Friday, May. 09, 2008

Mayor able to vote on annexation

Fair Political Practices Commission says mayor can vote on 958-acre Ranchwood Homes project

The Fair Political Practices Commission has determined Mayor Tommy Jones has no conflict of interest stemming from loans he took from a building developer and their correlation to votes he may make in the future.

The FPPC issued an advice letter Tuesday stating $13,538 in loans Jones received from Ranchwood Homes owner Greg Hostetler in 2002 and 2003 will not constitute a violation of the Political Reform Act if he votes on the company's upcoming projects.

The document clears the way for Jones to vote on a 958 acre annexation proposal along Pioneer Road. Jones feels vindicated by the FPPC letter.

"It was like ludicrous, I don't have no conflict. I have no investment, I have nothing," Jones said. "That was from, not me; that's from the fair political practices."

Jones' lawyer, James Harrison, asked the FPPC for an opinion on whether Jones would have a conflict of interest because of the loans, which were paid off April 16, 2004.

Some critics have questioned whether Jones actually repaid the loans because public records indicated a discrepancy. The facts presented to the FPPC by Harrison address that issue.

"The settlement statement indicates that the recording fees for reconveyance of the deed of trust were paid on May 7, 2004, and a settlement statement was issued indicating that the repayment was complete. However, through a clerical error, the reconveyance of the deed of trust for one of the loans was not filed at the time the settlement statement was executed. Recently this oversight was discovered and the Merced County Recorder recorded the reconveyance March 19, 2008," the document states.

The FPPC opinion states, "The only potential economic interest you have identified is Mayor Jones' economic interest in the land development company as a source of income to him. Under the facts provided the loan was repaid in full in April 2004. Because more than 12 months have passed since the loan was repaid, neither the land development company nor the individual who is the sole owner of the company is considered a source of income to Mayor Jones. Accordingly, Mayor Jones does not have an economic interest in the individual or his company."

The advice letter did not address a violation of the Political Reform Act Jones appears to have made within a year's time of taking the loans. Although Jones was not in office when the loans were taken or when they were repaid, he was elected to the City Council within a year's time of his business relationship with Hostetler ending. As a public official, under the Political Reform Act he was required to disclose any loan more than $500 taken from a private individual within a 12-months period. Jones did not disclose the information. Also, Jones did not recuse his vote on a 2005 annexation application when he should have.

The FPPC did not mention the disclosure issue.

"The reason why that was not addressed in the letter is because we don't provide advice on past actions," said Roman Porter, the FPPC's communications director.

The FPPC can, however, assess $5,000 fines per Political Reform Act violation. The agency has received a complaint regarding Jones, Porter said, but he does not know at this time whether a fine will be issued.

It is unclear if the vote on the 2005 Ranchwood Homes annexation application can or will be overturned.

Jones said he does plan to vote on the upcoming Pioneer Road proposal.

"I'm going to vote," Jones said. "I don't know how I'm going to vote. I never know that (in advance)."