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CHULA VISTA, Calif. (KGTV) -- A new report from a state audit agency shows there is enough evidence that fraud or misappropriation of funds may have occurred within the Sweetwater Union High School District.The 79-page audit, conducted by the independent state agency Fiscal Crisis Management Assistance Team (FCMAT), was presented during Monday’s school board meeting.According to the report, the district’s school board relied on inaccurate financial information when they approved salary increases for district employees, resulting in pay raises they could not afford.RELATED: SUHSD: 90 bus drivers paid over 0K in overtime during 2017, database saysThe agency’s investigation also found the district kept borrowing from capital projects, such as Mello-Roos funds, to pay for operations without a method of repaying that money back into the fund.The report also stated Sweetwater misled rating agencies and bond insurers by “deliberate omissions of material information.”San Diego County Superintendent of Schools Dr. Paul Gothold said, "In short, after investigation of the district’s practices, FCMAT concluded that there is significant evidence to indicate that fraud, misappropriation of funds and/or assets, or other illegal fiscal practices may have occurred by current and former employees."RELATED COVERAGE:-- Sweetwater Union High School District votes to cut over 200 jobs-- State fiscal team reviews Sweetwater Union High School District's finances-- District approves interim budget with million shortfall-- Report: Sweetwater Union High School District incorrectly reported debtThe Sweetwater Union High School District has faced budget troubles dating back to September 2018, when they self-reported a million budget shortfall. Since then, teachers have been cut, bus routes were eliminated, and class sizes have increased.FCMAT recommends the state controller and local district attorney be notified of its findings.Frances Martinez, the former internal auditor for the district, told Team 10 the "people who purposely did wrong should be held accountable." Martinez said she raised the red flag regarding financial issues at the district, but was not taken seriously. She said when it came to some of the district's financial accounts, "that's how the reconciled. They just made up stuff and made a balance."Martinez said she was sitting next to Superintendent Karen Janney when the multimillion-dollar deficit was discovered. "She said, hey it's the business system. It's old, huh? Just making up stuff. I've heard about six different versions of the truth and none of them have been truthful."The former Chief Financial Officer Karen Michel would not participate in the audit. The team also could not make contact with Doug Martens, the director of fiscal services.With the release of the FCMAT report, it will be up to the District Attorney, State Superintendent of Public Instruction, and State Controller to determine if fraud did in fact occur within the Sweetwater District.The district was given 15 days to respond to the audit's findings with its "proposed action."One teacher in the district, who did not want to be identified, said the audit's findings were sad, but not surprising. "Hopefully, the positive that can come out of this is that we become more transparent and have more oversight and this will never happen again," the teacher said. On Tueday, SUHSD spokesman Manny Rubio provided this statement to 10News on behalf of the district: "The Sweetwater Union High School District is currently reviewing the report from FCMAT and its findings and recommendations. The District takes this report very seriously and will be determining next steps. Given that this matter is still pending, we will refrain from any additional comment at this time."The District Attorney's office said they are reviewing the audit. There is also an investigation into the district by the Securities and Exchange Commission. An agency spokesperson would not comment. 4002

Chipotle's latest idea to woo customers back: Bacon.The company will test both applewood smoked bacon and nachos in some cities this fall.Chipotle is working to win customers back?after a series of health scares during the past few years — most notably an E.coli outbreak in late 2015 that made 60 customers in 14 states sick.To get back on track, the company hired a new CEO, developed a new ad campaign and is experimenting with new menu items. It offered avocado tostadas and a classic Mexican chocolate milkshake in its New York City test kitchen in June.Bacon and nachos performed well in the test kitchen, said Chris Brandt, the company's chief marketing officer, in a statement on Thursday.Some Chipotle locations in Orange County, California, will offer bacon starting next month, and nachos will come to stores in Denver and Minneapolis-St. Paul in October.Chipotle is also testing new hours and deals.Through September, some Miami and Dallas restaurants are selling tacos with the purchase of a drink after 8 p.m. Those restaurants are staying open until 11 p.m. In some Philadelphia and Indianapolis stores, customers can add chips and a drink to their meal for .The turnaround appears to be working, although Chipotle suffered a setback last month, when customers got sick at a location in Ohio, sending the stock down 6%. 1367

CHULA VISTA, Calif. (KGTV) - A South Bay mom says the dinner she ordered using a food delivery app never arrived, and the driver couldn't be tracked down."It was my second time using the app," said Melissa Stone.Last Sunday, when Stone's kids had a craving for burgers and fries, she signed into her Grubhub app and ordered an early dinner from Bull Chicks in Chula Vista. An hour passed, but there was no food."Went onto the app, checked the delivery status, and it said it was delivered," said Stone.Confused, she checked her front door but didn't see any deliveries. She called the restaurant. An employee told her her food had been picked up by the driver 15 minutes earlier. She asked for the driver's information and got a woman's name and number. Stone says she tried to contact the driver, but the number was disconnected."I'm upset and hangry at this point," said Stone.She says when complained to Grubhub, they didn't have any answers but gave her a refund."I think somebody was hungry, took my food and ate it," said Stone.Melissa posted the incident on Facebook and got several responses from local Grubhub customers with similar stories, including one involving a male driver who reportedly picked up the food but didn't deliver it."They never received their food," said Stone.And they may not be alone. According to a 2019 survey by US Foods, nearly 30% of drivers with food delivery apps, admit to snacking or stealing the food they're responsible for delivering. A Gruhhub spokesperson issued the following statement:"Our mission is to connect hungry diners with great, local restaurants. We always want our diners to have the best experience possible, and the vast majority of our 450,000 orders each day are completed without incident or complaints. But when things don’t go as planned, we appreciate hearing feedback and work hard to make it right.We looked into the two orders brought to our attention and found they are separate, isolated incidents. Both diners were helped by our customer care team and received refunds for the affected orders and promo codes for future orders. We did not find any evidence of misconduct by our drivers during either of the deliveries.Overall, we have zero tolerance for misconduct from our delivery partners, and we work to immediately resolve incidents. Our drivers sign a contract before partnering with us that makes it clear that misconduct is not permitted. As a matter of practice, we do extensive motor vehicle and criminal background checks before contracting with a driver, and we periodically re-run these checks while any driver is contracted with us." 2628

CHULA VISTA, Calif. (KGTV) - A South Bay city is the latest the approve the sale of legal marijuana in San Diego County.An ordinance that will allow the sale of legal weed in Chula Vista was approved by city leaders Tuesday, after City Council twice delayed a vote on the issue.The ordinance allows for 12 commercial licenses (three in each of the city's four districts) and eight total storefronts (two per district). RELATED: Parents raise concerns over marijuana shop operating near children in Chula VistaPot shops will be required to be at least 150 feet from residential zones, 600 feet from youth centers or parks, and 1000 feet from churches, schools, or daycare centers. Business applicants must have a year of experience operating a legal marijuana business.The ordinance will also allow legal delivery services to operate in the city and for businesses that grow cannabis, though only in industrial areas of the city. Now, Chula Vista resident will be tasked with voting on a local cannabis tax. Tax dollars would pay for new changes, processes, and enforcement of marijuana in the city.If everything is approved, the measure would go into effect Jan. 1, 2019, a year after a voter-approved proposition legalized weed across California.Chula Vista leaders hope the new ordinance will help crack down on illegal pot shops operating within the city. 1421

CHULA VISTA, Calif. (KGTV) -- Homeowners in Eastlake are frustrated with a plan to develop a storage facility near their homes. The proposed location is in an empty space between Eastlake High School and Antigua, a gated community of townhomes. The facility would be a recreational storage facility, for boats, cars and containers. The City of Chula Vista's planning department would have to approve the proposal. Homeowners are hoping they don't. Neighbors like Carmen Bermen say the plans are going to lower their property values and attract the wrong crowd. On Saturday, they started posting warning flyers around their community to warn other neighbors. Bermen was the first homeowner to notice the plans. She says the city had sent out two notices in 2016. The last notice arrived on Thanksgiving week. 10News obtained a copy of that notice letting homeowners know they had until November 26th to send in any written comments or petitions. The vote would take place on November 27th. After emailing the city, residents say officials told them they'd have a public hearing in January on the issue, instead of voting on it in closed session. 10News reached out to the city for comment on this issue, a spokesperson told us it's up to the planning department to put the item on the agenda for the community to go and express their concerns during public comment. So far, a date for that hearing hasn't been announced. 1429

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