Committee formed to study controversial PUSD bonds
By Steve Dreyer
A new committee comprised of experts in the fields of finance and business is meeting in private to determine what, if anything, can be done about the controversial Poway Unified School District capital appreciation bonds.
Calling themselves the “Bond Review Committee,” the seven-member panel was organized last month by former PUSD trustee Jeff Mangum, now a candidate for the Poway City Council. It first met on Sept. 19 and will hold its second meeting next week.
The committee will study all aspects of the district’s bond and plans to explore other aspects of the school renovation program, Mangum said. Possible mitigation measures will be explored as well, he said.
A full report, either written, oral or both, will be presented to the school board but not before the Nov. 6 general election, he said.
“It (the committee) can’t help me but it can help the district and the community.”
Mangum served 16 years on the school board until stepping down in 2010. His participation in the board’s October 2007 decision to place a second round of school construction bonds on the February 2008 ballot has been criticized by some in the community, including supporters of other Poway City Council candidates.
The names of the committee members are being withheld until the report’s release, he said, to remove politics from the equation. Panel members include “two financial guys,” someone with expertise in school administration, a local elected official and several business people. The committee has already spoken to “a bond guru not in area who is well aware of (PUSD) bond issue and is a little bit of a reformer in bond industry.”
“From the center of my heart, this is not intended to be a political whitewash,” Mangum said. “We really have to come to understand something that is a web of maddening complex issues.”
Mangum said at least a couple of the members are going into the process clearly upset with the school district’s use of the capital improvement bonds, which will earn interest for 20 years before the first payment is made. The $105 million in “Series B” capital appreciation bonds will cost non-Mello-Roos district taxpayers $1 billion by the time they are paid off in 40 years.
“I can tell you that a couple of these folks are vocally critical that the bond payoff is 9-to-1,” Mangum said.
Panel members were suggested by various community members, he said.
Related posts:
- Proposed legislation would limit future school bonds
- PUSD releases statement on school bonds
- PUSD hires forensic accountant to review bonds
- Council to consider refinancing City Hall bonds
- Editorial: Road to success, or Armageddon?
Short URL: http://www.pomeradonews.com/?p=29099
Posted by Steve Dreyer
on Oct 2 2012. Filed under Local News, Poway, Uncategorized.
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Are you kidding me? Let's get the people that had anything to do with this bond in the first place, out of the picture completely!!!! Just when you think things can't get any worse with this bond! When will these people learn? Lets get serious folks! Bring in people we can trust to try & fix this IF IT CAN BE FIXED.
Why don't you just admit that there is *nothing* that Jeff Mangum could say or do that you people wouldn't criticize? He's trying to help, and all you can do is criticize. Disgusting.
The committee is made up of an assortment of people, people unrelated to the bond, and people who have been vocally critical of it. What more do you want? Mangum to not be involved? He's the only one who actually stepped up to do something like this. I applaud him.
You know what? Sign your name. The whole part about the committee meeting is private is hugely suspect. The fact that you can "applaud" the illegal activity of anyone on the PUSD board is vulgar, Mangum included.
I am far from being the only one here not signing my name, so don't just single me out. And not once did I ever say anything about applauding "illegal" activity. Don't put words in my mouth.
JOHN
Ah John. Here's the deal. The arsonist as someone else wrote doesn't get to be the fire chief. The fact that you continue to defend this financial Fubar is a strong indicator of your inability to grasp reality. Mangum is not a bad guy. He and the ENTIRE Board experience a huge lapse of judgment and therefore, need to never be elected to anything ever again..
Let me see if I got this right. A few years ago the PUSD needed money to fix our schools. Now they needed this money because they were out of THEIR budget money…over-spent or whatever. They put a bond up for vote for A LOT OF MONEY…A HUGH AMOUNT OF MONEY and they get their (read OUR) money but THEY spend ALL of that too sooooooo they throw another bond up for MORE of OUR money, do a little sleight-of-hand with the facts and get THAT money…BUT they have made a deal with the Devil and NOW WE have to pay back a BILLION DOLLARS…NOT THEM, US AND OUR KIDS. Now in 20 years…when they're all gone…we're gonna need MORE money because the schools are gonna be run down again…and where do they intend to get that money? Have I got this right? And you would consider one of the guys that did this for another office?
Thanks for your time.
@ "oh, come on" would you vote for the bond again? Same bond, same terms? I would hope not and remember that the Crocodile was only trying to help you cross the river…before he ate you.
Only "a couple" of the committee members are upset about the 9-1 ratio? You've got to be kidding me. Who are the REST of the committee members–complete idiots? And this isn't political–oh give me a break. WHO appointed all these people? Let's see – Mangum, whose neck is on the line, or school board members who are under enormous suspicion. But don't worry, I'm sure they have our best interests at heart. You're right, we will continue to question anything with these people's fingers on it–Mangum included. There's just too much vested self interest at stake to think otherwise.
And the participants are being kept secret? There we go again. NO transparency. NO openness. Behind closed doors. Am I missing anything? Guess they still don't trust the people to be involved. Let them take care of us . . . right.
Mangum as well as all the others on the board Failed us when they passed this bond. The others who were a part of this don't have as much at stake, none of them are running for City Council. Right now his name is pointed out the most because this community is trying to prevent any of those involved with the bond back in a position to make bigger mistakes that we all pay for. So allowing him back in to make decisions on our behalf is a huge mistake we would be repeating. "Fool us once, shame on you, Fool us twice, shame on us!
You applaud Mangum? Are you kidding? Mangum leading a committee to see if they can "fix" this mess is like appointing an arsonist to be fire chief.
The fact that the members are meeting in secret and will not divulge their identities is highly suspect. What are they trying to hide? Do they really think the voters of Poway aren't going to believe this is completely political? There is absolutely something Mangum could have done. He and Vanderveen could have stopped the motion in OCTOBER, 2010 (not November) to proceed with the Series B and Vandeveen shouldn't have seconded it. The full details were in the resolution to proceed. Do you really think that Mangum's "committee" is somehow going to magically come up with new documentation or ideas that bigger, smarter financial experts haven't already dug through? Or are they meeting in secret with their identities hidden because once again, there will be an attempt to deceive and cover up the fraud perpetrated on our community?
I am just stunned at the audacity of Mangum and his group, not to mention the Chieftain's blatant errors and misrepresentation. Who vetted this thing? All I can do is just sit here with slack jawed to think of the level of arrogance Mangum possesses to think anyone with any level of intelligence in going to buy into his "committee." Honestly?
I have read the reams of paper on these bond issues. I, too, have consulted with financial experts and legal experts on these bonds. As a matter of fact the list of people who have studied what the District did is an impressive list and far higher up the food chain than I am. Before I stepped in front of the camera on Fox News, I made sure I had my facts correct and realized as I studied the issue the Board acted illegally and violated the pubic trust on an epic scale.
So once again, my question becomes does Mangum and his "committee" truly believe the voters are naive or just irretrieveably stupid to think that he can fix the diaster he was party too? I'm betting he thinks we're all that and then some.
“We really have to come to understand something that is a web of maddening complex issues.” (Mangum quote)
Really? Maybe you should have thought about that when you were creating this mess.
"From the center of my heart, this is not intended to be a political whitewash." Baloney.
I believe this is called a Kitchen CABinet.
Please correct the article title: It should read "Panel to Review" not "Committee to Review." The actual hard copy of the paper says "Panel." Either way, the implication in using the terms "panel" and "committee" is that somehow this an actual city or district sanctioned committee with some authority. They don't. This is a group of secret squirrels sitting around a table hoping to fix a couple careers.
Shame on mangum.
This "newspaper" published a statement from mangum that reads in part, "I understand the public’s anger, but propose that we focus this energy in a positive way and work together to find solutions."
Apparently, the "we" in this statement does not include the public, but mangum's "save me" friends. His definition of "we" lacks merit.
Apparently, the "positive way" in the statement does include a secretive group of unnamed people meeting in secret with no real plan of action other than to meet and provide a "report to the school board," most likely also delivered in secret.
I have been chastised for 'not knowing' what a good man mangum is and what good things he has done for the community at large. All this verbiage only focuses my feelings that I do not want to know him nor the "center of his heart." It is time for mangum to hang his head in shame and go away.
Shame, Shame, Shame.
How very sad for the city of Poway that its residents are so uninformed and pigheaded. You point fingers at and place blame on the wrong people, all because the henchman of Steve Vaus and the suspiciously-anonymous "Thanks a Billion" Facebook page writers tell you to.
Instead of pronouncing "shame" and crucifying Jeff Mangum for a decision that was finalized when he was no longer on the school board, why don't you take a closer look at the facts? If you really cared about what was best for Poway, and not about throwing a tantrum because the economy, the world, and the people in it aren't perfect, that's what you would do. You would do your research. You would keep in mind that the economy sucks right now and realize that elected officials have to do the best they can with their limited knowledge of what the future will bring. They aren't omniscient, for crying out loud. You would join JOHN and applaud Mangum for actually trying to make things better.
But you haven't done any of that. Instead, you see Mangum's genuine attempts to make things better and tout it as a "political" move. Well, the only politics I see going on here are not Mangum's; they're yours. All of you are slinging so much mud that I can no longer tell the difference between Poway and Washington, DC. How horrible.
You wanted someone to blame, and the petty, vindictive opponents of Jeff Mangum have given you the perfect target. It's really too bad that you have no real ammunition–just hearsay, half-truths, and outright lies. Even worse is your inability to hear reason. You're like petulant four-year-olds.
DJ I'm sorry but you're the one who is painfully uninformed. Jeff Mangum was on the school board for the entire event – except for the actual July 2011 issuance. But at that point (2011) – everything had already been approved in October 2010 by Mangum himself! The deal terms were in the resolution. The Series A issued in 2009 is a 7 to 1 payoff with a 13% premium (Mangum approved that). The Series B which is the 9 to 1 with a $21 million premium and was approved in October 2010 by Mangum and seconded by Vanderveen. It was Mangum who in November 2010 sent the resolution off to the County to approve. His fingerprints are all over the bond deals. For the Series A and B, the District paid a higher interest rate in order to grab more cash. That cash grab was above what taxpayers voted for and that's what got the attorney general involved. To mitigate the damage, the District could have but didn't put in the call feature.
The documents are readily available and if you actually read them instead of just blindly following a political agenda you would understand this isn't about Vaus. This is about an egregious breach of the public trust.
Apparently Mangum is an evil mastermind…don't miss the sarcasm there!
Always trying to mislead and confuse with your "facts"…
Every time Clariece Tally writes about verifiable facts concerning mangum, those that do not want to review her work or at a minimum read for themselves go off the deep end of name through calling. Now that is petulant which is defined as contemptuous.
The national ignominy heaped upon the citizens of the school district, more specifically Poway, is embarrassing to us all. It would be a great deal more comforting to find that the thinking, expressed by DJ, is not reflective of the voters electing a city council member – whoever it may be. It is time register and vote responsibly as an “educated voter.“
"You point fingers at and place blame on the wrong people, all because the henchman of Steve Vaus and the suspiciously-anonymous…"?
How about "DJPoway", that seems "suspiciously-anonymous" to me.
Clariece, I know all the "facts" you're throwing out. It's the bare bones version of the situation, with none of the meat. It's a complete over-simplification. And all the cash the board "grabbed" went into building better schools. Oh, the horror! How dare they try to make our schools better! I attended those schools right before they were renovated, and let me tell you… they NEEDED that money. But I feel no need to argue with you point by point. The fact is that Mangum wasn't part of the final vote. He didn't make the final decision. He had so much less of a hand in this than you all make it seem.
Moving On, well said!
Babs, thanks for the vocab lesson. So helpful.
Joe, only an idiot lists his or her full name online for the whole world to see. That's just unsafe.
And to all of you, I have a heartfelt recommendation. Stop complaining. Stop placing blame–on anyone. That solves nothing. That gets us nowhere. Instead, start trying to fix things. This isn't the end of the world.
DJ I am limited to 250 words in this blog spot. that isn't meat over bones that's space constraints. I sign my name because I believe credibility is determined by facts and also by identity. the cash grab did not go to school construction it went to pay interest on past debt which is illegal. not my words but the law. It caused an increase in the interest rate and caused the bonds to exceed the amount voted on. You can accuse me of being a number of things but my facts are neither simplistic nor wrong.
Writing that, "mangum wasn't part of the final vote" is the non sequitur equivalent to "I didn't vote for the bond, but my neighbors did, therefore I'm not responsible."
The bond's appearance on the ballot was the result of mangum's groundwork including the manner in which it was placed – without full disclosure.
It is slightly correct to caution against blaming anyone, just as it is valid denying granting the opportunity to a fiscal malefactor any opportunity to repeat such conduct.
The only remaining question is, "What, exactly, are you doing to 'fix things'?"
DJ Poway aka "MANGUM" we are praying
you accept the things you cannot change,
courage to admit the things you were a part of,
and the wisdom to know it's time to walk away.
You & others involved with the bond are not
what Poway needs back at any point making decisions
Ha, ha, ha. That's really funny that you think DJ is Mangum. It is very apparent that you don't know Jeff Mangum. He has too much class and better things to do with his time — like working in a POSITIVE manner with the Bond Review Committee to address the issue.
Mangum's not doing anything positive because the only wait out of this mess is through the legal system. His committee has no authority and is nothing more than a CYA move. And FYI no one has said Mangum was lacking in class or is not a nice guy. He was party to a really bad decision that will haunt this city for years.
Ah, Ashley. I don't remember reading anything about this committee thinking that it has any authority over anything. It is trying "to determine what, if anything, can be done about the controversial Poway Unified School District capital appreciation bonds." It's investigating. And if this were a CYA move, as you maturely call it, then I think Mangum would be rushing to have results before the election. But he's not.
Sorry you don't the term "CYA." But it's accurate. The point you seem unable to grasp is that nothing short of a legal action such as a successful taxpayer lawsuit or the AG bringing an action on the illegal premiums, we can't undo what was done.
Positive?
As in "explicitly stated, stipulated, or expressed" vs. "names of the committee members are being withheld?"
Positive?
As in "disambiguous" vs. "We really have to come to understand something that is a web of maddening complex issues."
Where was the search for this understanding before mangum's and the board's vote in October 2010?
When the committee finishes and delivers the report to the school board, Humpty Dumpty can be the next client.
DJPoway, you must be new to these boards. Babs frequently provides us with wonderful vocab lessons. A couple of weeks ago she enlightened us on the meaning of the word apology.
Now Clariece, you wouldn't be the same Clariece Tally who is cited in a July 2010 NC Times article as being a Steve Vaus supporter, would you? The one who felt the need to remind the then-recently-elected John Mullins that 8,000 people didn't vote for him? The same Clariece Tally who is all over the elect Steve Vaus Facebook page? Oh, that is you? But surely if you were THAT Clariece Tally, you wouldn't then get up on Fox News and mention that the evil Jeff Mangum was running for City Council without failing to disclose that you are a long-time, very vocal supporter of Mangum's political opposition. And surely you wouldn't comment on every single PUSD bond article that might give you any further opportunity to criticize Mangum without making the same disclosure, right? Oh, you would? Hmm. I guess the bond committee isn't the only thing we're not getting full disclosure about, is it? And yet somehow they're the ones who are politically motivated and not you, right? Riiight.
I have consistently disclosed I am that same person. What's your point? That I support Vaus or that I write a lot? You support Mangum so your comments are politically motivated. However, if you're going to complete my resume for me you forgot I write an opinion column in another local publication. I have covered not only the bond issue, but Cunningham's excessive self-financing and Congressman Weiner’s little indiscretion. I have written about term limits and the redevelopment agency. I also wrote a Viewpoint a couple of years back about Boyack and Higginson.
All of this can be considered politically motivated. I will drag out the big guns on the big issues and I don't care who you are. I will always support the candidate that I feel best exemplifies this community and its high standards. Mangum and the entire Board made a huge error in judgment when putting out these bonds. Therefore, until there is a final resolution on the legality of the bonds and the premiums paid, Mangum should not be in any elected position. It is what it is.
I agree with the problem with WE and what that means to some people in power.
When a water project for Old Coach residents was completed the WE involved apparently decided not to advertise there were funds left over that by a contact were to be returned to residents. It took almost 12 years for those monies to be returned to residents and it was apparently only by accident the secret was revealed. At least a somehwhat happy ending for those folks. Not disclosing, meeting in secret and keeping secrets about finances not the way to go.