Oh What A Tangled Web…

THEY WEAVE

I just received the results of my latest Public records Request  for the documents surrounding the “Consent Calendar “approval of the City of Wildomar  becoming the “front” for the  local charter school, Sycamore Academy, to secure a $15,000,000 bond  through the California Municipal Finance Authority (“CMFA”).

Rather than answering my questions, these documents have only created more questions.

Apparently, the genesis of this agenda item came from the Sycamore Academy  and was funneled through the office of the Planning Director,  Matt Bassi, and the office of the  City Engineer/Public Works Director,  Dan York.

The question is, why would a financial matter be addressed by city officials, whose scope of work is related to construction projects,  not  financial matters,  within the City of Wildomar?

Noteworthy quotes, contained within the  various e-mails archives follows:

1)  E-mail response from Matt Bassi to the principal of the Sycamore Academy, Barbara Hale,  dated May 01, 2014: “Our intent is to have the report on the Consent  Calendar, but it may be pulled for questions.”

The question is, since the Consent Calendar is intended for  “non-controversial” matters, why would the Planning Director  want to slide this matter on to the Consent Calendar, acknowledging that “it might be pulled for questions?”

2) E-mail from the attorney representing Sycamore Academy  to Matt Bassi, dated, April 03, 2014: “We are moving along with the due diligence on the  23151 Palomar property for Sycamore Academy. We have an environmental study that is about to get underway. .. As soon as that study is complete, we’ll proceed with the earthquake fault study…”

The question is, if Sycamore Academy is doing their due diligence regarding earthquakes and other environmental issues, why wouldn’t the City of Wildomar take the time to do their due diligence regarding the  ability of Sycamore Academy to pay for the principal and interest  on a  $15,000,000 bond  and which  is made possible by the City of Wildomar  resolution?

 3)  E-mail response from  Matt Bassi to the attorney for Sycamore Academy , dated April 03, 2014:  ” Dan and I discussed this with Gary and he was not specifically familiar with this particular bond idea.”

One of my specific requests was a copy of the legal opinion provided by the City Attorney  with regard to this agenda item. However, there apparently was no legal opinion from the City at Attorney  so the  publicly uttered statement by City Manager Gary Nordquist that there is no  potential obligation whatsoever  on the part of  the City of Wildomar is baseless.

The question is, can anyone, including the City Attorney, guarantee that the City of Wildomar will not be named and, as a result, be required to defend itself in a  bondholder lawsuit, if Sycamore Academy somehow defaults  on their bond repayments?

Finally, despite sounding like  an official government organization,  that California  Municipal  Finance Authority   is actually a part of the 501(c)(3)  non-profit organization known as  California Foundation for Stronger Communities.

For additional information, please click on the following link:

http://projects.propublica.org/nonprofits/organizations/201508498

For additional information on the entire issue, including potential for conflict of interest,  please click on the following link:

http://liberty-tribune.com/explore/cities/apple-valley/item/261-apple-valleys-conduit-financing-with-cmfa-potential-conflict.html

The question is, does anyone in the City of Wildomar have any questions for your City Council?

If not, please meekly and quietly return to your Facebook page  and prepare for your next happy park event.

Comments can be made to zakturango@excite.com.

 

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