Sunday, March 24, 2013

(Humboldt) Not so fair in Ferndale; association looks to appoint interim GM

Grant Scott-Goforth/The Times-Standard -

Over the last few months, the Humboldt County Fair Association board has voted against renewing the contract of its longtime general manager, been accused of violating the Brown Act, had some members receive subpoenas from the county grand jury and taken a few verbal lashings.

County officials say there's little oversight for them to provide, other than approving the association's budget and its lease for the fairgrounds -- and they are not looking to step into the fray.

The fair board is slated to consider appointing Ferndale resident Richard Conway as the fair's interim general manager on Monday, according to an agenda. Calls to Conway were not returned, and the fair association did not respond to requests for Conway's application. Fair association President Tim Renner did not return several calls requesting comment.

The fair is slated for Aug. 14 to Aug. 25, and is considered a major economic draw for the county.

The recent turmoil began in January when the fair association voted against extending the contract of longtime fair General Manager Stuart Titus, who is also the mayor of Ferndale. His contract ended Feb. 28, after 22 years of service.

Titus said in a previous statement to the Times-Standard that the decision against renewal stemmed from an April 30, 2012, meeting where he was informed by the 21-member board that they “felt threatened” when he reminded them that they had to follow the Brown Act -- the state's open meeting law -- and when he electronically recorded meetings.

Titus said board members also expressed reservations about his association as a silent partner of the Ferndale Enterprise. His wife Caroline Titus is the paper's owner, publisher and editor.

Stuart Titus said he “was informed that, as the silent partner of the Ferndale Enterprise, I should ensure that board members be 'made not to look bad' in any stories which appear in the weekly publication.

”To accentuate these points, a certain member of the committee informed me that if I failed to take them into account, it could cost me votes when it came time for my contract to be renewed,” he said in the statement.

Stuart Titus has declined repeated Times-Standard interview requests since January.

In a January interview with the Times-Standard, California Horse Racing Board Executive Director Kirk Breed called Stuart Titus “one-of-a-kind” in his willingness to fight pressure from other fair managers who wanted to take control of the Humboldt County Fair's horse racing meet.

”That meet could have fallen by the wayside many times,” Breed said. “Stuart has always been the one that stood up to those guys.”

The third and most recent board member to step down is Ken Christen, who 1st District Supervisor Rex Bohn said was instrumental on the building committee that oversaw maintenance of the fairgrounds. Christen did not return calls seeking comment.

The Humboldt County Fair Association is a nonprofit corporation that's considered an affiliate of both Humboldt County and the state. The association leases the Ferndale fairgrounds -- approximately 65 acres -- from the county.

The Board of Supervisors has the option to terminate that lease -- it's due to end Aug. 31, unless renewed. The current lease agreement was written in 2002, modified in 2004, and is renewed every three years.

Fifth District Supervisor and board Chairman Ryan Sundberg said he's not concerned about the fair board's possible Brown Act violations, which Caroline Titus has written extensively about in her coverage of the fair board.

”I haven't seen anything where they've broken the Brown Act. That's completely speculation,” he said, adding that even if the grand jury finds violations, he expects they will be rectified. “I don't know if we even need to be a safeguard.

”It's a big board with a huge spread of community members on there that I respect,” he said. “I think they should be able to self-police themselves.”

Bohn, whose district includes Ferndale and the fairgrounds, agreed with Sundberg's assessment on the violation allegations.

”All we have is the fact that they did not extend the contract, or offer a new contract to Stuart,” he said. “Maybe they'll come out with the grand jury, and maybe they won't.”

The lease agreement between the fair and county calls for the association to submit a copy of the minutes of each board of directors meeting. The county would not confirm to the Times-Standard whether the association complies. The lease agreement also states that fair association records be made available to the county on request.

In a prepared statement, Bohn said, “For more than 100 years, the Humboldt County Fair has been a significant contributor to the community, and the County has not needed to provide a level of oversight to the actions of the Fair Association in view of the other needs that the County has faced during this period.”

According to a California Division of Fairs & Expositions 2009 economic impact study, the Humboldt County Fair generated approximately $6.4 million in “spending activity” in 2009, and created the equivalent of 70 jobs as a result of spending by the fair, its support businesses and its attendees.

The county approved a $1.3 million proposed 2013 operating budget earlier this month, an annual formality, according to Bohn. An independent audit reviewing the fair association's 2011 financial statements found no significant conflicts.

Bohn said the staff reviews the budget and recommends approval, barring any glaring discrepancies.

”You look for any red herrings,” he said. “Nothing jumped out at me. That's the same thing we want to do for anyone that leases our property.”

The Ferndale Enterprise reported in its March 14 issue that the board's entertainment committee -- tasked with selecting a theme for this year's fair -- was advised by the association's attorney to reach a consensus via email, an apparent violation of the Brown Act because the decision-making process takes place outside of the public's purview.

Attorney Paul Nicholas Boylan, who specializes in government transparency, said there's a “huge test” to determine who must follow the Brown Act.

”Even if you're not required to follow the Brown Act, if you do it, you're stuck with it,” he said.

The fair association policy manual specifically mentions the open meeting law.

”Conduct of meetings -- All meetings (with exception of Board policies, or any state required procedures) will be conducted in accordance of Robert's Rules of Order, as well as provisions for public meetings as described in the Brown Act,” the manual reads.

Meanwhile, some of the fair board members have been subpoenaed. It is unclear exactly what the grand jury is investigating, or why. Grand jury Foreman Robert Dunlap confirmed by telephone that more than one member of the fair association was subpoenaed, but declined to comment further.

Jeff Farley confirmed to the Times-Standard that he was one of the board members to receive a subpoena.

Boylan said even if a grand jury turns up violations, it doesn't necessarily have the authority to enforce them.
”Grand juries are ways that the public blows off steam,” he said.

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