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 had been established to hash out the details of an initial agreement between the City and HBCSD. The Land Use Committee was in operation from 1975 to 1977. See: HBCSD Dec. 15, 1975 meeting minutes, page 86., HBCSD June 17, 1977 meeting minutes.

(3) In June 1977, the District and City Land Use Committee completed the Memorandum of Understanding (MOU). The MOU detailed 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 included 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) HBCSD School board members accepted the MOU on June 13, 1977 from the District and City Land Use Committee. They then sent The Resolution of Intention to Sell and Prescribing the Terms Thereof (Exhibit G), a description of the property, AND the Memorandum of Understanding (MOU) to the City of Hermosa Beach.

(7) The MOU, Article 4, specified 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) approved the MOU, the day after receiving it from the School District at their meetings on June 14, 1977 and June 28, 1977. 

(10) At the City Council meetings of June 14, 1977 and June 28, 1977, City council members: George Schmeltzer, Lance Widman and George Barks, voted to accept the MOU and proceeded 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.

(11) The Hermosa Beach City Attorney at the time, J.B. Mirassou, confirmed the lease agreement was 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. 

"The parties have entered into agreements limiting the future use of the property. This use is limited to parks, recreational, open space, educational or other community purposes." Page 3.

(12) The City of Hermosa Beach and the HBCSD held eight (8) workshops to hash out the final details of the Sale and Purchase Agreement for Pier Avenue School.  There is no evidence that the lease provisions described in Article 4 of the MOU were rejected during these workshops.

(13) The last exhibit added to the Agreement was Exhibit K. Exhibit K, aka the Recreation Agreement, was proposed at the second to the last workshop meeting. Exhibit K was originally refered to as the Recreation Agreement until the title was changed to the Lease Agreement for Future Use of Pier Avenue School. Exhibit K described the District's future use of the recreational facilities at the Community Center including the gymnasium, changing rooms, tennis courts and auditorium. The term was set as a 50-year term renewable in three-year increments.

NOTE: Superintendent Pat Escalante renewed Exhibit K provisions in a letter to Hermosa Beach City Manager, Tom Bakaly in April 30, 2014.

(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?"”