Funds Allocated to Dissolve Collapsed Aid Agency

City Council reluctantly approved a $75,385 appropriation Monday to cover Piedmont's portion of the $1,280,000 it will cost to disband a county aid agency that due to fiscal mismanagement. Along with the other municipalities that supported the Associated Community Action Program (ACAP), Piedmont has already contributed $25,000 for back pay and other unpaid bills and could be on the hook for still more.

ACAP had been providing essential services to poor residents in 12 of the 14 cities (excluding Oakland and Berkeley) along with the unincorporated areas of Alameda County since mid 1990s. Earlier this year it became clear that the agency was hundreds of thousands in debt and unable to make its payroll.

Management Partners, Inc., appointed by ACAP's governing board in March to administer the shut down, says there could be as much as $600,000 in further close-out costs that have not yet been counted. City Administrator Geoff Grote told the council Monday to be prepared for another $46,154 request to cover Piedmont's share once those liabilities have been confirmed. 

Council member Jeff Wieler, Piedmont's liaison to ACAP, echoed Grote's assessment that, despite the temptation felt by all the municipalities involved, trying to get out of the obligation is not worth the risk. The county auditor is examining ACAP's books and the county District Attorney's Office is investigating the possibility of fraud.

"Winding this thing up quietly seems to be in everybody's best interest," Wieler said.