July 22, 2004

Setting the record straight—AYA gives full disclosure
New questions raised:who’s in charge?

By Kymberli W. Brady
Staff Writer

Recent reports attacking the lucidity of the Almaden Youth Association’s [AYA] books—and thereby questioning its motives—has city officials as well as AYA board members crying “foul” and raising questions whether the fortuitous timing is merely a disingenuous effort by the opposition to dishearten the community and halt the project days before the Environmental Impact Report [EIR] is scheduled to be released for public review.

“I believe they [South Almaden Valley Rural Alliance (SAVRA)] are behind this whole thing,” states AYA President Dan Smyth in response to a July 15 article in a local publication. “It’s a desperate attempt to take your eye off the ball on where we’re headed—perfectly timed to cast dispersions on everything that’s going on.”

“We had nothing to do with it,” says SAVRA president, Nancy Lascola. “How could SAVRA be behind the AYA not disclosing their financial data?”

While Almaden Valley Community Association president, Bob Boydston admits he was “appalled” at the excuses given by the AYA that they were volunteers and didn’t have time, he says responding to the recent article.

“If that situation is accurate, our club would replace the treasurer,” he says. “If it’s not, they need to respond by showing proof that their financial management is in order and give the public access to it—maybe list their financial reports, along with board members and officers on their website.”

“This should be a very positive community project, because it’s supported by so many families,” says Vice Mayor Pat Dando. “Unfortunately, negatives surface, and that’s OK. But when it’s misinformation, that’s unfair to all the volunteers who have been working on it.”

AYA board members are taking sharp aim at allegations that they have not kept up with their fiduciary responsibilities—claims that cast a cloud of doubt over their motives.

“Yes, we’re all volunteers,” Smyth insists. “And we do know our financial status, right down to the penny.”
Quotes that the AYA is “unaware of their financial status” are meeting with harsh criticism as well, especially from attorney Nick Petredis, who says his remarks were taken completely out of context.

“I’m disappointed in the tone’s implication that there is some secretive process that’s not transparent,” he says. “No one’s trying to slip this through under cover of darkness. In fact, it’s the polar opposite. There was just no sense of proportion—they were on a fishing expedition.”

Petredis says he complied with requests, where possible, and provided all AYA nonprofit status applications and tax returns.

“We submitted the sum and substance of what we have, but they wanted more,” he adds. “There isn’t anything else to see at this time.”

However, AYA Treasurer Dan Kennedy admits that their 2003 tax returns, initially due in May, have not been filed, but would be completed in time for their extended Aug. 15 deadline.

“I never refused to turn them over,” he asserts. “I just couldn’t get everything together in time for their deadline.

My books and records are ready, but we get a discounted price from an enrolled agent who hasn’t been able to get to them until now.”

According to an itemized, two-year profit and loss statement provided willingly to the Almaden Times Weekly, 2002 figures reveal $174,186.72 in income, $105,787.11 in expenses, and a balance of $68,399.61 in the account. Their 2003 tax return will reflect $114,361.00 in income, $144,200.21 in expenses, and $38,560.40 remaining. 2004 records currently show $46,072.00 in income and $33,488.39 in expenses—with a current balance of $51,184.01 in the AYA coffers.

Plenty of oversight
Dando remains deeply concerned with the reported inaccuracies, including the amount of money set aside by the city for the project, how much has already been spent, and most importantly, accusations that the city has turned a blind eye toward the management of what has grown from a grassroots effort into a high-profile city project.

“The McKean Road sports complex has more oversight than any public project I have ever been involved with,” she exclaims. “At least twice monthly, representatives from the city manager’s office, city attorney’s office, planning department, parks and recreation department, the Santa Clara Valley Water District, and my office meet with the Almaden Youth Association to discuss the progress of the project.”

“We have a standing agenda, and notes come out after each meeting about what was discussed,” adds Kennedy. “There’s all kinds of oversight, and it’s moving in the right direction.”

In an effort to paint a more precise accounting picture, Dando contends that the city has not set aside $2 million in District 10 park funds for the project, although the fund does contain a line item that reserves $650,000 for sports field development. And, contrary to reports that $594,000 has been spent on the project to date, actual out-of-pocket expenses reflect a total of $444,000.

Dando reiterates that the need to spend additional money was based on concerns raised by a few community members. “In an effort to be responsive to those concerns and do our due diligence, we’re now being criticized,” she says. “I find it interesting that the ones concerned about this project are the same ones raising issues with the amount of money spent to address their concerns.”

The total represents a $50,000 grant, awarded to the AYA in Oct. 2002 as seed money for the initial environmental studies. When a full EIR was warranted, a second grant for $100,000 was issued to offset the cost. When a San Francisco law firm representing the opposition contested the EIR, the city determined that an amended EIR—under the direction of the Planning, Building, and Code Enforcement Department—was necessary to move forward with the project.

According to Denelle Fedor with Dando’s office, alleged grant contracts between the city and the AYA were not provided because they don’t yet exist.

“Right now, there are no contracts, as there is no project,” she explains. “We have an agreement with the AYA to get the EIR approved. The city gave them money for the Negative Declaration and the first EIR. They were to use it to pay RBF Consulting and we have clarification from them that it was.”

And yet, Lascola reports that another grant to the AYA was never mentioned, and according to grant department analyst Jessica Sheldon, a Community Action and Pride [CAP] Grant for $7,000 was issued in 1997 for soccer field design fees.

Kennedy doesn’t deny it, but says the money was awarded to a different group—before they started the corporation in 2002. The records are in storage.

“That was before we resurrected this thing and opened up a new checking account,” he explains. “As far as I know, they used it for plan designs, but when they stopped, they gave what was left back to the [Almaden Valley] Women’s Club—their largest contributor.”

Here today, gone tomorrow?
In June, the AYA was awarded another grant of $150,000 from the San Jose Healthy Neighborhood Venture Fund, part of a $10 million tobacco company settlement earmarked for anti-tobacco education and programs. That money, according to Dando, may be used for field construction, under the AYA’s assertion that involving kids in sports and hosting anti-tobacco programs will play a significant role in keeping them smoke-free.

However, the grant comes in the form of reimbursement and construction has yet to begin, which explains why the funds haven’t been issued—and why grant manager Jessica Sheldon hasn’t received any paperwork.

The financial quagmire lies somewhere between ongoing delays and a one-year window of opportunity, where a June 30 deadline threatened to strip the AYA of the grant all together—until an extension garnered a temporary reprieve. If the project contract isn’t completed and approved by June 2005, the funds could be awarded elsewhere, unless special circumstances dictate otherwise.

Conflict of interest?
Further speculation surrounding the relationship between RBF employee Mike Campbell and the AYA appears to be coincidental. With former city planning department experience, the Almaden resident offered to step in and help with the studies and analysis.

Although city contracts over $100,000 are typically put through a bidding process, the decision to use RFB hinged on their knowledge of the project and work already performed. Soliciting new bids would have resulted in a higher price tag.

“Back when this was just a negative declaration, he came forward with knowledge of the process,” explains Smyth. “When the city took the lead, it was a logical conclusion for RBF to do the amended EIR. That was their call. At that point, our entire job was to just keep the community energized about the project.”

Who’s on first?
One question remains to be answered: Is this a city project or not? While the AYA says it is, Councilmember Chuck Reed disagrees. Although he voted in favor of the grants, he remains unsure as to whether the city should be involved.

“I don’t think there’s any money for it,” Reed says. “I don’t think any of the councilmembers, except for Pat, deemed it a substantive project. I certainly haven’t. This is an AYA project.”

However, Fedor says it is a partnership between the city and the AYA, according to a reimbursement stipulation in the Nov. 17, 2003 City Council memo.

“With the amended EIR, the city will pay $194,000 and the AYA will pay the additional $100,000,” she explains.

“We did not specify when or how they had to give it back. Once the EIR is approved, it will be included in the project contract—and with City Council approval.”

“I don’t know why the city loaned them the money in the first place,” Reed adds. “Unless it is a city project, and I don’t think it is.”

“Whether it goes back to District 10 or to the General Fund, the money will be repaid once the project is approved,” explains Fedor. “The city is really not losing anything.”

“We said we would put it back towards the project one way or another,” admits Smyth. “But we didn’t have it, nor were we going to fundraise for it until we had approval. When we’re ready to start breaking ground, then we’ll put that money back towards it.”

In hindsight, funding for projects like this is not unusual for the city or Dando, as illustrated by similar works, including Vista Park, Chris Hott’s Park, and Jake’s Play Lot.

“Such arrangements are very successful,” Dando says. “The recent renovations to Jake’s Play Lot cost nearly $1 million, but over 40 percent of the money came from grassroots fundraising efforts by the local community.”

Speaking out
Still, the pot has been stirred, raising the suspicions of some, including former District 10 City Council candidate Ron Siporen, who was quoted as being “disturbed by the AYA’s lack of transparency,” calling them “shortsighted.”

“I was extremely disappointed to read that,” says Smyth. “He never called me to verify these allegations.”

“My comments were based on what they [the Resident] told me,” admits Siporen. “I have no firsthand knowledge of it and didn’t follow up. There’s so much misinformation and mistrust out there—it really puts a burden on everybody to come to a solution. My point was, given where they’re headed in raising millions of dollars for this project, that they do everything today to show they are capable of handling the money to everybody’s satisfaction.”

As the November runoff election for City Council nears, both remaining candidates are concerned with the reported inaccuracies, especially as one of them stands to inherit the tenuous project.

“It’s unfortunate that the correct facts were not used,” says Rich De La Rosa. “They should have done more homework. My first reaction was to find out where the story came from—there’s no way Pat would allow this project to go forward without excellent oversight. And I know the money hadn’t been allocated yet or we would have known about it. They should have done more homework. This may become my project and it’s very important that everything is disclosed and above board—that we know exactly what public and private monies are going to be used on it.”

“It certainly left me with a whole lot of questions,” admits Nancy Pyle. “For more than a decade, Almaden has waited for a youth sports facility to be completed. Yet, the project is still stalled because no one is in charge. The AYA is a well-intentioned volunteer group, but with millions of taxpayer dollars at stake, San Jose should have taken responsibility from the outset, creating a timeline for completion and a system of fiscal accountability. The volunteers who have put their heart into this facility deserve to know where the project stands.”

Rough seas ahead?
Looking back, the AYA was formed in an effort to spearhead privately funded sports fields that would meet the needs of the Almaden youth sports community. Speculation that field construction may be delayed or cancelled altogether because they didn’t meet their $2.75 million fund-raising goal by June 30 is unwarranted, as the dynamics, according to Smyth, changed when the city took over in 2003.

“That was before it became a city project, before we went into hibernation mode—and before the first EIR,” he explains. “We haven’t gone back to the leagues or the community and raised more money because we haven’t tried to. We’re in the back seat until it gets approved. Then we’ll go back into high gear again.”

As the landscape continues to evolve, so may the bottom line. However, comparing the privately funded estimate to other city park projects could be, in this case, as effective as comparing baseballs to soccer balls.

“There’s a lot of sweat equity factored in here,” Smyth says. “We plan to do much of the work ourselves, instead of paying retail.”

“Ours was not a city project at the time,” adds Kennedy. “The whole bidding process is different.”

The amended EIR is scheduled to be out within two weeks. After a 45-day public review period, it will proceed to the Planning Commission in November, with plans for a City Council vote in December. If approved, it will clear the way for the city to lease 35 acres of SJUSD property to the AYA to develop and operate the interim sports facility.

Current plans, although subject to change, include six soccer fields, four baseball fields, two softball fields, 475 parking spaces, and portable toilets. The AYA plans to work with the Parks and Recreation Department on the final design, bidding, and construction phases—expected to begin in Jan. 2005.

However, it’s hazy as to who will man the ship, as City Attorney Rick Doyle reportedly said that having the AYA manage it “might not work.” Yet, Dando’s office still considers it an ongoing partnership.

“Once the EIR is approved, a contract with the AYA will be entered into for the construction, operation, and maintenance,” says Fedor. “We are fully committed to working as a team. They have proven over the past ten years that they are committed to this project. Right now, they are ramping up their fundraising efforts to help reach their goal.”

“We are still here to fundraise for the same project,” insists Kennedy. “Whether we run it or the city runs it, it doesn’t matter. The money goes toward building the complex.”

“Things have definitely evolved,” adds Smyth. “It’s not the same animal that it was two years ago. But we’re on the verge of doing something great for the community, and we really need them to be excited about it now.”