Council Errs in Hiring Consultants for MHC

The San Jose City Council voted on Tuesday to hire two consultants for the Mexican Heritage Corporation (MHC) at a cost to the taxpayers of $100,000, compounding the errors in judgment they have already made on this issue. One of the consultants will be hired to “help” the MHC develop a business plan and fundraising capabilities. The other will take the pulse of the community and advise the MHC on how better to serve the public.

Why are the taxpayers of this city paying for consultants to assist the board and management of the Mexican Heritage Corporation in doing what they should have been doing for years but haven’t? Any consultants hired by the city should be helping the council determine how to show the MHC the door as quickly as possible, take back control of the Mexican Heritage Plaza and turn it over to far more capable managers. The MHC board and management are long past the help of consultants. They have been financially inept for years. Why haven’t they hired their own consultants to help them up to now? Why should we now pay to instruct the MHC in the responsibilities they have been ignoring to the point of bankruptcy? An institutional board in this deep an abyss of denial is beyond help.

I have some questions for the MHC board. In the two months that we have been publicly discussing this issue on SJI, have you raised the $200,000 in cash that is necessary to keep the plaza in operation for those two months? Have you filled the plaza calendar that was empty two months ago with events? (I checked the website calendar and it’s still empty.) Have you sought and received expert advice on how to raise the cash necessary to finance your operations and pay off your substantial debts? Have you sought and received advice about how to pay back your $500,000 loan from the taxpayers? Have you sought and received advice as to how best to maximize the use of the taxpayers’ arts facility currently in your care?

When is the city council going to wake up and realize that pouring more money down this drain is never going to accomplish anything but increasing the city’s deficit? The council also voted on Tuesday to allow the MHC to defer until next year its annual payment of $50,000 on their outstanding $500,000 loan from the taxpayers this year. The fact that they can’t pay a few thousand dollars tells all we need to know. If the MHC can’t make even the tiniest payment on the debts they already have and are incapable of raising more than $3,750 in a year against an operational budget of $1.2 million, how are expensive consultants going to help them? We don’t need consultants, but if we have to pay for them, they ought to be working in the interests of the taxpaying citizens, not the MHC board.

At the same meeting on Tuesday, the council passed a hefty pay raise and increase in car allowance for themselves by a vote of 6-4. Those voting against were Mayor Reed, Vice Mayor Cortese and Council Members Liccardo and Oliverio, citing concerns about the city’s current budget troubles. Obviously, the six members voting to raise their pay—Campos, Chirco, Constant, Nguyen, Pyle and Williams—have no such worries.

42 Comments

  1. #4 – Unless you want garbage and sewage stinking up the joint, you, me and everyone else needs to pay more for these services.  The City Council members deserve 200k per year, they could easily get that in the private sector, plus they do a magnificent job.  The MHC is a jewel for San Jose, it needs to be saved, no matter the cost.

  2. #7, suggest you see you doctor right away regarding increasing the dosage of your meds.  City Council members, for the most part, aren’t worth their current pay level.  Were you a business owner, would you hire Nora, Forrest, Nancy and Judy?

    As for the MHP, how much money have you donated to the cause?

  3. How about the city council providing some professional assistance and appointing capable board members/staff….then making them accountable for performance objectives. Is that too much work? 

    Or a non-profit consultant could do all of that in his/her sleep – and make a $100,000 in the process.  What is their hourly rate anyway?

  4. Well written, Jack; your stongest post yet.  Keep up the good work!

    This council needs to begin practicing tough love and really begin to take control., not only on this site, but others that are similar sinkholes.  What’s going on with The Rep these days?

  5. Thank you for publishing who voted FOR and who voted AGAINST.  I think we’re starting to see a clear division of status quo vs. responsibilty on this council.  Unfortunately, status quo appears to be in the majority.  This will be a test of Reed’s leadership ability to bring the status quo around.

  6. #11 – I’m really disappointed in Pete Constant who lined up with the “status quo” – especially since he gets a tax free disability pension in addition to his council salary. If he continues to vote against Chuck et al it will make a turnaround very difficult.

  7. Dear Jack:

    I often wonder why the city council doesn’t view San Jose State and Santa Clara U (and/or the local JC’s for that matter) as possible resources.  Why not present topics like the Mexican Heritage Plaza as a case study for upper division and graduate business classes?  AND/OR Hire one or more profs to study the matter over the Summer.

    The problem with so many of the council’s decisions over the past decade is rooted in their misguided belief that they can build “supply” before “demand.” 

    Pete Campbell

  8. RIP, I think there’s light at the end of the tunnel re: the status quo.  If I have things straight, out of the 6 members who voted to pay themselves more, only Nguyen has the option to run again.  The others, I think, will be termed out.  Let’s hope we get more like Sam and Pierluigi to replace those six wastes of oxygen.

    Greg, #8, I’m with you re: #7 but have got to believe he’s joking, if it’s possible to joke about the joke that is the MHP.  I say let’s give it a punch line by moving Quetzie over there where he has always belonged, front and center to provide easy access for the local taggers whose culture this place was built to celebrate.

  9. #8 If the role of Private Business is to exceed customer expectations by delivering a quality product or service in a timely fashion at a competitive price, then no, I would not hire Nora, Forrest, Nancy and Judy.

    I’ve never donated even a penny to the MHP.  In all honesty I have never even visited the place, nor do I know where it is.  The extent of my cultural activities involve watching reruns of “Frasier”, “Seinfeld” and ” Friends”.

    I apologize for my previous statements.

    Kathleen

  10. Kathleen, clearly you have plenty of company among the ranks of those who have never set foot on the MHP.  This has everything to do with the facts that 1) There isn’t much on the schedule there and the manana approach to any promotional effort, and 2) It’s not centrally located but in a part of town that’s not one many people care to visit or venture into, and 3) The design of the complex turns its back on the public and should have been rejected by the inept council that instead approved it.

    I say turn it back into a Safeway and start collecting some tax revenue.  It’s completely unappreciated by its target demographic.

    Misguided every step of the way.  Hey, maybe we should replace “Capital of Silicon Valley” with that slogan.

  11. #16

    t’s not centrally located but in a part of town that’s not one many people care to visit or venture into

    While it is true that East San Jose (ESJ) is a segregated neighborhood by income and level of education, it is not true that it is a significantly unsafe area as compared to the rest of San Jose. 

    Perhaps in the past that was true, but not anymore. 

    Police statistics presented by the police at a Neighborhood Watch meeting a few years ago placed this area as average in crime rates within the city.

    I have lived here for 17 years and have never been bothered.  In that time I have worked to help clean up my neighborhood so that it is better off now than when I moved here.  Yes, there still are some rental homes that need to be dealt with, but that is not impossible.

    Rather than complain about ESJ, what we as a society need to do is help improve the East Side.  The best way to do that is to encourage educated, affluent individuals of all races and cultures to move here.         

    Currently, East San Jose is the best deal around in real estate.  This area was mostly built in the 50s, and the lots are huge by today’s standards.  The homes are solid and are either in good shape or can be had for a pittance as a fixer-upper.  Nice single family houses, on a large lot and tree lined streets, sell for around $600-$650K. 

    With the money you save on a house you can send your children, via a limo, to the best private schools around.  Or you can help improve the local schools by getting involved.

    By being located at the intersection of 101 and 280/680 the entire Bay area is easily accessible.

    So, you can complain about how bad ESJ is, or you can do something to improve it.  Move here and be part of an urban renewal and reap the rewards.  Just like with the stock market, big rewards require some risk.  However, since new land is not being made, but the population keeps increasing, it is only a matter of time before ESJ is “discovered” and becomes a viable location for individuals sick of long commutes, or who want a large lot with their house.

  12. Jack,

    You’re right about the MHC… it’s a sinkhole when it comes to funding.  Houdini couldn’t make money disappear as quickly as the MHC Board. 

    In any event, hiring consultants to solve the problem just reaffirms my belief about City employees.  Don’t we have any finance minded people on the City payroll who can think their way out of a paper bag?!  Maybe the City needs to can some of its employees and hire some of these bright consultants as City employees.

  13. I’m trying to understand why we would pay some consultant $100,000.00 to tell these boardmembers on the MHC what they already know, and have known for years.
      Money is not going to FIX this delema. It’s been 15 years. Some board members have been on that board for 20 years. ENOUGH?
      A new direction is absolutely required. It’s our money that built it. The city council must ask for the community’s input. Not at a city council meeting, but at the MHP. Open it up to any and all perticipants. We just may find out once and for all where the interest is in supporting this bankrupt organization.
      The district council person should be on that board, At the very least attend their meetings.
      The minutes of those meetings should be made public.
      I’d like to see the ED and the President express what has brought them down to this point. The issues are internal.
     
          The Village Black Smith

  14. Jack—Appropriate outrage. How many potholes could be fixed with $100K, how many roses in the Rose Garden pruned? One more question, who on the City Council moved to hire the consultants? And another, what was the vote? Not even Pierluigi would tangle with this one? Oh oh! If this MHC mess ever gets fixed it will take more courage to face the waste than has heretofore been shown. “Unum” won’t even raise a finger against “E Pluribus”, and frustrated fin fan gets no hearing, even among the bloggers, let alone the City Council. George Green

  15. The Council and Mayor should have spent the $100,000 on hearing aids for themselves.  That way they could better listen to the citizens of San Jose.  We should pay them on their ability to follow rules.  We should start with a $100,000 base salary and deduct $1,00,000 each tim they violate the Brown Act, Robert’s Rules of Order or the Law.

  16. #7 You make some very good points.  We have truly been blessed by the fine men and women who serve on our City Council.  Through their sacrifice and hardwork our lives have truly been enriched.  Our future has never been brighter and our dreams for a better life are being realized.  It was only a few short years ago that we were lost and adrift.  But the City Council filled are sails, so we were able to seek safe passage.  Like a bright shining star they guided us to safety.

    Thank you Forrest Williams for your intellect.

    Thank you Dave Cortese for your compassion.

    Thank you Judy Chirco for your dedication.

    Thank you Nora Campos for your wisdom.

    Thank you Nancy Pyle for your humility.

    Thank you Madison Nguyen for your honesty.

    Thank you Pete Constant for your integrity.

    Thank you Sam Liccardo for your loyalty.

    Thank you Pierluigi Oliverio for your courage.

    Thank you Chuck Reed for your ethics.

    San Jose City Council, Thank You.

    Rhonda

  17. #21 J O’Connor

      You don’t even try to hide your racism.  How anyone can take you seriously on this issue is a mystery to me.  “esse”!?  You responded to positive in ESJ, who mentioned nothing about his/her race, with “esse”?  You’re a racist who cannot keep your bigotry out of your posts when it comes to this issue or any others involving interestes that are not your own!

  18. #7: satire is reserved for Fridays.  Who wrote that post—Bob Brownstein?

    As for the MHP, I’ll ask Gil H. what heritage this plaza purports to represent?  If it’s the heritage of Mexico running what is now California until 1849 or so, I’d submit that one reason the MHP draws few Mexicans who live here is that few of them give a shit about what happened here 150+ years ago.  The Mexicans who pour across our borders now want only to earn money that they cannot earn in Mexico. 

    So, what is the MHP’s constituency?  The diversity crowd?  But they are apparently not putting their dinero where their mouths are when it comes to the MHP.

    The MHP needs to be privatized RIGHT NOW.  It either sinks or swims.  The $1.3 million ANNUAL operating budget would be better spent on parks maintenance or filling potholes.

    If it is such a great resource, let the Board of Directors raise the $$ to keep it afloat.  If the Mexicans don’t care enough about it to keep it open, why should we?

    Blanca???????????????????

  19. Here is some sunshine and insight to the inner workings of the ineptness and the lack of community involvement the MHC is responsible for. You judge for yourselves. Clik on Yahoo
    1.  http://www.bizjournals+mexican heritage plaza
    2.  Mexican muzzle+metro
    3.  Metro+revenge of the renters
      There’s more, much more serious community health issues.
                  The Village Black Smith

  20. Every group has their hand out and until we say no to everyone all want their favorite group to get tax dollars

    http://www.sanjoseca.gov/auditor/auditreports/0601/0601appdxd.pdf

    2004-2005 Department –  Number Of Grant /
    Programs Number Of Grants / Total Grants $

    Total Grant programs Awards

    PRNS   6   425   $23,377,091
    OED     4   23   $6,320,963
    HOUSING 4   22 $2,925,414
    RDA 2 52 $2,700,338
    OCA 8 108 $2,325,932
    LIBRARY 3 4 $1,770,361
    ESD 4 19 $661,338
    DOT 2 2 $397,000

    Grand Total 33 programs 655 grants = $40,478,437

    and this does not count tax dollars for RDA developer, other economic development programs and other tax spending = $150-300
    million

  21. #28

    Don’t pay any attention to JMO.  Him, along with frustrated finfan, and Novice are known as the Three Stooges of SJI.  They are just a group of grumpy old men.

    For the record, if it matters, I am a SWM.

  22. You know that when I voted I really thought we had a chance to do some things right here!
    (CHUCK) and the rest of you know who you are.
    How can this kind of stuff just keep happening? somebody / anybody explain it to me PLEASE. You cannot keep throwing money at a problem that can’t be fixed WAKE UP YOU MORONS, and stop wasting are tax dollars on crap like this. What are the consultants going to tell you that you don’t already know for gods sake, Just stop it …

  23. I agree with you Jack. This is unacceptable. Newly elected Council Member Constant lied about supporting Reed’s values, and his goal of fiscal responsibility. The rest earn pretty good incomes outside the City. Prior to getting on the Council, Williams made some pretty good business investments. Chirco owns rental property. Constant has disability, and he has a small photography businesses, plus his Council salary. Campos has a husband who earns some pretty good money. etc.

    For the last six months, I have been touring community centers for an event I’m working on with different Council Offices. Some of these community centers are so poorly kept that I was just stunned. If I were a Council Member I’d be ashamed of myself. $100,000.00 would help these community centers greatly! They need new TVs, and VCRs for the kids, toys, paper, crayons, tables, and chairs etc. Community Center staff has zero medical benefits, and earn a very low wage. It’s pretty sickening.
    I’ve been to the MHC many times for County events. It is indeed much nicer than most community centers I’ve visited. I have to ask myself why taxpayers have crappy community centers, which are heavily used by the community, get little money and maintenance from the City, but the MHC is still getting hundreds of thousands of dollars. What in the hay is that all about?

  24. #17,  Like it or not, the overwhelming majority of SJ residents who do not live on the east side, and proably even a good number who do, make negative associations with that side of town.  Personally, I love the quiet country atmosphere of the east foothills and have friends with a lovely home there, but would never want to live there myself.  The topographic positives don’t come close to outweighing the sociological negatives.

    My parents had friends who lived in a very nice home just above the SJ Country Club and they were regularly burglarized until they packed up and moved to The Villages.  Unfortunately, even the desirable areas in the east hills are not protected from and are way too convenient for adjacent lawless flatlanders.  This isn’t a stigma, it’s reality.

    And the fact remains that there is nothing on the east side to attract people from other parts of town and the MHP hasn’t managed to make itself a destination.  So I stick to my statement that the MHP’s failure, aside from its operational issues, is in part due to its non-central location and the fact that most people don’t consider east SJ as a place for entertainment or leisure activities and generally steer clear of that part of town.

    The MHP was Blanca’s baby and she had to have it in her district.  That’s the main self-serving district-oriented decision that caused this whole project to be DOA as soon as it was completed.  What a lively place the MHP would be for the entire community if it had been located downtown and designed with welcoming architecture instead of the forboding fortress concept that was approved by a typically lame SJ council body.  Add this one to the legacy of bad decisions that have given this town its well-deserved inferiority complex.

    #27, that’s another post along with #7 that’s supposed to be saved for a Friday blog.

  25. SWM, I’m probably a borderline member of the stooges club in your opinion.  I don’t always agree entirely with JMO or to a lesser degree Finfan and pretty much NEVER agree with curmudgeon Mr. Green and most of what Novice posts but they are entitled to their opinions just like the rest of us here.

    JMO and most certainly Finfan regularly contribute spot-on assessments of the subject of the day and along with Novice they don’t qualify as racists in my book.  There’s a difference between making obvious statements about a certain group that can be supported statistically and tossing out ethnic slurs.  JMO is no Don Imus and neither is FF even if he makes indisputible statements that wouldn’t be considered PC by the bleeding heart faction.  Novice is a fish out of water here in the Bay Area and although he’s made his share of good points, it’s comforting to know he is far outnumbered by more reasonable types.  Bottom line is that this blog would be less stimulating and entertaining without these guys’ participation.

  26. #7 I agree 98%, my only difference with you is on compensation.  Considering our place in the global economy, I feel adequate compensation for council members would be 300k to 400k per year.  When you consider how they guided us through the dot com meltdown, it is safe to say they were like a “bridge over troubled waters”.  They stood tall in the face of adversity.  They fed the hungry, clothed the naked, sheltered the homeless and employed the jobless.

    Now, today faced with new challenges, they are still there for us.  They’re our shoulder to lean on.  A rainbow after the storm.  A warm blanket on a cold winter night.  A refreshing breeze on a hot summer night.  They are the light in a sometimes dark world.

    Keep up the excellent work, San Jose City Council.

  27. Between #7, 27 and 34 our buddy JMcE has some serious competition this week.

    Clearly, JMO has already left us for the weekend but here’s wishing a safe holiday to my fellow bloggers who are still reading.

  28. #33 Having an opinion is all fine and good. As you said, everyone is entitled to voice their opinion.

    The problem is that your buddy’s post had no opinion in it. What was obvious to many people is that his post contained a blatantly obvious attempt to demean someone based on his assumptions about the other person’s race. If that isn’t racist, I don’t what is.

    How anyone could be so presumptuous of #17’s race based on a positive post about a specific area of town is beyond me. And to call someone an “esse” based on that post, I don’t even have the words……

    :-(

  29. People are actually scared of East San Jose? Ugh, what a joke. We can brag about our “safest city” to no end, but not believe ourselves?

  30. Dear Voters,

    Since you first elected me to the Council, I have cut your services, lined my pockets and spent your money like there was no tomorrow.

    In appreciation of these efforts I have voted myself a hefty pay raise.

    Moving forward, you will continue to keep me in office, keep your mouths shut and supply me with unlimited cash.

    This Saturday my staff and I will be holding a town hall meeting, to discuss issues concerning you.  When we want your opinion, we’ll give it to you.

    Tony Soprano
    District 11
    San Jose City Council

  31. San Jose has a City Council – City Manager form of government

    City staff wrote highly critical auditor’s report

    http://www.sanjoseca.gov/clerk/Agenda/052207/052207_09.01a.pdf

    and recommended consultants and spend more tax dollars on consultants because this is highly political and staff did not want to deliver bad news to Council who did not exercise fiscal accountability to do their job so hired outsiders to give bad news and recommendations

    http://www.sanjoseca.gov/clerk/Agenda/052207/052207_09.01b.pdf

    City Manager recommednation

    http://www.sanjoseca.gov/clerk/Agenda/052207/052207_09.01c.pdf

  32. #33. Reasonable people draw reasonable conclusions based on the facts presented.

    You can dress it up as “spot-on assessments of the subject of the day” but reasonable people are more likely to conclude that the posts in question suggest “spot-on racisism.”

  33. Mark T, FFF, Novice, and the rest of you, You’re all Blimy raicst. wether you’re trying to save the world, or save the neighborhood; you will do what it takes to make sure the Riff-Raff does not invade your little corner of the world. All of you contribute excellent thoughts to SJI; especially FFF; who could argue with his essays now that the Sharks are flim flam. Keep up the good work. JWII

  34. To JWII, and all the others on this thread outfitted with their floaties and anxiously holding on to the side of the pool who so casually accuse me of being a racist,  please cite one instance, just one post, where I’ve put up something racist on this board.

    In post after post, I back my up my assertions with mainstream supporting references. 

    I realize that the truth is often inconvenient for those in a koolaid induced dream state, but facts are facts and my citation of facts does not make me a racist.

    You and the other ankle-biter’s knee-jerk reflexive attempts to smear me as a racist only serves to illuminate your shortcomings, the shallowness of your arguments, and the house-of-cards quality of your world view.

    Viva Fidel!

  35. #28:  You must be a white limousine liberal—knee jerk reaction to call someone a racist.  “Esse” is how I address many of my Mexican friends, and none of them calls me a racist; though they often address me the same way.

  36. 8/22/07
    Where were the consultants that the City Council hired recently. I was not contacted for my perspective analysis of where the Corporation went south, no offense LA.
      The last consultants that interviewed me were the Wolf Report people. You remember? I told those folks that I had to hit the road the second the dedication shovel hit the ground as with the rest of the board, and make way for the next generation of development people to take this idea to the next level. Well, guess who got wacked? Yep, ole Gil. “Who the hell does he think he is”, we ain’t going no where Replied the old guard GI Forum deadbeat board members. “And who does he think he is asking for an audit of our MHC books”?
      The last straw was the exculsivity clauses promoted by the Mercury News at the expence of the local Hispanic publications. La Oferta, El Obserador, Alliansa, who had supported most of these hispanic organizations for years.
      Clauses that were signed by the Mexican Heritage Corp. and the GI forum which by the way were one and the same.
      A definate No No!
      The way it worked was that the board of Mercury News /Muevo Mundo which comprised of the officers of the GI Forum, and the Mexican Heritage Corp, would send out a request to be represented exclusivly by the MercuryNews and Nuevo Mundo. When it arrived at these organizations, the same people would sign off on the exclusivity clauses, and mail them back to them selves. Cool Huh?
      That divided the community to date! Call Mary Andrade of La Oferta, call Hilbert of El Observador confermation is at hand.
      So , why am I going on about the past? Things have not changed that much. There are still those same folks working that dark side control at all levels. Ever wonder why such a small circle of people have been in control of programs and initiatives for the life of the MHC & Plaza?
      Most of you that have posted negative reactions to the MHC, have every right to express your reaction to the lack of responcibility that it takes to make a venue such as this thrive.
      When Marcela came to the rescue, she was no doubt met with a treasurey that had been depleted by sheer ignorance and denial. She inherited a lazy sleeping board controled by some one no one seem to know about. Cute Huh?
      Who was banking the available funds?
        Let’s look at the books for the past 5 years prior to Marcelas accepting the job.
        Let’s look at the pay roll and other grants payroll for the MHC and the plaza since it’s insecption. It’s all there. The consultants will surely have all of that info for us tomorrow.
        Let’s ask why the GI Forum became such an important almost controlling aspect of the MHC and the Mariachi Festival. Who could have that much power to make all of this happen? Where’s that old money now?
      I recall when Pete Carillo came on board. My question to Mr Zuezueta was “who the hell made him the CEO”?
      It seems he just appeared like a puppy at the door, so we had to keep him.
      This was like great theater. I watched on in anticipation.
      I could go on because I have so much to say, but I will attend tomorrows meeting with Mayor Reed and Senora Compos and watch the players that want to keep control and those that want community to finally happen.
      If the Mayor gives me but 1 Minute I will be prepared. I could just scream as loud as I can and then faint. That would probably set the scene for a fun filled evening of understanding and laughter.
      Chuck Reed, Mayor of the first Capital of California, you have at hand the power to make some thing magical happen tomorrow. You can make this city the Power of One. Unite your Village once and for All!
      Give Marcela, Dan Fenton and their “new” board a window of oportunity to make this city proud. The tip of their iceberg was the 2006 International mariachi Festival. a whooping $200,000 net net was realized and it actually got to the bank. How cool is that?
    Try yahoo /  http://www.metroactive/public eye/ mexican muzzle .

          The Village Black Smith/ Gil Hernandez

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