Council Accepts Baseball Assn.’s Reform Plan : Finances: Contract requires detailed budget breakdowns and monthly financial reports. But critics are not satisfied.

The Montebello Baseball Assn., under pressure from critics and state auditors, has won the right to stay in business after agreeing to allow the city to keep a closer watch over league finances.

By a 3-2 vote, the Montebello City Council on Tuesday approved a contract with the league that requires detailed budget breakdowns, monthly financial reports, public access to records and league compliance with all local, state and federal guidelines for charitable organizations.

The city’s oldest and largest youth sports association got into trouble with state auditors for failing to file required financial information from 1986 through 1990 with the state attorney general’s office, the state Franchise Tax Board and the Internal Revenue Service. The state suspended the corporation in 1989 for failing to file tax returns.

Although an attorney general’s audit of league records is under way, Councilman Ed Pizzorno said the league deserved his continued support.

“I was satisfied that the audit would show inefficiency but not criminal action,” said Pizzorno, who joined longtime league boosters Mayor Arnold Alvarez-Glasman and Councilman Art Payan in approving the contract.

Sign-ups have already started for the 1992 season, which will run from April to mid-August, league officials said. The organization serves about 700 players ages 5 through 18 on about 60 teams.

Commissioner Larry Salazar said he never doubted that the league would persevere. “The whole association board is happy that this is past and that we’re going to start another season,” he said.

Council members Bill Molinari and Jess Ramirez voted against the contract approval. They said the league is in violation of the new contract for having failed to provide required financial information to government agencies.

“Here we are implementing a contract when we know they are in noncompliance,” Ramirez said. “I feel there have been enough questions raised about Montebello Baseball to warrant a full investigation.”

Many of the questions were raised by former team Manager Al Rivera, who became an outspoken association critic and headed a group offering a rival proposal to run youth baseball. Rivera’s group publicized the association’s debts, which Rivera estimated to be about $20,000. League officials said the figure is closer to $15,000.

Rivera has also charged that the league is taking in more than twice as much money as it says it is and is using the money to finance the association’s traveling all-star teams that occasionally go abroad for tournament play.

He complained that the council majority, in approving the contract, has instructed city staff members to “close their eyes to improprieties.”

Salazar has repeatedly denied all allegations of wrongdoing, saying that parents of the traveling team members pay all the additional expenses. He also insisted that the association’s failure to keep and file required financial information was the honest mistake of enthusiastic, but untrained volunteers.

His defense persuaded the council majority that in late December instructed staff to begin negotiating the new contract over the objections of Molinari and Ramirez.

“I believe in the bid process,” Ramirez said. He complained that Rivera’s proposal got short shrift. “I think it should have been considered on its merits.” His plan for a new baseball league promised lower costs, more activities and efficient record-keeping.

Molinari said that although he’s unhappy with the outcome he is grateful to see more city oversight stipulated in the new contract. Some of the adopted improvements originally had been part of Rivera’s plan, Molinari said.

City officials said the tighter rules would apply to all the city’s youth sports leagues.

Mayor Alvarez-Glasman, a former baseball association commissioner, said he was also pleased with the new contract. “If Montebello Baseball isn’t doing the job, we’ll know about it much earlier,” he said.

Alvarez-Glasman added that he supported Salazar’s organization because Rivera’s group lacked communitywide volunteer support. Alvarez-Glasman said a further delay in awarding the contract would have jeopardized the start of the Little League season.

“Montebello Baseball does a fine job,” he said. “I know quite intimately the positive parts of the program. Historically, every year, one or two parents are displeased with the board for whatever reason.”

At Tuesday’s meeting, the mayor cut Rivera short when he tried to argue once more against awarding the contract to the Montebello Baseball Assn. “I’m sorry you’re not happy,” Alvarez-Glasman said. “They’ll be 500, 600 boys and girls playing ball in the park. Hopefully, they’ll be happy.

“I’ll be at the park to make sure they are,” he said.