Thursday, June 18, 2015

West Contra Costa school bond oversight 'stymied,' grand jury says


MARTINEZ -- On the heels of a whistle-blower's mismanagement allegations in the West Contra Costa school district's $1.6 billion bond construction program, a new grand jury report criticizes its bond oversight.
"It appears that the board of education of the West Contra Costa Unified School District has failed to create a truly independent and effective bond oversight committee," the Contra Costa County civil grand jury report states.
"The system appears to have been hampered by lack of essential cooperation from the ... school district, conflicts of interest may have existed and the school district may have imprudently spent millions of taxpayer dollars."
Property owners in the district pay three times more than the state average in taxes related to bond assessments, the report says.
It also says the district's school construction costs are three times the state average and the district is running out of money before all of its planned projects can be finished.
To avoid conflicts of interest, the grand jury recommends eliminating five board representatives on the 19-member committee, along with the Contra Costa Building and Construction Trades Council representative, and converting the Public Employees union representative to an at-large position.
After finding that some committee members never filled out applications, the grand jury recommends that a selection committee choose representatives "through a transparent process to ensure public confidence."
Alluding to documents released in April by whistle-blower Dennis Clay, as well as committee observations, the grand jury said bond construction financial reports have not been accurate or complete.
The district should provide the committee with "complete, detailed and comprehensive financial data" related to bond spending and board votes at least one week before trustees act, to allow for "meaningful and effective review and oversight," it said.
The oversight committee should also receive reports at least monthly, the grand jury said.
Other recommendations include:
     giving the committee complete access to its district-run website;
     requiring that the panel chairman OK all changes to the website;
     creating a master facilities plan;
     giving committee members comprehensive training;
     following board policies related to bond oversight;
     ensuring that the committee includes all legally required members.
The oversight panel's situation has somewhat improved during the past year, after two new board members were elected in November, the grand jury said.
The board must respond to the report by Sept. 11.
District spokesman Marcus Walton said in an email that the board has taken some actions to improve bond oversight.
These include authorizing the appointment of legal counsel for the committee, providing monthly financial reports, streamlining responses to committee requests for information and posting them on the website, and updating the website.
The board has also begun discussing trimming the committee's membership, Walton said.
Trustee Randy Enos said the board is committed to transparency. He supported a formal selection process for committee members.
Enos also said the school board has agreed to hire a consultant to create a facilities master plan and the district provided training for committee members during the past year.
The board is also pursuing a forensic audit of the bond program, based on Clay's allegations.
June 18, 2015
Contra Costa Times
By Theresa Harrington

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