COMMENTARY Open & Transparent City Government? Germane Information Mayor Jason Burnett Neglected To Disclose Regarding Agenda Item 8.D: Donations for Step Terracing at the Forest Theatre, 7 April 2015

At the City of Carmel-by-the-Sea City Council meeting on April 7, 2015, the City Council considered Agenda Item 8.D: Donations for Step Terracing at the Forest Theatre
Recommendations: 1) Authorize the acceptance of donations from PacRep for up to $60,000 to pursue the alternate design commonly referred to as the “terraced” steps for the side aisles within the seating bowl; and
2) Authorize the City Administrator to negotiate and execute an amendment to the services agreement with Cody Anderson Wasney Architects in an amount not to exceed $15,000 to provide construction documents, etc., for the “terraced” steps design; and
3) Authorize the City Administrator to negotiate and execute a potential change order to the construction contract between the City and Otto Construction in an amount not to exceed $45,000 for the implementation of the “terraced’ steps; and
4) Authorize the City Administrator to work with the donor on the allocation of the donated dollars as will be applied to the design and the construction phases of the project.
After city council deliberations, City Council Member Carrie Theis made a motion, per Recommendations, seconded by City Council Member Ken Talmage, and passed unanimously.

During city council deliberations on Agenda Item 8.D: Donations for Step Terracing at the Forest Theatre, Mayor Jason Burnett stated that he had contacted the Fair Political Practices Commission (FPPC) and asked the FPPC whether there was an issue with making a private financial donation to the Forest Theater and being on the dais.  Mayor Burnett replied that the FPPC stated “generally no,” that it is fine for a council member to financially contribute to Forest Theater and also spend time on the  agenda item pertaining to Pacific Repertory Theatre’s financial donations towards the Forest Theatre renovation project.  However, Mayor Burnett further stated that “out of an abundance of caution,” he had decided not to make a financial contribution.

That stated, Mayor Jason Burnett neglected to disclose the following germane information.  Jason K. Burnett serves as a Trustee on the Board of the David and Lucile Packard Foundation (EIN: 94-2278431).  According to the David and Lucile Packard Foundation, Form 990-PF, Return of Private Foundation, Other Program-Related Investments, Statement 26 (2011), the Packard Foundation provided a bridge loan to Pacific Repertory Theater, specifically, “the first of two fundings to provide a bridge loan towards signed pledges to enable PacRep to renovate and upgrade the Golden Bough Theater in Carmel, CA.” in the amount of $400,000 in 2011. Additionally, the David and Lucile Packard Foundation have awarded grants to Pacific Repertory Theatre totaling $258,680 including $75,000 (2010-35520, 2010) For general support over two years (1/1/11 - 12/31/12), $75,000 (2013-38559, 2013) For general support over two years through 12/31/14,  $18,680 (2014-37835, 2014) To support succession and human resources planning and $90,000 (2014-40600, 2014) For general support over two years through 12/31/2016.  In short, Pacific Repertory Theatre has been the beneficiary of the David and Lucile Packard Foundation’s grants totaling $258,680 and a bridge loan totaling $400,000.

Therefore, Mayor Jason Burnett has a conflict of interest due to his serving as a Trustee on the Board of the David and Lucile Packard Foundation, specifically his fiduciary responsibility to that Board and Mayor Jason Burnett serving as mayor of the City of Carmel-by-the-Sea, and his fiduciary responsibility to the City, when an issue involving the David and Lucile Packard Foundation is a City issue.  Moreover, Mayor Jason Burnett’s failure to disclose to the public his involvement with the David and Lucile Packard Foundation substantially supporting Pacific Repertory Theatre over the years and not disclosing his fiduciary interest and responsibility to that Foundation makes a mockery of the mayor’s and city council members’ pledge of open and transparent city government in the aftermath of City Administrator Jason Stilwell’s tenure and destroys public trust in city government.

Written & Published by L. A. Paterson