Grand Jury may investigate mysterious Livingston pipeline

Supervisor John Pedrozo disagrees. The county took action by prohibiting more work without filing the proper paperwork, he said. "If someone wants someone to file a grand jury investigation, more power to them" Pedrozo said. "The county has done everything we've been asked to do." Merced Sun-Star, Dec. 1, 2006
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12-1-06
Merced Sun-Star
Grand jury looking into Livingston pipe...Scott Jason
http://www.mercedsunstar.com/local/story/13069658p-13722975c.html
A sewer line installed by Ranchwood Homes earlier this year and challenged by environmental advocates could be the focus of a civil grand jury investigation, the foreman said. Adrian Vanderzyde, who heads the Merced County civil grand jury, said the charges are directed at the city and county. "There are a lot of issues (in the complaint)," Vanderzyde said, "but primarily it's an issue between development and ag land." The 16 jurors will decide Thursday if they'll investigate the complaint, which is the only new one submitted at the moment, he said. The identity of the person who filed the Nov. 16 complaint is being kept confidential. The potential for an investigation was lauded by one environmentalist who fought the sewer line, while city and county officials first learned of the complaint Thursday. In February, three environmental groups tried to halt the installation of a mile-long, 42-inch sewer line because they said the necessary reviews and paperwork had not been filed...pipe will be used for a possible subdivision by Ranchwood Homes on 420 acres...attention prompted the county to stop work on the project in February until state-mandated environmental reviews are completed...nothing else has happened with the project. The three groups -- the San Joaquin Raptor Wildlife Rescue Center, Protect Our Water and Planada Community Development Corp. -- said the city was wrong to allow the trenching because there was no environmental review and the land was out of their control... "We did not go beyond our boundary, and it was always in our legal right to do what we did," Assistant City Manager Vickie Lewis said. The project was a mile outside the city limit and fell within Livingston's influence... Bryant Owens, of the Planada Community Development Corp., said he was pleased to learn the grand jury may investigate and said the developer should be sanctioned for not doing any environmental reviews. "It seems to me that (owner Greg) Hostetler did everything to get it in the ground before it could be stopped,"... Supervisor John Pedrozo disagrees. The county took action by prohibiting more work without filing the proper paperwork, he said. "If someone wants someone to file a grand jury investigation, more power to them" Pedrozo said. "The county has done everything we've been asked to do."
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Supervisor Pedrozo's district has a skinny neck in one end of it. That pipeline runs right out of the Livingston sewer plant down that neck. Pedrozo held a dog-and-pony show with county and Livingston city staff and elected officials about the pipeline of Feb. 16, 2006. Prominent farmers not in on the deal, whose land lay in the path of the pipeline, were complaining. But Pedrozo shouted down people who told him that the pipeline was laid on county land and was county responsibility. The county issued a stop order on the project about the time of its completion. Big deal. County Counsel Ruben Castillo had somebody write a letter to Livingston outlining all the laws Livingston broke in "approving" the pipeline. Beyond issuing a stop order on the project around the day it was completed, the public is unaware of any other county "police action" taken to defend its land-use authority. It leads reasonable people to suppose a large bribe is being negotiated for the benefit of very few people.

Who is Robert Lewis, anyway, this gentleman from Las Vegas currently masquerading as a county planning director in Merced? Is he a competent California public servant, knowledgeable in state environmental law and regulation pertaining to development? Or is he the doorman for The Vegas-Merced Developer Casino? Whoever he is, he’s CEO Dee Tatum’s boy in planning.

These are the same guys about to bring you Riverside Motorsports Park, without the semblance of a credible traffic plan and without any public information about who the investors in the project are.

They have brought this county into a state of ill-repute. Government here has boiled down to a simple formula: who has what on whom? Sitting on top of this house of ill-repute is Rep. Dennis Cardoza, Himself-Merced. But, Cardoza won't dirty his hands with "local affairs," except maybe to bring back $25-$30 million a year in pork from the next Farm Bill to his district.

We challenge the Grand Jury to have the guts and sense of civic responsibility to investigate the corruption behind this sewer line, which passes through a large acreage owned by Michael Gallo. He is developing a subdivision, Yosemite Lakes Estates, close to the UC Merced campus. A large contributor to Cardoza, Gallo is also planning larger subdivisions in Stevinson, toward which Hostetler's pipeline points but does not yet reach. If the authorities don't make Hostetler dig up the pipeline, it will be ready to serve and extend to Stevinson in the next growth boom.

The Grand Jury was so scared of CEO Tatum, they whitewashed a Planada land-deal bribery charge against him without a semblance of coherent explanation. Faced with Hostetler and Gallo in full cry, reasonable people could anticipate that the Grand Jury would be reduced to jibbering idiocy -- if they even muster the spirit to take the case. We challenge it to do better this time.

Government in this county has lost its sense of civic self-respect. Since UC Merced arrived, this county has been nothing but a developer-owned house of graft, good laws broken, and scandals concealed. But, the housing boom has busted for awhile. Maybe some truth will out.

Bill Hatch
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Badlandsjournal.com, Feb. 7, 2006

Mysterious sewer line leaps out of Livingston

From:

Lydia Miller, President
San Joaquin Raptor/Wildlife Rescue Center
P.O. Box 778
Merced, CA 95341
(209) 723-9283, ph. & fax

Steve Burke
Protect Our Water (POW)
3105 Yorkshire Lane
Modesto, CA 95350
(209) 523-1391, ph. & fax

Bryant Owens
Planada Association and Planada Community Development Corporation
2683 South Plainsburg Road
Merced CA 95340-9550
(209) 769-0832

To:

Robert Lewis
Director of Planning and Economic Development
Merced County
2222 M Street
Merced CA 95340

Jon LeVan
Local Agency Formation Commission
Merced County
2222 M Street 2nd Floor
Merced CA 95340

Board of Supervisors
Merced County
2222 M Street 3rd Floor
Merced CA 95340

Brandon Friesen
Mayor
1416 C St.
Livingston, CA 95334

Monday, February 06, 2006

Ladies and Gentlemen:

It has come to our attention that the City of Livingston has authorized a private developer to install a 42 -inch sewer main connecting a 300 acre parcel along Magnolia Avenue near Westside Blvd, in a portion of unincorporated Merced County adjacent to but outside the SUDP of the City of Livingston.

This is clearly a ‘project’ under CEQA, and must be halted immediately and the City of Livingston must be enjoined and required to follow all the appropriate protocols for environmental review of a project of this nature. In addition we request and require the County of Merced Planning and Economic Development Department to assert its land use jurisdiction in this matter.

It is our understanding that the installation of these municipal services is a prelude to annexation of this 300-acre parcel into the City of Livingston. As such the entire project is premature and represents a clear violation of LAFCo of Merced County’s jurisdiction and statutory authority with regard to out of boundary service extensions in Merced County.

The City of Livingston’s mistaken authorization of this project has allowed grading and deep ripping on agricultural land in violation of the County of Merced’s Williamson Act Zoning.

The particular parcel must be removed from the Agricultural Preserve according to a prescribed process adopted by the County Board of Supervisors in 2000. This has not been done.

The City of Livingston has acted irresponsibly and precipitously in authorizing non agricultural land uses on land not properly under its legal jurisdiction: Livingston may not act as lead agency with regard to any aspect of this ‘project’ without providing the appropriate Notice of Exemption to the Governor’s Office of Planning and Research, The EPA at the federal level, the County and the Local Agency Formation Commission. No evidence exists that any such notice of exemption has been filed with any of the aforementioned agencies. If such notice has been approved at any level of the City of Livingston City Council level, these commentators challenge the validity of such notice and ask that it be invalidated.

Proceeding in the aforementioned manner places the City Council of Livingston in violation of California Government Code 65402 requiring mandatory referral of such a proposal to the county LAFCo, and the county Department of Planning and Economic Development. This has not been done. If this project is to proceed correctly, given the total acreage involved, such project would definitely qualify as a ‘major expansion’ of an SUDP. Such a designation automatically triggers the need for CEQA review and an EIR is mandatory. The City of Livingston has previously attempted to annex agricultural land by designating it as blighted. This tactic was rebuked by the County of Merced and eventually rescinded by the City of Livingston.

There is no evidence of any negotiations between the County of Merced and the City of Livingston regarding tax and revenue sharing agreement, and consequently there have been no noticed public meetings to discuss those agreements, in violation of state law, local ordinance, and Merced county’s current General Plan. The county of Merced is currently in the preliminary stages of updating its General Plan. The City of Livingston has not yet filed even a notice of preparation for expanding its SUDP. The proposed project is therefore premature in that the context for approving such a major expansion does not yet exist for either jurisdiction. There is no notice of preparation on file with the county or the state reflecting any such intention on the part of the City of Livingston. We therefore request that this project be stopped until such time as the appropriate land use authority can be determined and that jurisdiction be asserted.

The commentators’ request, under the California Public Records Act, to inspect any indemnification agreements entered into by this developer, Mr. Hostetler and Co., and/ or any of his associates, specifically Mike Gallo and Co., ‘holding harmless’ the City of Livingston for any legal challenge to the environmental review of the proponent’s (s’) project. We also request to inspect any documents showing any other agreements between the two named parties and the City of Livingston. We also request to inspect any documents pertaining to any agreements between local business or industry (specifically Foster Farms) with regard to connection to the proposed waste water conduit into the city of Livingston.

To the best of our knowledge, a Ms. Donna McKinney, possibly a consultant with the firm PMC, is acting as the director of Planning for the City of Livingston. Who is paying her salary? To whom does she report?

Another matter of concern is the fact that authorizing this sort of activity outside of an existing SUDP is a violation of the Subdivision Map Act. According to the documentation that has been inspected to date it appears as though the developer has requested pre-zoning for parcels within this 300-acre site, to which the 42-inch sewer main is to connect. This seems to be several steps premature for an annexation request. When will the public have an opportunity to comment on any identified significant environmental effects?

We have grave concerns over the lack of information concerning who will be allowed to access this new infrastructure. Can the City of Livingston WWTF actually serve the anticipated urban expansion? What funding source exists for other necessary municipal services? How does this proposed project coordinate with regional water and wastewater needs? If a municipality in Merced county becomes incapable of serving the WWTF needs of its customers and fails, does the responsibility for those services revert to the county? Can the county afford to assume that sort of infrastructure liability?

Have there been any Can/Will Server letters of agreement between the Livingston WWTF and this developer? Is a Will Serve letter valid in the demonstrable absence of capacity?

Given that this developer has a plethora of residential development projects in Merced County and elsewhere, and considering the abject indiscretion of the City of Livingston in lending its ‘approval’ to this developer (especially since the approval lacked jurisdiction or authority) ,we request that all development projects by this developer throughout Merced County and especially anywhere proximate to the City of Livingston or the surrounding unincorporated communities be red-tagged (administratively halted) until such time as the environmental review of each of those current projects can be reviewed for accuracy and compliance with the appropriate laws, codes mitigation measures and appropriate checklists, and until the public is assured that each project is under the inspection and review of the appropriate agency.

This hubris on the part of the developer coupled with the abject irresponsibility of those agents of the City of Livingston demands commensurate sanctions by the appropriate governing bodies and/or state agencies. We request that those authorized to do so pursue such sanction to the fullest extent of the law.

We appreciate your consideration of this information and request to be notified in writing prior to deliberations and/or actions pertaining to this information by each of the notified agencies. Regarding inspection of the documents requested above, we reserve the right to inspect any documents identified subsequent to the above request, prior to any copies being made. We will give specific instructions as to which documents we need copies of when they have been identified and are available for inspection. It is our understanding that each agency notified in this document is responsible to respond to our request, within the statutory time frame with any identifiable documents described herein.

Sincerely,

Lydia M. Miller, President Steve Burke
San Joaquin Raptor/Wildlife Rescue Center Protect Our Water

Bryant Owens- ChairmanPlanada Community Development Corporation

Cc: Interested Parties
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Badlandsjournal.com, Feb. 26, 2006

Merced County
Ruben E. Castillo
County Counsel

February 16, 2006

Thomas Hallinan, Jr., City Attorney
City of Livingston
Post Office Box 486
Oakdale, CA 95361
Fax: (209) 847-5515

Re: Sewer Line Trunk Extension

Dear Mr. Hallinan:

I hope you are well. I am taking the opportunity to write to you about a sewer line extension to a proposed future residential development. The extension was approved by the City of Livingston. Unfortunately, there were a number of deficiencies in the City’s approval, and I wanted to alert you to them as one public agency attorney to another.

As I understand the facts, Ranchwood Homes (“Ranchwood”) is extending a 42” pipeline from the waste water treatment facility in the City to the site of Ranchwood’s proposed future residential development. I also understand that Ranchwood is in the conceptual design phase for the development of a residential housing project located in the unincorporated area of the County, partially within and partially outside of the Sphere of Influence of the City. In order to provide future sewer service for the proposed Ranchwood development project, Ranchwood entered into an agreement with the City to design, construct, and dedicate a sewer trunk line from the City’s waste water treatment plant to the proposed project site. This agreement reflects a finding by the City that the project was categorically exempt from CEQA. The agreement was unanimously approved by the City Council on December 21, 2004, but a Notice of Exemption was apparently never filed.

As approved by the City, the project called for the construction of 5,115 lineal feet of trunk sewer line by Ranchwood. The new sewer line would be installed “between the intersection of Gallo Drive/Vinewood Drive easterly and southerly to Peach Avenue. However, as approved, the “entire length of sewer trunk line is outside the City limit line and Sphere of Influence.” The sewer line is “designed to convey future urban sanitary sewer flows from the City to the existing Wastewater Treatment Plant site.” However, “no part of this in-ground project will be connected to the City sewer system until future mixed-use development occurs.” [December 21, 2004, City Staff Report re: Ranchwood Sewer Trunk Line, emphasis added.]

Following approval by the City, Ranchwood acquired easements from private property owners and the County department of public works. The project proceeded and a “dry” sewer trunk line was installed all the way from the waste water treatment plant to just short of Magnolia. At the request of the County, further installation has been stopped, subject to an encroachment permit from the County and compliance with all applicable laws.

Given these facts, I thought it important to share with you our legal view concerning the project. It is the County’s reasoned opinion that the approval of this project by the City does not comport with the City’s jurisdictional authority. Furthermore, it appears to run afoul of the Cortese-Knox Local Government Reorganization Act, the California Environmental Quality Act, and general land use and planning law. As County Counsel, I respectfully request that the City take every action to bring its approval of this project into compliance with these laws, including all appropriate environmental analysis, and I further request that the City communicate with and cooperate with the County to make certain this project is carried out in conformance with the law and the jurisdictional authority of each respective public agency.

1. The City had no Power to Approve a Project Outside its Territorial Limits.

As you know, the California Constitution at Article XI, section 7, confers on a city the power to “make and enforce within its limits all local, police, sanitary and other ordinances and regulations not in conflict with general laws.” Thus, “[u]nder the police power granted by the Constitution, counties and cities have plenary authority to govern, subject only to the limitation that they exercise this power within their territorial limits and subordinate to state law. (Cal. Const., art. XI, Section 7.) Apart from this limitation, the ‘police power [of a county or city] under this provision . . . is as broad as the police power exercisable by the Legislature itself.’ Birkenfeld v. City of Berkeley (1976) 17 Ca. 3d 129, 140 [130 Cal. Rptr. 465, 550 P.2d 1001].” (Candid Enterprises, Inc. v. Grossmont Union High School Dist. (1942) 50 Cal App 2d 374, 122 P2d 965.)

A municipal corporation has generally no extraterritorial powers of regulation. It may not exercise its governmental functions beyond its corporate boundaries. (Von Schmidt v. Widber (1894) 105 Cal 151, 38 P 682; Mulville v. San Diego (1920) 183 Cal 734, 192 P 702; Oakland v. Brock (1937) 8 Cal 2d 639, 67 P2s 344.) The Constitution delegates directly to inferior governmental agencies the police power in their respective localities, provided only that its exercise by any city must be confined to such city. (People v. Taylor (1938) 33 Cal App 2d Supp 760.) A municipal ordinance can have no extraterritorial force unless by express permission of the sovereign power. (Ferran v. Palo Alto (1942) 50 Cal App 2d 374, 122 P2d 965.)

It is only when annexation occurs that the police power transfers from the County to the City. Police power has been given a county and a city, respectively, for exercise only “within its limits” and when land in suit was annexed to city it left territorial jurisdiction of county, ceased to be “within its limits,” and hence was no longer subject to provisions of county zoning ordinance classifying land as residential and limited to single family dwellings. (South San Francisco v. Berry (1953) 120 Cal App 2d 252, 260 P2d 1045.)

2. The Out-of-Boundary Extension of Service Requires Approval by LAFCO.

This sewer line extension should have been approved by LAFCO. As you know, a city that wishes to extend sewer service outside of its jurisdictional boundaries must go to LAFCO;

(a) A city or district may provide new or extended services by contract or agreement outside its jurisdictional boundaries only if it first requests and receives written approval from the commission in the affected county.
(b) The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries but within its sphere of influence in anticipation of a later change of organization.
(c) The commission may authorize a city or district to provide new or extended services outside its jurisdictional boundaries and outside its sphere of influence to respond to an existing or impending threat to the public health or safety of the residents of the affected territory if … [certain requirements are met].

(Cal. Gov. Code Section 56133.)

Since the sewer is intended to serve a 300-acre parcel outside the City, it implicates LAFCO’s jurisdiction over an “out of boundary” service extension. (See Ceres v. Modesto (1969) 274 Cal. App. 2d 545.)

3. The California Environmental Quality Act.

In December of 2004, the City made a determination that the sewer line
project was categorically exempt from CEQA. Of course, we do not believe the City ever had jurisdiction to make a valid CEQA determination for land uses on land that is not within its territorial limits.

Nevertheless, the City may have incorrectly applied a statutory exemption, instead of a categorical exemption, to find the project exempt from environmental review. In the review and approval of December 21, 2004, the City stet (sic) on Section 21080.21 of the Public Resources Code to find the project exempt. Section 21080.21 provides:

“This division does not apply to any project of less than one mile in length within a public street or highway or any other public right-of-way for the installation of a new pipeline or the maintenance, repair, restoration, reconditioning, relocation, replacement, removal, or demolition of an existing pipeline. For purposes of this section, “pipeline” includes subsurface facilities but does not include any surface facilities related to the operation of the underground facility.”

Reliance on this section may be misplaced. The total sewer line project greatly exceeds one mile in length. Thus, even though the project – as approved – appears to fit the statute, as the length of the first phase of pipeline installation is 5115 feet, this run afoul of a principle of CEQA that one cannot “piecemeal” a project in order to avoid the applicability of CEQA. (Association for a Cleaner Env’t v. Yosemite Community College Dist. (2004) 116 Cal.App.4th 629, 638. A lead agency may not split a single large project into small pieces in order to avoid environmental review of the entire project. Orinda Ass’n v. Board of Supervisors (1986) 182 Cal. App. 3d 1145, 1171.

In the most far-reaching decision on the issue of “piecemealing” development projects, the San Joaquin Raptor/Wildlife Rescue Center successfully set aside an EIR for a housing project in Stanislaus County, based on the failure of the project to include construction of sewer lines and construction of a wastewater treatment plant to serve the project. (San Joaquin Raptor/Wildlife Rescue Ctr. V. County of Stanislaus (1994) 267 Cal. App. 4th 713.) In that case the court relied on 14 Cal. Code Regs. Section 15378 (a) which defines the term “project” as “the whole of an action, which has the potential for resulting in a physical change in the environment, directly or ultimately.” Because the sewer expansion had been proposed to serve a housing project, and the housing project could not proceed without an expansion of sewer service, the court concluded that the expansion was an integral component of the housing project.

Second, the pipeline is not located within a public right-of-way. Instead it is located on private property, from which the City got a number of public easement dedications. The acquisition of easements after approval of the proposed project is not in keeping with the claimed exemption.

In addition, the City did not notify the County of its determination as a responsible agency. CEQA sets a standard of communication and cooperation among responsible government agencies with respect to projects.

Lastly, the City did not file a “notice of Exemption” for the pipeline project. (Pub. Res. Code Section 21108.) Although the filing of such a notice is not required by CEQA, it is the standard practice for California government agencies to do so.

According to PMC, consultant to the City, an EIR is being prepared for the City’s sewer and water master plan and this “project” is probably a part of that master plan. WE are concerned that a project has already been approved and constructed that is (or should be) a part of the larger master planning effort that is currently undergoing environmental review.

4. Livingston’s Actions May Have Violated Government Code section 65402.

Section 65402 (b) of the California Government Code states:

“[A] city shall not acquire real property for any of the purposes specified in paragraph (a), nor dispose of any real property, nor construct or authorize a public building or structure, in another city or in unincorporated territory, if such other city or the county in which such unincorporated territory is situated has adopted a general plan or part thereof and such general plan or part thereof is applicable thereto, until the location, purpose and extent of such acquisition, disposition, or such public building or structure have been submitted to and reported upon by the planning agency having jurisdiction, as to conformity with said adopted general plan or part thereof.”

Thus, the City may not authorize a project within the County until the County has determined its consistency with the County’s general plan. If found to be inconsistent, the city council must vote to overrule it. The County was neither consulted nor has the City taken action to overrule the County general plan on the truck line extension.

CONCLUSION

As you can see from the above, the approval of this project by the City is questionable. The project failed to comport with the City’s jurisdictional authority, the Cortese-Know Local Government Reorganization Act, the California Environmental Quality Act, and general land use and planning law.

Your help is sought so that the City may take every lawful action to bring its approval of this project into compliance with these laws, including all appropriate environmental analysis. I also request that the City communicate with and cooperate with the County to make certain this project is carried out in conformance with the law.

It is important that the County and the several cities maintain a cooperative and positive working relationship. It is in that spirit that this letter is provided to you. I hope to hear from you soon.

Highest regards,

RUBEN E. CASTILLO
MERCED COUNTY COUNSEL
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Badlandsjournal.com, March 10, 2006

Merced County Development Rodeo: Ranchwood Event

San Joaquin Raptor/Wildlife Rescue Center and other members of the concerned public always wondered how developers in Merced County rode roughshod over local, state and federal environmental laws, regulations, agencies and its own public. But, rarely have they been granted the insight provided by this telephone message, recorded on Feb. 3, 2006.

Badlands has blocked out the last two numbers of the telephones the developer left for return calls from the supervisor he thought he’d called as a courtesy to the developer.

Mrs. Crookham, this is Greg Hostetler calling. My cell number actually is 704-13** if you need to call me. I’m on a cell phone cause my other battery I’m trying to save that, preserve it you know. I’m into preserving things too from time to time, but anyway, uhm, I’m just calling you, uh, to let you know that…ah if you don’t already know… that we’ve had a lot of drama and trouble in the county … everywhere I do business [inaudible] apparently I guess because of Mrs. uh…Mrs. Deirdre Kelsey ah… thinks staff may need some help, because she’s climbing all over them… using [inaudible] staff for her personal pit bulls…trying to bite our people, and our staff — this is my opinion — causing a lot of drama in Livingston, for the City of Livingston and we’re trying to uh in the progress of uh in the process of installing a sewer line over there. If you haven’t talked to Dee Tatum, he could fill you in on what’s going on over there. But uh this probably will not end any time soon. So, I just wanted to give you the update, and if you could give staff any help I’d appreciate it… Thank you!

End of message…to erase this message press 7, to save it press 9, to hear more options press 0. To replay this message press 4, to get envelope information about this message press 5. To…. Sent February 3rd, at 11:48 am from phone number 704-13** duration 1 minute 14 seconds. To erase this message press 7. To save it press 9. This message will be saved for 21 days. End of messages.

On Feb. 9, City of Livingston Mayor Brandon Friesen wrote San Joaquin Raptor/Wildlife Rescue Center and members of the public, accusing them of “conducting a documented pursuit and vendetta against Ranchwood Homes.” The mayor said public questions raised and public requests for documentation on this project have “placed our City in the middle of mud slinging and we will not stand for it.”

· The 42-inch sewer trunk line from the City of Livingston: Mr. Hostetler, who does business as Ranchwood Homes, is referring to a mile-long sewer trunk line he built from the corner of the Livingston wastewater treatment plant to a few yards away from where he plans to build a subdivision. The trunk line is built entirely outside the jurisdiction of the City of Livingston in land under county jurisdiction. On Feb. 16, when the project was still incomplete, County Counsel Ruben Castillo wrote a letter to the city attorney of Livingston instructing him in the number of laws the city had broken by “approving” this project beyond its jurisdiction. However, by Feb. 28, the project was completed and the 42-inch, mile-long sewer pipeline was covered over. The public has been granted access to neither city, county nor LAFCO files on this project, despite requests to county CEO Dee Tatum, county Counsel Ruben Castillo, county Director of Planning and Economic Development Robert Lewis, Local Agency Formation Commission Director John LeVan, and the county Board of Supervisors. A request for a meeting with CEO Tatum and department heads has also gone unanswered. The County has taken no action.

· 1,000 acres in North Merced: Ranchwood cleared approximately 1,000 acres of pasture bounded by G Street, La Paloma, Merced Country Club and Old Lake Road, north of Merced. The field crossed Fahrens Creek. Ranchwood put in field roads crossing the creek at two locations, tore out all vegetation along the creek and pushed freshly disked dirt into the stream. The land contains wetlands, is probably habitat for federal and state protected species. There are probable violations of the federal Endangered Species and the Clean Water Act. The public filed a request for code enforcement with Merced County. The County took no action.

· 300 acres near Le Grand: Ranchwood disked and deep-ripped a portion of a 300-acre field on the corner of White Rock and Le Grand roads in county jurisdiction. The land contains wetlands, is probably habitat for federal and state protected species. There are probable violations of the federal ESA and CWA. The public filed a request for code enforcement with Merced County. The County took no action.

· 1,100 acres near Le Grand: Ranchwood deep-ripped, leveled and disked approximately 1,100 acres of seasonal pasture land on the SE intersection of Buchanan Hollow and White Rock roads, also near Le Grand. The pastures contained small streams, wetlands, vernal pools and federal and state protected species. The public filed a request for code enforcement with Merced County. The County took no action.

These are significant conversions of land. Merced County should have directed Ranchwood to do proper environmental review before proceeding. Instead Merced County turned a blind eye to these significant conversions.

State and federal agencies were notified and are expected to uphold regulatory compliance on these projects.

· Franklin County Sewer District: Ranchwood excavated two additional percolation ponds in a field west of Santa Fe Road north of Highway 59 to service a subdivision Ranchwood is building in the Franklin-Beachwood area. The public has requested documentation on this project.

· Land swaps in Planada:

On April 22, 2003, J&J Family Trust sold a parcel of approximately 20 acres on Gerard Road to the Central Valley Coalition for Affordable Housing for $300,000 (approximating from the tax assessment of 1 percent).

On October 10, 2003, CVCAH sold the parcel to the Merced County Housing Authority for $300,000 (according to what MCHA official Nick Benjamin told members of the Planada public).

On Dec. 2, 2004, a complex land swap took place in Planada.

A. MCHA sold the same parcel (APN# 053-145-024) to the Pacific Holt Corp. for $550,000 (according to the tax assessment).

B. A.K. Karmangar, a Planada farmer, sells two parcels (approximately 20 acres) to the MCHA for $550,000 (according to the tax assessment).

C. Pacific Holt sells parcel APN# 053-145-024 to Mr. And Mrs. D. Tatum (CEO Merced County) for $269,500.00 (according to the tax assessment). This is apparently a savings of $280,500.00 to the Tatums for a piece of property Pacific Holt bought the same day for approximately twice as much as they sold it to the Tatums.

On Sept. 29, 2005, Hostetler Investment, LLC filed a memorandum of right of option to Pacific Holt Corp to purchase 50 percent of any or all Wallace and Karmangar property actually acquired by Hostetler, and at the actual gross per-acre price. “For instance, if, as expected, Hostetler actually acquires the entirety of the Karmangar Property containing 410+/- gross acres, the Option would apply to 205 +/- acres. The purchase price for both the Wallace Property and the Karmangar Property shall be the actual gross per acre price paid by Hostetler to purchase the Wallace Property and the Karmangar Property which shall be payable in cash on or before the close of escrow.”

On Dec. 23, 2005, a new entity, Pacific Holt Residential Communities, filed for a county General Plan Amendment for residential construction as the owner of 1,390 acres to be added to the Planada SUDP and to be known as the Village of Geneva at Planada. The acreage is composed of Karmangar and Wallace contiguous parcels.

Pacific Holt Residential Communities consists of Hostetler Investments LLC, Pacific Holt Corp., Premiere Partners III of Illinois, Bear Creek Ranch Inc. and local land holders, Bud Wallace, Inc, Opie and Elizabeth Wallace, Partners, and Hare &Sessions Development, Seattle WA.

The County approved the 2003 Planada Community Plan Update to the Merced County General Plan. The PHR Communities property lies outside of the Planada SUDP except for a 20-acre parcel. The Planada Community Plan has been legally challenged and the case is now in state appellate court.

This is by no means all the Ranchwood Homes projects, even in Merced County alone. It’s just a few examples the public has been able to collect from the east side of the county.

Could county CEO, Dee Tatum, fill in the public (after he’s explained it to Supervisor Crookham) on leapfrog, chaotic, unplanned development – the low, cowboy standards of Merced County planning with an out-dated General Plan, speculation-driven development and a new, incompetent planning director? Why does the County routinely disregard proper public process and the protection of public resources? Why has it shown neither the political will nor the ability to plan coherently in the midst of a speculative real estate boom that began before UC Merced was a “done deal”?

Would CEO Tatum explain why he hired a planning director from Nevada who is incompetent in California environmental law or public processes like the Public Records Act?

Could Supervisor Kathleen Crookham illuminate the public on her special relationship with Ranchwood Homes? Would Supervisor Jerry O’Banion of Los Banos explain how Ranchwood Homes does business, since O’Banion knows all things that occur on the west-side turf he shares with Ranchwood?

The Merced County public should ask how county government can do anything but build a reputation as the most corrupt local land-use authority in the state when the top Democrat opponent of environmental law and regulation in the House of Representatives and one of the key fixers behind UC Merced, Rep. Dennis Cardoza, Shrimp Slayer-Merced, is welcome to sit on the third floor of the county administration building.

The University of California, aided by Cardoza, former Rep.Gary Condit, Blue Dog-Ceres, the Condit children, Gov.Gray Davis and compliant state resource agency heads, railroaded (the term “fast-tracked” was substituted) UC Merced through environmental law, regulation and took local land-use authority, set the cowboy standards for development in Merced County. UC also acquainted local land-use jurisdictions with the magic of legal indemnification against legal challenges brought to protect Merced County natural resources, air, water, agricultural land, infrastructure, public health and safety, and endangered species as well as protecting proper public process.

Bill Hatch