A grand jury analysis of the Del Norte County Fairgrounds, Recreation and Parks Special District sheds light on how the local district works with the state-appointed board that operates the fairgrounds.
The 2017–18 Del Norte County Grand Jury also made several recommendations, including encouraging the local special district to resubmit a lease agreement with the State of California to a new governor following the November 2018 election. This lease agreement would transfer possession, control and management of the fairgrounds from the 41st District Agricultural Association to the Del Norte County Fairgrounds, Recreation and Parks Special District.
The 41st District Agricultural Association, whose members are appointed by the governor, operate under a memorandum of understanding for the Del Norte County Fairgrounds, Recreation and Parks Special District to transfer a portion of a 0.25 percent sales tax revenue to the 41st District to fund operation of the fairgrounds. The grand jury encouraged the local board and state board to continue following their MOU.
“More detailed information should be provided by the 41st State Board as to the purpose of the Del Norte County taxpayer funds and how they will be spent,” the report reads. “The local board should place more explicit restrictions on the use of the funds to ensure Del Norte County taxpayer funds are not being used in improper ways on State of California property.”
In a Sept. 13 response to the grand jury, Doug Wakefield, chair of the local fair board, stated that the MOU is being followed correctly and that the special district has provided copies of the state board’s finances to the public before each board meeting.
“The district’s number one priority is and has always been to make sure that the taxpayer funds are not being used improperly by the 41st (District Agricultural Association),” Wakefield writes.
Seats on the Del Norte County Fairgrounds, Recreation and Parks Special Districts occupied by Wakefield, Steven Westbrook and Sabina Renner are up for election. The three incumbents are being challenged by Crescent City resident Linda Sutter.
The State of California’s 41st District Agricultural Association has maintained, funded and operated the fairgrounds for 92 years. The 41st Agricultural District board members are appointed by the governor. However when the state eliminated about $200,000 in funding to the Del Norte County Fairgrounds in 2011 and the facility faced potential closure, several avenues were explored, including the creation of the Del Norte County Fairgrounds, Recreation and Parks District, which would operate locally. The special district would be funded via a 0.25 percent sales tax, which voters approved when Measure F passed in November 2014.
The sales tax, which started April 1, 2015, generates about $54,000 per month. Thirty percent of that funding is set aside in a reserve to keep the fair operating beyond 2022 when the sales tax is set to expire.
According to the grand jury report, since between April 1, 2015, and Feb. 28, 2018, the county has received $1,897,826.73 in sales tax revenue. The county transferred $1.281 million to the local fair board. The local fair board has $359,882.66 in reserve and has spent or transferred $921,920.81, according to the grand jury report.
In an interview with the Triplicate, Wakefield said the local board is tasked with providing funding to the 41st District Agricultural Association. Both boards meet jointly, however the 41st District Agricultural Association operates under a different set of guidelines in that sharing financial information must be approved by state attorneys, Wakefield said.
Wakefield responded to a finding in the grand jury analysis, stating that limited information was provided regarding specific spending elements and restrictions on the use of transferred funds. In Wakefield’s letter, the local board disagreed with that finding, however it noted that information could be made more easily accessible to the public.
The fair board’s letter also notes that it has appointed two board members to serve on a financial committee, which has met once a month every month with the exception of July and August. The finance committee will resume meetings in September, Wakefield writes.
“I can tell you that as a board we are aware of where all the money goes,” he told the Triplicate on Monday. “We don’t have limited information regarding specific spending elements, and the reason that there is limited information regarding specific spending elements is because that would have to be done by the 41st District.”
According to Wakefield, the 41st District Agricultural Association and the local fair board had hoped to gain more local control of the fairgrounds when Measure F passed. He said the state attorney general drafted the lease agreement between the local board and the state; however, the governor decided not to sign the lease agreement.
The fair board had a few opportunities to lease out portions of the facility, something that would have offered a steady income stream to the struggling fairgrounds, Wakefield said.
“What we wanted was the ability to sign leases and things of that nature,” he said. “We thought we had every reason to believe that would happen until we found out that wasn’t going to happen. Once we found that out, then we did the best thing we could do, which was just fund the 41st (district) and have them still be the controlling board.”
In his response to the grand jury report, Wakefield states that the local fair board will discuss re-submitting the lease agreement to a new governor with the 41st District Agricultural Association in about six months. Wakefield told the Triplicate that a new governor will have a lot of new appointments to make and could potentially create a new board to run the 41st District Agricultural Association.
Even though a reserve fund has been created to continue to fund the fairgrounds after the sales tax sunsets, Wakefield said the local fair board and 41st District Agricultural Association needs to “get a lot of stuff done.” He noted that board members are trying to find other income streams that will increase revenue and are working to cut expenses, however since the sales tax was implemented the 41st District has also had to make long-overdue repairs to several buildings at the fairgrounds.
Since the fairgrounds began receiving additional revenue, new roofs have been added to the Floral Building and the office. A culvert near the Tri Counties Bank Arena was replaced, which alleviated flooding issues and the livestock building received a new coat of paint, Wakefield said.
“One of our next biggest projects is where the concessions booths are,” he said. “Those have to come out because we can’t afford to make them meet fire codes and health codes any more — they’re just too old and rotten and not built right. Our plan right now is to take those out and put in pedestals so that it’ll be like the 4th of July.”
Wakefield said the fairgrounds will focus more on food trucks and food trailers rather than an actual building for concessions.
Four of the fairgrounds’ horse barns also need new roofs, he said.
“The fairgrounds knew it was running out of money since 2011, and so even when they got their money it was never really enough,” Wakefield said. “It was just enough to make it work, and the only reason we made it work at all is we had Randy Hatfield, who was manager, plumber, electrician, mower operator. He found everything used or free, and there’s still lots of donated stuff and money that comes in that way.”
In its analysis, the Del Norte County Grand Jury encouraged the local fair board to make a greater effort to publicize and reach out to the community. This includes increasing the posting locations for meeting agendas, using the electronic sign near the highway as well as its website.
According to Wakefield’s response, the district has created and will maintain a book of approved minutes from its meetings and make that available to the public at the fair office. A book of the local fair district’s financial records, including the budget, funding transfers, payments and other records will also be available to the public at the fair office, according to Wakefield’s response.
The grand jury also stated that the public may wish to explore re-submitting the question of a sales tax on the ballot.
Wakefield wrote that he didn’t have a response since this was not a recommendation for action by the local fair district.
September 25, 2018
Del Norte Triplicate
By Jessica Cejnar
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