WE INVESTIGATE
Mark Paulson (Photos -wqa.com. City Hall, Frank Qiu).
The Enforcement Division of the Fair Political Practices Commission (FPPC) has concluded that former 3-term Alhambra Councilman and current San Gabriel Valley Municipal Water District (SGVMWD) Board Director, Mark R. Paulson, violated the Political Reform Act by not disclosing his controlling interest in Gateway Consultant on his Statements of Economic Interest (Form 700s). Director Paulson is not disputing the charge.
By Sean McMorris
This is according to a tentative streamlined settlement agreement reached between Director Paulson and the FPPC, which is expected to be approved by FPPC commissioners at their next public meeting on February 21, 2019. The Executive Staff Report states:
Mark Paulson, a Director for the San Gabriel Valley Municipal Water District, failed to timely report his investment in and source of income from Gateway Consultants on the 2017 Annual Statement of Economic Interests, in violation of Government Code Sections 87300 and 87207 (1 count).
Agreement and a fine
As part of the agreement, Director Paulson amended his Form 700 covering the year 2017 to show his stake in Gateway Consultant as well as an estimate of the income he received from consulting that year. Director Paulson also agreed to a $100 fine and waived his rights to an administrative hearing on the matter.
All elected California officials must file Statements of Economic Interest, known as Form 700s, with the Fair Political Practices Commission as well as the local, county, or state body they are elected to. These statements reveal where an elected leader is receiving income. Form 700s help ensure that electeds do not vote on matters that pose a conflict of interest.
Consulting without a license
Colorado Boulevard.net reported in January 2019 that Director Paulson had been consulting on development projects and city contracts out of his real estate office in Alhambra without a business license. When brought to the City’s attention, Alhambra Code Enforcement investigated and found Director Paulson to be without license: a violation of the City’s municipal code. Shortly thereafter, Director Paulson filed for a Business License and Certificate of Occupancy with the city. The same day his application was initially approved (the City’s initial approval was done inappropriately and had to be re-done), Director Paulson amended his Form 700s covering years 2015 and 2016 to show tens to hundreds of thousands of dollars in consulting income.
How it all began
Director Paulson began consulting on developments and city contracts with fellow Alhambra councilmember, Paul Talbot, after they both termed out of city office in 2006. Talbot divested himself of their company, Gateway Consultants, when he became Monterey Park City Manager. Talbot is currently the interim Montebello City Manager. The California Secretary of State; L.A. County Registrar; and Cities of Alhambra, Monterey Park, and Monrovia have no record of Gateway Consultants having ever been registered as a business.
In 2016, Paulson filed a DBA with the L.A. County Registrar for Gateway Consultant (minus the “s” in Consultant”s”). He certified on his DBA paperwork that Gateway Consultant began transacting in 2010.
Currently
Paulson’s Statements of Economic Interest now show that he has been, or is currently, a consultant for Alhambra’s current towing contractor (Al’s Towing, which is the beneficiary of a no-bid contract with the City); Anasazi Corporation, which is owned and operated by Brad Perrin (Perrin owns and operates Almansor Court, Inc., which is the beneficiary of a 50-year no-bid contract for concession services at the Alhambra Golf Course); St. Clair Partners, LLC (a developer who recently received city approval to raze over 150 mature trees for a development project in Alhambra); Elite-TRC Alhambra Community, LLC (a subsidiary of a Chinese investment firm that is planning over 1,000 housing units at The Alhambra complex on Fremont and Mission Avenues); and South Meridian, LLC (the company Arman Gabay and The Charles Company used to seek entitlements for a Lowe’s and office development project on Fremont Ave. in Alhambra).
The Charles Company and the City were sued by a community group over Gabay’s Fremont development. The project fell apart amidst the lawsuit. Gabay is currently awaiting trial on a different matter regarding bribe payments to an L.A. County official in exchange for leases.
Mark Paulson was recently re-elected to the Division 1 seat on the SGVMWD Board of Directors. He ran unopposed for the seat in 2018 and back in 2014.
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