To the Law Firm of Allen Matkins

Either the Information is “New and of Substantial Importance” or Your Client has been Fully Aware of Beaumont’s Illegal Activity.

The Law Firm representing Hidden Canyon Warehouse, Allen Matkins, has written another letter in an attempt to push the Hidden Canyon Warehouse through the Beaumont Planning Commission: http://www.ci.beaumont.ca.us/D…

Below is my direct response to Attorney William Devine and others in the Law Firm. I also sent a picture of former City Attorney Aklufi in case Mr. Devine is also under the impression that California Lawyers are not criminal liable for aiding and abetting government corruption.

William R. Devine

Allen Matkins Leck Gamble Mallory & Natsis LLP

1900 Main Street 5th Floor

Irvine, CA 92614-7321

www.allenmatkins.com

wd*****@al**********.com

RE: Beaumont Hidden Canyon Industrial Park/Timoteo Land Development LLC

Mr. Devine;

As you stated in your Submission dated August 2, 2016: “Under PRC Section 21166, preparation of a subsequent or supplemental EIR is only required in the following circumstances:

“New information of substantial importance, which was not known or could not have been known with the exercise of reasonable diligence at the time the previous EIR was certified, shows the project will have new significant or more severe environmental impacts, previously suggested mitigation measures now would be feasible, or the project proponent declines to adopt such mitigation measures.”

“New information of substantial importance” Let’s start with the most present ‘information of substantial importance’ and work our way back in time.

NO SEWER CAPACITY OR NPDES PERMIT FOR INDUSTRIAL USE:

On July 29, 2016, the Santa Ana Regional Quality Control Board Staff submitted a Report regarding the City’s Sewer Plant including issuing an Investigative Order per Water Code Section 13267: http://www.waterboards.ca.gov/santaana/board_info/agendas/2016/07_22/Item_9.pdf

The Water Board Report lists numerous violations regarding the Beaumont Sewer Plant including Capacity Violations, the inability to produce Title 22 Compliant Recycled Water, and the submittal of forged documents claiming to have no Industry in order to circumvent Federal NPDES Regulations.

The City of Beaumont does not have an NPDES Permit for Industry as required by Federal Law.

The City of Beaumont’s development plan required the production of Title Recycled Water. On August 2, 2016 Beaumont City Council Agenda Item 3.a. Title 22 Engineering Report: http://www.ci.beaumont.ca.us/DocumentCenter/View/27897

It’s not an Engineering Report verifying the City’s recycled water facility, it’s a multimillion dollar ‘to do’ list of what has to be constructed in order to have a ‘recycled water facility’.

But don’t get the millions needed to produce Title 22 Compliant Recycled Water with the $70 Million needed by 2020 for the expansion and Brine Disposal. The reality is that Beaumont’s Sewer Plant is 85 years old and isn’t worth the money it would take to upgrade the plant to accommodate additional capacity.

Let’s review:

No Industrial NPDES Permit. No Sewer Capacity. No Recycled Water.

And didn’t the Beaumont-Cherry Valley Water District state that there will be no Will-Serve Letter Issued to this project until the City can provide Recycled Water to the District? Yes they did.

NO FIRE AND SAFETY SERVICES:

The City submitted a letter from the City of Beaumont Fire Department is the requirements for the buildings, but does not fulfill CEQA requirements verifying the ability of the City to provide fire and safety protection services. Richard Horner, Assistant Fire Marshal that signed the document, is no longer employed with the City.

In the last 20 years the City of Beaumont’s population increased from 8,000 to 45,000, but Beaumont Elected and Appointed Officials stole all the money and never built any fire stations.

Here’s an email from CalFire dated September 25, 2014, telling former Beaumont City Manager Alan Kapanicas “it’s the City’s responsibility to build their own fire stations.” http://beaumontgate.org/news/b…

On October 27, 2015 Calfires Chief Smith reported to Council the need to build additional fire stations: http://beaumontgate.org/news/c…

On November 3, 2015 Agenda Item 4.g. reported that Beaumont’s only two (2) Fire Engines were so old they had to be put out of commission. As the City has NO MONEY TO BUY A FIRE ENGINE, the only option is to lease fire engines from Riverside County: http://www.ci.beaumont.ca.us/DocumentCenter/View/26620

FORGED FINANCIAL STATEMENTS:

The City of Beaumont has forged their financial statements for 20 years and has not produced an Audit for the last three (3) Fiscal Years. The City claims $72 Million in Sewer Machinery & Equipment, $21.5 Million IOU from the Beaumont RDA to the City, and over $200 Million in Bonds that the City does not possess. The City needs to forge Assets in order to offset massive Liabilities.

The 2013/2014 Audit was rejected by Council because it was riddled with false and material misstatements. The City submitted the 2014/2015 Financial Statements to another Auditing Firm a year ago, but the Statements contain the same plugged numbers which will not pass an Audit.

LAWSUITS AND JUDGEMENTS:

The City of Beaumont has over a dozen Lawsuits and Judgements pending: http://www.ci.beaumont.ca.us/D…

Most notably, the Western Riverside Council of Government TUMF Judgement. The City has until October 15, 2016 to ‘make a plan’ to repay over $60 Million within the next 10 years. The City has zero ($0.00) contingency for this debt.

Other Lawsuits the City has already lost is Oak Tree Alternative Case involving Racketeering and Extortion by former Beaumont City Attorney and City Manager, the Hernandez Blinding, and a Wrongful Death.

And then there is the SEC Investigation of Federal Municipal Bond Fraud for which this property is included: http://www.ci.beaumont.ca.us/documentcenter/view/27536

Hidden Canyon Area 4 acquired $2,755,000 from the 1994 Series B Bond. The Area was never developed and the money is gone. The Mello Roos Taxes are still charged to this property. The question is; who’s been paying the Mello Roos Taxes for the past 20 years?

The Bond Fund Accounts show that the City took money from the Bonds to pay property taxes for some of the development areas, which is a misuse of funds. Your Client will need to produce receipts for the last 20 years to prove the property owners paid the Mello Roos Special Taxes and not the City.

And if your Client is paying Mello Roos Taxes, why don’t they demand an accounting of their $2.755 Million?

The CEQA Declarations for this Project that you and your Client continue to cite were written by former Planning Director Ernest Egger, who has been indicted for Fraud and Embezzlement along with former City Manager Alan Kapanicas, former Chief of Police Coe, former City Attorney Aklufi, former Economic Director Dave Dillon, and former Finance Director William Aylward.

Either the above information is “new and of substantial importance” or your Client has been fully aware of Beaumont’s Elected and Appointed Officials illegal activity.

The August 2, 2016 Beaumont City Council Closed Session Agenda included a claim by Pardee Homes: http://www.ci.beaumont.ca.us/DocumentCenter/View/27896

Last year the Beaumont City Council Approved Mello Roos Bond Debt to reimburse Pardee Homes for Mitigation Fees paid, but the City can’t acquire any more bond debt, so now Pardee Homes has filed a Claim with the City.

Pardee Homes can threaten to sue, but there is no recourse under the law for an illegal activity. Trading mitigation fees for municipal bond money violates State and Federal Laws.

Aside from the fact that the City has no money; Beaumont’s Insurance, ERMAC, is a Joint Powers Authority owned by James Gregg, Beaumont’s former Risk Manager. The Insurance Policy doesn’t cover fees collected or illegal activity.

I don’t know who in the City is ‘selling it’ to your Client, but the City is making promises that they can not fulfill in the foreseeable future.