Archive for December, 2005

Still Naughty

Friday, December 30th, 2005


Virginia Performing Arts Foundation President Brad Armstrong has taken a $100,000-a-year pay cut in hopes of eliminating a “distraction” for the planned downtown arts center.

Armstrong’s decision to reduce his pay from $275,000 to $175,000 was detailed in a letter he gave to the foundation’s board of directors at its annual meeting Tuesday. A copy was obtained by The Times-Dispatch.

Foundation spokeswoman Carolyn Cuthrell confirmed yesterday that the reduction was effective immediately and said it was not the result of pressure within the foundation.

-Richmond Times Dispatch, September 15, 2005 (emphasis added)

Soon to be former VAPAF President & CEO Brad Armstrong must have counted on Chairman Jim Ukrop to keep his stocking full of goodies this Christmas - because jolly ole St. Nick wouldn’t have gone anywhere near it (coal is waaaayyy to0 expensive these days). Through documents obtained by the Freedom of Information Act, it appears that Brad, Jim & Co. are still up to their same naughty games.

Despite the public pronouncement above, it appears that Brad was paid far in excess of an annualized $175,000 for at least several months thereafter. For those paid twice per month (as looks to be the case with VAPAF employees), an annual salary of $175,000 would work out to about $7,291.67 per paycheck. Bank statements obtained from the Department of Historic Resources indicate he was paid between $11,881 and $11,193 per paycheck (or approximately $277,000 annualized) in the months before the announced pay cut. These records show that in the months following the pay cut announcement he was paid the following sums:

September 14, 2005 - $11,193.25
September 29, 2005 - $11,012.13
$266,464.56 annualized for September

October 13, 2005 - $10,563.11
October 28, 2005 - $12,127.41
$272,286.24 annualized for October

November 16, 2005 - $8,901.11
November 30, 2005 - $8,901.07
$213,626.16 annualized for November

I can’t wait to hear the explanation for this one.

We also learned that the VAPAF may be trying to skirt Commonwealth regulations by:

1. Asking for (and already receiving some) state appropriation dollars without having completed the required grant application. The VAPAF’s original application indicated that its appropriation dollars would be used for capital expenses incurred during the construction of the proposed new PAC. The VAPAF never completed the part of the application that dealt with ensuring the Foundation was compliant with state regulations in its hiring of vendors. While “Attachment A” of the application states that “All of the application requirements must be met…before nonstate grant funds can be released,” somehow the VAPAF has already received more than $1.5 million. It does appear, however, that the state is tiring of the VAPAF’s antics, as seen in this exchange of letters.

2. Attempting to garner state appropriation dollars by identifying matching funds no longer in existence. These funds, which the VAPAF evidently had at different times during August, September and October, have long since been spent and are gone. This seems to pretty well run afoul of the appropriation act which requires funds to be “on hand and available.” Section 4-5.05 of the act states:

No allotment of appropriations shall be made to a nonstate agency until such agency has certified to the Secretary of Finance that cash or in-kind contributions are on hand and available to match equally all or any part of an appropriation which may be provided by the General Assembly, unless the organization is specifically exempted from this requirement by language in this act. Such matching funds shall not have been previously used to meet the match requirement in any prior appropriation act.

3. Using state appropriation dollars and matching funds in an unauthorized way. The grant application states that “the matching funds must be spent for the same purpose as the state appropriation,” and that “ineligible expenditures include those that are not directly related to the grant project, fundraising costs, the value of real estate or a lease, entertainment costs, etc. In determining match eligibility, federal grant guidelines will be used.” Since the VAPAF applied for funds for certain construction services (and obviously nothing has been built yet), and much of their matching funds have already been spent on salaries and other operations, it appears they have violated this rule. Also, as we have covered in previous posts, it looks like the VAPAF has been holding $1.5 million of state appropriation dollars in escrow to attempt to secure clear title to the Thalhimer’s block. This would seem to be an ineligible expenditure regarding the value of real estate.

One interesting item in the appropriation act spells out the authority of the Governor or JLARC (the state’s internal investigative agency) to demand an audit of nonstate agency grant recipients. I think it’s just about time for the state to get into the VAPAF audit game. As I recall that whole audit thing didn’t work out so well for the Foundation last time.

Oh, and finally, before I forget, they’ve now completely drained the Carpenter Center’s account!

Happy New Year Everybody!

Questions and Non-Answers

Saturday, December 17th, 2005

The mayor’s performing arts committee held its first meeting on Friday, an event the Richmond Times-Dispatch summarizes as “symbolic.” In light of this whopper news , one wonders if this new committee’s final report will even be necessary:

Richmond Mayor L. Douglas Wilder floated a multimillion-dollar plan to rebuild schools and other city facilities at a 70-minute, closed-door meeting with a dozen business and civic leaders yesterday.

The plan, which could be a centerpiece of his legacy as mayor, could mean raising as much as $200 million through complicated financing that seeks to address concerns the city is bumping the ceiling of how much it can borrow, according to senior City Hall officials.

The officials confirmed details of the plan only on condition of anonymity because they are still reluctant to discuss the plan officially.

The money would go for a citywide school building and renovation program, focused on the oldest and most run-down schools, as well as streets and other infrastructure, the sources said.

The plan also would use meals-tax money originally intended to pay the city’s share of a downtown performing-arts center as a source of revenue to repay the borrowing. The borrowing, in turn, could be used to pay for the renovation and expansion of the Carpenter Center, the sources said.

But the performing arts committee meeting was significant for at least one reason: Negative nabobing questions were asked of the Virginia Performing Arts Foundation that normally only irresponsible bloggers bother with. Like:

“What is the annual operating budget for all this?”

and

“What was the sampling data on that Times-Dispatch poll that indicates widespread support for the performing arts center?”

and

“Why can’t we just start on renovating the Carpenter Center immediately?”

The committee didn’t get answers to those first two questions. And since nearly half of the members are themselves Foundation board members or afflilated agents — Jim Ukrop, Thomas Farrell, Jean Boone, David Fisk — it was embarrassing that no one knew. [According to estimates filed with the mayor's office, the Foundation's annual projected revenues are $7.3 million with expenses of $8 million, resulting in an annual deficit of nearly $700,000 ; that infamous T-D poll can be explained here ].

Instead, the presentations from the Foundation that the committee members (and silent guests) were treated to on Friday were the same kind of booster montages everyone in attendance must have seen a dozen times or more. The 2001 AMS study was hauled out again as justification for everything— but the members (at least four of them) must be aware this is an outdated consultant’s report rife with errors, based on the Foundation’s former plan that included a home for TheatreVirginia , not a 1,200-seat music hall that even many within the Richmond Symphony regard as too small for an orchestra. No, this project has never been treated to an independent feasibility study and there’s probably a good reason for that.

In response to the third question, about the reopening of the Carpenter Center, VAPAF presenters John Bates and Michele Walter didn’t happen to mention the Carpenter’s account statement or dwell on the fact that the hall’s $3 million endowment has shrinked to nearly nothing under the Foundation’s care. Instead, they talked exclusively about the inadequacy of the Carpenter Center as a performance space— although Walter admitted that the nearly 80-year-old venue was structurally sound. “They made things to last back then,” she said.

With Wilder’s newly unveiled funding initiatives in the forefront of everyone’s mind, the doomy duo of Bates and Walter expressed extreme discomfort about simply renovating and expanding the Carpenter without also building the Foundation’s planned music hall because, according to them, everything about the VAPAF project is so tied together. And also because they’ve done so much work on the plan as it is already envisioned. Mr. Bates pointed to two stacks of papers in binders, lying in the corner of the Foundation office, as proof of that assertion— ah yes, Brad may be gone but his spirit of salesmanship lives on.

Thanks to committee chairman Robert Grey for reminding everyone present of the impending one-year anniversary of the Carpenter’s closing. (So why isn’t Joel Katz sitting at this table? ) The new performing arts committee now has a year to decide what to do —and I suspect that the PAC’s findings will fall in line with the mayor’s ambitious new school funding initatives (which could also include the Carpenter’s renovation). But that’s way too long to wait and wonder while this valuable downtown venue sits dark.

It guess it bodes well that some on this new performing arts committee are willing to ask the tough questions. But the problem on Friday wasn’t the questions — those have been posed already , many times over — it was the same old answers and non-answers.

Involved

Friday, December 16th, 2005

“He’s quite a capable person, financially astute,” Ukrop said. “He’s been quite involved in the arts.”

We aren’t picking on the VAPAF’s new Executive Director Bob Mooney at all. Let’s get that out of the way first and foremost. He could be a great guy and wise beyond measure for all I know. I mean: There’s gotta be some reason he sits on all these boards.

But Mr. Mooney’s previous involvement with the arts, which Mr. Ukrop alluded to in yesterday’s Times-Dispatch, would seem to be that he was the board vice-president for TheatreVirginia when that venerable theatre company went under in 2002.

Why does that matter? Some could argue that an unpaid volunteer at the helm may be what these folks need right now — that and actual arts professionals sitting with them at the table (ahem!) (Incidentially: the first performing arts committee meeting is 3PM today, 111 Virginia Street, Suite 201. It’s open to the public but you must wear a ball gag.)

It matters because the TheatreVirginia board of directors wasn’t just some ordinary cultural oversight committee. Those particular stewards of the arts oversaw the disintegration of a near-50-year-old Virginia stage institution, and were criticized accordingly. TV was housed for years at the Virginia Museum of Fine Arts and was once slated for the performing arts center — it was the first, earliest, casualty of the VAPAF’s business plan to consolidate Richmond culture downtown. Employees at the time accused the TheatreVirginia board of withholding the news of the company’s closing for months; at the same time, longtime subscribers began asking their own questions about management practices.

It’s unfair, perhaps, to put the weight of TheatreVirginia’s demise squarely on the shoulders of Mr. Mooney — even if he was the company’s liasion with VAPAF — but you wonder if he’s the kind of choice the arts groups affiliated with the Virginia Performing Arts Foundation would have made; they must remember the cautionary tale of TheatreVirginia all too well. But when we last heard from the Alliance for the Performing Arts, they were expressing cautious optimism about the Foundation and the new performing arts committee, still hoping that someone would give them seats at the table, careful not to offend even as they practice in church basements. I mean, hey, it’s only their home(s) we’re talking about here, right?

The Alliance for the Performing Arts, a group of about 30 arts organizations supporting the project, is looking at the committee with cautious optimism, hoping that more representatives of arts groups will be added, said Jerry Samford, the group’s vice chairman and spokesman. “We’re anxious to be a resource for the committee, regardless.”

Call me impetuous: If my parent organization never bothered to study the $113 million plan it hatched in my name AND was found by a municipal auditor to have been counting pledges incorrectly AND reporting monies in violation of their agreement AND billing improperly for such things as excessive executive salaries, AND recently watched its entire upper management resign and shrink and THEN tried to stick me with one of the dudes who watched the U.S.S. TheatreVirginia sink into the sludge, I’d be doing a helluva lot more than just hanging around waiting to “be a resource.”

No matter what, Mr. Mooney is to be commended for stepping up to the plate and not taking a fee for his services. But his installation as Brad Armstrong’s replacement is either a signal that what’s left of the Foundation still doesn’t understand that you need arts professionals to run an arts center — and especially to advise on arts salvage operations — or they aren’t even trying to fool anyone anymore.

Look out, Grandma Millie!

Thursday, December 15th, 2005

“It was one of those things,” Ukrop said. “We looked around the table [and considered] who had the skill set and would be willing to do it, and Bob stepped up.”

Thank Jesus Sarbanes-Oxley doesn’t apply to nonprofits. Anyway, I can’t think of a better candidate than Bob Mooney to lead what remains of the Virginia Performing Arts Foundation (don’t worry, the website will reflect these new changes sometime in 2007).

Bob Mooney is a wealthy businessman who has the right–and I do mean right–social connections to kick-start fund-raising (just don’t anyone use the words “Broadway version of Brokeback Mountain” anywhere near him), but his most relevant skills for running VAPAF probably come from his association with a company whose accounting skills put Brad Armstrong’s to shame.

Enron.

In 2001, Mooney’s energy trading company, Envera, partnered with Enron; not long afterward the Texas conglomerate was part of a consortium that bought Envera for $30 million or so. Envera then merged with ChemConnect, a former Enron competitor in commodities trading. It’s all a bit Globochem to me, but my formal training is not in this field.

I’m better at finding press releases, like this one:

“We welcome Enron as a member of Envera,” stated Bob Mooney, Envera’s CEO. “As our newest member, Enron extends Envera’s value proposition by opening up to Enron’s trading verticals, including new industries such as oil and gas, petrochemicals and plastics to Envera’s trading members. Furthermore, our members have enhanced access to Enron’s many services, continuing Envera’s “Business for Business.”

Or this one:

Enron offers guaranteed liquidity, says Alan C. Engberg, director for Enron Global Markets. “There’s always going to be a two-way market–the ability to buy or sell–at our location.” The crux of market making is not just posting buy and sell bids, Friedman adds, but posting “reasonable two-way indications,” so that customers actually want to make deals. Just recently, Enron took an equity interest in the chemical-company-backed network Envera. Enron will link its trading system to Envera, which will become the preferred network for members settling petrochemical transactions with Enron.

What better background to lead an organization that, amazingly, still claims to have raised $72 million but whose plans were somehow scuppered by the mayor of Richmond witholding $4.4 million of that “revenue raised to date”?

Here’s hoping Mooney, whom we–seriously–applaud for working for free (not that there’s anything left to pay him with, though maybe he can use Brad’s sunroom from time to time) is not the fool-me-twice type. If VAPAF’s vaunted “cease-fire” with Mayor Wilder is to work, someone at the foundation has to put a stop to the crap accounting and level with both the taxpayers and the foundation’s donors about the group’s real condition.

VAPAF’s an Augean stables all right, and Mooney may well be the man to clean it up. After all, he’s seen this kind of mess before.

If it reads, it leads

Wednesday, December 7th, 2005

A new link appears today under the “charity begins” category. It’s for Pharrout’s fund-raiser for the Virginia Literacy Foundation, an organization I’m sort of surprised Pharrout’s Ross Catrow can bring himself to support since it once tapped two ex-Cavs as spokesmen. (Maybe the events of last week have hopelessly rattled his brainpan.)

Whatever brought it about, we’re psyched to help in any small way we can. There’s an undeniable correlation between literacy rates and informed voters, and we salute the VLF for addressing adult and especially intergenerational literacy programs that encourage partnerships between parents, children and schools–all building blocks for a citizenry vested in its future.

I know a lot of us are tapped out, giving-wise, after a particularly difficult year. And the problems addressed by groups such as the Central Virginia Food Bank are more pressing than those the VLF is facing down. That’s why I encourage you to think of donations to the latter as more investment than charity. Because who knows what problems we may avoid in the future if we’re finally able to elect city officials who can, for example, not just read but read between the lines on something as simple as a financial statement?

Snit happens

Friday, December 2nd, 2005

“There will be no transition at the City Jail,” said Mitchell’s top deputy, Lt. Col. Alan E. Roehm. “The sheriff is not going to allow Woody to come in prior to taking office.”

Gee, it’s a real shame Michelle Mitchell lost. You don’t often see this sort of professionalism in public servants–destroying documents, denying entry to investigators. No, usually you have to wait for a mob family to implode.

In today’s Times-Dispatch, we learn that, in addition to barring her elected successor from sizing up the situation before he takes office (transition, schmransition–what’s a couple weeks of chaos at a jail?), Mitchell’s booted an independent panel investigating broken locks and security so good an inmate walked out of his cell, killed another inmate, then found time to take a shower and hopelessly p.o.’ed Mayor Wilder (not the best move in any circumstance).

No word yet on whether “Miss Buns” is planning to sandblast her name off the department’s cars before she goes. But as someone who’s been partially footing the bill for her shenanigans for the past few years, I think the only important thing is that she’s out of here. The less of old Richmond we see, the better.

And speaking of the less we see, the better….

National pride

Thursday, December 1st, 2005

I totally think Booty Armstrong and Jim Ukrop should acquire the National Theater and donate it to the Virginia Performing Arts Foundation. All three parties have done such a bang-up job on the Carpenter Center that a glorious future for this venue, too, seems assured. Kudos to everyone involved for not abandoning what Calvin Jamison used to call Richmond’s “new, success-driven spirit”!