Thursday, June 30, 2011

Watsonville blasted in grand jury report: City manager calls investigation 'biased'

By DONNA JONES
Posted: 06/27/2011 09:10:00 PM PDT
Updated: 06/29/2011 05:35:32 PM PDT

WATSONVILLE — Watsonville Fire Chief Mark Bisbee expected the department's new aerial ladder fire truck to roll into town early Tuesday — not quite in time to escape criticism from the Santa Cruz County Grand Jury.

In its annual report, scheduled for official release Wednesday, the civil grand jury takes the city to task over the purchase of the used fire truck, a process the panel said is illustrative of a lack of transparency and professionalism in city dealings.

Watsonville City Manager Carlos Palacios said he was reviewing its findings and was “looking forward to preparing a full response,” but he characterized the report as “very biased and inaccurate.”

Doug Horton, the grand jury's foreperson pro tempore, declined to comment in advance of the official release. The report was leaked to media Monday.

The 76-page document, the product of months of research by the 19-member panel, also examines regional transportation issues, the County Jail and the Pajaro Valley Unified School District's process for picking an insurance vendor.

The jury investigated several aspects of city affairs, including the fire truck purchase, a building permit, land-use conflicts around the Watsonville Municipal Airport, redevelopment and the Manabe-Ow business park project.

In the section of the 2011 report titled “City of Watsonville: Fastest Growing City Looking for Leadership and a Fire Truck”, the jury said the five issues illustrated “a laxity of process and controls” within city government.

The report commends Watsonville for operating with less than half the budget of the city of Santa Cruz and says the city “justifiably prides itself for the level of services they provide on a very low budget.”

But the report concludes that “the Watsonville City Manager should implement processes to ensure transparency, completeness and accuracy of the information provided to the City Council, City Commissions and the public.”

In bringing the Manabe-Ow business plan to elected officials for a vote, staff didn't provide a full accounting of either the cost or identify a funding source, according to the report. The project will need an estimated $31 million for infrastructure, and in December, two months after a City Council vote to approve the project, the staff asked its state representatives for help in getting redevelopment law changed so those funds could be tapped.

Palacios said the issues were hashed out in a public process that included an advisory committee as well as at the Planning Commission and City Council.

“The infrastructure needs and the need for a subsidy was discussed numerous times over multiple years,” he said.

In other findings, the report recommended the city:

Report redevelopment projects, revenue, expenses and bond obligations online for public review. Investigators say they were unable to evaluate the effectiveness of the redevelopment agency due to the lack of information. Palacios pointed to several projects. “We constructed a new library, new courts. We helped bring Cabrillo College to downtown Watsonville, constructed two parking garages,” he said. “We are creating a climate that allows and encourages economic development.
Train personnel to ensure financial transactions and contracts are handled properly. The recommendation stems from the fire truck purchase. The city gave a broker $225,000 from a federal grant to buy an aerial truck in 2008, but then changed its mind after what Bisbee said was a superior vehicle became available from the same broker for the same price. The city has been waiting three years for delivery of the KME aerial ladder truck due to the complexity of a three-way deal that included two Southern California cities. Meanwhile the broker held onto the cash. The fire chief conceded there were “lessons to be learned,” but maintains the community is getting a good deal that will be worth the wait.
Fully disclose and discuss issues surrounding development near the Watsonville Municipal Airport to avoid costly litigation. Lawsuits brought by the Watsonville Pilots Association and other groups have cost the city more than $1 million.
Check with environmental health before issuing building permits. In 2007, a permit was issued to Jalisco's Restaurant to build an outdoor patio. The site, once home to a plant that turned coal and oil into gas to light and heat Watsonville homes and business, was contaminated with hazardous materials in the early 1900s, and the soil is not supposed to be disturbed. During the grand jury study, the issue was referred to the state Department of Toxic Substances Control, which found the construction was unlikely to have caused any harm. Marcela Tavantzis, interim community development director, said the city is not required to check for contamination, that it's the property owner's responsibility to bring such matters to the city's attention. But, she said, the city could establish a policy, thought it add costs to the permit process.





INVESTIGATIONS and RECOMMENDATIONS

The Santa Cruz County Grand Jury also examined other agencies and issued findings and recommendations.

Regional transportation

The Regional Transportation Commission should write transportation sections of general plans for cities and counties since A lack of integrated planning has resulted in ‘deplorable traffic congestion.'

Property taxes

Tax Collector's Office should establish policies for obtaining a waiver for fines on delinquent taxes and communicate them broadly to ensure fairness and transparency.

Pajaro Valley Unified school district

School district should develop process to increase vendor competition for insurance services and improve comprehensive accounting of costs.

County Corrections

Reducing recidivism should be primary goal and a cost-benefit analysis should be conducted to ensure money is well spent in era of declining revenue.

SOURCE: Grand Jury report



AT A GLANCE

WHAT: 2011 Santa Cruz County Grand Jury Report

WHO: Jurors Janice Hewitt, Kris Desmond, Marc Los Huertos, Doug Horton, Alex Clancy, Jay Leite, Carl Galewski, Greg Fyvie, Jim Kerr, Rich Simms, Cheri Hrapoff, Steve Johnson, Patricia Goslin, Erik Zinn, Bob Blanchfield, William Gutzwiller, Gayle Larson, Dolores McCabe and Amber McMeans

WHEN: Release is set for Wednesday

WHERE: See Grand Jury report

http://www.mercurynews.com/breaking-news/ci_18365967

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