Tuesday, February 11, 2020

[San Mateo County] Foster City mayor calls for Parks and Recreation audit Sponsorships and payment is in question; accountability sought


Blog note: this article references a complaint filed with the grand jury.
Foster City officials are investigating financial irregularities in Parks and Recreation accounts and may bring on an independent auditor to assist. 

Over the past several months, city staff have received a series of inquiries regarding the process for soliciting sponsors for city events and collecting sponsorship fees, Mayor Catherine Mahanpour wrote in an open letter to the community dated Jan. 13, adding that staff have since spent considerable time reviewing Parks and Recreation documents. 
“Through that review, it has become apparent that the billing and accounting practices in Parks and Recreation are deficient,” she wrote. “In my opinion, the council should look into bringing in an independent third-party consultant to audit the processes, procedures and practices of the Parks and Recreation Department since their records have evidently not been kept in a best practices manner.” 
In the letter, Mahanpour said she’s “aware of the non-payment of sponsorships by a councilmember,” but also said it remains unclear how much money is owed due to “a lack of documentation confirming sponsorships and follow-up billing.”
“We need to arrive at an understanding as to the outstanding amount owed and how that deficiency occurred to make sure that this does not happen again and to hold staff responsible for this oversight,” she wrote.
While Mahanpour did not name the councilmember who owes the city money, her letter was published a week after a citizens group called FC Watchdog filed a complaint with the San Mateo County Civil Grand Jury accusing Councilman Herb Perez and his business, Gold Medal Martial Arts, of owing the city $17,000 for event sponsorships dating back to 2014. FC Watchdog is also leading the effort to recall Perez.  
“Foster City has allowed Council Member Perez to sponsor city events and reap the advertising benefits, while accruing an unpaid balance spanning six years,” according to a press release. The group is basing their claims off freedom of information act requests. “[We’re] concerned that Foster City tax payers are subsidizing the advertising of the private business of an elected official.”
The group also accuses City Manager Jeff Moneda of “possible collusion” in the release, though according to Mahanpour’s letter, whatever financial practices need to be corrected “started with the previous city manager’s tenure.” 
Moneda didn’t return calls or emails for comment, though he has already made internal changes as to how event sponsorships are handled and agrees that an independent audit is necessary, according to Mahanpour’s letter.
Perez did not want to respond to FC Watchdog’s allegations and said he doesn’t know who Mahanpour is referring to in her letter, which he described as inappropriate. 
“I have no idea who she’s referring to and the letter is on city letter heading, which puts the city in a legal quandary,” he said. “It would be unfortunate that any elected official would cast dispersions on any sponsor to damage their brand to further their political agenda or diminish the value of that substantial contribution.” 
Perez said he’s contributed $80,000 to numerous causes and events in the city since taking office and noted city officials admit there’re no documents suggesting he has failed to pay a single bill. 
“We’ve had no notification of any money due,” he said. “If there’s any outstanding balance they can let us know and we’ll pay it.”
Perez also rejects FC Watchdog’s claim that he has unpaid bills going back to 2014.
“The city does an audit at the end of every year with an independent audit firm that wins awards. I have to believe the audit,” he said. “From 2014 to 2019 we’ve received no notice of unpaid bills, no deficiencies. I don’t know what else to say.”
January 18, 2020
Daily Journal
By Zachary Clart

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