Support the LB businesses you see here:

Joe Sopo
Joe Sopo, Realtor has his pulse On LB. real estate. Click for info
.
Carter Wood Floor pic
Carter Wood Floors, a LB company, will restore your wood floor or install a new one. Enhance your home. Click pic.

Armor
Pollman's Insurance. Smarter Protection For Today's Risks. Click for info.

Lovelace pic
Bill Lovelace. LB DJ now has 21,000+ songs on computer for instant requests at your event! Click pic for more info.

Mike & Kathi Kowal
Mike & Kathi Kowal know Los Cerritos, Bixby Knolls, Cal Hts. and beyond. Click to learn more

NetKontent
NetKontent Digital Video Cutting Edge Services For The Internet, Broadcast and Multimedia. Click For Info


Ninos's Ristorante: A delicious treasure in Bixby Knolls. Click here if you're hungry or for catering!
3853 Atlantic Ave.

Your E-Mail
Click here

  • Neighborhood Groups/Meetings
  • How To Recall a LB Elected Official
  • Crime Data
  • City Council Agendas
  • Port of LB Agendas
  • E-Mail Your Council member
  • Council District Map
  • LB Parks, Recd & Marine
  • LB Schools
  • LB Airport Watchdog
  • Sacramento
  • Washington
  • References & Archives
  • Lost, Found & Adoptable Pets
  • LBReport.com

    News

    City Auditor Re Aquatics Festival:

  • No Fraud, Misappropriation Or Anyone "Who Lined Their Own Personal Pockets Inappropriately"
  • City Mgr. Got Finalized Written Report Dated Oct 4; Council Didn't See It Until Hours Before Oct. 19 Council Meeting, Public Even Later
  • LBReport.com Posts Document Online


    (October 20, 2004) -- At the October 19 City Council meeting, City Auditor Gary Burroughs delivered a report -- not available in final written form to Councilmembers until hours before the Council meeting, and to the public even later -- concerning losses by the Long Beach Convention and Visitors Bureau (a privately governed entity that receives roughly 3/4 of its annual operating budget from LB's hotel room taxes) in connection with this summer's Aquatics Festival.

    City Auditor Burroughs' report, undertaken at the request of City Manager Jerry Miller (an ex officio non-voting member of the CVB Board), says the CVB incurred losses of roughly $1,770,000 in connection with the event, which it said was organized, promoted and operated by the Long Beach Sports Council, Inc. The report says the LB Sports Council non-profit is an entity formed in April 2002 that shares certain members of its Board of Directors and officers with that of the CVB.

    In an accompanying extemporaneous verbal presentation to the Council, Auditor Burroughs said, "We did want to assure the public...that there was no fraud, there were [sic] no misappropriation, there was no one who lined their own personal pockets inappropriately and walked off with money."

    Regarding a number of related-party transactions described in his report, Auditor Burroughs commented:

    This event took a lot of effort from a lot of different people. The CVB was involved. The City was involved. SMG was involved. International City Bank was involved. The Grand Prix Association was involved. And a lot of local hotels were involved. I think their involvement was positive. From everything that I can see from the transactions that were involved because of the collective effort of a lot of businesses of this community, that they worked together in a spirit to get this project done, to do so on a cost effective basis -- that didn't end up being the final analysis or the final result but that was the expectation and I think that was the attitude and the culture of the people who tried to put this event and project together.

    I do not see a conspiracy here or an "insider issue" that causes me any problem...

    Councilwoman Rae Gabelich asked Auditor Burroughs for a list of the Sports Council's members [we presume board members]. City Auditor indicated [off mike] that he would provide one for her.

    LBReport.com posts extended excerpts of Auditor Burroughs' verbal presentation below.

    Auditor Burroughs' written report also indicates that $150,000 in city services were provided in connection with the event free of charge...which went unmentioned verbally during the Council meeting. The City Auditor didn't mention recouping this sum for taxpayers...and no Councilmember asked about it.

    Auditor Burroughs also added "there are potential exposures that the CVB has, and I don't have the full numbers for what they might be, for the NCAA Women's Volleyball Championship, which is an event that I think has not yet occurred." No Councilmembers publicly balked at this.

    Councilmembers voted to refer the report to the City Manager [who already received it two weeks earlier].

    Later in the Council meeting, Councilmembers agreed to a city management request to extend City Hall's contract with the CVB until the year 2014 (instead of the current 2007) and increase City Hall's payment to CVB in FY 05 by $201,000 to $3.9 million (separately reported by LBReport.com: Council Votes 7-0 To Approve CVB Contract Extension to 2014, Increased Funding.)

    As of the morning of the Oct. 19 Council meeting, Auditor Burroughs had not made his finalized written report -- dated Oct. 4 for transmittal to the City Manager -- available to Councilmembers or the public. In an informal survey of Council offices by LBReport.com, several indicated they received the Auditor's report in the afternoon of October 19.

    At the October 19 Council meeting, Auditor Burroughs said:

    I'm going to apologize to the City Council. We're here late at night and the City Auditor is delivering a report that at least by some standards might be late, so I apologize for that. I don't really want offer excuses but just one word of explanation. I really wasn't sure whether I was going to present this report to the City Council. I thought we were doing this, and in fact if you notice that my report is addressed to the City Manager, so originally I kind of thought that the report might be included as part of his presentation, but I think it is more appropriate that I do file this with the City Council for public record and since it is my report that I try to answer the questions that may come from this document.

    The item was agendized for Council discussion by October 15. When LBReport.com spotted the item and requested a copy from Auditor Burroughs' office, we were told a written version would be available on the afternoon of October 18 (the day before the Council meeting). On October 18 Auditor Burroughs' office provided us with a draft version, also dated October 4, that it said was not expected to change significantly from the final version. We did not post this draft document.

    On October 20, a copy of the Auditor's report was available in hard copy form at the City Auditor's office, and by late afternoon, was on line associatd with the City Clerk's Oct. 19 agenda web page.

    In the public interest, LBReport.com separately posts a copy of the City Auditor's report in pdf form. To view it, click City Auditor's Financial Review of LB Aquatics Festival (Oct. 4, 2004).

    In discussing his report at the podium, Auditor Burroughs told the Council:

    Auditor Burroughs: [speaking extemporaneously]...We did want to assure the public, at least from our point of reference from the work that we did, that there was no fraud, there were [sic] no misappropriation, there was no one who lined their own personal pockets inappropriately and walked off with money.

    And the other thing to note is that there were a lot of related party transactions for this event. And I just want to comment about those related party transactions because I have a feeling about them professionally and also as a citizen of this community and as an elected City Auditor of this community.

    This event took a lot of effort from a lot of different people. The CVB was involved. The City was involved. SMG was involved. International City Bank was involved. The Grand Prix Association was involved. And a lot of local hotels were involved.

    I think their involvement was positive. From everything that I can see from the transactions that were involved because of the collective effort of a lot of businesses of this community, that they worked together in a spirit to get this project done, to do so on a cost effective basis -- that didn't end up being the final analysis or the final result but that was the expectation and I think that was the attitude and the culture of the people who tried to put this event and project together.

    I do not see a conspiracy here or an "insider issue" that causes me any problem of [unclear, sounds like "reef"] or believes there was [sic] people who were taking advantage of this situation to line their own pockets.


    Return To Front Page

    Contact us: mail@LBReport.com

  •  


    Copyright © 2004 LBReport.com, LLC. All rights reserved. Terms of Use/Legal policy, click here. Privacy Policy, click here