MONEY MATTERS - Palmdale Mayor Jim Ledford, left, and City Councilman Rick Norris, center, discuss their positions on funding the Hispanic Chamber of Commerce. Councilman Mike Dispenza, right, looks over the memorandum of understanding Tuesday evening in the Palmdale council chambers. Valley Press Staff Writer Bob Wilson reports. Valley Press photo by Rob Layman.

City wrangles over chamber

Council debates cash allocation

This story appeared in the Antelope Valley Press May 31, 2001.

By BOB WILSON
Valley Press Staff Writer

PALMDALE - One of the smallest line items in the city's spending plan for fiscal 2001-02 generated the only controversy during a public workshop by the City Council.

With expenditures of more than $114.9 million in the balance, the council spent the most time Tuesday debating the merits of spending $40,000 in redevelopment money to assist the Hispanic Chamber of Commerce, an organization formed 4 1/2 years ago to promote Hispanic business opportunities throughout the Antelope Valley.

Speaking in favor of granting the financial support were Mayor Jim Ledford and Councilman Jim Root, who argued the move would bring new business opportunities for the city.

Saying they favored the funding as long as it came with proof of performance that Palmdale would benefit fully from its investment were Mayor Pro Tem Mike Dispenza and Councilman Rick Norris.

Seated as the tie-breaker, Councilman Rod Penner offered his own solution: Budgeting $20,000 for the chamber and having them ask for matching funds from Lancaster.

Under Penner's proposal, the Hispanic chamber could come back to Palmdale for additional funding at midfiscal year if its request of Lancaster were denied. But since the chamber's efforts are Valleywide, Lancaster should share the cost, the councilman said.

"My perspective on this is that I want to help you, but I want to know in my heart that we're being fair" to all the local economic-development organizations that could use financial assistance, Penner said.

For example, the Greater Antelope Valley Chamber of Commerce, another Valleywide group, also has submitted a request for funding, he said. And the city already provides funding to the AV Board of Trade and other Valleywide organizations.

After adjournment, Penner said his view could change after learning that the Greater AV chamber's bylaws differ from other chambers' bylaws in that they do not prohibit political involvement and endorsements.

Ledford said he favored funding the Hispanic chamber because it represented a way to reach markets that are untapped by other local chambers.

Funding the Hispanic chamber in no way obliges the city to provide the same funding to other chambers, regardless of their wants or wishes, the mayor said.

The question of political polarization was raised by Norris, who asked Hispanic chamber representatives if the organization helped register voters in addition to promoting local business.

"To answer your question, no," replied the chamber's president-elect, Sandy Corrales. "The Hispanic chamber is a business organization. Our bylaws state very clearly that we're nonpartisan.

"We're not involved in the political arena and ... we're very disciplined in that respect. We leave that to the politicians," she said, gesturing toward the council.

To guarantee that stance, the chamber's proposed agreement with the city includes a clause barring the use of city funds "to endorse, support or oppose any political candidates for local, county, state or federal office," Corrales pointed out.

However, the agreement also reserved the chamber's right to issue opinions on legislation "that it feels are beneficial or detrimental to its membership or to the citizenry at large."

"I'm not opposed to giving, granting or using city funds to promote Palmdale businesses, whether they're Hispanic, Afro-American or purple," Norris said. "The money was budgeted and then we were informed of it - that (is what) I had a problem with."

Further, the way the issue was publicized seemed to be for "political rather than business purposes," Norris said.

Not true, countered Ledford, who pointed out the money was offered to the Hispanic chamber on the same basis that $40,000 is provided each year to the Palmdale chamber: Under a business agreement that requires the organization to perform specific deeds on the city's behalf and to report on its progress each quarter.

No money is budgeted until it is approved by a majority vote of the council, Ledford continued, and every member of the council has a right to make budget suggestions.

Information about the proposal was circulated in a memorandum sent to all council members on April 6 after the subject of funding was broached with the Hispanic chamber, the mayor said.

"The political side of this issue is when you have people from outside our community trying to control an agenda when they had no business being involved," Ledford said, referring to Norris and Dispenza's subsequent meeting on the matter in the office of Lancaster businessman Frank Visco.

"That's where the issue of politics came into play," he said. "I think if we take the politics out of it and it stands on its own merit, we've got a winner."

Hispanic chamber President Mario Guzman said he was "saddened to see this turned into a political football" after members of the chamber approached the city for assistance in relocating to another office.

That request developed into a proposal to grant the Hispanic chamber the same funding that's granted to the Palmdale chamber, Guzman said.

Since the Hispanic chamber is a Valleywide organization, "What I want to make sure of is that we in Palmdale get the full benefit of whatever we're actually giving out," Dispenza said.

Toward that end, he would want the chamber's operations monitored to make sure Palmdale gets its money's worth, he said.

Corrales said the chamber would log its inquiries and responses concerning business queries.

The group already has conducted its most high-profile events in Palmdale, bringing revenue and publicity to the city, she said.

"Most of our membership happens to be in Palmdale. That's why we have our (existing) office here," Guzman said.

Tuesday's workshop ended with no firm decision.

Ledford agreed Lancaster should share the Hispanic chamber's cost but asked the council to review the group's proposal before deciding whether it would bring the desired benefits.

"Let's allow a memorandum of understanding to be developed to show those benefits, then we can make a qualifying judgment," he said. "Then we can come forward and say, `Here's a dollar value that we're going to support and allocate.' "

Penner emphasized that his proposal for an initial $20,000 was only "a starting point" that could lead to additional assistance if the council sees fit.

City staff will work to formalize an agreement that will be brought back to the City Council for approval or rejection, City Manager Bob Toone said.

Even if the chamber funding is approved as part of the budget on June 13, no money will change hands until the agreement is approved, Toone said.