Thursday, June 25, 2015

[Stanislaus County] Grand jury: Patterson city officials failed to follow government regulations in building purchase


The Stanislaus County civil grand jury says Patterson city officials disregarded government regulations when they purchased a 100-year-old building that is incapable of operating as a City Hall annex without costly, extensive upgrades and repairs.
Patterson paid about $650,000 for the building at 21/25 S. Del Puerto Ave. near City Hall. The city will need to spend an additional $2.4 million to bring the building up to structural and government code compliance, according to the grand jury’s annual report released this week.
The grand jury questioned Patterson Mayor Luis Molina about the building’s purchase on Nov. 13. The mayor, who was accompanied by legal counsel, told the grand jury that although the council thought it was a good purchase, he had concluded that the city “bought a lemon,” according to the report.
City Manager Ken Irwin had been on the job for about three months when he was questioned by the grand jury in November. Irwin told the grand jury he had no personal knowledge of the building’s purchase.
In a second grand jury interview in April 30, Irwin had contacted the previous city manager, who negotiated the purchase; the seller; and the title company that executed the escrow. Irwin said no formal purchase agreement ever existed, and that there was no awareness of any public action or council vote authorizing the building’s purchase.
On Tuesday, Molina referred comment to Irwin, who was not available. Molina said he had not seen the grand jury report but that the description of the building as “a lemon” was accurate. He said the building purchase was part of a larger plan to revitalize downtown.
The city’s finance director, Minnie Moreno, told the grand jury that finance officials did not attend, nor were they required to attend, City Council meetings, closed session meetings or property purchase negotiation meetings.
The grand jury says the purchase of the building was completed before having many, if not all, of the required inspections, feasibility reports, structural engineering reports and government code compliance. Its report indicates that Patterson city officials did not exercise due diligence in acquiring the property.
In August 2011, officials said there was a need for an annex that could provide additional space for the chamber of commerce, historical society and public meeting rooms. The expansion was intended to help promote cultural and economic interests.
While reviewing the complaint, the grand jury says it discovered violations of the Brown Act related to the building’s purchase. California’s open-meeting law, known as the Brown Act for its author, Assemblyman Ralph M. Brown, requires city councils, school boards and other local governing bodies to provide information to the public in a timely manner.
The City Council reported the price of the building, but it did not report the vote or abstention of each council member as required by the Brown Act, according to the grand jury. Also, meeting minutes for the council meeting of May 1, 2012, that contained information related to the building’s purchase were left off a consent calendar for a July 17, 2012, council meeting.
Those meeting minutes weren’t approved and adopted by the City Council until Sept. 4, 2012. That same day, the council also approved and adopted minutes from meetings May 15, June 5, and June 12, 2012. The grand jury said lack of timely approval of minutes defeats the purpose of transparency in government.
This wasn’t the first time the grand jury has found that the Patterson City Council violated this portion of the Brown Act. The 2013-14 grand jury report indicated the City Council failed to publicly release information from its meetings in a timely manner.
In April 2012, the city’s building official performed a courtesy inspection of the Del Puerto Avenue property. The official recommended that the building be reviewed by an architect or a certified inspector before its purchase to determine the extent of improvements needed to meet Americans with Disabilities Act requirements.
The grand jury says the recommended inspection was not conducted before the close of escrow on Aug. 14, 2012.
Initially, the seller agreed to make the repairs needed and later be reimbursed by the city. The seller told city officials the repairs would cost about $110,000. But the building was purchased before the repairs were made, and the seller was released of this obligation based on advice of the deputy city attorney.
The attorney also advised city officials that the repair project be publicly bid. This would directly affect the repair budget, and the bidding process would lengthen the project’s schedule.
The grand jury, a watchdog panel, is appointed by the presiding judge of the Superior Court to serve a one-year term. Its recommendations are not legally binding, but officials have 90 days to respond in writing to the findings.
Other civil grand jury reports
The Stanislaus County civil grand jury also released reports on these topics this week:
Oakdale Airport: The grand jury received a complaint regarding the management of the Oakdale Airport, citing poor maintenance, favoritism toward the major tenant, restriction in allowing new tenants, safety, security and not utilizing Federal Aviation Administration funds to maintain the airport. The complaint included safety and security issues such as lighting, obsolete entrance gates, no security cameras and inadequate perimeter fencing. The grand jury found no major maintenance problems, except for the 4-foot entrance fence that is too low and should be heightened. The grand jury also did not find any discrepancies in financial records, and there was no indication of favoritism among tenants. An FAA investigation of the concerns noted in the citizen’s complaint is still pending.
Stanislaus County jail facilities: The grand jury found the downtown jail is obsolete and should be closed once Public Safety Center Unit 2 and the new Stanislaus Superior Courthouse become fully operational. Jail officials should convert all existing safety cell video cameras to record onto media storage in an effort to mitigate claims of negligence or abuse at these high-risk locations. The county’s Day Reporting Center for probationers is an important facility that provides a centralized location for the variety of services needed or required by those on probation.
Regional 911 Center: The grand jury found that staff members said their dispatch software is outdated. The employees are highly trained and dedicated to providing public service. Two independent consultant studies have provided reports about the 911 Center recently, and a new director was named in February.
East Side Mosquito Abatement District: The grand jury found that while some allegations against the district were unsubstantiated, there are widespread human resources and management problems within the district. The grand jury believes the problems are significant and pervasive enough to require wholesale examination by outside experts to recommend corrective actions. The district is overseen by a board of directors appointed by the Stanislaus County Board of Supervisors. It has 18 employees, nine are seasonal, who cover more than 540 square miles in the northern portion of the county with an annual budget of about $2 million. The district’s current human resources system is outdated and does not appear to be adequate. Board members are appointed to a three-year term, with a two-term limit. The current tenure of the board is an average of 20 years. The grand jury found that there may be significant advantages in consolidating the East Side Mosquito Abatement District and the Turlock Mosquito Abatement District.
Local effects of state prison realignment and Proposition 47: The state’s prison realignment plan of 2011 meant lower-level offenders who otherwise would have gone to prison started serving their sentences in county jail. California voters approved Proposition 47 as a way to cut prison spending by reducing low-level, nonviolent property crimes and personal drug possession from felonies to misdemeanors. The grand jury recommends that the Community Corrections Partnership should develop strategies to increase public awareness of its mission and to encourage more public participation at its meetings. The sheriff and probation departments should continue to be active to ensure the county receives its fair share of prison realignment funding. The grand jury also recommends local governments should restore budgets and expand police services, particularly community-oriented and problem-oriented policing.
Juvenile Hall court school: In 2013, the school’s standardized test results showed that only 6 percent were proficient in English and 15 percent were proficient in math. Previous years produced similar data. The grand jury recommended that the probation officials should work with other county agencies and community-based organizations to develop an educational program that includes mentoring to provide a more individualized approach.
Stanislaus County public transit systems: The four transit authorities have differing policies, contracts, operating procedures and ridership needs. The grand jury found these differences have a negative impact, which is affecting ridership. Transit authorities have previously discussed consolidation strategies, and some authorities have completed reports with an emphasis toward partial or total consolidation of public transit needs. The grand jury also found that all four transit authorities are deficient in technological services. The grand jury recommended that the county Board of Supervisors should direct the Stanislaus Council of Governments to hire an independent professional consultant to conduct an all-inclusive consolidation of transit services study. The transit systems should implement technological upgrades that include automated fare boxes, Wi-Fi, GPS tracking and phone app schedules.
June 23, 2015
The Modesto Bee
By Rosalio Ahumada

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