- As this process moves forward to a vote by the people of Vernon we have to explain the why, how and when of the change. The why is explained with the following history of government in Vernon which we give as reasons for the change. As many of you know the government of Vernon has a long history of not representing the majority of the residents. Government in Vernon is practiced for the benefit of an inner circle that controls the election process. Control of the process insulates the candidates and town professionals from moral hazard. We use the following definition for moral hazard
"Moral hazard is the prospect that a party insulated from risk may behave differently from the way it would behave if it were fully exposed to the risk. Moral hazard arises because an individual or institution does not bear the full consequences of its actions, and therefore has a tendency to act less carefully than it otherwise would, leaving another party to bear some responsibility for the consequences of those actions."
- Brief Note
- Reason Number 2
1.2 Million is cost overruns for the town center project? Yes folks that’s 1.2 million that the people in charge didn’t even know that, the 1.2 Million tax payer dollars was missing.
The cost for the Town Center is 13 Million, 8 Million for the town road and 5 Million for the sewers and water pipes. Yes the politicians and their professionals told you it would be Free paid for by grants from State, County and Federal governments.
- Reason Number 3
Yes the town overspent on the town center project and initially both council and its professionals could not say how much was spent to date. The first estimate was in the 10 million range which was later revised to 12 million. The actual number is 13 million spent to date on a project that was supposed to be free. It was not the cost overruns of 1.2 million nor the manager hiring relatives to work for the township. Nor was the fact the manger was having an affair with his executive assistant that propelled the manager to flee. The manager only problem was the falsification of travel vouchers, conference vouchers ect to the tune of $12,000. that got him into trouble. He then took a powder to Belgium without his executive assistant or his wife.
During all of this, the absence of even a preliminary budget for a major project, cost overruns, numerous conferences attended ect , the council remained blissfully unaware of anything. Yes they were a stellar lot those council persons, manager and various town professionals.
- Reason Number 4
So far the town has spent 13 million on the town center, guaranteed 13 million in sewer bonds for Intrawest, guaranteed 1.2 million in annual payments to the SCMUA, and is proposing to spend another 2.5 million for drinking water in the town center. Future plans for the town center include moving the DPW, recycling, animal shelter, town hall and the Fire Department. All of this was done without even a preliminary budget representing the various costs of the actions or how to pay for them. Nor was a cost benefit analysis of the project done so no one can tell you when this project will pay for itself. No company or business would take these actions but the councils and managers of Vernon have.
- Reason Number 5
“Our audit found the city had almost no accounting controls, no checks or balances, and the general fund was run like a petty cash drawer," state Controller John Chiang said in a statement. "The city's purse strings were tied to only one individual, resulting in a perfect breeding ground for fraudulent, wasteful spending." Yes the poster child for the Manger Council form of government is Bell, California. Fortunately we are not that bad but we did spend 1 million in consulting fees for the our Town Center. We like Bell also hide consulting fees by taking monies from escrow accounts to mask how much consultants are paid.
http://www.aolnews.com/nation/article/residents-of-bell-california-cheer-arrests-in-corruption-scandal/19643907
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