SANTA CLARA -- The civil grand jury Monday released findings
from its four-month investigation into the finances of Levi's Stadium, capping
a volatile year for Santa Clara which saw the sudden resignation of one mayor
and accusations of backroom dealings from the next.
But despite the anticipation surrounding the investigation, the
13-page report ultimately could not verify claims that taxpayer dollars are
being used to support the multi-million dollar stadium. That accusation, which
led to the civil grand jury probe, is a violation of the 2010 voter-approved
Measure J, which promised Santa Clara residents that no general fund dollars
would pay for the venue's operations.
"It is unclear whether unreimbursed city general funds are
used for stadium operations and maintenance in violation of Measure J,"
the jurors wrote.
When city employees, including police and fire officials, spend
time setting up for NFL events or providing security during games, they're
required to report those hours separately on their time sheets so the city can
bill the San Francisco 49ers for the event. But there's no way to tell if an
employee fails to accurately report hours worked for stadium events -- whether
deliberate or accidental.
The grand jury recommended the city order an independent audit
to confirm if general funds have been used to subsidize Levi's Stadium. The
audit, which was already requested by Mayor Lisa Gillmor, should outline how
city employees get reimbursed for time spent on stadium business, the report
said.
Gillmor, who was appointed mayor in February after former Mayor
Jamie Matthews suddenly quit, has long suspected the city is violating Measure
J and accused officials of engaging in backroom deals. Gillmor went public with
her suspicions last month after nearly a dozen employees -- including police officers
-- privately told her they worked during Niners games or non-NFL events at the
stadium, but the hours were paid with general fund dollars without
reimbursement.
The civil grand jury interviewed eleven people and reported many
employees said they "were told by superiors to improperly charge Stadium
activities to the city."
But, the jurors concluded, there was no evidence to corroborate
this information. When asked how the general fund is protected, many city
employees consistently replied, "I don't know," the report said. The
jury said an audit will shed light on this process.
"What disturbs me is they were told this was happening, and
the audit is more important than ever now," Gillmor said in an interview
Monday. "The grand jury made it clear that we have to make major changes
to fulfill our promise to the voters and protect our tax dollars. I vow that we
are going to fix this."
Gillmor plans to ask the City Council to extend the audit's time
frame to when Measure J passed in 2010 -- one of the jury's recommendations --
instead of April 2014 when the first NFL season kicked off. She'll also ask the
city to establish a whistle-blower protection program and wants the city
manager and city attorney to report what steps are being taken to comply with
Measure J.
The Niners pay $170,000 for public safety costs per game,
according to the team's lease. When costs exceed that amount, the 49ers pay the
difference upfront but get reimbursed by the Stadium Authority later. The base
rate grows 4 percent a year, but public safety costs have exceeded that amount
every year. The city's fire and police chiefs decide how many people to assign
to each game.
But since public safety costs have exceeded the threshold every
year since Levi's Stadium opened, the jurors recommended invoking an option in
the team's lease that allows the city to renegotiate public safety costs.
The jurors also called for reassigning the role of city finance
Director Gary Ameling as the Stadium Authority's treasurer and auditor to avoid
the appearance of any "conflict of interest."
The Stadium Authority, which includes the mayor and six City
Council members, was formed to oversee the construction of Levi's Stadium, be
its landlord and oversee other business.
June 20, 2016
San Jose Mercury News
By Ramona Giwargis
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