HBCSD Corruption

Proof of the Lie:

(1) On January 11, 1977 the Hermosa Beach City Council authorized negotiations for the purchase of Pier Avenue School for less than fair market value. City Council members are Lance Widman, George Schmeltzer and George Barks and two others. Five months later, the Memorandum of Understanding with the negotiated terms of the sale and purchase is approved by HBCSD and sent to the City. 

(2) A School District and City Land Use Committee is established to hash out the details of an initial agreement between the City and HBCSD. The Land Use Committee is in operation from 1975 to 1977. See: HBCSD Dec. 15, 1975 meeting minutes, page 86., HBCSD June 17, 1977 meeting minutes.

(3) The Memorandum of Understanding (MOU) is the product of the District and City Land Use Committee in June 1977. The MOU details HBCSD’s requirements for the SALE AND PURCHASE of Pier Avenue School (aka the Community Center) to the City of Hermosa Beach at a reduced price. 

(4) The MOU includes four Articles: Article #1) the description of the property; Article #2) the price of the sale; Article #3) the escrow instructions; AND  Article #4) details of the district's lease provision for classrooms, office and storage space when enrollment exceeded 1,266 students. 

(5) The MOU Item 4.02 states:

"The nature of this memorandum of understanding shall be construed as being analogous to a lease in that a part of the consideration for the District's selling the subject property for less than fair market value is the District's right to use the subject property facilities without cost as more particularly set forth below; and conversely, a part of the consideration the City is giving to the District, is allowing the District use of the facilities at the subject property as more particularly set forth below."

(6) At the School Board meeting of June 13, 1977 School Board members accept the MOU and send The Resolution of Intention to Sell and Prescribing the Terms Thereof, a description of the property AND the Memorandum of Understanding (MOU) to the City of Hermosa Beach.

(7) The MOU, Article 4 specifies district use of classrooms, office, and storage space at the Community Center when district enrollment exceeds 1,266 students. There is NO expiration to this provision.

(8) The tradeoff for the city agreeing to the leasing provision contained in the MOU was that HBCSD was selling Pier Avenue School to the city for 40% below fair market value.

NOTE: HBCSD enrollment exceeded 1,266 students from 2010 to 2020 thus triggering the district’s use of the Community Center for students.

(9) The City of Hermosa Beach City Council members (George Schmeltzer, Lance Widman and George Barks) approve the MOU, the day after receiving it from the School District at their meetings on June 14, 1977 and June 28, 1977. 

(10) The MOU is sent along with the Resolution of Intention to Sell and Prescribing the Terms Thereof (Exhibit G), a description of the property to be sold AND the MOU.

(11) At the City Council meetings of June 14, 1977 and June 28, 1977, City council members: George Schmeltzer, Lance Widman and George Barks, vote to accept the MOU and proceed to take out an escrow according to the instructions contained in the MOU, Article 3 – thus automatically executing the entire MOU and accepting all its provisions, including Article 4 - district use of classrooms.

(12) The Hermosa Beach City Attorney, J.B. Mirassou, confirms the lease agreement for educational purposes. J.B. Mirassou's letter is labled as Exhibit I. Please see: The Sale and Purchase Agreement Exhibit I: Letter from J.B. Mirassou HB City Attorney dated January 20, 1978. 

(13) The City of Hermosa Beach and the School Board hold eight (8) workshops to hash out the final details of the Agreement.  There is no evidence that the lease provisions described in Article 4 of the MOU were rejected during these workshops.  However, Exhibit K which described district future use of the recreational facilities at the Community Center for a 50-year term renewable in three-year increments was agreed to in the final workshop meetings and added as the last exhibit in the Agreement.

(14)  Letter to the Editor from former city council member and signer of the Agreement for the Sale and Purchase of Pier Avenue School: The Beach Reporter, We Get Letters: Week of April 5, 2019, Reopening Pier Ave. School, by George Barks. 

“To set the record straight, as a former city council member during

the time of the sale of Pier Avenue School to the City, I can attest

first-hand that when this issue came before the council, we absolutely

guaranteed that the students could return to use the school if needed

in the future.  A simple lease-back option was included within the

contract (the Memorandum of Understanding) between the district

and the city. As I have always said: "Why wouldn't the City Council

allow Hermosa students priority use of Pier Avenue classrooms and

facilities?"”