Amador County Grand jury finds major faults with Sutter Creek

Friday, July 02, 2010

By Matthew Hedger

The Amador County Civil Grand Jury report, released Tuesday, outlines several areas of concern in various agencies, departments and facilities, but reserves its sharpest criticism for the city of Sutter Creek.

The report says as the result of unspecified complaints concerning the solvency and governmental efficiency of the city, a decision to form special investigative committees uncovered four areas of concern in the city: Finance, administration and policies; sewer and wastewater management; the police department; and the handling of animal issues inside city limits.

The report says a complaint regarding the spending of city funds led to an evaluation of how the city was handling all finances, including Highway 49 bypass funds and the loss of tax revenues associated with the closing of automobile dealerships within the city limits.

The report lends credence to recently ousted Finance Manager Jeff Gardner's allegations of improprieties, some of which have now been listed as facts in the grand jury report. They include former City Manager/Chief of Police Rob Duke's entrance into an "emergency" contract to upgrade the city's wastewater treatment plant after consulting with only one council member and without approval of the full council, which the grand jury says is a violation of California Public Contract Codes.

The report said Duke declared another emergency on the city-owned Musetti house because of an eroding foundation, bypassing the bidding process without council approval. The report says a planning commissioner pointed out the project remains unfinished and was ultimately stopped due to lack of funds after costing the city more than $59,000.

The report also said a Sutter Creek police officer left work on medical leave in November 2008, filing a workers' compensation claim in January 2009 which was denied in April 2009. Duke approved the continuing full-salary payment to the officer without council approval, apparently on the assumption that the claim would be ultimately reversed. The grand jury said it was unclear if a final determination was made showing the officer's absence was work-related. If not, payments made to the officer would constitute a misuse of public funds.

The grand jury was sharply critical of the absence of inventory records for city-owned property, including vehicles and computers, made worse by the city's apparent ongoing failure to track depreciation of assets, after being advised annually by an outside auditor to do so.

The report says the city's employee handbook, policy manual and personnel handbook are either out of date, not being followed or, in some cases, at odds with state laws and regulations.

The report says although City Clerk Judy Allen is responsible for producing minutes of council meetings and updating the Ordinance and Municipal Code book, hard copies of the minutes are months out of date, and city ordinances and municipal codes are out of date by four to five years.

In the finance, administration and policy portion of its report, the grand jury outlined a total of 18 facts, 24 findings and 24 recommendations.

Included in its comments on the sewer and wastewater management, the grand jury reports that the city has a history of raw sewage spills blamed on the age of the sewer system, and that a state-mandated Sanitary Sewer Management Plan remains neglected and incomplete. The report says the timely completion of the plan might have prevented at least one of two spills in April 2010 if required elements mandated to be part of the plan had been followed. The report also said many restaurants in the city are not using grease interceptors, a violation of municipal code, and that the antiquated sewage collection system will adversely affect future growth.

The report recommends completing the SSMP in a timely manner to minimize future spills and updating it annually in order to maintain compliance with all state laws.

In the SSMP portion of their report, the grand jury identified seven facts, six findings and eight recommendations.

Regarding the wastewater treatment plant, the grand jury reported the system had been the subject of controversy both before and after an upgrade was started in late 2007. The report said $2.25 million may have been spent on the upgrade, although city officials have not agreed on the cost, condition or efficiency of the WWTP since the upgrade began.

The grand jury says that the WWTP effluent is currently exceeding Regional Water Quality Control Board standards and that previous manager Duke did not obtain required licenses and certifications needed to hold the positions of either manager or general contractor on the upgrade project. The report said the engineering and consulting firm hired to design the upgrade, HDR, took a "trial and error" approach to the project, resulting in several deficiencies, including failing to provide an updated operations manual and failing to follow through with its obligations to the city.

The grand jury report recommended the city immediately launch an investigation of HDR's contract with the city, specifically a clause for "errors and omissions."

The report lists 12 facts, 13 findings and seven recommendations regarding the WWTP.

During their investigations of animal control issues in the city and complaints about administration, the grand jury says it elected to investigate the police department to examine communication, policies and procedures, and morale within the department. Their report says, in part, that the department is underfunded, with only one officer on duty during a shift. All officers have taken a reduction in pay and are utilizing outdated computer equipment while performing their own office duties, due to a lack of office support staff. The report says a morale problem exists within the department, in part due to reductions in pay, lack of support by the city council and former chief Duke, and a breakdown in negotiations with the city regarding continued employment and pay structures.

The grand jury recommends the elimination of the dual position of city manager and chief of police, a move already implemented following the departure of Duke, the promotion of Assistant City Manager Sean Rabe to Interim City Manager, and the appointment of Sergeant Brian Klier to the top cop position last week.

In the SCPD portion of their report, the grand jury listed 20 facts, eight findings, and seven recommendations.

Animal issues within city limits were investigated following a citizen's complaint regarding reasonable kennel size. The grand jury report said prior to December 2008, most animal control issues were handled by Amador County Animal Control.

In an apparent cost-cutting measure, Duke decided that SCPD would handle its own calls for animal-related service within the city, and ACAC would be called in for assistance when necessary. This portion of the report reads like an old-fashioned dime novel, with Duke apparently severing ties with ACAC through the actions of the board of supervisors after receiving a bill for services rendered for $4,310 for the 15-month period ending in December 2008.

Again, apparently acting on his own, the report says Duke successfully argued for forgiveness of the debt from supervisors, but failed to notify the ACAC director, the Amador County Sheriff's Office dispatcher or even his own officers of the change in policy, which included having to obtain permission from Duke personally before calling for ACAC assistance.

The confusion resulted in yet another complaint after a Sutter Creek resident was unable to utilize ACAC services due to his Sutter Creek address. The grand jury recommended the county and city renegotiate their animal control services agreement on an annual basis and provide notification of all policy changes to all concerned, including the residents of the city.

In all, the grand jury identified three multi-faceted facts and 24 findings, and made nine recommendations regarding animal control for the city of Sutter Creek.

The complete 2009-10 Amador County Civil Grand Jury Final Report is available at county libraries, and online at www.amadorcourt.org/grandjury/grandjury.html#reports. Previous years' reports are also available online.

A history section of this year's report says that the grand jury is an investigatory body created for the protection of society and the enforcement of the law. The U.S. Constitution's Fifth Amendment and the California Constitution call for grand juries. Grand juries were established throughout California during the early years of statehood. As constituted today, the grand jury is part of the judicial branch of government, an arm of the court.

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