Unauthorized Fairgrounds Equestrian Center Size Reduction Requires Public Accountability of All Involved
04/05/2018
During late March, equestrians found construction workers installing permanent fence poles in concrete bases to reduce the size of the Equestrian Center. At no time was a reduction in size of the Equestrian Center approved by the Board of the OC Fairgrounds (aka Orange County Fair and Event Center or OCFEC.) The reduction was to allow storage of more shipping containers on the property. Work was halted after the equestrians pushed back but public accountability of all involved is required. This work was planned, contracted for, paid for, and overseen by Executive Management and staff. This was not a "misunderstanding", an "accident", or anything but a deliberate planned action which wasted public money.
Ask yourself:
- What motivates these actions?
- Who benefits from these actions?
- What are the benefits received from these actions?
- What do Board members gain by not holding Executive Management and staff involved in these actions publicly accountable?
Photos of the construction work:
The letter sent to the Board (Ashleigh Aitken, Barbara Bagneris, Nick Berardino, Sandra Cervantes, Doug La Belle, Gerardo Mouet, Newton Pham, Robert Ruiz, Stan Tkaczyk) follows:
Staff of the 32nd District Agricultural Association (32nd DAA) are engaging in the revision of contractual lease terms involving the Equestrian Center without apparently asking for, or receiving, approval of the 32nd DAA Board or input from the Public who own the Equestrian Center. There are currently activities ongoing at the 32nd DAA to reduce the size of the Equestrian Center. It is unclear as to when, how or by whom the proposed reduction in size of the Equestrian Center was approved and the source(s) of funds for said activities. The Public who own the Equestrian Center became aware of the reduction in size of after permanent fence poles in concrete bases were installed to move the fence line from between the current boundary of the Equestrian Center to immediately behind the arenas. Work was stopped after Public intervention. At no time was the Public informed of plans to reduce the size of the Equestrian Center.
Any and all members of Executive Management who participated in the decision and actions to reduce the size of the Equestrian Center must be held publicly accountable for their actions. This current action by Executive Management against the greater interests of the Public who own the 32nd DAA property is one of a history of actions by Executive Management against the interests of the Public. For an overview of actions against the greater interests of the Public, please refer to the letter “Ongoing Pattern of Behavior by the 32nd District Agricultural Association” dated February 15, 2018, previously sent to the Board which discusses questionable actions harming the Public which started in at least 2015 and some of which may be ongoing. There is a saying that the “fish rots from the head," which applies to this action regarding the Equestrian Center. The stench of rot is overwhelming and it is time for the Board to clear out the stinking mess.
Footprint of the Equestrian Center is Contained in a Contract
The size and footprint of the Equestrian Center is covered by the “Equestrian Center Restated Rental Agreement Terms and Conditions” between the 32nd DAA and Equestrian Services II entered into on March 1, 2009, and modified in a Letter of Understanding dated December 26, 2012, (afterwards referred to as “Equestrian Center Lease”) (enclosed) in Exhibits B and B-2.
Construction Work was Conducted to Alter the Footprint of the Equestrian Center in Violation of the Terms of the Existing Contract
The proposed reduction in size of the Equestrian Center would remove the area between the riding arenas and the fence between the Equestrian Center and Parking Lot G from the area used for the Equestrian Center and use the area for storage of shipping containers. Work was stopped after permanent fence posts in concrete bases were installed prior to moving the fence line, turf removal and installation of concrete. Photos showing the work completed as of March 28, 2018, are enclosed as Exhibits A1, A2, and A3. There are reports of continuing discussions to reduce the size of the Equestrian Center to allow for increased storage space for shipping containers.
Altering the Footprint of the Equestrian Center Requires Board Action
Changes to the footprint of the Equestrian Center as described in the Equestrian Center Lease must be approved by the 32nd DAA Board with a contract modification. Executive Management and principals of Equestrian Services II lack authority to enact changes to the footprint of the Equestrian Center. Costs associated with capital improvements such as the work started and stopped at the Equestrian Center are approved during the 32ndDAA Board annual budget process. It is not clear if the costs associated with reducing the size of the Equestrian Center to construct a shipping container storage area were approved as part of the 2018 capital expenditures budget. These actions are contrary to the current direction of the Board regarding the Equestrian Center to make capital improvements and to increase community programming.
Action is Needed to Restore Trust
Trust in continuing operation of the Equestrian Center has been placed in jeopardy by these rogue actions by Executive Management. As a good faith gesture to show the Board’s continuing commitment to the Equestrian Center, the Board is requested to modify the Equestrian Center Lease to remove §18 “Impact of Annual Fair Operations and Year Round Events Program” from the current Equestrian Center Lease.
The Board is requested to investigate this matter and to hold those involved publicly accountable for their actions. A list of questions regarding the reduction of size of the Equestrian Center and shipping container storage and usage is enclosed and that information is requested to be promptly provided in an effort to restore Public trust in the 32nd DAA. (see Exhibit B)
Exhibit B: Please provide the requested information regarding the proposed reduction in size of the Equestrian Center to create a shipping container storage area.
- Please provide copies of the approvals for the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide a copy of the budget for the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide copies of the approvals for the budget for the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide copies of any and all drawings and plans for the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide copies of any and all approvals for the drawings and plans for the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide fully executed copies of any and all contracts including any and all attachments, riders, and amendments for the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide copies of any and all bids for the contracts including any and all attachments, riders, and amendments for the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide copies of any and all approvals for the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide the number of shipping containers currently stored between the Equestrian Center and Parking Lot G.
- Please provide current information regarding the usage and ownership of each and every shipping container currently stored between the Equestrian Center and Parking Lot G.
- Please provide information regarding the revenues received from the shipping containers currently stored between the Equestrian Center and Parking Lot G.
- Please explain the need for additional storage space for shipping containers including usage, ownership, and revenues.
- Please explain why the Equestrian Center is the designated space for additional shipping container storage space.
- Please show alternate locations for storage of additional shipping containers.
- Please provide copies of the direction given to remove the fence posts installed as part of the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide documents showing the costs of removal of the fence posts installed as part of the proposed reduction in size of the Equestrian Center to create shipping container storage space.
- Please provide proof that the fence posts installed as part of the proposed reduction in size of the Equestrian Center to create shipping container storage space have been removed.
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