Beaumont City Council Can Not Trade Illegal Invoices for CalPERS.
By: Libi Uremovic | Original Article at patch.com
Libi Uremovic
P.O. Box 2894
Rancho Cordova, CA 95741
(702) 503-2022
li**@li********.net
October 14, 2015
CalPERS
400 Q Street
Sacramento, CA 95811
RE: Alan Kapanicas
On October 6, 2015 Beaumont City Council awarded former City Manager Alan Kapanicas $214,100 that represents five (5) years of ‘pension credit’ that Council traded for unpaid Invoices when Kapanicas was gifted the position of Beaumont City Manager in June, 2011.
Since 1993 Alan Kapanicas has used the position of Beaumont City Manager to funnel money to his company, General Government Management Services. While holding the title of City Manager Kapanicas acquired over $325 Million in Mello Roos Bonds of which he personally profited in violation of California Conflict of Interest Laws.
From 1993 to 2011 the position of Beaumont City Manager was contracted out to General Government Management Services, of which Kapanicas is the Principal. Kapanicas was paid a salary for services rendered as Beaumont City Manager and collected a Fee from every Bond he acquired for the City.
On June 21, 2011 Beaumont City Council hired Alan Kapanicas as a City Employee. The Terms of the Agreement awarded Kapanicas five (5) years of ‘pension credit’ with CalPERs in exchange for Invoices submitted by Kapanicas’ company, General Government Management Services.
Aside from the fact that CalPERS can’t be gifted, it was illegal for Kapanicas to gift a government contract to his own company.
On April 22, 2015, the the FBI and Riverside D.A.’s Office raided the City of Beaumont and Alan Kapanicas’ private home. The State Controller began an Investigation on May 19, 2015.
Beaumont Finance Director William Aylward, Chief of Police Coe, and City Attorney Wysocki have all resigned. Alan Kapanicas requested and Council Approved paid Administrative Leave on May 29, 2015.
Enclosed are the following Documents:
Beaumont June 21, 2011 City Council Agenda Item 4.f: Kapanicas Agreement listing five years of CalPERS in exchange for $214,100 in unpaid Invoices.
Beaumont October 6, 2015 Agenda Item 4.a Agreement to pay Kapanicas $214,100 CalPERS: http://www.ci.beaumont.ca.us/DocumentCenter/View/26492
Documents from Beaumont Municipal Bonds showing that Kapanicas personally profited from ever bond issued to the City.
California State Laws violated in these Agreements.
I am requesting that CalPERS intercede to stop this fraudulent transaction. The State Controller, FBI, and Riverside D.A.’s Office will also be notified.
Please let me know if you have any questions. Thank you.
Libi Uremovic
California Government Code 20300.
The following persons are excluded from membership in this system:
(a) Inmates of state or public agency institutions who are allowed compensation for the service they are able to perform.
(b) Independent contractors who are not employees.
ARTICLE 4. Termination of Membership [20340 – 20343] ( Article 4 added by Stats. 1995, Ch. 379, Sec. 2. )
Cali Govt. Code 20340.
A person ceases to be a member:
(c) If the member has less than five years of service credit, or less than 10 years of service credit if the member is subject to Section 21076 or 21076.5, and no accumulated contributions in the retirement fund at the time of termination of service.
ARTICLE 4. Prohibitions Applicable to Specified Officers [1090 – 1099] ( Article 4 enacted by Stats. 1943, Ch. 134. )
California Government Code 1090.
(a) Members of the Legislature, state, county, district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Nor shall state, county, district, judicial district, and city officers or employees be purchasers at any sale or vendors at any purchase made by them in their official capacity.
California Government Code 1102: Notwithstanding any provision of law to the contrary, a member of the legislative body of any public body or any officer or employee thereof shall not be deemed interested in a contract for the sale of any public securities issued by such public body; provided, that such public securities are sold at public sale to the highest bidder after notice inviting bids has been published as required by the law under which said bonds are issued, or for one time in a newspaper of general circulation not less than five (5) days prior to the date of such sale.
Cali Govt Code: ARTICLE 2. Exclusions from Membership [20300 – 20309.5] ( Article 2 added by Stats. 1995, Ch. 379, Sec. 2. )
20300.
The following persons are excluded from membership in this system:
(a) Inmates of state or public agency institutions who are allowed compensation for the service they are able to perform.
(b) Independent contractors who are not employees.
ARTICLE 4. Termination of Membership [20340 – 20343] ( Article 4 added by Stats. 1995, Ch. 379, Sec. 2. )
Cali Govt Code 20340.
A person ceases to be a member:
(a) Upon retirement, except while participating in reduced worktime for partial service retirement.
(c) If the member has less than five years of service credit, or less than 10 years of service credit if the member is subject to Section 21076 or 21076.5, and no accumulated contributions in the retirement fund at the time of termination of service, unless the member establishes membership in the Judges’ Retirement System, the Judges’ Retirement System II, the Legislators’ Retirement System, the State Teachers’ Retirement System, or the University of California Retirement Plan, or establishes reciprocity with a reciprocal retirement system.
(Amended by Stats. 2014, Ch. 237, Sec. 2. Effective January 1, 2015.)
Cali Govt Code 20341.
When any state member is charged by indictment with the commission of any felony involving the accepting or giving, or offering to accept or give, any bribe, the embezzlement of public money, extortion, theft of public money, perjury, or conspiracy to commit any of those crimes, arising directly out of his or her official duties, and is a fugitive from justice, the board shall conduct an investigation and shall hold a hearing for the purpose of determining whether, in the light of all factors, the offense charged is of such a nature as to justify suspension of his or her membership in this system. If the board so determines, he or she shall be suspended from membership in this system while the charge is pending and until final disposition of the charge. At any time during the period of suspension of membership, the person so suspended shall be entitled to withdraw his or her accumulated contributions from this system, and that withdrawal shall constitute an election to terminate membership in this system.
(Amended by Stats. 1996, Ch. 906, Sec. 29. Effective January 1, 1997.)