The Rose Bowl Operating Company (RBOC) would like to expand on the comments contained in an article published Dec. 13. Without including these comments the article would lead a reader to believe that the RBOC had not correctly handled the expenditure of special funds, which were earmarked for use in the Arroyo Seco.

Part of the mission given the RBOC by the city is to establish a separate and viable enterprise and to manage and to account for all of its income and expenses. The city of Pasadena and the RBOC have been working diligently together to separate the financial accounts of the Rose Bowl from the city since the time that the RBOC took over that fiscal responsibility in July of 1999. In those past 18 months, officials of the city and the Rose Bowl have met regularly to help clarify the financial responsibilities of the Rose Bowl to the city.

There is currently a contract with American Golf for the management of the Brookside Golf Course and which dates back to 1985. This contract creates a 10 percent set-aside fund earmarked for "future projects related to the development of the Arroyo Seco." The city manager's proposal for future expenditure of that fund, set forth in a report dated Nov. 12, 2000, would allow the city's Parks and Recreation Commission and the RBOC to present suggestions for capital projects in the Arroyo, with the final budgetary decision to be made by the City Council.

The history of expenditures of this special fund predates the creation of the RBOC as well as most of the present staff who oversees the fund. In the process of preparing for the discussion at the Business Enterprise Committee (BEC) meeting of Dec. 6, to consider the city manager's proposal on how to expand the fund, it was the RBOC staff who brought to light a 1992 City Council action (taken before the RBOC was formed) to use the fund to capitalize a 1992 Bond issue.

It is our belief that the City Council has taken reasoned and fiscally responsible actions to properly manage the fund and the proceeds of bonds, which were subsequently issued. However, it is clear that, as the RBOC has been managing its own funds for only some 18 months, we are not in a position to speak directly to issues, which go back more than a decade.

The RBOC is confident that the city staff can complete a through accounting of all of the funds involved. The RBOC would welcome any audit of its own management of its finances over the past 18 months if it would be helpful or prudent to resolve any issue. We are proud that these same 18 months have been among the best in the Rose Bowl's history.

The Star-News article created the unfortunate and mistaken impression that the RBOC was or should be taken to task for the management of this special fund -- even though most of the matters addressed predate the existence of the RBOC. These matters will be on the agenda at the meeting of the BEC on Feb. 7, 2001. The RBOC shares the concern of the community, of the City Council, the city manager and the director of finance that the prior history of this fund be documented and presented, once and for all.

BOARD OF DIRECTORS,
ROSE BOWL OPERATING COMPANY

Funding