1 David Yakobson
From: Karen Croner <[email protected]>
Sent: Tuesday, July 9, 2024 11:38 AM
To: Phil Brock; Christine Parra; Lana Negrete; Oscar de la Torre; Gleam Davis; Caroline Torosis; Jesse Zwick; Douglas Sloan; councilmtgitems; Council Mailbox Cc: Council Mailbox; councilmtgitems
Subject: Item 5A DTSM Inc. Budget
EXTERNAL
Dear Council:
I am very concerned about the budget for DTSM…And urge you not to approve it. 10 million dollars is certainly not improving downtown and some of the items simply make no sense to me. Residents like myself would like you to appoint an independent third party forensic accounting firm to review and audit all the charges invoiced to the City of Santa Monica by DTSM, Inc. This should include bank statements, credit card charges, travel expenses, acquisitions, etc.
Since the City Manager is a DTSM Board Member, of course a third party should be selected by the Council. Our city is supposedly broke. We need money to open the libraries, hire police officers. DTSM seems to have squandered their allotment. Please do not approve another dollar until they can account for every dollar given to them by the city. SM Tax payers and voters care a lot about this issue and if this budget is approved, I know it will affect how many residents vote.
Thank you,
KAREN CRONER
Item 5-A
July 9, 2024
Item 5-A
July 9, 2024
2 David Yakobson
From: Gary Freedman <[email protected]>
Sent: Tuesday, July 9, 2024 10:55 AM
To: Phil Brock; Christine Parra; Lana Negrete; Oscar de la Torre; Gleam Davis; Caroline Torosis; Jesse Zwick; Douglas Sloan; councilmtgitems; Council Mailbox; Council Mailbox Subject: Item 5A Consent Calendar -DTSM, Inc. Budget
EXTERNAL
Dear Council:
I am both a resident of Santa Monica for more than 50 years and a stakeholder in the DTSM business district on Third Street Promenade.
I agree 100% with the position below originally sent by John Alle. While I do not agree with John Alle on everything, he is on point as stated below.
Tonight you are being asked to approve the DTSM, Inc. Budget. As a DTSM Assessment-paying Stakeholder and property owner, and for the Public Record, I urge you not to approve the Budget that has been submitted.
Instead, I urge you to vote to recommend appointing an independent third party forensic accounting firm without any ties to the City, City Councilmembers, DTSM, Inc., DTSM Staff and/or its Board of Directors., to review and audit all the charges invoiced to the City of Santa Monica by DTSM, Inc. In addition, an independent forensic auditor should review the organization's books, entries, expenditures, bank statements, credit card charges, travel expenses, acquisitions, etc.
Since the City Manager and or his designee, in this case Assistant City Manager Susan Cline, is a DTSM Board Member, the 3rd party forensic auditing team should be selected by Council or group of individuals with no past or current ties to the City or DTSM, Inc.
Highest on the priority list are charges the City of Santa Monica is overpaying DTSM for its Parks Programs and Services. The City is paying DTSM, Inc. a higher amount than the actual costs. We are unsure where the overpayment is going....perhaps into a reserve account, someone's pockets, etc. For the very same items described, there are different amounts shown paid in several reports.
There are numerous examples of other financial improprieties we have uncovered. Having been provided this written notice, your approving the Budget may prove embarrassing to this Council and Santa Monica in the near future.
Our large group of Assessment-paying Stakeholders plans to exit the organization for these and other reasons. DTSM, Inc. is a non-profit organization controlled by the City, and is not a true business Item 5-A
July 9, 2024
Item 5-A
July 9, 2024
3 improvement district. It has serious problems, no productive results, and management of the organization and its + - $10 million a year budget is out of control.
Please do not approve the Budget presented until an independent 3rd party forensic accounting firm can review all related items from an unbiased and uncompromised point of view.
Sincerely,
Gary Freedman
533 9th Street
Santa Monica 90402
and
1329 Third Street
Item 5-A
July 9, 2024
Item 5-A
July 9, 2024
4 David Yakobson
From: John Alle <[email protected]>
Sent: Tuesday, July 9, 2024 10:05 AM
To: Phil Brock; Christine Parra; Lana Negrete; Oscar de la Torre; Gleam Davis; Caroline Torosis; Jesse Zwick; Douglas Sloan; councilmtgitems; Council Mailbox; Council Mailbox Subject: Item 5 A, Consent Calendar - DTSM, Inc. Budget
EXTERNAL
Dear Council:
Tonight you are being asked to approve the DTSM, Inc. Budget. As a DTSM Assessment-paying Stakeholder and property owner, and for the Public Record, I urge you not to approve the Budget that has been submitted.
Instead, I urge you to vote to recommend appointing an independent third party forensic accounting firm without any ties to the City, City Councilmembers, DTSM, Inc., DTSM Staff and/or its Board of Directors., to review and audit all the charges invoiced to the City of Santa Monica by DTSM, Inc. In addition, an independent forensic auditor should review the organization's books, entries, expenditures, bank statements, credit card charges, travel expenses, acquisitions, etc.
Since the City Manager and or his designee, in this case Assistant City Manager Susan Cline, is a DTSM Board Member, the 3rd party forensic auditing team should be selected by Council or group of individuals with no past or current ties to the City or DTSM, Inc.
Highest on the priority list are charges the City of Santa Monica is overpaying DTSM for its Parks Programs and Services. The City is paying DTSM, Inc. a higher amount than the actual costs. We are unsure where the overpayment is going....perhaps into a reserve account, someone's pockets, etc. For the very same items described, there are different amounts shown paid in several reports.
There are numerous examples of other financial improprieties we have uncovered. Having been provided this written notice, your approving the Budget may prove embarrassing to this Council and Santa Monica in the near future.
Our large group of Assessment-paying Stakeholders plans to exit the organization for these and other reasons. DTSM, Inc. is a non-profit organization controlled by the City, and is not a true business improvement district. It has serious problems, no productive results, and management of the organization and its + - $10 million a year budget is out of control.
Please do not approve the Budget presented until an independent 3rd party forensic accounting firm can review all related items from an unbiased and uncompromised point of view.
John Alle
DTSM, Inc. Assessment-paying Stakeholder
Item 5-A
July 9, 2024
Item 5-A
July 9, 2024
5 --
John E. Alle
JOHN ALLE COMPANY
www.johnallecompany.com
Cell: (310) 990-7124
Office: (626) 795-1511 (310) 319-1511
The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation to the contents of this information is strictly prohibited and may be unlawful. Kindly delete.
Item 5-A
July 9, 2024
Item 5-A
July 9, 2024