Beaumont Councilman: DA Needs to 'Provide Closure' to Investigation

Investigators from the District Attorney’s Office and the FBI raided Beaumont City Hall and Urban Logic Consultants on April 22, 2015. Photos by Renee Schiavone.
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By City News Service:

BEAUMONT, CA - Beaumont City Councilman Mark Orozco is calling on the Riverside County District Attorney's Office to finish the investigation initiated nearly a year ago so residents might finally realize "closure" and know whether there were findings of criminal malfeasance.

"This April will be one year since district attorney's officials served warrants on Beaumont City Hall," Orozco said.

"The community has endured arduous challenges since the majority overhaul of the former City Council and administration. The current council has diligently worked to put into place both financial and accountability measures to ensure the integrity and transparency of city government."

Orozco said the city has followed state Controller Betty Yee's recommendations, issued in November, to improve financial practices and strengthen vetting at all levels.

"The people of this community deserve justice," the first-term councilman said. "If any wrongdoing was done, the District Attorney's Office needs to come forward and provide closure to our residents."

"In order for our community to be content and to restore residents' faith in their local government, it is imperative to have District Attorney (Mike Hestrin) provide a complete and full disclosure of the investigation ... so we may move forward stronger together as a city," Orozco said.

District Attorney's Office Public Information Officer John Hall told City News Service his office had no response to Orozco's request.

Orozco noted that a Citizens Oversight Financial Committee had been formed and that the city has persisted with an ongoing internal audit to determine to what extent, if any, there was mismanagement of community facilities districts' funds.

The effort stems, in part, from a state audit ordered by Yee after the April 22, 2015, raid on Beaumont City Hall by District Attorney's Office investigators and FBI agents.

Yee's inquiry revealed that:

• officials did not track bond transactions totaling $626 million, making it impossible for the Controller's Office to determine whether proceeds were used for stated purposes
• a former city manager and a former public works director received fees from bond proceeds, though there was no indication they had agreements with the city to collect those funds in their dual capacities as outside consultants
• the same two men signed off on payments to the consulting firms where they served in executive positions
• the city neglected to follow competitive bidding policies, entering into contracts with one vendor under "sole source" arrangements without validating that there were no other competitors in the market;
• the city may have misused its reseller's permit, obtained from the state Board of Equalization, which allowed it to purchase goods without paying sales tax, and a vendor was allowed to borrow the permit

Yee also took the city to task for running deficits for five consecutive years, with the shortfall at one point approaching $10 million.

Three-fifths of the council is now comprised of first-term members, including Orozco.

During the joint raid by the District Attorney's Office and FBI, investigators seized boxes full of documents and computer hard drives. The raid also targeted Urban Logic Consultants Group, with which Beaumont had done business for 20 years.

Former City Manager Alan Kapanicas was a principal at the firm.

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