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
No comments:
Post a Comment