PUBLIC IMPROVEMENT CORPORATION
LCPIC Slush Fund
Articles of Incorporation
NEWS UPDATE: 3/18/18
CERTIFICATE OF PARTICIPATION LOAN PAYMENT DUE: EACH JUNE
CAO Richard Egan just confirmed that the LCPIC has no records that the corporation registered with the IRS
The Auditor, County Clerk cannot produce any activity for this corporation in the last seven years
The Government Financial Strategies, Inc. stated today that the vetting of the status of LCPIC was done through the County's Bond Counsel, Meyers-Nave
NO RECORDS FROM 1989 TO 1992 OF THE ORIGINAL LOAN TO CONSTRUCT THE COUNTY JAIL
NOTE: Larry Wosick's term was from 2010-2014. Richard Egan claims that the last meeting of this corporation was on June 26, 2008. Larry Wosick was placed on the Board of Directors of the LCPIC, as President, by virtue of his position as Chairman of the Board of Supervisors. The LCPIC did not meet again until 2015. They are required to meet annually due to the outstanding balance owing on the Certificate of Participation issued in 1998 and was paid off in 2011.
The LCPIC assumed a $6,030,000 debt when it was formed in 1998 because the County paid only the "interest" on the 1989 COP.
The County continued to operate, from 1992 to 1998, without the shell corporation Ameri-Cal Civic Improvement Corporation which was dissolved in 1992.
Coincidentally, no records exist from 1989 to 1992 of this Ameri-Cal Civic Improvement Corporation
Lassen County Supervisors will invalidate the Lenders Collateral first at the Board of Supervisors Meeting on March 20
at the LCPIC annual meeting 1:00 PM (Administration Bldg)
Kan We Help Reminds Bustamante
Schedule the LCPIC Annual meeting
[Bustamantes response: After the first Board of Supervisors meeting in July]
Kan We Help requested an accounting of the COP loan expenditures
and suddenly they remove an inappropriate expenditure for
Health and Social Services
....as we promised, we will watch every penny !
Public Improvement Corporation's Annual Meeting
L to R: Treasurer Nancy Cardenas, Auditor Diana Wemple , Supervisor Chapman, Secretary Julie Bustamante, CAO Richard Egan, Tony Shaw
ABSENT: Assessor Dan Schlueter, Sheriff Dean Growdon
The meeting started late (11:03 AM) because Chapman was late again.
The meeting was adjourned at 11:13 AM
This is a public corporation that was created to fund ($4,080,000) a community pool and buy and restore an office building.
Kan We Help Secretary Eileen Spencer, in Public Comment, asked where the money originated from to pay the $300,000 loan payment? Chapman said he was not going to answer that question, but CAO Richard Egan reminded Chapman that this was "PUBLIC COMMENT" and this was a legitimate question. Chapman took offense to this and said it was none of Spencer's business. Was Chapman's defensive position due to the fact that he did not know or he was hiding something?
The County told the public there would be no problem re-paying this $4,080,000 loan because they would use the "Tobacco Settlement" Fund to make the annual payment. The problem the Supervisors ran into......they committed this money to many different projects and when it came time to make this loan payment, the Tobacco Fund had been depleted.
Also, this public corporation must pay an $800 fee each year to the Secretary of State. Julie Bustamante is responsible for making this payment and has never made one payment on time for this loan or the 1989 loan. Penalties then accrued. We can only assume they approved a $1,000 because she has to pay delinquent penalties again.
Bustamante Corrects LCPIC Agenda
Kan We Help Reminded Bustamante over and over that the Lassen County Public Improvement Corporation has not held their mandatory "ANNUAL" meeting yet. This corporation was formed to process a $4 million dollar loan to finance an office building and a community pool.
When she does schedule this meeting, she puts two (2) meeting times on the Agenda?
THE FIRST PAYMENT WAS JUST MADE ON THIS LOAN
This annual $300,000 loan payment
all of the Tobacco Settlement Fund each year
Where is the rest of the payment coming from?
The Supervisors put this payment into the 2015/2016 Budget
Please notice that Account 3004200 & 3004400 is for
"OTHER" LONG TERM DEBT.
This is the secret debt still on the books for the first Loan
Lassen County Supervisors
Buying New Computers for the
.......when they said the four Departments would be bringing their existing equipment and furniture with them
Three Departments will be getting new computers/monitors
District Attorney will get 7 new computers/monitors
Probation will get 13 new computers/monitors
Public Defender will get 6 new computers/monitors
CHILD PROTECTIVE SERVICES - ZERO
The Supervisors are paying for these computers from Fund 104, Budget 0322, Account_______________
The Lassen County Supervisors voted not to budget any funds for the Courthouse renovations from the LCPIC slush fund in the 2015/2016 Fiscal Year
When Chapman wanted his new Board Room in Judge Sokol's old Courtroom (The Courthouse Annex) "he" arbitrarily instructed NST to go ahead with the remodel plans. He had no authority to order this work and now he has done the same thing with the Old Courthouse.
The Lassen County Board of Supervisors NEVER AUTHORIZED THIS RFP
Lassen County Auditor Watching LCPIC COP Funds
Richard Egan Attempts to Use
Replace a Heater at 107 S. Roop Street
Lassen County Treasurer/CAO Richard Egan
of the LCPIC dollars
from 2003 to 2011
*The 1989 $6,675,000 Certificate of Participation (COP) loan cost the taxpayers $11,121,884.41
[*Based on public records from 1993-2011].
Lassen County claims they have no records for this loan from 1989-1992
Kan We Help Has Confirmed
Egan, Pyle and Chapman
about the 1989 $6,675,000
the County paid only "interest" on this loan and refinanced
the principal in 1998
the 1998 $6,030,000
*the $6,030,00 loan was not paid off in 2007, 2008, 2009, 2010
Certificates of Participation loans
They should not be trusted with
the new $4 million loan
Former Lassen County District 5 Supervisor
Speaks Against LCPIC Loan
at May 26, 2015 Board of Supervisors Meeting
Supervisor McCain was kept in the dark about this secret slush fund
Bob Pyle was President of this slush fund in 2001, 2006, 2010, 2015
Jim Chapman was President of this slush fund in 1999, 2003, 2011
Brian Dahle was President of this slush fund in 1998, 2007, 2012
Lassen County Supervisors Pyle and Chapman's
DECEPTION FIRST AND THEN MORE LIES
SECRETS, SECRETS, SECRETS
August 7, 2001 LCPIC Minutes
Richard Egan: "The corporation can also borrow funds without approval of the voters"[Richard Egan was the Lassen County Treasurer from 1999-2014]
After Julie Bustamante was elected County Clerk the LCPIC didn't meet from 2009 to 2015. Annual Reports were not filed
On June 15, 2011, the Franchise Tax Board sent the LCPIC a "FINAL NOTICE BEFORE SUSPENSION
Lassen County Public Improvement Corporation
NOT A NON-PROFIT
as the Articles of Incorporation
and Bylaws state
......just a plain old ordinary shell corporation
Kan We Help requested the Agendas, Minutes and annual corporations reports filed with the Franchise Tax Board and/or the IRS. On May 29, 2015, the County Clerk was advised by County Counsel not to let KWH inspect these documents.
The County Clerk claimed later, after Kan We Help threatened to file a Writ of Mandate, she had to find all of the documents requested.
Bustamante had the "green" binder at the May 26, 2015 LCPIC meeting and could have complied with Kan We Help's Public Records Request on May 29, 2015
Bustamante turned the "green" binder over for inspection today.
Bustamante also released the annual regular corporation "Franchise Tax Form 100's " & copies of the letters from the State of California regarding late fees, penalties, etc.
All available on May 29, 2015
WILL BE HELD ACCOUNTABLE
FOR THIS DECEPTION
They cannot produce any documentation that LCPIC
a valid non-profit corporation.
Lassen County Public Improvement Corporation
?BOGUS AND BUSTED?
A Ukiah resident, Tony Shaw, was hired to put this $4 million dollar loan together. The Board of Supervisors hired the Government Financial Strategies Inc. and GFS, Inc. based their vetting of the LCPIC to receive millions on Bond Counsel (Meyers-Nave). .....great checks and balances ?
Lassen County Counsel Bob Burns has blocked any disclosures on the LCPIC that was formed in 1998. He advised the County Clerk not to release mandatory State annual reports, Agendas and Minutes. All are public documents.
All corporations in California are required to comply with the changing corporate laws. LCPIC is no exception, even though the GFS, Inc. was told by Bond Counsel that the LCPIC does not have to comply.
Is the LCPIC defunct and being resurrected?
Will most or all of the 4 million be used on the DA's new building?
Will Chapman's new board room continue to be paid from unfunded budget accounts?
Will the HLVRA go out-of-business because the County spent the promised million dollars?
Will the Supervisors continue
coerce and intimidate staff to hide the truth?
Vacated BLM Building
Riverside Drive, Susanville, CA
assessed at $2,303,892 in 2014
The BLM building is listed for $1.6 million with Susanville Real Estate
CAO, Richard Egan told the public that it would
cost $1.1 million to purchase this building & $600,000 to renovate
Anyone want to guess why Egan lied?
Will Steve Pezzullo's Big Happy Family laugh all the way to the bank again,
if they pull off this scam ?
It's just money......public money
County Counsel Burns tells Bustamante
NOT TO COMPLY
Public Records Request
Bustamante, "So, take me to Jail"
Four Board of Supervisor
(Supervisor Albaugh votes No)
Approve a $4 million loan
??? Lassen County Public Improvement Corporation ???
Video of 5/26/15 discussion and vote
the Lassen County Public Improvement Corporation Meets @ 3:00 PM
The LASSEN COUNTY PUBLIC IMPROVEMENT CORPORATION has not met since 2008.
Attendees: L to R: BOS Chairperson/President Bob Pyle, County Clerk/Secretary Julie Bustamante, CAO/Vice-PresidentRichard Egan, Assessor/Director Dan Schlueter, Auditor/Comptroller Diana Wemple, Treasurer/Treasuer Nancy Cardenas, Sheriff/Director Dean Growden (arrived later).
Deputy CAo Tony Shaw, County Counsel Bob Burns and KWH Secretary Eileen Spencer also attended this 17 minute meeting.
LCPIC MAY 26, 2015 AGENDA
LASSEN COUNTY CAO RICHARD EGAN
INTENDS TO CONVENE THE BOARD OF DIRECTORS OF THIS
MAY 26, 2015 @ 3:00
IN THE CONFERENCE ROOM
AT 200 S. Roop Street, Susanville
On June 26, 2008 when the last Board of Directors allegedly met, the Directors included the Lassen County Board Chairperson (Jack Hanson), Treasurer (Richard Egan), CAO (John Kettleson), Auditor (Karen Fouch), Assistant Treasurer ??? (Nancy Cardenas), Sheriff (Steve Warren) and the County Clerk (Julie Bustamante)
NOW MR. EGAN CLAIMS THAT THE ARTICLES OF INCORPORATION INCLUDE THE FOLLOWING:
Chairperson of the Lassen County Board of Supervisors
THE SUPERVISORS HIRED A FIRM TO ADVISE THEM ON
FINANCING THE PURCHASE OF A BUILDING FOR THE NEW DISTRICT ATTORNEY
A $1 MILLION DOLLAR GIFT TO THE HLVRA FOR CONSTRUCTION COSTS OF THEIR NEW POOL
The County does not own either property and yet hired a dubious law firm to create a shifty agreement which has been placed on the BOS Agenda for Tuesday, May 26, 2015
This agreement would use the Juvenile Hall as the shell corporations' collateral (not the owner of the property) to qualify for a $4 million dollar loan from a newly formed investment company in Arizona.
Before any money is approved and released to the LCPIC, Lassen County intends to enter into another Shifty Agreement to lease the yet, unpurchased property, to the LCPIC. Then the LCPIC will lease back this unpurchased property to Lassen County for the equivilent of the loan payments LCPIC must make.
Lassen County Supervisors
"Slight of Hand"
for funding....... now what "project " was that for?
Company A gets funding from Company B who gives the money to Company C who gives it back to Company A
Oh, this gets even better................
Lassen County CAO Richard Egan
Proposes Using a 1998 Shell Corporation
to Borrow $4 million dollars
On June 26, 1998, Lassen County created the shell corporation
LASSEN COUNTY PUBLIC IMPROVEMENT CORPORATION.
The concept, in 1998, was to have this shell corporation borrow money to build the new Jail. This "shell" corporation does not have any assets to borrow a dollar?
In 2000, Lassen County obtained a $2,000,000 State Grant to build the Juvenile Hall at 1415 Chestnut in Susanville, CA and continues to receive State dollars to operate the Juvenile Hall.
Lloyd Keefer is shown here cutting the ribbon opening Juvenile Hall in October of 2007
CAO Richard Egan and Supervisor Bob Pyle intend to use Juvenile Hall as collateral for the shell corporations $4 million dollar loan .
PRETTY SLICK GUYS BUT THERE ARE A FEW PROBLEMS
Lassen County built the Juvenile Hall with restricted funds.
Lassen County owns Juvenile Hall & intends to use this property as collateral for exactly what.....a phony lease agreement?
The shell corporation (LCPIC) has no assets
Where are the financial statements for LCPIC?
How did the current alleged "Directors" suddenly get appointed?
THE SHELL GAME
FOR THE SHELL CORPORATION
LCPIC intends to "lease" the "Riverside building" (?whatever that means?) and the "Lassen County Courthouse (owned by the State)" from Lassen County by giving Lassen County the proceeds from the $4 million dollar loan from TPB Investments, Inc.(formed in 2011)
Lassen County rents these ??properties back from the LCPIC.Lassen County will agree to PREPAY the rent one year in advance so the LCPIC can make the annual loan payments (the documents state that the County can pay these "rental" payments" from "any source", but the Tobacco Settlement fund is specifically mentioned as the source)
WHAT IS DISTURBING IS THAT THESE AGREEMENTS UNDER NO CIRCUMSTANCE OBLIGATES THE COUNTY OR THE LCPIC
ON HOW THEY MUST SPEND
THE $4 MILLION