Funds went to Rose Bowl

August 19, 2000

By Elizabeth Lee
Staff Writer

PASADENA -- Millions of dollars from Brookside Golf Course that were supposed to be used for Arroyo Seco improvements were never set aside for that purpose, and remained unknown to park advocates while Arroyo projects languished for lack of money, city officials said.

The funds equal 10 percent of the revenues from Brookside Golf Course since 1986, a total of more than $3.2 million.

Only $850,000 of that was spent on projects within the Arroyo -- and one park advocate questioned whether many of those projects, on the golf course itself, were appropriate uses.

The rest of it was deposited into the Rose Bowl's operating fund, which pays for stadium and golf course operations. The fund also pays for debt service and, until this year, paid for transfers to the city's General Fund.

City officials emphasize they always kept track of the accumulated total of Arroyo Seco funds -- and the money was fully restored this year in a reorganization of the Rose Bowl's finances.

But Arroyo Seco advocates who didn't know the funds even existed are now shaking their heads at the discovery, as they remember all the projects that have gone begging while the funds accumulated.

"That's a crying shame. Because what that means is, over that time period, (the money) could have been used to improve the Arroyo for public use," City Councilman Steve Madison said.

While it's in some ways a happy discovery, Madison said he wants a complete review of why the money wasn't set aside for its rightful purpose.

"I think it's incumbent on us to do a really thorough review," Madison said at a June council meeting. "It's extremely troubling that there was this contractual obligation to use funds in a certain way and it just wasn't done for years and years and years."

The Arroyo Seco -- an expansive river canyon stretching from the foothills to the Los Angeles River channel -- cuts through West Pasadena and includes Brookside Golf Course, the Rose Bowl, and Brookside Park. The three properties are all city-owned.

When American Golf signed a contract to run Brookside Golf Course in 1986, the contract devoted 10 percent of revenues to the city for "future projects related to the development of the Arroyo Seco."

The 10 percent set-aside was tallied over the years as it came in. The only problem was, the actual money wasn't set aside.

Instead, the money was deposited into the Rose Bowl's operating fund, which is used to operate the stadium and golf course, and to pay debt service. The operating fund has also paid for monetary transfers to the city's General Fund, which Pasadena required the Rose Bowl and golf course to do until this year.

That money, instead of being put in an operating fund, could have paid for badly needed Arroyo Seco restoration, said Tom Coston, president of the Arroyo Seco Foundation.

"It seems there's a lot of money that's been sitting around that could have been put to good use," Coston said.

Tree plantings, restroom repairs, field restoration, and studies of stream beds are all examples of things that needed funding, naturalists and recreation advocates say.

Even the set-aside money that was actually spent on the Arroyo was used primarily for golf course repairs, according to City Finance Director Jay Goldstone. Nearly $500,000 paid for things like the replacement of cart paths, resurfacing the parking lot, and clubhouse irrigation, all projects recommended by prior Rose Bowl officials and approved by various city councils, according to Goldstone and City Manager Cynthia Kurtz.

And, about $350,000 of the set-aside has been used for debt service on capital projects in the Arroyo, Goldstone said.

As for the remainder: He believes the city's failure to set it aside was simply an oversight.

"When I got here in 1996, it clearly was not on anybody's radar screen," Goldstone said. "I don't think it was intentional. For whatever reasons, it just wasn't done."

The mistake was quickly apparent to Rose Bowl Chief Financial Officer Larry Madden after he was hired two years ago to help the Rose Bowl assume control of its finances. Poor accounting, under a prior administration of the city Finance Department, was the reason the funds weren't earmarked, he said.

Madison was so disturbed by the error that he questioned at a June meeting whether an outside audit should be performed, but has since backed off that statement, saying he doesn't believe there was any misconduct.

But, he said, "Somebody should sit down and do a critical review of this: How did it happen and why did it happen?"

He believes the city should retroactively pay interest to the set-aside money -- which could be more than $1 million extra. So far, the city has added the interest only from last year, an extra $110,000.

There's also some disagreement over how the remaining money -- about $2.5 million -- should be spent. Some City Council members questioned whether things like golf course renovations are truly Arroyo Seco improvements. Mayor Bill Bogaard said he believes the intent was to benefit parks and undeveloped areas.

For the short term, $200,000 of the money will go toward clearing brush in the lower and central Arroyo, something Councilwoman Joyce Streator said was desperately needed to protect the area from fires.

In the long term, Rose Bowl and city leaders will try to determine how to spend the remainder. City Manager Cynthia Kurtz believes the stadium and golf course should be eligible for funds, as well as parks and natural areas.

"My opinion is, the council always ought to have as much latitude as possible," Kurtz said. "They should have the latitude to spend it anywhere in the Arroyo, whether it's at the Rose Bowl or in a natural area."

She added, however, "I think it's definitely the desire of the (current) council to spend it in the natural areas, and not the golf course and Rose Bowl."

The funds equal 10 percent of the revenues from Brookside Golf Course since 1986, a total of more than $3.2 million.

Only $850,000 of that was spent on projects within the Arroyo -- and one park advocate questioned whether many of those projects, on the golf course itself, were appropriate uses.

The rest of it was deposited into the Rose Bowl's operating fund, which pays for stadium and golf course operations. The fund also pays for debt service and, until this year, paid for transfers to the city's General Fund.

City officials emphasize they always kept track of the accumulated total of Arroyo Seco funds -- and the money was fully restored this year in a reorganization of the Rose Bowl's finances.

But Arroyo Seco advocates who didn't know the funds even existed are now shaking their heads at the discovery, as they remember all the projects that have gone begging while the funds accumulated.

"That's a crying shame. Because what that means is, over that time period, (the money) could have been used to improve the Arroyo for public use," City Councilman Steve Madison said.

While it's in some ways a happy discovery, Madison said he wants a complete review of why the money wasn't set aside for its rightful purpose.

"I think it's incumbent on us to do a really thorough review," Madison said at a June council meeting. "It's extremely troubling that there was this contractual obligation to use funds in a certain way and it just wasn't done for years and years and years."

The Arroyo Seco -- an expansive river canyon stretching from the foothills to the Los Angeles River channel -- cuts through West Pasadena and includes Brookside Golf Course, the Rose Bowl, and Brookside Park. The three properties are all city-owned.

When American Golf signed a contract to run Brookside Golf Course in 1986, the contract devoted 10 percent of revenues to the city for "future projects related to the development of the Arroyo Seco."

The 10 percent set-aside was tallied over the years as it came in. The only problem was, the actual money wasn't set aside.

Instead, the money was deposited into the Rose Bowl's operating fund, which is used to operate the stadium and golf course, and to pay debt service. The operating fund has also paid for monetary transfers to the city's General Fund, which Pasadena required the Rose Bowl and golf course to do until this year.

That money, instead of being put in an operating fund, could have paid for badly needed Arroyo Seco restoration, said Tom Coston, president of the Arroyo Seco Foundation.

"It seems there's a lot of money that's been sitting around that could have been put to good use," Coston said.

Tree plantings, restroom repairs, field restoration, and studies of stream beds are all examples of things that needed funding, naturalists and recreation advocates say.

Even the set-aside money that was actually spent on the Arroyo was used primarily for golf course repairs, according to City Finance Director Jay Goldstone. Nearly $500,000 paid for things like the replacement of cart paths, resurfacing the parking lot, and clubhouse irrigation, all projects recommended by prior Rose Bowl officials and approved by various city councils, according to Goldstone and City Manager Cynthia Kurtz.

And, about $350,000 of the set-aside has been used for debt service on capital projects in the Arroyo, Goldstone said.

As for the remainder: He believes the city's failure to set it aside was simply an oversight.

"When I got here in 1996, it clearly was not on anybody's radar screen," Goldstone said. "I don't think it was intentional. For whatever reasons, it just wasn't done."

The mistake was quickly apparent to Rose Bowl Chief Financial Officer Larry Madden after he was hired two years ago to help the Rose Bowl assume control of its finances. Poor accounting, under a prior administration of the city Finance Department, was the reason the funds weren't earmarked, he said.

Madison was so disturbed by the error that he questioned at a June meeting whether an outside audit should be performed, but has since backed off that statement, saying he doesn't believe there was any misconduct.

But, he said, "Somebody should sit down and do a critical review of this: How did it happen and why did it happen?"

He believes the city should retroactively pay interest to the set-aside money -- which could be more than $1 million extra. So far, the city has added the interest only from last year, an extra $110,000.

There's also some disagreement over how the remaining money -- about $2.5 million -- should be spent. Some City Council members questioned whether things like golf course renovations are truly Arroyo Seco improvements. Mayor Bill Bogaard said he believes the intent was to benefit parks and undeveloped areas.

For the short term, $200,000 of the money will go toward clearing brush in the lower and central Arroyo, something Councilwoman Joyce Streator said was desperately needed to protect the area from fires.

In the long term, Rose Bowl and city leaders will try to determine how to spend the remainder. City Manager Cynthia Kurtz believes the stadium and golf course should be eligible for funds, as well as parks and natural areas.

"My opinion is, the council always ought to have as much latitude as possible," Kurtz said. "They should have the latitude to spend it anywhere in the Arroyo, whether it's at the Rose Bowl or in a natural area."

She added, however, "I think it's definitely the desire of the (current) council to spend it in the natural areas, and not the golf course and Rose Bowl."