Monterey County civil grand jury investigates Carmel government

Carmel >> Monterey County’s civil grand jury is investigating the city of Carmel-by-the-Sea’s operations during the time Jason Stilwell served as city administrator.

The 19-member grand jury has heard testimony from Carmel residents. One of them was Richard Kreitman who wrote a letter requesting the investigation on behalf of Carmel residents.

At a November Carmel City Council meeting the council agreed that Mayor Jason Burnett would request that the grand jury investigate the city. At the same meeting Kreitman announced that an ad hoc group of citizens had met with the grand jury foreman and also would be seeking a probe of the city.

The letters were submitted the same week as the council meeting, Kreitman said. He said he testified before the grand jury but could not relate the substance of his testimony. He declined to name others who testified.

“Here you have the perfect vehicle to do it … (the investigation),” Kreitman said. “They are independent and they are less involved that those of us in the community, and it’s their job to do it.”

The grand jury will present its report in June and the city is required to respond to it. However, the city does not have to take action and can ignore the report if it chooses.

The investigation requests stem from a series of events during Stilwell’s administration. Longtime employees were fired or put on administrative leave with pay. There were questions about overpayments to city contractors and lawsuits and grievances filed by city workers.

Kreitman’s complaints to the grand jury include:

•     Cronyism.

•     Unfair treatment and termination of city workers.

•     Extreme lack of transparency and non-responsiveness to Public Records Act requests.

•     Loss of institutional memory and deterioration of city services.

•     Fiscal irresponsibility regarding legal exposure and expenses.

The complaint wants the grand jury to determine what lapses in governance and oversight failed and were permitted to continue.

Burnett’s letter also asks jurors to figure out what went wrong and to look at the city’s checks and balances, policies and internal controls.

The City Council has taken a number of actions to rectify its problems as suggested by new City Administrator Doug Schmitz. Among them: Three fired employees have been reinstated and an investigation of city contracts is under way.

Stilwell resigned from his Carmel post in October. He is now working for the city of San Luis Obispo as interim director of IT and financial planning.

“I have no animosity toward Mr. Stilwell …,” Kreitman said. “I met Mr. Stilwell a number of times and I always thought he was a nice guy.”

As for the grand jury report on the city, Kreitman said, “We’ll see what happens.”

January 30, 2015

Monterey Herald

By Tom Leyde