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5/6/18 – The Riverside County Grand Jury just released another devastating report (click here to view), which blasts one particular councilmember for ethics violations, as well as violating City policies and ordinances.

This councilmember directed the City manager to clear brush for a private business, Diamond Hills Chevrolet (see our previous story). The Grand Jury makes it clear that reimbursement of the City was not on the councilmembers’s mind, as it was initiated only after the matter became public.

The Grand Jury also addresses the fact that the City awarded the same private business a non-customary, excessive “sales tax sharing” subsidy, which forfeits a large portion of the City’s available sales tax revenue for almost three decades. The City’s forfeiture of this revenue is scheduled to last 28 years.

Without a doubt, Art Welch must be considered the most corrupt good ole boy sleazebag on the Banning City council today.

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THIRD GRAND JURY REPORT ON BANNING IN JUST EIGHT YEARS

This is not the first, not the second, but the THIRD Grand Jury Report exposing malfeasance and corruption in the City of Banning within only eight years.

No other City in California has ever been subject to three Grand Jury reports, suggesting that Banning takes the lead when it comes to corruption in the State of California. Indeed, due to corrupt leaders like Art Welch (not to mention lying Debbie Franklin), Banning truly is one dirty little town.

Good-ole-boy Welch also took center stage in the second Grand Jury Report (2016), when it was discovered that he was intimately involved in a handshake agreement which unlawfully provided the “Banning, San Gorgonio Pass Area Chamber of Commerce” with over $30,000 in free utilities, (see 2016 report).

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GRAND JURY FINDS WELCH DIRECTED CITY MANAGER TO CONDUCT BRUSH CLEARANCE 

Individual concilmembers are prohibited from giving directions to staff .

Only a council majority, properly seated in session, can give direction to the City manager and staff.

In this context the Grand Jury makes reference to City ordinance 2.08.110 which prohibits councilmembers from micromanaging City staff.

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THE RECORD SHOWS WELCH RECEIVED CAMPAIGN CONTRIBUTIONS FROM DIAMOND HILLS CHEVROLET OWNERS

When it comes to malfeasance as outlined by the Grand Jury, all one needs to do is follow the money: Filings for Welch’s 2016 election campaign show that Welch received $2,500 from Alam Khan, (view Welch’s filing, pg. 5). Khan is the owner of Diamond Hills Chevrolet.

This explains why Welch directed the City manager at the time, Michael Rock, to conduct brush clearance on the Freeway for Khan’s business.

Welch couldn’t have cared less about the City being compensated for this service, as evidenced by the fact that this was only pursued as an afterthought, once the matter became public.

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WELCH’S SUPPORT FOR EXCESSIVE SALES TAX SUBSIDIES ROOTED IN CAMPAIGN CONTRIBUTIONS

As mentioned above, the Grand Jury points out the City of Banning has engaged in excessive, non-customary “sales tax sharing” agreements with Khan, as well as previous owners of Diamond Hills Chevrolet.

In this context it is noteworthy that not only Khan, but also the former owners of Diamond Hills Chevrolet gave campaign contributions to several Banning City councilmembers, including Art Welch.

As the record shows, councilmembers George Moyer and Debbie Franklin were on the take as well.

Therefore it shouldn’t come as a surprise that all three of them support the outlandish 28-year sales tax subsidy for Diamond Hills Chevrolet.

According to the Grand Jury, a typical sales tax sharing agreement has normally a 5 to 7 year term.

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WELCH LIED TO THE GRAND JURY

Welch has been involved in illegal handshake agreements before. In 2016 the Grand Jury faulted the City for engaging in a unlawful handshake deal for free utilities with the Chamber of Commerce, as mentioned above, (view 2016 report).

The City’s response to the 2016 Grand Jury’s findings was signed by Art Welch on July 19, 2016. In his response Welch assured the Grand Jury that “the City is also updating its lease and contract policies and procedures to ensure compliance”, (view City’s 2016 response to Grand Jury, signed by Art Welch).

As the latest Grand Jury report now points out, no policies nor any procedures were ever updated by the City. Art Welch’s response to the Gand Jury turned out to be a lie.

Instead of following through on his promises, Art Welch went right back to his old ways: only 9 month after assuring compliance with the Grand Jury’s recommendations, Welch engaged in yet another handshake deal, this time with Diamond Hills Chevrolet.

It appears that Welch must have believed that he could get away with deceiving the Riverside Grand Jury – and for that matter the public. As it turns out, he was wrong.

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THE BANNING INFORMER BROKE THE STORY

This publication was the first to report on City workers being used on the Freeway to clear brush for Diamond Hills Chevrolet, see our article of April 5th, 2017, (view here). The article was reviewed by the Grand Jury in order to obtain information about the matter, as acknowledged on page 2 of their report.

The Banning Informer article also caused the Press Enterprise to heavily weigh in on the matter in a feature article (view PE article here).

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CONCLUSION

How many more Grand Jury reports will it take to clean up Banning? Corrupt artifacts like Art Welch need to go away before real change can happen.

With his never ending backdoor sweetheart deals, Welch has pillaged this community beyond measure. This cannot continue. This City needs a new beginning. Art Welch must resign so Banning can heal.

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