Like an underwater homeowner on an adjustable-rate mortgage in late 2008, Team San Jose was unfazed by money issues in the months leading up to its being slapped with a default notice. And like a feckless federal regulator, the city official charged with overseeing the local business-union-municipal alliance was upbeat—right up until the report that $750,000 had fallen off the truck.
As part of the city’s required oversight on the beleaguered quasi-public entity, analyst Eric Bilimoria sent recaps of Team San Jose (TSJ) money meetings to the city’s budget boss, Jennifer Maguire. In one of these internal emails last May, the analyst breezily mentions $805,000 worth of TSJ expenditure “cleanups” that were talked about at the meeting. One of these “cleanups” concerned the Genghis Khan exhibit at the Tech Museum. In a blistering memo last month, downtown council rep Sam Liccardo demanded that that deal be put under the microscope.
Looking at the numbers, Liccardo’s vigilance seems well founded. Bilimoria’s email to Maguire back in May reports that the House of TSJ was leaking money.
“As part of the agreement to bring the exhibit here, the City fronted $250K in costs,” Bilimoria writes of the “necessary cleanup.” He goes onto say that an additional $555,000 “cleanup” would also be required, because TSJ had overspent city money on equipment and insurance.
In late June, less than two months before Team San Jose had its wings clipped by city finance chief Scott P. Johnson, Bilimoria reported that TSJ’s CEO Dan Fenton and former long-time CFO Dan Cunningham were assuring city budget staff that it was all good.
“They are on pace to meet the budgeted revenue estimate, and finish the year at or below estimated levels for their expenditure appropriations,” Bilimoria wrote. He also reported that a controversial consolidation of the TSJ entity, whose board includes South Bay Labor Council head Cindy Chavez, was copacetic. “They assured us that the upcoming transition from the Civil Service to variable labor model would be successful,” Bilimoria said, adding that there was “not really any news to report” and that “the meeting was over in less than an hour.”
Meanwhile, economic development chief Paul Krutko, who is ultimately responsible for keeping tabs on TSJ, was nowhere to be found. And while the facade had apparently been collapsing for months, former CFO Cunningham, who was dismissed by Fenton in mid-July, later told the Merc that he had “no knowledge of any budget overage.” Fenton says there is no link between Cunningham’s sacking and the recent revelations about TSJ’s deficits.
“Meanwhile, economic development chief Paul Krutko, who is ultimately responsible for keeping tabs on TSJ, was nowhere to be found. ”
Paul Krutko, is San Jose’s Chief – Office of Economic Development ( OED ) or more correctly
Chief. Economic Disaster – and is not being held accountable for wasteful tax spending and promoting
1) economic development tax losing projects that wasting millions tax dollars on a) unnecessary projects and b) political tax subsidies to increase corporate / developer profits
2) Team San Jose ( TSJ = Taxpayer Supported Jobs )
3) Office of Cultural Affairs who giveaway millions tax giveaway to unaccountable high paid non profits and money losing tax subsidized downtown theaters, museums, parades and events
Economic Development staff has grown while city staff declines, budget is up and measurable results significantly declined under Paul Krutko city’s Chief Economic Spinmaster who wastes millions taxes
Let’s blame this on the police and fire personnel.
“They are on pace to meet the budgeted revenue estimate, and finish the year at or below estimated levels for their expenditure appropriations,” Bilimoria wrote. He also reported that a controversial consolidation of the TSJ entity, whose board includes South Bay Labor Council head Cindy Chavez, was copacetic. “They assured us that the upcoming transition from the Civil Service to variable labor model would be successful,” Bilimoria said, adding that there was “not really any news to report” and that “the meeting was over in less than an hour.”
So, it seems, our oversight guy, Mr. Bilimoria, simply took them at their word and did nothing to verify their fraudulent claims. Shortly thereafter a $750k deficit comes to light.
Does Mr. Bilimoria still have a job with the city? If so, why?
Wake up tax payers! Why has the city council let this guy screw up the convention center and waste tax payers money! I blame the city council for letting this flim flam man fool them with smoke and mirrors! He has razzle dazzled them for way to many years! Dan Fenton has got to go!! Wake up San Jose!
> “quasi-public entity”
Any time you see a term like “quasi-public entity” or “public-private partnership”, hold on to your wallet, get out your can of pepper spray, and dial 911 to report a robbery in progress.
The purpose of a “public-private partnership” is simply to inject taxpayer dollars into a lousy business venture that no businessman investing his own money would touch with a ten foot pole even while wearing latex gloves.
How many bad city insider political deals that waste tax dollars need to happen before those responsible on city staff and in community groups like tax subsidized Team San Jose that produces poor results but pays bloated salaries ?
Unbelievable yet not. And now just watch the bloodletting and pseudo-positive PR that TSJ will now let loose: a shallow-as-heck press release that TSJ has locked in a city-wide convention through 2013 that, in reality, was never threatening to leave. And long-term sales managers suddenly departing without notice. If the City Council falls for this nonsense this time, then there is really no hope and we should all just forget about it and expect business as usual. Shame on us.
Talk about transparent government….Ha, Give me a break!
What a sham. The City and TEAM SAN JOSE can’t account for where the hundreds of millions of dollars have gone. Smoke and mirrors? More like a bad Magic Show with disappearing PUBLIC funds.
This has lasted 6 years at the expense of the San Jose Taxpayers and the City Employees that used to run the Convention Center.
Team San Jose had “Mobile Paper Shredding” trucks parked outside their Market Street access to the TSJ Accounting Dept last week just after the announcement of $750,000 had gone missing, I wonder what they are hiding hmmm?
The City pays Fenton $500K a year, for WHAT? So Fenton can misuse and misplace CITY monies? Uh Oh my 2 mins are up…Sorry Mr. Mayor!
Don’t look behind you Mr. G’Reed and Fenton, I don’t know how your going to play this one off. Time to expose your corruption and GREED!
Good Luck with the “Criminal Grand Jury” proceedings soon to be convening. I’m sure there are plenty of ex-employees that will be willing to talk now that they don’t have to fear walking the plank.
They don’t work for a Pirate any longer!
What about the 50K that Fenton gave to the DMAI last year so he could be president? That’s the organization that had a convention in Ft. Lauderdale recently that he took several of his lackeys to. That 50K was taxpayer money. Or how about the 30K he spent for a few days in Dallas taking cronies to try and fix the mess he created with the teamsters and decorators? That was only 4 days! How can you spend that much in 4 days? That too is taxpayer money, spent to fix something he created. Or how about all the lawyer fees TSJ incurred because of his crazy teamster thing? Does he think he’s king?
Does anyone know what the San Jose Sports Authority is?
Probably another “tax limpet”.
It’s a species of political suckerfish that attaches itself to a public budget and sucks money out.
Is there any mess in San Jose that Cindy Chavez and her labor cronies don’t have their hands in? Why is it that just about every stinkhole that is uncovered in San Jose has a direct tie to Chavez and her labor flunkees?
Nope, I’m still King!
Who is Dan Fenton anyway, and what kind of circus-SCAM is he running?
I wonder if he has been eyeballing my white jumpsuit? It’s too big for him anyhow.
City Taxpayer monies do not need to go to business failures like Team Sham Jose, San Jose Sports Authority, Mexican Heritage, Blah Blah Blah! You get what I’m talking about here…
Lets see, Google Who is on the roster for the Downtown San Jose Rotary Club, mostly politicians.
You will see the direct connection to the Mayor, Council Members and the above business stakeholders, and you will see that the City Administrators are on all of these boards of these failures, then the City Admins give OUR money to them to use without restraints.
If you want I can Hyperlink all of these examples for you Nay Sayer’s. Mayor Reed, Cindy, Dan Fenton, Pete Constant and all the rest of the dirty pseudo-politico’s that are on the list of people who benefit from our tax dollars.
Team “SHAM” Jose is a fine example of how not to run a business with public funds.
Did we not learn from what not to do with San Jose’s monies from the shenanigans of Mayor like Ronnie Gonzales?
They called this activity Corruption.
FYI – People ARE watching the City Leaders.
One more thing… Mayor Reed, You don’t know everything! You may think you do. Plus, try smiling!
You “were” an Attorney past tense, which by definition is a bottom feeder looking for a free handout. It is a known fact that Sharks won’t even eat Attorney’s as they will not eat something full of crap.
I have seen some under handed things in my time but This Pierluigi Oliverio takes the cake.He gets caught Stealing campaign signs and his excuse is that he was helping to clean up the city because we are short on this type of service. well heres a thought we live in a city of a million plus we should have a police force of over 2000 officers we have less than 1200 and shrinking something the mayor and Oliverio would like to see. since Oliverio is so ready to clean up the city let’s see him put on a uniform and patrol this city. Better yet why doesn’t he just vacate his council seat and let an honest person represent his district instead of a campaign sign theft.