Posts

step and merit increases were premature

Ventura’s Imperfect Evaluation On Step And Merit Increases

Confucius on Ventura's step and merit increases

The man who asks a question is a fool for a minute, the man who does not ask is a fool for life.”

Confucius

Time will tell if Ventura made a good choice with step and merit increases

No one makes a lifetime commitment based on a single moment in time. Yet, the Ventura City Council made just such a commitment. In November 2020, they awarded step and merit increases to city employees based on revised sales tax figures. This decision is disturbing on several levels:

  1. The city staff led the Council to believe financial conditions were improving based on very short-term statistics.
  2. The people benefiting from the salary increases were the ones making the recommendation.
  3. Our elected officials failed to question the rosy picture the staff presented during the pandemic economic shutdown.

How Did We Get Here?

In the city’s fiscal year 2020-2021, the Ventura City Council faced a $12.0 million budget deficit due to California’s coronavirus shutdown. The city staff recommended a dozen possible solutions to the problem. Among them was the option to ‘defer’ $1 million in employee salary increases for step and merit increases until financial conditions improved.

As a provision of the FY2020-21 budget, former-Mayor Matt LaVere, the City Council and all the bargaining units agreed to freeze employee step and merit increases as a down payment on the massive reductions necessary in the year ahead.

Mid-Course Correction

The City Council receives regular updates on sales tax revenue collected. These reports include recent figures and may also include projections based on current trends. The updates are very short-term, especially in the early part of the fiscal year. Predictions made from these limited data may seem overly optimistic. Any upward trend tempts city staff and the Council to overreact. Past City Councils have been guilty of spending money from these projections because they seemed ‘good.’ The tendency is to see these projections through rose-colored glasses.

Step and merit increases were part of a mid-course correction

What Was The New Projection That Justified The Step And Merit Increases?

To everyone’s surprise, the September sales tax report update was higher than anticipated. The city staff projected that General Fund would be $1.657 million higher than forecasted. The City Council seized this as the ‘green light’ to reinstate the employee step and merit increases.

At the November 9, 2020 meeting, the Council rescinded the suspended step and merit salary increases for city employees. The suspension lasted only eight months, from March to November 2020.

Was The Decision To Grant Step And Merit Increases Logical?

Awarding step and merit increases puts Ventura on thin iceThe Council made its November decision based on data presented on September 23, 2020, a month and a half earlier. The Council received no updated data on which to decide. If they had, the decision might have been different.

In a report prepared by Michael Coon, the Director of Finance & Technology, after the Council’s November 9th decision, the $1.657 million surplus became a $483K deficit.

By the January 2021 Budget Workshop presentation to the new Council, the General Fund was positive again by $264,000. Mr. Coon admitted that $264,000 is a slim margin on a $116 million budget (0.2%).

What’s Happening With The General Fund?

The $1.657 million General Fund surplus presented in September 2020 was misleading. Yes, sales tax revenue was higher, but that didn’t account for the excess. Two unique, one-time events inflated the figures.

The General Fund received $2.0 million from the CARES Act funding. The city also received a donation from the Marion Schwab Trust.

Without these two rare revenue infusions, the city would have had $2.4 million less revenue than the city staff led the Council to believe when deciding to award the step and merit increases.

What’s more, on September 24, 2020, the city staff failed to mention the City Council’s risks to the General Fund. Player’s Casino Card Room sales taxes, parking violations, and Parks & Recreation programming were below budget. Mr. Coon’s November 2020 report shows revenue fell more than $5.2 million below budget in those three areas.

The Result Of Their Actions On Raises

In June, Councilmember Jim Friedman warned of an “absolute financial disaster” in the coming years if the city doesn’t continue to cut spending. Yet, the City Council reversed their earlier spending restraint and awarded over $719,000 in pay increases to city employees.

In June 2020, City Manager Alex McIntyre spoke of “shared sacrifice” when announcing the step and merit increases. Today, thousands of Ventura residents are not working. And those private-sector workers that remain employed may experience outright cuts in their pay and hours. Scores of businesses are closed by the pandemic and face bankruptcy. At City Hall, where jobs and salaries are guaranteed, things look very different, however.

What Can We Do?

Every budget cycle, the city goes through the same experience. The budget process begins in January and ends in June for the following year’s budget. Each year, the city staff presents their best estimate of what next year will bring. Often, those Staff recommended step and merit increases and the Council followed like chickens with their heads cut offestimates are optimistic. “We believe we’re conservative not to paint too bleak a picture,” Mr. Coon told the City Council on January 11, 2021. And, our City Council makes long-term decisions based on the short-term data they receive.

Staff isn’t always right. No one has examined the budgeting process for a long time. Periodically, it would be a good idea to have independent, outside consultants provide an unbiased analysis of Ventura’s budgeting. This evaluation should be different from the accountant’s review of the Comprehensive Annual Financial Report (CAFR), which is always 18 months in arrears.

Editors Comments

We believe the City Council made the November decision to award the step and merit increases on flawed forecasts from staff. The City Council accepted the General Fund revenue would be $1.657 million higher in the middle of a pandemic. The Council decided based on a September bump in the sales tax revenue for the first four months of the fiscal year 2020-21. And, the data didn’t include the all-important Christmas season sales tax revenue. The Council made long-term decisions based primarily on short-term data.

Step and merit increases were justified by improved sales tax revenueIt seems clear that city staff provided fluid, optimistic data to the Council for their decision. Mr. Coon explained the projections, saying, “We are feeling alright with the additional projection of $1.5 million in Sales Tax for the current fiscal year. It is something that we definitely want to keep an eye on, especially if we start to see more businesses close.

“Currently, we are basically projecting that we will receive the same amount of Sales Tax this fiscal year that we received last fiscal year…the city would have received about $30 million in sales tax for FY 20-21 without the pandemic. So, the projections do factor in about a 10% decline from the activity that was seen in Jul-Dec 2019. This decline isn’t on the higher end because online sales tax collection is doing so well and offsetting the losses of some of the brick and mortar stores that are experiencing losses at the higher end of the spectrum.”

At a higher level, citizens should be concerned about this process. The same people who prepare the reports used to decide salary increases are the same people who get the raises.

Our concern isn’t with the exact budget numbers. We question using numbers provided by the very people who enjoy the increases. We also have reservations about the Council relying on unseasoned numbers over time.

And, we’re disappointed by the elected officials that failed to question staff’s rosy projections when we’re in the middle of a pandemic. There were variations in the General Fund projections from September 2020 to November 2020 to January 2021. Two different City Councils spanned that period. One would have hoped that at least one Councilmember would have remarked on the General Fund’s changes from positive to negative and back to slightly positive over that time. Yet, no one did.

Only four Councilmembers remain from the group that awarded the increases. They are Lorrie Brown, Jim Friedman, Erik Nasarenko and Sofia Rubalcava. At the January 2021 budget workshop, two Councilmembers (Ms. Brown and newcomer Mike Johnson) expressed concern about the COVID-19 impact on the city’s finances. One wonders why the other five didn’t share the same anxiety. We hope that the new Council will be more rigorous in asking questions when preparing next year’s budget.

Write Directly To Your City Councilmember To Insist They Ask More Insightful Questions During Budgeting

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Sofia Rubalcava voted for step and merit increases Doug Halter wasn't on the Council when they voted for step and merit increases
Mike Johnson wasn't on the Council when they voted for step and merit increases Erik Nasarenko voted for step and merit increases
Jim Friedman voted for step and merit increases Lorrie Brown voted for step and merit increases
Joe Schroeder wasn't on the Council when they voted for step and merit increases

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

 

 

Councilmembers

How To Connect To Your 2020 Ventura City Councilmembers

Councilmembers

To make democracy work, we must be a nation of participants, not simply observers.
—Louis L’Amour

Our federalist system gives us many opportunities to participate in our democracy. Some forms of participation are more common than others. And some citizens participate more than others, but almost everyone has a voice in government.

Meet Your 2020 City Councilmembers

We have a new Ventura City Council for 2020. We have three newer Councilmembers and four seasoned members. Each of them has an email account with the city. Not everyone knows how to contact them, though.

Governing By Districts

For the first time in Ventura’s history, our Councilmembers were elected by districts. While each Councilmember was elected by constituents in their district, they serve the entire city. You should feel free to contact any Councilmember regardless of the district in which you live.

City Council Elections In 2020

This is an election year for Ventura’s City Council. In November, three seats will come up for re-election. These three seats will be voted on by districts. Districts 2, 3 and 7 will vote. Christy Weir will run in District 2. Cheryl Heitmann will run in District 7. Mayor Matt LaVere has announced he is running for higher office, so District 3 will have an open seat and s0meone new will represent them after the election.

Click On A Councilmembers Photo To Email

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Let then know what you’re thinking. Tell them what they’re doing right and what they could improve upon. No matter what you write, however, share your opinion. Not participating in government makes us worse because our city government isn’t working for all of us.

Councilmembers Councilmembers
Councilmembers Councilmembers
Councilmembers Councilmembers
Councilmembers

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

Scrutinizing Travel Expenses From Conferences

Do You Know The Truth About Ventura’s Spending On Conferences?

Conference spending

Three groups spend other people’s money:  children, thieves and politicians.  All three need supervision.”

—Dick Armey

Examing Conferences Expense

The cost and benefit of every spending decision by Ventura’s City Council is magnified as the city faces budgetary losses for the next five years. The city is projecting to have a $10-$25 million shortfall during that time, so the City Council should be more careful how it spends tax dollars. Are we getting our money’s worth from our Councilmembers’ travel to conferences and seminars?

The City Councilmembers don’t think anyone is watching their spending or cares what they do. They believe voters gave them the mandate to be concerned with the details of how and where the city spends money. And, they’re right—to a degree. While citizens fret over the large expenditures on pensions, water, public safety, and staffing, it’s easy to overlook the spending habits of our elected officials.

Conference Boondoggles

The city publishes the expenditures by each sitting Councilmember quarterly. Here’s a summary of the expenses for the past three full fiscal years of the active members of Council:

Councilmember Spending On Conferences

It’s immediately clear that the spending by the active Councilmembers is rising year-over-year. It jumped 32% to $15,964 from $12,039 from Fiscal Year 2016-2017 to Fiscal Year 2017-2018. It increased 76% to $28,098 from $15,964 from Fiscal Year 2017-2018 to Fiscal Year 2018-2019.

Highlighted in yellow is the amount spent each year to attend the National League of Cities (NLC) Conferences. The NLC holds regional conferences and a national conference in Washington, DC.

Where’s The Value From The Conferences?

Ventura taxpayers get little information about the benefits the city derives from these conferences. There are no written reports of what the attendees accomplished. Sometimes, there is a verbal report made to the Economic Development Committee of what happened, as we see in the Agenda for the April 2nd meeting.

No Value for Attending Conferences

There are no meeting minutes posted for the public of the Economic Development Committee meetings. Nor are the sessions videotaped. There is no permanent record of what happened. There are no archives to refer to in the future. What’s more, the entire City Council doesn’t hear about the findings.

If all the value we receive is a report on the “relevant legislative issues from the NLC,” do we need to send representatives to Washington, D.C.? Couldn’t we get the same information by email or in written form? If we did, there would be a permanent record of the discussions for others to review.

The Value Is In The Connections

The attending City Councilmembers may claim the value of attending these meetings is in the contacts Ventura nurtures with other politicians throughout the country. That’s a specious argument. The relationships are personal between our serving Councilmembers and the people they meet. Those relationships break whenever our Councilmember or his/her contact leaves the office. What’s more, the value in a relationship with a politician in another city has a small direct impact on Ventura.

Auditing ConferencesThe justification may be to learn the “best practices” from other cities attending the conferences. What best practices did we learn on homelessness from representatives from Sacramento, Los Angeles, San Francisco, or Seattle? Homelessness in those cities is worse than it is in Ventura, and it’s not improving. Or did we learn something about water from Sacramento? Except, the California River Tunnel isn’t working out so well. Or did the reps from Washington, D.C., or Sacramento teach us about budgeting? The fact is, our reps need to convey any best practices we learned at those conferences need to city staff. The staff are the ones to put in place new ideas in City Hall. And without written guidelines, implementing the changes is nearly impossible.

The truth is any networking with others at these conferences is nothing more than socializing. Should we pay the expenses for two Councilmembers to hobnob with politicians? No.

Next Conference

Attending Conferences

Mayor Matt LaVere, Deputy Mayor Sofia Rubalcava, and Councilmember Brown are attending the National League of Cities Regional Meeting in Long Beach, CA, on October 16-18, 2019. What value will Ventura get from sending three Councilmembers to this meeting?

Editor’s Comments

In the best of times, these conferences may benefit Ventura, but these are not the best of times. The city faces a multimillion-dollar shortfall over the next five years. Frivolous spending of any kind must not happen, regardless of the dollar amount spent. Spending taxpayer money on these seminars and conferences may appear to be harmless at first. Still, scrutinize each trip to decide whether it’s a necessity. And if it is determined to be necessary, the value must outweigh the expense.

Tell City Council, “Spend Better On Conferences!”

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Councilmembers
Councilmembers
Councilmembers Councilmembers

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

It Was The Best And Worst Of Times For Ventura In 2018

“Those who fail to learn from history are condemned to repeat it.”— Winston Churchill

Last year was a most transformational year in Ventura’s history. Every aspect of life in Ventura was affected. The city was in the national spotlight, twice. Leadership changed but at a high price. Old ways of doing business didn’t change, though. Overall, it was a year to remember.

December 2017

To understand 2018, you must appreciate December 2017 and the Thomas Fire. The fire destroyed 535 houses in Ventura. The city was the epicenter of the national news.

Thirteen months later, Ventura had the opportunity for the most significant economic stimulus since the oil boom but failed to capitalize on it. Rebuilding the homes will stimulate the local economy by $350 million. The only thing standing in the way of that economic windfall is the city.

What are the lessons we learned from the Thomas Fire? Good question. Thirteen months later we still don’t know that answer. The city has yet to produce a report on its findings. [Read More]

January 2018

The Montecito mudslides closed off transportation into and out of Santa Barbara along the 101. Many Venturans that work in Santa Barbara were unable to commute.

March 2018

The City Council waffles on second-story height restrictions for rebuilding Thomas Fire victims’ homes, delaying the rebuilding process and adding costs for many. [Read More]

April 2018

Jamal Jackson slays Anthony Mele, Jr. on Ventura’s promenade. Once again, the city was thrust into the national news.

Ventura Police increased patrols along the promenade. The City Council approved funds to continue the patrols. Arrests increased after the incident.

Post-incident, the Police department reviewed its procedures. There have been changes to the security camera monitoring as a result. The review also concluded the call was not improperly prioritized when it came in two and a half hours before the murder.

Since May, the community has returned to business as usual. [Read More]

June 2018

Ventura Police officers sign a new contract with a 5% pay increase. The timing of the announcement was questionable, but the contract was a fair one. [Read More]

July 2018

The City Council instructs Ventura Water to focus on connecting to State Water over Direct Potable Reuse (DPR). DPR takes recycled wastewater and injects it back into the drinking supply.

The City Council approves a $600,000 per year “roving” fire engine and three paramedics over the objections of Interim City Manager Dan Paranick. Ventura Fire hired two of the three paramedics before the Council approved the funding. [Read More]

September 2018

Ventura Water hires eight new positions. The City Council approved the department’s budget that included these positions. Ventura Water based that budget on Direct Potable Reuse (DPR) projects being the city’s top priority. When the Council realigned Ventura Water’s priorities in July, the department didn’t adjust its manpower requirements.

October 2018

Ventura Water begins installing new digital water meters. It is a $9 million project that will take three years to complete. The new meters allow more precise leak protection. The new meters also measure water usage more precisely. You can expect your water bill to be more accurate, too.

November 2018

Ventura held its first City Council elections by voting district. Lorrie Brown (District 6), Jim Friedman (District 5), Erik Nasarenko (District 4) and Sofia Rubalcava (District 1) won. The candidates raised a record amount of money, despite campaigning in districts instead of citywide. The cost-per-vote skyrocketed to win a seat from $2.75 per vote in the last election with an open position to a record-high $26.42. [Read More]

City Council Election

December 2018

Alex McIntyre starts as City Manager. He replaces Mark Watkins who resigned in November 2017. The city had operated with an interim-City Manager since January 2018. McIntyre comes to Ventura from Menlo Park where he was City Manager for six years.

Ventura’s new City Councilmembers are sworn in. The Council has four female members: Lorrie Brown (District 6), Cheryl Heitmann (District 7), Sofia Rubalcava (District 1) and Christy Weir (District 2). Ventura has its first female-majority City Council in history. It’s also the most diverse set of Councilmembers the city has ever had.

Wish The Councilmembers Good Luck In 2019

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Councilmembers Councilmembers
Councilmembers Councilmembers
Councilmembers Councilmembers

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

What Do You Think Of The Tactics Used By Ventura Fire?

Pensions, Ventura Fire

Ventura Police officers sign a new contract with a 5% pay increase. The timing of the announcement was questionable. It came on the heels of the Anthony Mele, Jr. murder. However, the agreement was a fair one.

Ventura Fire Unhappy With The Proposed Contract

bad city council contract, Ventura Fire

Agreed upon union contracts form the basis for negotiating other city union contracts. In this case, Ventura Firefighters are unhappy. Union Leader Captain Shawn Hughes says the union voted against a similar pay raise. He wrote Councilmembers, “We are demanding change. Working conditions need immediate attention. The citizens of Ventura deserve properly staffed public safety departments.” Captain Hughes earns $216,885 per year in pay and benefits—putting him in the top 5% of wage earners in the country.

In April, Hughes began his campaign for higher pay. He emailed the City Council, Interim City Manager Dan Paranick and Fire Chief Endaya. Hughes contacted individual Councilmembers behind the scenes to negotiate a better deal.

The Fire Union Turns Up The Heat

Ventura Fire

In early May, Hughes ratcheted up his behind the scenes negotiations. He formally requested the City Council stop all public education and outreach immediately. He reasoned that public awareness was “now an unsafe practice. “We need to maximize the number of available resources to maintain public safety that this community demands.”

In short, Hughes was exhorting the Council. He was demanding all public outreach stop until the city hired those firefighters.

The fire union contributed to several Councilmembers’ campaigns. Current Councilmembers Jim Friedman, Cheryl Heitmann, Matt LaVere and Erik Nasarenko received contributions.

On January 14, 2019, the City Council consented to accept VFD’s salary increases. The increases were the same as the Police Union received.

New construction after Thomas Fire

Ventura Has Opportunity To Improve After The Thomas Fire

Improve After The Thomas Fire

The City Council waffled on second-story height restrictions for rebuilding victims’ homes. Indecisiveness delayed the rebuilding process for many. Councilmembers exhibited big hearts and small brains settling on the new height ordinance. They attempted to please fire victims wanting to improve their homes. Doing so delayed rebuilding for everyone. It was clear that many of the burned houses would have to come up to existing building codes. Many of the homes were built decades ago when the codes weren’t as strict. Plus, setbacks from the street had also changed. For fire victims to rebuild their houses “as is” would cost more. The new home would have a different footprint on the lot and impede neighbors’ views.

What’s more, some homeowners wanted to change the design of their new home since they were rebuilding. To please those homeowners, the Council created exceptions. They decreed restoring a home could include as much as 10% increase in the size of the structure. While well-meaning, this decision meant every house was a custom-built home. The decision put added pressure on city staff when reviewing and approving plans. And it further delayed homeowners receiving building permits.

There was another consequence of the Council’s lack of urgency. Most homeowners’ insurance provides 18-24 months of living expenses while rebuilding. The Council’s delay will force rebuilding beyond 24 months for many homeowners. As a result, those homeowners will have an added financial burden. They will pay for temporary living expenses when their insurance runs out. Plus, they will also be paying their mortgage on a destroyed home.

Don’t Miss This Chance To Improve After The Thomas Fire

The City Council’s inaction delayed a significant economic stimulus for Ventura. It reinforced the perception that Ventura lacks urgency and is bureaucratic. Now, there is a new City Council. We hope they’ll look at this process with a fresh perspective. If they do, they’ll see the need for change. We want them to force the city staff to streamline and simplify the building and permitting process.

Powerful VFD Union Exerts Its Strength On The Council

The City Council approves a $600,000 per year “roving” fire engine and three paramedics in June 2018. Ventura Fire insisted they needed the engine because response times “were especially high.” He gave no information on what’s driving the increased calls for help. Nor did he offer any cost-effective alternatives to deliver the services.

Uncertainty Over The Fire Engine

Interim City Manager Paranick did not recommend funding the roving engine in 2018. He said, “I haven’t gotten myself to a place where I’ve been comfortable yet, where I could sit here and justify the need based on demand. That’s why I did not recommend it.”

Ventura Fire Chief David Endaya wasn’t sure what targets the roving engine could hit, or by how much response times could fall.

Even so, Councilmembers Cheryl Heitmann, Matt LaVere, Jim Monahan and Erik Nasarenko voted for it. Councilmembers Mike Tracy and Christy Weir voted against it.

The Reason VFD Got Its Fire Engine

What motivated four Councilmembers to override the City Manager’s recommendation? Why did they believe the city needed to spend $600,000 in 2018? Simple. In late May, Union Leader Battalion Chief Doug Miser requested a meeting with each Councilmember. He wrote, “As you are hopefully aware, every single member of the Ventura Fire Management group dedicated a significant amount of time in call banks and walking districts to pass Measure O. We believe we are way past due in staffing another fire station in the city.” Two months later, the Ventura Fire Department had a new engine and three new paramedics.

The Councilmembers heard Miser’s message loud and clear. Ventura Fire contributed during their campaigns. Ventura Fire helped deliver Measure O money to the city’s General Fund. Now, it’s time for quid-pro-quo.

What’s more, Chief Endaya announced a hiring decision. He hired two of the three paramedics before they approved the roving fire engine. He said they’d been “over-hired” in anticipation of adding City Fire positions.

Councilmembers

How To Connect To Your 2019 Ventura City Councilmembers

Louis L'Amour

To make democracy work, we must be a nation of participants, not simply observers.
—Louis L’Amour

Our federalist system gives us many opportunities to participate in our democracy. Some forms of participation are more common than others. And some citizens participate more than others, but almost everyone has a voice in government.

Meet Your 2019 City Councilmembers

We have a new Ventura City Council for 2019. We have three new Councilmember sand four incumbents. Each of them has an email account with the city. Not everyone knows how to contact them, though.

Governing By Districts

For the first time in Ventura’s history, our Councilmembers were elected by districts. While each Councilmember was elected by constituents in their district, they serve the entire city. You should feel free to contact any Councilmember regardless of the district in which you live.

Click On A Councilmembers Photo To Email

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Let then know what you’re thinking. Tell them what they’re doing right and what they could improve upon. No matter what you write, however, share your opinion. Not participating in government makes us worse because our city government isn’t working for all of us.

Councilmembers Councilmembers
Councilmembers Councilmembers
Councilmembers Councilmembers

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

Brooks Institute Settlement

Is The City Hiding The Truth From You About Brooks Institute?

Three things cannot be long hidden: the sun, the moon, and the truth. —Buddha

 

The City Cuts And Runs On Brooks Institute Debacle

Citizens Short Changed

The folks at City Hall are trying hard to put on a brave and jubilant face in trying to explain why their decision to accept $71,000 to settle a lawsuit against Brooks Institute is a victory. Readers of this letter know better. The settlement does not even cover the rents and security deposit that Brooks was to have paid in the first 6 months of their lease or the future lost rents and property damages.

By our best estimate, there was $61,000 in lost rent Brooks Institute was to pay under the lease for 6 months in 2016. Also there is the $200,000 it will cost in tenant improvements to return the space to leasable condition. Add to that the undisclosed amount the city spent in legal fees and staff time to reach this point, there is well over $261,000 lost in this settlement.

History of Events

The Brooks Institute example is a case study in ineptitude

On March 1, 2016, after meeting with the then Mayor of Ventura and downtown property owners, Brooks executed an office lease for the 4th and 5th floors at 505 Poli Street, behind City Hall. That lease was for a period of 6 months with provisions of four -1 year options to extend.

The contract expressly provides that concurrent with the signing of the lease with Brooks, prior to their taking take possession, had to first pay a security deposit of $10,181.20, first months rent of $10,181.20 and last months rent of $17,390.65, for a total of $37,753.05.

The money was never paid. Yet the City allowed Brooks and their contractors’ access to enter the premises to tear out the offices in the building and start building out their new space. City personnel knew it. Engineering plans and permits were expedited and the work commenced.

It was never completed. Brooks walked away from the project in August, 2016. No rent was paid for July through December, 2016. An additional loss of $61,087.20.

On December 22, 2016, the City Attorney filed a complaint seeking damages for lost rents and security deposit ($84,936), the cost of repairing and restoring the property destroyed by Brooks in starting to perform tenant improvements (according to proof at trial) attorneys fees and punitive damages.

That lawsuit was against Brooks Holdings, LLC., Green Planet Inc., dba GPHomestay, a Massachusetts Corporation, and Xinwie Lin, the primary stockholder of Green Planet. The only person that signed the leases agreement with the City was Edward M. Clift as President of Brooks Holdings, LLC. This company had been formed, one year before, to acquire a bankrupt Brooks Institute of Technology.    Nobody else signed any agreements, contracts or guarantees.

Brooks Institute paid no money to the City for rent, no money for a security deposit and no money to restore the tenant improvement their contractor destroyed at 505 Poli.

A Lease “Approved As To Form” by City Attorney

To further compound this enormous error, the written lease agreement did not have any provisions for a performance bond and no performance guarantees signed by Green Planet or Ms. Xinwie Lin. They all orally assured our Mayor, the city staff and the City Council that they were financially sound and would bring a thriving school of higher learning to the community for many years. You know, “trust us”, our word is our bond.

City Attorney Gregory Diaz closes the book on Brooks institute

Those promises and assurances proved false and evaporated after 4 months. City leaders were blinded by glittering opportunity, dollar signs and the prospects that all of this wonderful development would come to the downtown. City leaders were so caught up in this “wonderful idea” that economic reality was ignored.

When the City Attorney, the same person who negotiated this settlement, signs a lease as “Approved As To Form”, does he have a responsibility to ask why the lease didn’t have any guarantees or bonds?

We may never get an accurate reporting of what the damages are in fact. Loss of future rents from other potential tenants, costs of repairing the property and legal costs. We were assured however that “the City is conducting a through process review to determine what caused the delay to collect the amount due from Brooks, and that we (they) will also be developing a better administrative process to prevent this from happening in the future. The City takes this issue seriously and we (they) strive to promote transparency at the highest level”. Now, City Attorney Gregory Diaz tells the Ventura County Star, “This matter is now closed.”

To our knowledge, the city never informed the public of the results of that review process. In fact, no one knows if the city actually performed the review.

The only noble gesture in this entire debacle was the public apology of then City Manager, Mark Watkins, who accepted full responsibility. He has since retired. As for a certain member of the City Council, they were not quite so noble, quickly throwing anyone and everyone under the bus in attempt to divert attention from their foolish folly.

Call for Action

Demand accountability from city officials.

Brooks Institute is a case study in ineptitude. Only this time it’s different. We can hold city officials to their promise. City staff committed to investigate the process thoroughly and make changes. Ask to see the results of that investigation. Ask to look at the changes to the review process the city implemented as a result of that investigation.

Click on any one of the pictures of City Councilmembers below. Your email program will open automatically. Write to your elected officials. Demand to learn what changes the city’s made following the Brooks Institute breakdown. It’s your right as a citizen to know the city is working in your best interest. It’s your right to know how they are changing to prevent it from happening again.

Editors’ Comment

In the private sector, when a so-called “good deal” goes bad for lack of common sense and due diligence people are deservedly fired.. In the public sector there are zero consequences, only platitudes and assurances “that this will never happen again” or “we will strive to promote transparency.”

The City Council directly hires two people, the City Manager and the City Attorney. While the City Manager recently retired/resigned, after the Brooks Institute debacle, the City Attorney should be under greater scrutiny.

Demand To Know What Changes Have Been Made To The Real Estate Process As A Result Of Brooks Institute

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program so you can write directly to that Councilmember.

Let them know what you’re thinking. Tell them what they’re doing right and what they could improve upon. Share your opinion. Not participating in government weakens our democracy because our city government isn’t working for all of us.

Neal Andrews, Mayor

Matt LaVere, Ventura City Council

Matt LaVere, Deputy Mayor

Cheryl Heitmann

Jim Monahan

Erik Nasarenko

Mike Tracy

Christy Weir

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.

How To Connect To Your 2018 Ventura City Councilmembers

Louis L'Amour

To make democracy work, we must be a nation of participants, not simply observers.
—Louis L’Amour

Our federalist system gives us many opportunities to participate in our democracy. Some forms of participation are more common than others. And some citizens participate more than others, but almost everyone has a voice in government.

Meet Your 2018 City Councilmembers

We have a new Ventura City Council for 2018. We have one new Councilmember and six incumbents. Each of them has an email account with the city. Not everyone knows how to contact them, though.

Click On A Councilmembers Photo To Email

Below you’ll find the photos of our current City Council. Click on any Councilmember’s photo and you’ll open your email program ready to write directly to that Councilmember.

Let then know what you’re thinking. Tell them what they’re doing right and what they could improve upon. No matter what you write, however, share your opinion. Not participating in government makes us worse because our city government isn’t working for all of us.

Neal Andrews, Mayor

Matt LaVere, Ventura City Council

Matt LaVere, Deputy Mayor

Cheryl Heitmann

Jim Monahan

Erik Nasarenko

Mike Tracy

Christy Weir

For more information like this, subscribe to our newsletter, Res Publica. Click here to enter your name and email address.