City Manager Yates Approves $687,500 Giveaway to Verizon

At the Lake Elsinore City Council meeting on November 10, 2015, City Manager Grant Yates recommended the City Council approve a “Communications Site Lease Agreement” with Verizon to install a cell tower at the Canyon Hills Community Park. According to paragraph-4 of the Agreement the City will receive “Annual Rent” in the sum of $2,500 per year (see excerpt pictured above). This is a piss-ant pittance compared to the annual rent the City has received in the past. For example, the City receives $1,500 per month or $18,000 annually from the cell tower site lease agreement at McVicker Park.

I suspect this low ball “Annual Rent” was a terrible mistake, but you wouldn’t know it reading paragraph-4 of the agreement that repeatedly states “Annual Rent” at the low $2,500 per year figure. Something went terribly wrong in the City’s administrative process that can’t be attributed to a simple typo, as some may conveniently try to claim. More than likely there was a serious miscommunication error between Director Grant Taylor, who prepared the deal points, and the City Attorney’s Office. Under City Hall’s approval process for all staff reports to the Council, this costly error was reviewed and approved by City Manager Yates, City Attorney and Administrative Services Director Simpson before being listed on the Council’s agenda for the public meeting. Subsequently, the City Council blindly approved the legally binding Agreement without even discussing this item at the meeting.

The non-binding Staff Report stated the rent was supposed to be on a monthly basis. If the City was supposed to receive $2,500 per month instead of “per year”, then the City would stand to lose $27,500 per year or $687,500 over the life of the Agreement. Didn’t anybody at City Hall bother to read both the Agreement and Staff Report to see if the dollars matched?

It appears the City Council doesn’t pay much attention to details or the cost of things anymore. The City Council has gotten lazy and places almost all public business items on the Consent Calendar to be rubber stamped approved in one fail swoop without discussion. I hope this article will mobilize the Council to make sure this mistake is corrected before the binding Agreement is signed by Verizon. I also hope that the City Council will bother to read and verify the cost of future agreements and capital expenditures. That’s just their basic fiduciary responsibility. However I’m not too optimistic, as it’s in keeping with their legacy of condoning the poor performance of City Manager Grant Yates.

Given this legally binding Agreement was approved by the City Council at an open public meeting, we’ll know if they correct this costly mistake when this item is re-agendize at a future City Council meeting.

When will City Manager Yates stop making such costly mistakes? What’s it up to now…$3 million? See weblinks below.

Feds Seize City’s Only Golf Course - Preventable

http://patch.com/california/lakeelsinore-wildomar/feds-seize-citys-only-golf-course--preventable

Million Dollars nearly lost by City

http://patch.com/california/lakeelsinore-wildomar/million-dollars-nearly-lost-by-city

Technical Report indicates City is throwing money down a pothole

http://patch.com/california/lakeelsinore-wildomar/technical-report-indicates-city-is-throwing-money-down-a-pothole

Council Approves Blank Check for Resort Operating Fee

http://patch.com/california/lakeelsinore-wildomar/council-approves-blank-check-resort-operating-fee

Pat Kilroy

(23 year resident)