2004 2005 Grand Jury Report City of Lake Elsinore

.Elsinore Magazine 2. . June 30, 2005 . As we had promised, here are some serious facts to consider. The following is a direct copy of the Grand Jury Report on Lake Elsinore. .Backround: The City of Lake Elsinore is a General Law City incorporated on April 23, 1888 and operates within the paramaters and guidelines of California Law relating to Municipal Government. This form of government provides for a City Council and City Manager. The City Council establishes policy and acts upon legislative matters, approving and adopting ordinances, contract resolutions, and annual budgets. The City Manager is hired by the City Council to supervise staff and serves under a contract. The total adopted operating budget for Lake Elsinore for fiscal year 2003 - 2004. was $34,953,397 The City Council also sits as the executive board of the Lake Elsinore Redevelopement Agency (RDA). The purpose of the RDA is to eliminate blighted areas by encouraging the developement of residential, commercial, industrial, recreational and public facilities. It has the authority to enter into contracts and incur debt. The RDA was established on July 15, 1980 under the State of California Health and Safety Code Section 33000 entitled " Community Developement Law." General Statistics for 2003-2004: a.Population 35,358 b.Average Persons per Household 3.27 c.Average Age 28.7 d.Average Household Income per Year $58,663.00 e.Area Square Miles 38 .Recreation: 1.Lake Elsinores'lake/surface area(acres) 3,000 2.Public Parks 20 3.Diamond Stadium Capacity 6,200 4.McVicker Alliance Skatepark 1 5.Motocross Track 1 6.Sky Diving School 1 " A general plan is a city's statement of its vision for its own future. The vision of the future is a compilation of basic community values, ideals,and aspirations as to how the city's natural and man made environments should be organized and managed." The City of Lake Elsinore has a history of ongoing financial problems as pointed out in two previous Grand Jury Reports dated 1994-1995 and 2001-2002. Findings: 1.) The City Attorney's contract is renewed annually without the open bid process. The City of Lake Elsinore has continually contracted with one legal firm for the last seven (7) years, without competitive bids. For the year 2004 the legal firm required a $7,000.00 per month retainer in addition to a $155.00 per hour fee for legal services!!! The amount of legal services for the year 2004 exceeded $500,000.00 !!! Note: EM2 said:"Not to mention the so called advise that was given that ended up costing our city and the tax payers a bundle!!! ie: The $17 million dollar stadium failure along with Wrongful Death Law Suits because of drownings due to negligence!! And now EM2 has learned that drowning #6 occured approx. 1 week ago. and the aquatic report recommended by the Grand jury 2001-2002 has yet to be done. Five persons drowned fromCity negligence only months apart the same year. 2.) The Grand Jury referred to the California State Attorney General's opinion (02-711, dated October 23, 2002) to clarify city purchases of third party meals by a City Administrator. The attorney representing the City of Lake Elsinore disagreed with the Attorney General's opinion and stated that this law applied only to the City Council members. EM2 knows from city documents that the city credit cards are to be used for city business only. 3.) As of January 1, 2005, Lake Elsinore City Council did not have formal adopted or update policies and procedures that pertain to the following: 1. HWBP (Program terminated in January 2005) ( Health & Wellness Benifit Package) HWBP) 2. Credit Card use 3. Cell phone use 4. Travel Reimbursements 5. City vehicle benefits 6. Car allowances 7. Petty cash reimbursements 8. Per diem reimbursements 9. Meal reimbursements The City's financial division, accepted and approved significant discrepancies in the above programs. NOTE: EM2 states now, and has the documentation to prove it, that, yes, the Health and Wellness Benefit Plan was terminated recently, but not until after some administrators and staff had taken up to 2 years in advance, the $150,00 a month equal to about $3600.00 two years. According, to resolution 88-1 was not to exceed $100.00/month for 5 upper management city employees only!!! Now then, in July 2004, after a letter was sent to the City Council on this very issue, a phone call was received by EM2 editor from a councilperson who stated that his information was flawed. After the councilperson was cornered three times about violating resolution 88-1 by handing out to 14 city employees the amount of $150.00 per month without any kind of updated resolution, this particular councilperson stated, WELL,we just decided to take it! As of October of 2004: a.) The City Council has not had Town hall meetings on subjects important to the citizens. b.) Some Lake Elsinore citizens have expressed concern regarding the current indebteness of the city, concluding that they will ultimately be responsible for repayment of these debts from the general funds, which include: Cost to operate the Diamond Stadium. Cost to subsidize the McVicker Skate Park. Bond and tax debt IN EXCESS OF $170,000,000.00 ($170 MILLION!)!!! Attorney and Consultant fees. Salaries for executives, staff and managers. c.) The first of three(3)Redevelopment Agency (RDA) Bonds was issued October 1, 1994, to finance the Diamond Stadium. The bonds were issued to finance cost overruns of the general fund account, which includes the cost to operate the Diamond Stadium. The City Council passed an ordinance to refinance the bonds by allowing the City to issue "CERTIFICATE of PARTICIPATION BONDS" with the RDA. As indicated above in finding #4b, general funds are being used for the repayment of the bonds. The stadium, since its inception, has been operating at a huge loss. In fiscal year 2003-2004 the stadium expenses exceeded income in excess of $700,000. This situation contributed to the financial problems of the city, causing funds to be diverted from RDA's low and moderate-income housing development program. d.) The City of Lake Elsinore's RDA, as stated in Health and Safety Code Section 33334.2 thru 33334.6 , requires redevelopment agencies to set aside twenty percent (20%) of the property tax increment receipts to a low and moderate income housing fund. This has been validated by Superior Court Case #CIV271683, dated November 14, 1995. This law suit petitions the courts for relief of all city indebtedness by allocating RDA's twenty percent (20%) set aside designated monies to reduce that indebtedness. 5.) The City of Lake Elsinore does not have a salary plan that includes job definition and stated criteria for advancement. 6.) In 1997, land was donated for a potential site of the Diamond Stadium. During the 2004-05 Grand Jury investigation of the donated land, a supplemental agreement document was discovered. This agreement disclosed that fair market compensation would not be realized by the donor if the land was sold to a non-governmental agency within fifty (50) years of the date of donation and the original intent of the donation was not kept. 7.)Based on investigations, one person performs both the duties of City Clerk and Human Resources Director. Some annual personnel evaluations have not been done since 1998!!! One employee has not received an evaluation for seventeen(17)years!!! EM2 said is this what the city calls great management practices??? 8.)The City Council has renewed some local contracts annually rather than using the open bid process!!! Some contracts are incomplete and amendments are unsigned!!!! 9.) The McVicker Skateboard Park is located several miles from downtown Lake Elsinore in McVicker CANYON. The Park is operated under contract to a private company. At the present time it is also,running at a loss!!! The location of the park and lack of public transportation for park users has contributed to this loss and has required the city to subsidize the operation of the park to keep it open!!! "EM2 said councilwoman Kelley told the public the park was operating at a profit." 10.)The preliminary procedure for an Employee Development Program (educational training) does not have appropriate requirements and approvals. 11.) In reviewing the Lake Elsinore General Plan it was discovered: a.)The city General plan, in total,has not been updated since June 1995, but does have a goal to update the land use element/development codes. California State Law,Government Code Section 65300 requires every city and county to adopt a comprehensive, long term general plan for physical development of the community! EM2 says, Yeah! Development of our communities, not the development of someone's wallet !!! b.) The housing element was updated in July 2002. The Circulation Element of the General Plan has not been amended since March 1995. The Traffic Study Report which is a part of the Circulation Element,has not been updated since March 1994. c.) California State Law, Government Code Section 65400(b), requires local governments to provide an annual report to the legislative body on the status and implementation of the original General Plan. Which was adopted on November 27, 1990 and reprinted in March 1995. California Government Code Section 65302 requires planning of the following areas: 1. Land Use 2. Circulation/with congestion management plan. 3. Housing 4. Conservation 5. Open Space 6. Noise 7. Safety d.)In April 2005, the Grand Jury requested the city's status report for the year 2004 and or prior years. The report for 2004 was not submitted to the Grand Jury as requested.It was stated by the planning department, "They did not have the Required Status Reports, because the department was inadequately staffed." EM2 said the Public Records Act does not allow for excuses like that. 12.)The Grand Jury requested information on safety rules and regulations for the use of the lake. The brochures, written only in english, contain important information regarding boating, fishing, and swimming. 13.)As of January 2005, the City Clerk stated that the City of Lake Elsinore had no Mission Statement. RECOMMENDATIONS: a. Lake Elsinore City Council. b. Lake Elsinore City Manager. c. Lake Elsinore City Director of planning. 1. The City Council initiate an independent audit of all monetary charges for fiscal year 2003- 2004 submitted to the city by the City Attorney. 2. The City Council consider making the City Attorney a staff position. 3.The City Council establish a Policy and Procedure Committee within the next (60) days to review and revise current policies for formal adoption. Policies and Procedures must be reviewed and published on an ongoing basis and/or when there is a change of procedures in staff duties. 4. The City Council, in order to be more cost effective, replace all car allowances with the City's approved rate per mile for actual miles driven; and adopt polices and procedures to prevent the misuse of, but not limited to,the following: 1. Credit Card use 2. Cell Phone use 3. Travel Reimbursement 4. Use of City Vehicles 5. Car Allowances 6. Petty Cash Reimbursements 7. Per Diem Reimbursement 8. Meal Reimbursement 5. The City Council improve its level of community outreach through Town Hall Meetings with the citizens of Lake Elsinore. 6. Human Resource Department develop a plan to include job definitions and associated criteria for advancement. 7. In the event the City of Lake Elsinore decides to sell the Diamond Stadium and the land on which it sits, a fair market appraisal should be made to determine an adequate price. 8. The City of Lake Elsinore needs to determine if agreement is valid before tranferring. 9. The City Manager review all existing contracts to assure completness of application forms that require information pertaining to licenses and other pertinent data. 10. The City Council of Lake Elsinore investigate the availability of a local "Community Block Grant Fund," and speciliaze transit fund to provide a transportation system that could bring city youth to the skateboard park. 11.The city Manager must first approve an educational course that is job related and taken at an accredited institution. Sebsequently, the employee must provide proff of a passing grade before receiving reimbursements for tuition costs. 12. The Planning Department of the City of Lake Elsinore update the General Plan that meets California State requirements for General Plans Section 65300 of the Government Code. Produce annual reports in accordance with California State Law, Government Code Section 85400(b) Copies of the plan and report must be available for public review at the City's local library and City Hall. 13.The City Council produce lake brochures in both English and Spanish. 14. The City Council prepare and approve a formal written Mission Statment that states the mission and vision of the city for its future. .Report Delivered: 06/23/05 .Report Public: 06/27/05 .Report Reponse Due: 09/21/05 EM2 said in summary the Grand Jury report points out that the city of Lake Elsinore has been violating all kinds of State Laws even with a million dollar attorney on the scene. How can this council continue to support this attorney. With all of the recommendations that the Grand Jury has set forth, the city attorney should have made sure that policy was first and foremost from day one, as well as the City Council. The attorney and the council have in the past ignored all of the Grand Jury Reports. They all should be taken to court and held liable for all the misuse of funds. The staff would not have abused nor misused the Public Funds without help from higher up. The Grand Jury report all but said it in a nut shell, the City of Lake Elsinore is one more highly corrupted City. ALL OF THE CITIZENS SHOULD BE OUTRAGED AFTER READING THE ABOVE REPORT, and SPEAK UP LOUD AND CLEAR TO THIS COUNCIL. This report has made things damn clear!!! The Empowered City Council that was on watch while the misuse of public funds was taking place is LIABLE!!! EM2 says that the victims, (citizens), and I don't mean just the ones who spoke up all the time, are every tax payer and citizen. Call the Council 951 674-3124. ATTEND THE MEETINGS. IT TAKES MORE THAN A VILLAGE!!!