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San Bernardino hires city manager with experience in bankruptcies. Some were his own.

Home - by - February 27, 2013 - 08:15 America/New_York - 5 Comments

ABC

On the theory, perhaps, that it takes one to run one, the bankrupt city of San Bernardino, Calif., has hired as its new manager a man who twice has declared personal bankruptcy.

Allen J. Parker, 71, hired last week for the $221,000 post, first filed for bankruptcy in 1991, then filed again in 2011, Reuters reports, citing court documents. Court records also show that Parker and his wife, as a condition of discharging their debts, were required to take a course in personal financial management.

Parker declined to talk to ABC News but in an interview with the Press-Enterprise newspaper, says he made no secret of these facts and disclosed them at the time he was being interviewed for the city manager’s job.

The mayor’s office confirms that. The mayor’s chief of staff says neither the mayor nor the city council saw Parker’s bankruptcies as any reason not to hire him to run the financially-troubled city.

San Bernardino filed for Chapter 9 bankruptcy last August. Unlike other California cities that have gone bust, including Stockton, it has stopped making payments on its pension fund obligations, which amount to $1.7 million a month, according to the L.A. Times.

Calpers, the retirement fund for state workers, sued to try to force San Bernardino to keep making payments, arguing that to let the city off the hook would set a precedent that could encourage other bankrupt cities to do likewise, endangering the solvency of Calpers, which, as the largest pension fund in the nation, has 1.65 million members and $148.5 billion in investments.

A federal bankruptcy judge in December rebuffed Calpers’ efforts, according to the Times.

San Bernardino’s pension obligations, combined with high unemployment, a high foreclosure rate and a collapsing tax base, helped push the city into bankruptcy.

It has cut municipal services drastically. Reductions in the police force have brought a spike in violent crime.

City representatives say Parker was hired for his success at turning around other troubled cities. Reuters quotes Jim Morris, son of and chief of staff to Mayor Pat Morris, as saying the city looked carefully into what Parker had accomplished at other California cities he helped manage, including East Palo Alto, Half Moon Bay, Seal Beach and Compton. That record, Mayor Morris told the Press-Enterprise, showed Parker to be a man who had repeatedly proved himself.

more  http://abcnews.go.com/Business/bankrupt-san-bernardinos-manager-filed-bankruptcy/story?id=18592354

» 5 Comments

  1. Maudie N Mandeville

    February 27th, 2013

    Like shooting fish in a barrel:

    September 5, 2012 |  2:42 pm

    Rating agency Standard & Poor’s announced Wednesday that it has suspended its ratings on the city of Compton’s bonds, as the city has yet to get an audit firm to sign off on its financial statements from last year.

    The city has struggled with a massive general fund budget deficit and cash-flow problems that have made it late on paying its bills, and earlier this summer, City Treasurer Douglas Sanders told the council that they might need to look at bankruptcy as an option.

    http://latimesblogs.latimes.com/lanow/2012/09/compton-bond-ratings-suspended.html

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  2. thirdtwin

    February 27th, 2013

    I would be interested to see exactly what he did for East Palo Alto, Half Moon Bay, Seal Beach and Compton. I notice he left Banning Heights off of his list of Solvent Cities Created or Saved. Hmmm…

    “Banning Heights is a tiny unincorporated community 85 miles east of Los Angeles. The water company was formed in 1913 to provide water and today it serves about 250 residents.

    Despite its small size, the water rights and land upon which the community sits are worth millions of dollars, according to John McClendon, the water board’s general counsel. At one point under Parker’s tenure on the water board, an entity called The Tahiti Group had placed $7 million in an escrow account to purchase the company, according to correspondence attached to court filings.

    Court filings in the 2009 lawsuit, and a subsequent separate lawsuit brought by the water company allege that Parker, along with others, used their position on the board to try to sell the water company, against the wishes of shareholders.”

    http://www.reuters.com/article/2013/02/22/us-usa-debt-sanbernardino-idUSBRE91L0UO20130222

    As usual, the foreign press digs deeper than our domesticated journo-stenographers.

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  3. Tim

    February 27th, 2013

    There has to be something seriously wrong with the Pacific Ocean to turn the entire Pacific Coast into a bunch of frikkin retards.

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  4. McFartus Spontaneous

    February 27th, 2013

    Anything south of the Ventura County line is a craphole anyways. I say they should use as many D13 Cat Dozers as they can, put the dozer blades next to each other, from the Pacific to the Nevada state line and just doz socal into Baja.

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  5. Pickled Liver

    February 27th, 2013

    At 71 he was hired as a City Manager? WTF?

    Don’t these bastards ever retire?

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