Grover Beach mayor accused of hiding assets
October 27, 2016
By JOSH FRIEDMAN
A local activist has filed a complaint with the California Fair Political Practices Commission alleging that Grover Beach Mayor John Shoals for years has failed to report personal financial interests, in violation of state law.
Just two months ago, the FPPC fined Shoals more than $1,000 for violating campaign finance reporting rules in regard to his 2014 run for mayor. Shoals is currently campaigning to retain his mayoral seat.
Activist Julie Tacker filed the complaint on Tuesday, two weeks in advance of election day. Tacker claims Shoals routinely filed economic interest statements late, or not at all, and concealed a property he owns in Santa Maria, as well as LLCs he controls.
“As a 14-year veteran of local politics, who works daily with other elected officials, Shoals should be held to a higher standard,” Tacker said in a statement to the media. “Instead, his behavior indicates that the rules don’t apply to him. I brought this forward now because I believe voters should be informed before they choose their next mayor.”
Political office holders in California must file statements of economic interest, or Form 700s, when they begin and end their service, as well as on an annual basis. Tacker’s complaint alleges Shoals committed 259 separate violations of the Political Reform Act, all of which pertain to Form 700.
Shoals failed to file 11 forms, and he filed 16 forms late, according to the complaint. One form was filed about two and a half years late.
In several instances, Shoals failed to report property he owns at 410 West Street in Santa Maria. Likewise, on several occasion, Shoals failed to disclose his involvement with West Street Partners, LLC and Santa Maria West Street, LLC. The latter LLC is registered as being a real estate development business.
Tacker states in the complaint that the crossover of government and professional roles in Shoals’ 30-year career, coupled with his other economic interests and failure to disclose his finances, raises questions about potential conflicts of interest.
“It is reasonably foreseeable that Mayor Shoals in his capacity as a board member of 17 different agencies would be in a position to financially affect the outcome of decisions related to undisclosed property and limited liability corporations,” Tacker wrote. “It is reasonably foreseeable that there could be financial effect from decisions made as a board member of each of the agency boards he served and serves on related to his undisclosed real estate holdings and LLCs.”
Shoals has been involved in local government for years both professionally and as an elected representative. In addition to serving as mayor, Shoals currently works as a government relations representative for PG&E. He previously served on the Grover Beach City Council for 10 years, including two terms as the city’s directly elected mayor.
His previous professional work included stints as a city planner in San Luis Obispo, Atascadero and Santa Maria. Shoals also started JP Shoals Associates, which he said provides planning services to local agencies and project management services to private landowners.
Shoals’ positions with the city of Grover Beach and PG&E have landed him seats on numerous local and regional boards, as well as involvement with the California League of Cities. Some of Shoals’ positions include involvement with the city of Santa Maria.
Shoals’ 2014 mayoral campaign was the subject of an FPPC complaint filed earlier this year by activist Kevin Rice. Rice’s complaint alleged Shoals improperly reported more than half of the $20,712 he raised in total contributions during the 2014 campaign.
On Aug. 18, the FPPC ruled Shoals failed to submit five 24-hour reports for contributions to his 2014 mayoral campaign that exceeded $1,000 each. California law requires candidates to file reports within 24 hours when they receive contributions of $1,000 or more within 90 days of an election. The FPPC fined Shoals $1,101, but said it found no evidence of intent to conceal contributions.
Rice alleged Shoals’ failure to disclose his campaign finances swayed the outcome of the 2014 election, in which Shoals defeated then-incumbent Grover Beach mayor Debbie Peterson.
This year, Peterson is running for a city council seat. Shoals is now running against Ronald Arnoldsen, who is also a former Grover Beach mayor and councilman.
In her complaint to the FPPC, Tacker asks the state agency to take enforcement action against Shoals in a manner “so that all other existing and future public officials within San Luis Obispo County may take notice.”
Shoals did not respond to a request for comment about Tacker’s complaint.
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