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Central Basin Water District
| The Editor, WatchOurCity.com, February 10, 2009 Central Basin Water District: Part II: And you thought your water was clean The Tap Flows For George Cole at Central Basin Water District This report is a follow up of a previous WatchOurCity.com post titled "And You Thought Your Water Was Clean" first posted on January 4, 2007. Curious pattern with George Cole. He resigns from the Central Basin Water District, yet still maintains control of the millions of dollars flowing to his Oldtimers Foundation by appointing an employee of his working at the Oldtimers Foundation to replace him on the board. George resigns from Bell city council, yet still maintains control of the millions of dollars and elections in city hall. In January 2007 Olga Gonsalez, Division 4 Director at the Central Basin Water District, resigned under pressure from George Cole, also a then-director of the District, who threatened to go to his good friend, District Attorney Steve Cooley, and report her for not living in the District, as required by the elected post. In order to prevent a scandalous investigation and conviction, Olga resigns the post immediately (see board meeting minutes 12/19/2006). George Cole quickly puts on his thinking cap and convinces the rest of his fellow board members in voting to replace Ms. Gonsalez with Rudy Montalvo. The Oldtimers Foundation, is a non-profit entity run by George Cole. And Rudy Montalvo happens to be a paid employee of the Oldtimers Foundation. Rudy has a reputation that precedes him: He is known for threatening anyone who even thinks of challenging George Cole's city council seat in the city of Bell. According to meeting minutes of the Central Basin Municipal Water District board on Jan 3, 2007, George Cole makes the motion to nominate his buddy and employee Rudy Montalvo to fill the vacancy left by Olga Gonsalez (see communications committee meeting minutes Jan 3, 2007). At play are hundreds of thousands of dollars in contracts to the Oldtimers Foundation. The big payola came at Montalvo’s first meeting of the Central Basin Municipal Water District, where he voted in favor of making two payments of $122,553.63 and $121,287.59, respectively, to the Oldtimers Foundation (see CBMWD Check # 70946). Montalvo eager to pay back his friend and boss for the appointment, seemingly fails to mention he is a paid employee at the Oldtimers Foundation and also fails to disclose his personal financial interest in the Oldtimers Foundation. According to California State law all members of public agencies must disclose their personal economic interest in entities doing business with the Agency. In the meantime, former Board member Olga Gonzalez then threatens to go public with accusations about George Cole’s illegal activities which include voting to give contracts to his organization, the Oldtimers Foundation, while he was on the board. In order to keep Ms. Olga Gonzalez quiet, the board agreed to hire her as a consultant at the rate of $7,000 per month (see CBMWD Checks #71078 and 70849). The "fees" paid to Olga are made to look like she worked out of a one-room maintenance facility in the Hollydale area of South Gate, right a couple of blocks from where Assemblyman Hector De La Torre lives. Little did Olga Gonzalez realize, in accepting a Faustian deal, she too is implicating herself in potential criminal activity because it is illegal for any former board member to work for the agency in which they serves as a board member until a year after they are no longer sitting on the board. Olga began receiving the $7,000 monthly payments less than a year from vacating her Water Board seat. Consequently, Central Basin Municipal Water District Board members, including George Cole's employee Rudy Montalvo, continue to approve numerous payments totaling over $1.3 million dollars of taxpayer money in the form of “consulting fees” to the Oldtimers Foundation. George Cole forgets to tell Rudy Montalvo to excuse himself from voting because of his conflict of interest. In February 2008, Director’s vote to give themselves a pay raise of 3.3%, all the while water rates for customers continue to increase (See agenda meeting minutes 2/26/08). According to the Board records, one peculiar warrant payment sticks out like so many other sore thumbs. A recurring "consulting" fee totaling $11,000 per month is paid to "The Calderon Group". This is a consultant business run by the brother of State senator Ron Calderon, who represents Montebello, Bell, Huntington Park and Maywood. The Calderon Group is registered with the State of California. When the editor called the office phone number listed on the State of California's website, Mr. Calderon himself answered. This was his cell number. No other office or fax number was listed; The Brother Calderon refused to answer any questions, other than to confirm that the only number listed is his cell phone. In previous reports, WatchOurCity.com has noted how George Cole conspired with John Noguez in Huntington Park to rig a bid winning a $4 million dollar transportation contract. Somehow, George Cole, while a board member of the Central Basin Water Board, managed to get a contract worth $700,000 per year to distribute low-flush toilets. And while a sitting board member, managed to extend the contract by one more year, year after year. But nobody's watching. So who cares, right? Following is a listing of payments made to the Oldtimers Foundation: Warrant Check # Amounts *71249 $2, 930.00 and $32,650.00 *71470 $1,230.00 and $8,325.00 *72356 $329,946..29 and $330.00 and $7,650.00 *72436 $108,621 and $493.00 and $11,600, *72495 $2,805.00 and $13,250.00 *72664 $3,775,000 and $10,825.00 *72712 $113,267..00 and $1,000 *72785 $1,000 *72850 $19,500 and $6,350.00 *73054 $10,375.00 and $1,355.00 *73240 $17,875.00 and $1,415.00 *73306 $20,900.00 and $1,255.00 *7344 $2,500 *73539 $6,475.00 and $660.00 *73563 $387.59 *73804 $9,750.00 and $4,216.19 * This information can be verified on the Central Basin Municipal Water District Website by clicking on to Board Meeting Agendas under the section financial reports CBMWD Demands. These checks were approved at board meeting starting in Jan 2007 to present _______________________________________________________________________ |
George
Cole wants
you to shut
your tap but
keep his
flowing at
the Central
Basin Water
District
Cole wants
you to shut
your tap but
keep his
flowing at
the Central
Basin Water
District
| Municipal Water Districts - Corruption Watch Central Basin Municipal Water District Part I: And You Thought Your Water Was Clean The Editor, WatchOurCity.com January 7, 2007 George Cole and corruption in the Central Basin Municipal Water District: Dirty tricks, lucrative $700,000 contract to George Cole's Oldtimers Foundation and other conflicts of interest. |