A crooked road to Arroyo Grande?

October 21, 2014
Mayor Tony Ferrara

Mayor Tony Ferrara

Editor’s note: The Arroyo Grande ordinance limiting how the mayor and city council members may legally interact with city staff is at the bottom of this story.

By KAREN VELIE and DANIEL BLACKBURN

Business owners and city staffers in Arroyo Grande have come out with accusations of graft and corruption by Mayor Tony Ferrara and other city and county officials.

The charges leveled against Ferrara and others include theft of public resources by public officials, threats and harm to political opponents using city resources, attempts to get kickbacks from contractors and misspending city money to support a favored developer.

Ferrara also is the newly-elected president of the League of California Cities. He did not respond to detailed questions from CalCoastNews.

As a member of the Arroyo Grande City Council, Ferrara is permitted by state and city laws to work with the council to set policy — and then may instruct only the city manager to carry out the council’s orders. Mayors and council members are prohibited by law from acting alone in giving orders to the city manager, or from instructing other city employees to do their bidding.

But several developers, business owners and Arroyo Grande employees accuse Ferrara of ordering staff to do work for him using city equipment. California law makes the personal use of equipment and city staff for personal use a crime, theft of public services.

On Sept. 27, Ferrara had three public works employees, two city trucks and one city backhoe at his home to remove a pear tree that had fallen over. The team cut up the tree and took the wood to the city corporate yard for disposal. A week earlier, Ferrara had another public works employee at his home moving a television set from his living room to his garage, employees said.

Tony Ferrara's fallen pear tree.

Tony Ferrara’s fallen pear tree.

Shortly after CalCoastNews began asking about the use of public services for his private home, the city issued a bill to Ferrara asking for $196 for the tree removal. The bill came on Oct. 6 and Ferrara paid the bill on Oct. 10.

Three days later Ferrara told the city council that he had been charged a hefty fee for the removal of the tree. But a half dozen local tree specialists gave estimates all starting at a higher rate than the mayor paid the city.

City Clerk Kelly Wetmore explained why the city had staff work on private property saying that because a portion of the tree was on the sidewalk, the city was responsible for its removal.

However, Commander Kevin McBride, a 30-year veteran on the Arroyo Grande Police Department, said that in some cases city employees will remove a limb dangerously obstructing the sidewalk. But city staff does not chop up and remove entire trees for homeowners, he said.

Last week, CalCoastNews contacted public works staff at five local cities. Each of the staff said that, in their city, removal of a tree was the homeowner’s responsibility. However, if a dangerous situation has been created and the homeowner is not able to remove a sidewalk obstruction, those cities will remove limbs covering the sidewalk, and require the homeowner to remove the remainder of the tree.

In addition to allegations of theft of public services, business owners accuse city officials of using threats of withholding contracts in order to promote their political opponents and squelch critics.

Several mayoral elections ago, one of Ferrara’s critics had SLOCO Data and Printing print and mail out pamphlets that painted a negative picture of Ferrara.

Julie Tizzano, the owner of the Arroyo Grande business, said she was approached by Councilman Jim Dickens and told that if she did not mail out a correction, she would no longer do business with the city. She refused Dickens’ demand.

“They threatened me for political gain,” Tizzano said. “Aside from several small jobs that only I have data for, I never received another job from the city.”

Other business owners contend Ferrara works with the city manager, city attorney, and community development director in a convoluted, dysfunctional fashion that has cost those owners millions of dollars. Most said their biggest problem has been receiving specific directions from staff, complying with those directions, and then having city officials or other staffers change the direction delaying the project adding to costs for the developer.

Many say they will not work in the city of Arroyo Grande as long as Adams and Ferrara are in charge.

About 10 years ago, former Community Development Director Rob Strong promoted several changes to the city’s general plan to alter land use policies. Several months later, he entered into a short-term escrow on a property that included a large parcel of land and two older homes, known as the Cherry Creek property. Strong did not have the money to purchase the property, according to a disclosure that he made.

Strong then contacted San Luis Obispo businessman Cliff Branch and recommended Branch develop the Cherry Creek property with a neighboring property owner, Branch told CalCoastNews in an email. The development required Branch to carry on a dialogue with Ferrara, Adams and City Attorney Tim Carmel, he wrote.

“Over the course of a year, we communicated extensively about the project,” Branch said in an email. “As the months passed, I realized I had landed in the twilight zone of the city government, where I felt continually misled, misinformed and/or intimidated.”

During the period, Ferrara sought a meeting, Branch wrote.

“At one point, Mayor Ferrara asked to ‘meet privately,’ and the two of us sat alone in the council chamber,” Branch wrote. “The mayor proceeded to give me a stern lecture on how to conduct myself during ‘his council meetings’ and strongly implied that it would be inadvisable to ignore his advice.

Strong later asked Branch to provide him with a purchase agreement for a lot with one of the existing homes on the Cherry Creek property at a favorable rate. He told Branch that he supervised the Arroyo Grande staffer who would be the city planner on the project. City planners can either expedite permits and other requirements or delay and possible destroy projects.

“It had always been a questionable situation because the city planning director had negotiated an option to purchase an existing house in the development, at a set price, which was highly unusual,” Branch said.

The city took no action, Branch said.

“The planning director warranted that he had made all proper disclosures to city officials. Ferrara had later said that it was ‘not an issue’ because a disclosure form was filed and approved by the city attorney,” Branch told CalCoastNews.

About seven years ago, while the project was still in the approval process, Strong left the city and the developers began working with Adams and Teresa McClish, the city’s new planning director.

“It was my impression that Adams simply ‘took orders’ from Ferrara, so a bad situation became even more dysfunctional,” Branch wrote. “It was also my experience that that City Attorney Tim Carmel conducted the city’s legal affairs with remarkable arrogance. Mr. Carmel once stormed out of a meeting called by the city in a truculent fashion while other city staff members remained at the table, stunned by the city attorney’s behavior.”

In the end, San Luis Obispo County Supervisor Caren Ray, a former Arroyo Grande city official who was involved in the projects approvals, purchased the home that Strong had optioned. By that time, the home had undergone extensive remodeling.

Then, on March 4, 14 days before the closing of Ray’s home, the Arroyo Grande Planning Commission, which includes Ray’s live-in boyfriend Randy Russom, noted an administrative decision in the meeting minutes to designate the recently purchased home as historical.

Because of the Mills Act, this decision will lower Ray’s property taxes by as much as 90 percent as compensation for limiting future remodeling and construction work on the home.

Several years ago, Rick Loughead, another prolific developer and the owner of Dolphin Bay in Shell Beach, was working on a project in the village area of Arroyo Grande. However, because of issues with misdirection from city officials and staff which stalled project approvals, Loughhead said he sold the project at a loss and that he will no longer work with the city.

“It was a difficult and convoluted deal with Ferrara, Adams, and the planning director,” Loughead said. “I couldn’t work with them and I sold the property.”

In 2004, when John and Beatrice Spencer agreed to convert a vacant building in Arroyo Grande into a Spencer’s Fresh Market, they did so at a cost of several million dollars with assurance from the city that the Courtland Place parcel across the street would include courtyards and small size shops and not a large supermarket, John Spencer said. However, several years later, developer Nick Tompkins began negotiating a deal to place a large discount grocery across the street with the city manager’s support — prompting the Spencers to close their Arroyo Grande store.

In 2011, Doug DeBerti approached city planners to get pre-approval for his plan to put a surf shop in the former home of J.J.’s Market. After receiving assurance from McClish that the project would sail through quickly, he purchased the building from Tompkins.

ag mura 3

The mural the city denied and then approved.

Then city officials asked DeBerti to share his parking lot with Tompkins and he declined.

“After that things went south,” DeBerti said.

Nine months later, city officials rejected DeBerti’s proposal because of issues they had with the driveway, as well as a mural he wanted to place on the side of the building. In the end, the building went back into Tompkins’ name. City officials then approved Tompkins’ request for the same mural and driveway that DeBerti had proposed.

“If this isn’t corruption, I don’t know what is,” DeBerti said.

City Manager Steve Adams and Teresa McClish

City Manager Steve Adams and Teresa McClish

In addition to complaints of the financial and emotional cost of attempting to deal with the city, residents question the cost to taxpayers for sweetheart deals to favored developers.

In 2010, Arroyo Grande was dealing with a deficit. The city council was looking at cutting money from after-school programs and reducing the budget for police.

The council then voted to buy the former Farm Credit building from Tompkins to use as City Hall. The $2,020,000 purchase price was almost twice the market value for the building. The council paid about $1 million too much to Tompkins, local appraisers said.

 

Arroyo Grande Ordinance 2.08.080, administrative relationships:

The council and its members shall deal with the administrative service of the city only through the city manager, except for the purposes of inquiry, and neither the council, nor any member thereof, shall give orders to any officer or employee of the city under the supervision of the city manager. The city manager shall take his or her orders and instructions only from the council as a body, and no individual member of the council shall give any order or instruction to the city manager. Any subordinate officer or employee receiving orders or instructions contrary to the provisions of this section shall report the same in writing immediately thereafter to the city manager, and the city manager shall promptly forward a copy or summary of such report to each member of the council. He or she shall likewise promptly advise each member of the council of any order or instruction received by him or her contrary to the provisions of this section. It is not intended by the provisions of this section to restrict unduly the privileges of a member of the council to request the city manager, but not any other officer or employee under his or her supervision, to prepare a report dealing with any matter of city business, or municipal affairs generally, if such report can be compiled without the undue dislocation of city activities and without the expenditure of considerable quantities of time by city personnel.

 

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agag1

DaddyO–

You claim Jim was drafted to run for Mayor as if to insinuate that someone who is drafted serves with less honor and distinction.

Obviously you have never served in the military.

Those who serve, drafted or otherwise, deserve our respect, UNLESS they bring dishonor to themselves, their rank or office.

Ferrara has clearly embarrassed himself and our city with his backhanded abuse of power, and unethical behavior. We are only beginning to learn the extent of his devious ways.

We are long overdue for a change, and the fact that Jim Hill has come forward as a write-in candidate with a longshot (at best) chance of winning is to be admired, not mocked.

He was not drafted, he volunteered when approached by citizens who knew of Ferrara’s doings long before they became public.

He is clear on his respect and support for our police officers, unlike Mayor Ferrara and City Manager Adams.

He is opposed to the Charter City, as is Barbara Harmon, who says she is opposing it as well.

AND he has the support of many businesses and residents alike, based on the yellow signs throughout town.

The Mayor claims we are just a small fringe group, I couldn’t disagree more. It appears there are a lot of folks willing to stand with Jim Hill.


Write-In Jim Hill for Mayor, fill in the bubble. Vote for a fresh start!


AAADADDYO

agree with most of what you said but again dont assume

my dad was drafted wound twice in world wae II with honor.

why didnt his campaign manager run? just curious


agag1

No clue, ask him yourself.

Just sayin’.


agag1

And we of course are grateful to your Dad for his service to our Country.


agag1

Yesterday on Dave Congalton’s show, Barbara Harmon stated she has changed her position on the AG Charter City initiative.

Previously she was in favor, now she OPPOSES it.


falconbh

A positive step in the right direction on Charter City vote.


I hope we can make some progress towards a new balanced budget, eliminate the Sales Tax Extension, and provide some checks and balances to the Automatic Rate Increases we receive each year.


agag1

I’d be willing to bet that under new leadership a lot of the $$$$ the city currently pays as party favors to it’s officials’ friends would go a long way.


Imagine if we could eliminate the lawsuits that plague AG?


Write-In Jim Hill for Mayor!


doglover

Way to go Barbara! There is WAY TOO MUCH for this Council to deal with


And they thought the malt shop, Ed Arnold, and Wal Mart were tough! Ha!


They will need to hire a facilitator to plan strategically how to fix the city. The POLICE are still working with a VOTE of NO CONFIDENCE, the employees are distraught, the Planning Director will probably bring a whopper of a lawsuit along with others.


THIS CITY is in CRISIS and our MAYOR is the PRESIDENT of the CALIFORNIA LEAGUE of CITIES. How ironic!


Mr. MAYOR

You and only YOU have the POWER to do something about this RIGHT NOW!!

Accept Adams resignation immediately. Bring in some help for our employees, and APOLOGIZE to the PEOPLE. SHOW us that YOU can do something POSITIVE to put this to an END.


EVERY STEP YOU MAKE you DEMONSTRATE how little consideration you have for the COMMUNITY. YOU have WIELDED such a HEAVY HAND that it is remarkably easy to open the conversation with people about how the MAYOR is not friendly.


Be a leader. Step up to the plate and effect positive CHANGE!

Resign Now and take Adams with you.


MaryMalone

Sometimes the political wind blows in the right direction, and sometimes in the wrong direction. Then sometimes it just blows.


Good news about Harmon but, really, this close to the election it is hard to take seriously.


agag1

If you have questions for Jim, or would simply like to speak to him,

you can reach him at home @ 481-5654.

He is working the PG&E outage now,

but will return each and every message in the evening.


SamLouis

Does anyone here know what percent of AG voters voted via absentee ballot during the last election?


obispan

Two trucks, a backhoe and three guys for $196? Damn. Can I “hire” AG’s public works to do some work at my house?


obispan

Alternately, I would be happy with the City of AG buying my house at twice it’s appraised value.


dogeatdog

What was the back hoe for? I could have cut down that damn tree with box cutter.


And you are right no tree company would have done that work for that little bit of money.


agag1

Impossible to send a three man crew and three pieces if equipment for $196.

Worker’s comp insurance, liability insurance, auto insurance, payroll, fuel…

$196 would pay for a guy on a bike with an axe.


surferdude

Sorry cannot even get your carpets cleaned for that amount!


agag1

Tony is a big guy…that is a very little tree,

surprised he couldn’t handle it.


Joe Bob

He could huff and puff and blow the tree down.


MaryMalone

Good point.


I never knew living in AG carried such services.


I think I am going to call Public Works and schedule their low-cost tree removals and television relocation services.


I think other residents might want to take advantage of this great program. Spread the word!


Pelican1

Tony addressing the public…

” Ladies and gentlemen, I’ll be brief. The issue here is not whether we broke a few rules, or took a few liberties with one of our female city officials—we did. [winks at Steve] But you can’t hold a whole city council responsible for the behavior of a few, sick perverted individuals. For if you do, then shouldn’t we blame the whole city? And if the whole city is guilty, then isn’t this an indictment of our county in general? I put it to you, isn’t this an indictment of our entire American society? Well, you can do what you you want to us, but we’re not going to sit here and listen to you badmouth the United States of America.”

Tony marches out with Steve, Teresa, and his cronies in tow…..


agag1

With all due respect Pelican,

Tony, and “I’ll be brief” in the same sentence?

Did you hear his nearly 30 minute explanation for the tree incident? When I saw the tree photo, I laughed. The trees are overtaking him???

Did anyone else attend the meeting where the poor guy was trying to get permission to remove a tree that almost covered his entire front yard?

Now, THAT was a tree that was overtaking someone’s property. Makes Tony’s little tree in his hell strip look like the joke it was!

He took more time to explain all about his almost critical stage incident than it would have taken to deal with the damn tree in the first place.

And I mean taken ONE person to deal with the tree, NOT three city workers…unbelievable!

Is he really such a helpless man?


SLOBIRD

And let us not forgot moving the TV from in the house to the garage. Just call the serfs!


Pelican1

LOL…that’s part of my subtle approach to lampooning such a buffoon. You are very astute in your observation.


SadInsider

Joe Costello seems like a nice enough guy, but my concern with him is how he has been aligned with Ferrara on darn near every issue over the years. That’s a big part of the problem.


Tim Brown appears to still question some things from time to time, and reading between the lines even though he really liked Steve Adams, it is widely believed he wanted the City Hall incident to be handled differently.


Also I believe at one of the candidate forums Harmon and Brown both said the City Hall incident should have been handled differently, and Costello said he still believed it had been handled correctly. Pretty sure that’s accurate info, so it kind of answers your question, if one is voting primarily with the City Hall incident in mind regarding the candidates.


dogeatdog

I don’t think Brown is as squeaky clean as he wants everyone to believe. I think Tim thinks very little of the people who are exposing Tony, and has some very nasty things to say about them.


I have heard Tim likes to keep women in line, ask his ex.


I think if Tim really thought things should have been investigated, he would have spoken up at ever council meeting about it. He should have made a mark in the sand and held his ground, but he did not do that.


Tim can blame the other council members as always voting against him, but he should have been able to vote the way he really felt and not worried about what others would think.



We have a weak city council and that includes Tim Brown,IMHO


surferdude

Sad insider

You are insightful.


Two candidates have to win. I ‘ll vote for Brown. Costello has never broken ranks from Ferrara. They been at it too long.

I do not see where Old Joe really cares anymore.

Harmon has this wrapped up!


agag1

Was very glad to hear Barbara explain why she now opposes the Charter initiative.

Was concerned when she said Steve Adams had resigned.

HE HAS NOT, not until the council accepts his resignation,

and if Ferraro is re-elected that WILL NOT happen.

Barbara stated Adams should have been placed on admin leave pending an investigation.

Clearly she has more understanding of HR policies than the current council,

Mayor,

and City Attorney

COMBINED!


agag1

My decision on who to vote for Mayor is set.


Can anyone tell me why I should vote for Joe Costello?


Does anyone have a good reason to vote for Tim Brown?


Babs is a shoe-in.


kayaknut

Sorry, I do not know a single reason to vote for Mr. Costello or Mr. Brown, they both contributed too much to the cover up or either did not speak up loudly.


SadInsider

Absolutely agree kayaknut, but there are going to be two out of the three candidates elected this election cycle. So outside of Harmon the issue facing voters basically becomes, which of the remaining two candidates is best (less worse) for our City?


Their individual vote totals may be lower, but one of the two is going to get elected whether we like it or not.


kayaknut

Unfortunate but true.


agag1

UGH!


MaryMalone

I agree. I have also lost a lot of respect for Jim Guthrie.


agag1

Agreed Mary, he could have come out strong on this, especially since he’s not up for re-election this cycle. He’s done nothing to impress me, and I will remember that the next time he’s on the ballot.


MaryMalone

Bingo!


DennySLO

Tony may want to re-read the commitment the League of California Cities made regarding the City of Bell!


http://www.cacities.org/Top/News/News-Articles/2013/October/League-of-California-Cities-Reinforces-Commitment


surferdude

Ouch! Has anyone contacted the League to see if they are watching this?

Ferrara best days are over folks. Time to usher in the age of transparency and equality.


This Council must ACT now and accept Ferrara’s and Adams resignation.