A $10.5 million renewable energy project and a public pension benefit policy blamed for Sutter County's $100 million retirement debt were criticized in several early reports from the grand jury.
Four reports from the 2015-16 grand jury were released about a month early. The reports included investigations into the need for more transparency in contract negotiations for public employees and a late response from the Board of Supervisors to the 2014-15 grand jury report, as well as the Chevron/Opterra Energy project and a increase in pension benefits passed in 2004.
The final report is scheduled to be released June 24.
The report found the Board of Supervisors violated California government code in 2004 when it passed enhanced pension benefits without an explanation of the financial impact of the increase. The report also found the agenda item regarding the pension increase was presented in "obscure" language and buried in the consent calendar, which is typically used for routine or non-controversial items.
By doing so, the county "did not allow for full transparency and very possibly curtailed or discouraged full public participation," according to the report.
As a result of the increase in pension benefits, Sutter County's unfunded pension liability increased from a surplus of $29 million in 2004 to a debt of $110 million in 2014, according to the report.
Board Chairman Larry Munger, who, along with Supervisor Jim Whiteaker, was the only sitting supervisor that served on the board in 2004, could not be reached for comment late Wednesday afternoon.
The early report also looked into a renewable energy project the Board of Supervisors approved in 2014 that included the construction of 10 solar arrays and other improvements projected to save the county about $18 million over 30 years.
The grand jury reported two of the sites for solar arrays, which would generate about two-thirds of the total power of the project, were not operational. The report said this was the result of "incomplete research" by the county and resulted in "extensive delays and added expense to the county."
The largest array was originally designed at the Sutter County Airport. The site was moved to a county-owned parcel on Acacia Avenue after the Federal Aviation Administration advised the county that a lengthy site study was needed to determine if the solar panels presented any safety issues.
The county purchased a portion of the Acacia Avenue site from the county road department for $84,000, said Megan Greve, director of general services.
The solar panels have been constructed but are not hooked into the grid. Greve said the array should be operational by the end of summer.
A second solar array at the county mental health office, projected to 16 percent of the total power of the project, was also delayed, and the county is still working on an alternate design, Greve said.
The delays will not impact the projected savings from the project, Greve said.
"It would impact the savings in that you won't get them quite as soon, but you will still get the same amount of savings once the array is put in," Greve said.
She also noted that the $18 million in projected savings is guaranteed by Opterra, which bought the project agreement from Chevron Energy Solutions.
June 1, 2016
Appeal-Democrat
By Andrew Creasey
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