In addition to member dues, many neighborhood groups receive grants from the City of Santa Monica.
Wilshire/Montana Neighborhood Coalition, Northeast Neighbors, Friends of Sunset Park and the Pico Neighborhood Association have applied for and/or received city grants of up to $4,000.
The North of Montana Association is expected to apply, according to assistant city manager, Judy Rambeau.
City grants are supposed to be used for outreach or projects for the neighborhood good. The city basically takes the association's word that grants will be used properly. Their use for political purposes is strictly prohibited.
Most associations co-mingle grant money and membership dues in one bank account. So, if as little as 37-cents is spent to mail a newsletter stating the group opposes (or supports) a ballot measure or candidate, they are in violation of the conditions of the grant and possibly their own by-laws, constitution or articles of incorporation.
And their federal or state non-profit corporation status could be in jeopardy. Two grant receivers, Wilmont and FOSP, recently opposed Proposition A, which is on the current mail-in ballot.
Last December, Wilmont's directors entertained themselves at the Gaslight Pub on Wilshire Boulevard. The association's Articles of Incorporation state: “...no part of the net income or assets of this corporation shall ever inure to the benefits of any director, officer or member thereof...” Yet, Wilmont’s board annually “rewards themselves” and parties down at the organization’s expense.
I’m sure W/MNC members will be happy to know their dues and city grant money is being put to good use.
Ocean Park Community Organization’s credibility is in jeopardy because its chair, Rick Laudati, refuses to release financial data about the organization. A lawsuit was recently filed against Laudati and OPCO in an effort to find out how much money comes in to the association, its sources, current assets and how organization funds are spent.
Most groups use funds for outreach, but frequently monies are squandered on social events such as block parties, banked for a “rainy day,” or spent without any explanation at all. This, in part, is because some associations are governed by a small handful of active members who “take charge” and run them as their personal fiefdoms.
Those who association leaders dislike or disagree with are often excluded or ignored. Wilmont’s board recently began holding their monthly meetings in a director’s private condominium — one without disabled access. Pro Se, who is wheelchair bound, recently asked how he could participate in a meeting. One board member said, “We'll open a window and you can ‘participate’ from the sidewalk outside.”
The practice of neighborhood organizations holding board of director meetings with little or no public notice and in private, as well as conducting business without the polling or participation of members and neighbors, is reprehensible.
There are other nefarious practices that some associations use to stifle dissent and limit debate.
Wilmont recently changed their by-laws to allow a long-standing board member to remain as a full voting director even though she no longer lives in the neighborhood. And, at least one OPCO board member is not registered to vote in Santa Monica and rumors have it that the reason why is that her primary residence is in Indiana.
Nonresident directors voting on association issues tells me that these organizations are not neighborhood groups. Rather they are political organizations run by a small cabal out to promote a specific political agenda or philosophy.
Even when directors are from the ‘hood, positions taken behind closed doors and without public participation are a terrible disservice.
For example, many north of Montana residents support Proposition A. At best, the neighborhood is divided on this issue. The fact that NOMA’s board is loaded with City Council appointees on the Planning, Parks and Recreation and Landmarks commissions makes their vote against Proposition A seem suspect.
Friends of Sunset Park also opposed “A.” Do you think that Landmarks Commissioner and FOSP director, Tom Cleys, might have influenced that group's position on the issue? While they’ll probably say, “No,” you'll never convince me their position is that of the majority of Sunset Park residents.
It’s easy to see why residents complain that neighborhood organizations don't honestly reflect neighborhood opinions or values.
Next week in part 3 -- the Renters Rights power structure and new neighborhood organizations.
Originally published in the Santa Monica Daily Press print edition on March 7, 2003. Read the original PDF.