IF YOU NEED ANY MORE PROOF THAT FULLERTON IS NOT RUN FOR THE BENEFIT OF ITS CITIZENS, YOU NOW HAVE IT! by Barry Levinson

Below is a copy of what I handed out during Agenda Item No. 7 – Brea Dam Recreation Area at tonight’s park and rec commission meeting. It provides proof that the Management Agreement deal we entered into with American Golf in December 2010 will cost the taxpayers between………………

4,000,000 to 5,000,000 dollars in lost net revenue (think net income) over 20 years over the lease contract already in place.

This raises serious questions about how the Park and Recreation Department has been managed and calls into question our city leadership all the way up to the City Manager. It is now time for the City to answer questions honestly and with much specificity. Please review the below carefully.

Fullerton Park and Recreation’s director Hugo Curiel and manager Alice Loya

Please note that there was no discussion about this handout except for my description and summary of it. With the exception of Commissioner Silva, who reluctantly spoke out of order and after the proceedings were over and his vote was cast, and myself, all other Commissioners present voted to Receive and File my document and the attached presentation of the department. Yes we have major problems with our City Government.

Denial, denial, denial and then Receive and File.

Fitzgerald appointee who motioned to bury all of this information with no discussion or action-introducing Gretchen Cox

Ms. Gretchen Cox, appointed by Mayor Fitzgerald attempted to have it Received and Filed without any discussion from the department, the public or any members of the commission.

Rubber stamp Commissioner Savage

Rubber stamp Commissioner Lang Mcnab

Rubber stamp Commissioner Stanford

MS LOYA’S 11/2/2010 COUNCIL PRESENTATION

CORRECTING MS. LOYA’S PRESENTATION

LEASE

MANAGEMENT
AGREEMENT

MANAGEMENT AGREEMENT – USING CORRECT AMOUNTS
FOR MANAGEMENT FEE & PRINCIPAL & INTEREST COSTS

GROSS REVENUE

$2,230,000

LESS:

OPERATING COSTS

$1,140,000

CITY LEASE REVENUE

$420,000

–

AM. GOLF M. FEE

–

$500,000

$670,000

RZEDB DEBT

–

$36,520

$203,323

*Average cost to city for principal and

interest over 20 years of the bond

including 45% federal interest rebate.

NET REVENUE

$670,000

American

$553,480

CITY

$216,677

Actual Average City Revenue earned

Golf

under Management Agreement.

Average yearly loss for city by changing from former Lease agreement to Management agreement ($420,000 – $216,677) = $203,323

Overstatement of average net revenues under the Management agreement = $553,400 less $216,667 = $336,332.

Alice Loya claimed on 11/2/10 before council that the Mngmnt. A. would net an additional $133,480 dollars to the city while in fact it lost $203,323 dollars.

* Total series A Principal $2,705,000/20 years = $135,250 + (total series A interest $2,475,381/20 years = $123,769 x .55 = $68,073) = $203,323.

Therefore, Ms Loya’s presentation to the council that this change from a lease agreement to a management agreement would over the course of the bond bring in more revenue to the city was in fact not correct.

Over the course of the 20-year life of the RZED Bond, the city will loose conservatively at least 4,000,000 dollars in net revenue and at the same time it takes on liablilites that did not exist under the former lease agreement.

Please also note that under the lease agreement city revenues would have increased based on the increased gross revenues from the golf course which was already up over 13% from FY 2011 to FY 2014/2015 as reported by Ms. Loya in January, making this an even worse deal than the numbers above show

Finally, the amount Ms. Loya presented to the committee last month for the Management fee for FY 2014/2015 of $587,000 is understated by $103,302 as the correct amount is actually $690,302 ($670,000 in base year times three one percent annual increases per contract terms.)

The RZED Bond Debt amount per Ms. Loya is also grossly understated. The correct amount is (100K principal + ($185,550 int. X .55 = $102,053) = $202,053 and not $107,000 as Ms. Loya reported to this committee last month.

Conclusion: The numbers as presented by Alice Loya to council on 11/2/2010 and on 01/11/2016, to the Park and Recreation Committee, misrepresent the financial benefit of the Management Agreeement (M.A.) over the former lease agreement. This resulted in the council approving a M.A. that will cost the taxpayers 4 to 5 million dollars in lost net revenue over 20 years.

ATTACHMENT:

Fullerton Golf Course Management Agreement 12/01/10, Page 12 of 23

reports of claims activities on a schedule and in a format reasonably acceptable to the City. City understands and agrees that with respect to all policies of insurance required under this Article 4 (whether such policies are maintained by City or by AGC), the portion of any losses, damages, and expenses paid with respect to such claims which is subject to a deductible amount or a self- insurance or a self-assumption amount shall be the sole responsibility of City. If at any time during the term of this Agreement, City desires to assume responsibility for handling of claims, the parties may amend this provision as provided in Section 11.8, subject to (i) the approval of the applicable insurance companies, and (ii) the reasonable approval of AGC.

ARTICLE 5 – MANAGEMENT FEES

In addition to the costs and expenses to be reimbursed to AGC pursuant to this Agreement, City shall pay AGC the Management Fee computed and payable as follows:

5.1 Management Fee. In consideration of AGC’s services during the Operating Period, City shall pay to AGC a “Management Fee.” For the first twelve (12) months of the term of this Agreement, the Management Fee shall equal Six Hundred Seventy Thousand Dollars ($670,000) per annum (i.e., Fifty Five Thousand Eight Hundred Thirty Three Dollars and Thirty Three Cents ($55,833.33) per month). The Management Fee shall increase on each anniversary of the Effective Date (until termination of this Agreement) by one percent (1%) of the Management Fee in effect immediately prior to the applicable increase. The Management Fee shall be paid to AGC, in equal monthly installments, in accordance with Section 5.2 of this Agreement.

5.2 Payment Schedule. If the Commencement Date does not fall on the first day of the month, then the Management Fee for the first partial month of the Operating Period shall be the pro-rata portion of the Management Fee and such amount shall be payable on the Commencement Date. Commencing with the first full month of the Operating Period, City shall pay AGC the Management Fee monthly in advance on the first day of the month to which it pertains.

ARTICLE 6 – ACCOUNTS; WORKING FUNDS; RECORDS AND REPORTS

6.1 Bank Accounts. City shall establish bank accounts for the Facility at a banking institution or institutions reasonably selected by City, (which banking institution or institutions shall have branches located in close proximity to the Facility), such accounts to be in City’s name (the “City Accounts”). AGC shall also establish bank accounts for the Facility at a banking institution or institutions reasonably approved by City, (which banking institution or institutions shall have branches located in close proximity to the Facility), such accounts to be in City’s name (the “Facility Accounts”). AGC will deposit into the City Accounts all monies received by AGC from the operation of the Facility. City shall deposit all funds required to be furnished by City as working funds under Section 6.3 of this Agreement into the Facility Accounts, and AGC will disburse those monies from the Facility Accounts only for the purposes set forth in Section 6.2. Notwithstanding the provisions of the foregoing, AGC shall be entitled to maintain funds in reasonable amounts in “cash register banks” or in petty cash funds at the Facility.

03674-00081/1753550.8 12

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#1 by Fullerton Resident on March 26, 2016 - 10:26 am

I will go ahead and describe a small part of what criminal behavior continues to go on at the FPD.

Ronald Bair preying on a woman in a shelter for battered women decides she deserves to be battered, abused physically, sexually and emotionally by him as part of his on duty FPD service. When she balked at the continued sexual, emotional and physical abuse, he then went to the courts and made outrageous bald faced lies under oath which caused her to loose custody of her children.

Bair is the consummate degenerate criminal operating under the color of FPD authority and it cost the city of Fullerton $550,000 in a closed door civil suit to make this issue go away, i.e. bury it from further exposure to the public. Mr. Bair would have and most definitely should have been charged with multiple criminal charges if not for the corruption of the FPD. But as a key part of the lawsuit stated that FPD management, (and who is the head of FPD management but none other than our own self-proclaimed Mr. Transparent, Mr. Non-political Police Chief Dan Hughes), worked to help Bair and ignored her pleas for justice.

Lastly, there is no LOL here. No Lots Of Love or Laugh Out Loud. Only another degenerate would describe this situation that way Reality Is.

Fullerton Officer stealing an IPAD at Miami International airport.
Fullerton Officer beating up his nephew.
Officer Ramos questioned in a domestic violence call to FPD.
Fullerton City Council holding a totally unnecessary “special council meeting” at 8AM ON THE WEDNESDAY BEFORE THANKSGIVING to hand over 4.9 million dollars to Ron Thomas.
The contempt shown by our city manager and council to hold that meeting at that ridiculous date and time is a new low for our council.

It goes on and on and on. There is not only so much proof positive that the FPD is corrupt but that it is institutional corruption that never seems to end for the good people of Fullerton.

Dan Hughes and Joe Felz should retire immediately. Mayor Fitzgerald should either quit the council or quit her VP job at Curt Pringle and Associates. She can’t serve two masters with such built in conflicts of interests. If she truly loved Fullerton, if she even truly liked Fullerton she would do this immediately.
But knowing Mayor Fitzgerald I would say….don’t hold your breath Fullerton.

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