CJ Dablo
Staff Writer
During its meeting on Oct. 18, the Signal Hill City Council criticized two nonprofit organizations which had been in charge of a popular summer concert series and a specific library fundraising project. These projects had used City resources and property, raising thousands of dollars in donations every year. The Council determined to make a change last Tuesday.
In a vote of 4-0, the Council authorized the city manager to enter into an agreement with the Signal Hill Community Foundation, which will assume the management of a summer concert series and another fundraiser which sold inscribed memorial bricks installed on City property.
Members of the Council emphasized their gratitude to the volunteers who had worked hard for the library projects and had dedicated their time to produce the summer concerts. They did, however, underscore concerns over the administration of these projects and a significant delay in negotiating an agreement with these organizations.
“I want to move beyond blame,” Councilmember Michael Noll said of the decision. “I want results. And I think this is real important. The perception and credibility of the organization is really important.”
The move drew sharp comments from members of the two organizations at the heart of the controversy: Friends of Signal Hill Cultural Arts (FOSHCA) and Friends of the Signal Hill Library (FOSHL). For several years, they had been responsible for these key projects in addition to other projects and events that supported the arts and library needs.
“People have seen how much money is involved. They want it for their organization,” said Sylvia Hopper, a Signal Hill resident and member of FOSHL, who criticized this action as a political move.
FOSHCA had been in charge of the summer concert series for years and had partnered with the City to solicit corporate sponsorships and donations worth thousands of dollars. Producing the concert series required numerous volunteer hours as well as City employee time and resources for an event that drew hundreds of visitors to Signal Hill Park every summer. According to an estimate from Denise Damrow, president of both FOSHCA and FOSHL, the cost to produce the summer concerts totaled roughly under $20,000 every year.
FOSHL had initiated a fundraiser that sold memorial brick pavers that were installed on Hilltop Park. The City had understood that this fundraiser, known as the Millenial Brick Program, had been dedicated to the City’s library funds, according to a staff report.
The Council determined that FOSHCA and FOSHL had not addressed several issues that had been raised by the City staff some time ago. Community Services Director Pilar Alcivar-McCoy noted in a staff report that the City requested a memorandum of understanding agreement from these two organizations in December 2009. A draft version of the proposed agreements required that both organizations provide an accounting of the funds that were raised through donations. In a meeting last September the staff requested the memorandums along with other documentation before a deadline of Oct. 11. The City had asked for a board roster for both of the organizations, insurance certificates and meeting minutes. These documents and more importantly, a signed memorandum of understanding, were not provided by the deadline, according to Alcivar-McCoy.
The City Council expressed additional concern that the last summer concert series lacked publicity and that FOSHCA had distributed solicitation requests without the City’s sponsorship, according to the community services director.
Further issues surrounding the library’s organization were raised. Alcivar-McCoy said that the City did not know how much donation money had been collected by the organization dedicated to library needs and confirmed that the City had requested an audit of FOSHL’s books. According to the community services director, FOSHL maintained an account separate from the City. The City did not request an audit of the FOSHCA account, Alcivar-McCoy said.
Last year, FOSHL raised more than $2,400 through their Millennial Brick Program, according to an estimate provided by Damrow.
Damrow took the time to highlight a few successes of FOSHL and FOSHCA at the Council meeting as she defended the decisions of the organizations she has managed.
Volunteers of both organizations are “very dedicated residents of this community!very committed to the organizations and to the purposes of those organizations, and they feel that they have done an excellent job,” Damrow said, emphasizing that FOSHL had raised more than $86,000 for the library programs. Damrow noted that FOSHCA is hosting an art show that is scheduled in November and has organized free art workshops that are conducted several times a year.
She stated that there is “no issue” with providing transparency to the City and that the insurance certificates had already been submitted to the City. She asked for more time to comply with their request. One individual in charge of the Millennial Brick fundraiser had been on vacation, and although the bookkeeping records had been kept at the library, they wanted time to organize the records, Damrow explained in a follow-up interview Wednesday.
Damrow’s plea for more time drew sharp remarks from the councilmembers.
“Denise, why then didn’t you!let us know that you were not objecting to an audit? That you would have an audit when you had time to get your records together?” Councilmember Ellen Ward asked. “Because we had no indication at all that you were in favor of this…my concern is what in the world is happening,” Ward said.
Wilson echoed Ward’s concern, noting that FOSHL’s history with the City goes back more than a decade. FOSHL had been selling memorial bricks since 1999.
“When someone says that there’s a problem going back to 1999, and this is 2011, I am extremely concerned!because what it’s telling me is that we haven’t had that accounting in all of those years. And I couldn’t, you know, now at this point, couldn’t sit here and say I’m going to give you more time because all that time is used up,” Wilson said, emphasizing that the memorandum of understanding could have already been signed and then the parties could have determined when that audit would take place.
“There’s no argument that’s going to convince me differently that some of these things that were asked to be done, 18 months ago, two months ago, one month ago! could not have happened as of today,” Wilson added.
During Wednesday’s interview, Damrow said that both organizations will still provide the City with the financial information and other documentation it requires even if her organizations won’t participate in the concert series and the brick fundraiser for the library. She estimated that the information will be provided at least by the end of November, if not earlier. Damrow explained that both organizations had expressed concerns about the terms of the memorandums of understanding that the City had proposed. FOSHCA especially wanted to manage its own funds since it is an independent nonprofit organization, according to Damrow. FOSHCA has a trust account with the City of Signal Hill, and no officers of FOSHCA have signing authority on the account, Damrow explained.
Mayor Larry Forester left the Council Chambers before discussion began on this agenda item and did not vote. Forester serves on the board of directors for the Signal Hill Community Foundation.
Other City Council highlights:
Veteran Stand Down Day On behalf of the Greater Harbor Area Employer Advisory Council and Christian Outreach and Action, La Trice McBride presented a veteran’s award to the City. The award recognizes the City of Signal Hill for its support of Veteran Stand Down Day. Mayor Forester accepted the award on behalf of Signal Hill, acknowledging that the City had participated in the event held on Sept. 24 in Long Beach. The event focused on helping homeless veterans and supporting other veterans and their families as they transition to civilian life.
Redevelopment Agency The City Council voted 4-1 (Wilson dissenting) to adopt two ordinances that state an intention to comply with the voluntary redevelopment alternative program. A staff report from the city manager’s office indicates that the Agency may need to borrow more than $2.5 million from the City. Earlier this year, the California legislature passed two laws that would dissolve redevelopment agencies across the state unless they opted into a voluntary redevelopment program. Currently, the laws are being challenged in the courts, and a ruling is expected before Jan. 15, 2012.
25th Street improvements The City Council voted to authorize the city manager to award a contract worth more than $241,449 to FS Construction for a street-improvement project on 25th Street between Lewis and Orange avenues. The project scope includes asphalt repaving and new construction of curbs, gutters, and sidewalks. The City had initially budgeted $250,000 towards the project; however, contractor bids came in higher than what was originally anticipated, according to a staff report.
Cerritos Avenue Improvements Project The Council voted to transfer $25,000 from the Cerritos Avenue Improvements Project to cover construction contingencies. The new project is slated to begin construction within about a month.
Tattoo/body-piercing studios The City Council voted in a first reading to change a zoning ordinance to allow tattoo and body piercing studios to operate in specific commercial and industrial zones. The ordinance also prohibited these businesses from operating within 1,000 feet from designated “sensitive” areas that include residential zones, churches, parks and schools. They also voted unanimously to introduce another ordinance that incorporates by reference county health codes that regulate tattoo and body-piercing studios. The ordinance would give both the County and the City the authority to enforce these codes. Both ordinances will be voted on during a second reading, and the county health code issue will be discussed in a public hearing at that time.
Shell Pipeline Company The Council voted unanimously in a first-reading vote to pass an ordinance that would allow Shell Pipeline Company to operate their pipeline facilities in the City’s right-of-way areas.
The next City Council meeting will take place on Nov. 1 at 7pm in the Council Chambers.
