Grand Jury Findings
— by Jeffrey Wisniewski — 21 June 2010 — 1 comment below »
The Grand Jury report released late last week concluded with eight findings…
- Awarding agreements to NEO without competitive bidding does not ensure the City is administering its programs in the most cost effective manner.
- Since 2003, the City of Hercules has executed agreements with NEO, previously owned by the current City Manager.
- NEO currently employs immediate family members of the City Manager and staff.
- In late 2009, the City purchased homes of nine affordable housing program loan recipients who defaulted on their original mortgage and redevelopment loans.
- The City then sold three of the homes back to the same recipients for less than the original purchase price, again utilizing the affordable housing loan program.
- Homes purchased from affordable housing loan recipients were resold by the City without being advertised for sale or rent on the City website. In addition, they did not appear on the Multiple Listing Service. (MLS)
- In 2008 and 2009 redevelopment loans were made to relatives of Hercules City Council members.
- The Transportation and Housing Subcommittee neither publishes minutes nor posts agendas regarding the affordable housing program.
The report does not include the fact that Councilmember Ed Balico profited on at least one of the transactions acting as the buyer’s and seller’s agent.
The City is required to respond to the eight findings in writing by August 2.
This seems to be a good start as far as it goes. Will there be indictments?