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Alhambra City Hall (Photo Frank Qiu).
Contracts with concessionaire, Brad Perrin, were singled out in a recent state audit of the City of Montebello as particularly troubling.
By Sean McMorris
The report of the State Auditor of California stated that Montebello’s contracts with Perrin were more favorable to Perrin than to the city and that one 63-year no-bid contract with Perrin resulted in significant losses to Montebello’s general fund.
The City of Alhambra has a nearly identical 50-year no-bid contract with Perrin’s entity, Almansor Court, Inc. (“ACI”) for concession services at Almansor Court, the restaurant and banquet hall at the Alhambra golf course. Although the contract has resulted in two lawsuits, Alhambra never has audited ACI’s books.
After multiple press inquiries and public scrutiny of the contracts, recently appointed Alhambra City Manager, Jessica Binnquist, ordered audit of ACI in August 2018.
Since then, Perrin has delayed the process by refusing to turn over crucial documents, including tax returns and bank statements, without which the auditing firm hired by the city, Rodgers, Anderson, Malody and Scott, LLP (RAMS), maintains it cannot conduct a legitimate audit.
Compromise and refusal
The city attempted to compromise by removing the city’s request for certain tax returns, a particular sticking point with Mr. Perrin, so long as ACI provides other documents essential for third party verification of financial records—a critical function of the audit process. Perrin still has refused to comply.
The city’s law firm, Burke, Williams & Sorensen, LLP, sent Perrin a demand letter on January 23, 2019. The letter notified Perrin that he is in breach of contract, and that the city will initiate further action to secure his compliance unless he immediately turns over the requested documents.
Emails reveal tension and disagreement
Emails through January 28, 2019 show the back and forth between the city, Perrin and RAMS. There is disagreement about what was said at a pre-audit meeting regarding documents required for the audit (tax returns or no tax returns). In multiple emails, Perrin offers to provide the names of auditing firms who would perform an audit on behalf of the city without tax returns. The city did not respond to Perrin’s offers. In other emails, Mr. Perrin voices his frustration about the process and the city’s need for certain documents, accusing the city of trying to hold-up or renege on promised renovations to the Almansor Court facility. Almansor Court and its signage received significant upgrades in 2017. It appears that Perrin’s reference to promised renovations is part of an on-going Renewal, Replacement and Renovations (RR&R) project to the facility that is estimated to cost $4.5 million. The city has committed to paying for $1 million of that RR&R.
In a particularly contentious email Perrin accuses the Alhambra City Manager of being difficult, and he descfribes the previous city council and city manager as “committed to performing.” (As a result of term limits, three new Alhambra City Councilmembers were seated in 2019. Ms. Binnquist was appointed City Manage in January 2018, replacing Mark Yokoyama who held the position for less than two years.)
Alhambra Councilman Jeff Maloney received some of Perrin’s email correspondence with city management. Perrin, through various associated LLCs, donated $10,000 to Councilman Maloney’s 2016 city council campaign.
Almansor Court, Inc. audit to be made public
As of March 2019, the matter has yet to be resolved, but the two parties appear to be trying to settle the dispute without litigation. Alhambra City Manager, Jessica Binnquist, said, “The audit is not yet complete… but we are actively working with ACI to get the additional documents in order to complete the audit. ” Ms. Binnquist added, “When the final audit report is finished, it will be public record.”
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Issue a damned warrant!