HBCSD Corruption

The Misinformation:

It seems obvious from these three excerpts (quotes) that there was coordination between at least former City Council member (1976-1984) and signer on the Agreement for the Sale and Purchase of Pier Avenue School, George Schmeltzer, current Superintendent Pat Escalante (2012-2020) AND HBCSD attorney Terry Tao to mislead the citizen's of Hermosa Beach about the facts of the sale of Pier Avenue School Community Center.

(1)      George Schmeltzer, former Hermosa Beach City Council member 1976-1984) and signer on the Sale and Purchase Agreement for Pier Avenue School in 1978: 

“At the time, of course, people were, ah, population declining, Proposition 13, a shortage of money, …ah, the city had to, ah, sit and deal, as you are here tonight, perhaps for the first time in many, many years, ah, to discuss exactly what could be done, ah, on the city’s part and working with the school district to ensure that.”  … “Ah, we sat down and realized that there was a real challenge there, ah, because the district needed money, wanted to sell properties.  The city knew they needed the money but didn’t want to lose the property.” Hermosa Beach Joint City Council and School Board Meeting, May 28, 2014.  Time Stamp: 00:11:01

(2)      Pat Escalante, HBCSD Superintendent (2012-2020):

“In June 1978, Prop 13 was approved by California voters which dramatically changed the funding of school districts from local property revenues to state funding based on caps of local revenue.  Wealthier districts such as HBCSD were negatively impacted by this Proposition as income to the district began to decline.” Pat Escalante, HBCSD Superintendent, History of the Sale of Pier Avenue School to the City of Hermosa Beach, 11/08/13, posted on the HBCSD.org website.

Sale of Pier Avenue School to the City:

"In June 1978*, a conversation was initiated by the District “Land Use Committee” to discuss the property options. Out of these discussions came an agreement between the District and the City to purchase Pier Avenue School for $650,000.00. Because the City purchased the property for under fair market value, a lease agreement was included as an integral part of the sale transaction.  The lease (NOTE: The portion of the lease agreement that Pat Escalante proceeds to describe is the Recreation Agreement, Exhibit K, district use of the gymnasium, changing rooms, showers, tennis courts and auditorium.), (NOTE: Superintendent Escalante does not mention the provisions for classroom usage contained in Article 4 of the MOU which is attached to Exhibit G and does not have an expiration date.) provides for limited usage by the district of certain portions of the Pier Avenue School.  The lease agreement is for a period of 50 years (NOTE: This last sentence describes the terms of Exhibit K NOT the terms of the MOU of which this write-up was intended to address.) and will expire in 2028.”  (NOTE:  Pat Escalante fails to disclose that the terms of Exhibit K can be renewed in three-year increments.) Pat Escalante, HBCSD Superintendent, History of the Sale of Pier Avenue School to the City of Hermosa Beach, 11/08/13, posted on the HBCSD.org website.

NOTE: Superintendent Escalante obviously has the exact documents from the district archives from 1977 and 1978. However, she incorrectly relays that information to the public. Why? Is she simply incompetent or is she doing the cabal's bidding by keeping relevant information regarding the Pier Avenue Community Center facts from the public.

CORRECT INFORMATION:

1. The Community Center was SOLD to the City of Hermosa Beach

on February 28, 1978.

2.      *Therefore, a conversation was NOT initiated by the “District”

Land Use Committee in June 1978.  The conversation between the

school district and the city to use/buy Pier Avenue School

started around October 1975 - years before the district sent

the Resolution of Intention to Sell and Prescribing the Terms

Thereof (Exhibit G) including the Memorandum of Understanding

to the City of Hermosa Beach on June 13, 1977.

3.      In addition, the Land Use Committee was NOT a “DISTRICT” Land

Use Committee, it was a joint district and city body that was

tasked to help the process of disposing of district surplus

properties.  The Land Use Committee was described in the

December 15, 1975 school district meeting minutes: “The board

was informed of certain issues in the escrow instructions for

the property which the board plans to sell to the city.  These

issues will be discussed at the next City-District Land Use

Committee meeting.”

4.      HBCSD offered Pier Avenue School to the City of Hermosa Beach

on June 13, 1977 through the Resolution of Intention to Sell and

Prescribing the terms there of, Exhibit G in the Purchase and

Sales Agreement for Pier Avenue School. A description of Pier

Avenue School property and a Memorandum of Understanding

were sent with the school district’s resolution to the city on

June 13, 1977.  The terms of the Memorandum of Understanding

apparently had been a collaboration between the City and HBCSD through the City-District Land Use Committee. 

5.      City Council members accepted and approved the school

district’s MOU at their meeting the very next day on June 14,

1977. 

(3)      Terry Tao, HBCSD attorney (2002 - ):

  Slide: Resolution for Sale.

"So here’s the original resolution for sale.  Some of you may say, “Okay why did the District sell the school?” um, “What was going on?”, “What was going on in their minds?  Why is it even possible for somebody to be able to say “lets sell an asset”?  But in reality, you’ve got to go back in time.  At that time there was a lot going on in the State of California.  And at that time, this, right at the cusp, the beginning, of Proposition 13.  So, property taxes were the large, largely the way that schools were being financed at the time.  And there was a ground swell of concern over the fact that property taxes were getting higher and higher and higher.  Which is what led to Proposition 13, which led to a constitutional amendment 13, ah which, if any of you remember, at least I do, I remember all my high school sports teams got cut when I was a kid, ah, which was not a very happy time.  So with school districts being starved back then, one of the things that happened was many school districts ended up selling their properties especially if the school district was going through some form of declining enrollment, ah, which Hermosa was going through. Ah, it may make no sense looking at it from today’s lenses, but it does make sense back then.”   May 31, 2016 presentation to the Joint meeting of the HB City Council members and HBCSD School Board members. Time Stamp: 02:04:08

CORRECT INFORMATION: Proposition 13 passed on June 6, 1978.

COMPETING INFORMATION:  Pier Avenue Middle School was sold to the City on February 28, 1978, three months before Proposition 13 passed.   In February 1978, when Pier Avenue School was sold to the City of Hermosa Beach, neither the school district nor the city knew that Proposition 13 would pass.  It is unlikely that Proposition 13 had anything to do with HBCSD deciding to sell Pier Avenue School to the City of Hermosa Beach. 

The facts at the time were that HBCSD sold Pier Avenue School to the City of Hermosa Beach because district-wide enrollment was dropping. When HBCSD sent the Resolution of Intention to Sell and Prescribing the Terms Thereof to the City of Hermosa Beach on June 13, 1977, School Board members had no idea when or if enrollment would increase in the future.