The Milpitas City Council’s primary responsibility is to set policy, ensure the policies are followed, and to implement the will of the people they were elected to represent. Their responsibility includes the fiscal management and sustainability of our City. Our past two elected Councils have pushed and continue to push our City into a larger structural deficit; bottom line, we taxpayers are stuck paying the bill.
Budget with Increased Spending
Two years ago, our Finance Director proposed a budget that would have reduced our spending, yet Mayor Montano and then Vice-Mayor Evelyn Chua objected. Along with the vote of Councilmember Garry Barbadillo, they instead passed a budget that increased spending. Soon after, our Finance Director was no longer with our city and employed by the City of Palo Alto.
Interim City Manager Expense
The same Council refused to negotiate a contract renewal with our City Manager, and we have now lost another City Manager, requiring an expensive recruitment for an Interim City Manager which will be followed by an even more expensive recruitment for a permanent City Manager. Why pay thousands of dollars to recruit an Interim City Manager? Past Councils have been fiscally responsible and always used internal employees to staff an interim position. To make things worse, employees have reported that this Council decided to hire someone from the outside and pay a salary over $100,000 more than what the existing City Manager was making. If we had used an internal candidate, we would have saved a substantial amount. I wonder where they found the extra money, because just a few months ago, they completed negotiations with some of the unions and were claiming that our structural deficit was huge. Council has even insinuated our public safety unions were responsible for the budget shortfall. I guess they forgot it was the public safety unions that took a reduction in pay and/or benefits to help the City recover from the fiscal devastation of Covid. The most recent negotiation was to restore those reductions and keep Milpitas competitive in hiring new police officers and firefighters.
Lawsuit Against Ex-City Manager
The lack of compliance with Employment Policies and the ill-fated decision to allow the lawsuit filed by our ex-City Manager to drag on has not only put our budget at risk, but exposes the City to even more financial loss. Who is going to pay for the lost lawsuit(s) since there is no insurance to cover the cost? We the taxpayers will have to pay while suffering a reduction in services to our community to cover the cost. The Council could have easily settled the lawsuit for $175,000 spread over 6 months but instead they have spent an estimated $300,000-$400,000 defending the city.
Failure to Follow City Policy
Repeated failures to follow city policy continues to put us at risk. For example, they put us at risk of another lawsuit when they failed to follow the city policy for emergency hires. The policy clearly allows an emergency hire, with the provision that the position is publicly posted and interviews for the permanent position are completed within 6 months. Yet, our Finance Director position, which was filled as an “emergency hire” still has not been posted for interviews. The Finance Director has been in her role for over a year. It was never posted which violates fair hiring practices. My understanding is that there are at least two applicants that were interested in the position who are now considering a lawsuit against our City because they were denied the opportunity to apply for the position.
Library Renaming
The renaming of the County Library is another example of a policy that was not followed. There are straightforward requirements laid out in our City Governance that were not met. Staff reported that the initial bids for the renaming was $200,000 but was rejected. Now, I understand the cost is around $40,000 – $50,000. It’s still money we do not have and should not be spending. Had the Council followed the required procedures, renaming would have gone to the Library Commission who likely would not have approved any renaming. Especially in the midst of trying to solve our structural deficit.
Washington D.C. Trip
Recently, Mayor Montano and Councilmember Chua violated policy during their trip to Washington D.C. for the Mayor’s conference. The policy is clear, expenses will be paid for the conference only. But both chose to attend President Trump’s inauguration. Those expenses are personal expenses and by policy not covered by the City. Yet, internal city documents show that Montano and Chua used their CITY travel budget to pay for the extra hotel stay they needed to attend the inauguration. Even though they cancelled at the last minute, the city incurred the cost and they are personally responsible for those costs. According to staff, there has been no reimbursement from either councilmember to the City to recover the personal expenses.
A Structural Deficit
During the last few Council meetings there has been talk about a structural deficit. I think we all understand that reducing expenses and/or increasing revenues is the proper way to resolve a structural deficit. However, we expect our elected officials to use reason and logic when deciding what to cut. In one meeting, Council discussed terminating an after-school program that our Recreation Director reported breaks even or actually generates revenue. Where is the logic in cutting a program that does not actually cost the city money but makes the city money? It does not help the structural deficit; it hurts our working families that rely on these programs, so their children are safe and cared for while they return home from work. It hurts our children who can socialize, exercise, and do their homework in a safe place after school..
Years ago, I served as the Chair of the Milpitas Citizen Budget Task Force that was created to solve a $12,000,000 structural deficit. Through logical and strategic decision making, we survived. Today, our city faces a $3,100,000 structural deficit. Our current deficit can be fixed with short term cuts and long-term planning, but I fear that with our current Council we are headed in the wrong direction.
Written By:
Joseph Weinstein
Milpitas Resident
There are more lawsuits coming due to Finance Director Luz’s actions. HR Director Kelli needs to answer for the wrongful hiring of Finance Director Luz.
I am a resident and have owned a home along with the rest of my family of five. Raised our children and sent them to local schools. One of whom had no available access to special needs education at the time.
I have been mostly satisfied with all available amenities in Milpitas.
Our police department was always top notch.
I fear for our safety now as never before. We are at risk with knowing that we may not be having sufficient funds to replace officers or new ones needed in the field.
I have faith that the powers that be will fix this situation asap.
Please know I have utmost faith in Evelyn to do her level best to make all this transparent.
I find this information troubling but informative and necessary to help make improvements in our city.
Sincerely Pat Montoya
We should then request Federal takeover of Milpitas since you fear increased violence and based on your comment, it sounds like crimes have never abated in this city despite “police actions” (if this is accurate).
I’ll check what is the process of requesting federalization of our beloved city.
There is no one to blame but the city’s residents who keep voting these same characters. Let’s keep raising the city’s taxes while reducing services, and allow our infrastructures to decay.
Here’s another corruption issue with these people and their patrons. I caught the Milpitas Police Department faking arrests at the Great Mall, last year, using California funding for the anti retail theft campaign. They make their money illegally and then use it to manipulate the public narrative that they are “heroes” and not scumbags, saving us from these retail thieves.
Update: I filed a federal court lawsuit and included the MPD and MPOA’s fake arrests and its falsified documentation. I noted and am concerned not only their: habit of falsification of public documents and fake arrests, corruption and skimming of state funds and American taxpayers money, possible collusion with public officials across the board, manipulation and control of public narratives for their own purposes but also who are these faked arrestees? Are they city employees, state actors including CA POST cadets and other policemen, paid or blackmailed criminals or illegals or informants? Why are they willingly colluding with these criminal elements of MPD and MPOA? Who are they and who are protecting them?
As with the author, “I fear that with our current Council we are headed in the wrong direction.” My top 2 examples are:
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1) That Montano and Chua chose to attend President Trump’s inauguration is a bad indicator. How could anyone choose to support such a corrupt person? Perhaps, that 1 in 5 people who prefer an autocracy to a democracy. Their behaviors often seem like scaled down versions of what Felon 47 does. I’m concerned that federal-level corruption could develop locally without honest representatives resisting the corruption on behalf of We the People. Learn more about their behavior at https://meansfordemocracy.org/blog.html#mcharris
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2) The future looks very bad! With a corrupt, fascist federal regime calling the shots, hard times are ahead in our economy, social programs, public health, crime, and Climate Crisis. If the City wants to balance its books, it needs to raise revenue. Ever since Republican Mayor Esteves, the City has always looked for ways to cut staff and reduce expenses. There is little to be gained with that strategy now, so let’s increase revenue by charging polluters and free-loaders for their activities. Indirectly, I’m proposing that we get money from the billionaire class that are the biggest polluters and free-loaders. Learn more at https://meansfordemocracy.org/budget.html
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Politicians rarely change their thinking after being elected, so I’m not confident that our elected representatives will rise to the occasion. Their failure will result in lots of suffering for Milpitas residents.
What do you expect? This is a blue state and Milpitas is following Newsom’s (and Democrat’s) examples. CA has a deficit and he wants to spend big $$$ (that we don’t have) suing Trump instead of balancing the budget for Californians. Hate is overriding rationality. Emotions instead of logic. Part of of what was stalling the last federal budget agreement was Repubs wanted a spending limit and Dems did not. Don’t you have a spending limit? I sure do. But Milpitas politics go the way of the rest of the state following the Democratic mantra: tax and spend, and if you don’t get what you want, whine and sue. What are YOU going to do about it? You deserve what you vote for.
I totally agree. It seeps into and influences other facets of our city and society, including the police, firefighters, other city employees, tax and spend, services, etc.
Follow the money especially that of the MPOA historical campaign contributions. It will not only starts to make sense but validates what you posted.
Thank you for the clarity and information Joseph.
Hello, my name is Chris Schroeder. I was the Purchaseing Agent (Certified), the only one the city has ever had. Over 18+ years I had a sterling career with many accomplishments, both in-house and outside some of them large enough to garner notoriety all the way to the
Department of Energy in Washington DC. I got along famously with seven administrations and five finance directors until Lauren Lai showed up. The first few months we bumped heads a little bit there’s always an adjustment period for a new director. But after that, well, let’s just say you won’t believe some of the stuff that I can tell you in my opinion, the woman had no idea how to manage a purchasing department and was the greatest force for chaos I ever saw in my entire career, not just with Milpitas. If this response makes it all the way back to Joseph Weinstein who wrote the lead article. I would very much like to talk to you. I think I have a pretty interesting story to tell. I can be reached at the number below.Please feel free to call me anytime.
Chris Schroeder: CPM, APP
925-360-2738
Hi Chris, I admire your courage and thank you for being an example to us Milpitas residents. Again, thank you sir.