Joe Nelson and Sandra Emerson, Staff Writers
Posted: 02/10/2013 03:34:01 PM PST
Updated: 02/10/2013 10:57:13 PM PST
San Bernardino County’s lawsuit against Upland and two transportation agencies in which the county seeks to recoup a portion of a $102 million legal settlement could force Upland into bankruptcy court, City Manager Stephen Dunn said.
Dunn said the city has spent roughly $6 million from its general fund over the past nine years to defend itself in the litigation – money the city desperately needed. As a result, the city’s general fund reserves have dipped below $1 million in the last year, he said.
“Without a doubt, if we didn’t have this case, if the court had let us out of it or if it got resolved early on, we would be pretty well financially,” Dunn said.
The county filed its lawsuit against Upland, Caltrans and San Bernardino Associated Governments – the county’s transportation planning agency also known as SanBAG – in November 2004 in an effort to show they were partly liable for damages Rancho Cucamonga developer Jeff Burum claimed the county flood-control district caused to his 434-acre residential and retail development in Upland.
In November 2006, the county settled with the developer’s investor group, Colonies Partners LP, for $102 million. The settlement is now the focus of a broad conspiracy and bribery case in which prosecutors allege bribes were used to elicit the settlement in Colonies’ favor.
In March 2011, former Board of Supervisors Chairman Bill Postmus pleaded guilty to a conflict- of-interest charge and other felonies as part of a plea agreement. He admitted taking a bribe from Burum in exchange for his vote approving the settlement.
Burum denies any wrongdoing.
On Tuesday, San Diego Superior Court Judge Ronald Prager dismissed all of San Bernardino County’s damages claims, citing Postmus’ conviction, which he said was a clear violation of a state conflict-of-interest statute that forbids public officials from having a financial interest in contracts they make in their official capacity.
Prager based his decision on Postmus’ confession, the former supervisor’s subsequent grand jury testimony, and the county’s own admission in a news release after Postmus’ conviction that he broke the law when he voted to approve the settlement.
Prager did not go easy on the county in open court, calling the settlement “unconscionable, unlawful and sordid” and “the worst of the worst.” He questioned the county’s continued push to collect from the defendants on a legal settlement he said was voided in 2011 with Postmus’ guilty plea.
“It just seems to me fundamentally wrong that we’re going to perpetuate this case,” Prager said during proceedings.
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This is getting old. The city where I live is Upland. My city continues to spend-away millions (last time I checked the total was near 6 million) in legal fees. My sources tell me that Upland and/or San Antonio Water Company providing misleading data which resulted in expanding “the scope” and forcing the developer to install flood control improvements. Upland’s former Councilman Ken Willis remains defiant and has dodged testifying for years. The good old boys of Upland – Willis, Thomas, Musser should be forced to face the music in court and join their former mayor, now convicted felon Pomierski in Federal prison for what they have cost the residents of Upland over this litigation.
GMAFB:
I believe that Comment # 1 is identical to a comment you posted previously. If we wanted to read the same thing over and over again, we would read Joe Nelsons columns.
I recommend that you read Judge Warner’s Statement of Intended decision. A copy is available on this site.
My understanding from the ruling is that San Bernardino County tried to expand the scope of existing easements to force a private party to install improvements that should have been their responsibility. The private party fought back, successfully, and the county is now trying to spread the blame.
I do not see what role the City of Upland played; can you explain why you feel that they “provided misleading data,” and why they should be held liable?
The real corruption here is former City Attorney Bill Curley and his lawfirm that talked the Upland City Council into fighting the SB County lawsuit rather then settle for 2 million (which was set aside in escrow and saying the City would NEVER SPEND THAT MUCH IN LITIGATION) then the scumbags lawfirm bills Upland for more then 5 mill fighting SB County!!!Where is the outrage Bozar, Musser , Mitchell, Fillipi, Stone???????
Prager did not go easy on the county in open court, calling the settlement “unconscionable, unlawful and sordid” and “the worst of the worst.” He questioned the county’s continued push to collect from the defendants on a legal settlement he said was voided in 2011 with Postmus’ guilty plea.
How refreshing it is to see a judge free from Larson’s influence and Burum’s money. In fact, Prager’s comment is reminiscent of what the retired judge that signed off on the settlement said, “IF I had known then what I know now I would never had signed off on the settlement agreement”. At any rate, Upland should not worry, they have all that tax revenue coming in from the colonies development that can be used to pay their legal fees.
#2 You are correct. The comment is the same. The appraisers determined that the value of the site is significantly greater and the lost property to over-engineered basin resulted in lost $$ to developer. Read the depositions.
Wasn’t it really the former ASSESSOR-on-METH that has made the most problems for taxpayers, just like with the rest of the County, Upland is stuck with the BILL.
Anon… According to Upland officials, the 2 million dollar “draft” agreement was never part of the discussions. Ask for the agreement via public document request and there will be nothing. For the record, City Attorney Bill Curley was terminated – last year? According to my sources, Curley took his marching orders from Mayor Pomierski and Councilmember Ken Willis and the City Manager Dr. Robb “Robin” Quincey.
#4, Good point. Once a non-Redhill CC judge gets involved things start going the proper way. The Republican cabal is worried now, not even Larson with his contacts can save them now.
#3 – Musser (aka Barney as he is known to City Staff) and Mitchell are one in the same. Imagine the puppeteer played by (mitchell) and the wooden toy with large head (musser). Nothing comes out of Barney’s mouth without control of mitchell – which does not say a whole lot since Barney is so off topic.
#2 you wrote, “I do not see what role the City of Upland played; can you explain why you feel that they “provided misleading data,” and why they should be held liable?”
Consider this: With the diversion/drainage of H20 onto site of Colonies Partners, the City of Gracious Living would not only benefit by increased volume into their water supply, it was significantly less costly than constructing storm water channel on west side of town. Just ask the former Upland Councilman and self-proclaimed water expert Ken Willis. BTW, Willis has refused to testify to this day.