The expenses were charged to the General Fund and eight (8) other Special Funds. Although it is the duty of all elected and appointed officials to use exercise caution with the taxpayer dollars, the City has discretion to spend the General Fund as they choose. Special Funds are created for specific uses.
Gas Tax Fund ( 03 ) - This fund is an additional tax collected by the State to be used only for roads, alleys, & sidewalks. The General Ledgers shows that only two expenses are taken from this fund in the last two years - $80,000 in 'Administrative Overhead' and $370,000 paid to Urban Logic Consultants for 'Contract Overhead'. There is not one journal entry in the last two years that shows anything tangible was purchased with these funds.
Sewer Service (10) - There has been $2,237,000.00 attached to this fund in the last two years for Urban Logic Consultants.
CFD Fund (14) – This fund was created to monitor expenses and revenue from the City's Community Facilities District. Urban Logic Consultants have $1,665,000.00 attached to this fund in the last two years.
Mitigation Fees (35) – This fund was created to 'account for revenues levied on new development projects'. The 2012-2013 budget lists total expenses for the Mitigation Fees Department at $501,000. There has been $1,163,000 in fees paid to Urban Logic Consultants in the from 07/20/12 – 11/08/12 alone and a total of $8.6 Million paid to Urban Logic in the last two years.
RDA Funds (36) (38) - $383,000.00 was coded to these two funds from August, 2010 through November, 2011.
Urban Logic Consultants website shows a template with no listing of employees or references. http://www.urbanlogicgroup.com. The website lists their office location at 43517 Ridge Park Drive, Suite 200, Temecula, CA 92590. I went to the location, but the offices are empty. I called the phone number listed on the website – (951) 676-1944, but instead of a receptionist answering with the greeting: “Urban Logic Consultants”, a man answered the phone with the greeting: “Public Works”.
There is no evidence that this company exists independently of the City of Beaumont. This company is listed as a private sector cooperation, but it has no office staff, their employees are receiving Health Care Benefits through the City, and most importantly; this company could not possibly be supplying the amount of services to justify the expenses charged.
Urban Logic and the City of Beaumont are intertwined which is a violation of California Code 87100 regulating conflict of interests in government entities.
City Officials are either using this money to pay off old debt, or they are putting the money in their pockets, but there are no consulting services provided by a private sector company called Urban Logic Consultants.