Slightly less than ten years after the City of Ontario, led by City Councilman Alan Wapner, undertook a no-holds-barred and ultimately successful campaign to wrest control and ownership of Ontario International Airport from the City of Los Angeles, the ridership decline that occurred at the aerodrome over a decade ago which was used as Ontario’s justification for its takeover move has replicated itself.
Beginning in 2011, Wapner began a full-frontal attack on the City of Los Angeles, claiming the steady decline in the number of passengers at the airport from the 7.2 million that passed through its gates in 2007 was a function of the disregard and neglect that Los Angeles and the corporate entity, Los Angeles World Airports, which Los Angeles used to manage the operation of Los Angeles International Airport, Van Nuys Airport and Ontario Airport, had exhibited toward Ontario and its aviation facility.
Most airline industry analysts and Los Angeles city officials maintained that the decline in passengers at Ontario International Airport, known by its Federal Aviation Administration abbreviated designation ONT, was a consequence of the steep economic downturn that gripped the nation, State of California and the region beginning in the fall of 2007 and which maintained itself for more than a half of a decade as the “great recession.”
Wapner’s intent, which was shared by his council colleagues and that of Ontario’s top administrators, was to force the City of Los Angeles to disgorge the airport, and allow Ontario to take charge of its destiny rather than entrusting it to the megalopolis 45 miles to the west.
The larger city’s acquisition of the airport had come about as the consequence of a joint operating agreement Ontario forged with the City of Los Angeles in November 1967, when Ontario Airport yet had a sand-flea-infested gravel parking lot and fewer than 200,000 passengers passing through its gates annually. Under that agreement, Los Angeles was to use its stronger negotiating position with the airlines serving Southern California to induce them to utilize the Ontario facility. Using its leverage, Los Angeles persuaded a whole host of airlines to begin flying into and out of Ontario.
Though a benchmark of 10 million passengers at the airport by 1975 was not achieved, Los Angeles World Airports was nevertheless assiduously promoting Ontario International Airport.
In 1981, a modern, second east-to-west runway was built, necessitating the removal of the old northeast-to-southwest runway.
By the early 1980s Los Angeles had met all the criteria laid out in the 1967 joint powers agreement. The City of Ontario was at that time led by Mayor Robert Ellingwood, who was resistant to the concept of Ontario complying with the terms of the joint powers authority agreement and turning ownership of the airport over to Los Angeles. In 1985, during Ellingwood’s brief absence from the city, four members of the Ontario City Council as it was then composed voted to deed Ontario Airport to the City of Los Angeles for no consideration. That transaction was considered a public benefit transfer. With a few notable exceptions, such as Ellingwood, most Ontario officials at that time believed granting Los Angeles possession of the airport to be beneficial.
Indeed, over the four decades from 1967 until 2007, the relationship between Ontario and Los Angeles vis-à-vis the airport could not have been more positive or cordial.
All told, Los Angeles instituted some $550 million worth of improvements to the airport, including paving its parking lot, modernizing its runways, including the widening of taxiways and the addition of storm drains. Ontario Airport’s landing and take-off paths were converted into the longest such civilian facilities in Southern California, and Los Angeles erected a state-of-the-art control tower, and constructed two ultra-modern terminals at a cost of $270 million, augmented with a world class concourse. In 2007, 7.2 million passengers came through Ontario Airport, a 3,600 percent increase over what Ontario had been able to achieve on its own 40 years before.
Beginning in 2008 and until early 2014, passenger traffic at Ontario International declined steadily. This led to a deterioration in the working relationship between Los Angeles and Ontario. In his campaign, Wapner, called upon Los Angeles to simply deed the airfield and all it entailed back to Ontario. When this did not occur, he unleashed a strident and uncivil attack on Los Angeles, Los Angeles officials, and most pointedly against Los Angeles World Airports Executive Director Gina Marie Lindsey.
Cooler heads, meanwhile, were seeking to restrain Wapner, asserting that he was needlessly antagonizing Los Angeles officials, who in any event did not have the antipathy toward Ontario he was alleging, reminding him that Los Angeles was in a much better position to negotiate with airlines domestically and worldwide than was Ontario. Moreover, it was pointed out, Ontario Mayor Paul Leon and then-Los Angeles Mayor Antonio Villaraigosa had grown up in the same neighborhood and were childhood friends. Leon’s connection to Villaraigosa could be used with far greater effect to negotiate an outcome favorable to Ontario, it was suggested, than Wapner’s more antagonistic approach. Wapner, ignoring such entreaties, stepped up his rhetoric, openly charging that Lindsey had evinced hostility toward the City of Ontario and its airport, and was deliberately mismanaging Ontario International operations to raise costs and minimize both revenues and ridership there as part of a plot to increase revenue and gate numbers at Los Angeles International Airport. Lindsey and her staff denied those accusations, pointing out that the airlines were being pushed by their own economic imperatives.
In 2013, in the waning days of Anthony Villaraigosa’s tenure as Los Angeles mayor, the City of Ontario, through the Washington, D.C.-based law firm of Sheppard Mullin Richter & Hampton, sued Los Angeles in the neutral forum of Riverside Superior Court, charging Los Angeles and Los Angeles World Airports with willful mismanagement of Ontario Airport, and seeking the return of the aerodrome to the city in which it is located.
Having already raised the campaign of attack against Los Angeles to a fever pitch, Wapner personalized it even further after the lawsuit was underway. The Wapner-directed attacks occurred against a backdrop of jockeying between the two cities over the “value” of the airport, i.e., the amount of money that was to change hands if the airport title were to be handed back to Ontario. Wapner insisted that the airport was a “public benefit asset” and had no “value” as such. He called for Los Angeles to simply deed the airport back at no consideration. Los Angeles, on the other hand, pointed out that over $500 million had been expended on improvements at the facility and that major portions of the funds for those improvements originated from revenue generated at Los Angeles International Airport or at Ontario International Airport while it was in the possession of Los Angeles, as well as from federal grants Los Angeles secured or from bonds issued under the authority of Los Angeles as a public agency.
Ontario privately tendered a $250 million offer to Los Angeles World Airports for transfer of the airport’s title and operational control. That offer included Ontario assuming $75 million of the outstanding bond debt obligations for past improvements to the airport, $125 million in future passenger facility charges to be realized at the airport and $50 million cash.
Los Angeles officials scoffed at that offer, giving indication they would accept no less than $450 million for the airport and the property on which it sits, which in any case they considered to be a generously charitable counterproposal reflecting a roughly $100 million discount of the cost of the improvements made to the airport during Los Angeles’s 47-year managerial run there.
In August 2015, just as the matter was headed to trial before Riverside Superior Court Judge Gloria Connor Trask, Ontario and Los Angeles forged a tentative settlement, announcing that ownership and management of Ontario International Airport would be returned to the city whose name the aerodrome bears. Mayors Eric Garcetti and Paul Leon disclosed that Ontario was to lay out $150 million for the airport and provide another $60 million to purchase assets technically belonging to Los Angeles World Airports that were in place at Ontario Airport and which were crucial or indispensable to its operations. In addition, Ontario had agreed to assume the debt service on roughly $60 million in bonded indebtedness Los Angeles had taken on over the years to make improvements at the facility.
In December 2015, Los Angeles and Ontario signed an agreement finalizing the transfer as of November 1, 2016, with Ontario paying Los Angeles $60 million out of its various operating funds and another $30 million taken out of its reserves, and committing to make payments of $50 million over five years and $70 million in the final five years of the ten-year ownership transition. In addition, Ontario absorbed $60 million of the airport’s bond debt.
Ignored in all of the hoopla, self-congratulating and general backslapping among Ontario officials over Ontario’s reclaiming of the airport was that in the previous two years, even as Ontario was badmouthing Los Angeles and suing it, ridership at the airport, which at one point had dwindled to less than 4 million annually, was again beginning to inch up under Los Angeles World Airports’ direction as the economy was making a turnaround. Nor did Ontario officials dwell on how, in the immediate aftermath of the deal giving the city ownership and control of the airport, the number of passengers going through the airfield’s turnstiles actually declined, an outgrowth of the consideration that Ontario did not have the leverage to offer the various airlines incentives, such as preferable gate positions at Los Angeles International Airport, to induce them to increase, or even maintain, flights into Ontario.
Under Ontario leadership and management over the last three-and-a-half years, the airport has been making some level of a comeback, though it has yet to see the passenger numbers it did in 2007 when Los Angles was calling the shots. In 2018, China Airlines, a Taiwanese carrier, launched nonstop service between Taiwan’s Taoyuan International Airport and Ontario International Airport, a development which boosted the airport’s status as a true international facility. Previously, the airport boasted flights to Mexico offered by both AeroMexico and Volaris, though the addition of those flights came in 2014, while the airport was being managed by Los Angeles World Airports.
Ontario’s most spectacular show on the international flight stage came while the airport was still owned and managed by Los Angeles, in June 2013, when Chinese President Xi Jinping flew into Ontario International Airport for a summit with then-President Barack Obama. That raised hopes that some of the 20 airlines that are based in the People’s Republic of China would initiate regular direct flights to and from Ontario International Airport. Ontario officials have not been able to make any headway in that regard.
On occasion, huge Russian Antononv-124 strategic airlift jets have landed at Ontario Airport.
Last month, with the coronavirus crisis continuing to put a damper on air passenger travel, the number of passengers who passed through Ontario International Airport’s gates dropped by 85 percent, officials announced.
Unlike the way Wapner and Ontario officials used the economic downturn which created a drawdown in passengers flying into and out of Ontario to assert Los Angeles was mismanaging the airport, no one took the opportunity the recent passenger dip presented to criticize Ontario officials for their mishandling of the airport’s management.
Ontario officials themselves sought to overlook the ridership decline, instead seeking a silver lining in the cloud.
Simultaneous with the decrease in passengers, the airport saw extraordinary growth in commercial air freight into the facility, with the amount of tonnage escalating by 24 percent, the third straight month of better than 20 percent gains as commercial cargo is being brought into an increasingly sedentary population, quarantined at home in an effort to stymie the spread of the virus.
Ontario processed over 81,000 tons of commercial cargo last month, which qualified as 24.1 percent more than May 2019. From January through May, freight into and out of the airport eclipsed 342,000 tons, a 18.3 percent increase over the same five months of last year.
“The global coronavirus pandemic continued to drive dramatic changes in cargo and passenger volumes as Southern Californians remained at home and relied on the e-commerce supply chain for many of their household supplies,” said Mark Thorpe, chief executive officer of the Ontario International Airport Authority. “At the same time, like airports across the U.S., we saw another month of significantly lower passenger volumes. Nonetheless, we are optimistic that passenger traffic will pick up in the coming months based on flight schedules published by air carriers.”
-Mark Gutglueck
As Precautionary Sequestering & Business Closure Mandates End, SBC COVID-19 Cases Surge
Two-and-a-half weeks into the loosening of restrictions imposed by the State of California and San Bernardino officials relating to public movement and commercial enterprises that by their nature involve the large-scale congregation of people, the corona crisis, by several objective measurements, appears to be intensifying in San Bernadino County.
For two months, a substantial percentage of both the inhabitants of San Bernardino County and the California population generally complied with state directives intended to slow the spread of the potentially fatal disease. The first of those was issued on March 11 with Governor Gavin Newsom and California’s public health authorities calling for all gatherings with 250 people or more to be rescheduled or canceled. Following that there was a March 15 directive that all “non-essential” businesses be closed, and then a March 17 order that all restaurants statewide should suspend dine-in service. Newsom on March 19 mandated that the state’s residents, within certain parameters, stay at home and self quarantine. On March 17, San Bernardino County’s public health officer, Dr. Erin Gustafson, ordered that as of March 18 all movie theaters, gyms, health clubs, bars, adult entertainment establishments, and other businesses that serve alcohol but do not serve food were to close.
Thereafter a whole host of retail and service establishments were shuttered, including all types where individuals routinely come into close physical contact with one another, such as hair and nail salons, barber shops and tattoo parlors.
Initial statistics based upon testing of San Bernardino County’s population showed an increase in the number of COVID-19 cases, but the gradual swelling of the county’s numbers were not out of proportion with either neighboring counties nor most jurisdictions elsewhere in the state. The measure of the spread of the contagion might have been compromised by the county’s dearth of testing supplies, brought on by the general nationwide shortage of such kits and primarily the reagent used in them. The short supply of these crucial testing tools came about as a consequence of the heightened demand for them locally and nationally, and the failure of then-San Bernardino County Public Health Director Trudy Raymundo to order and secure stores of those supplies when she had the chance in the early stages of the outbreak.
After two months of the public’s general compliance with the shuttering of society and the collapsing economy it provoked, the mood of the citizenry chaffing under the seemingly interminable restrictions, manifesting in occasional public protests and isolated showings of defiance, apparently convinced both state and local officials to loosen the restrictions in gradual steps in correspondence with end of May and into the beginning of June. Parks, which were formerly off limits, were opened. Restaurants opened earlier this month, and today the State of California gave clearance for nail salons, tattoo studios, and providers of other personal care services to resume operations, including those in which a professional engages in touching a client’s face in order to perform facials, electrolysis, and waxing, and in other cases a client’s body as with estheticians and cosmetologists, those engaged in skin care and electrology, as well as those offering body piercing and massage therapy. At this point, some consider the state to have achieved progress, putting it more than two-thirds of the way back to the tenor of social interaction formerly taken for granted, with California not yet prepared to permit schools, youth sports venues, indoor playgrounds, live theaters, saunas and steam rooms, nightclubs, concert venues, festivals and theme parks to open.
Beginning late last week, however, there was an alarming uptick in the number of confirmed COVID-19 cases in the county, such that in a five day span the three largest jumps in the number of positive cases occurred.
As of press time today, San Bernardino County had 8,714 confirmed cases of the virus. The death toll in the county from the disease had reached 230. In the less than three weeks since the advent of June, the county has confirmed more than 3,350 new cases, which is more than 38 percent of the entire total of cases confirmed in the county since the beginning of March. Between Saturday, June 13 and today, the county sustained another 1,553 cases and 23 further deaths.
What is unknown, precisely, is whether the huge leap in the number of cases is the reflection of an actual upsurge in the spread of the condition or a function of the improvement in testing capability.
There was anecdotal evidence to suggest that San Bernardino County has suddenly transformed into California’s coronavirus hotspot. As of last week, San Bernardino County was seeing nearly double the increase in cases per capita of the surrounding counties. This week, that dubious distinction had intensified to the point that the number of cases in San Bernardino appears to be advancing at a rate of three times those in most of the rest of Southern California.
One telling manifestation is that in a setting within the county where there is little in the way of social distancing, the sheriff’s department’s academy held on the grounds of the Frank Bland Regional Training Center in Devore, a whopping 20 percent of the cadets there tested positive for COVID-19 between June 8, when two of the those in attendance at the facility were diagnosed as having come down with the virus, and Wednesday June 17, when 33 were confirmed to have contracted the potentially deadly malady.
Word was that few, if any, of the trainees were seriously ill. All 160 in attendance were tested for the disease, as were instructors and trainers.
The academy activities at the training center have been suspended, with classes now being conducted remotely and cybernetically, and cadets quarantined at home.
Governor Newsom yesterday, Thursday, June 18, ordered all Californians to wear face coverings while in public or in places where they are likely to come into contact with others, including in retail settings and while utilizing public transportation, as well as in any sort of medical setting.
-Mark Gutglueck
Harsch’s Death Was Suicide And Not A Lynching As Feared, Security Video Shows
Malcolm Harsch, whose formerly mysterious death on May 31 prompted what are now recognized as spurious accusations that he had been lynched, died by his own hand, it was confirmed by multiple sources including a video of the fatal incident.
Harsch’s death came in the aftermath of the police killing of George Floyd in Minneapolis on May 25, and amid growing unrest nationally over that incident and the general issue of police brutality, especially as employed against African-Americans. That unrest, which manifested as protests which escalated into widespread looting and riots in many urban settings across America, formed a backdrop for questions about what had befallen Harsch, a 38-year-old African-American who was living within a homeless encampment near Victor Street and Circle Drive in Victorville next to where he was found hanging from a tree with a cord around his neck.
As incomplete information about what had occurred emerged, suggestions that Harsch had been murdered turned to speculation of a lynching, which then devolved into rampant reports to that effect.
A coincidental circumstance further west in the Mojave Desert across the San Bernardino/Los Angeles County line in Palmdale on June 10, in which Robert Fuller, a 24-year-old African-American man was likewise found dead hanging in a tree, prompted widespread reports and speculation that a serial killer targeting African-American men was on the loose in the midst of the contretemps that had grown out of the George Floyd killing.
The confluence of the Floyd/Harsch/Fuller events had the potential for touching off a major social conflagration, given the tinderbox of animosity on both sides of the racial divide as police forces nationwide, chastened by the public reaction to the Floyd killing, grew less aggressive in their tactics, even in the face of looting and other lawlessness that accompanied the protests, leading to an impromptu culture of vigilantism among non-African-American citizens concerned about their physical safety, damage to their property or theft during rioting and looting. That vigilantism led to the open carrying and in some cases the brandishing of firearms among counter-demonstrators, including two highly publicized incidents in San Bernardino County.
On Wednesday, June 17, what some feared would be the catalyst for the racial inferno that many dreaded occurred when Fuller’s half brother, Terron Jammal Boone, was killed by deputies with the Los Angeles Sheriff’s Department in Rosamond, just across the Los Angeles County line at the extreme western extension of the Mojave Desert in Kern County. Boone was fatally wounded in a hail of gunfire after he himself allegedly fired on deputies.
With tensions at fever pitch, the following day, representatives of the San Bernardino County Sheriff’s Department contacted members of Harsch’s family, some of whom had previously openly suggested that Harsch had been lynched, and showed them the first of two surveillance films which electronically documented Harsch’s suicide. The second of those surveillance films was shown to them earlier today.
In one of those videos, taken from the vantage of a nearby empty building on Victor Street, Harsch, in a white shirt, is seen close to two tents in the homeless encampment. He can be seen hurling objects at one of the tents.
According to authorities, at that point Harsch was engaged in an argument with his girlfriend, who was inside the tent, and the items he threw at the tent were donuts.
At 5:57 a.m., according to the timestamp on the video, Harsch can be seen wrapping a blue cord, what investigators said was a high definition media interface cable, one consisting of copper wire surrounded by insulation and rubberized-plastic, around his neck. He then walked toward a tree close by, wrapped the other end of the cable around one of the tree’s branches, and dropped downward. The branch bends, apparently from the downward force of Harsch’s weight tugging on it. His body at that point is below the video’s visual field. The branch and other parts of the tree can be seen rapidly trembling for several minutes before becoming still.
According to the video timestamp, Harsch’s last moments of life on this earth took place around 6 a.m. May 31.
The sheriff’s department would normally not make such disturbing imagery public, officials said, but it was felt that given the circumstances, something needed to be done to “dispel the myth” that Harsch had been lynched by a person or persons unknown.
Harsch’s most proximate known relative was his brother, De’Avery Richardson, a soldier stationed at the U.S. Army installation at Fort Irwin, north of Barstow. A teleconferencing session with Richardson and other members of Harsch’s family in Ohio was arranged by the sheriff’s department, authorities said.
Harsch’s family is represented by Najee Ali, who is also a spokesman for Fuller’s family. After the Harsch family was shown the video, Ali released a statement. “The Victorville Police Department officials released new video evidence to family members,” Ali said. “On behalf of the family of Malcolm Harsch, unfortunately it seems he did take his own life. The family wants to sincerely thank everyone for their support and prayers.”
While the video seems to present clear evidence that Harsch fordid himself, it does raise other questions.
Harsch’s girlfriend called 911 just after 7 a.m., roughly an hour after Harsch’s death. What is depicted on the video suggests that she was not aware of what had occurred until that time, as she had emerged from the tent just to prior to that. The video, however, depicts an individual who was also at the homeless encampment at that time, identified by authorities only by the moniker “Manpower.” Manpower is visible near the homeless encampment outside of the tents there, within visual range of Harsch and the tree as Harsch is approaching the tree with the cord around his neck. Authorities believe Manpower may have witnessed the suicide. Attempts to locate him as of today, however, have been unsuccessful.
Manpower is seen in the video accompanying Harsch’s girlfriend around 7 a.m. when they approach the tree and she discovers her boyfriend is dead.
Shortly thereafter, other denizens of the encampment, apparently summoned by Harsch’s girlfriend, went to the tree, unfastened him and took him to the ground. One of those went to the Victory Outreach church, which is proximate to the site, for help. Two of those who responded from the church attempted cardio-pulmonary resuscitation on Harsch until paramedics arrived.
He was pronounced dead on the scene after an ambulance and other authorities had responded to that location.
According to the sheriff’s department, Harsch had twice been booked into jail in recent months for undisclosed alleged offenses. On one of those occasions, he was subject to a suicide watch.
Authorities were able to shed some limited light on what had prompted Harsch to fordo himself.
Sometime around 3:15 a.m., Harsch, was seen walking down a nearby street, and was heard shouting indiscriminately, profanely and somewhat insensibly. He was encountered by a San Bernardino County Sheriff’s Department deputy at 3:17 a.m. The sheriff’s department provides contract law enforcement services to the City of Victorville.
The deputy noticed blood on Harsch’s shirt, and asked about it’s origin. According to an audio recording from a recorder on the deputy’s belt, Harsch somewhat angrily responded that he had cut his hand.
Upon the deputy running a record and warrant check on Harsch, which apparently came up negative, Harsch was no longer detained.
Sometime thereafter, at about dawn, Harsch and his girlfriend began arguing, exchanging mutual accusations of infidelity.
One of the last exchanges the couple had was the woman telling Harsch “I’m going to make one of your homeboys my new boyfriend,” she told deputies.
An analysis of the blood on Harsch’s shirt confirmed it was his own, according to the sheriff’s department.
Damon Alexander
The Common Sun Rose
The common sun rose is a species of plant endemic to California. It bears the scientific name of Crocanthemum scoparium, but is sometimes included in the genus Helianthemum. Its common names include peak rockrose, Bisbee peak rushrose, broom-rose and peak rushrose. There are two recognized varieties, both uncommon.
It is found in dry, sandy areas in hills and low mountains, primarily along the coast from the Bay Area southward, with a concentration in San Diego County. It is also present in the San Bernardino Mountains and San Gabriel Mountains within San Bernardino County.
Crocanthemum scoparium is a small perennial shrub bearing long, smooth stems and small flowers each with five bright yellow petals. It falls within the cistaceae (rockrose) family.
Under normal conditions these plants are about a foot-and-a-half tall and roughly a foot-and-a-half wide. They are semi-deciduous, meaning they lose their foliage for a very short period, when old leaves fall off and new foliage growth is starting. In the case of the crocanthemum scoparium, this occurs in the summer, when the bright green foliage withers and drops off.
A perennial, this shrub sports hairs generally in stellate clusters and is rarely glandular, except in its inflorescence. The growth can vary from very sparse to dense, dependent upon the degree of irrigation and its extent of exposure to the sun and withering or drying conditions.
The stems of the plant are generally erect, and more or less broom-like. The leaves are cauline and generally alternate and linear to lanceolate or oblanceolate.
The inflorescence is a raceme or is panicle-like, meaning the oldest flowers are borne towards the base and new flowers are produced as the shoot grows, with no predetermined growth limit. The flowers consist of five sepals, with the outer two generally narrower; and the petals yellow. The fruit is generally three-valved. Each flower will produce at least three seeds and sometimes many more.
Its name helianthemum is from the Greek for sun flower.
This species will persist and be especially abundant after fire scorches the earth near where it has gown in the past.
One insect known to feed off of it is the common gray moth, know scientifically as the Anavitrinella pampinaria.
From Wikipedia and https://calscape.org.
Grace Bernal’s California Style: The Decline Of Fashion As We Know It
Regular readers of this column have probably been wondering where I’ve been off to for these last many weeks. Well, the truth of the matter is I’ve been hunkered down, much like everyone else, either at home or at work. For me, my workplace is our family manufacturing concern, which fortunately, has weathered the storm.
There are several sad truths here. One of them is that I am rarely on the streets anymore, which is where I draw most of my inspiration, just by observing what everyone is wearing, picking up on trends, seeing the patterns, watching how what some are wearing is influencing others. What I have seen is that no one, or at least very few people, are bothering much with how they dress anymore. They have been, for the most part, lounging around home, half the time, I suspect, in their bedclothes, and they will don, at most, an oversized shirt and a pair of pants or more likely sweatpants, some tennies or loafers, and make a run to the grocery store. I saw one day a man walking about downtown wearing a bathrobe and slippers! Another time, there was a lady in the frozen food aisle wearing what I thought had to be a nightie. The only thing missing was the curlers in her hair! Maybe I should have written a column about that.
Another sad truth is the wave of bankruptcies we have been hit with, largely as a result of this coronavirus lockdown.
Clothing retailer J. Crew, which operated more than 20 Southern California locations under the J. Crew and Madewell banners, has filed for bankruptcy protection. J. Crew had 182 J. Crew retail stores and 140 Madewell stores. These offered stylish youth-oriented brands. It needed $400 million in financing to remain afloat, but couldn’t get it, since it could not guarantee in the current environment that it will continue to have a flow of customers into its stores. J. Crew wanted to spin off its Madewell division in an IPO to help pay down its debt load, but creditors objected.
Neiman-Marcus filed for bankruptcy but is struggling to stay afloat. Word came this week that it may have turned a corner on raising $675 million in new financing to stay solvent to the point where it can start reopening stores.
Neiman-Marcus was an iconic chain of American luxury department stores which featured multiple high quality clothing lines for both men and women, but particularly women. In 1927 Neiman-Marcus premiered the first weekly retail fashion show in the United States. The loss of Neiman-Marcus in the fashion world would be an incalculable loss.
True Religion Apparel Inc., the Manhattan Beach-based designer and maker of designer jeans very much popular with celebrities, has declared bankruptcy.
All of this was followed with the bankruptcy filing of J.C. Penney! Will it never end?
One can hang on to the hope that bankruptcy does not necessarily mean that a company will go permanently out of business, as those seeking Chapter 11 protection are trying to stay alive by wiping out their debt or renegotiating that debt. What might happen is these companies will close the stores that are not profitable, and sustain the rest. Some will need to borrow money, and will be able to structure themselves back into profitability if they can get the funding and maintain a customer base. That is hard to do, though, when stores aren’t open.
All of this leaves me depressed. Life will go on, no matter what, but for me, style and fashion is what makes life interesting. Let us not forget what a wise man once said:
“What a strange power there is in clothing.” -Isaac Bashevis Singer
June 19 Legal Notices
FBN 20200004294
The following person is doing business as: STRATTON BAIL BONDS
6844 TIARA AVE HIGHLAND, CA 92346 MICHAEL GUTIERREZ 6844 TIARA AVE HIGHLAND, CA 92346 [and] NANCY LOZANO 6844 TIARA AVE HIGHLAND, CA 92346
Mailing Address: 31 W CIVIC CENTER DRIVE SANTA ANA, CA 92701
This Business is Conducted By: A GENERAL PARTNERSHIP
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
S/ MICHAEL GUTIERREZ
This statement was filed with the County Clerk of San Bernardino on: 05/06/2020
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: 04/28/2020
County Clerk, Deputy C9754
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernardino County Sentinel on 05/29, 06/05, 6/12 & 6/19, 2020.
FBN 20200004319
The following person is doing business as: THE CUT SHOT 9153 LEMON AVE ALTA LOMA, CA 91701 TWILA KNIGHT POULIOT 9153 LEMON AVE ALTA LOMA, CA 91701 [and] MATTHEW R POULIOT 9153 LEMON AVE ALTA LOMA, CA 91701
This Business is Conducted By: A MARRIED COUPLE
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
S/ TWILA KNIGHT POULIOT
This statement was filed with the County Clerk of San Bernardino on: 05/06/2020
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: N/A
County Clerk, Deputy A8608
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernardino County Sentinel on 5/29/20, 6/05/20, 6/12/20 & 6/19/20.
FICTITIOUS BUSINESS NAME
STATEMENT FILE NO-20200004235
The following person(s) is(are) doing business as: New Line Network, 16277 Montgomery Ave, Fontana, CA 92336, Keytonn Alonso, 16277 Montgomery Ave, Fontana, CA 92336
Business is Conducted By: An Individual
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
s/ Keytonn Alonso
This statement was filed with the County Clerk of San Bernardino on: 5/1/20
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: N/A
County Clerk, s/ A8608
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernardino County Sentinel on 5/29/20, 6/5/20, 6/12/20, 6/19/20
FBN 20200004868
The following person is doing business as: MOSAIC SUITES 948 N. MOUNTAIN AVE. #938 SUITE 129 ONTARIO, CA 01762 JUDITH P. ZAMORA 2302 S. CALDWELL AVE. ONTARIO, CA 91761
Mailing Address: 2302 S. CALDWELL AVE. ONTARIO, CA 91761
This Business is Conducted By: AN INDIVIDUAL Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
S/ MICHAEL GUTIERREZ
This statement was filed with the County Clerk of San Bernardino on: 05/27/2020
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: 05/26/2020
County Clerk, Deputy
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernardino County Sentinel on 6/05, 6/12, 6/19 & 6/26, 2020.
FICTITIOUS BUSINESS NAME STATEMENT FILE NO-20200004987
The following person(s) is(are) doing business as: Willy’s Speed Shop, 6905 Palm Ave, Highland, CA 92346, Mailing Address: PO BOX 930, Highland. CA 92346, Kenneth M. Brana, Socal Engineering, CA 6909 Center St, Highland, CA 92346
Business is Conducted By: A Limited Liability Company
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
s/ Kenneth Brana
This statement was filed with the County Clerk of San Bernardino on: 6/1/20
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: N/A
County Clerk, s/ D5511
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernardino County Sentinel on 6/5/20, 6/12/20, 6/19/20, 6/26/20
NOTICE OF PETITION TO ADMINISTER ESTATE OF:
MARIA DE JESUS PARRA
NO. PROPS 2000267
To all heirs, beneficiaries, creditors, contingent creditors, and persons who may otherwise be interested in the will or estate, or both of MARIA DE JESUS PARRA
A PETITION FOR PROBATE has been filed by MARIA D. PARRA in the Superior Court of California, County of SAN BERNARDINO.
THE PETITION FOR PROBATE requests that MARIA D. PARRA be appointed as personal representative to administer the estate of the decedent.
THE PETITION requests authority to administer the estate under the Independent Administration of Estates Act. (This authority will allow the personal representative to take many actions without obtaining court approval. Before taking certain very important actions, however, the personal representative will be required to give notice to interested persons unless they have waived notice or consented to the proposed action.) The independent administration authority will be granted unless an interested person files an objection to the petition and shows good cause why the court should not grant the authority.
A hearing on the petition will be held in Dept. No. S37 at 1:30 p.m. on JULY 14, 2020 at Superior Court of California, County of San Bernardino, 247 West Third Street, San Bernardino, CA 92415, San Bernardino District.
IF YOU OBJECT to the granting of the petition, you should appear at the hearing and state your objections or file written objections with the court before the hearing. Your appearance may be in person or by your attorney.
IF YOU ARE A CREDITOR or a contingent creditor of the decedent, you must file your claim with the court and mail a copy to the personal representative appointed by the court within the later of either (1) four months from the date of first issuance of letters to a general personal representative, as defined in section 58(b) of the California Probate Code, or (2) 60 days from the date of mailing or personal delivery to you of a notice under Section 9052 of the California Probate Code.
Other California statutes and legal authority may affect your rights as a creditor. You may want to consult with an attorney knowledgeable in California law.
YOU MAY EXAMINE the file kept by the court. If you are a person interested in the estate, you may file with the court a Request for Special Notice (form DE-154) of the filing of an inventory and appraisal of estate assets or of any petition or account as provided in Probate Code section 1250. A Request for Special Notice form is available from the court clerk.
Attorney for the Petitioner: MICHAEL C. MADDUX, ESQ.
1894 COMMERCENTER WEST, SUITE 108
SAN BERNARDINO, CA 92408
Telephone No: (909) 890-2350
Published in the San Bernardino County Sentinel on 6/12, 6/19 & 6/26, 2020
NOTICE OF PETITION TO ADMINISTER ESTATE OF:
MARIA CARMEN ZELADA PUTNAM
NO. PROPS 2000282
To all heirs, beneficiaries, creditors, contingent creditors, and persons who may otherwise be interested in the will or estate, or both of MARIA CARMEN ZELADA PUTNAM aka MARIA PUTNAM
A PETITION FOR PROBATE has been filed by ANDREA MARIA PUTNAM RAMIREZ in the Superior Court of California, County of SAN BERNARDINO.
THE PETITION FOR PROBATE requests that ANDREA MARIA PUTNAM RAMIREZ be appointed as personal representative to administer the estate of the decedent.
THE PETITION requests the decedent’s wills and codicils, if any, be admitted to probate. The will and any codicils are available for examination in the file kept by the court.
THE PETITION requests authority to administer the estate under the Independent Administration of Estates Act. (This authority will allow the personal representative to take many actions without obtaining court approval. Before taking certain very important actions, however, the personal representative will be required to give notice to interested persons unless they have waived notice or consented to the proposed action.) The independent administration authority will be granted unless an interested person files an objection to the petition and shows good cause why the court should not grant the authority.
A hearing on the petition will be held in Dept. No. S35 at 9:00 a.m. on JULY 23, 2020 at Superior Court of California, County of San Bernardino, 247 West Third Street, San Bernardino, CA 92415, San Bernardino District.
IF YOU OBJECT to the granting of the petition, you should appear at the hearing and state your objections or file written objections with the court before the hearing. Your appearance may be in person or by your attorney.
IF YOU ARE A CREDITOR or a contingent creditor of the decedent, you must file your claim with the court and mail a copy to the personal representative appointed by the court within the later of either (1) four months from the date of first issuance of letters to a general personal representative, as defined in section 58(b) of the California Probate Code, or (2) 60 days from the date of mailing or personal delivery to you of a notice under Section 9052 of the California Probate Code.
Other California statutes and legal authority may affect your rights as a creditor. You may want to consult with an attorney knowledgeable in California law.
YOU MAY EXAMINE the file kept by the court. If you are a person interested in the estate, you may file with the court a Request for Special Notice (form DE-154) of the filing of an inventory and appraisal of estate assets or of any petition or account as provided in Probate Code section 1250. A Request for Special Notice form is available from the court clerk.
Attorney for the Petitioner: MICHAEL C. MADDUX, ESQ.
1894 COMMERCENTER WEST, SUITE 108
SAN BERNARDINO, CA 92408
Telephone No: (909) 890-2350
Published in the San Bernardino County Sentinel on 6/12, 6/19 & 6/26, 2020
NOTICE OF PETITION TO ADMINISTER ESTATE OF:
JOHN JULIAN KELLY
NO. PROPS 2000288
To all heirs, beneficiaries, creditors, contingent creditors, and persons who may otherwise be interested in the will or estate, or both of JOHN JULIAN KELLY aka JOHN J. KELLY aka JACK KELLY
A PETITION FOR PROBATE has been filed by AUDREY RACHEL KELLY in the Superior Court of California, County of SAN BERNARDINO.
THE PETITION FOR PROBATE requests that AUDREY RACHEL KELLY be appointed as personal representative to administer the estate of the decedent.
THE PETITION requests the decedent’s wills and codicils, if any, be admitted to probate. The will and any codicils are available for examination in the file kept by the court.
THE PETITION requests authority to administer the estate under the Independent Administration of Estates Act. (This authority will allow the personal representative to take many actions without obtaining court approval. Before taking certain very important actions, however, the personal representative will be required to give notice to interested persons unless they have waived notice or consented to the proposed action.) The independent administration authority will be granted unless an interested person files an objection to the petition and shows good cause why the court should not grant the authority.
A hearing on the petition will be held in Dept. No. S37 at 1:30 p.m. on JULY 21, 2020 at Superior Court of California, County of San Bernardino, 247 West Third Street, San Bernardino, CA 92415, San Bernardino District.
IF YOU OBJECT to the granting of the petition, you should appear at the hearing and state your objections or file written objections with the court before the hearing. Your appearance may be in person or by your attorney.
IF YOU ARE A CREDITOR or a contingent creditor of the decedent, you must file your claim with the court and mail a copy to the personal representative appointed by the court within the later of either (1) four months from the date of first issuance of letters to a general personal representative, as defined in section 58(b) of the California Probate Code, or (2) 60 days from the date of mailing or personal delivery to you of a notice under Section 9052 of the California Probate Code.
Other California statutes and legal authority may affect your rights as a creditor. You may want to consult with an attorney knowledgeable in California law.
YOU MAY EXAMINE the file kept by the court. If you are a person interested in the estate, you may file with the court a Request for Special Notice (form DE-154) of the filing of an inventory and appraisal of estate assets or of any petition or account as provided in Probate Code section 1250. A Request for Special Notice form is available from the court clerk.
Attorney for the Petitioner: MICHAEL C. MADDUX, ESQ.
1894 COMMERCENTER WEST, SUITE 108
SAN BERNARDINO, CA 92408
Telephone No: (909) 890-2350
Published in the San Bernardino County Sentinel on 6/12, 6/19 & 6/26, 2020
NOTICE OF PETITION TO ADMINISTER ESTATE OF:
VIVIAN A. DIXON
NO. PROPS 2000298
To all heirs, beneficiaries, creditors, contingent creditors, and persons who may otherwise be interested in the will or estate, or both of VIVIAN A. DIXON aka VIVIAN ANN DIXON aka VIVIAN A. BROOKS
A PETITION FOR PROBATE has been filed by TENISHA JENKINS LIVAS in the Superior Court of California, County of SAN BERNARDINO.
THE PETITION FOR PROBATE requests that TENISHA JENKINS LIVAS be appointed as personal representative to administer the estate of the decedent.
THE PETITION requests authority to administer the estate under the Independent Administration of Estates Act. (This authority will allow the personal representative to take many actions without obtaining court approval. Before taking certain very important actions, however, the personal representative will be required to give notice to interested persons unless they have waived notice or consented to the proposed action.) The independent administration authority will be granted unless an interested person files an objection to the petition and shows good cause why the court should not grant the authority.
A hearing on the petition will be held in Dept. No. S37 at 1:30 p.m. on JULY 16, 2020 at Superior Court of California, County of San Bernardino, 247 West Third Street, San Bernardino, CA 92415, San Bernardino District.
IF YOU OBJECT to the granting of the petition, you should appear at the hearing and state your objections or file written objections with the court before the hearing. Your appearance may be in person or by your attorney.
IF YOU ARE A CREDITOR or a contingent creditor of the decedent, you must file your claim with the court and mail a copy to the personal representative appointed by the court within the later of either (1) four months from the date of first issuance of letters to a general personal representative, as defined in section 58(b) of the California Probate Code, or (2) 60 days from the date of mailing or personal delivery to you of a notice under Section 9052 of the California Probate Code.
Other California statutes and legal authority may affect your rights as a creditor. You may want to consult with an attorney knowledgeable in California law.
YOU MAY EXAMINE the file kept by the court. If you are a person interested in the estate, you may file with the court a Request for Special Notice (form DE-154) of the filing of an inventory and appraisal of estate assets or of any petition or account as provided in Probate Code section 1250. A Request for Special Notice form is available from the court clerk.
Attorney for the Petitioner: MICHAEL C. MADDUX, ESQ.
1894 COMMERCENTER WEST, SUITE 108
SAN BERNARDINO, CA 92408
Telephone No: (909) 890-2350
Published in the San Bernardino County Sentinel on 6/12, 6/19 & 6/26, 2020
FICTITIOUS BUSINESS NAME
STATEMENT FILE NO-20200004595
The following person(s) is(are) doing business as: Rodriguez Courier Services, 1473 Randy St, D, Upland, CA 91786, Jose R. Rodriguez, 1473 Randy St. #D, Upland, CA 91786,
Business is Conducted By: An Individual
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
s/ Jose R Rodriguez
This statement was filed with the County Clerk of San Bernardino on: 5/15/20
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: 06/23/15
County Clerk, s/ D5511
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
6/12/20, 6/19/20, 6/26/20, 7/3/20
NOTICE OF PETITION TO ADMINISTER ESTATE OF:
CHERYL LYN SCOTT
NO. PROPS 2000131
To all heirs, beneficiaries, creditors, contingent creditors, and persons who may otherwise be interested in the will or estate, or both of CHERYL LYN SCOTT
A PETITION FOR PROBATE has been filed by JEFFREY SCOTT, in the Superior Court of California, County of SAN BERNARDINO.
THE PETITION FOR PROBATE requests that JEFFREY SCOTT be appointed as personal representative to administer the estate of the decedent.
THE PETITION requests the decedent’s wills and codicils, if any, be admitted to probate. The wills and codicils are available for examination in the file kept by the court.
THE PETITION requests authority to administer the estate under the Independent Administration of Estates Act. (This authority will allow the personal representative to take many actions without obtaining court approval. Before taking certain very important actions, however, the personal representative will be required to give notice to interested persons unless they have waived notice or consented to the proposed action.) The independent administration authority will be granted unless an interested person files an objection to the petition and shows good cause why the court should not grant the authority.
A hearing on the petition will be held in Dept. No. S35 at 8:30 a.m. on JULY 15, 2020 at the San Bernardino Justice Center, Superior Court of California, County of San Bernardino, 247 West Third Street, San Bernardino, CA 92415, San Bernardino District.
IF YOU OBJECT to the granting of the petition, you should appear at the hearing and state your objections or file written objections with the court before the hearing. Your appearance may be in person or by your attorney.
IF YOU ARE A CREDITOR or a contingent creditor of the decedent, you must file your claim with the court and mail a copy to the personal representative appointed by the court within the later of either (1) four months from the date of first issuance of letters to a general personal representative, as defined in section 58(b) of the California Probate Code, or (2) 60 days from the date of mailing or personal delivery to you of a notice under Section 9052 of the California Probate Code.
Other California statutes and legal authority may affect your rights as a creditor. You may want to consult with an attorney knowledgeable in California law.
YOU MAY EXAMINE the file kept by the court. If you are a person interested in the estate, you may file with the court a Request for Special Notice (form DE-154) of the filing of an inventory and appraisal of estate assets or of any petition or account as provided in Probate Code section 1250. A Request for Special Notice form is available from the court clerk.
Attorney for the Petitioner:
R. SAM PRICE, ESQ.
SBN 208603
300 E. STATE STREET, SUITE 620
REDLANDS, CA 92373
Telephone No: (909) 475-8800
Published in the San Bernardino County Sentinel 6/19, 6/26 & 7/03, 2020
FBN 20200004634
The following entity is doing business as: GRAND TERRACE HAPPENINGS 21712 VIVIENDA AVE GRAND TERRACE, CA 92313 JEFFREY E MCCONNELL 21712 VIVIENDA AVE GRAND TERRACE, CA 92313
This Business is Conducted By: AN INDIVIDUAL
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
S/ JEFFREY MCCONNELL
This statement was filed with the County Clerk of San Bernardino on: 5/18/2020
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: N/A
County Clerk, Deputy
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernardino County Sentinel on 6/12, 6/19, 6/26 & 7/3, 2020.
ORDER TO SHOW CAUSE FOR CHANGE OF NAME CASE NUMBER CIVDS2009782
TO ALL INTERESTED PERSONS: Petitioner TORI TAN filed with this court for a decree changing names as follows:
TORI FENGZHUO TAN to TORI TAN
THE COURT ORDERS that all persons interested in this matter appear before this court at the hearing indicated below to show cause, if any, why the petition for change of name should not be granted. Any person objecting to the name changes described above must file a written objection that includes the reasons for the objection at least two court days before the matter is scheduled to be heard and must appear at the hearing to show cause why the petition should not be granted. If no written objection is timely filed, the court may grant the petition without a hearing.
Notice of Hearing:
Date: 07/23/2020
Time: 10:30 a.m.
Department: S17
The address of the court is Superior Court of California,County of San Bernardino, San Bernardino District – Civil Division, 247 West Third Street, Same as above, San Bernardino, CA 92415-0210, San Bernardino
IT IS FURTHER ORDERED that a copy of this order be published in the SAN BERNARDINO COUNTY SENTINEL in San Bernardino County California, once a week for four successive weeks prior to the date set for hearing of the petition.
Dated: May 29, 2020 By Justin Manassee, Deputy
Lynn M. Poncin
Judge of the Superior Court.
Published in the San Bernardino County Sentinel on 6/19, 6/26, 7/03 & 7/10, 2020.
FBN 20200004767
The following entity is doing business as: ALLIES’S CRAFT HOUSE 3898 SCARLET OAK CT SAN BERNADINO, CA 92407 ALEXANDRA J BECKER 3898 SCARLET OAK CT SAN BERNADINO, CA 92407
This Business is Conducted By: AN INDIVIDUAL
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
S/ ALEXANDRA BECKER
This statement was filed with the County Clerk of San Bernardino on: 5/21/2020
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: N/A
County Clerk, Deputy
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernardino County Sentinel on 6/19, 6/26, 7/3 & 7/10, 2020.
FBN 20200004634
The following entity is doing business as: GROOVE’S KITCHEN 12838 YORBA AVE CHINO, CA 91710 JOAQUIN FLORES 2838 YORBA AVE CHINO, CA 91710
This Business is Conducted By: AN INDIVIDUAL
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
S/ JEFFREY MCCONNELL
This statement was filed with the County Clerk of San Bernardino on: 5/29/2020
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: May 16, 2020
County Clerk, Deputy
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernardino County Sentinel on 6/19, 6/26, 7/3 & 7/10, 2020.
FICTITIOUS BUSINESS NAME STATEMENT FILE NO-20200005319
The following person(s) is(are) doing business as: Kwang Construction Service, 5670 Arrow Hwy, Montclair, CA 91763, Whole Home Project Resource LLC, 5670 Arrow Hwy, Montclair, CA 91763
Business is Conducted By: A Limited Liability Company
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
s/ Wen Chih Shen
This statement was filed with the County Clerk of San Bernardino on: 6/11/20
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: N/A
County Clerk, s/ D5511
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernadino County Sentinel 6/19/20, 6/26/20, 7/3/20, 7/10/20
FICTITIOUS BUSINESS NAME STATEMENT FILE NO-20200005118
The following person(s) is(are) doing business as: US China Properties Group, 12736 N. Bend Ct, Rancho Cucamonga, CA 91739, Mailing Address: P.O. Box 3358, Rancho Cucamonga, CA 91729, Carlton Premier Realty, Inc,12736 N. Bend Ct, Rancho Cucamonga, CA 91739
Business is Conducted By: A Corporation
Signed: BY SIGNING BELOW, I DECLARE THAT ALL INFORMATION IN THIS STATEMENT IS TRUE AND CORRECT. A registrant who declares as true information, which he or she knows to be false, is guilty of a crime. (B&P Code 17913) I am also aware that all information on this statement becomes Public Record upon filing.
s/ Laura Zhang
This statement was filed with the County Clerk of San Bernardino on: 6/5/20
I hereby certify that this is a correct copy of the original statement on file in my office.
Began Transacting Business: N/A
County Clerk, s/ V0956
NOTICE- This fictitious business name statement expires five years from the date it was filed in the office of the county clerk. A new fictitious business name statement must be filed before that time. The filing of this statement does not of itself authorize the use in this state of a fictitious name in violation of the rights of another under federal, state, or common law (see section 14400 et. Seq. Business & Professions Code).
Published in the San Bernadino County Sentinel 6/19/20, 6/26/20, 7/3/20, 7/10/20
Read The June 12 SBC Sentinel Here
Clicking on the blue portal below facilitates an electronic pathway to the PDF version of the June 12 edition of the San Bernardino County Sentinel. The full download duration is roughly 14 seconds.
Evidence Of SB Mayor Valdivia’s Graft Involvement & Bribetaking Mounting
The only question at present is the degree to which revelations with regard to his bribetaking and the quid pro quo arrangements he involved himself in will envelope other powerful political personages and public officials, including exposing efforts by his associates, members of his political machine, campaign backers, members of the city council as well as the city attorney and the police department hierarchy to protect him from prosecution.
Into the mix are indicators that Valdivia’s erratic behavior by which his questionable or illegal dealings will suddenly loom into stark relief is an outgrowth of his struggle with narcotic use.
One of the worst kept secrets at what now suffices for San Bernardino City Hall is that Valdivia’s advocacy on an individual’s or company’s behalf can be had for a price. Accounts abound relating to Valdivia taking money to influence votes or actions on city contracts, city franchises, or project approvals which are effectuated in the city’s backrooms or as result of a vote of the city council. Those accounts vary as to whether the money is ultimately reported as a donation to his electioneering fund, as income to his consulting business or whether it goes unreported altogether.
Somewhat ironically, as mayor, Valdivia under normal circumstances is not empowered to vote with the council on routine matters that come before that panel over which he serves as the presiding officer. Nevertheless, in the first nine months after he was elevated as mayor he had de facto control of the council’s ruling coalition and until the beginning of this year it was yet widely assumed that the majority of the council would automatically bend to his will. To those now paying attention to the council’s dynamics, it is clear that his reliable allies among the seven-member decision-making body has dwindled to two, virtually ensuring that with regard to most issues that play out before the council, his influence has been strikingly attenuated.
Still the same, following his November 2018 election as mayor and in the immediate aftermath of his swearing in to that office on December 19, 2018, his political stock had risen astronomically over what it had been during the six previous years of his political career, while he was serving as city councilman in San Bernardino’s Third Ward. As the newly installed mayor he appeared to have the support of four of the council’s six members at that point – First District Councilman Ted Sanchez, who had been elected in his maiden run for political office in November 2018, with Valdivia’s backing; Second District Councilwoman Sandra Ibarra, who like Sanchez had struck gold in her first effort at capturing political office in November 2018, likewise with Valdivia’s support; Fifth District Councilman Henry Nickel, with whom Valdivia had developed a political affinity over the five years they had been council colleagues; and Sixth Ward Councilwoman Bessine Richard, who had been elected in a hard-fought runoff election that carried over into 2016 following a tough four-way race in 2015 in which none of the candidates had managed to poll a majority of the vote. Richard was able to score a substantive victory to obtain her current berth on the council in no small measure on the strength of Valdivia’s advice and direction as well as the monetary support from his own coterie of supporters he had vectored her way.
To step up to the mayor’s post after his victory over incumbent Mayor Carey Davis in 2018, Valdivia was obliged to resign from his previous position on the council, that being councilman in the Third District, a position to which he had last been elected in 2015 prior to the 2016 charter change which moved San Bernardino elections from odd to even years. To fill the gap his resignation created, the city held a special election in May 2019. In that contest, Valdivia threw his backing to Juan Figueroa, who, assisted by Valdivia’s political consultant Chris Jones and the substantial amount of money Valdivia managed to scare up from his own political backers, cruised to an easy victory in that race. Thereupon, Valdivia had what was widely assumed to be an absolute lock on the city council, with only Fourth District Councilman Fred Shorett and Seventh District Councilman Jim Mulvihill crosswise of his agenda.
With his political machine firmly entrenched within the city’s governing structure, Valdivia was empowered to make policy and municipal authority at virtually every level in San Bernardino bend to his will.
Traditionally in Southern California, politicians on the make have achieved advancement by trading their authority for cash. These elected officials will lend the power of their office to whoever can make use of it, be they a service provider seeking a franchise conferred by the government, a vendor looking to sell a governmental entity a service or goods, or deep-pocketed developers or land interests hoping to prosper through the suspension of a land use use regulation or zoning restrictions or infrastructure building requirements or some other standard. In return, the beneficiary makes an investment in the politician or his political career in the crude form of outright bribes or kickbacks or the more refined form of legal but unseemly political donations.
Valdivia’s ability to enrich himself through the sale of his office was attenuated by San Bernardino’s more than two-decade-running economic death spiral that began with the shuttering of Norton Air Force Base in 1994. The declension in property values that accompanied the mass exodus of military personnel from the city, the loss of a whole class of jobs held by a strata of San Bernardino’s civilian residents, the decrement of federal money from the community, the wholesale emptying of existing buildings once filled with thriving commercial establishments and businesses, and the accompanying blight has virtually eliminated the need for further development or any prospect of any semblance of economic growth in the area. The resultant steep downturn in tax revenue to the city has led, in turn, to the decay of basic infrastructure. For Valdivia, there were so few entities in the city willing to pursue development projects that there was no opportunity to shake them down for bribes or payoffs.
In only a limited number of areas was the economy in San Bernardino not stagnating. The most promising province for growth was that of the nascent cannabis industry. In 2016, the statewide passage of Proposition 64, the Adult Use of Marijuana Act, had legalized marijuana use for its intoxicative effect. The same year Measure O had been placed on the ballot in San Bernardino, calling for allowing the retail sale of marijuana and its derivatives and byproducts, both for medical and recreational purposes. Between 2016 and 2018, there was, despite the voter mandates statewide and within the city to liberalize marijuana policy, substantial resistance to doing so as then-Mayor Davis, as well as councilmen Shorett, Mulvihill and Henry Nickel were philosophically opposed to the marijuanification of the city, and Davis, Shorett and Mulvihill were so culturally tone deaf that they were virtually incapable of distinguishing marijuana from other types of what had been for generations considered street drugs such as heroin, cocaine, amphetamines, and barbiturates. Meanwhile, Randy Welty, who had bankrolled getting Measure O on the ballot and passed so he could open a marijuana dispensary himself, sued the city so he could proceed at once with that operation. Perhaps for valid reasons or perhaps as part of a calculated strategy of dragging the city’s feet for as long as it could to delay the inevitable licensing and permitting of legalized marijuana, the lawsuit Welty brought against the city languished in the courts, providing the city with a legal rational for delaying the creation of a permitting and licensing process for such operations while the issues under litigation were being hashed out. Meanwhile, illicit dispensaries flourished throughout the 215,000 population 61.95-square mile city, as the police department made desultory efforts to raid those establishments, shutting them down, whereupon most of those bootleg operators would simply relocate to a hole-in-the-wall elsewhere in the city to persist in their black-market entrepreneurship. In August 2017, the city came to terms with Welty, granting him a license. It then moved on to the next round of delay, undertaking to formulate an ordinance that was based upon Measure O and the refinements of city marijuana policy that the city claimed were the byproduct of the litigation with Welty. In February 2018, the San Bernardino City Council passed an ordinance of its own creation allowing a limited number of marijuana-related commercial businesses in the city to function on limited duration permits that were to be renewed or discontinued annually, dependent upon whether their owners and operators complied with state and local law.
The ordinance allowed up to 17 cannabis-based businesses within the city limits, and was intended to supersede Measure O. The ordinance set a ratio of one cannabis-oriented business per 12,500 residents, which translates into a maximum of 17 marijuana concerns. The city thereafter began to accept applications for the licenses.
As the Davis administration was drawing to a close, a flawed and imperfect permitting/licensing process had begun, but had yet to reach its denouement, with the only permit that was issued being that for Welty’s operation.
Even before Valdivia took up the mayoral gavel, an event transpired which betrayed the anti-marijuana platitudes Valdivia had mouthed earlier in his political career were mere posturing, and that behind the scenes he was cutting deals with those trafficking in the once-absolutely illegal substance in return for money, either of the sort that would fill his campaign coffer or his own pockets.
Just eight days after his victory over incumbent Mayor Carey Davis and more than a month before he was installed as mayor, Valdivia on November 14, 2018 met with David Li, the owner of a property at 1435 North Waterman Avenue where an illicit but highly visible marijuana dispensary was located.
Li had been arrested and charged with two felonies after the dispensary, run by one of his renters, was raided thrice by the San Bernardino Police Department over the previous nine months. As a commercial real estate developer, Li had asked Valdivia to meet with him, other real estate developers interested in bringing affordable housing to the city and two groups exploring opening legal dispensaries in San Bernardino. Li believed Valdivia had enough pull to facilitate the efforts of those gathered, but it turned out Valdivia said he would be unable to act on their collective behalf, slyly leaving open the possibility he might be motivated to do something if enough silver crossed his palm. Following that “meet-and-greet,” as Valdivia referred to it, and the discussion of investment opportunities ended, less than an hour after the mayor-elect departed, a masked gunman came into the commercial space at the 1435 North Waterman Avenue location that was being renovated, and demanded money. A man there who was interested in transforming the property into a farmers market attempted to flee, at which point he was shot in the leg. The robber then made off with $25,000 in cash he took from Li.
Concerned about what might ensue after the police department initiated an investigation in which it might learn of his presence there and from which point things might careen out of control, Valdivia himself called the police department, arranging to make his statement to the department’s acting assistant police chief, David Green, who Valdivia believed would prove to be far more discreet and sensitive to political nuance in handling an investigation in which the soon-to-be-mayor’s name would surface than might a detective assigned to the matter. Valdivia insisted that he was in no way involved in the robbery that took place after his departure from the scene.
Magically, Valdivia dodged that bullet, as Green kept under wraps that the mayor-elect was present at the scene of what had once been an illegal operation while meeting with two groups of would-be cannabis entrepreneurs, as well as a man accused by the city’s police department of felonious activity.
Ultimately, Li would be acquitted of the charges against him.
Having sidestepped that scandal, Valdivia came into office, ready to take advantage of the wide-open opportunity for him to profiteer, exploiting his authority and the not-fully gestated licensing regime the city was struggling to put together. The Valdivia administration had inherited from Davis’s a host of marijuana/cannabis-related business licensing and permitting criteria, ones that were by no means perfect, formulated as they were under the authority of a political leader – Davis – to whom the drug culture was as foreign as the most obscure dialect of the Koro language, and which was at least in part designed to make obtaining such a license both difficult and expensive. Valdivia did not squander what was presented to him. Just two days more than two months after he became mayor, on February 21, 2019, the city council signed off on providing 16 permits to run marijuana/cannabis-related operations to 15 companies from among the 39 applications from 38 applicants for licenses. When the city council was pressed on what, precisely, had informed its decision to provide the permits to the 15 entities that were selected, the question was deflected with the assertion that the decision followed from the a staff recommendation. When staff was questioned, it was asserted that the selection process had been handled in accordance with an analysis of the applications carried out by the city’s consultant, HdL. HdL proved virtually unapproachable when inquiries were made with regard to its recommendations.
Empire Connect, Pure Dispensaries, Have a Heart, JIVA, and PTRE Management were given retail licenses. All five, curiously, were located in San Bernardino’s Third Ward at the extreme south end of the city, the political subdivision where Valdivia had been councilman. Equally notable was that four of the five microbusiness licenses went to businesses located within the Third Ward. A microbusiness under California law pertains to a license which allows a licensee to engage in the cultivation of cannabis on an area less than 10,000 square feet and to act as a licensed distributor, manufacturer of cannabis products and a retailer. In order to hold a microbusiness license, a licensee must engage in at least three of the four listed commercial cannabis activities. San Bernardino’s microbusinesses were Orange Show Cultivators, which was to engage in cultivation, manufacturing and distribution; SOCA Farms, involving retailing, cultivation and distribution; Central Avenue Nursery, a cultivator, retailer and distributor; and Nibble This, which was to entail retailing, manufacturing and distribution. Nibble This was also provided with a second permit to open a retailing, manufacturing and distribution operation at a location in the Sixth Ward, in the northwestern corner of the city.
The simple cultivation permits that were granted were more evenly distributed geographically, with Accessible Options set to grow in the southeastern First Ward; 14 Four and GWC Real Estate Services given agricultural clearance in the Third Ward; and Organtix Orchards to raise the herb in the Sixth Ward.
AM-PM Management, located in the centrally-positioned Second Ward, was the recipient of a manufacturing permit and Blunt Brothers, a distributor, was given a permit to operate its warehouse and dispatch office in the Third Ward.
Those 16 operations run by 15 entities joined Welty as those with an entitlement to set up marijuana/cannabis-related businesses in the city. The permits were a prerequisite to, but distinct from, licensing. Each operation would need to get a state license and continue to comply with the standards the city had set. In granting the permits, the city council had essentially certified that the businesses as proposed were in compliance with the municipal code, the city’s general plan and all other applicable city regulations.
While the city council’s action, no doubt, pleased the 15 companies that were winners in the permit sweepstakes, there were 23 applicants who were left on the outside looking in. That led to a hard examination of the entities that had gotten the permits.
Subsequent events would demonstrate that Organtix Orchards, AM-PM Mgmt. Inc., Orange Show Cultivators, Blunt Brothers, Accessible Options and Nibble This LLC were in violation of the municipal code or general plan in at least one respect and in some cases on multiple grounds. Moreover, it was determined, in at least a handful of the 23 cases where licensing was denied, those applicants met the city’s criteria.
After the permits were granted, Valdivia, without any explanation as to why, began to absent himself from the council dais when issues relating to cannabis/marijuana commercial licensing came before the council. Until December 2019, the meetings at such times were previously and currently officiated over by Councilwoman Richard, who was then the city’s designated mayor pro tem. After Councilman Sanchez was designated mayor pro tem in December 2019, he thereafter would chair meetings in Valdivia’s absence.
Without any clarification being forthcoming as to why it was that Valdivia was distancing himself from any action by the council relating to marijuana/cannabis-related businesses, there followed reports that, first, Mayor Valdivia was serving as a consultant to the owners of marijuana/cannabis-related business applicants in their efforts to obtain permits and licensing for their operations and, second, that Valdivia himself has a financial interest in a cannabis-related enterprise or cannabis-related enterprises.
At the same time, there were whispers about town that HdL, upon whose advice the council had separated the 38 applicants for cannabis-related business licenses into 15 haves and 23 have-nots, was in some fashion accepting retainers on the side from applicants, and that the city’s licensing process had in this way been compromised.
Ultimately, eight of those 23 applicants, SB Pharma Holdings, Inc. doing business as The Row House; Ashe Society SB, LLC; EEL Holdings, Inc., LLC; Washington, LLC; KP Investment Group, LLC; ECS Labs, Inc.; Luke LLC; and RZNHEAD, sued the city over their failure to obtain licensing.
Independent of those lawsuits, discontent among a large number of the entrepreneurs who were competing for those marijuana/cannabis-related business permits came to light. Information now coming available as a consequence of the lawsuits in many respects confirms or reinforces what was previously revealed by those who were aced out in the permit/licensing evaluation process. A picture emerges of Valdivia representing to those seeking permits that in exchange for money – be it donations to his electioneering fund or to his consulting company, AAdvantage Comm or directly into his pocket, that he would intercede on their behalf to ensure they obtained a permit.
Valdivia’s was an elaborate scheme, one into which was built three layers of protection, which insulated him from potential prosecution or political mishap. The first line of separation or insulation was that Valdivia would not be in the position of actually voting on the granting of those licenses. As mayor in San Bernardino, Valdivia was not empowered to vote under normal conditions. Only in the event of a tie could he cast a vote. His other direct influence on a matter before the council was that he had veto power, but only in cases of a 4-to-3 or 3-to-2 vote on an item. Thus, Valdivia was angling to accomplish his goals by proxy, through having the council, over whom he held sway, approve the list of applicants he favored.
There is evidence to indicate that Valdivia was able to execute, at least partially, on his game plan. There are also indications that in at least a handful of cases he failed to delivery on what he promised. This was in some measure attributable to Valdivia having overbooked the guarantees of permits. On February 21, 2019, there had been an upward limitation on the number of permits to be handed around – 16. What is evident is that Valdivia had made commitments to more than half of the 38 applicants who were in the hunt for for those permits.
Failed applicants have told the Sentinel that in the months and weeks before the council vote on February 21, 2019, Valdivia, either as the mayor-elect or mayor, had offered those seeking permits assurances that marijuana/cannabis-related business permits and licenses would be forthcoming for those who would endow him, his company or his campaign coffers with money. It was clear from the context of these reports the Sentinel has received that these were outright quid pro quos.
Those accounts are corroborated by others not involved in the application process who said that at social, governmental and political functions, when Valdivia encountered anyone who expressed an interest in opening a marijuana-based or cannabis-based business or even inquired about the city’s policy with regard to such operations, which for generations had been illegal in San Bernardino as well as elsewhere in San Bernardino County and California, that as mayor he was the person to work with if the party was interested in exploring the commercial potential of growing or selling marijuana in San Bernardino.
Don Smith, who had worked on Valdivia’s mayoral campaign in 2018 and then in 2019 went to work in Valdivia’s office as one of his legislative field assistants, has since filed a claim, supported by sworn affidavits, against the city and Valdivia, alleging he was mistreated by Valdivia while employed with the city. Smith’s claim states, “Valdivia was soliciting marijuana dispensary owners for contributions and told several of them “If you want to do business in San Bernardino, I am the guy to talk to.”
A more explicit account of Valdivia shaking down permit applicants was provided by Victor Munoz, who last month made a sworn declaration relating to his experience in dealing with Valdivia in his efforts to obtain permitting/licensing for a marijuana based business while Valdivia was yet a councilman and after he became mayor. “I was introduced to Mayor John Valdivia by a mutual friend around 2017 for the purpose of obtaining a marijuana retail license within the City of San Bernardino,” Munoz’s declaration states. “It was explained to me by Valdivia that in order to get my license, the system was set up like a lottery point system and I had to pay for extra points to better my chances. Valdivia guaranteed me a license as long as I did what he told me to do and I donated to his campaign and to his personal needs. Based on Valdivia’s representation, I leased a large 16-acre commercial lot for the purpose of the retail marijuana license. Thereafter, I met up with Valdivia a few times for coffee or lunch to discuss the license and business plans. Valdivia always had ways of indirectly collecting funds so he would not incriminate himself.” According to Munoz, on the day of the deadline for permit applications to be filed with the city, “Valdivia called me on my mobile phone and told me he needed by help and support and needed me to deposit money into his campaign fund. Based on the request by Valdivia, I wired $2,500 to Valdivia’s campaign fund through his website. Nevertheless, I ultimately lost my bid for the city license and found out that most of the licenses went to Valdivia’s family and friends.”
Shortly thereafter, Munoz confronted Valdivia about what had occurred, only to be rebuked with a vulgar insult belittling his masculinity.
Valdivia’s second layer of insulation consisted of his having neutralized the police department, and removing it as a factor that might interfere in his relationships with any of the would-be marijuana/cannabis entrepreneurs who were willing to pay to play in the “lottery” for licensing, as Valdivia put it. Under California law, an elected official is not precluded from voting on or participating in a decision relating to a political donor if the donation came with no strings attached. If either side – the politician or the donor – makes the donation conditional upon a past, current or future act of the official, a legal line is crossed, making that a quid pro quo arrangement, such that the donation is considered a de facto quid pro quo, an illegal inducement, a bribe or kickback. In multiple instances, the Sentinel is informed by those who were seeking permits and licensing, Valdivia made explicit representations that the city would provide permits and/or licenses to those who provided him with money. The police department, while in receipt of such reports, never conducted an effective inquiry into those reports nor examined evidence to support them. While in the course of the police department carrying out its normal and valid duties, illicit and unlicensed marijuana parlors and dispensaries were routinely shut down in the city, action which redounded to at least the potential benefit of the companies vying for licensing from the city. At the same time, the police department showed a pattern of steering clear of those who were engaging with Valdivia illicitly in the securing of city licenses. The Sentinel received an unverified report of one instance in which one of the companies that had succeeded in getting a permit but had yet to secure licensing was operating outside of the permitting process at a different location in the city than was specified in the permit. That company was not subjected to police department enforcement action, by virtue of protection extended to the company through Valdivia, the Sentinel was told.
In 2019, after the city council had settled on which companies would get the 16 marijuana/cannabis-related business operating permits, there was a push on at City Hall to up the pay of the police department’s top administrators. Even after acting Police Chief Eric McBride was given an automatic annual 3.5 percent raise in August 2019 that took his annual salary to $255,963.80, city administrators persisted with a proposal to confer on McBride and acting Assistant Police Chief David Green further raises. On November 6, that initiative had been solidified to add another $23,160 to McBride’s $255,960 pay before benefits, zooming his salary to $279,120 per year, and to increase Green’s $234,264 annual salary before benefits by $20,640 to $254,904, and was brought before the city council for a vote. With the council majority reasoning that the city’s financial circumstance did not permit the city to be making such payroll increase commitments, the motion to give McBride and Green those raises failed, 2-to-4, with council members Fred Shorett, Jim Mulvihill, Sandra Ibarra and Juan Figueroa in opposition and councilmen Ted Sanchez and Henry Nickel in support. In January, in one of the last acts of the city council before Valdivia found himself enveloped in a sexual harassment scandal that appears to have permanently fractured the ruling coalition on the council he once led, increases identical to what had previously been proposed, entailing adding $23,160 to McBride’s $255,960 salary to bring it to $279,120 per year before benefits and to increase Green’s $234,264 annual salary before benefits by $20,640 to $254,904, were set before the council again. Green was the member of the department to whom then-Mayor-elect John Valdivia had turned to for help on November 14, 2018 after he had become entangled in circumstances surrounding the hold-up and shooting at what had formerly been an illicit marijuana dispensary located at 1435 North Waterman Avenue. The vote taken that day to undo the November 6, 2019 vote and approve the raises for McBride and Green, done on 5-to-2 margin with councilmen Mulvihill and Fred Shorett opposed, was the last known instance of the Valdivia-led ruling coalition on the council, consisting of council members Sanchez, Ibarra, Figueroa, Nickel and Richard, holding together.
A third layer of insulation that Valdivia has been able to rely upon was that provided by the law firm Best Best & Krieger, which acts in the capacity of San Bernardino City Attorney. Two of the firm’s members are closely affiliated with the City of San Bernardino. Thomas Rice is the titular city attorney, though he rarely is publicly seen in that role. Rather, Sonia Carvalho, who is designated deputy city attorney, attends virtually all of the city council meetings and serves as the city’s primary legal adviser. Another lawyer formerly with Best Best & Krieger, Daniel Shimell, served as special counsel to the city in defending it against the eight lawsuits brought against it by the companies that applied for marijuana/cannabis-related business permits and were denied them in what they now maintain was a highly flawed selection process tainted by favoritism and graft. In making blanket denials of the allegations in those lawsuits, Shimell was obliged to ignore anything that might suggest the city had acted inappropriately. Thus he could admit no discourse relating to the mayor’s dishonesty. Shimell has since been replaced as San Bernardino’s special counsel with regard to the suits challenging the city’s marijuana/cannabis-related business permitting and licensing process by another Best Best & Krieger lawyer, Christopher Moffitt.
In their capacities, Carvalho and Shimell were exposed to multiple indications that graft has permeated the city’s permitting process, and that Valdivia was a key actor in such activity. In this regard, the performance of HdL, the firm that the city had contracted with to assist in the evaluation of the marijuana/cannabis-related business permits, fell under withering scrutiny. During the first wave, then the second wave and into the third wave of criticism leveled at the city council over its approval of the 16 permits on February 21, 2019, the council members sought to deflect the burgeoning discomfiture of the applicants toward them and allay the wider public perception of something amiss or crooked in the selection process by claiming they were merely deferring to the recommendations made by HdL. HdL and its representatives, however, were less than straightforward in spelling out what criteria had been used in making the evaluations or the scorecards that were kept in the evaluation process. As time progressed, notes were traded between those applicants who had been denied licenses, lawsuits over the matter were filed and more and more information about what had occurred became public. Inconsistencies and a lack of uniformity in the evaluation process were evident and the degree to which the suspension of the city’s standards had occurred grew evident. While some applicants were called in for or afforded personal contact with the evaluators, some were not. A principle the city had layered into the selection criteria was that those companies proposing to utilize their permitting and licensing to engage in cannabis-related research or product derivation that carried with it the potential, prospect or proven capability of the therapeutic value of cannabis were to be given priority over proposals that involved cultivation, warehousing, packaging wholesale or retail sales of the product intended to be used for its intoxicative effect. What occurred, however, was the precise opposite, in which operations that were designed to be the most profitable were favored over others that did not possess as strong of a wholesale or retail component. An analysis of those companies selected indicated that a major factor in the success of the applicants vis-à-vis those that were not successful had been their willingness to coordinate with Valdivia beforehand or during an early stage of the application and evaluation process. HdL fell under suspicion, with word spreading that some of the applicants had secured the company’s services as a consultant. Best Best & Krieger failed to react with alacrity to or act at all upon reports that HdL and Valdivia had been compromised in the city permitting process by money conveyed to them by some of the applicants. Soon, it was being bruited about the community that some of those applicants had likewise retained Best Best & Krieger to represent them, the suggestion being that this explained the disparities in the standards that the city was applying in the cannabis business permitting process. That rumor perpetuated itself, prompting Carvalho to state last week, “Best Best & Krieger, Daniel Shimell, Thomas Rice and Sonia Carvalho categorically deny any allegations that we have facilitated bribes, that we have ever represented any single individual or company applying for a cannabis permit in the City [of San Bernardino] or that we have in any way facilitated any type of conflict of interest.”
HdL and its representatives have consistently made themselves unavailable for discussion of the factors that went into the company’s recommendations to the city on which permit applicants should be accepted. Nor would the company discuss whether Valdivia had any input on the selection process, whether he had interfered in the evaluation process by arranging for certain applicants to be provided with interviews relating to their applications or whether the input Valdivia had provided was a factor in the company’s evaluation of the applicants.
As 2019 progressed, the shortcomings in HdL’s analysis were becoming more and more obvious to a wider and wider circle of city residents, such that standing by that company became untenable for the city council. Relatively quietly, in a move timed to coincide with the Christmas season during which the public’s focus on municipal issues is traditionally attenuated, the council in December ended its contractual relationship HdL for its evaluation of cannabis-related business license applications and other related services and recommendations, electing to give that assignment to SCI. In his motion to switch the city contract over to SCI, Councilman Ted Sanchez suggested the city move beyond “HdL’s colorful history.” Instead of that transition being effectuated on a timely basis, however, over the next six months while a number of loose ends relating to the permitting process were being dealt with and some of those companies were yet endeavoring to perfect their licensing, HdL remained as the city’s consultant. This fueled yet further suspicion that some order of collusion to favor the companies that had shown generosity to Valdivia was yet in play. Last week, the city council at last finalized the transition from HdL to SCI through a special act known as a “clean-up item,” with city officials explaining that what was referred to as an “execution error” was the reason that the contract with HdL was extended another half year.
Of relevance is that Valdivia, either on his own or with the guidance of someone else or others, for the most part has exhibited a degree of discipline in carrying off his depredations so that he does not give himself away as engaging in a running series of violations of the public trust. Nevertheless, on occasion he has slipped up. It is as a consequence and in the aftermath of those mistakes that the apparent bribetaking he is involved in leaps into stark focus. What some of those situations and some of those close to or otherwise involved with him suggest is that he is an intermittent drug user whose periodic episodes of intoxication explain his erratic behavior.
In the vast majority of his official public appearances, such as at city council meetings, hearings and workshops, Valdivia has for the most part come across as the model of even-temperedness and probity, as articulate and disciplined, and capable of maintaining his equanimity in the face of provocations. There have been a few occasions, however, where he evinces what can perhaps best be described as an atypical extreme impatience and petulance, sometimes involving relatively minor things. Moreover, outside of his high profile public appearances, those close to him have described him as slipping into a state of obvious intoxication. Mirna Cisneros, who worked in his office as a citizen relations specialist; Karen Cervantes, who worked as his personal assistant; and Don Smith, Valdivia’s legislative field representative, all recounted occasions during which the mayor became severely intoxicated.
Cisneros said she had received phone calls during which Valdivia’s state of intoxication was apparent, and that in any event he admitted while talking to her that he was drunk.
According to Cervantes, Valdivia in less formal settings was consuming alcohol himself and pressing upon others alcoholic beverages, against their wishes. Cervantes described other occasions when Valdivia evinced unreasonable impatience, anger out of proportion to the circumstance and going into an unaccountable rage on others.
Smith recollected numerous times when Valdivia was drinking heavily and became “extremely intoxicated.” In such circumstances, Smith said, Valdivia exhibited poor judgment and a lack of caution. On one occasion, Smith said, “Even though he was visibly intoxicated, Valdivia got in his car and drove himself home.”
The Sentinel has been provided with numerous accounts of Valdivia’s presence at fundraisers for himself and others, during which he reached a state of inebriation. At one of his fundraisers, the Sentinel was informed, while in the presence of a number of actual or potential political donors, Valdivia openly referenced while talking to a donor about having voted in favor of a lucrative deal involving that particular donor’s company. Unknown was whether the indiscreet remark was a result of Valdivia’s state of intoxication or whether he was trying to signal to the others present that he was willing to return favors to anyone who would back him in his political ambition.
A member of the city council, agreeing to speak to the Sentinel only upon an assurance of anonymity, said there were “convincing” signs that Valdivia’s use of intoxicants went beyond alcohol, including classic symptomology indicating Valdivia was using some sort of stimulant, most likely cocaine or methamphetamine.
A former city official whose tenure at City Hall included more than five years while both were in constant contact with one another, related that Valdivia made no secret of his having access to prescription pain medication.
In his sworn declaration, Munoz spoke of rendezvousing with Valdivia at a “dive bar” in Irvine, some 50 miles distant from San Bernardino and Valdivia’s usual haunts, and that prior to the meet-up there, which Valdivia had called for and during which he attempted to shake him down for more money, Valdivia insisted that he come “alone and with no one else.” When Valdivia arrived, Munoz said, the mayor “appeared to be under the influence of cocaine” and gripped by an accompanying paranoia to the point that Valdivia “accused an unknown customer at the bar that was sitting on the corner of spying on him.”
In 2018, while Valdivia, who is a Republican, was seeking the mayoralty in San Bernardino, he had constant interaction with Bill Essayli, another Republican who in 2018 was vying for the California Assembly in the 60th District, which lies entirely within Riverside County, but contiguous with San Bernardino County. Ultimately, Essayli would narrowly lose that election to Sabrina Cervantes, a Democrat. But prior to that, Valdivia and Essayli, two suede-shoed Republicans out in the political trenches in places where Democrats seriously outnumber members of their own party, hit it off. Valdivia, who was doing extremely well in raising money for his mayoral campaign, transferred some of his funds to Essayli’s campaign to assist him.
After he was situated in office, Valdivia hired Essayli, a lawyer, as his chief of staff. Essayli put on a valiant effort in helping Valdivia take charge of the city, even though a charter reform measure that had been passed by San Bernardino’s voters in 2016 had limited the administrative authority that had resided with mayor pursuant to the city charter that had been in place for 111 years beginning in 1905. Essayli remained as chief of staff through the first six months of 2019, and was in place when Valdivia tightened his grip on the city council with the May 2019 special election to choose his successor as Third District councilman, when Valdivia’s handpicked candidate for the post, Juan Figueroa, emerged victorious.
There were reports, however, of clashes between the headstrong Valdivia and the equally-driven and aggressive Essayli, including what city employees said were shouting matches between the two that could be heard through the closed door of Valdivia’s office.
Essayli departed in July 2019 to return to his law practice.
A political insider told the Sentinel that despite a friendly familiarity between the two men as a result of the 2018 election and their involvement with the Republican Party, they did not actually know each other well when Valdivia hired Essayli. As they began working together in earnest in early 2019 and grew into a cohesive and intimate working team, Essayli was both impressed by Valdivia’s glib political talent but simultaneously taken aback by some of the things he witnessed, the Sentinel was informed. Formerly an assistant U.S. Attorney and deputy district attorney in Riverside County, the straight-laced Essayli, was troubled by the nonchalance with which Valdivia would put the arm on individuals with business before the city, touching them for political donations. And Essayli was not insensitive, based on his experience as a prosecutor, to the signs of drug use. The April 2019 death of Mike Spence, a major figure in Inland Empire Republican Party politics who had descended into the abyss of methamphetamine addiction, had chastened many in the GOP. With Valdivia on what appeared to be a similar trajectory, Essayli decided it was best that he cut ties with him.
When the Sentinel reached Essayli this morning to ask him about Valdivia and the issues that had led to his departure, he said, “I’m not interested in commenting on anything in San Bernardino.”
Valdivia presided over the February 21, 2019 special hearing of the city council to award the permits, but relatively shortly thereafter initiated a practice of absenting himself from the council dais when an issue relating to the marijuana/cannabis-based business licensing came before the council, leaving the proceedings at that point to be officiated over by the then-mayor pro tem, Councilwoman Bessine Richard. In the aftermath of Richard being succeeded by Councilman Sanchez as mayor pro tem, the meetings were and have been conducted by Sanchez in Valdivia’s absence. At such times, Valdivia would precipitously leave without any public explanation as to why. Generally, after the issue relating to cannabis was concluded, Valdivia would return to his position and resume his role as the council’s leader. This was widely interpreted as a sign that Valdivia had some order of a conflict of interest with regard to the city’s marijuana and cannabis issues.
Among those applicants the council had favored with its set of decisions on February 21, 2019 was Nibble This, LLC, which is owned by Kater Bilow and Raquel Origel. Indeed, the council’s accommodation of Nibble This was conspicuous in that the company was given two permits for two separate locations, twice what any of the other successful applicants had achieved. This alone had raised red flags early, as 23 other applicants had been bypassed entirely. A strict requirement of both permitting and licensing in San Bernardino was that the applicant had to have an established physical location to operate out of, meaning it had outright ownership or a lease of the property shown as the location on the permit application. One of the so-called microbusiness permits Nibble was given was for an operation at 4130 West Hallmark Parkway. On November 7, 2019, Nibble This submitted a request for a zoning verification letter for an alternate location at 390 North H Street. On November 18, 2019, Nibble This was issued an approved zoning verification letter for 390 North H Street. On November 19, 2019, Nibble This submitted a commercial cannabis business application, 19-0002, seeking a change in location from 4130 West Hallmark Parkway to 390 North H Street. In the process it was revealed that Nibble This had never secured or otherwise had possession of or the right to occupy the property at 4130 West Hallmark Parkway. This brought into question how it was that Nibble This had obtained the cannabis microbusiness permit it has in the first place. This touched off an effort at the staff level well below that of city manager to rescind the permit that Nibble This had. When word that midlevel staff was seeking to enforce the city’s regulations in such a way that would reverse the provision of one of the permits and pending licenses granted to Nibble This reached the city council and Valdivia, there were convulsions in the backrooms of the city. After the issue with regard to Nibble This was put on the council’s agenda on two occasions and then postponed, it came up for a hearing on February 19. Valdivia was aware that Councilman Sanchez was opposed to granting Nibble This a change in location from 4130 West Hallmark to 390 North H Street, and he recognized that were he to recuse himself and not officiate when the matter was presented to the council that Sanchez might use his authority as the mayor pro tem to conduct that portion of the meeting to sway the outcome against granting the location change. Without explanation, Valdivia broke from his pattern of leaving the dais during matters relating to the city’s marijuana/cannabis policy that night. In a narrow 4-to3 vote, the council granted Nibble This the location change.
The Sentinel inquired with Best Best & Krieger with regard to the issue of the mayor recusing himself and surrendering the meeting gavel to the mayor pro tem on most of the occasions when issues relating to the city’s commercial marijuana/cannabis activity come before the council, whether there was a requirement or tradition of those recusing themselves from participating in the governmental decision-making process giving an explanation of the grounds for their declining to take part, as is commonly done in other jurisdictions; and whether a conflict on Valdivia’s part could be imputed from his practice of leaving the dais when such issues arise. Best Best & Krieger did not respond, nor did it explain the inconsistency in Valdivia recusing himself on most marijuana/cannabis-related business permitting decisions and his participation in the Nibble This relocation matter.
Indeed, Best Best & Krieger appears to be paralyzed by the entire circumstance relating to Valdivia and the legal conundrums he represents to the city and the law firm. The city is now in the position of fighting off four active claims against the city by current or former city employees who maintain that they were maltreated while working directly for Valdivia out of the mayor’s office, which included him making unwanted sexual advances toward the three of those who are women.
Previously, the city found itself besieged by SB Pharma Holdings, Inc. doing business as The Row House; Ashe Society SB, LLC; EEL Holdings, Inc., LLC; Washington, LLC; KP Investment Group, LLC; ECS Labs, Inc.; Luke LLC; and RZNHEAD, all of whom sued the city over its marijuana/cannabis-related business permitting and licensing processes. Daniel Shimell, then of Best Best & Krieger, was serving as special counsel for the city in response to any challenges of its permitting process. Initially, Shimell issued and filed standard boilerplate denials of what the first plaintiff, Washington, LLC, was alleging. But as the number of suits against the city mounted and the facts being alleged registered with him and the court, it grew clear to Shimell that this was not some garden variety contract dispute or land use case with which he had some previous experience handling. Rather, Valdivia and his activity, including the promises he had made to many, kept to some and abrogated with others, all in exchange for campaign cash or money, loomed large. That the city did not abide by its own standards and codes in handing out the permits, that some of those granted permits did not meet the criteria and that virtually all of those who were suing the city had met the city’s criteria but had been denied licenses under the city’s overriding pay-for-play ethos was unhinging him. Increasingly, he begged off from having to immerse himself in the issues the case entailed and bearing the burden of having to, essentially, construct a defense of a permitting and licensing process in which the central criteria was an applicant’s willingness to bribe the mayor. In response, Best, Best & Krieger detailed another member of the firm, Christopher Moffitt, who had slightly more experience in the ethically slippery world or government decision-making, to spot him. It was while Shimell and Moffitt were working on constructing a plan to divert the court’s attention from Valdivia’s shady dealings late this winter and early this spring that the claims from the four former San Bernardino city employees underscoring Valdivia’s character traits began playing out in headlines across San Bernardino County. At that point, Shimell pulled the plug and left Best Best & Krieger for another firm, Buchalter Nemer.
Moffitt is now looking to shoulder the burden that Shimell has abandoned. Having had something of a respite during the COVID-19 crisis during which most litigation has been suspended, Moffitt and the rest of the Best Best & Krieger legal team representing San Bernardino are putting their bets on a strategy of forging a global settlement with all eight plaintiffs, whose cases are being being heard by San Bernardino County Superior Court Judge David Cohn. The plan, the Sentinel is given to understand, is that the city council will revisit the ordinance it previously passed and the standards that were set limiting the number of marijuana/cannabis-related establishments in the city to 17. As it now stands, in addition to Welty’s Captain Jacks’s marijuana emporium which has been legally in place since 2017, two of the 16 businesses given permits on February 21, 2019 are now fully licensed and operating, one is at the end stage of construction and two are yet being constructed, and seven are at various stages along in the plan check process. Thus four of the 16 applicants granted licenses have made little or no progress toward actuating their proposals, are seeking capital to proceed but have not so far succeeded, or are currently looking to sell their permit to another entity. A key step in arriving at a settlement of the eight lawsuits will be to give the four businesses that have not progressed toward licensing or an opening a firm deadline to do so, declaring them dead in the water as of that date and rescinding their permits. Thereupon the council will consider and adopt a staff recommendation that it rewrite the city’s existing ordinance pertaining to commercial cannabis operations that provides for a ratio of one marijuana/cannabis-oriented business per 12,500 residents, which translates into a maximum of 17 marijuana concerns, and instead put into its place one that will allow for one such business for every 10,000 population. At that point there will be room in the city for the three current operating businesses, the three nearly constructed businesses, the seven businesses now being subjected to plan check review and the eight businesses suing the city. One potential wrinkle in that approach would be the not-very-likely prospect that Judge Cohn would refuse to condone the settlement. A slightly-more-realistic sticking point is the chance that one or more of the plaintiffs, sensing it or they could get more because of the strength of the evidence it or they possess showing San Bernardino’s highest official is up to his shoulders in graft, might insist on taking the matter to trial.
Perhaps because any public documentation of Valdivia’s bribetaking would obliterate the chance of the city pursuing a settlement with the eight plaintiffs, Best Best & Krieger, serving in its capacity as the city’s legal authority that should be dedicated to keeping city officials on the up and up, has been put in the somewhat awkward position of avoiding the near occasion of coming into contact with any information or indication relating to Valdivia’s bribetaking.
Last week, after providing the Sentinel with the statement asserting that Best Best & Krieger and its attorneys were not representing any of the entities who have sought or are seeking permits for a marijuana/cannabis-related business operation in San Bernardino and the firm was not engaged in facilitating any conflicts of interest, Deputy City Attorney Sonia Carvalho said she would field any further questions relating to the controversy revolving around Mayor Valdivia and the reports of his bribetaking in a follow-up phone call after she tended to a pressing matter. Thereafter, however, Carvalho steadfastly refused to engage with the Sentinel and did not respond to 14 separate emails, text messages and phone calls in which those questions were posed or alluded to.
Munoz said he too had been spurned by Carvalho when he offered to provide her with evidence he possessed demonstrating that Valdivia was soliciting bribes. In his sworn declaration, Munoz said he attended the April 3, 2019 San Bernardino City Council meeting, at which a sizable representation of those applicants for marijuana/cannabis-related business licenses who had been turned down had weighed in with objections to the city’s February 21 action. According to Munoz’s affidavit, when Councilman Fred
Shorett asserted the licensing procedure was proper, he stood up and verbally disputed that, making reference to Valdivia having asked him for money. As he was walking out from the meeting, which was still in progress, Munoz said, he was followed into the hallway by Carvalho and acting Police Chief Eric McBride. “Carvalho told me I could not be making such statements unless I had proof,” Munoz’s declaration states. “I offered to show her the text messages [of his exchange with Valdivia], but she refused to see them.” Near the three hour and 52 minute and 4 second time stamp of the video of the April 3, 2019 council meeting, Munoz’s remarks can be heard. Shortly thereafter at the three hour 52 minute and 45 second mark, while Shorett was still speaking, he noted that Carvalho had left the room. The city clerk then explained that Carvalho had gone into the hallway to talk to “the guy in audience,” a reference to Munoz.
Munoz’s sworn declaration represents a thorny issue for the city; for Valdivia; for Councilman Juan Figueroa, who is now one of Valdivia’s only two remaining allies on the council, as Ibarra, Sanchez and Nickel have abandoned him at this point; for a long list of Valdivia supporters, among whom there are many who have invested heavily in his political career; for the police chief and assistant police chief whose ascendancies were and are tied to Valdivia’s; and for Best Best and Krieger.
The declaration relates a second incident of Valdivia soliciting a bribe from him than the first one related earlier in the affidavit. On March 4, 2019, according to the affidavit, the same day Munoz said Valdivia had arranged to meet him in a bar in Irvine and showed up under the influence of cocaine, “Valdivia then proceeded to tell me we were all a bunch of ‘whining bitches’ because we did not want to wait our turn for licenses. I told Valdivia that he ‘fucked up’ because I did everything Valdivia asked me to, but he never kept his promise. Instead, Valdivia gave licenses to people that were not even zoned for retail sales of marijuana. Valdivia then asked me for more money to get my license and at that point he brought in and introduced to me [soon-to-become] Council Member Juan Figueroa. Valdivia said everything will go through Figueroa, and that it was the only way I was going to get my license.”
Munoz’s declaration continues, “Valdivia then asked me for more money and funding in the presence of Juan Figueroa if I wanted to get my license. I got angry and told Valdivia and Figueroa I was not giving them any more money.”
That provoked Valdivia, according to Munoz’s declaration. “Valdivia told me I was ‘cut off’ and ‘done,’ and that he was not helping me with anything anymore. Valdivia got up and said, ‘Fuck you. I don’t need this shit.’ After that meeting with Valdivia and Figueroa, I was blacklisted from several of the other council members and could not contact them.”
Last week, at the June 3 San Bernardino City Council meeting which was conducted remotely on a video and audio hook up among the council members in a forum from which the public was excluded because of the coronavirus precautions that were being taken, Councilman Fred Shorett read a written statement from Treasure Ortiz. Ortiz referenced Munoz’s declaration without mentioning him by name, saying that the accusations in the affidavit delineated “a pay-to-play scheme” and that Valdivia and Figueroa were “requesting illegal payments.” She said that Valdivia’s consulting business in which he represented interests in the cannabis industry represented a conflict of interest. She said neither Valdivia nor Figueroa should participate in any discussions or decision-making with regard to cannabis-involved businesses in San Bernardino.
After Shorett concluded his reading of Ortiz’s comments, Valdivia said, “A lot of those allegations are untrue, but I respect Dr. Ortiz and her infinite wisdom and observations.”
Referencing the California Department of Cannabis Control Code of Regulations, the Sentinel attempted to explore with Carvalho whether Valdivia’s business interests in cannabis-based operations might necessitate his resignation or removal from office. One section of that code appears to outright prohibit an elected official in California from getting involved in the cannabis business or marijuana trade.
Under those regulations, § 5005 bears the subheading “Personnel Prohibited from Holding Licenses.” Thereafter § 5005 states, “(a) A license authorized by the Act and issued by the Bureau may not be held by, or issued to, any person holding office in, or employed by, any agency of the State of California or any of its political subdivisions when the duties of such person have to do with the enforcement of the Act or any other penal provisions of law of this State prohibiting or regulating the sale, use, possession, transportation, distribution, testing, manufacturing, or cultivation of cannabis goods.”
In questions posed to San Bernardino City Attorney Thomas Rice, Ms. Carvalho & Shimell, the Sentinel asked if Best Best & Krieger had indeed determined whether Mayor Valdivia is the proprietor of a cannabis consulting firm and whether § 5005 of the California Department of Cannabis Control’s regulations prohibits Valdivia from involving himself as a consultant to an individual seeking a commercial marijuana/cannabis license generally, whether or not that license being sought was issued by the City of San Bernardino.
Neither Rice, Carvalho nor Shimell responded to the question.
The Sentinel further asked if California Government Code § 1090 prohibits Valdivia from involving himself as a consultant to an individual seeking a commercial marijuana/cannabis license from the City of San Bernardino. That inquiry garnered no response.
No one with Best Best & Krieger was prepared to address the substantial gaps in the financial interest disclosure documents that Valdivia, like all elected officials in California, is required to file. Known as the California Form 700, the document is supposed to list the sources of income directly to a public official. In a clever use of sleight of hand, Valdivia lists his business, AAdvantage Comm LLC, for which he gives “consulting” as the general description of the business, without specifying whence AAdvantage Comm draws its income. On the document he indicates an annual income of between $10,001 and $100,000 into AAdvntage Comm LLC, but does not disclose from whom the money originated.
It is of note that in 2015, while Valdivia was yet a councilman and during the bidding process for the city’s trash franchise, corporate officials with one of the competitors, Athens Services, reported Valdivia solicited a $10,000 donation to his campaign fund. When Athens declined, Valdivia opposed awarding the contract to Athens. Valdivia’s former legislative field representative, Don Smith, has stated in a sworn affidavit that he was present in 2018 when Valdivia was handed an envelope full of cash by Danny Alcarez, who holds one of the franchises for tow service with the City of San Bernardino. Smith characterized the money provided to Valdivia as a bribe made in exchange for Valdivia maintaining the status quo with regard to the city’s towing franchises.
Questions emailed to Councilman Figueroa elicited no response.
In response to the Sentinel’s questions to him, Mayor Valdivia stated, “I have noticed that you target minority elected officials in the City of San Bernardino while conspicuously avoiding the Anglo elected officials in our city from similar attacks. To my mind, you are clearly demonstrating a racist approach that has no place in legitimate journalism.”
Accordingly, Valdivia said, “I will not dignify your racist attacks with any further response.”
Upland Council & Staff Continue To Muzzle Kinley On Pension Debt Warning
Upland municipal officials, including city management and the city council, this week prevented the city’s treasurer from alerting the city’s 76,000 residents of the looming pension debt crisis that is threatening to bankrupt City Hall.
More than seven months after effectively moving to muzzle Larry Kinley, who in 2016 was elected to the treasurer’s post by an overwhelming 62.46 percent of the vote, the city council this week for the eighth straight month prevented him from providing the city’s residents with a notation of the amount of money the city’s taxpayers are on the hook for to keep retirement stipends flowing to former city employees. Simultaneously, the council stopped Kinley from making a written public disclosure of the dramatic escalation in those payments that will occur in future years when the city’s current workforce retires, depleting the city of the money it will need to deliver services and maintain infrastructure.
Because cities such as Upland generally create their year-to-year budgets on the basis of current operations without making any preparation or allowance for how accumulating costs will burden the city in future years, the future debt is referred to as an “unfunded liability.”
For two closely related reasons, city employees and elected city officials would prefer that the city’s residents ignore this unfunded pension liability. Kinley believes city officials’ efforts to downplay that troubling financial indicator is grossly irresponsible.
Kinley worked for Bank of America for 42 years, the last 15 of which he was a manager in the problem loan administration department dealing with borrowers with financial difficulties. After his retirement, Kinley in 2013 by chance heard that Standard and Poor’s Financial Services intended to downgrade the City of Upland’s credit rating. As an Upland resident, and indulging the interest and expertise he had cultivated professionally, he began looking into the situation involving his city, coming across as well an auditor’s opinion from the certified public accounting firm Mayer Hoffman and McCann from 2012 stating that there were serious questions with regard to the city’s solvency to the point that in a short while “it will be unable to continue as a going concern.”
Delving further into the matter, Kinley discerned that the major factor forcing the city closer and closer to the fiscal abyss was its pension debt, which was then, and is yet, growing at an alarming pace. Based on his analysis, Kinley determined that the pension debt escalation grew out of the consideration that the city for decades had made what he says were unjustifiably generous commitments to pay city employees retirement benefits which are in the cases of the city’s lower paid employees, three times what are provided to employees in the private sector, and in the case of the city’s higher paid employees, five, six and even seven times what is a standard retirement stipend in the private sector.
At that point, Kinley set about trying to calculate what the city’s unfunded pension liability was at that time. Based on data he obtained from the California Public Employees Retirement System, with which the City of Upland is contracted to deliver pensions to its employees, what Kinley found was that as of June 30, 2012, which at that point was the last date for which figures were available, the City of Upland’s unfunded pension liability for its safety [i.e., police and fire department] employees, current and future, calculated on an actuarial value of assets basis was $33,370,136 and calculated on a market value of assets basis was $54,213,809. Kinley further learned that as of June 30, 2012 the city of Upland’s unfunded pension liability for its miscellaneous [i.e., those other than policemen and firefighters] employees, current and future, calculated on an actuarial value of assets was $21,234,203 and calculated on a market value of assets basis was $34,780,257.
In this way, Kinley derived a $88,994,066 figure, using market value actuarial terms.
In 2016, when the city’s then-current treasurer, Dan Morgan, opted out of running for reelection as treasurer to instead seek a seat on the city council, Kinley tossed his hat into the ring, as did Stephen Dunn, who had departed as Upland city manager that year and had served in the role of Upland’s finance director prior to that. Campaigning on a platform that made reference to the unfunded pension liability while noting that Dunn was a pensioner drawing a $104,000 annual pension who therefore might not be sensitive to the need for pension reform, Kinley handily won the 2016 election for treasurer, capturing 16,625 votes or 62.46 percent to Dunn’s 9,992 votes or 37.54 percent. Kinley’s performance in that election made him the top vote-getter among all of the city’s elected officials, including the council members and the mayor.
In addition to carrying out the standard duties of the city’s treasurer, Kinley was resolved as well to see that he continued in his elected capacity to bring the same degree of focus to the unfunded pension liability issue as he had as a candidate. He saw this as part of an effort to get Upland’s citizenry to take up and embrace the concept of pension reform, such that the burden of paying for the hefty pensions would be transferred from the taxpayers and future taxpayers to the city’s employees, who would be called upon to up drastically their contribution toward sustaining the pension fund as a part of contract negotiations.
Each year, Kinley would recalculate the degree to which Upland’s unfunded pension liability would increase. He also kept an eye on how much, as a percentage of the budget, payments into the retirement pool consumed money from the city’s general fund. As treasurer, he approached other officials at City Hall, informing them that he wanted to kickstart the pension reform movement in Upland by having the city carve out for him an opportunity to weigh in, albeit briefly, during city council meetings, through a forum from which he could give a brief overview of the city’s financial picture, perhaps from a seat provided for him on the council dais. Marty Thouvenell, Upland’s former police chief, at the time Kinley came into office was serving as the city’s interim city manager. Thouvenell was originally supposed to remain in that capacity for only a brief interlude while a full-fledged city manager was being recruited, but as it turned out, he remained in that post for 18 months, a duration in place that was actually longer than the tenures of the two city managers who served before him and the two who served after him. When Kinley engaged with Thouvenell, who was a pensioner himself, and told him of his plans to spark pension reform from the bully pulpit within the council chambers as a co-equal with the rest of the city’s elected leadership, Thouvenell immediately let it be known that no one was interested in hearing Kinley prattle on about how the sky was falling and City Hall would be buried under an avalanche of pension debt. There would be no forum for him as city treasurer, Thouvenell told him.
If Kinley wanted to sound his dire warnings about the unfunded pension liability at those forums, he would not be given a platform to do so as city treasurer, but had to present a speaker card to the city clerk and make his presentation from the podium provided to members of the public. On those occasions when Kinley summoned up the dignity to do so, if his message did not contain itself to the three minutes allotted to public speakers, Mayor Debbie Stone, who had received 588 fewer votes for mayor than Kinley had received for treasurer in the 2016 election and who had heard as much about the city’s unfunded pension liability as she could stand, would shut off the microphone.
Kinley battled on, undercut at virtually every turn. He was able to score one significant and meaningful breakthrough, though it was grudgingly conceded to him. Using his status as city treasurer and the authority of his elected position, he arranged to have not only a reference to the unfunded pension liability made in the city’s comprehensive annual financial report, but a projection of where that liability stood as of June 30, the end of each fiscal year, based upon actuarials composed of the pensions being provided to the city’s retirees, their ages and current average life expectancy.
Last year, taking stock of the implication of his calculation that at the end of Fiscal Year 2018-19 as of June 30, 2019 that Upland’s unfunded pension liability had reached $112,039,675, up from $99,976,917 at the end of Fiscal Year 2017-18, Kinley felt it his duty to redouble his efforts to get the issue front and center before the residents of Upland. At the rate it is metastasizing, the runaway unfunded pension liability train by 2030 will monopolize 60 percent of the city’s general fund, meaning the city will be paying 60 cents out of every dollar it spends to pay people who are no longer working for the city. Desperate for a forum from which to project his alarm, Kinley set his sights on the monthly treasurer’s report that traditionally was posted publicly as part of the first city council meeting of each month. Treasurer’s reports are a relatively common document among municipalities, one which lays out what the city has over its history up until the present salted away in terms of its surpluses garnered from revenue in excess of its expenditures in current and past budgetary cycles, and delineates how and where that money is invested. Typically a treasurer’s report is current to approximately 60 days prior to its issuance, and it shows the amount of money the city has in investment funds, shared investment funds with other municipalities, interest-bearing bank accounts and change funds, securities, money market funds, government agency securities, corporate bonds and U.S. Treasury notes. Municipalities generally present their treasurer’s reports to the treasurer before they are made public, so that the treasurer can inspect and sign it. Figuring that the treasurer’s report is a listing of the net assets the city has, and further figuring that any indebtedness against those assets would impact the total amount of available savings, Kinley believed that the city’s outstanding debt would be properly listed on the treasurer’s report.
Realizing, however, that he was isolated on the issue in the city, Kinley decided against going out on a limb and simply altering the treasurer’s report from what was presented to him using his own authority. Instead, he sought backing for what he was going to do by going further up the governmental evolutionary chain, getting from state financial affairs experts clearance for what he planned to do.
“I called the state treasurer’s office to ask if there is something I can do to ensure I am able to fulfill my duties as I see them,” Kinley previously told the Sentinel. “I was handed over to one of their lawyers. The first question I was asked was ‘Who do you report to?’ I said, “Per the city’s organizational chart, I report to the citizens of Upland. That is the only line going to anyone above me. The lines from me or to me go down to the rest of the city staff.’ The lawyer’s comment was, ‘Therefore, since there is no one in the city with higher authority on financial issues than you, you are independent and you can add the information you deem relevant to the treasurer’s report.’”
Kinley next consulted the California Government Code relating to a municipality’s financial reports. California Government Code § 53646 requires and authorizes municipalities to carry out financial reporting no less frequently than quarterly. There is nothing in California Government Code § 53646 which expressly forbids a city treasurer from making mention of the city’s unfunded financial liabilities in a statement of investment policy, which, California Government Code § 53646 states, “the board [i.e., the city council] shall review and approve at a public meeting.”
Indeed, in subparagraph 3, California Government Code § 53646 reads, “The quarterly report shall include a statement denoting the ability of the local agency to meet its pool’s expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.”
If questioned about what he was next going to do, Kinley was prepared to contend that the city’s unfunded pension liability has the potential for preventing the city from meeting future expenditure requirements.
Based on that, when the treasurer’s report was next given to him, Kinley took what he calculated would be the first incremental step. “What I wanted to do in the treasurer’s report was add a comment as the treasurer about the city’s pension liability, to see if I could get it in there,” Kinley told the Sentinel last year. “I wanted to provide both sides of the balance sheet, the net, if you will, which would include not just our assets but our liabilities.” He handwrote onto the treasurer’s report a note that showed his calculation of what the city’s unfunded liability was at that point. Then he signed the report.
City Manager Rosemary Hoerning and Finance Officer Londa Bock-Helms were having none of that, however. Hoerning went to the city’s finance committee, consisting of Councilwoman Janice Elliott and Councilman Rudy Zuniga, Bock-Helms and Kinley, who has essentially been disenfranchised from it. The committee made a directed determination that the language Kinley was seeking to include should not be contained within the report. He was proffered a clean version of the report for his signature and his signature only.
“I told them that if they were going to erase my input, I just wouldn’t sign the report,” Kinley said. “And I didn’t.”
Thereafter, Hoerning and Bock-Helms changed the title of the treasurer’s report to the treasury report. They now sign it in lieu of Kinley.
The degree to which Hoerning and Bock-Helms are invested in the California Public Employees Retirement System perhaps explicates why both are so adamantly opposed to Kinley’s efforts to draw attention to the unfunded pension liability sword of Damocles hanging over all of Upland’s citizens’ heads, which might touch off a reform movement contrary to their personal interest. The California Public Employees Retirement System formula for someone in the position Hoerning holds calls for her highest annual salary times her number of years times the multiplicand of 2.5 percent. Earlier this year, the city council conferred upon Hoerning a three-year contract starting at $230,000.04 in salary before benefits annually. Thus, were Hoerning to retire today, she would be entitled to receive a pension of $184,000.03 annually for the remainder of her life, based upon $230,000.04 X 32 (years) X .025. If Hoerning serves out the full three years on her contract, she will then qualify for an annual pension of $201,250.03, based upon $230,000.04 X 35 (years) X.025. The California Public Employees Retirement System formula for someone in the position Bock-Helms holds calls for her highest annual salary times her number of years times the multiplicand of 2.25 percent. A calculation with regard to Bock-Helms’s eventual pension is less precise, given the relative dearth of publicly available information pertaining to her job history and future unknowns. Nevertheless, what is known is that Bock-Helms in 2016 was employed with the City of Murrietta with the title of finance manager, for which she was provided an annual salary before benefits of $113,725. She left Murrietta in 2017 to take a lesser position in Upland, bearing the title of finance officer, which entailed a salary reduction to $105,000 per year. This year, while yet holding the title of finance officer, she is being provided with a salary before benefits of $118,632.85. Bock-Helms is on a trajectory to promote in the relatively near term to the position of finance manager, and eventually, if she remains in Upland, to finance director, a post that now, if filled, would pay in the $150,000 range and would be likely to top out at $160,000 to $175,000 by the time Bock-Helms will be eligible for retirement. Thus, if she retires with 35 years as a municipal employee, she will likely be, at the very least, eligible for a pension of $126,000 per year, based upon $160,000 X 35 years X .0225, annually for the remainder of her life.
The city’s employee unions are among the heaviest contributors to the mayor and council members’ campaign funds. Advocates pushing finance reform in the city have suggested that the council members, individually and collectively, fear that their participation in efforts to reform the city employees’ pension system will result in the employees and their unions withdrawing their political support from the incumbents and bankrolling their opponents.
The slight to Kinley and the fashion in which city officials are seeking to prevent any heed being given to the ticking time bomb of Upland’s unfunded pension liability made its way into the public consciousness this week, prompting Councilman Zuniga at the Monday night council meeting at which the council was set to accept the treasury report, to say, “I’d like to ask the city manager or Londa Bock-Holms if they can explain why the city treasurer’s signature is not on the document and does it need to be on the document [i.e., the treasury report], and why the PERS [California Public Employees Retirement System] liability doesn’t show up on this document. I know why, but I would like it to be explained to the community.”
“So, this is the treasury report, and we provide this report to the treasurer, so he does get a copy of it,” Hoerning said. “In the past he, as the treasurer, has signed the report. However the reason for the signatures on the report is to certify the six items that are listed on the front of the report where the signatures are contained. It doesn’t require that the treasurer sign the report. However, when the treasurer was signing the report, he would alter it, so our finance officer, Londa Helms, would sign the report as it stands, which is just reflective of all of our treasury investments, and then the treasurer would make alterations to the report and then sign it. So, it didn’t have her concurrence with any corrections. The correction that he was making to the report is regarding the city’s unfunded liability position, which is included in part of our CAFER [comprehensive annual financial report] document, and is indicative of information that is not necessarily germane to this particular report. That is the reason why he has elected not to sign the report.”
Zuniga asked if it “is legal for the city manager to sign this report instead of the city treasurer?”
“Well, it doesn’t require that the city treasurer sign the report,” said Hoerning “I sign it as a matter of a second, so I’m reviewing the report that Londa has signed, so it has two official signatures on it.”
Hoerning said the treasurer’s report is an outline of how the city’s monetary reserves are being invested.
“Mr. Kinley has been notified that he can come up with his own type of report and produce it,” Zuniga said. “He can go in front of the council and let the community know what’s going on and how much is owed in this unfunded liability, and he refused to do so, correct?”
“That’s correct,” said Hoerning. “He always has an opportunity to speak or write a separate report and submit it to the city.”
“So there’s other ways he can push that communication of what’s unfunded in our city, but it doesn’t belong on this report,” said Zuniga. “This is an investment report. That’s all this one is.”
Councilman Bill Velto asked, “So, Mr. Kinley is shown this report, correct?”
“That’s correct,” said Hoerning.
“And Mr. Kinley is not required to sign the report, correct?” Velto asked.
“He’s not,” said Hoerning. “He’s given the opportunity to sign it, if he would like. In past practice the treasurer has signed the report, but they’ve signed the report without making corrections to the report or altering it.”
Hoerning said she was “not aware of past treasurers making changes to the reports.”
Velto asked, “The changes he chooses to make, are they inconsistent with his role?”
The question stymied Hoerning, who made an atypical five second pause in the cadence of her speech before answering, “They are inconsistent with this particular report. This is the investment report.”
During the evening’s public comment session, Marjorie Mikels told the council, “We are a general law city and we have a duly elected treasurer. His name is Larry Kinley. The people voted in a man with 40 years of banking experience.”
Mikels said that Mayor Debbie Stone had deliberately disenfranchised him.
“You never talk to him, Mayor Stone,” she said.
The council is overstepping its authority by preventing Kinley from carrying out his function as he deems appropriate, Mikels said.
“The government code gives him certain responsibilities,” Mikels, an attorney, said. “You have interfered and obstructed him in the performance of his duties as our elected treasurer. The city manager and someone called the finance manager signed off on the treasurer’s report. It’s illegal. You don’t want Mr. Kinley to disclose the truth about the unfunded pension benefit at this time that could bankrupt this city.”
-Mark Gutglueck