointment last year and not during this election campaign,” he stressed. “I have faith and confidence that the voters will see right through this political ploy since many of the residents who know me, as well as all the education and community leaders, are whole heartily supporting me in my election campaign for which I am very thankful,” he concluded.
RIZZO
Continued from page 1 government for all,” Garcia’s statement concluded. Garcia is a Co-Founder of the political action committee called the Bell Association to Stop The Abuse, also known as BASTA.
CERRITOS
Continued from page 1 aimed at maximizing value,” Brownfield said. According to sources, the review team for the SCO spent almost a year in Cerritos performing interviews with Successor Agency personnel; reviewing meetings, minutes, resolutions, and ordinances of the Council, the RDA and the Cerritos Housing Authority; reviewing accounting records; and reviewing financial reports. The SCO issued the initial report Aug. 2, 2013, which was reviewed by Cerritos City Attorney Mark Steres. Steres responded by letter dated Sept. 13, 2013, disagreeing with the review results. The SCO Oct. 8, 2013 report disagreed
with all of Steres’ arguments and ordered the City to return the $170 million to the Successor Agency. Findings by the Controller The report goes on in great detail describing the unallowable transfers via financial records obtained during the review. The most egregious transfers occurred during the Mar. 24, 2011 Cerritos City Council meeting where the Council and the RDA approved the sale and transfer of properties to the City amounting to over $120 million. The City Council at the time consisted of Mayor Carol Chen, Mayor pro tem Bruce Barrows, Mark Pulido, Joseph Cho, and Jim Edwards. The first sale of properties within the RDA had a book value of over $75 million with the Council approving purchase by the city of $11 million, eliminating over $64 million because of a “decline in value.” The City argued the value of the land dropped a staggering 85%. The land included in the sale consisted of the Cerritos Towne Center and three dealerships at the Auto Mall- KIA, Land Rover/Jaguar, and Lincoln Station. “That is very suspect,” said one former Mayor of a local city and former California Contract Cities Association President who did not want to be named, “it looks like they tried to transfer the property worth $75 million and buy it for $11 million and keep all the rental income.” The Cerritos Council and the RDA then approved the transfer of over $45 million in book value assets to the City for zero dollar value. That land included the Cerritos Center for the Performing Arts, the former ROP building, B&B Stables, and Milliken Medical. The City Attorney attempted to argue for the transfers, but was soundly rebuffed
OCTOBER 11, 2013
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by the SCO. Another unallowable transfer occurred during the January 26, 2012 Cerritos City Council meeting. The Council approved the sale of future ground rents (years 20122087) from certain Towne Center and Auto Mall properties to the City in the amount of $28 million. Conflict of interest questions were brought forward concerning members of the Oversight Board to the Successor Agency and the approved transfers. Under the direction of the Oversight Board, redevelopment agencies were required to establish a Successor Agency, which would be charged with handling any outstanding debts and winding down the activities of the former redevelopment agencies. The Oversight Board consists of Chairman and former Cerritos Mayor Jim Edwards who was a councilmember during the unallowable transfers, Vice Chair and former Cerritos Mayor Barry Rabbitt, Secretary and Cerritos City Clerk Vida Barone, former Cerritos Finance Director Becky Lingad, current Assistant City Manager Kathy Matsumoto, Director of the Business Services Office for Cerritos College David L. Fattahl, Toan Nguyen, CFO of the ABCUSD, and David Mochiuki. Jacob Roper, spokesman for California State Controller John Chiang confirmed to HMG-CN late Wednesday afternoon that officials in Cerritos must transfer the assets to the Cerritos Assessor Agency “immediately.” “The law is clear, Cerritos needs to comply with the order and the report immediately,” Roper said. “If they don’t comply, a legal order was built into the law to compel Cerritos officials comply with the review,” Roper added, “litigation will not stop the process.” A copy of the report can be found online at www.loscerritosnews.net