During Closed Door Session at tomorrow’s city council meeting (10/08/13) City Manager Carlos Palacios’ performance will be evaluated by the City Council.
I wouldn’t doubt that Palacios will receive a favorable review regardless that during his tenure two recent Grand Juries and last January’s Superior Court Ordered Performance Audit found a serious lack of transparency, failure to comply with State mandated fiscal reporting requirements, and that without borrowing 5 million from internal funds we would be facing bankruptcy. The other obvious only requires a drive around our city which is severely dilapidated, is littered, and overgrown with weeds.
This past May, after receiving an anonymous letter accusing City Manager Palacios of having a “special” relationship with a city employee, I found that the employee received a $189,910.00 down payment loan to purchase a new townhouse for $365,000.00 in 2005. The down payment represents 55% of the purchase price. And, the loan doesn’t have to be repaid for 40 years or unless the home is sold, whichever comes first. Although, the amount of the loan and repayment requirements is alarming, the loan is illegal because the money was obtained from Redevelopment Agency Funds. Redevelopment Agency Funds can be used by first time homebuyers for down payments, but the limit at the time was $50,000 or less. At the very least, the loan limit was exceeded by $139,910.00. Not only is the loan illegal, an attempt was made to conceal it. You know, like a fire truck?
Some of the funds from the Redevelopment Agency (RDA) were intended to reduce dilapidation. For example, the City has a Façade Improvement Program for downtown businesses. In 2005, when the city employee received the $189,910.00 loan, 4 downtown business received loans from RDA funds to repair their facades. They received a total amount of $63,532.00. How can City Manager Palacios justify providing a city employee a loan with RDA funds that is 3 times the amount the 4 businesses received just in 2005? And, after 2005 and up until November 2010 the City only provided 2 loans to business for their facades for the total amount of $26,503.00. Here we are, unable to attract any new downtown businesses because some buildings look dilapidated and we instead provided questionable loans to city employees?
The City Council is fully cognizant of the questionable loan and other loans to city employees, yet they are not requesting an independent investigation? They may find that the city gave out over 40 loans, some to city employees, to assist a developer to sell his 60 unit complex back in 2005. And, something smells real fishy regarding the amount of the loans and the purchase price for those units. Then there is their Oath to uphold State and Federal laws which do not condone misuse and/or embezzlement of city funds. One has to question if incompetence and misconduct are being disregarded because Palacios is Latino and/or because corruption has a vice-grip in our city?
City Manager Palacios Is Asking for More Money
Our police cars, most with over 150,000 miles, and equipment is in dire need of replacement. The fire department also has similar problems. But, City Manager Palacios’ has an idea to remedy this serious problem- increase our taxes and a bond measure!
I doubt that Palacios’ primary intent is to replace police and fire equipment because keep in mind that to prevent the city from going bankrupt, Palacios resorted to inter-fund loans. The city borrowed $5.3 million from the Solid Waste Utility Fund, Sewer Utility Fund, Gas Tax, Impact Fee Fund, Library Fund, Water Utility Fund and Parks Development Fund. It seems he has run out of places to borrow from so now he wants us to dig into our pockets to save his job and rear….I mean… career. But, let’s say that voters are bamboozled into believing that the new tax and bond money will be strictly used for our police and fire departments, what will stop Palacios from taking the money and instead utilizes it to balance the budget, so the city won’t go bankrupt? A costly lawsuit could be filed to prevent him from doing that after the fact, but who will file the lawsuit…taxpayers with their own money while the city defends the lawsuit with taxpayer money?
City Manager Palacios has not provided us with any ideas how he anticipates creating new and needed revenue in the near or distant future. The crony delusional dreamer, who wrote a letter to the editor of a local publication, believing that sidewalk cafés will soon dot the Main St. landscape, does not realize that private money is needed from business owners willing to invest in Watsonville? Considering that the old Gottschalk building has remained empty for over 5 years, I don’t anticipate a flock of investors to soon infiltrate Watsonville. Therefore, what can we anticipate every time the city lacks the funds to operate on a daily basis…an increase in taxes and threats of reducing police and fire services? We have already paid for these two required Constitutional services.
We can’t continue rewarding incompetence and misconduct with extended contracts and in the process reduce a once thriving city to being a continually bailed-out dilapidated community. The City Council has a duty to hire competent and transparent personnel not only to properly manage our city, but also to assure that our tax dollars are not being used for personal gain and gratification. Maybe what is needed is a Writ of Mandate against the City Council?