Civic Accountability -- Honesty in Local Government I

The jumping off discussion area for the rest of the Deck. All things Lakewood.
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Mark Kindt
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Re: Civic Accountability -- Honesty in Local Government I

Postby Mark Kindt » Sun Sep 24, 2017 4:15 pm

More than several possibilities arise:

In the situation you describe, one explanation could certainly be the sheer utter incompetence of one or more public officials.

In Richland County, in the old days, this would be a classic kick-back scheme at the Sheriff's Department.

Local dealer purchases the vehicle for $20K. Then resells the vehicle for $30K and kicks back $5K to the County Sheriff. Dealer takes his cut. This is all old hat.

Anybody see a crime? Of course.


Lori Allen _
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Re: Civic Accountability -- Honesty in Local Government I

Postby Lori Allen _ » Sun Sep 24, 2017 9:17 pm

Let's say a city spends $2 million in taxpayer funds to demolish a blighted building, and goes through the legal motions of drawing up affidavits and paperwork explaining the demolition and the fact that the owner of the blighted property owes the city $2 million.

Then let's say the building is demolished, but the city never, ever attempts to collect that $2 million dollars. Even worse, the city does not even attempt to take over the property. Rather, the same owner the neglected the building for 30+ years now gets to use the vacant land as his own private lot go mudding on with his four-wheeler?

Is this just classic bureaucratic waste or something more?

Talk about accountability....


Mark Kindt
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Re: Civic Accountability -- Honesty in Local Government I

Postby Mark Kindt » Mon Sep 25, 2017 10:25 am

Mr. Austin, the point that both Ms. Allen and I are trying to make is that the local government conduct that we have all collectively witnessed in Lakewood is beyond mere incompetence and stupidity.

In fact, it was all very well-lawyered and quite successful in its implementation. Let's keep in mind that they won. The hospital is closed and the real estate is branded with a non-compete.

Significant wealth transfers were made to private parties with a concomitant loss in public revenues. Alternatives that would have prevented this outcome were rejected without public scrutiny or input.

We will never know the full truth, but information that surfaced in the Lakewood Observer and the three hospital-related lawsuits outlines a pretty shabby picture of:

1. Secret deliberations at LHA (the so-called "Step-Two" Committee) that killed the Metro proposal;

2. The "Decanting" Plan;

3. Ethical violations established by the OEC;

4. Financial misrepresentations made by local public officials;

5. Misdemeanor violations of law related to the misuse of city computers and consultants;

6. Malicious harassment of citizens;

5. On-and-on....

Each lawsuit complaint was serious, well-drafted and ultimately, well-documented. Citizen activists made extensive formal complaints to non-local authorities.

We should each understand that much of the information behind the hospital debacle will never be revealed, since it is still being shielded from disclosure by the city's lawyers.

I haven't been so irate about a set of public issues since Nixon was President. I say this as a third-generation Democrat and a third-generation public official.


Dan Alaimo
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Re: Civic Accountability -- Honesty in Local Government I

Postby Dan Alaimo » Mon Sep 25, 2017 11:11 pm

Thanks, Mark.
You have again posted an excellent summary. I'd like to see this and the elaboration of your other points get better visibility.


“Never let a good crisis go to waste." - Winston Churchill (Quote later appropriated by Rahm Emanuel)
Mark Kindt
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Re: Civic Accountability -- Honesty in Local Government I

Postby Mark Kindt » Tue Sep 26, 2017 10:11 am

Then, please enjoy "Civic Accountability -- Honesty in Local Government III" where I will continue a review of public documents and try to document for Deck readers how our local government might aspire to significant improvements in performance.

Please note two corrections to the post above:

I am a former public official, not a current one.

No one has been charged with misdemeanor violations related to misuse of public assets, however, such misuse seems to be apparent from certain public documents released to Mr. Essi and posted by him in his Deck series.


Lori Allen _
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Re: Civic Accountability -- Honesty in Local Government I

Postby Lori Allen _ » Tue Sep 26, 2017 10:44 am

As of yet, there have been no charges filed against anyone in Lakewood. However, I believe that will be changing soon. Some charges may be considered felonies,


Mark Kindt
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Re: Civic Accountability -- Honesty in Local Government I

Postby Mark Kindt » Tue Sep 26, 2017 11:43 am

Mark Kindt wrote:
Significant wealth transfers were made to private parties with a concomitant loss in public revenues. Alternatives that would have prevented this outcome were rejected without public scrutiny or input.



For those who have not followed my long analytical posts (with supporting documents) on the Deck, I want to offer clarification on the statement that I made above.

Under the Master Agreement, the major assets of a then-currently viable hospital were transferred to the Cleveland Clinic Foundation. Also under that Agreement, the Cleveland Clinic Foundation has a contractual obligation to make certain payments to a future non-profit organization. These are the "significant wealth transfers made to the private parties" referred to above. They are "private parties" as that term is understood generally in the law.

As a result of the Master Agreement, the City of Lakewood lost both lease revenues and hospital employee income tax revenues deriving from its then-existing hospital-related contracts. This is the "loss in public revenues".

Metro Health System made a serious and substantive proposal to continue hospital operations with a 10-year investment of $100,000,000. This is the "alternative" that would have prevented the "wealth transfers" while retaining the existing "public revenue" streams. There was a different path available and how and why it was rejected is a quest for understanding and knowledge that I and others are still working on.

It was not my intention to imply that "private parties" were "private individuals" I hope this offers sufficient clarification.


Mark Kindt
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Re: Civic Accountability -- Honesty in Local Government I

Postby Mark Kindt » Fri Sep 28, 2018 10:49 am

An Example of a Securities and Exchange Commission Lawsuit

False statements, misrepresentations, and omissions of material facts can be violations of the federal securities law.

The same law applies to municipalities, like Lakewood, that offer securities (municipal bonds) into the markets, the primary focus of this Deck forum essay.

Here is a good recent example that is easy to understand. It is the SEC complaint filed recently against Elon Musk.
Attachments
SEC Complaint on False or Misleading Statements.pdf
(126.93 KiB) Downloaded 206 times


Mark Kindt
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Re: Civic Accountability -- Honesty in Local Government I

Postby Mark Kindt » Mon Oct 01, 2018 11:19 am

Here's The Point

While it is entirely unlikely that anyone in the city administration will ever be held accountable for their conduct or statements related to the liquidation, closure, and giveaway of Lakewood Hospital, even just simple "Tweets" like those made by Mr. Musk can be actionable by a federal enforcement agency and entail serious litigation risks.


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Jim O'Bryan
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Re: Civic Accountability -- Honesty in Local Government I

Postby Jim O'Bryan » Wed Oct 10, 2018 10:02 am

Mark Kindt wrote:Here's The Point

While it is entirely unlikely that anyone in the city administration will ever be held accountable for their conduct or statements related to the liquidation, closure, and giveaway of Lakewood Hospital, even just simple "Tweets" like those made by Mr. Musk can be actionable by a federal enforcement agency and entail serious litigation risks.



Mr. Kindt

I would say...

Here is the real point.

The residents of Lakewood have been repeatedly lied to by City Officials, and some of those involved downstream in receiving funds from the destruction of the publicly owned Lakewood Hospital. If residents do not understand that, and are not willing to hold elected officials accountable for their actions, then it will continue, and the decanting and the destruction of the community will continue. Lakewood as it was known, loved and picked for a home will drastically change. Right now those cahnges are being orchestrated by 60+ year olds that have basically failed at delivering anything they promised for nearly 3 decades.

Residents deserve honest government. Has that really become impossible in Lakewood?

.


Jim O'Bryan
Lakewood Resident

"The very act of observing disturbs the system."
Werner Heisenberg

"If anything I've said seems useful to you, I'm glad.
If not, don't worry. Just forget about it."
His Holiness The Dalai Lama
Bill Call
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Re: Civic Accountability -- Honesty in Local Government I

Postby Bill Call » Wed Oct 10, 2018 12:30 pm

Jim O'Bryan wrote:Residents deserve honest government. Has that really become impossible in Lakewood?

.



Over 14,000 people have viewed this post. That has to be some kind of record for a serious discussion about city government. What do they think?

If the City decided to close the Hospital and cash in its $170 million in property, cash and investments it wouldn't have bothered me all that much.

What they did was to donate land and equipment to Cleveland Clinic, give the business to the Clinic, sell the Columbia Road Property to the Clinic at a steep discount, donate 6 acres of land to the Mayors friends at Carnegie development, and donate $70 million in City funds to two private foundations.

People like Brain Essi are spending time and money to get the City to release the public records related to this deal but the City fights for every page to be redacted. Are any of those 14,000 people even a little bit outraged?

Even as we argue the shredders at City Hall working overtime. Where are members of Council on openness and accountability?

I suppose they think that by playing along … they get what exactly?

Are they deceiving themselves?

A word to the wise:

First you deceive yourself and then you deceive others.


Mark Kindt
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Re: Civic Accountability -- Honesty in Local Government I

Postby Mark Kindt » Wed Oct 17, 2018 1:08 pm

The Sewer Issue

I have attached the letter from the mayor dated October 1, 2018 that identifies a probable remedial liability of $274,000,000 that the city faces in compliance with state and federal requirements for its water and sewer system operations.

As you review the 2017 Comprehensive Annual Financial Report of the City of Lakewood, you will see that it is silent on this claim and its estimated costs. However, the city has been working on this issue for 15 years and is under a series of government administrative orders related to compliance.

This exemplifies the problem that this Deck essay has been about.

It's the SEC Harrisburg Release problem.

Are city financial statements used by municipal bond investors providing a full and complete disclosure of material financial issues that might affect an investor's decision to purchase municipal bonds?
Attachments
Letter-to-Council-EPA-and-Waste-Water-Compliance-ver-9-28-18-final.pdf
(1.06 MiB) Downloaded 219 times


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Jim O'Bryan
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Re: Civic Accountability -- Honesty in Local Government I

Postby Jim O'Bryan » Wed Oct 17, 2018 1:16 pm

Mark Kindt wrote:The Sewer Issue

I have attached the letter from the mayor dated October 1, 2018 that identifies a probable remedial liability of $274,000,000 that the city faces in compliance with state and federal requirements for its water and sewer system operations.

As you review the 2017 Comprehensive Annual Financial Report of the City of Lakewood, you will see that it is silent on this claim and its estimated costs. However, the city has been working on this issue for 15 years and is under a series of government administrative orders related to compliance.

This exemplifies the problem that this Deck essay has been about.

It's the SEC Harrisburg Release problem.

Are city financial statements used by municipal bond investors providing a full and complete disclosure of material financial issues that might affect an investor's decision to purchase municipal bonds?



Mark

I would like to move this to its own thread or ask you to start a new one. This is very important and what the city answers or does even more so. I would hate for it to get lost on page 14 of this thread.

.


Jim O'Bryan
Lakewood Resident

"The very act of observing disturbs the system."
Werner Heisenberg

"If anything I've said seems useful to you, I'm glad.
If not, don't worry. Just forget about it."
His Holiness The Dalai Lama
Mark Kindt
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Joined: Sat Dec 03, 2016 11:06 am

Re: Civic Accountability -- Honesty in Local Government I

Postby Mark Kindt » Wed Oct 17, 2018 1:37 pm

Yes, I will make some additional posts in a new thread.

In this thread, I am attempting to delineate the potential issues that can arise when assets or liabilities are not reported or are misrepresented.



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