Officials controlling South Lake Tahoe ball fields represent multiple interests
By Kathryn Reed
A clear case of conflict of interest reared its head Tuesday night at the Lake Tahoe Unified School District meeting, but no one put an end to it.
Steve Morales, facilities director for the district, is also a founding member of the Community Athletic Coordinating Council. This group has been overseeing aspects of ball field management in South Lake Tahoe since it incorporated as a nonprofit in 1989. It was also central to an agendized item about fields.
A school district official the night of Aug. 21 told Lake Tahoe News that Morales is merely the district’s liaison to the CACC board.
Adults are making the ball field situation in South Lake Tahoe anything but child's play. Photo/LTN file
However, the 2007, 2008 and 2009 900 forms the nonprofit must file with the IRS list Morales as the president of CACC. No 2010 or 2011 forms were available online. Even if Morales is not a current board member, his history makes his allegiance suspect.
Donice Lenhardt, a former employee with South Lake Tahoe’s Parks and Recreation Department, is listed as the vice president-treasurer in 2009; William Goss had those titles in 2008 and 2007 on the forms. (He listed the city rec center as his address.)
In fact, CACC uses the rec center as its address. At a minimum, this is unethical for city employees to be using taxpayer facilities for personal use even for mailing purposes.
It is not known if CACC work was done on city or school district time by CACC members.
While CACC was formed by district and city staff, it was supposed to be an entirely separate entity.
CFO Deb Yates said at the meeting this week that the district doesn’t need CACC and that it will be up to the city how it deals with this group.
Morales, Lenhardt and Goss report no income from CACC on the forms. However, Morales’ true connection to this group was not disclosed at the meeting. He did, however, act like he was representing CACC and not the district – which does pay him a six-figure annual salary. To avoid conflict, he should have recused himself from the discussion.
The certified public accountant signing off on the forms for those three years was Dave Olivo. Olivo is the elected treasurer for the city of South Lake Tahoe.
At the district meeting this week, board member Sue Novasel questioned the legality of fees collected in California benefiting Nevada. Morales said Douglas County was only involved at the get-go and a few years ago may have had some money given for improvements.
However, current CACC President Chuck Leonard told Lake Tahoe News last November, “(The CACC) maintains a central calendar in conjunction with the South Tahoe Parks and Recreation and the Douglas County Parks and Recreation departments and the Lake Tahoe Unified School District.” That statement proves Nevada is still part of CACC.
It was also revealed this week that the district and CACC have each charged entities for the use of the same field at the same time. Yates said that won’t happen again going forward.
Here is the 2007-CACC 990 form, 2008-CACC 990 form and 2009-CACC 990 form.
Most of the public just doesn’t care enough to get involved in these type of cases. That’s why Morales gets away with his antics and he knows it. The school district should do more to protect its reputation.
don’t know enough details to really comment specifically on this case (and certainly the article is rather inclear as to what exctly is the issue here?), but sometimes “conflict of interest” is really just “mutually beneficial interest”. If I work in some capcaity, odds are my social interest are similar, hence I belong to organizations involved in some things that involve things I do at work. If someone involves themself so as to financially benefit in a way that others can not, this would be a conflict of public trust (as in approving construction of something that just happens to get built by my construction company). But if someone has an interest and involvement in a certain subject – say use and management of athletic facilities – and happens to work for the city and some other athletic group that uses athletic facilities that lots of others use as well, and my groups gets to use them under the same terms as everyone else, that in itself is a pretty weak conflict.
Plus, in a small town it isnt like you can find enough different folks to do stuff that have the time and interest to be that involved. Anyway, the article gives absolutely no clue as to exactly what these groups were discussing that anyone should have recused themselves from?
Conflicts of interest are serious when public dollars are involved. There is gifting of public funds and other charges that are possible.
Always follow the money. The problem is CACC’s financials are not easy to follow.
This story was a continuation of the previous day’s story (https://www.laketahoenews.net/2012/08/ltusd-south-tahoe-solidifying-how-to-manage-ball-fields/) in which it is stated that an LTUSD board member whose husband was involved with CACC couldn’t track down the money. And this Novasel has background in finances.
There is clearly something unorthodox going on.
I think this story proves there is a story.
People do care! The CACC spent $100,000+ community funds between 2007-2009…Rumor is these were unfairly allocated to benefit favorite athletic groups. No oversight. Steve Morales needs to go along with the CACC. School District does not need this kind of conflict of interest.
It”s “GRAND JURY TIME.”
Good going KAE !!!!
What does Hal Cole know and when did he know it??????
Hal has been in this from the begining. He is one of the few that even knew about this non profit spending public monies on pet projects. Look on the backstop at the Babe Ruth field for the thank you CACC plaque.