By: Libi Uremovic | Original Article at patch.com
Kapanicas was never entitled to be paid for the items on the Invoice.
Alan Kapanicas was contracted as Beaumont City Manager from 1993 to 2011. When Council hired Kapanicas as a government employee in 2011; Kapanicas submitted an Invoice for Development Areas that either were never developed or were developed, but had no bond debt.
From the June, 2011 Agreement:
2.5 Pension. “City agrees to enroll Employee as a member of the Public Employee’s Retirement System (PERS). The City shall purchase five (5) years of pension credit to Employee’s account, with funds presently due and owing Employee’s company GGMS, Inc., for work previously billed but not paid for, in the amount of $214,100.00.”
On October 6, 2015 Beaumont City Council Approved a payout agreement for former City Manager Alan Kapanicas. The 2015 Agreement referenced the $214,100 three (3) times:
“Section 2.5 of the agreement also addresses the $214,100 owed at the time the agreement was made.”
“My client would also expect prompt payment of the $214,100 referred to hereinabove.”
5. “Waiver of Other Obligations and Severance Pay. Kapanicas hereby waives the $214,100 due to him under section 2.5 of the employment agreement and further waives statutory severance pay.”
Aside from the fact that it is a conflict of interest for Kapanicas to sell bonds in Beaumont while acting City Manager; the bonds specifically state that payment for bond services is contingent upon the sale of the bonds.
Area 1A: Never Developed
Area 4: Never Developed
Area 4A; Never Developed
Area 13: No Bond Debt
Area 15: No Bond Debt
Area 19B: Never Developed
Area 19D: Never Developed
Area 19E: Never Developed
Area 19F: Never Developed
Area 20: Bond Acquired April, 2012
Area 21: Never Developed
Area 22: Never Developed
Area 23: No Bond Debt
Area 24: Never Developed
Area 24 Amended: Never Developed
Development 98-1: Never Developed
Kapanicas was never entitled to be paid for the items on the Invoice. Council has no legal right to gift or trade government benefits. The $241,100 should have never been included in any negotiations.
Former City Attorney Aklufi/Wysocki knew or should have known the Invoice was fraudulent.
Acting City Attorney Pinkney knew or should have known the Invoice was fraudulent.