Take Pio Pico Park out of state hands

Anonymous. San Gabriel Valley Tribune. West Covina, Calif.: May 17, 2011.

WHEN Pio Pico lived in Whittier, his allegiances were many. He was born a citizen of New Spain, part of the Spanish colonial empire. Later he became a Mexican citizen and then, after California became part of the United States, the last governor of Alta California became a U.S. citizen, albeit reluctantly.

The one-time successful businessman had strong ties to Los Angeles (he made it the provincial capital) and to Whittier, where he built his home as part of the Rancho Paso de Bartolo, where he lived until 1892. Ties to the state and the U.S. – not so much. The man even argued for the British to take over California.

His fascinating story tells a big part of the history of Whittier, Los Angeles, Southern California and its myriad Mexican-American contributions. But his old house played only a small part.

Pio Pico is buried in the El Campo Santo Cemetery, now a part of the the Homestead Museum in the city of Industry, not at Pio Pico State Park. And he also built the Pico House, the first three-story hotel in Los Angeles, which is part of the El Pueblo De Los Angeles Historical Monument in downtown L.A.

Seems like his ties to Industry, Whittier and Pico Rivera are strong – stronger than his ties to a state he did not want. But we’re not suggesting that Gov. Jerry Brown’s plan to close Pio Pico State Park beginning July 2012 is payback. It’s simply part of the state’s financial debacle. But we are saying that the closure of the park, which includes his home, El Ranchito, one of the few remaining 19th-century adobe structures, is understandable. It may even be prudent.

The five-acre state park at 6003 Pioneer Blvd. has seen only a few thousand visitors a year since its renovation in 2003. Other state parks to be closed include even less-visited sites. Not on the list are the most-frequented state beaches and state parks and campgrounds.

So the impact of a closed Pio Pico State Park will be small.

But it also doesn’t have to be permanent. In fact, there’s talk about local governments taking over Pio Pico Park and running it as a joint powers authority. The idea, from Whittier Councilman Greg Nordbak, calls on Whittier, Santa Fe Springs, Pico Rivera and the county of Los Angeles to run the park. It is an idea that makes a lot of sense and should be pursued.

First off, the city of Whittier already owns the grounds. All that would be required is for the state to deed the house over to the city or cities.

As strong believers in the educational power of preservation, we do not want to see the adobe closed to the public for an extended time. Also, the state and these cities need to make sure the circa-1850 home does not fall into disrepair. Its integrity must be assured during the closure.

Perhaps a joint-cities venture, combined with a privately funded nonprofit, can do a better job than the state of keeping this important link to California-Mexican history alive and thriving.

Pio Pico State Historic Park slated to close

Anonymous. San Gabriel Valley Tribune. West Covina, Calif.: May 13, 2011. 

WHITTIER – A week after officials celebrated the 210th birthday of Pio Pico, the park bearing the name of the last California governor under Mexican rule is on the list of state park closures.

California State Parks announced Friday a plan to close up to 70 of its 278 parks due to budget cuts.

The closures are necessary to achieve an $11 million reduction in fiscal year 2011-12, and $22 million in fiscal year 2012-13.

“It’s not unexpected, but it is still heartbreaking,” said Carolyn Schoff, president of the Friends of Pio Pico, a local nonprofit organization dedicated to providing cultural and educational activities at the park.

Pio Pico State Historic Park features one of southern California’s few remaining 19th century adobe structures.

“Everyone wants to save the park, but of course it’s a matter of money,” Schoff said. “We’ll reach out to the state to let them know how important the park is to the community.

“Fortunately, the closure is not scheduled for final closure until July 1, 2012, so we have some time to think of ways to keep it open.”

To save money, the park is only open on Saturdays and Sundays, with tours available by appointment.

In the early 2000s, the park was host to about 12,000 visitors annually, Schoff said.

But now, because it is only open two days a week, attendance has dwindled to a few thousand a year.

The annual operation budget, when it was open five days a week, was about $500,000, Schoff said. Now it’s half that amount.

The cuts were mandated by A.B. 95, which was passed by the Legislature and signed into law by Gov. Jerry Brown in March.

“We regret closing any park,” said Ruth Coleman, director of California State Parks, “but with the proposed budget reductions over the next two years, we can no longer afford to operate all parks within the system.”

The five-acre park, located at 6003 Pioneer Blvd., is the site of “El Ranchito,” Pico’s house, which was first built in the 1850s.

“The biggest concern for us is the integrity of the home,” Schoff said. “If the park goes to caretaker status, there could be considerable deterioration of the adobe.”

When the park reopened in 2003, after it was closed for $5 million in renovations due to damage from the Whittier Narrows and Northridge earthquakes, it was fully staffed, Schoff said.

Now it has four employees and volunteers to run the tours and maintain the grounds.

Whittier Councilman Greg Nordbak said the cities of Whittier, Pico Rivera and Santa Fe Springs, along with the County of Los Angeles could take over the park through a joint powers authority.

“It’s critical it’s kept open because it’s a huge part of state history,” he said. “We need to ensure the ability of schoolchildren to visit the park.”

In 2009, Nordbak was delegated by the council to talk to other city and county officials about the prospect of making it a regional park. Taking over the park would require the state to deed over the house.

The city of Whittier already owns the grounds.

Schoff is concerned that vandalism could be a problem with its closure.

“Damage could be irreparable,” she said.

Parks were selected for closure based on several criteria including attendance, the amount of revenue each raises, statewide significance and the ease of closure.

Pico Rivera says decline in bond rating will have no effect on projects

Ruby Gonzales. Whittier Daily News. Whittier, Calif.: May 12, 2011. 

PICO RIVERA – A rating agency’s decision to downgrade the Pico Rivera Public Financing Authority’s 2009 bonds from A+ to A won’t affect the projects funded by the bond, including the renovation of the library, four of the city parks and street improvements, according to city officials.

But if Pico Rivera decides to sell the same type of bonds, called a lease revenue bond, the rating change could lead to the city getting bond insurance or a less favorable interest rate.

“It will basically have no effect because we are not expecting any bond sales,” City Manager Ron Bates said Thursday.

Fitch Ratings lowered the rating on the $32.9 million in bonds citing several reasons, including lower-than-projected revenues from the city’s 1-percent sales tax hike approved by voters in 2008, declining property tax revenue due to consecutive yearly declines in assessed valuation and weak collection rates, and the city’s use of general fund revenues to backfill some redevelopment obligations currently not covered by tax increment revenue.

But Fitch also gave the city a general obligation bond rating of A+ and said its rating outlook is stable.

“Even with the downgrade to A, we consider that a pretty high rating,” said Stephen Walsh, who is one of Fitch’s directors and the primary analyst on the report.

The passage of Measure P bumped up the sales tax in the city to 10.75 percent. While the increase in sales tax helped offset declines in other tax revenues, the ratings agency said it has made Pico Rivera more dependent upon it. In fiscal year 2010, Fitch said sales tax made up more than one-third of general fund revenue.

Walsh said the sales tax hike isn’t bringing in as much as Pico Rivera officials had expected.

“We estimated $6 (million) to $8 million. It’s coming in lower. Because of the recession, retail sales are lower,” he said.

“Sales tax is a pretty sensitive revenue. It goes up and down.”

Measure P brings in about $6 million a year.

“We disagree with some of the arguments Fitch is making. Our sales tax isn’t falling off (more) than others,” Bates said.

He said the fact it’s 30 percent of the general fund doesn’t show a reliance on it. Bates said other cities rely more on sales tax.

“I think their (Fitch Ratings) premise is wrong,” he said.

Fitch Downgrades Pico Rivera Public Financing Authority, CA’s Lease Revs to ‘A’; Outlook Stable

Anonymous. Business Wire. New York: May 11, 2011. 

In the course of routine surveillance, Fitch Ratings takes the following actions on Pico Rivera Public Financing Authority, CA (the authority):

–$32.9 million 2009 lease revenue bonds downgraded to ‘A’ from ‘A+’.

In addition, Fitch assigns an implied general obligation (GO) bond rating of ‘A+’.

The Rating Outlook is Stable.

RATING RATIONALE:

–The downgrade reflects increased financial vulnerability due to lower than projected revenues from the city of Pico Rivera’s (the city’s) voter-approved 1% sales tax, declining property tax revenue due to consecutive annual declines in assessed valuation (AV) and weak collection rates, and it’s intention to use general fund revenues to backfill some redevelopment obligations currently not covered by tax increment revenue;

–Despite increased financial vulnerability, Pico Rivera has maintained a favorable financial position, with good general fund levels and balanced operations;

–The city’s economic stability is supported by its proximity to the large and diverse Los Angeles regional employment market;

–An increased sales tax rate has helped to offset recent declines of taxable sales and other tax revenues, but has resulted in concentration in this economically sensitive revenue;

–Additional credit concerns include very low recent property tax collection rates, the exceptionally high sales tax rate, and potentially unsustainable employee retirement benefits;

–Economic indicators are mixed, with slightly declining population, low per capita income levels and above-average unemployment compared to the nation, yet stronger indicators related to poverty levels and household income;

–Debt levels are low to moderate and capital needs are limited, however amortization is slow and debt practices are somewhat unconventional;

KEY RATING DRIVERS:

–The city’s ability to maintain its financial position amid challenging economic conditions;

–The performance of the local and regional economy.

SECURITY:

The bonds are secured by the city’s lease rental payments to the authority, subject to annual appropriation by the city for use and occupancy of the leased assets, and subject to abatement. They are supported by a standard three-pronged debt service reserve, property insurance, and two years of rental interruption insurance. Leased assets include several city administrative facilities as well as city parks.

CREDIT SUMMARY:

Pico Rivera is a mid-sized city within the vast southern California metropolis. It has a population of approximately 63,000 in an 8.84 square mile area of eastern Los Angeles County, about 11 miles from downtown Los Angeles. Historically an immigrant community, the long built-out city has relatively low per capita income levels, but median household income levels are relatively strong, and unemployment rates are slightly below state and county averages. The city has long served as a bedroom community to the regional Los Angeles employment market, however in recent years there has been a significant amount of retail development. While it has fared better than many nearby communities, the housing market has experienced recent weakness. AV declined by 2.4% in fiscal year 2010, and by 1.1% in 2011, slightly above the county average.

City finances have remained sound during the recent recession despite lower property tax levies and collections, aided by the enhanced sales tax revenue as well as a one-time transfer in. The unreserved general fund balance dipped slightly in fiscal year 2010, despite the receipt of a full year of a voter-approved 1% sales and use tax that took effect in April 2009, but remained near 20% of total expenditures plus transfers out. The sales tax rate is now the highest in the state at 10.75%, and the increase, while providing greater operating funding, also made the city more dependent on these revenues; in fiscal 2010, sales tax made up more than one-third of general fund revenue. This greater reliance on economically sensitive revenues raises the importance of sound fund balance levels for the city going forward.

The city’s direct debt obligations are limited to its 2009 lease revenue issue, of which $32.9 million remained outstanding at the end of fiscal year 2010. Additional long-term obligations include $33.1 million of redevelopment agency (RDA) debt (now owned by the city’s water authority) and $38.5 million due from the RDA to Los Angeles County for redevelopment area pass-through property taxes which the county is no longer deferring. While such payments are the legal obligation of the city’s RDA, the city has chosen to offset insufficient tax increment revenues with general fund support. The city’s ability to support RDA-related revenue bond obligations without general fund support is unclear.

Pico Rivera grants waste-hauler an additional year

Ruby Gonzales. Whittier Daily News. Whittier, Calif.: May 11, 2011. 

PICO RIVERA – The City Council voted Tuesday night to extend an agreement with its current trash hauler for one year.

A majority of the council decided last year to put the contract out to bid after 31 years with CalMet Services, Inc. The majority claimed the city should examine the rates of other haulers. But council members also wanted to continue negotiating with Paramount-based CalMet if they didn’t like the competing proposals they received.

The trash contract with CalMet is valued at $6.3 million a year.

City officials expect it would take about a year to develop a proposal, have it go out to bid, review the proposals and present the council with a new agreement from the best bidder.

City Manager Ronald Bates said all that work couldn’t be accomplished in the few months before the current agreement with CalMet ends June 30.

Hence the extension, which came with a side benefit.

Bates said in negotiating that extension, CalMet agreed to improve green-waste collection in the city by becoming automated.

Councilwoman Barbara Contreras Rapisarda asked Bates on Tuesday night if the city could do the process in six months instead of a year.

“It could be but it would be rushed,” Bates said. Opting to do the process in a year would give the community the benefit of the improved green-waste collection, he said.

Assistant City Manager Jeff Prang said they asked CalMet if it will invest in the cost of automated green-waste collection if the city extended the contract for a year. The company will be replacing trucks to do this.

“They agreed to it but will need a year to recoup their costs,” Prang said.

CalMet officials couldn’t be reached for comment Wednesday.

The city isn’t going through the lengthy process of going out to bid and drafting a new agreement on its own.

Last month, the council hired a consultant, HF&H Consultants LLC, at a cost of $126,000.

HF&H’s job would include analyzing the current contract, reviewing CalMet’s operating data and preparing and issuing a request for proposals. The consultant and the city would evaluate the proposals, negotiate with top-ranked contractors and prepare the agreement.

Staff expects to present a tentative agreement to the council either in December or January.

“If the council approves that, we will sign an agreement. The contractor, if new, will develop a transitional plan,” Prang said.

The contractor selected will have to be prepared to begin trash collection in June 2012.

Residents currently pay $20.30 a month or $243.60 a year for trash services. The charges appear on their property tax bill.

CalMet collects trash from 13,000 residential properties in Pico Rivera. Prang said the company’s annual revenue for residential collection is $3.1 million. The city receives $300,000 of that amount.

Pico Rivera also gets a 5-percent commercial franchise fee which is about $15,000 a month, according to Prang.

Former Temple City Mayor Convicted in Bribery, Perjury Case

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May 2, 2011
FOR IMMEDIATE RELEASE
Contacts: Sandi Gibbons, Public Information Officer
Jane Robison, News Secretary
Shiara Dávila, Assistant PIO
(213) 974-3525

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LOS ANGELES – A former Temple City mayor was convicted of bribery and perjury charges today in connection with a development in the San Gabriel Valley city four years ago.

Deputy District Attorney Sean Hassett of the Public Integrity Division said the Los Angeles Superior Court jury deliberated about an hour before convicting Cathe Wilson, 78, of three counts of asking for or receiving a bribe and three counts of perjury. The perjury charges involved one count of lying to the Los Angeles County Grand Jury in 2008 and two counts of submitting false material in Fair Political Practices reports.

Superior Court Judge Alex Ricciardulli, who presided over the trial, scheduled sentencing for June 2. The defendant, who is not in custody, faces a possible state prison term of up to nine years. Sentencing is in the hands of the court, however, and the judge asked for a pre-sentencing report.

Wilson, her campaign manager and another former Temple Mayor, Judy Wong, were indicted in June 2009 on charges that cash bribes were demanded and received from developer Randy Wang for his Temple City Piazza project. Another council member, David Capra, was charged separately.

Wong, 54, pleaded no contest and was sentenced last year to 16 months in state prison. Scott Carwile, 52, Wilson’s campaign manager, pleaded guilty to a perjury count and is scheduled to be sentenced May 24. Capra pleaded no contest in 2009 to a misdemeanor charge of failure to report a campaign contribution and agreed to resign from the council.

Deputy District Attorney Max Huntsman, who prosecuted the case with Hassett, said shortly after the indictment that officials from Temple City cooperated with the Public Integrity Division in its investigation.

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Former Pico Rivera City Councilman Sentenced

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April 20, 2011
FOR IMMEDIATE RELEASE
Contacts: Sandi Gibbons, Public Information Officer
Jane Robison, News Secretary
Shiara Dávila, Assistant PIO
(213) 974-3525

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LOS ANGELES – A Los Angeles Superior Court judge today issued an order prohibiting former Pico Rivera City Councilman Ronald Beilke from running for or holding public office for four years, the District Attorney’s Office announced.

Judge Lisa Lench additionally sentenced Beilke to three years of probation and 30 days of community service. The defendant must also pay a $1,000 fine.

Beilke was convicted on Jan. 20 of two misdemeanor counts of conflict of interest for voting on contracts between the City of Pico Rivera and two private businesses, All American Asphalt and Mobility Solutions.

Evidence presented at trial revealed that the work stipulated by the contracts could foreseeably benefit Beilke’s Wienerschnitzel franchise in Pico Rivera.

Deputy District Attorney Sandi Roth of the Public Integrity Division prosecuted the case.

Beilke was found not guilty of one count of perjury and two counts of conflict of interest, one a misdemeanor, the other a felony.

The contract between the City of Pico Rivera and All American Asphalt was for paving of the intersection within 500 feet of Beilke’s restaurant. The work included decorative, colored concrete, the prosecutor said.

The contract with Mobility Solutions was for the design of a street light, within 500 feet of Beilke’s business, which allowed traffic to flow freely into the shopping center directly connected to his restaurant.

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Pico Rivera faces paying rent even with Borders leaving

Ruby Gonzales. Whittier Daily News. Whittier, Calif.: Mar 19, 2011. 

PICO RIVERA – The city spent $1.6 million in federal grant money to bring Borders into the Pico Rivera Towne Center and to help pay its rent for nearly eight years.

Now the bookstore at 8852 Washington Blvd. is among the 200 Borders stores closing by April in the wake of the company filing for Chapter 11 bankruptcy reorganization.

But the city still faces paying rent on the soon-to-be vacated 18,100-square-foot site, along with other costs associated with 2002 agreements it made with Borders and with Vestar Development Co., which owns the Towne Center.

If Borders leaves, the contract with Vestar requires the city to pay the company $33,932.91 a month for 72 months until a new tenant comes in. Vestar will get the money on the condition it is making “commercially reasonable efforts” to secure a new tenant for the site, according to the wording of the agreement.

However, city officials believe Pico Rivera does not have to pay the $33,932 but only needs to continue shelling out the $10,833.33 a month in rent subsidy to Borders. There are seven years left on the 15-year agreement.

At the March 8 council meeting, Councilman Bob Archuleta asked if the city was liable for paying the $10,833 to Vestor is its commitment done with Borders.

City Attorney Arnold Alvarez-Glasman said his office is reviewing the agreements and will bring an update to the council. But he said it would be best if the discussion is held during a closed session.

“We have a pretty good idea where we stand, but I just don’t want to disclose publicly our legal strategy,” Alvarez-Glasman said.

Councilman Gregory Salcido, who championed bringing Borders to Pico Rivera, pointed out the city has the grant money set aside for the Borders project to cover the expense.

“It’s not a crisis at all,” he said. “We are fortunate to be in a fiscally sound position to handle it with negligible impact to the city and residents.”

He said he would never default on an agreement. But he agreed it doesn’t make sense for the city to pay rent on an empty site. Salcido hopes to renegotiate with Vestor.

“The value of the agreement has changed, therefore the terms has changed,” he said. “Once Borders is gone, we will talk to Vestor. I’m confident a renegotiation of the agreement could be reached.”

The city didn’t know how much was Border’s monthly rent. Vestor officials didn’t return calls for comment.

The bookstore, which opened in the Pico Rivera Towne Center in July 2003, generated about $35,000 a year in sales tax revenue, according to Assistant City Manager Jeff Prang.

Officials said the decision to bring a bookstore into the community was a quality-of-life issue.

As spelled out in both agreements, the city and redevelopment agency wanted Borders in the community to enhance educational and cultural opportunities.

The expected benefits included sales tax revenues, job opportunities, plus music, reading material and cultural materials for the community.

“It was a proper investment in literacy,” Salcido said.

A portion of an $8 million grant from the federal Economic Development Administration funded the project.

The Towne Center is built on what was part of a former Northrop Grumman research and development plant. When Northrop Grumman closed in 1999, the city was left with a 200-acre property.

The city lobbied and landed the $8 million grant, which could only be spent on that site.

“We were able to put something aside to attract a first-class bookstore to Pico Rivera. We were the only predominantly Latino community with a national chain bookstore,” Salcido said.

The city and its Redevelopment Agency drew Borders to the Towne Center with a deal in which Pico Rivera subsidized the bookstore’s rent by $10,833.33 a month for 15 years.

In a separate agreement, the council also approved reimbursing Vestar $362,000 for special set-up costs and pay the company $2,500 a month in supplemental rent for the next 15 years.

The rent being paid by Borders was below the market value rate for the site, and Vestar wouldn’t lease the property to the bookstore without the monthly supplemental rent of $2,500 from the city, according to the agreement.

Salcido said it was a proud moment for him when Borders opened in the city. He called it a wise investment.

But the way people bought books changed and the economy took a downturn.

Mary Davis, public relations manager for Borders Group, said the 200 stores will close no later than April. A store may sell its inventory earlier so it can shutter its doors before then, she said.

Davis said the locations slated for closure were under-performing stores.

“There’s a number of criteria. Sales is just one,” Davis said.

She declined, however, to say what factors led to the Pico Rivera bookstore ending up on the list.

The city hasn’t received a formal notification from Borders about the Pico Rivera store closing. Prang said Borders lawyers did send a copy of the bankruptcy filing.

Jeff Brauckmann,community development director, said city staff talked to the manager of the local store.

“He indicated to us the store will close sometime in April,” Brauckmann said.

Pico Rivera mayor blasts staff over contract

Ruby Gonzales. Whittier Daily News. Whittier, Calif.: Feb 7, 2011. 

PICO RIVERA – Mayor David Armenta accused city staff of lying about which company made the lowest proposal to manage a project that would build a median on Beverly Boulevard and add landscaping.

He also criticized the way city employees evaluated the proposals.

“When staff recommends something, staff needs to tell the complete truth,” Armenta said at the Jan. 25 City Council meeting.

He told this newspaper last week that Assistant City Manager Jeff Prang lied because Prang told the City Council on Dec. 14 that Willdan Engineering of Anaheim’s bid of $66,630 was the lowest for the construction management agreement on the Beverly Boulevard landscape median project.

But Armenta said AAE, Inc. in Orange actually was the lowest bidder.

AAE, Inc. came second with its proposal of $69,270, according to staff reports. Armenta said if you subtract the $10,280 in community outreach from the company’s proposal, which staff didn’t ask for, AAE’s bid would be $7,640 less than Willdan’s.

“We’re giving away $7,000 and engineering recommended AAE and Jeffrey Prang, who is not an engineer, overrides that,” Armenta said.

Prang said he didn’t lie to the council.

“I certainly understand and respect the mayor’s methodology and I regret he feels that way. But I stand by the staff recommendation as it relates to both cost analysis and the overall recommendation,” he said.

When he made the statement Willdan Engineering was lowest, Prang said it was based on the overall proposal. He also mentioned that because the council went with the cheaper company in other contracts.

He said it’s not unusual for council members to ask questions and be critical of staff.

Armenta met Jan. 4 with staff and AAE. He also put the issue back before the council at the Jan. 25 meeting where he made a motion to award the remainder of the contract to AAE Inc. None of the other council members supported the motion, which died.

City staff members don’t believe their methodology was flawed, saying they looked at the companies’ past performance on other city projects and at the amount of inspection hours proposed for the Beverly Boulevard project.

Prang said the $10,000 cost for community outreach didn’t win or lose the contract for AAE.

“The decision was based on their overall proposal which included hours of inspection, past performance, personnel assigned to the project,” Prang said.

AAE, Inc. officials couldn’t be reached for comment last week and Monday.

Councilman Bob Archuleta said it was quite a long meeting to go back to Point A and wasn’t necessary.

“It was puzzling. In some aspects everyone was puzzled,” Archuleta said.

“We select our staff professionally and I feel they’ve done a good job. When the mayor didn’t get a second that speaks very largely of the issue and the balance of support of the council for staff.”

Councilman Gregory Salcido said a council member who voted in the affirmative on an item can later bring it back to the council for reconsideration.

“Any member of the council can do that and may get support. In this case, it did not,” Salcido said.

He said he wasn’t told about the Jan. 4 meeting Armenta had with AAE and staff.

“Private meetings with staff and outside contractors complicates our ability to craft effective public policy,” Salcido said.

The agreement that raised the mayor’s ire was for the construction management and inspection services on the Beverly Boulevard median project. (Another company is building the median and adding the landscaping which is a separate contract.)

This type of contract with Willdan doesn’t require the city to go with the applicant that made the lowest bid.

“You award it to the best qualified candidates,” Prang said.

“There are a number of factors to be considered. Past experience. Past performance with the city. You look at the cost.”

The five-member City Council originally voted for Willdan Engineering to be the construction manager at its Dec. 14 meeting.

Staff recommended Willdan from a pool of six engineering firms and said the Anaheim-based company offered 100 more inspection hours than its closest competitor, AAE Inc.

“We felt it was a better quality proposal,” Prang said. “My argument did not lead with the cost. Cost was a factor, not the factor.”

Armenta denied he brought the issue up to benefit AAE. He said he checks city contracts and if he finds inconsistencies, he would ask questions.

“I’m doing this to benefit the city,” he said.

“I don’t care who gets the contract to tell the truth. I first look at can they do the job and dollar value.”

While staff said community outreach is supposed to be included in the project already, they didn’t ask for enhanced community outreach.

Since AAE broke out the $10,280 cost for community outreach in its proposal, Armenta said it is the city’s responsibility to look at each bid and check if something was added or missing.

“I would hope we are professional enough and educated enough to analyze bids to compare apples to apples. And if we’re not, we’ve got a problem,” he said.

After the proposals were submitted, he said staff spoke to AAE and told them to increase their inspection hours. He said the city has no right to tell any contractor how many hours they should be bidding.

Al Cablay, director of Public Works, told the council at the Jan. 25 meeting said he chose AAE and the request for inspection hours was made at his direction. The city has done that in the past when negotiating with companies.

Cablay said his choice wasn’t supported after further analysis by city administration.

Prang said Cablay may have had an opinion but there was no recommendation.

“He (Cablay) didn’t have a formal recommendation because I told him the decision will be made by me,” Prang said.

Armenta said he didn’t have a private meeting with AAE. He said he met with staff and the company on Jan. 4 to talk about the way staff evaluated the proposals and the past performance of the company on other city projects.

He said it came out that there was a lot of miscommunication between the city, a third party and AAE on previous projects.

AAE said it was at fault on one instance but everything else was a miscommunication, according to Armenta. He said since it’s the city’s projects, the city should take the lead and coordinate communication between the different parties.

Prang said they respectfully disagree and pointed out that’s not standard practice.

“Staff’s position is when we’re paying someone for construction management, they manage the contract,” Prang said.

Former Pico Rivera City Councilman Convicted of Conflict of Interest

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January 20, 2011
FOR IMMEDIATE RELEASE
Contacts: Joe Scott, Director of Communications
Sandi Gibbons, Public Information Officer
Jane Robison, News Secretary
Shiara Dávila, Assistant PIO
(213) 974-3525

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LOS ANGELES – Former Pico Rivera City Councilman Ronald Beilke today was convicted of conflict of interest, the District Attorney’s Office announced.

Deputy District Attorney Sandi Roth of the Public Integrity Division said Beilke was convicted of two misdemeanor counts of conflict of interest for voting on contracts between the City of Pico Rivera and two private businesses, All American Asphalt and Mobility Solutions.

The work stipulated by the contracts benefited Beilke’s Wienerschnitzel franchise in Pico Rivera, the prosecutor said.

Los Angeles Superior Court Judge Lisa Lench ordered Beilke to return for sentencing on Feb. 18, 2011 in Department 132 of the Foltz Criminal Justice Center.

Jurors, who deliberated for two days, found Beilke not guilty of one count of perjury and two counts of conflict of interest, one a misdemeanor, the other a felony.

The contract between the City of Pico Rivera and All American Asphalt was for paving of the intersection within 500 feet of Beilke’s restaurant. The work included decorative, colored concrete, the prosecutor said.

The contract with Mobility Solutions was for the design of a street light, within 500 feet of Beilke’s business, which allowed traffic to flow freely into the shopping center directly connected to his restaurant.

Beilke faces a maximum sentence of one year in county jail. At the time of sentencing, the judge could also issue an order prohibiting Beilke from running for or holding public office for four years.

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