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God’s Honest Truth Latest On Project Phoenix

By   /   May 8, 2012  /   1 Comment

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Pay no Attention to the man behind the curtain...

If you are wondering what was said at tonight’s Council Meeting…. read the story.

Well, it took some mighty shaking to shake loose the information from Manager Warne, but he finally decided to let the oversight board and the city council in on what has been happening with the State Department of Finance.  That’s good news. Of course, in the meantime, I had to take the criticism of putting out misinformation.  Any misinformation that I put out was due to Manager Warne keeping this information away from City Council and the Oversight Board.  My information that the state rejected Project Phoenix was solid, you saw that letter posted on CT.  I will tell you the public, because it is We The People, the City Council can govern us only by our permission for them to do so. Other than still believing that it was a bad idea to issue bonds, I can’t blame the City Council for this one. They didn’t know.  It seems they were kept in the dark. I am sure they are not too happy about that.

The Oversight Board have to be wondering what the hell is going on.  And they do know now, because we forced Manager Warne to give up the information.  I waited all last week, to see some information come out.  It was Thurs evening and Friday when I decided to ask around. I would have asked Warne, but City Hall was closed. I did request Records yesterday, he could have talked to me or sent out the information that I already had from DOF.  He didn’t intend to release that info until it was disclosed on Cactus Thorns.

Order of Events:

  • · On April 11, 2012, the Twentynine Palms Oversight Board approved the Recognized Obligation Payment Schedules (ROPS) covering January-June and July-December 2012 for the Twentynine Palms Successor Agency.
  • · On April 13, 2012, the Twentynine Palms Successor Agency transmitted both ROPS to the County Auditor Controller, the State Auditor, and the State Department of Finance.
  • · On April 17, 2012, the Twentynine Palms Successor Agency received a correspondence from the DOF asking for backup documentation relating to the ROPS.
  • · On April 19, 2012, the Twentynine Palms Successor Agency responded back to the DOF with supporting documentation and response letter from Rutan & Tucker.
  •  On April 27, 2012, the Twentynine Palms Successor Agency received a letter from the DOF (posted in Here’s Your Letter.. Dick by Dan O’Brien)

I confirmed with DOF that this was sent after reviewing the lawyer’s letter.  Warne wasn’t happy with his 2nd NO, so another appeal was sent to the DOF, again stating that Project Phoenix should be an enforceable obligation because of bond language, basically just a repeat of the first one. I don’t know maybe it works if you keep asking. Just talked to DOF- the answer is still pending.

So there you have the what’s going on.  Did this information hurt anyone?

Will tell you a little more, the way RSG sees it, that there is nothing wrong with the successor agency (former RDA) and the oversight board approving Project Phoenix and moving forward with this project anyway……..Things That make you go hmmm……

  • o The Successor Agency disagrees with the DOF that for Project Phoenix to be considered an enforceable obligation, contracts are needed in addition to the bond documents.
  • o If the bonds are enforceable obligations, then the Oversight Board will direct the Successor Agency what to do with the bond proceeds, and the Oversight Board would have to adhere to the purpose of, and uses listed in, the bond documents. Therefore, it is our view that while we think it is unnecessary, the use of funds from bond proceeds for Project Phoenix is an enforceable obligation if contracts for this purpose between the City and Successor Agency are adopted and approved by the Oversight Board. (Staff is working on contracts for the Successor Agency and Oversight Board to approve for this purpose.)

RSG has been in contact with the state and the county and the county has been in contact with the Oversight Board giving them additional information.

Also spoke with County Auditor today. The county will only release the funds that the DOF stated in the letter you read on here, so until a different DOF letter arrives and I trust we will know as soon as the City, it is what we reported: State Rejects Project Phoenix.

These documents should be available at City Hall.

29 Palms – Rutan & Tucker Letter

The Compete Time Line of communications

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About the author

Cora Heiser

Twentynine Palms resident

1 Comment

  1. Dan OBrien Dan OBrien says:

    The RDA and/or the Successor Agency can not enter into contracts with anyone even the Oversight Board past June 27th 2011. Today is May 9th 2012, 11 months beyond the permissible date a contract can be entered into.

    Now either RSG has overlooked those facts or they are willfully violating State Law.

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