1999 AGN JAN 05 PET EXH 1 - Laserfiche WebLink

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June 30, 1997, Re: cart of Possi 1P rnntl;e-t nf Interest Law Violation Dear Mr. McCormick: I It was delightful speaking with you this morning regarding events here in Colton.:. Enclosed is a copy of the investigative report prepared in connection with the City's waste hauling franchise agreement with Taormina Industries, Inc. As we discussed,: this investigation resulted from an apparent attempt by Taormina to push through wide -scale revisions to its contract that were not in the best interests of the City. As a result of this effort, the City Manager, Malik Freeman, was terminated by the City Council and the Assistant City Manager was suspended and demoted. The report potentially implicates several members and former members of the Colton City Council in what may have been conflict of interest situations. The story that unfolds in the report goes something like this: I. In late 1995, after the appointment of Nabar Martinez in late 1994 as City Manager, the City at Martinez's direction began moving toward privatization of its refuse hauling operation. Martinez came to the City through a recruitment process that appeared to be above board, but, the Council had been urged to consider him for the interim position after the death of , the former City Manager as early as April of 1994 by Councilmember Beltran, BEFORE any formal recruitment had occurred. It was well known that appointment of Martinez was being promoted by Gil Lara, a local lobbyist for refuse hauling interests. 2. Under the direction of Martinez, the City went through several steps to determine whether privatization of refuse hauling was in the best interests of the City. In 1991, the City had given notice to all refuse haulers, that they would be terminated as provided by law within five years with the intent that the City itself would take over all refuse hauling as a potentially profitable enterprize. The change in direction under Martinez reflected the he political changes that occurred in the 1994 election when former Mayor Gonzales lost to Mayor George Pulp. /"V"NEM CMC CENTER 65D N. LA CADENA 0 . ONE COLION. CAjJFCMLA W24 (900)370 -SM -,:-- (909) 370-51.54:FAX �'i