By: Libi Uremovic | Original Article at patch.com
The Bonds Specifically State that the City and Union Bank has only 24 hours to Produce Municipal Bond Documents
The City of Beaumont and Union Bank are refusing to release public records on the $325 Million in Mello Roos Bonds that the City and Union Bank conspired to acquire in violation of just about every law on the books.
The California Public Records Act requires all government agencies to produce public records within 10 days with a 14 day extension if necessary.
Municipal bonds are held to a higher standard.
Beaumont’s Bonds specifically state that both the Trustee (Union Bank) and the Authority (The City of Beaumont) are required all records to be available for inspection and have only 24 hours to produce the records.
Gifted position of City Attorney Pinkney stated in Council on December 1, 2015: “The law does not require the City to do what it is not capable of doing.”
Incorrect.
It is the City’s/Authority/District’s duty of care to uphold the law. The City is “incapable” of producing public records because Beaumont City Council allocated all of the Budget to lawyers and consultants and never budgeted to staff the City Clerk’s Office or the Finance Department.
Gross negligence and incompetence is not an excuse to violate State and Federal Laws.
FROM BEAUMONT’S MELLO ROOS BONDS:
Accounting Records and Financial Statements. “The Trustee shall at all times keep, or cause to be kept, proper books of record and account, prepared in accordance with industry standards, in which complete and accurate entries shall be made of all transactions made by it relating to the Bond proceeds, the Revenues, the District Bonds and all funds and accounts established with the Trustee pursuant to the Indenture. Such books of record and account shall be available for inspection by the Authority and the City, during regular business hours and upon reasonable notice and under reasonable circumstances as agreed to by the Trustee.”
“The Authority shall at all times keep, or cause to be kept, proper books of record and account, prepared in accordance with generally accepted accounting principles, in which complete and accurate entries shall be made of all transactions relating to the Bond proceeds, the Revenues, the District Bonds and all fuss and accounts established pursuant to the Indenture. Such books of record and account shall be available for inspection by the Trustee and the District, during regular business hours and upon twenty-four (24) hours’ notice and under reasonable circumstance as agreed to by the Authority.”
DECEMBER 1, 2015 BEAUMONT CITY COUNCIL MEETING:
125:00 Pinkney: The law does not require the City to do what it is not capable of doing. I appreciate what Mr. Horowitz said and I think City Staff is acting in good faith and doing the best that they can to be responsive and communicating with the requesting party. I’m sure, I’m confident from what Mr. Horowitz said, that it’s not fast enough from their perspective, but the City can’t do what it’s not capable of doing. You’ve adopted a Budget that you have to have to stick with. I think you’ve heard from your City Manager that they’re doing the best that they can. But what we can’t do and won’t do is put people’s confidential bank account information out there in the public domain and expose the liability should someone’s identity be stolen or something worse. We have to balance privacy rights of the individual who’s personal information are contained in these documents and the requesting party’s right to the documents.
128:40 Pinkney: Again I want to reiterate what the City Manager expressed. Union Bank was not cooperative and it wasn’t until we, the City Attorney, sent a letter that we finally got any form of cooperation and that’s wit their their legal counsel now, so we’re having to work with legal counsel. So it’s been a very unusual experience with the banking institution that serving the City’s interest.
130:30 Pinkney: We sent them a letter and gave them deadline which they did not meet. Their Attorney contacted us and requested additional time and they’ve been working with Ms. Jones. They’re basically saying; “We can give them to you, but it’s going to cost you.” and “you might be able to get the records from the D.A.”, so we’ll explore that. They’re entitled to the documents and no one disputes that and we want to get them to Ms. Bingham. I think what you’re hearing tonight is that the Staff is doing the best that they can them and then redact them and provide ‘em to them.