These are tough times to follow what’s happening in Reston. Under stay-at- home, no congregating Covid-19 protocols, it is nearly impossible for local media or anyone to see what’s going on. Meetings are virtual and only Zoom knows!
For example, on May 21, the Reston Association Board of Directors under new President Julie Bitzer, held its first meeting of substance. If I hadn’t been forewarned, I like nearly all Restonians would have missed it altogether.
It turns out that a handful of senior RA staff, while mostly at home for the Covid shutdown, were doing big things, with neither oversight by, nor consultation with, the RA Board or the Fiscal Committee. During the May 21 virtual Board meeting three of the highly paid ones-the CEO, Chief Accountant, and General Counsel--gave brief, general descriptions of actions they undertook while consulting only with one another. The CEO, with advice of the Counsel, triumphantly announced signing a Payroll Protection Program loan [$1.3 million] from the Feds, a loan with funds intended for small businesses or charitable organizations. (RA is neither of those.) Nowhere, to my knowledge or that of lawyers familiar with RA governing documents, does the CEO have the authority to contract debt in any amount on behalf of the RA. Furthermore, no one participating in the May 21 meeting could define a need for such funds.
Yet, President Bitzer’s response to news of the debt was to note it was a difficult time, confusion was understandable! She didn’t question the CEO’s lack of authority, simply accepting Counsel’s view that he was unable to find a specific prohibition, so a $1.3 million debt unauthorized by the Board was OK! Nor did anyone see a problem with taking funds intended for small business or charity.
The CEO also announced unilateral cancellation of all of RA’s summer camps programs for kids without Board approval or consultation. In light of the current Covid-19 pandemic, this may not seem to be an unreasonable action. But, once again, it is not clear that he had the authority to do so, or whether it was an exercise in good judgement to do so unilaterally. As a final touch for the staff’s impressive tour de force, it was noted that they had not recommended amending the current budget totaling $17 million. This, too, was quite surprising since the Covid pandemic has led to cancelling or shrinking many program activities in addition to summer camps, continued closure of swimming pools and delaying planned hiring of several costly staff.
While the reduction in approved expenditures is likely to be in the low millions, we don’t have a precise estimate of the total decrease. One wonders why hadn’t the staff consulted with the Fiscal Committee about a major reduction of the 2020 budget to reflect the Covid-19 reality? One possibility is that senior staff preferred to keep extra cash sloshing around for more exotic ideas, like a fleet of swan boats and fine wine and cheese crafts for Lake Anne perhaps, rather than do something crazy like refunding it to Covid 19-stressed homeowners, for example.
Some in the community, myself included, are seeking corrective actions by the Board to show that a Board is needed at all! Too much authority has been carelessly ceded to staff with worrisome implications. As it stands, the CEO presumably can contract a debt in any amount he wishes, as Counsel’s half-baked opinion contemplates no upper limit.
We strongly urge that, inter alia, the Board investigate the PPP loan application to explain its content and any misrepresentation, for example; that the CEO provide full justification for cancellation of camps and, with the Fiscal Committee, a propose an amended budget detailing shortfalls in income and expenditures, and disposition of the surplus; that the Principal Financial Officer prepare timely detailed monthly reports on budget execution-best estimates of actual revenue and expenses for the Fiscal Committee and the Board; and, that budget amendments be submitted when any line item is to be exceeded by more than 5 percent. RA owes its members an explanation of what happened with the PPP loan and why the money was returned.
There is a glimmer of hope that the shocking police killing of yet another black man and the resulting national convulsion may lead to long-overdue systemic change. Minneapolis is committing to demilitarizing and re-inventing its police force. If they succeed, perhaps George Floyd will not have died in vain.