Citizen’s Group demands Mayor & Council obey law

Oh my goodness, if you missed the April 23, 2013 City Council meeting you missed some fireworks!  The City has again broken laws.  This time in a way that resulted in the subject of “alcohol” service in the Rec Center being hidden from the public, as well as a “complete and unedited” audio recording NOT being posted on the city website as required by State Code.

April 30th, a NOTICE OF COMPLAINT was filed with the City, which read, “…We [Cedar Hills Citizens for Responsible Government, or CHCFRG] respectfully DEMAND that the audio record be corrected and posted immediately, and the alcohol vote/approval be suspended immediately until the City has gone through the proper legal process in public, on the record, in front of your employers — the citizens of Cedar Hills.”  Click here for PDF of…   NOTICE OF COMPLAINT – illegal Council meeting actions

At the April 23^rd City Council Meeting Conducted by Mayor Gary Gygi:

1. — The Council voted in favor of allowing ALCOHOL to be served at the family Recreation Center at private events, without putting “alcohol” on the agenda.   (see Agenda item #19 in PDF below)
2. — The Council voted in favor of Clubhouse improvements in basement and other purposes Financial Officer said totaled $410,000.  This goes directly against a new city ordinance they recently passed for no building over $400K additional without full-disclosure and citizen input as required by their own ordinance.  (see Agenda item #15 in PDF below)

 

CHFRG had warned citizens of a secret effort (conspiracy) to serve alcohol in the clubhouse, but only “after the last election”.  This conspiracy was discovered within 6000+ pages secret emails that City Council members were ORDERED by the Utah State Records Committee to provided to us and the City’s public record.  (The City’s efforts to hide and withhold these emails cost as much as $120,000 in legal fees.  If honesty in government is the goal, why not just provide the public documents upon request?)  Many of the people involved are no longer on the Council or on staff, but Mayor Gygi and most of the Council appears to intent on fulfilling the old alcohol agenda, and hiding that fact from the citizens.  Really?  Alcohol service in a so-called “Family Recreation Center”?

Secret Email #4 – Mayor: “Beer Tavern license”, -but “after the election”

– Oct• 26•12

http://www.cedarhillscitizens.org/secret-email-4-mayor-beer-tavern-license-but-after-the-election/

 

Council member Jenney Rees was the only voice of reason and transparency on the Council often chastising them for hypocrisy regarding “transparency” they often claim.  She pleasantly surprised some, by her strong championing of the voice of many residents who are in favor of true open, honest and transparent government, especially on controversial items like the city facilitating alcohol service and expenditures over $400,000 without full-disclosure, –asking them avoid these actions without more transparency.

If the citizens ever get to hear the “correct and unedited” audio recording of the Council meeting, they will many damning comments made by the mayor and 4 of the 5 Council members, there will be election repercussions.  Unfortunately, two days later, the City posted an audio recording as required by law, but much of which was inaudible, and strangely, Council woman Rees’ comments were the least audible.  This is strange because Councilwoman Rees spoke directly into the microphone and her comments were the most clearly heard through the PA system.  Why doesn’t the recording document the Council woman Rees’s voice?

An official Complaint was filed April 30^th with the City, after Mayor Gygi refused to provide a substantive explanation.  On May 4, the City Recorder Ms. Colleen Mulvey again provided a less than thorough – if not evasive – explanation of the events.  As the employers, we expect the Mayor to insure a clear, thorough and transparent written explanation be provided, with his name also attached.

The City’s response to our NOTICE OF COMPLAINT was evasive and did not clearly explain why a “complete and unedited” audio recording was not posted as required by law, nor did it unequivocally explain if the original was destroyed “accidentally” or otherwise.  Awfully convenient.

At the same Council meeting, other politically damning items that are conveniently less than “complete and unedited” on the audio posting including:

1.) the Council created a new fee of $35 for running for office because “other cities do so”,

2.) the Council discussed changing name from N. Clubhouse Drive to N. Recreation Drive or some other name, and

3.)  the Council awarded a 4% merit pay increase for city employees.

 

Please note that recently the City also IMPLIMENTED A PROPERTY TAX INCREASE.  Are you surprised?

Post:  PDF of mis-leading Council Agenda  city-council-agenda 2013-04-23

 

Cedar Hills » City has already spent nearly $10 million but continues to accrue debt.

By Cimaron Neugebauer   | The Salt Lake Tribune

First Published Mar 17 2013 01:01 am • Last Updated Mar 17 2013 04:46 pm

 

Cedar Hills » Rolling green hills, sand traps and pristine views once meant dollar signs for municipalities.

But now, with scores of golf courses crowding the state, some critics are saying the once-lucrative notion of a municipal course has become a financial sand trap even Mike Weir with his best pitching wedge couldn’t escape.

With millions of taxpayer dollars being bagged faster than grass in an industrial mower, many question whether cities today can afford to create and run their own golf courses.

—

Money pit » In 2001, Cedar Hills, a city of 10,000, narrowly voted for a taxpayer-owned golf course. Since then, the golf course has not made a profit. Financial data show it has lost nearly a half-million dollars each year since 2004 or about $4.3 million in operational costs and general bond obligation. In trying to make the project successful, city leaders have spent nearly $10 million.

For complete article see…

http://www.sltrib.com/sltrib/news/56006019-78/golf-course-courses-hills.html.csp?page=1

 

 

Public records » State panel rejects group’s effort to view city’s un-redacted invoices.

By Cimaron Neugebauer  | Last Updated Feb 17 2013 12:10 am

“Cedar Hills’ attorney says a community watchdog group is mainly responsible for $160,000 in attorney fees the city paid over the past 1½ years.

“To check that claim, the group — Cedar Hills Citizens for Responsible Government (CHCRG) — sought copies of the city’s legal billing invoices.”…

For complete story see…   http://www.sltrib.com/sltrib/news/55833406-78/div-records-committee-neugebauer.html.csp?page=1

We, at CHCRG, believe the City’s self-congratulations on a “victory” on the city’s website should be embarrassing for them.  We don’t believe these city officials understand what their redaction “win” really means in the eyes of the community.

What true public servant Official would want to claim a “win” when they were holding back information on legal billing records from the public, AND, costing CH taxpayers $160,000 in legal bills in the process?  If that’s a “win”, then who is the winner?  Certainly not CH taxpayers, or our objective of “open, honest and transparent” government!

The fact of the matter is that every time CHFRG has taken the City before the Utah State Records Committee, it was because the City refused to provide the public records as GRAMA legally requested.  All three requests for a Hearing of the Records Committee have resulted in the City providing MORE information they had not provided when they supposedly “complied” with the GRAMA request.

1.   June 15, 2012, the Utah State Records Committee ORDERED the City to gather and provide CHCRG all responsive city business emails between the Mayor, Council & City Manager hidden on personal email accounts not provided to City Recorder and maintained as required by Utah State law.  Our Appeal was “GRANTED”.  See  http://archives.utah.gov/src/srcappeal-2012-11.html

Score: WIN for citizens!

2.   Sept. 13, 2012, the night before this Hearing the City dropped off the final box of 6000+ emails to CHCRG.  While we didn’t get our $766 back, our requested Hearing succeeded in “inspiring” the City to finally perform on the June 15th ORDER – which was our primary objective.  We succeeded.  Two newspapers blasted the City for not providing the information in the public interest, for free.  (See http://www.cedarhillscitizens.org/sl-tribune-daily-herald-come-to-our-defense/ )    Nevertheless…

Score: WIN for citizens!

3.   Feb 14, 2013, two business days after filing our Appeal for a  Hearing, the City was suddenly “motivated” to change their GRAMA response and add most the info as requested.  Unfortunately, the city was not required to provide the “subject” of the billings because the Committee believed their claim of “ongoing lawsuits” – though we are aware of none, by anyone.  (This makes the costs and their purposes difficult, if not impossible, to understand.)

Score: PARTIAL WIN for citizens of 64 pages of redacted (edited) billings.  HUGE LOSS for taxpayers at $160,000 for unclear legal services.

 

Final Score:

. . . CHCRG 6064+ pages of public records exposed

to

. . .Mayor, Council, Staff & Attorney $160,000 wasted taxpayer dollars

 

The only thing this current City Council & Staff & attorney has proven is that they are not in favor of providing more public records, thoroughly and quickly, to the public they supposedly serve.  They have also demonstrated a clear pattern to “game the system” by using expensive attorney fees (taxpayer dollars) to fight to withhold information, delay, obfuscate, allow public records to be destroyed, and not maintain CH public records current and complete form, as required by law.  CHCRG does not believe this to be “open, honest & transparent government”.

The City attorney misled the Records Committee with many false claims before the Committee, which may be addressed here at www.CHC.org at a later time.

 

In the meanwhile, what Cedar Hills residents need to understand is that IF our Mayors, Councils and CH Staff had simply and consistently obeyed the law, and provided the records when GRAMA requested, there would have been no need to waste anywhere near $160,000 in taxpayer money.  City officials should NOT blame the citizens wanting to know and obtain the truth, –but rather, they should blame themselves for attempting to hide, withhold and destroy embarrassing truths about their actions documented in the public record, and spending taxpayer money to do it.

This brand of “honesty” & “transparency” is expensive!  Is it time to CHANGE the direction of CH leadership?

Anyone desiring for copies of ALL 6000+ pages of illegal secreted emails & 64 pages of redacted legal billings, please send that email request to Info@CedarHillsCitizens.org

 

Details to follow…

 

On the front page of the January Newsletter the City highlighted a list of “Noteworthy Milestones from 2012”.

These “milestones” included an Easter egg hunt, the FIRST LEGO league, a fifth voting district, “Princess Day”, fireworks restriction due to dryness, and Santa’s Workshop, etc. http://www.cedarhills.org/node/1887

Yes, 2012 was filed with many “Noteworthy Milestones” but the most significant milestones were not included in the city’s Newsletter. This included numerous “resignations” under questionable circumstances with “severance” packages, and a Mayor charged by Federal authorities for bank fraud, his guilty plea and resignation so he could serve time in jail.

2012 was important because your friends and neighbor members of Cedar Hills Citizens for Responsible Government dug deep into the public record to find out why our taxes are the highest in N. Utah County, while city officials continue to waste millions of our taxpayer dollars. Some 2012 “milestones” that did not make the city Newsletter’s list include:

 

1.)   CH Citizens group filed accusations in Fourth District Court against Mayor Eric Richardson & City Manger Konrad Hildebrandt, requesting an investigation.

January 23, 2012 – Paul Sorensen & Ken Severn, representing Cedar Hills Citizens for Responsible Government (CHCRG), filed a list of high crimes and misdemeanor accusations and a supplementary list of other “possible infractions”, an investigation of which was required by law. http://www.cedarhillscitizens.org/fourth-district-court-filing-of-accusations/

 

2.)   District Court Judge James Taylor ORDERED County Attorney to conduct an “investigation” of Mayor Eric Richardson & City Manger Konrad Hildebrandt.

February 7, 2012 – Cedar Hills Citizens for Responsible Government (CHCRG) filing of accusations to be investigated included “misappropriation of funds, malfeasance, malconduct, withholding public information, misfeasance and oppression”. http://www.cedarhillscitizens.org/daily-herald/ Mayor Eric Richardson & City Manger Konrad Hildebrandt claimed innocence. http://www.cedarhillscitizens.org/fourth-district-court-filing-of-accusations/

 

3.)   Utah County Attorney Jeff Buhman refuses to investigate.

February 14, 2012 – Buhman wrote to CHCRG that he doesn’t have authority, hasn’t and won’t investigate. He took this strange position despite Judge Taylor’s signed ORDER to investigate, and Utah Code 77-6-4, which states, “the court shall furnish a copy of the accusation to the county attorney … who shall investigate and may prosecute the accusation.”

 

4.)   Buffalo Chip for City conducting “Stake Conference”

February 25, 2012 – Daily Herald: “Buffalo Chip to Cedar Hills Mayor Eric Richardson and city manager Konrad Hildebrandt for conducting stake conference instead of a news conference following the announcement by Utah County Attorney Jeff Buhman that he would not investigate complaints against the two. …The conference was so soaked with religious overtones and admonitions that it could backfire politically. They forgot to bless the food.” http://www.heraldextra.com/news/opinion/beehives/beehives-and-buffalo-chips/article_878aa1dd-42c4-58d8-8610-a215a6c70103.html

 

5.)   City’s attorney caught in conflict of interest.

March 2012 – CHCRG made a GRAMA request of a Utah County Attorney internal letter which documented an undeclared conflict of interest by Peter Stirba of Stirba & Associates who simultaneously represented our Mayor & City Manger while working for Utah County Attorney Jeff Buhman, being paid by both. This is unethical.

 

6.) Councilmen Gygi & Jackman propose tax increase.

March 14, 2012 – Then Councilman Gary Gygi & Scott Jackman requested a meeting of Cedar Hills Citizens for Responsible Government members to seek support for their proposed $5 month tax increase! CHCRG did not support for their proposed tax increase, but instead offered ideas on how the city could cut costs and use of Harts gas station sales taxes to pay down the debt. http://www.cedarhillscitizens.org/secret-email-5-%E2%80%93-councilmen-gary-gygi-scott-jackman-proposed-5month-tax-increase/

 

7.)   Citizens demand resignations.

April 24, 2012 – An Open Letter to City Council and Cedar Hills Community was read into the record at city council meeting with list of reasons why a “Respectful demand for the immediate resignation of the City Manager & Mayor of Cedar Hills” was being made. April 24 Open Letter to Cedar Hills demanding resignation of Mayor & City Manager.2a

 

8.)   Three top city officials “resign”.

May 1, 2012 – City Manager Konrad Hildebrandt, Building Inspector Brad Kearl, and 20+-year veteran City Recorder Kim Holindrake – but are rewarded with “severance” payment packages. The City Manager’s package may ultimately exceed $116,000. (Which in his case is 9-months worth of his generous $155K in pay and benefits.) Why was he rewarded for resigning when firing may have been in order? http://www.cedarhillscitizens.org/mayor-withholds-his-emails-from-city-records-and-3-employee-resignation-contracts-now-public/

 

9.)   City Recorder was “forced” out.

May 3, 2012, the Deseret News published that Mrs. Holindrake’s press release claiming she was “forced” out “for political reasons”. http://www.deseretnews.com/article/865555194/Cedar-Hills-city-recorder-says-she-was-forced-out.html

 

10.)   Federal complaint filed against Mayor Richardson $2 million scheme.

May 3, 2012 – Whether by “coincidence” or karma, the very next day after Mayor Richardson orchestrated the three resignations, a Desnews article reports that he was “named in a federal complaint filed Wednesday that accuses him and a partner of soliciting more than $2 million in investments through an unregistered equity firm.”   http://www.deseretnews.com/article/865555194/Cedar-Hills-city-recorder-says-she-was-forced-out.html

 

11.)   Councilman Gygi defends Mayor Richardson.

The City released a press statement saying it will, “…Operate under the assumption that Mayor Richardson is innocent until proven guilty…”. In the KSL video clip below, Councilman Gary Gygi said, “My opinion of him is that [Mayor Richardson] has always been a good and honorable man, — extremely high integrity.” “You’ll understand if I’m going to give him the benefit of the doubt until I understand what is going on.” See the KSL-5 video report at…   http://www.ksl.com/?nid=148&sid=20242041&title=cedar-hills-mayor-accused-of-2m-investment-scheme-county-officials-resign&s_cid=featured-1

 

12.)   Daily Herald says: “CH MAYOR SHOULD RESIGN”

May 6, 2012 – Daily Herald wrote: “A person is innocent until proved guilty, but that doesn’t mean Mayor Eric Richardson of Cedar Hills should not resign immediately. His case is not one of innocence or guilt but of liability for civil damages arising from what federal authorities likened to a Ponzi scheme in futures trading that bilked investors of at least $1.3 million.” http://www.cedarhillscitizens.org/daily-herald-ch-mayor-should-resign/

 

13.)   Council considers a full Forensic audit of city finances.

May 16, 2012 – A statement issued by City Councilwoman Jenney Rees, on behalf of the City Council, stated that the timing of the resignations was coincidental and in no way related to the complaint filed against the mayor.  http://www.heraldextra.com/news/local/north/cedar-hills/cedar-hills-meeting-gets-loud-as-residents-fight-about-audit/article_3a1f2862-5234-5f3a-b015-4dfc2de00c18.html

 

14.)   Councilman Gygi campaigns against a full Forensic audit of city finances.

May 7, 2012 – Despite recommendations by the city attorney for the Council to authorize a comprehensive forensic audit Councilman Gygi asks Cedar Hills Citizens for Responsible Government to support his desire to persuade the Council the audit. The Councilman Gary Gygi approached CHCRG member & researcher Ken Cromar asking to support him in avoiding an unbiased, full “external forensic audit” of Mayor Eric Richardson and all City finances.  Support to avoid forensic audit was not given.   Councilman Gary Gygi emails solicit support against forensic audit.1

 

15.)   “Bufallo Chip to Mayor Richardson who “Won’t resign”.

May 19, 2012 – The Daily Herald Editorial board awarded the Buffalo Chip for “hunkering down and hiding out after being sued by the feds for his alleged participation in a Ponzi scheme. Richardson evidently wants to weather the storm. But it’s going to be a long storm, and the city won’t benefit from going through it with him. … Richardson should be big enough not to burden them with a circus.” http://www.heraldextra.com/news/opinion/beehives/beehives-and-buffalo-chips/article_239e9d1f-5d34-548e-bdeb-960c4d501498.html

 

16.)   Mayor resigns as Federal Prosecutor charge Richardson for bank fraud.

June 28, 2012 – If found guilty could face 30 years and $1 million in restitution penalties. http://www.cedarhillscitizens.org/mayor-charged-with-bank-fraud/ & http://www.cedarhillscitizens.org/cedar-hills-mayor-resigns-amid-criticism-over-finances/

 

17.)   Councilman Gygi defends Richardson as “good and honorable man”.

The Daily Herald reported, “‘They should take him at his word,’ Gygi said. ‘I’m not going to read too much into it. I am saddened by it. It think he was a good mayor and a good and honorable man.’…” “ http://www.heraldextra.com/news/local/north/cedar-hills/former-cedar-hills-mayor-charged-with-one-count-of-bank/article_19dd0973-ca56-5314-ad24-142243af181f.html

 

18.)   Utah State Records Committee ORDERS City to gather and provide missing email records.

June 15 – The City did not have email records (public records) as required by law, and were ORDERED to provide them to Cedar Hills Citizens for Responsible Government. http://www.cedarhillscitizens.org/city-finally-provides-grama-requested-emails/ For DesNews article see … http://www.cedarhillscitizens.org/after-complaints-cedar-hills-agrees-to-provide-documents/ & Daily Herald article at … http://www.cedarhillscitizens.org/cedar-hills-ordered-to-release-emails/

 

19.)   Buffallo Chip to City officials for refusing to reimburse $766

September 22, 2012 – Daily Herald awards Buffalo Chip to Cedar Hills officials for “…Refusing to reimburse Ken Cromar [Cedar Hills Citizens for Responsible Government] $766 of expenses he incurred as he dragged documents out of city government that had been illegally withheld. …Government entities should have to shoulder the costs that are unfairly and deliberately shifted to the shoulders of private citizens in an effort to keep damning data secret.”   http://www.heraldextra.com/news/opinion/beehives/beehives-and-buffalo-chips/article_d2f1defe-08fd-11e2-9846-001a4bcf887a.html?vm=r&s=1

 

20.)   Salt Lake Tribune & Daily Herald defend CHCRG!

September 30, 2012 – I SLTribune wrote: “…Ken Cromar represents Cedar Hills Citizens for Responsible Government. Cromar could be straight out of central casting, as he has taken on the role of the crusading everyman. He and his group believe there is something rotten at City Hall. There’s good reason to suspect something’s fishy…”. http://www.cedarhillscitizens.org/sl-tribune-daily-herald-come-to-our-defense/

21.)   Cedar Hills Golf Finance Committee admits golf course not profitable.

Nov. 15, 2012 – The Committee discovered that the golf course costs residents $550,000+ average per year in taxpayer subsidies and has never made a profit. “CH admits golf course bleeds money – $4.3M since 2004.”   http://www.cedarhillscitizens.org/ch-admits-golf-course-bleeds-money-4-3m-since-2004/.

 

22.)   Buffalo Chip with Oak Leaf Cluster awarded to former Mayor Eric Richardson

Nov. 17, 2012 – DAILY HERALD:  The editorial board explained that, “…former Cedar Hills mayor Eric Richardson who was sentenced this week to 366 days in federal prison and ordered to pay $110,000 in restitution. …But, of course he was always honest during his time as a Cedar Hills official and never, never, never, ever attempted to mislead anybody about the financial disaster that is the municipal golf course.”   http://www.cedarhillscitizens.org/buffalo-chip-mayor-never-never-never-ever-misled-anybody/

 

So, there is quite a contrast to the City’s published happy-face “Noteworthy Milestones” of Easter egg hunts and such, when compared to the actual noteworthy milestones that plagued Cedar Hills in 2012.

Is Cedar Hills government “open, honest and transparent” as they claim?  You decide. The evidence against that claim is mountainous!  Nevertheless, it appears to be much that may never be uncovered.

It is our hope that citizens will care enough about our community to share this information, and get involved by attending Council meetings, and promoting and voting for worthwhile, intelligent candidates at the next election who will serve the interests of the entire community.

To the 2013 rebirth of Cedar Hills!

 

The City of Cedar Hills has spent a small fortune in questionable legal fees over the past 17 months totaling $160,000 in taxpayer money.  The normal annual allocation has been $24,000.

An October 29^th, Cedar Hills Citizens for Responsible Government filed a GRAMA request for an accounting of legal services and asked for “all billings since June 1, 2011 to date, for legal services…the service and cost per hour, details please.”

On November 13^th, the City provided 50+ pages, but redacted most all the information leaving mostly blank pages, claiming “attorney client privilege”, and charged $58.

We have since appealed directly to the Utah State Records Committee for another Hearing that would if successful would require the City to provide ALL the information requested.  We are likely to succeed because the Records Committee has three previous cases, almost identical to our request, that resulted in an ORDER requiring the government entity to provide the public records as requested.  For example:

Utah State Records Decision 00-05

“10. …The Committee finds that the County’s classification of the following data elements in Mr. Dunbeck’s billing statements as protected was improper: (1) the name of the case, (2) the date of the invoice, (3) the date range for which the services were rendered, (4) the general description of services rendered (e.g. legal research, telephone call, etc.), excluding the precise object or subject matter of those general services, (5) the summary of hours of legal services rendered during the period covered by the invoice, and (6) the total amount billed during that period. ” (emphasis added)

Ironically, the reason for GRAMA requesting the billings was to learn if the city had properly or improperly used taxpayer dollars in legal fees, and the City appears intent to waste more money in legal fees to try to avoid providing the public copies of the public record.  This was the case with the Secret Emails that the Records Committee ORDERED be gathered and provided to Cedar Hills Citizens for Responsible Government, and it will likely be the same if the City has to explain itself before the Records Committee again.  Obeying the law would cost the City zero, and would be more reflective of “open, honest and transparent” government.

The City did not provide all the requested information we do now have the amounts which total over $160,000 in legal services, most of which could have been avoided had the city simply obeyed the law in the first place.  Additionally, the advise was expensive, not just in the cost per hour (still unknown), but that much of the advise was ineffective in helping cthe City Council avoid mistakes of building a golf clubhouse / wedding reception center, rather than a Rec and Pool facility.  This error cost $2.9 million in misspent funds, including the $190,000 settlement of the lawsuit by the Utah Valley Homebuilders Association for “illegal” use of the impact fees.  Expensive legal fees?  Doubly expensive.

Please note that Peter Stirba of Stirba & Associates was hired by the City to defend then Mayor Eric Richardson & City Manager Konrad Hildebrandt against an Judge James Taylor of the Fourth District Court who ORDERED an investigation last January 2012, by the Utah County Attorney as per State Code.  The County Attorney Jeffrey Buhman refused to investigate.  Many have wondered why, especially considering the 6 resignations of city officials, and the Mayor’s federal bank fraud charges and penalties, resignation, etc.

We later learned that Peter Stirba simultaneously was working for the Utah County Attorney Buhman, who he advised regarding this case in a letter.  This was an undeclared conflict of interest known by both Stirba and Buhman.  Complaints were filed with the County Commissioners and the Utah Bar Association, but we are unaware of any corrective action against Stirba or Buhman.  (see attached PDF of GRAMA requested Stirba “smoking gun” letter…  Stirba letter to County Attorney – pg1of2 &  Stirba letter to County Attorney – pg2of2 )

 

STIRBA & ASSOCIATES (Peter Stirba)

TOTAL                                                                       $40,246

ETJ LAW INC (Eric Johnson of Blaisdell & Church P.C.)

TOTAL                                                                     $120,475

 

For complete copy of the redacted (incomplete) partial billing records provided by the City BEFORE a Hearing was requested on December 7th, and granted before the Utah State Records Committee.  Please how virtually no “description” of the expensive services was provided.   … Legal Services Billings GRAMA Request.13Nov2012

Within two business days after the Hearing request was requested, the City was suddenly “inspired” or motivated to provide much more information AFTER.  Why the sudden change of heart, if you are “always” impartially, honestly, openly and transparently providing GRAMA requested public information?  Please compare the BEFORE (above) and AFTER (below) documents.  Then you decide if Cedar Hills officials have been forthcoming from the start.

11Dec2012.ETJ LAW INC Blaisdell & Church Invoices.pdf

11Dec2012.Stirba Invoices

On November 15, the City of Cedar Hills announced agreement to pay a $190K to settle a lawsuit filed by the Utah Valley Homebuilders Association against CH for “illegal” use of the $2.9 million impact fees collected for the building of a Recreation and Swimming (aquatic) facility.  The funds were instead used to build a golf clubhouse, golf pro shop, and wedding reception center the City sometimes calls a “Rec Center”.

Rather than taking responsibility for questionable decisions, the Council seems to be blaming and deflecting their error on concerned citizens who have been trying alert their neighbors.  For example, the City wrote on the website:

“A few residents like to claim that had a swimming pool or other type of recreational facility been built instead of the existing recreation center then the City would not have been sued. This is simply not true.”  (see CH City Statement of Nov. 26, 2012 at http://www.cedarhills.org/node/1790 )

Really?  The City’s statement is an interesting play on words, because had the City simply fully obeyed the law and built the rec & swimming pool facilities for which the money was collected, within the legal time frame according to Impact Fee Law, then the Utah Valley Homebuilders Association would have had no grounds for a lawsuit.  Instead of taking responsibility for the error, the City instead says it “does not admit to any wrongdoing”, but pays them $190K of our money anyway?

Cedar Hills Citizens for Responsible Government obtained a copy of the lawsuit filed from the Court, which details the grounds for their complaint of “illegalities” against the City. (see PDF below)  Within the seven “Causes of Action”, the following points complaints were provided:
“32.  The amount collected by the City that was not expended within six year of collection is not certain but it was reported by the City to exceed $1,500,000 in the documents the City is required to file with the Utah State Auditor…”.

“34.  Some of the fees collected by the City were not expended or encumbered within six years of their receipt and cannot therefore be…because the City did not make the required written identifications required…to avoid that deadline…”.

“41.  According to Utah Code…, a [city] may expend impact fees only for a system improvement identified in the impact fee facilities  plan and for the specific public facility type for which the fee was collected….

“42.  The Recreational Facilities Impact Fee (“RF Fee”) was established by the City to collect money to build a recreation and aquatic center in the City according to…the 2000 enactment documents… upon which the current RF Fees are based…

“43.  The use of RF Fees to build a golf club house is not for a system improvement identified in the impact fee facilities plan and is not the specific public facility type for which the fee was collected…”.

“55.  Plaintiffs have been damaged as a result of the illegal imposition of impact fees, including without limitation that Plaintiffs have been required by the City to pay the illegal impact fees as an exaction imposed in order to obtain development approvals and/or building permits. …”

See attached PDF of…  Lawsuit – UT Valley HomeBuilders Assoc v CH

Therefore, contrary to the City’s claims and inferences, according to the lawsuit it appears that the Homebuilders Association wouldn’t have had reason for complaint and a $190K settlement had the City simply obeyed the law and used the impact fees in a timely fashion for the purposes it was collected.

Additionally, on December 18, the Council voted unanimously to pursue a bid process on estimated $200-300,000 new expenditure (apparently money taken from the $500K dollars collected to build a proposed city hall type building “civic center”), to make the basement of the Clubhouse, more like a “rec center”.   The bid could be much more than the Council’s estimate, and still will require another vote before proceeding.  Contact your Council to share your opinion.

According to the audio recording of the Council meeting, prior to the vote Council member Jenny Rees appropriately pointed out, “I guess my concern is that, and I’ve talked with a couple of you as well, when we go back to the original building [golf clubhouse] that was approved for $2.1 million, somehow we spent $2.9 million.  I don’t want to get into a situation where we’re spending way more than what we thought it was going to cost.  I don’t know how we got into that situation to begin with, but I don’t want it to happen again.”

Unfortunately, the Cedar Hills Council has consistently over-promised and under-delivered, with taxpayers carrying burden of the difference.  Never under budget, always over.  For example, the golf course was promised to make $150K per year in profit, but instead has required taxpayers subsides of -$550,000 a year – making annual $700,000 difference in the wrong direction.  Similarly the Public Works building was budgeted for $800,000 and ultimately cost $2,300,000, — a negative $1.5 million difference.

Cedar Hills Citizens for Responsible Government has been concerned that the Golf Financial Committee’s report, while acknowledging that our claims of $550k annual financial loss every year was correct, they did not present the information on the front page of the City Newsletter nor they include every year’s losses, they did not consider any golf course exit strategy, they claimed to have better ideas on how to profitability than past Councils but offered no financial projections or goals, nor would they offer an estimate of what future year the golf course might actually break-even in a single year.  Good stewards of our tax dollars?

So, the Utah Valley Homebuilders Association was compensated with $190K, but the citizens are left with an over-priced “Rec Center” that serves mostly golfers but pretends to be a rec center.  These losses don’t include the City’s attorney fees which cost citizens $160,000 over the last 17 months.  (see separate posting)

If the City had simply obeyed the law they could have saved the taxpayers hundreds of thousands of dollars.  There is no end to the “good” that government can do when using other people’s money.

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On March 14, 2012, Councilman Gary Gygi and Scott Jackman, requested a meeting with Ken Cromar, Jerry Dearinger, Paul Sorensen and Russ Fotheringham, to discuss their proposed $5 per month tax increase and seek their support for it.  The meeting was at Jerry Dearinger’s home, and audio was recorded with the knowledge of all.

The following day, Ken Cromar documented the key points of the meeting via email to all attendees, and read as follows:

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From: Ken Cromar

Subject: Thank you for inviting us to hear your bond payoff proposal

Date: March 15, 2012 10:25 AM MDT

To: ggygi@cedarhills.org, Scott Jackman <sjackman@cedarhills.org>

Cc: Jerry Dearinger, Russ Fotheringham, Paul Sorensen

Gary & Scott,

May I compliment you for your request to meet at Jerry Dearinger’s home yesterday afternoon to discuss your proposal.

Speaking for myself, the following are the key points I believe were discussed:

1.)  You would like to pay off the Pressurized Irrigation bond within 7 years, if possible, with a proposed $5 per month tax / fee (increase paid by citizens to City).

2.)  We (Jerry, Paul, Russ and I) thought an effort to payoff any of our bonds to be a good idea, but that raising taxes / fees to do so is not recommended.

3.)  We offered alternative approaches that included:

– Use the Civic Center funds for payoff,

– Use taxpayer monies currently routed to the golf course instead for payoff,

– Use any new revenue streams from new businesses (Hart’s gas station, etc.) for payoff.

4.) Generally speaking, our position is that CH taxes / fees are too high, and that the continued growth trend should be stopped, and preferably reversed.

I believe that covers the main points discussed, though you and the others may want offer your review of the meeting.

Additionally, I personally was gratified to learn that you agree that fees, or any other increase in amounts required of CH residents is akin to a tax increase and undesirable.  I was also pleased to learn that at least Scott was surprised to learn from Konrad Hildebrandt’s explanation November 22, 2011 of the $1.7 million diversion of funds, speaking of which we look forward to learn of the answer to your question from that day.

While you did not need to share with us your thinking regarding the proposed P.I. pay off, as you are the City Council members with those powers, it was thoughtful of you to do so.  Thank you.  We are counting on you and the Council to help the city get its financial house in order, offer a more open and transparent government, and reduce the size and financial burden of government for Cedar Hills families.

To That Success, Most Sincerely,

Ken Cromar

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Later that same morning, Mar 15, 2012, at 10:25 AM, Paul Sorensen added:   

Gary and Scott,

I realize that I am piggy-backing on Ken’s letter, but I wanted to add a couple of comments.

There was one thing that I stated that was not stated in Ken’s letter:  I proposed that since the Civic Center’s funds appear to have been fully funded, that tax/revenue stream could/should be diverted to cover the circa $120K per year needed to payoff the PI bond within 7 years.

Lastly, a point that I should have made but I would suspect that you already know: refinancing makes sense when the present value of the interest savings exceed the cost of refinancing (in this case, bond penalties and costs to refinance).

Thanks for your time, consideration, and desire to get our feedback.

Regards,

Paul Sorensen

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These two emails documented a meeting that occurred at the request of Councilmen Gygi and Jackman, but received no known response refuting or correcting the meeting points.

Fortunately, the tax increase was tabled a few weeks later when it was discovered it would not be cost effective to change the PI loan arrangement.  But, it is important to point out the fact that a tax increase was Councilman’s Gygi & Jackman’s first proposal on how to reduce financial debt, rather than using existing Civic Center funds (a proposed new city hall type building), future Hart’s gas station revenue, or reducing number of city employees.  Note:  The approx. $500K of existing funds, is instead being considered for use to buy exercise equipment for the golf clubhouse basement.

On March 17, 2012, Councilman Scott Jackman & then Mayor Eric Richardson exchanged secret emails on personal email accounts and illegally not provided to the public record as required by law, but obtained by Cedar Hills Citizens for Responsible Government by ORDER of Utah State Records Committee.  Please note Jackman’s telling comment, “Why are we having a review/action on fees?  This look (sic) very bad in light of the discussion with Ken Cromar et. al.”  Appearances appeared to be important to them.

(see PDF… Secret Email – regarding tax increase proposed by Councilmen Gygi & Jackman )

 

“Buffalo Chip (with oak leaf cluster) to former Cedar Hills mayor Eric Richardson who was sentenced this week to 366 days in federal prison and ordered to pay $110,000 in restitution. Charging documents said he operated a “scheme and artifice to defraud HeritageWest Credit Union.” As part of a plea bargain, Richardson admitted to the scam and confessed to an array of illegal activities including making false statements, allowing others to falsely inflate his income and failing to disclose a mortgage. But of course he was always honest during his time as a Cedar Hills official and never, never, never, ever attempted to mislead anybody about the financial disaster that is the municipal golf course.”

Daily Herald, November 17, 2012 –

http://www.heraldextra.com/news/opinion/beehives/beehives-and-buffalo-chips-for-nov/article_7dd62802-eede-53a5-91ed-ef14f4ec55c2.html

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Venture has lost about $4.3M since 2004.

By Cimaron Neugebauer  | The Salt Lake Tribune

First Published Nov 20 2012 10:42 pm • Last Updated Nov 21 2012 12:01 am

Cedar Hills • Despite past claims to the contrary, this Utah County city has never made a profit on its golf course, according to the city manager.

Not only has the golf course not made a profit, financial data shows it has lost nearly a half million dollars each year since 2004, or about $4.3 million, City Manager David Bunker confirmed Tuesday night.

A special town hall meeting on Nov. 15 for residents clarified that previously reported golf course revenue numbers were correct — if you don’t count the omissions of a property tax subsidy and annual loan payments.

For complete article… http://www.sltrib.com/sltrib/news/55321350-78/golf-course-cedar-hills.html.csp

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