Lake County 2009-2010 - California Grand Jury Reports

📋June 30, 2010 — Health and Human Services Committee In-Home Supportive Services Oversight

311 pages 28 findings 22 recommendations

Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Government Services Committee Report

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Alleged Breach of Confidentiality 10-23

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Planning and Public Works Committee • Some programs administered by Water Resources face significant funding shortfalls

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Health and Human Services Committee Mental Health Department Oversight

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Budget and Finance Committee PEG Tv8 Report

8 pages 21 findings 12 recommendations

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Findings & Recommendations 21 findings

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

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Related Recommendations (1)

R5: The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14)

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

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Related Recommendations (2)

R5: The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14)

R7: The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

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Related Recommendations (2)

R6: The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9)

R8: The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

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F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

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Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund

R10: PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16)

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

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F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

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Related Recommendations (1)

R7: The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

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Related Recommendations (3)

R3: The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14)

R5: The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14)

R7: The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

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F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

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Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund

R10: PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

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F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

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F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

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F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

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F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

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Related Recommendations (1)

R7: The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

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Related Recommendations (1)

R4: The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

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F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

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F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

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F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

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F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

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Additional Recommendations 1

Not linked to specific findings.

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund

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📋June 30, 2010 — Clearlake Police Department

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Clearlake Police Department Oversight Report

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Public Safety Committee Correctional Facility Complaint 9-09

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Public Safety Committee Alleged Breach of Confidentiality Complaint 10-23

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Lake County PEG Channel Tv8 Strategic Plan

6 pages 5 findings 12 recommendations

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Findings & Recommendations 5 findings

F1: There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee

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Related Recommendations (2)

R1: The Redevelopment Agency establish priorities to fix and upgrade the current roads before attracting new businesses and offsetting the possible million dollars held back by the State. (F1)

R2: Budget money to improve grant writing and managing the Pubic Works department to attract funds and personnel for maintaining the streets. (F1)

F2: With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find.

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F3: As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it.

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Related Recommendations (1)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services.

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Related Recommendations (1)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail. Recommendations:

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Environmental Health

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Lake County Inmate Phone Services Report

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Health and Human Services Committee Oversight Report

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Public Safety Committee Lake County Sheriff Complaint 10-17

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Lake County Correctional Facility (unannounced)

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Public Safety Committee Alleged Threat from Public Official Complaint 10-24

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Budget and Finance Committee Recommendations

10 pages 5 findings 8 recommendations

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Findings & Recommendations 5 findings

F1: Currently there are no rental agreements between the City and the non- General Fund Agencies but it was stated that the verbal agreements were understood by the Department Heads. The rent revenue is used to replenish the General Fund. There are no standards that establish charging rent to non-General Fund Agencies. The rent being charged supposedly includes some percent of the cost of the Council and some maintenance charges, but there is no formula or record of how the number was determined. 2009/2010 adopted budget included rental income totaling $158,258.

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Related Recommendations (1)

R1: Negotiate formal written agreements for all Non-General Fund entities utilizing city owned facilities. These agreements will delineate the formula for calculating the “rent” including fair market value for the space, any recovery of City Council costs and any money set aside for maintenance, all indexed by the Consumer Price Index (CPI). Fair market value is obtained from an outside real estate knowledgeable advisor. (F1)

F2: While there is still considerable disagreement about what the voters meant when they passed Measure “I” and Measure “J” in 2004, the voter Budget and Finance Committee materials are quite clear. Some people are saying that it should be used exclusively for streets and roads, however: ▪ Measure “I” directed the City to, “…enact a one-half cent sales tax for City facilities, services, and programs? Yes___ No___” The argument in favor of the Tax indicated that the type of expenditures that the tax was to be used for included: • “Deferred maintenance of streets • Re-plastering the Westshore pool – Cost $150,000 • Repairing the Library Park headwall • Improving substandard storm drain facilities • Additional recreational amenities at Westside Park • Making Carnegie Library a functional facility.” ▪ Measure “J” stated, “If Measure 'I' is approved, should the proceeds fund repair and maintenance of City streets, park and community service facilities, and expand public services and programs? Yes___ No___” ▪ In 2004, Lakeport voters approved Measure “I” with a 61% vote and Measure “J” with an 82% vote. Therefore the Grand Jury concludes that the Measure I money is a general tax. It is obvious that the taxpayers were and still are confused and may have thought it was just for roads and streets. It was clearly not limited to that use. Thus using it as a general source of revenue is correct.

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Related Recommendations (2)

R2: The City Council needs to remember that 82% of the voters said via measure “J” that roads and streets are a priority. They should be constantly aware of the citizen’s desire and do all they can to improve the roads and streets. (F2)

R3: In order to do their part to meet the financial constraints placed on the city and to demonstrate their leadership to the employees who are continuing to take the brunt of the cost reductions and workload increases, the elected officials take an equivalent reduced benefit or pay. Even though they are allowed the benefits by state code, we recommend the elected officials show solidarity with the employees and voluntarily take a significant amount of reduction. (F2, F3)

F3: Regarding the signing of checks, the 2008/2009 Grand Jury found that the City Clerk was signing as one of the required signatures and then the City Clerk was affixing the Mayor’s signature with a rubber stamp thus circumventing the 2 signature policy. This year it was found that the City Clerk still signed as one signature, but the Assistant to the Finance Director applied the Mayor’s stamp. The Grand Jury believes that applying a signature to a check is a significant responsibility and should not be delegated in this manner by the Mayor. Budget and Finance Committee

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Related Recommendations (1)

R3: In order to do their part to meet the financial constraints placed on the city and to demonstrate their leadership to the employees who are continuing to take the brunt of the cost reductions and workload increases, the elected officials take an equivalent reduced benefit or pay. Even though they are allowed the benefits by state code, we recommend the elected officials show solidarity with the employees and voluntarily take a significant amount of reduction. (F2, F3)

F4: The committee observed a reconciliation of the petty cash fund and it was correct at $300.

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Related Recommendations (3)

R4: The Finance Director establish a separate Fund / Department for Animal Control to include ALL related costs. (F4)

R5: The City Council establish a policy that when decisions are made affecting the City budget, the City Council be provided backup financial detail prepared by the Finance Director and that the detail be available and kept with the budget for future measurement purposes. (F4)

R6: The City Council renegotiate with the County to have them continue to provide the Animal Control services. This is based on the City Manager now forecasting only a $25k annual savings and the fact that no detail has been provided for any of the savings and it is likely to actually cost more with the current approach. In addition, a cost benefit analysis which includes documented estimates of all costs as compared to savings covering the next 5 years be prepared and provided to the City Council. (F4)

F5: When asked whether the City had any specific financial benchmarks or goals, the answer was “none” other than meeting the budget. The Finance Director stated that her most specific concern was how to generate more revenue. Most organizations monitor and measure different ratios such as % of Accounts Receivable (taxes) that are delinquent, % of budget spent on labor, etc. The financial health of the City is a significant issue. Recommendations:

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Related Recommendations (2)

R7: The City Manager complete the preparation and compilation of City policies and procedures and present to the Council for approval. (F5) Agency/Department(s) Required to Respond: • City of Clearlake (90 Days) (R1, R2, R3, R4, R5, R6, R7) Budget and Finance Committee Budget and Finance Committee City of Lakeport Oversight Summary: The Budget and Finance Committee noted that the City of Lakeport’s interpretation of the use of Measure “I” and “J” funds in the General Fund is correct; that the lack of having specific rental agreements in place and at fair market value is a failure of proper process; that it would be advantageous for the City to set up a “Standby” Letter of Credit with a financial institution at the best rate available while the rates are low; and that the use of a rubber signature stamp by any other person than the person’s whose name is on the stamp is inviting the possibility of fraud. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee met with the City of Lakeport City Manager and Finance Director; reviewed and analyzed budgeted and actual expenditures for fiscal years 2003/2004 through mid year 2009/2010; evaluated audit reports for fiscal years 2006/2007 and 2008/2009; and reviewed other pertinent reports, documents, and statistics. The committee also examined petty cash logs and receipts; credit card bills, and supporting documents and observed a cash count of petty cash. Budget and Finance Committee Facts: • Lakeport officially became an incorporated town on April 30, 1888 and continued to operate as an incorporated town until March 17, 1952 when an ordinance was passed declaring the area a city. • It has a City Council/City Manager form of government. There are five elected City Council Members who serve overlapping terms and who annually select a Mayor from their ranks. • It is a city of 5,1354 souls, of which approximately 12 percent are under the poverty line5 and struggles in the current economic times to provide vital services to its citizens. It is in a rural county with a limited tax base with which to produce revenue. • The city covers 2.68 square miles, provides water and sewer services to approximately 2,500 customers, is responsible for maintaining 29 miles of roads of which, 85.9 percent (24.9 miles) are rated poor to very poor,6 and has a median household income of $32,226, compared to the county median of $29,627 and the state median of $47,4932 • It has approximately 55 city employees (including council members) of which less than 30 percent are employed by the police department • The City Council members are paid $300 per month and are allowed to receive full health, dental, vision and counseling insurance. In 2008/2009, the City budgeted over $50,000 for Council member insurance. In 2009/2010 the City only budgeted $41,000 since one Council Member declined benefits upon being elected, and then another decided to discontinue receiving benefits. Currently, three Council Members receive medical insurance and, as of September 2009, have a co-pay just like the employees. • The current Acting City Manager has been performing the City Manager duties along with conducting his Chief of Police duties. The former City Manager was absent for the last year and a half because of being called to Iraq and was unable to return to his former position upon his return. The City Council is currently interviewing candidates for a permanent City Manager. Subsequently a new City Manager was hired. • The City Manager and the Finance Director appear to have a significant amount of formal training and experience than is required to perform their 4 Source: U.S. Census Bureau, 2007 Estimate 5 Source: U.S. Census Bureau, 2000 Census 6 Source: City Engineer, City of Lakeport Budget and Finance Committee jobs. Both the City Manager and the Finance Director are backed up by designees who can assume their positions with the same authority. • The current City Manager forecasted the decline in revenues based on business closures and openings and adapted this years budgeting sessions to be able to provide the vital services expected, particularly water and sewer. It is currently within 3% of his predictions at mid year. • The City owns Carnegie Library and the building where City Hall and the Water Department are located. Last year there was concern by the 2008/2009 Grand Jury that the rents were not being handled properly. The Redevelopment Agency and the Water Department did not pay rent for three years due to the turnover of City Managers and the absence of the current Finance Director. The entities concerned were not billed for the rent and consequently did not pay it. That and other confusing errors were not noticed until the 2008/2009 Grand Jury discovered them. The ultimate decision was to forgive the rent for that period. There are currently no rental agreements in place. • The City in past years, put a new tax on the ballot that was specific to fixing roads and was defeated as a specific tax required a 2/3rd majority vote to pass. In 2004 Measure “I” and Measure “J” were put on the ballot as a general fund item that only required a simple 51 % majority to become law. • Employees maintain their own time sheets to reflect their daily total time and do not punch time cards. Department Heads and Supervisors approve the time sheets prior to submission to the payroll department. The Police Department is on a positive time keeping system of an 8 hr or 10 hr shift with overtime compensated with cash or time off at 1 1/2 times. Overtime is approved in advance. • The following are authorized to sign checks: Mayor, Mayor Pro Tem, City Clerk and Deputy City Clerk. The Council Members rotate Mayor and Mayor Pro Tem each year in December. Only the Mayor and Mayor Pro Tem are authorized signers at any time. Every December a new signature card is filed at the Bank. Invoices are approved by Department Heads and entered into software that prints the checks. The check stub contains the check number, amount and a brief description of the expenditure. Receipts are attached and filed. The checks are not sent until the information attached to the stubs is approved by the City Council. As a control over misappropriation of funds, the City required that every check be signed by two authorized individuals: This is normally the City Clerk (or the clerk’s deputy) and the Mayor. Instead Budget and Finance Committee of signing checks, the Mayor’s signature is on a rubber stamp that is maintained and applied by the Accountant 1 (the Assistant to the Finance Director). • Concerning credit card bills, packets of invoices are reviewed and approved by Department Heads prior to payment. Credit cards are held by Department Heads, City Manager, City Attorney, Council Members and the Finance Director. The City Council has final approval of payment on all expenditures. Monthly bills are provided to the card holder, who reviews the bill, signs the bill, attaches support documentation to the packet, and returns it to Finance for payment. The Budget and Finance Committee reviewed several packets and found that all was in order. • The City maintains one petty cash and two change funds. The Petty Cash Fund is attended to by the Finance Director and the Clerk’s Deputy. The value of the fund is $300. There are no written procedures for usage of the fund but receipts are kept in the box and cash and receipts must always equal $300. The fund is reconciled once a month and unannounced reviews are conducted occasionally. The Change Fund is set at $100 and is kept in two boxes, one at each window. There are no written procedures for the fund but it is balanced and deposited daily. • Payments are received at the City Hall building for Sewer, Trash, Business Licenses, Encroachment Permits and Building Permits. Payment can be made by check or credit card at the windows provided. Deposits are made daily and twice daily at the end of the month. • All grant projects are tracked through the Redevelopment Agency. Findings:

R8: Appoint an independent organization or committee to review and evaluate salaries and benefits paid to Council members. (This recommendation from last year’s Grand Jury report was ignored. It is recommended again. Even though the $ have been reduced due to the desires of specific Council members, a separate evaluation would eliminate any potential for criticism.) (F5) Agency/Department(s) Required to Respond: • City of Lakeport (90 Days) (R1, R2, R3, R4, R5, R6, R7, R8) Budget and Finance Committee

📋June 30, 2010 — Health and Human Services Committee Redbud Health Care District Oversight

6 pages 8 findings 3 recommendations

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Findings & Recommendations 8 findings

F1: In Fiscal Year (FY) 2007-2008 ending June 30, 2008 RHCD received $824,989 from property taxes and $67,296 from investment income for a total of $892,285 in revenues.

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F2: RHCD had a total operating expense of $57,547 in FY 2007-2008.

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F3: The committee reviewed current and prior grants. See appendix.

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F4: In FY 2007-2008 RHCD issued a total of $711,293 in grants to the following organizations: a. Fire Protection Districts (3) b. High Schools (4) c. Redbud Hospital (2) d. Lake County Community Action Agency (3) Health and Human Services Committee e. Lake County Office of Education f. Hospice of Lake County g. Adult Day Care/Respite h. Shoes for Kids i. Lake Family Resource Center j. Community Care Management-Linkages k. Survivorship – Cancer l. Senior Centers (4)

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F5: Any carry-over funds from previous years depends on the number of grants and the amount of each grant. Some grants are dispersed over more than one FY.

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F6: All requests for funding assistance must be health or fitness focused and the grantees must be non-profit.

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F7: RHCD has access to experts for processing grants, for example, County Counsel, the County Health Department and county and city fire departments.

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F8: The Board has determined there is no need to solicit or advertise for grantees since RHCD is well known in the south county. The Board meetings are open to the public; meetings are held monthly on the fourth Thursday at 10:00 AM and notice is placed in the local newspapers the third week of every month.

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Additional Recommendations 3

Not linked to specific findings.

R1: Advertise funds are available for grants.

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R2: Publish requirements for grants.

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R3: Advertise widely for the Board of Directors elections. Agency/Department(s) Required to Respond: • Board of Directors of the Redbud Health Care District (90days) Health and Human Services Committee Planning and Public Works Committee Planning and Public Works Committee Table of Contents • Complaints Airport Safety and Facility 9-13 153 City of Clearlake 10-19 157 Lake County Code Enforcement 9-10 161 • Oversights Lake County Vector Control District 163 Water Resources Division 169 Planning and Public Works Committee

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📋June 30, 2010 — Public Safety Committee Lake County Correctional Facility Oversight

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Health and Human Services Committee Report on Conservatorship and APS

6 pages 5 findings 1 recommendations

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Findings & Recommendations 5 findings

F1: Even though APS is only a referral service it has far reaching effects that insure the vital protection of Lake County’s elderly and disabled population.

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F2: The current economic down turn has not affected the services.

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F3: Cuts in State funding have not affected the service.

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F4: Better reporting from friends, family and neighbors could improve APS ability to provide services more expeditiously.

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Related Recommendations (1)

R1: The Director of Social Services should provide a public interest article about APS to the media (online and printed newspapers, TV 8 and the Social Services website) to inform concerned citizens how they can help APS provide services to clients in a more expeditious manner. (F4) Agency/Department(s) Required to Respond: • Social Services Director via the Board of Supervisors (90 Days) Health and Human Services Committee Health and Human Services Committee Environmental Health Oversight Summary: Lake County Environmental Health, a Division of the Lake County Health Department, has a basic mission to protect the people of Lake County through education and the enforcement of State health laws. Background: The Environmental Health Division is located on Bevins Court in the city of Lakeport. The Director has been with the Division since 1985 including eight years as Director. The Division has 14.5 positions which include a Financial Director. The Division is funded by a combination of funding sources. Currently, Environmental Health does not receive any money from the County General Fund. Approximately 55% of funds are collected from fees charged to regulated businesses and from permit services. Approximately 35% of funds come from public health realignment funds that come to local government from the State Vehicle License Fund. Approximately 10% of funds come from special grant projects such as the Food and Drug Administration (FDA) for food safety and the California Environmental Protection Agency (EPA) for above-ground petroleum storage safety inspections. The fiscal year budget for 2009-2010 is $1,258,193. The Division provides numerous services to the people of Lake County to include the following: • Food sanitation inspection. • Recreational swimming safety inspection. • Land development inspection. • Hazardous material inspection. • Septic tank inspection. • Solid waste management. • Public water system inspection. • Vector control. • Tattoo parlor inspection and licensing. • Control and inspection of emergency response and complaint response. The mandate and authority to implement these programs comes from Chapter 9 of the Lake County Code and from the state Health and Safety Code. Health and Human Services Committee Methodology / Procedure: In November, 2009 after reviewing requested documents, the Health and Human Services Committee of the Grand Jury conducted an oversight visit by interviewing members of the administrative staff at their offices on Bevins Court in Lakeport. The different notes of the committee members were compared for duplication and accuracy and were used to compile this report. Facts: • The Division keeps files of permits, inspections, emergency complaint responses and the resolutions for them. • Permits are required for all food operations. Restaurants, markets, non- profit groups, and organizations are inspected for sanitation wherever food is stored, handled, prepared, and cooked. • Restaurants are inspected three times annually and as needed. • Markets are inspected twice annually and as needed. • Non-profits and organizations open to the public are inspected annually. • Permit costs are discounted for non-profit organizations and temporary events. • Employees that conduct inspections for weekend events receive compensatory time instead of overtime. • A permit and registration fee is required for body piercing and tattoo parlors. • Safety and water chemistry permits are required for public swimming pools and spas. • During summer months, the Division analyzes water quality samples from public beach areas approximately one week before Memorial Day, The Fourth of July and Labor Day. • Permits are required for septic systems, including site evaluation, tank size and construction. • Permits are required for garbage company’s solid waste storage and disposal. • The Lake County Division of Environmental Health includes the Certified Unified Program Agency (CUPA) that deals with hazardous wastes and Health and Human Services Committee responds to hazardous waste emergencies. The agency also assists other Federal, State, County, city, and private agencies. • The Division inspects and issues permits to hazardous waste generators and inspects onsite treatment, onsite handlers, above ground, and underground storage tanks in accordance with the California Health and Safety Code. • Companies determined by the Lake County Health Department to have caused hazardous material spills are required to pay the cost of clean-up. • When Environmental Health performs a “private property clean-up” and the hazard was not caused by the property owner, the cost for clean-up is paid by the county through a special account. • Grant money for hazardous clean-up comes from the State. • No permit is required for a residential water connection to a community water system. • The Division handles public health risk situations, nuisance and health code compliance complaints. • Permit fees range in price from $34 per practitioner for body art establishments to $1,749 for large hazardous materials storage facilities. • The list of fees is extensive. A complete schedule of fees can be obtained from the Environmental Health Division. Findings: F1. The Environmental Health Division effectively enforces California State Health laws to guarantee environmental and health safety for the people of Lake County. F2. Application forms for permits and inspections are well developed, comprehensive and readily available. F3. The Division uses scheduled inspections and various priced permits appropriately. F4. Employees receive compensatory time instead of overtime as a cost saving measure. F5. Division budget documents were reviewed that indicated the Division was well within budget. This was confirmed by County budget reports. Recommendations: None Health and Human Services Committee

F5: Because of confidentiality requirements, persons reporting elder abuse or neglect cannot be informed of the results of the investigation.

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📋June 30, 2010 — Public Safety Committee Lake County Correctional Facility Oversight

311 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

Related Recommendations (2)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee Government Services Committee Clearlake City Council Oversight Summary: The Government Services Committee reviewed the Clearlake City Councils (CLCC) diligence in considering the Lowe’s Development Project. Background: A proposal was submitted to the CLCC for a major shopping center development at the Clearlake airport property by the Redevelopment Agency. Methodology / Procedure: The Committee interviewed the Clearlake City Manager and reviewed initial proposal to similar business. Facts: • The initial Impact Report showed a more intensive study than previous studies done on similar businesses in the County of Lake. • Expansion of the 10” (ten inch) sewer line in the airport area is essential to prevent a Building Moratorium in the City Limits. • More than six (6) hours of comments were received by the Redevelopment Agency. • During Public Comment session it was requested a second environmental impact Report be performed. • Use of Redevelopment Funds for sewers and like kind is common practice in California. • Environmental Factors covered in the initial report are: aesthetics, hazards and hazardous materials, public services, utilities/service systems, hydrology/water quality, noise, mandatory findings of significance, air quality, geology/soils, land use/planning and transportation/traffic.

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings:

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

Related Recommendations (3)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21). Budget and Finance Committee City of Clearlake Oversight Summary: Insufficient attention to financial forecast details has caused the City of Clearlake City Council to make questionable, erroneous decisions based on “seat of the pants” information such as in the Animal Control decision. In addition, no detailed documentation is kept of forecast options in order to compare to the actual performance. The City has improved its tracking and handling of petty cash and credit card receipts since the last oversight. Background: The Lake County Civil Grand Jury conducted an annual oversight of all incorporated cities within the County. Methodology / Procedure: The Budget and Finance Committee interviewed the City of Clearlake City Manager and Finance Director, analyzed financial documents including detailed financial records for fiscal years 2003/2004 through 2008/2009, evaluated audit reports for fiscal years 2006/2007 and 2007/2008 and examined budget documents for fiscal year 2009/2010. The committee also examined petty cash logs, receipts, credit card bills and supporting documents, and observed cash counts of petty cash and a change fund. Facts: The following facts were identified for the City of Clearlake: • It was incorporated in 1980, is governed by five elected council members, covers 10.18 square miles and provides no utility services Budget and Finance Committee • It has a population of 14,8901, of which approximately 30 percent are below the poverty line2 and 68% of Clear Lake residents are classified “Low Income” or lower3. • The City has a median household income of $19,863, compared to the county median of $29,627, and the state median of $47,4932 • It is responsible for maintaining 115 miles of roads, of which 52 miles are dirt. Of the 63 miles of paved road 67 percent (42 miles) are rated “poor” to “very poor”3 • Because of the State of California’s financial problems the state is taking over $1,000,000 dollars from the city in a shift of Education Revenue Augmentation Fund (ERAF ). A statewide law suit is in process to stop this. Prior law suits of this nature have been effective in stopping this shift of funds. • The city budget is currently balanced only because the ERAF shift has not yet happened. If the shift occurs the city will have a budget deficit of $1,000,000 this fiscal year. • The City of Clearlake receives a lump sum payment of property tax income twice a year in April and November. According to the Finance Director the biggest challenge facing the City is executing the approved budget so they have enough cash to meet operational expenditures between these timed payments. • The future for state monies being received by the city is bleak as grants are drying up and the State is hoarding cash. • The City Manager approached the 3 labor associations which represent the City workers and proposed a salary reduction program rather than layoffs to alleviate budget inadequacies. The proposal was rejected. • The attempt to get residents to establish street maintenance districts has been unsuccessful as some residents do not want extra expense for this service. Several specific attempts were made and no districts were established. There are currently only 4 employees budgeted to provide the street maintenance. • The City Manager gave up a portion of his salary to provide an increase he felt was needed for the Public Works Manager. Source: U.S. Census Bureau, 2007 Estimate 2 Source: U.S. Census Bureau, 2000 Census 3 Source: City of Clearlake City Manager Budget and Finance Committee • Elected officials legally continued receiving $1,663/mo for insurance (medical, dental, and vision insurance benefits). That is $19,960 per council member, for a total cost of $99,802 for the fiscal year 2009/2010. • The 2009/2010 Budget approval package that went to the City Council included a stated savings of $100,720 as a result of taking Animal Control in house. • The City budgeted $5,000 in the 2009/2010 fiscal year for the Community Access Television channel - TV8, however, this money has not been made available. The city maintains the TV8 financial balances as a separate Fund, writing checks for them as approved by the TV8 Public Educational and Governmental (PEG) Board. • The city maintains only 2 bank accounts; one for payroll and one for accounts payable. Both accounts are maintained in large regional banks with local branches; both are interest bearing, however, balances are kept as low as possible by transferring funds to and from the Local Agency Investment Fund (LAIF). LAIF is managed by the state and earns a higher interest rate. • As recommended by the 2008/2009 Grand Jury, the City is developing a manual of administrative policies and procedures. The Committee examined the status of the 1 ½ inch manual. It will be presented to the Council for approval later this fiscal year. • The Petty Cash account was in balance and is reconciled at $300.00. • All credit-card purchases were supported with itemized receipts. • The Grand Jury noted that there was outgoing mail in a stack waiting to go out behind the front desk. It was sitting on the edge of a trash can and could have easily been knocked accidentally into the trash can. Thus the Grand Jury questions the mail handling procedure. Findings: F 1. There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee F 2. With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find. F 3. As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it. F 4. No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services. F 5. A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail.

Additional Recommendations 6

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

R5: Make repairs at Lucerne Harbor children’s playground.

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

R8: Make more county parks dog friendly.

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

📋June 30, 2010 — Planning and Public Works Committee Airport Safety and Facility Complaint 9-13

14 pages 13 findings 7 recommendations

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Findings & Recommendations 13 findings

F1: The airport does not generate enough revenues to be self sufficient.

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F2: Lampson Fields operating revenues are very low for an airport of this size and character.

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F3: There is no terminal facility for local or transient visitors on airport or private property.

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Related Recommendations (2)

R3: Have the Department of Public Works generate a map and include all streets the city will maintain. Define the areas within the city limits the city will not maintain. (F3,4) Agency/Department(s) Required to Respond: • City of Clearlake Manager via Clearlake City Council (90 days) Planning and Public Works Committee Planning and Public Works Committee Lake County Code Enforcement Complaint 9-10 Summary: Misconduct Complaint about Code Enforcement proves to be a dead-end. No formal complaint was filed with Code Enforcement and no record of a call was recorded. Background: A complaint filed with the Lake County Civil Grand Jury alleged misconduct by an unknown person at Code Enforcement. The complaint did not specify who, but suggested an unknown person at Code Enforcement told his landlord that Code Enforcement had received a call from the complainant. Methodology / Procedure: In conducting the investigation the committee reviewed all documentation provided by the complainant and interviewed the complainant under oath. The committee also interviewed the Code Enforcement Spokesperson and reviewed all documentation from Code Enforcement concerning the documentation of complaints and the privacy policy. Facts: • Complainant never filed a formal complaint with Code Enforcement. • Only calls making a formal complaint are logged and an officer assigned. • Formal complaints are kept on file for three years. • Anonymous complaint calls and calls requesting information are not recorded. • Information calls are directed to the proper department for clarification. • A spokesperson for Code Enforcement stated their policy on complainant privacy requires staff and officers not to reveal who filed the complaint. • Code Enforcement is responsible for responding to complaints of building and safety code violations from citizens that fill out a formal complaint. Planning and Public Works Committee • Complainant told Landlord that he called Code Enforcement. Findings: F1. There is no record of a phone conversation at Code Enforcement from the complainant. F2. Code Enforcement has no formal complaint on file from complainant. F3. The complainant did not provide evidence to substantiate further investigation into the allegations of misconduct. Recommendations:

R4: Add to the Monthly Report to the Board of Directors a page showing YTD costs compared to YTD budget and a variance % for each account. Highlight any significant overages or underages and be prepared to explain. If not already established spread the annual budget by month for each account to allow the YTD comparison. (F3,F4)

F4: The surrounding buildings that are within the fenced area of the airport are well utilized by fixed based operations (local businesses).

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Related Recommendations (1)

R4: Add to the Monthly Report to the Board of Directors a page showing YTD costs compared to YTD budget and a variance % for each account. Highlight any significant overages or underages and be prepared to explain. If not already established spread the annual budget by month for each account to allow the YTD comparison. (F3,F4)

F5: The flight school at Lampson Field would see some benefit from the runway expansion to a B2 runway.

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F6: Economic development on airport property under county control will help the airport become self funded.

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F7: The development of a class B2 runway either east-west or north-south through the purchase of surrounding properties needs to be addressed. Planning and Public Works Committee

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F8: Pilots should have a major say in the development of the plan for runway expansion.

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F9: The current location of Lampson Field is economically sound and ideal for expansion.

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F10: Two other possible sites for airport expansion mentioned in the 1993 Master Plan are not economically viable in today’s economy.

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F11: While development of a primary site, more central to all of Lake County, might increase overall airport use, the current location serves the public well and the land surrounding it is compatible for expansion.

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F12: The county and the complainant both want a better airport with better facilities at the current location. Project priorities, location of facilities and funding sources differ in opinion.

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Related Recommendations (2)

R1: Determine the best solution for the B2 runway and include findings before adopting the new airport master plan. (F12, F13)

R2: Consider updating the AWOS as the first priority. (F12, F13) Agency/Department(s) Required to Respond: • Planning and Public Works Department via Board of Supervisors (90 days) Planning and Public Works Committee City of Clearlake Complaint 10-19 Summary: The City of Clearlake is slow in cleaning up garbage and illegal refuse. Lack of mandatory garbage pick up adds to the blight in the city. Some dirt streets within the city limits that are not maintained by the city are a real health and safety issue. Background: A complaint filed against the City of Clearlake alleged the city was not enforcing civil health and safety codes. Seven specific allegations were listed. The information listed provided the basis for the investigation. Methodology / Procedure: The complainant was interviewed to insure the accuracy of the complaint. An interview was performed with a spokesperson for the City of Clearlake. A review of the civil codes listed were reviewed and addressed. Facts: • The City of Clearlake does not have mandatory garbage collection. The state has a mandate for mandatory pick up but the city has yet to meet this mandate. • The city feels that enforcing mandatory garbage pickup would add undue financial burden to residents that are already living below the poverty line and would create more problems than it would solve. • The City of Clearlake does not have any code enforcement officers. Code Enforcement is handled by the police department. • The City of Clearlake has one officer per one thousand residents. The state average is one officer per five hundred residents. • The city is attempting to enforce property maintenance standards. Residents still have due process rights which must be maintained. Planning and Public Works Committee • The number of public nuisance cases (code violations) has increased to over 1200 in 2009 up from 652 in 2006. This doubling of effort has been done while the number of enforcement officers has declined. • The city is inspecting rental units for code violations. Residents still have due process rights which must be observed. • The city is enforcing unsafe building violations. “Red Tags”. Residents still have due process rights which must be observed. • The number of buildings “Red tagged” has increased from 5 in 2006 to 50 in 2009. This increase was also realized while the number of enforcement officers has declined. • City streets are being maintained to the best of the city’s ability. Dirt streets that do not have historical maintenance by the city are not the responsibility of the city. • Dirt streets that are not maintained cause dust and erosion problems. • The city does not have any power to tell private street owners they must maintain their streets. • The City of Clearlake has over 110 miles of city maintained streets. • The city only has 4 employees to maintain 49 miles of dirt streets and 63 miles of paved streets. • The city does not generate enough revenue to sustain street repairs much less improve streets. • There is no map of streets historically maintained by the City of Clearlake. • There is no map of private streets within the City of Clearlake. • With limited resources the City of Clearlake is enforcing health and safety codes and maintaining streets. • The city is financially close to bankruptcy. Findings: F1. Without mandatory garbage pick up a lot of residents do not get rid of garbage and refuse. F2. The city limits are far too large of an area with too many miles of streets for the city to maintain. Planning and Public Works Committee F3. The streets the city became responsible for maintaining were never written down when the city charter was adopted. No map was ever developed to define which dirt streets the city would be responsible for maintaining. F4. With no maps of historically maintained streets street maintenance is not clearly defined. Recommendations:

F13: The difference between the expansion of the existing east-west runway to a Class B2 and the creation of a north-south Class B2 runway should be reviewed by professionals in airport construction. A recommendation for the best choice should be made.

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Related Recommendations (2)

R1: Determine the best solution for the B2 runway and include findings before adopting the new airport master plan. (F12, F13)

R2: Consider updating the AWOS as the first priority. (F12, F13) Agency/Department(s) Required to Respond: • Planning and Public Works Department via Board of Supervisors (90 days) Planning and Public Works Committee City of Clearlake Complaint 10-19 Summary: The City of Clearlake is slow in cleaning up garbage and illegal refuse. Lack of mandatory garbage pick up adds to the blight in the city. Some dirt streets within the city limits that are not maintained by the city are a real health and safety issue. Background: A complaint filed against the City of Clearlake alleged the city was not enforcing civil health and safety codes. Seven specific allegations were listed. The information listed provided the basis for the investigation. Methodology / Procedure: The complainant was interviewed to insure the accuracy of the complaint. An interview was performed with a spokesperson for the City of Clearlake. A review of the civil codes listed were reviewed and addressed. Facts: • The City of Clearlake does not have mandatory garbage collection. The state has a mandate for mandatory pick up but the city has yet to meet this mandate. • The city feels that enforcing mandatory garbage pickup would add undue financial burden to residents that are already living below the poverty line and would create more problems than it would solve. • The City of Clearlake does not have any code enforcement officers. Code Enforcement is handled by the police department. • The City of Clearlake has one officer per one thousand residents. The state average is one officer per five hundred residents. • The city is attempting to enforce property maintenance standards. Residents still have due process rights which must be maintained. Planning and Public Works Committee • The number of public nuisance cases (code violations) has increased to over 1200 in 2009 up from 652 in 2006. This doubling of effort has been done while the number of enforcement officers has declined. • The city is inspecting rental units for code violations. Residents still have due process rights which must be observed. • The city is enforcing unsafe building violations. “Red Tags”. Residents still have due process rights which must be observed. • The number of buildings “Red tagged” has increased from 5 in 2006 to 50 in 2009. This increase was also realized while the number of enforcement officers has declined. • City streets are being maintained to the best of the city’s ability. Dirt streets that do not have historical maintenance by the city are not the responsibility of the city. • Dirt streets that are not maintained cause dust and erosion problems. • The city does not have any power to tell private street owners they must maintain their streets. • The City of Clearlake has over 110 miles of city maintained streets. • The city only has 4 employees to maintain 49 miles of dirt streets and 63 miles of paved streets. • The city does not generate enough revenue to sustain street repairs much less improve streets. • There is no map of streets historically maintained by the City of Clearlake. • There is no map of private streets within the City of Clearlake. • With limited resources the City of Clearlake is enforcing health and safety codes and maintaining streets. • The city is financially close to bankruptcy. Findings: F1. Without mandatory garbage pick up a lot of residents do not get rid of garbage and refuse. F2. The city limits are far too large of an area with too many miles of streets for the city to maintain. Planning and Public Works Committee F3. The streets the city became responsible for maintaining were never written down when the city charter was adopted. No map was ever developed to define which dirt streets the city would be responsible for maintaining. F4. With no maps of historically maintained streets street maintenance is not clearly defined. Recommendations:

Additional Recommendations 3

Not linked to specific findings.

R5: Contract with a Certified Public Accountant and do an audit so that the LCVCD Board of Directors gets an audit report that does determine and express an opinion on the District’s compliance with laws, regulations,

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R6: Reviewed LCVCD financial statements.

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R7: Examined petty cash receipts and observed a cash count of petty cash. Note: The bookkeeping and petty cash review was done with help from the Grand Jury Budget and Finance Committee. Facts: • The primary reason for the assessment ballot was that LCVCD annual revenues were declining. The LCVCD Board of Directors and the District Manager agreed it was necessary in order to maintain current programs, improve public safety, and move forward on capital improvements. • The Assessment Ballot was done with the cooperation of the office of the Registrar of Voters. • State revenue is being diverted away from Special Districts to other funds and agencies. The ERAF (Education Revenue Augmentation Fund) and Redevelopment Agencies (Lake County, Lakeport, and Highlands) are four such diversions. • Property tax money is received in December and April. Those revenues have declined with declining property values. • Some money is received from Federal and State grants. • The format of the financial report given to the Board of Directors (BOD) monthly is not conducive to proper fiscal management. The report does not include important fiscal information. • The report does show expenses to date and unextended. Salaries and benefits are 17% over budget YTD as of 8/31/2009. Services and Supplies are 9% over budget YTD as of 8/31/2009. • Petty cash on hand was at the authorized amount of $250.00. • Petty cash is reconciled on a monthly basis • Petty cash is under lock and key with proper security. • The current auditor used by the District: Planning and Public Works Committee a. Does not determine nor express an opinion on the districts compliance with laws, regulations, contracts and grants. b. Does not provide assurance on the internal control over financial reporting. c. Misstated the justification of a vehicle purchase for travel to attend conferences, while the correct primary justification is to have a vehicle that is clean of pesticides to take materials to public education sessions. • The LCVCD Policy and Procedures manuals are not up to date. • The District Manager is developing and updating the manual of administrative policies and procedures and will be submitting it to the Board of Directors for approval in 2010. • The laboratory building is at the end of its usable life cycle. • The laboratory building is not Americans for Disabilities Act compliant. • The Board of Directors and the District Manager have a good working relationship. At the Board of Directors meeting our committee attended, the District Manager read a report that was a review of the past months field reports and gave and update on the budget. • The District Manager has had little formal Bookkeeping training. • There is no written Strategic Plan.

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📋January 25, 2010 — Public Safety Committee Clearlake Police Department Holding Facility Unannounced visit

10 pages 6 findings 1 recommendations

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Findings & Recommendations 6 findings

F1: The CPD holding facility supports modern technology. a. It is sight and sound monitored and recorded. b. Doors and sally port entrances and exits are all electronically controlled. c. Electronic locks are manually operable, if necessary.

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F2: The CPD can maintain its own electricity in emergencies. 2009-2010 Lake County Civil Grand Jury Public Safety Committee

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F3: Walls and floors are in well maintained, clean condition.

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F4: The holding facility is compliant with all required State and County regulations.

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F5: The inmate questionnaire form is a well-developed and usable assessment tool; it addresses both medical and psychological issues for determining immediate health status at arrest.

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F6: The CPD website is essentially undeveloped belying the energy and care demonstrated to the Grand Jury during its oversight.

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Additional Recommendations 1

Not linked to specific findings.

R1: The Grand Jury recommends the Clearlake Police Department design an informational web page to acknowledge individual officers’ achievements, advertise the mission statement, promote community relations, etc.( F1, F2, F3,F4, F5, F6) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury Public Safety Committee Konocti Conservation Camp # 27 Oversight Summary: California’s overall recidivism rate for general population prisoners is approximately 80%. Konocti Conservation Camp (KCC), with its select, non-violent volunteer inmates, has a rate significantly lower by half for those who successfully complete its program. The State spends $42,000 to $47,000 annually maintaining each inmate incarcerated in prison. The cost for supporting an inmate at KCC is less than half that. KCC’s response to fire emergencies saved the State an estimated $2.5 million in 2009. This demonstrates a successful working relationship between the Department of Corrections and Rehabilitation and the Department of Forestry and Fire Protection. Background: KCC# 27, established in 1961, is a level I minimum security camp in an isolated area of Lower Lake. The California Department of Corrections and Rehabilitation (CDCR) and the California Department of Forestry and Fire protection (CAL FIRE) operate the camp jointly. Their primary function is to prepare inmates for return to society while providing inmate fire crews throughout California. CDCR retains responsibility for the selection, supervision, care and discipline of the inmates. CAL FIRE maintains the camp and supervises fire suppression training plus conservation projects. CDCR officers accompany the fire and work crews during daily work to provide safety and security in camp and when assigned to off-campus projects. This is a low risk unlocked facility. Methodology / Procedure: The 2009-2010 Lake County Civil Grand Jury inspected KCC as mandated by Penal code 919(b). Although KCC is State-run it is an inmate-holding facility within Lake County and, therefore, within the Grand Jury’s purview. 2009-2010 Lake County Civil Grand Jury Public Safety Committee The Public Safety Committee spent three hours touring administration offices, dormitories, kitchen, showers and bathrooms, as well as work, entertainment, exercise and hobby areas. It inspected the new water treatment plant, storage sheds, and machine and heavy equipment bays. Interviews with staff and many casual encounters with inmates provided a more personal view of KCC operations. The Committee was provided hand-outs, inmate-prepared displays, samples of facility food and insights into daily life. Facts: • Inmates selected for KCC must have less than five years remaining on their sentence, have low violence potential and must be motivated. Inmates must demonstrate willingness to conform to camp expectations of behavior and work ethic. • Inmates with useful skills, viz. welding, carpentry, plumbing, mechanics, electrical and clerical expertise are given priority. • Inmates do most building, grounds, plumbing and electrical maintenance themselves. • On average only the last nine months of an inmate’s sentence are spent at the camp. • Gang or race-related misbehavior is not tolerated. Staff indicated this is not an issue in KCC’s small motivated inmate population. • KCC’s average cost of meals per inmate is $2.80 a day. Most camps keep their food costs from $1.80 to$ 2.60. KCC’s cost is higher due to its rural location. The kitchen crew verbalized pride in its culinary expertise. • Inmate and staff work to keep the facility as close to self-sufficient as possible. • A garden supplements inmate meals with fresh vegetables. Extra produce is sent to other camps weekly in season. • The up-graded water treatment plant provides on-site training for inmates and recycled water for gardening and landscaping. • KCC has a functioning generator and a working well. • Camp #27 offers no on-sight medical care except first aid. Sick call is daily at 8:15 am. Emergencies are transported to the Sutter Lakeside Hospital; non- emergent medical needs are sent to the prison medical facility at Susanville. The biggest medical problem usually encountered is poison oak reaction. • The camp inmate capacity is 118 men. KCC presently holds 110 minimum security male felons, comprising five 16-man fire crews with the remainder as support workers. 2009-2010 Lake County Civil Grand Jury Public Safety Committee • Staff to inmate ratio is 1:16. • Facility remains unlocked 24 hours per day. There are 6-7 routine and random roll calls every 8 hour shift and bed checks during night hours. At night the one officer on duty contacts the Lake County sheriff’s office every hour, also confirming the inmate count with Susanville. • There has been only one attempted escape in the last decade. • KCC fire crews usually answer emergency calls in Lake, Sonoma, Napa, and Mendocino Counties but can be shipped anywhere needed. • In 2009 KCC had 87 incident responses and 51 work (non–fire) requests; it responded to needs ranging from Santa Barbara, Colusa County, Lake Mendocino, and the Elem Indian Colony to Highland Springs. • There is an experienced Mobile Fire Kitchen (MFK) crew which has provided high protein, high carbohydrate meals to as many as 3000 firefighters daily during major emergencies with minimal rest. • KCC budget is scheduled around the daily census; at the time of this inspection there were no budget cut-backs from the State for the camp. • Oversight inspections are routine, mandated from a multitude of oversight agencies: the Chief Deputy Warden’s Office, management audit teams, Cal Fire, Public Health agencies, food services, Environmental Health, etc; Local, state and county investigators are seen annually, randomly, announced and unannounced. Additional research indicated KCC is compliant and within budget. • Conservation camps are limited in offering services to the community. Inmate labor must be on federal, state, county, municipal, or district projects which do not remove jobs from the private sector (CPC 2701). • The CAL FIRE-trained Mobile Equipment Unit (MEU) crew responds to fire lines for emergency maintenance and repair of the fire-suppression equipment. • KCC routinely maintains and repairs vehicles and equipment in camp for CAL FIRE and county fire districts. • CDCR at KCC has eight correctional officers, one correctional sergeant and the Camp Commander, a lieutenant. It is in the process of recruiting additional officers. • CAL FIRE staff has ten fire crew captains, one heavy equipment mechanic, one office tech and one water treatment specialist officer plus the Division Chief. • KCC maintains an ‘Open Door Policy ‘to both staff and inmates for resolution of internal issues. Examples were given of its effectiveness. 2009-2010 Lake County Civil Grand Jury Public Safety Committee • During 2009 calendar year KCC provided 27,368 hours of conservation work to local communities, 30,000 hours in emergency responses and 11,936 to federal agencies. • During 2009, estimated cost avoidance efforts of inmate fire crews saved California taxpayers $2,484,093. • Inmates are paid $1.45 to $3.90 per hour depending on their skills. When assigned to the fire line they earn an additional $1.00 per hour. • Water treatment certification preparation, GED programs, mechanical and vehicle maintenance training are promoted in KCC. Education is encouraged – and facilitated – at this facility. • Inmates may earn family visits every 30 days. A small house on camp property allows inmates to spend up to three days with their families. There are also general visiting hours during week nights. • Most inmates qualify for sentence reduction: one day of sentence is deducted for each day worked. • The three dormitories allow a small amount of personal space and individual lockers for inmate belongings; floors, walls, furniture were clean and well- maintained. • Workshops and storage sheds are well-organized with appropriate and legible signage. Work bays and the kitchen were without clutter and had adequate work space. • A new $15,000 grant will permit replacement of the mildew-prone showers with new tile in 2010; labor will be provided by the inmates themselves. • KCC has exercise equipment (no weight-lifting), picnic tables in a shaded area, sports equipment, a small donated library and a woodworking/ laminating shop for inmate leisure use. • There are two separate TV rooms; staff informed the Committee that this reduces tensions by supplying more inmate control over program selection. • Community volunteers provide religious and tutoring services. • Fire crews, MFK and the MEU from Konocti Conservation Camp are available for emergency dispatch anywhere in California, as well as other states. Findings: F1. This is an excellent program CDCR and CAL FIRE have created; useful and cost effective, safe for the community and positively affecting social change. Mutual goals and coordination between two State departments have produced a successful joint agency program. 2009-2010 Lake County Civil Grand Jury Public Safety Committee F2. Fire Captains, CDCR officers and inmate crews have developed a relationship of trust necessary to work together effectively in emergencies. Inmate and staff members choose to work at KCC. This mutual determination fosters trust and provides a foundation for success. Recommendations: None Agency/Department(s) Required to Respond: None 2009-2010 Lake County Civil Grand Jury Public Safety Committee 2009-2010 Lake County Civil Grand Jury

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📋December 31, 2009 — Lake County PEG Tv8 Advisory Committee and Budget

6 pages 6 findings

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Findings & Recommendations 6 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

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F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

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F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

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F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

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F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

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F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws.

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📋March 18, 2009 — Lake County Public Safety Committee Complaint 9-15

6 pages 6 findings 4 recommendations

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Findings & Recommendations 6 findings

F1: The District Attorney’s letter was correct as it referred to the appropriate case, naming one of the two alleged assailants and the date the complaint was filed, per department protocol.

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Related Recommendations (1)

R1: LCFPD suggest Westwind Mobile Home Resort have its water district evaluate need for fire hydrants and place them accordingly. (F1)

F2: There is a documented statement taken from the complainant‘s husband on record.

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Related Recommendations (1)

R2: LCFPD request an inspection of Westwind Mobile Home Resort by the appropriate State agency to determine its compliance with safety codes.(F2, F3)

F3: There is no documentation, report, or witness statement to support the complainant’s allegations of assault except her husband‘s.

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Related Recommendations (1)

R2: LCFPD request an inspection of Westwind Mobile Home Resort by the appropriate State agency to determine its compliance with safety codes.(F2, F3)

F4: The complainant was not aware of the law requiring a citizen’s arrest if an alleged misdemeanor is not witnessed by a police officer (PC 837).

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Related Recommendations (1)

R3: LCFPD initiate plans to adjust and redraw its district boundaries with KFPD as soon as possible to increase timely and effective response to emergencies. (F4)

F5: The District Attorney cannot pursue a case for which there is insufficient evidence and little chance of a conviction.

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Related Recommendations (1)

R4: LCFPD and KFPD immediately implement plans to designate that mobile home park fires be automatically dispatched as mutual aid. (F5) Agency/Department(s) Required to Respond: • Board of Directors, Lake County Fire Protection District (R1, R2, R3, R4, R5) within 90 days • Board of Directors, Kelseyville Fire Protection District (R3, R4, R5) within 90 days 2009-2010 Lake County Civil Grand Jury Public Safety Committee 2009-2010 Lake County Civil Grand Jury

F6: The Lake County Sheriff‘s office exercised ‘due diligence’ in its investigation of this issue, conducting a thorough investigation.

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📋Adult Protective Services Oversight

4 pages 5 findings 1 recommendations

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Findings & Recommendations 5 findings

F1: Even though APS is only a referral service it has far reaching effects that insure the vital protection of Lake County’s elderly and disabled population.

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F2: The current economic down turn has not affected the services.

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F3: Cuts in State funding have not affected the service.

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F4: Better reporting from friends, family and neighbors could improve APS ability to provide services more expeditiously.

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Related Recommendations (1)

R1: The Director of Social Services should provide a public interest article about APS to the media (online and printed newspapers, TV 8 and the Social Services website) to inform concerned citizens how they can help APS provide services to clients in a more expeditious manner. (F4) Agency/Department(s) Required to Respond: • Social Services Director via the Board of Supervisors (90 Days) Health and Human Services Committee

F5: Because of confidentiality requirements, persons reporting elder abuse or neglect cannot be informed of the results of the investigation.

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📋Airport Safety and Facility

4 pages 13 findings 2 recommendations

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Findings & Recommendations 13 findings

F1: The airport does not generate enough revenues to be self sufficient.

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F2: Lampson Fields operating revenues are very low for an airport of this size and character.

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F3: There is no terminal facility for local or transient visitors on airport or private property.

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F4: The surrounding buildings that are within the fenced area of the airport are well utilized by fixed based operations (local businesses).

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F5: The flight school at Lampson Field would see some benefit from the runway expansion to a B2 runway.

Page 171

F6: Economic development on airport property under county control will help the airport become self funded.

Page 171

F7: The development of a class B2 runway either east-west or north-south through the purchase of surrounding properties needs to be addressed. Planning and Public Works Committee

Page 171

F8: Pilots should have a major say in the development of the plan for runway expansion.

Page 172

F9: The current location of Lampson Field is economically sound and ideal for expansion.

Page 172

F10: Two other possible sites for airport expansion mentioned in the 1993 Master Plan are not economically viable in today’s economy.

Page 172

F11: While development of a primary site, more central to all of Lake County, might increase overall airport use, the current location serves the public well and the land surrounding it is compatible for expansion.

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F12: The county and the complainant both want a better airport with better facilities at the current location. Project priorities, location of facilities and funding sources differ in opinion.

Page 172

Related Recommendations (2)

R1: Determine the best solution for the B2 runway and include findings before adopting the new airport master plan. (F12, F13)

R2: Consider updating the AWOS as the first priority. (F12, F13) Agency/Department(s) Required to Respond: • Planning and Public Works Department via Board of Supervisors (90 days)

F13: The difference between the expansion of the existing east-west runway to a Class B2 and the creation of a north-south Class B2 runway should be reviewed by professionals in airport construction. A recommendation for the best choice should be made.

Page 172

Related Recommendations (2)

R1: Determine the best solution for the B2 runway and include findings before adopting the new airport master plan. (F12, F13)

R2: Consider updating the AWOS as the first priority. (F12, F13) Agency/Department(s) Required to Respond: • Planning and Public Works Department via Board of Supervisors (90 days)

📋Alleged Breach of Confidentiality

2 pages 1 findings

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Findings & Recommendations 1 findings

F1: The witness had no direct knowledge of the source(s) used by members of the local media.

Page 199

📋Board of Supervisors Oversight

4 pages 7 findings 2 recommendations

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Findings & Recommendations 7 findings

F1: The public is served by the televising of the meetings of the Board.

Page 87

F2: Ample time is given for public comments on items on the agenda.

Page 87

F3: Public input is included on each agenda.

Page 87

F4: The proceedings comply with the Brown Act.

Page 87

F5: The sound system and microphones do not allow the public to hear the proceedings.

Page 87

Related Recommendations (1)

R1: Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6)

F6: The sound system on the videos is also often inadequate and unprofessional.

Page 87

F7: Any item which is proposed as an increase in spending in a time of financial distress should be discussed openly and rationalization or statistical evaluation of the action should be stated. Recommendations: R1. Test the sound equipment and the microphones prior to the meetings to ensure adequate volume and sound levels so everything can be heard. (F5, 6) R2. Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee

Page 87

Related Recommendations (1)

R2: Postpone a decision on spending until a time that would allow reasons for contract increase to be clear. (F7) Agency/Department(s) Required to Respond: • Board of Supervisors (90 days) Government Services Committee

📋City of Clearlake Financial Oversight

6 pages 5 findings 7 recommendations

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Findings & Recommendations 5 findings

F1: There has not been enough money in the budget for several years to fix the roads properly and this year is no exception. The lack of staff and budget will result in the percentage of roads rated “poor” and “very poor” not improving in the foreseeable future. Budget and Finance Committee

Page 61

Related Recommendations (2)

R1: The Redevelopment Agency establish priorities to fix and upgrade the current roads before attracting new businesses and offsetting the possible million dollars held back by the State. (F1)

R2: Budget money to improve grant writing and managing the Pubic Works department to attract funds and personnel for maintaining the streets. (F1) Budget and Finance Committee

F2: With the State’s financial crisis impacting the city, no change in sight in the near future and with the possibility of another $1,000,000 reduction, the City must implement as many cost saving measures as they can find.

Page 62

Related Recommendations (1)

R3: In order to do their part to meet the financial constraints placed on the city and to demonstrate their leadership to the employees who are continuing to take the brunt of the cost reductions and workload increases, the elected officials take an equivalent reduced benefit or pay. Even though they are allowed the benefits by state code, we recommend the elected officials show solidarity with the employees and voluntarily take a significant amount of reduction. (F2, F3)

F3: As a result of the current financial problems, the city now has 42 full time equivalent city employees, down from 55 employees last year. As the City struggles financially and reduces the number of employees and impacts their pocketbooks, elected officials continued receiving $19,960 per council member to provide personal health insurance (medical, dental, and vision benefits) in spite of the 2008/2009 Grand Juries recommendation to reduce it.

Page 62

Related Recommendations (1)

R3: In order to do their part to meet the financial constraints placed on the city and to demonstrate their leadership to the employees who are continuing to take the brunt of the cost reductions and workload increases, the elected officials take an equivalent reduced benefit or pay. Even though they are allowed the benefits by state code, we recommend the elected officials show solidarity with the employees and voluntarily take a significant amount of reduction. (F2, F3)

F4: No one was able to document or provide to the Committee the supporting data showing the Animal Control’s projected savings of $100,720. Continued follow-up inquiries by the Grand Jury to determine the details of the savings projected were unsuccessful. The projected savings was basically a “seat of the pants guess” provided by the City Manager with no effort made to retain any detailed backup as to how the savings were calculated. Thus it is not possible to grade the accuracy of this projected savings. A current estimate provided by the City Manager was that it will save $25,000 per year. At this time, there is not a separate Fund / Department in the budget to track the costs so the public will never know what the costs really are. Given the potential extra costs for facilities and labor to run the animal control operation, and the impact on the Police Department, there will likely be extra costs rather than savings while at the same time providing reduced and poorer service. In the mean time, the City utilizes County Animal Control services.

Page 62

Related Recommendations (3)

R4: The Finance Director establish a separate Fund / Department for Animal Control to include ALL related costs. (F4)

R5: The City Council establish a policy that when decisions are made affecting the City budget, the City Council be provided backup financial detail prepared by the Finance Director and that the detail be available and kept with the budget for future measurement purposes. (F4)

R6: The City Council renegotiate with the County to have them continue to provide the Animal Control services. This is based on the City Manager now forecasting only a $25k annual savings and the fact that no detail has been provided for any of the savings and it is likely to actually cost more with the current approach. In addition, a cost benefit analysis which includes documented estimates of all costs as compared to savings covering the next 5 years be prepared and provided to the City Council. (F4)

F5: A Policy and Procedure Manual needs to be finished and approved so that the policies can be enforced. This Manual should include a procedure on the handling of mail. Recommendations:

Page 62

Related Recommendations (1)

R7: The City Manager complete the preparation and compilation of City policies and procedures and present to the Council for approval. (F5) Agency/Department(s) Required to Respond: • City of Clearlake (90 Days) (R1, R2, R3, R4, R5, R6, R7) Budget and Finance Committee

📋City of Clearlake Planning Complaint

4 pages 4 findings 3 recommendations

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Findings & Recommendations 4 findings

F1: Without mandatory garbage pick up a lot of residents do not get rid of garbage and refuse.

Page 174

Related Recommendations (1)

R1: Garbage collection mandates should be met regardless of financial burden to residence. (F1)

F2: The city limits are far too large of an area with too many miles of streets for the city to maintain. Planning and Public Works Committee

Page 174

Related Recommendations (1)

R2: The city should consider shrinking the city limits through legal means. (F2)

F3: The streets the city became responsible for maintaining were never written down when the city charter was adopted. No map was ever developed to define which dirt streets the city would be responsible for maintaining.

Page 175

Related Recommendations (1)

R3: Have the Department of Public Works generate a map and include all streets the city will maintain. Define the areas within the city limits the city will not maintain. (F3,4) Agency/Department(s) Required to Respond: • City of Clearlake Manager via Clearlake City Council (90 days) Planning and Public Works Committee

F4: With no maps of historically maintained streets street maintenance is not clearly defined.

Page 175

📋City of Lakeport Financial Oversight

8 pages 5 findings 8 recommendations

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Findings & Recommendations 5 findings

F1: Currently there are no rental agreements between the City and the non- General Fund Agencies but it was stated that the verbal agreements were understood by the Department Heads. The rent revenue is used to replenish the General Fund. There are no standards that establish charging rent to non-General Fund Agencies. The rent being charged supposedly includes some percent of the cost of the Council and some maintenance charges, but there is no formula or record of how the number was determined. 2009/2010 adopted budget included rental income totaling $158,258.

Page 68

Related Recommendations (1)

R1: Negotiate formal written agreements for all Non-General Fund entities utilizing city owned facilities. These agreements will delineate the formula for calculating the “rent” including fair market value for the space, any recovery of City Council costs and any money set aside for maintenance, all indexed by the Consumer Price Index (CPI). Fair market value is obtained from an outside real estate knowledgeable advisor. (F1)

F2: While there is still considerable disagreement about what the voters meant when they passed Measure “I” and Measure “J” in 2004, the voter Budget and Finance Committee materials are quite clear. Some people are saying that it should be used exclusively for streets and roads, however: ▪ Measure “I” directed the City to, “…enact a one-half cent sales tax for City facilities, services, and programs? Yes___ No___” The argument in favor of the Tax indicated that the type of expenditures that the tax was to be used for included: • “Deferred maintenance of streets • Re-plastering the Westshore pool – Cost $150,000 • Repairing the Library Park headwall • Improving substandard storm drain facilities • Additional recreational amenities at Westside Park • Making Carnegie Library a functional facility.” ▪ Measure “J” stated, “If Measure 'I' is approved, should the proceeds fund repair and maintenance of City streets, park and community service facilities, and expand public services and programs? Yes___ No___” ▪ In 2004, Lakeport voters approved Measure “I” with a 61% vote and Measure “J” with an 82% vote. Therefore the Grand Jury concludes that the Measure I money is a general tax. It is obvious that the taxpayers were and still are confused and may have thought it was just for roads and streets. It was clearly not limited to that use. Thus using it as a general source of revenue is correct.

Page 68

Related Recommendations (2)

R2: The City Council needs to remember that 82% of the voters said via measure “J” that roads and streets are a priority. They should be constantly aware of the citizen’s desire and do all they can to improve the roads and streets. (F2)

R3: The City Council set specific annual goals to decrease the percent of roads rated poor to very poor over the next five years, and then budget and manage to that goal. (F2)

F3: Regarding the signing of checks, the 2008/2009 Grand Jury found that the City Clerk was signing as one of the required signatures and then the City Clerk was affixing the Mayor’s signature with a rubber stamp thus circumventing the 2 signature policy. This year it was found that the City Clerk still signed as one signature, but the Assistant to the Finance Director applied the Mayor’s stamp. The Grand Jury believes that applying a signature to a check is a significant responsibility and should not be delegated in this manner by the Mayor. Budget and Finance Committee

Page 69

F4: The committee observed a reconciliation of the petty cash fund and it was correct at $300.

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Related Recommendations (1)

R5: Require City management (including Council members) to accomplish at least one unannounced review and reconciliation per month of any and all petty cash and change funds. (F4)

F5: When asked whether the City had any specific financial benchmarks or goals, the answer was “none” other than meeting the budget. The Finance Director stated that her most specific concern was how to generate more revenue. Most organizations monitor and measure different ratios such as % of Accounts Receivable (taxes) that are delinquent, % of budget spent on labor, etc. The financial health of the City is a significant issue. Recommendations:

Page 70

Related Recommendations (3)

R6: Negotiate a Line of Credit position with an appropriate financial institution while rates are low as a back up in case it is needed to fund the city. (F5)

R7: Establish a set of financial benchmarks and goals and then monitor progress toward them. (F5) Budget and Finance Committee

R8: Appoint an independent organization or committee to review and evaluate salaries and benefits paid to Council members. (This recommendation from last year’s Grand Jury report was ignored. It is recommended again. Even though the $ have been reduced due to the desires of specific Council members, a separate evaluation would eliminate any potential for criticism.) (F5) Agency/Department(s) Required to Respond: • City of Lakeport (90 Days) (R1, R2, R3, R4, R5, R6, R7, R8) Budget and Finance Committee

Additional Recommendations 1

Not linked to specific findings.

R4: The Mayor maintain control of the rubber stamp of his signature and apply it personally.

Page 70

📋Clearlake City Council Oversight

2 pages 3 findings

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Findings & Recommendations 3 findings

F1: Due diligence was performed for this project based on hearings and intensive initial impact study. Government Services Committee

Page 89

F2: More than adequate time was given for public input and hearings.

Page 90

F3: Redevelopment plans to use Redevelopment Agency funds for improvements such as upgrading streets and sewers.

Page 90

📋Clearlake City Parks Oversight

4 pages 11 findings 3 recommendations

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Findings & Recommendations 11 findings

F1: The park is mainly used for family picnics and boat launches.

Page 270

F2: The wooden pier needs to be upgraded for safety reasons and to be ADA compliant.

Page 270

F3: Due to California’s economic problems, state grant fund availability is questionable.

Page 270

Related Recommendations (1)

R1: Monitor availability of grant funding to repair and improve the park. (F3)

F4: The increased number of fishing tournaments can be also attributed to the strong marketing efforts of the Clear Lake Chamber of Commerce. 2009-2010 Lake County Civil Grand Jury Public Services Committee

Page 270

F5: Full time supervision of county jail workers is not available due to city park staff shortages.

Page 271

Related Recommendations (1)

R2: Schedule with the county jail for inmate use when staff is available to supervise. (F5) ❖ Austin Park 14077 Lakeshore Drive Facts: • Austin Park is 20 acres located on Lakeshore Drive. • The park offers swimming, tennis courts, a picnic area, a ball field, skateboarding park, playgrounds, and bathrooms. • There are trees, grass, metal and wooden tables and benches. • There are barbeque pits. • The park has two separate playgrounds. • One playground has three slides; the other has six swings and toddler toys: one plane and one train. • The skateboard/BMX park is closed during school hours. • The skateboard/BMX park is used for skateboarding or BMX riding on alternate days of the week. • A dozen young people were using the park for BMX riding during one visit. • Free helmets are available for kids who want to use the park facility. These are donated by the community and can be obtained from the Clearlake Police Department located across from the park. • Vandalism in the skate park is a larger problem during the spring and summer months. • The beach is large and rocky. • One bathroom had running water. • The inside of one bathroom had graffiti. • There is another unisex bathroom. • This area had been plagued by arson. • Lakeshore Drive runs through the park. 2009-2010 Lake County Civil Grand Jury Public Services Committee • The crosswalk is situated in the middle of a block. • The crosswalk is marked with signs. • A Hot Rod Show is scheduled for May 2010. • A small stage is available for performances.

F6: The remnants of graffiti old and new show the anti-graffiti effort is ongoing.

Page 272

F7: With the new style crosswalk signs, the crosswalk is now well marked during the daylight hours. This helps reduce accidents and near accidents.

Page 272

Related Recommendations (1)

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Free helmets are a great idea and reduce the number of injuries in the park.

Page 272

F9: The playground areas and the restrooms were clean and functioning.

Page 272

F10: The park gives a nice view of the lake.

Page 272

F11: The park has no children’s play area.

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📋Clearlake Police Department Complaint 9-05

2 pages 4 findings 3 recommendations

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Findings & Recommendations 4 findings

F1: The complainant’s story contains contradictions.

Page 206

F2: Advisement of Miranda warnings is only required if the arrested person is interrogated.

Page 206

F3: Information in this investigation comes only from the complainant since the CPD would not cooperate with the Grand Jury.

Page 206

Related Recommendations (2)

R1: The Grand Jury recommends that the Clearlake Police Department comply with subpoenas issued from Lake County Superior Court. (F3, F4)

R2: The Grand Jury recommends that the Clearlake Police Department cooperate as required under law with the Grand Jury. (F3, F4)

F4: The CPD did not respond to a Grand Jury subpoena as ordered by the Lake County Superior Court.

Page 206

Related Recommendations (2)

R1: The Grand Jury recommends that the Clearlake Police Department comply with subpoenas issued from Lake County Superior Court. (F3, F4)

R2: The Grand Jury recommends that the Clearlake Police Department cooperate as required under law with the Grand Jury. (F3, F4)

Additional Recommendations 1

Not linked to specific findings.

R3: The Grand Jury recommends that the Clearlake Police Department be more aware of the physical limitations of an aging population. Agency/Department(s) Required to Respond: • Clearlake Police Department via the City of Clearlake Council, within 90 days 2009-2010 Lake County Civil Grand Jury

Page 206

📋Clearlake Police Department Holding Facility Oversight

4 pages 6 findings 1 recommendations

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Findings & Recommendations 6 findings

F1: The CPD holding facility supports modern technology. a. It is sight and sound monitored and recorded. b. Doors and sally port entrances and exits are all electronically controlled. c. Electronic locks are manually operable, if necessary.

Page 231

F2: The CPD can maintain its own electricity in emergencies. 2009-2010 Lake County Civil Grand Jury Public Safety Committee

Page 231

F3: Walls and floors are in well maintained, clean condition.

Page 232

F4: The holding facility is compliant with all required State and County regulations.

Page 232

F5: The inmate questionnaire form is a well-developed and usable assessment tool; it addresses both medical and psychological issues for determining immediate health status at arrest.

Page 232

F6: The CPD website is essentially undeveloped belying the energy and care demonstrated to the Grand Jury during its oversight.

Page 232

Additional Recommendations 1

Not linked to specific findings.

R1: The Grand Jury recommends the Clearlake Police Department design an informational web page to acknowledge individual officers’ achievements, advertise the mission statement, promote community relations, etc.( F1, F2, F3,F4, F5, F6) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury

Page 232

📋Clearlake Police Department Oversight

4 pages 4 findings 3 recommendations

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Findings & Recommendations 4 findings

F1: CPD retention, community policing, perceived favoritism and leadership’s limited presence are issues that are remedial.

Page 227

Related Recommendations (3)

R1: Initiate increased community policing utilizing in-house training. (F1, F3)

R2: Develop the CPD web page to recognize the heroic efforts of law enforcement staff serving Clearlake’s citizens. (F1, F4)

R3: CPD leadership develop more proactive responsibility for the morale of its officers and clerical staff. (F1, F2, F3, F4) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury Public Safety Committee Addendum A 2009-2010 Lake County Civil Grand Jury

F2: There is a perceived disconnection between the command staff and employees. A perception of alienation exists in part because except in emergency situations command has been previously unwilling to “ride along” with patrol, especially during pm and night shifts.

Page 227

Related Recommendations (1)

R3: CPD leadership develop more proactive responsibility for the morale of its officers and clerical staff. (F1, F2, F3, F4) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury Public Safety Committee Addendum A 2009-2010 Lake County Civil Grand Jury

F3: No longer allowing most patrol cars to be driven to and from home decreases visible police presence on the neighborhood streets.

Page 227

Related Recommendations (2)

R1: Initiate increased community policing utilizing in-house training. (F1, F3)

R3: CPD leadership develop more proactive responsibility for the morale of its officers and clerical staff. (F1, F2, F3, F4) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury Public Safety Committee Addendum A 2009-2010 Lake County Civil Grand Jury

F4: The CPD web page is an undeveloped resource. It is a highly economical venue to communicate with the public and recognize individual officer’s achievements.

Page 227

Related Recommendations (2)

R2: Develop the CPD web page to recognize the heroic efforts of law enforcement staff serving Clearlake’s citizens. (F1, F4)

R3: CPD leadership develop more proactive responsibility for the morale of its officers and clerical staff. (F1, F2, F3, F4) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury Public Safety Committee Addendum A 2009-2010 Lake County Civil Grand Jury

📋Clearlake Police Loss of Property

4 pages 7 findings 1 recommendations

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Findings & Recommendations 7 findings

F1: The CPD made minimal effort to contact the complainant after the fact.

Page 210

Related Recommendations (1)

R1: The Clearlake Police Department become more cognizant of effective communication, especially in dealing with the elderly population. (F1, F2, F3, F4, F5) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury

F2: There was miscommunication between the complainant and police; not enough care was given to communicating with the elderly victim.

Page 210

Related Recommendations (1)

R1: The Clearlake Police Department become more cognizant of effective communication, especially in dealing with the elderly population. (F1, F2, F3, F4, F5) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury

F3: The complainant was not given appropriate police assistance after his return to Lake County.

Page 210

Related Recommendations (1)

R1: The Clearlake Police Department become more cognizant of effective communication, especially in dealing with the elderly population. (F1, F2, F3, F4, F5) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury

F4: The victim could not definitively identify the items over the phone to the officer’s satisfaction.

Page 210

Related Recommendations (1)

R1: The Clearlake Police Department become more cognizant of effective communication, especially in dealing with the elderly population. (F1, F2, F3, F4, F5) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury

F5: The officer-in-charge did not adequately communicate the urgency of the victim’s returning home to identify the items or the consequences if the victim did not do so.

Page 210

Related Recommendations (1)

R1: The Clearlake Police Department become more cognizant of effective communication, especially in dealing with the elderly population. (F1, F2, F3, F4, F5) Agency/Department(s) Required to Respond: • Clearlake Police Department via Clearlake City Council (90 days) 2009-2010 Lake County Civil Grand Jury

F6: Since there is no documentation that the residence was checked at the time the incident, it can not be determined if it were secure on March 3, 2009.

Page 210

F7: CPD policies and procedures were followed in the field during thisincident. However, there clearly needed to be more follow-up.

Page 210

📋Correctional Facility Complaint (9-02)

2 pages 7 findings

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Findings & Recommendations 7 findings

F1: In this emergency situation, officers followed their policy and procedure correctly.

Page 212

F2: Staff responded with speed to this life-threatening situation; there was no delay in response.

Page 212

F3: The complainant’s relative received appropriate medical care from the trained correctional staff.

Page 212

F4: Inmate had given no indication of suicidal intent to anyone.

Page 212

F5: The suicide occurred during a time when this inmate would not be checked for as long as 30 minutes.

Page 212

F6: Interiors of cells are not visible to the control tower cameras.

Page 212

F7: Almost two years after the death staff distress is still apparent. Recommendations: None Agency/Department(s) Required to Respond: None 2009-2010 Lake County Civil Grand Jury

Page 212

📋Correctional Facility Complaint (9-09)

2 pages 3 findings

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Findings & Recommendations 3 findings

F1: Reasonable complaints have been given attention by the staff.

Page 213

F2: Complaints have been acknowledged and resolved per protocol.

Page 213

F3: The inmate is not satisfied but state and county requirements are fulfilled.

Page 213

📋Correctional Facility Food Service Complaint

2 pages 1 findings

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Findings & Recommendations 1 findings

F1: The complainant’s statements could not be validated.

Page 216

📋County of Lake Administration Financial Oversight

6 pages 4 findings 3 recommendations

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Findings & Recommendations 4 findings

F1: The County Administrator has never needed to use “one time” revenues to finance the operational budget. The county has strong reserves/contingencies and is able to close gaps in spending over next two years.

Page 76

F2: While the Recommended Final Budget book stated that no General Fund employees are to be subject to layoff, this tends to mislead the general public as they might not know what the qualifier “General Fund” means. Budget and Finance Committee The general public may misunderstand and think there are no layoffs planned by the county. This would be an incorrect conclusion.

Page 76

Related Recommendations (1)

R1: The BOS and county administration avoid misleading statements that paint a rosier picture. (F2)

F3: The LCA indicated that the BOS may have set up the initial Quagga and Zebra Mussel program including buying expensive and ineffective equipment with little apparent forethought as to how to enforce and/or manage the program.

Page 77

Related Recommendations (1)

R2: The BOS and the LCA ensure that future procurements be based on sufficient analysis to ensure that money will not be wasted. (F3)

F4: The Megabyte annual software maintenance fee is outrageous for a software product that services such a broad audience. Given that the 36 other counties in California accomplish their job without Megabyte, there are likely other less costly solutions for Lake County. Recommendations:

Page 77

Related Recommendations (1)

R3: The BOS and the LCA establish an independent committee to investigate what software the other 36 California counties utilize for property tax management and make a recommendation on whether any of those packages might be more appropriate. Approaches to be considered include working with the other 21 counties to jointly come up with a project to replace Megabyte or just going on our own to contract with one of the 36 counties. This committee should not include any representative from the Tax Collector’s office so as to avoid taking away from the time needed in that job. The Tax Collector can be an advisor, but not a voting member. (F4) Agency/Department(s) Required to Respond: • Lake County Administrator via Board of Supervisors - 90 days (R1, R2, R3) Budget and Finance Committee

📋District Attorney Oversight

4 pages 5 findings 5 recommendations

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Findings & Recommendations 5 findings

F1: Lake County DA’s office does not have a manual for policies and procedures.

Page 92

Related Recommendations (1)

R1: A manual be placed in force for the Lake County DAs Office for policies and procedures. (F1) Government Services Committee

F2: Financial problems still exist from previous administration concerning asset forfeiture and seizure.

Page 92

Related Recommendations (1)

R2: Continue to work on solutions to financial problems. (F2)

F3: Progress is being made toward improving the handling of asset forfeiture and seizure.

Page 92

Related Recommendations (1)

R3: Continue improving the department. (F3)

F4: The budget cannot afford a white collar task force at this time.

Page 92

Related Recommendations (1)

R4: Pursue all avenues for funding of a white collar task force such as grants. (F4)

F5: The Lake County DA’s Office is a training ground for new attorneys.

Page 92

Additional Recommendations 1

Not linked to specific findings.

R5: Hire more experienced attorneys and/or intensify training. (F-5) Agency/Department(s) Required to Respond: • District Attorney (90 days) Government Services Committee

Page 93

📋District Attorney / Sheriff Office Complaint

2 pages 6 findings

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Findings & Recommendations 6 findings

F1: The District Attorney’s letter was correct as it referred to the appropriate case, naming one of the two alleged assailants and the date the complaint was filed, per department protocol.

Page 218

F2: There is a documented statement taken from the complainant‘s husband on record.

Page 218

F3: There is no documentation, report, or witness statement to support the complainant’s allegations of assault except her husband‘s.

Page 218

F4: The complainant was not aware of the law requiring a citizen’s arrest if an alleged misdemeanor is not witnessed by a police officer (PC 837).

Page 218

F5: The District Attorney cannot pursue a case for which there is insufficient evidence and little chance of a conviction.

Page 218

F6: The Lake County Sheriff‘s office exercised ‘due diligence’ in its investigation of this issue, conducting a thorough investigation.

Page 218

📋Environmental Health Oversight

4 pages 5 findings

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Findings & Recommendations 5 findings

F1: The Environmental Health Division effectively enforces California State Health laws to guarantee environmental and health safety for the people of Lake County.

Page 151

F2: Application forms for permits and inspections are well developed, comprehensive and readily available.

Page 151

F3: The Division uses scheduled inspections and various priced permits appropriately.

Page 151

F4: Employees receive compensatory time instead of overtime as a cost saving measure.

Page 151

F5: Division budget documents were reviewed that indicated the Division was well within budget. This was confirmed by County budget reports.

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📋Human Resources Department Oversight

4 pages 5 findings 2 recommendations

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Findings & Recommendations 5 findings

F1: Nepotism can be a perceived as a problem because of the low density of population and rural make-up of Lake County.

Page 98

F2: At-will employment is not clearly defined in HR recruitment documentation.

Page 98

Related Recommendations (1)

R2: Place an advisory note on all employment documents that Lake County is an At-Will employer. (F2) Agency/Department(s) Required to Respond: • Lake County Human Resources Department via Board of Supervisors (90 days)

F3: Job information is readily available to the community via HR Department, EDD, online, job hotline and multi-media.

Page 98

F4: The County has partnered with the State EDD to increase the supply of trained people available for hire.

Page 98

F5: The recommendations from the 2007-2008 regarding revision of policies for leave of absence, formal medical leave, and probationary employment have not been completed.

Page 98

Related Recommendations (1)

R1: Referring to the 2007-2008 Grand Jury Final Report recommendations, complete the review and revision regarding leave of absence, formal medical leave as well as period of probation. (F5)

📋In-Home Supportive Services Oversight

4 pages 13 findings 3 recommendations

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Findings & Recommendations 13 findings

F1: In Fiscal Year 2007-2008, Lake County IHSS had an average monthly recipient caseload of 1488.

Page 154

F2: The Public Authority Registry had 296 providers.

Page 154

F3: Non-Registry providers totaled 1200. Health and Human Services Committee

Page 154

F4: Annual Provider hours totaled 2,143,909.

Page 155

F5: Annual Provider payroll totaled $17,363,053.

Page 155

F6: In September 2009, IHSS had a caseload of 1661 recipients for a total of 213,677.5 hours of service.

Page 155

F7: The County of Lake shares the cost of IHSS with the State of California. The County’s share of the total cost is 17.5%.

Page 155

F8: The intake procedure for clients from the time services are requested until services are authorized may take up to 45 days but may be shortened for high priority emergency cases.

Page 155

F9: Once eligibility is established, an IHSS Social Worker determines the necessary services and the number of service hours. The IHSS Social Worker will meet with each client a minimum of once a year, or more often as needed to reassess the recipient’s needs.

Page 155

F10: As of November 1, 2009 fingerprinting and criminal background checks are required for all IHSS providers and are administered and paid for by Lake County Social Services.

Page 155

F11: Currently, drug testing is not required for IHSS providers.

Page 155

F12: During Fiscal Year 2008/2009 IHSS referred 16 suspected fraud cases to the Investigation Unit in Sacramento. There has been no response from Sacramento regarding these referrals. State policy does not require any response to the referring agency.

Page 155

F13: From July through November 2009 nine cases have been referred. Recommendations:

Page 155

Additional Recommendations 3

Not linked to specific findings.

R1: Every reasonable effort should be made to establish testing for illegal drugs as a condition of employment for all IHSS providers.

Page 155

R2: Provide appropriate training to IHSS Social Workers in identifying fraud.

Page 155

R3: IHSS make every effort to obtain feed-back from the Investigation Unit in Sacramento to determine if fraud referrals are appropriately made. Agency/Department(s) Required to Respond: • Social Services Director via the Board of Supervisors (90 days) Health and Human Services Committee

Page 155

📋Konocti Conservation Camp #27 Oversight

6 pages 2 findings

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Findings & Recommendations 2 findings

F1: This is an excellent program CDCR and CAL FIRE have created; useful and cost effective, safe for the community and positively affecting social change. Mutual goals and coordination between two State departments have produced a successful joint agency program. 2009-2010 Lake County Civil Grand Jury Public Safety Committee

Page 236

F2: Fire Captains, CDCR officers and inmate crews have developed a relationship of trust necessary to work together effectively in emergencies. Inmate and staff members choose to work at KCC. This mutual determination fosters trust and provides a foundation for success.

Page 237

📋Lake County/City Area Planning Council Oversight

4 pages 5 findings 1 recommendations

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Findings & Recommendations 5 findings

F1: The Information Technology (IT) department is responsible for updating the Lake APC website.

Page 275

F2: The public is welcome at the meeting to address issues related to the APC's jurisdiction.

Page 275

F3: The day-to-day business of the APC is performed by the contracted administrator as directed by the board of directors.

Page 275

F4: The presence of Caltrans allows for issues of concern to be immediately presented to them for investigation and action.

Page 275

F5: The winter 2010 newsletter tells of the funding cuts that will impact the road maintenance, bus services and long range road improvements of Lake County. This and past newsletters are available on the Lake APC website. Recommendations:

Page 275

Additional Recommendations 1

Not linked to specific findings.

R2: Post the meeting location and agendas on the Lake APC website prior to the actual meeting date. Agency/Department(s) Required to Respond: • Lake County/City Area Planning Council (90 days) • Information Technology Department via the Board of Supervisors (90 days) 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury

Page 275

📋Lake County Code Enforcement

2 pages 3 findings 1 recommendations

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Findings & Recommendations 3 findings

F1: There is no record of a phone conversation at Code Enforcement from the complainant.

Page 178

Related Recommendations (1)

R1: Code Enforcement change department policy to record calls requesting information, not just formal complaints. Include date, time, where calls were directed, and keep on file for the same length of time as formal complaints. (F1,F2) Agency/Department(s) Required to Respond: • Community Development Department via Board of Supervisors (90 days)

F2: Code Enforcement has no formal complaint on file from complainant.

Page 178

Related Recommendations (1)

R1: Code Enforcement change department policy to record calls requesting information, not just formal complaints. Include date, time, where calls were directed, and keep on file for the same length of time as formal complaints. (F1,F2) Agency/Department(s) Required to Respond: • Community Development Department via Board of Supervisors (90 days)

F3: The complainant did not provide evidence to substantiate further investigation into the allegations of misconduct.

Page 178

📋Lake County Correctional Facility Oversight

4 pages 12 findings 5 recommendations

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Findings & Recommendations 12 findings

F1: Policies and procedures are comprehensive, well developed and implemented.

Page 241

F2: With a total staff of 60+ and an average daily inmate capacity of 280, LCCF does not have an automated external defibrillator (AED).

Page 241

Related Recommendations (1)

R1: The Grand Jury strongly recommends that LCCF obtain an AED immediately as it is an inexpensive but priceless life-saving tool. (F2, F11)

F3: An inmate–maintained garden on jail grounds provides fresh produce in summer. 2009-2010 Lake County Civil Grand Jury Public Safety Committee

Page 241

Related Recommendations (1)

R5: LCCF could consider a winter garden as a cost-effective work program and an alternative to purchasing vegetables. (F3, F8, F10, F11) Agency/Department(s) Required to Respond: • Lake County Board of Supervisors (within 90 days) • Lake County Sheriff (within 90 days) 2009-2010 Lake County Civil Grand Jury

F4: The committee noted a good working relationship between correctional and medical staff. Several officers indicated LCCF is a “good place” to work.

Page 242

F5: Changes in administration with recent in house disciplinary issues appear to have left moral intact.

Page 242

Related Recommendations (1)

R2: The Grand Jury recommends that every effort be made to secure sufficient kitchen staffing, to fill vacant kitchen positions, and to use the registered dietician effectively. (F5, F6, F7, F10)

F6: An half-time employee is in charge of the kitchen; a full-time position remains vacant. It is difficult to maintain the necessary supervision in the kitchen if staffing is not optimum.

Page 242

Related Recommendations (2)

R2: The Grand Jury recommends that every effort be made to secure sufficient kitchen staffing, to fill vacant kitchen positions, and to use the registered dietician effectively. (F5, F6, F7, F10)

R3: It is requested that LCCF recognize the need to serve the largest, cooked meal in the evening. (F6, F7, F8, F10, F11)

F7: The largest meal, a hot lunch served at noon (although the menu show it at dinner time), may be more convenient for kitchen staff but does not serve the inmates well, esp. the juvenile hall clients.

Page 242

Related Recommendations (2)

R2: The Grand Jury recommends that every effort be made to secure sufficient kitchen staffing, to fill vacant kitchen positions, and to use the registered dietician effectively. (F5, F6, F7, F10)

R3: It is requested that LCCF recognize the need to serve the largest, cooked meal in the evening. (F6, F7, F8, F10, F11)

F8: There is a 14 hour time span between the brown-bagged dinner and breakfast – both somewhat meager in amount.

Page 242

Related Recommendations (2)

R3: It is requested that LCCF recognize the need to serve the largest, cooked meal in the evening. (F6, F7, F8, F10, F11)

R5: LCCF could consider a winter garden as a cost-effective work program and an alternative to purchasing vegetables. (F3, F8, F10, F11) Agency/Department(s) Required to Respond: • Lake County Board of Supervisors (within 90 days) • Lake County Sheriff (within 90 days) 2009-2010 Lake County Civil Grand Jury

F9: Inmates receive a prescribed number of calories but this does not reflect the actual amount of food served.

Page 242

F10: Although the committee was informed that financial limitations are a concern LCCF is operating within budget.

Page 242

Related Recommendations (4)

R2: The Grand Jury recommends that every effort be made to secure sufficient kitchen staffing, to fill vacant kitchen positions, and to use the registered dietician effectively. (F5, F6, F7, F10)

R3: It is requested that LCCF recognize the need to serve the largest, cooked meal in the evening. (F6, F7, F8, F10, F11)

R4: The Grand Jury suggests a larger exercise yard be developed in the available space on county land. (F10, F11)

R5: LCCF could consider a winter garden as a cost-effective work program and an alternative to purchasing vegetables. (F3, F8, F10, F11) Agency/Department(s) Required to Respond: • Lake County Board of Supervisors (within 90 days) • Lake County Sheriff (within 90 days) 2009-2010 Lake County Civil Grand Jury

F11: The exercise yard is small and sterile; there exists no way to facilitate large muscle exercise or even relaxation.

Page 242

Related Recommendations (4)

R1: The Grand Jury strongly recommends that LCCF obtain an AED immediately as it is an inexpensive but priceless life-saving tool. (F2, F11)

R3: It is requested that LCCF recognize the need to serve the largest, cooked meal in the evening. (F6, F7, F8, F10, F11)

R4: The Grand Jury suggests a larger exercise yard be developed in the available space on county land. (F10, F11)

R5: LCCF could consider a winter garden as a cost-effective work program and an alternative to purchasing vegetables. (F3, F8, F10, F11) Agency/Department(s) Required to Respond: • Lake County Board of Supervisors (within 90 days) • Lake County Sheriff (within 90 days) 2009-2010 Lake County Civil Grand Jury

F12: The majority of the 2009-2010 Grand Jury‘s recommendations for LCCF require minimal expenditures.

Page 242

📋Lake County Correctional Facility (Unannounced) Oversight

2 pages 2 findings 2 recommendations

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Findings & Recommendations 2 findings

F1: The Grand Jury was misinformed as to complaint form availability at LCCF.

Page 243

Related Recommendations (2)

R1: Grand Jury complaint forms be made available to all inmates and detainees at once. (F1, F2) 2009-2010 Lake County Civil Grand Jury Public Safety Committee

R2: Information regarding the Grand Jury be included in the brochure distributed during booking at JH and LCCF.(F1, F2) Agency/Department(s) Required to Respond: • Lake County Sheriff’s Office, within 90 days • Lake County Juvenile Hall via County Probation Department, within 60 days 2009-2010 Lake County Civil Grand Jury

F2: Incarcerated citizens in Lake County are denied access to the Grand Jury forms to which they are entitled.

Page 243

Related Recommendations (2)

R1: Grand Jury complaint forms be made available to all inmates and detainees at once. (F1, F2) 2009-2010 Lake County Civil Grand Jury Public Safety Committee

R2: Information regarding the Grand Jury be included in the brochure distributed during booking at JH and LCCF.(F1, F2) Agency/Department(s) Required to Respond: • Lake County Sheriff’s Office, within 90 days • Lake County Juvenile Hall via County Probation Department, within 60 days 2009-2010 Lake County Civil Grand Jury

📋Lake County Fire Protection District Complaint

4 pages 6 findings 4 recommendations

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Findings & Recommendations 6 findings

F1: The complainant’s home was burned completely to its foundation, not bull- dozed.

Page 221

Related Recommendations (1)

R1: LCFPD suggest Westwind Mobile Home Resort have its water district evaluate need for fire hydrants and place them accordingly. (F1)

F2: Dry and readily flammable landscaping increased the spread of an initially localized fire.

Page 221

Related Recommendations (1)

R2: LCFPD request an inspection of Westwind Mobile Home Resort by the appropriate State agency to determine its compliance with safety codes.(F2, F3)

F3: Due to the absence of fire hydrants at the mobile home park, water has to be brought from outside sources in case of fire.

Page 221

Related Recommendations (1)

R2: LCFPD request an inspection of Westwind Mobile Home Resort by the appropriate State agency to determine its compliance with safety codes.(F2, F3)

F4: Revamping fire district boundaries could markedly improve response time to out-lying areas.

Page 221

Related Recommendations (1)

R3: LCFPD initiate plans to adjust and redraw its district boundaries with KFPD as soon as possible to increase timely and effective response to emergencies. (F4)

F5: Since mobile homes are at such risk for rapid conflagration, an automatic mutual aid call could help control fire spread by increasing the number of initial responders to all mobile home fires.

Page 221

Related Recommendations (1)

R4: LCFPD and KFPD immediately implement plans to designate that mobile home park fires be automatically dispatched as mutual aid. (F5) Agency/Department(s) Required to Respond: • Board of Directors, Lake County Fire Protection District (R1, R2, R3, R4, R5) within 90 days • Board of Directors, Kelseyville Fire Protection District (R3, R4, R5) within 90 days 2009-2010 Lake County Civil Grand Jury Public Safety Committee 2009-2010 Lake County Civil Grand Jury

F6: All emergency equipment arrived on scene within reasonable time from dispatch. Recommendations:

Page 221

📋Lake County Information Technology Department Oversight

4 pages 6 findings 4 recommendations

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Findings & Recommendations 6 findings

F1: Present space is not adequate.

Page 100

Related Recommendations (1)

R1: Try to find more space for any additional employees in the future. (F1)

F2: The generator was originally designed for lights only. The generator will only run for approximately two hours and is insufficient. Government Services Committee

Page 100

Related Recommendations (1)

R2: Update the backup generator. (F2)

F3: All hardware and software should be compatible.

Page 101

F4: All equipment should be approved by IT before a department purchases it.

Page 101

F5: New equipment is needed for tape backup of data.

Page 101

Related Recommendations (1)

R3: Budget money for tape back-up (F5)

F6: ADA compliance is not adhered to. Recommendations:

Page 101

Related Recommendations (1)

R4: Update the office to be ADA compliant. (F6) Agency/Department(s) Required to Respond: • County Information Technology Department via County Board of Supervisors (90 days) Government Services Committee

📋Lake County Inmate Phone Services

6 pages 4 findings 2 recommendations

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Findings & Recommendations 4 findings

F1: The two agencies are properly accounting for the funds received and disbursed.

Page 82

F2: When asked, the Superintendent of the Juvenile Hall was unable to provide information on the Juvenile Hall Inmate Trust Fund balance, income or expenses.

Page 82

Related Recommendations (1)

R1: The Chief Probation Officer ensure that the Superintendent is trained on how to access the Juvenile Hall Inmate Trust Fund balance, income and expense information. (F2, F3)

F3: The Probation Department Administrator indicated that the information on the Juvenile Hall Inmate Trust Fund balance, income and expenses was available to the Superintendent via the normal accessing of the HTE financial system of the County.

Page 82

Related Recommendations (1)

R1: The Chief Probation Officer ensure that the Superintendent is trained on how to access the Juvenile Hall Inmate Trust Fund balance, income and expense information. (F2, F3)

F4: There is no documented protocol or process for authorizing expenditures from the Juvenile Hall Inmate Trust Fund. Recommendations:

Page 82

Related Recommendations (1)

R2: The Probation Department Administrator establish a formal authorization process for approving disbursements from the Juvenile Hall Inmate Trust Fund. Notify the Juvenile Hall superintendent of the new process via official written Memo. (F4) Agency/Department(s) Required to Respond: • Chief Probation Officer via Board of Supervisors (90 days ) R1, R2 Government Services Committee Government Services Committee Table of Contents • Oversights Board of Supervisors 69 Clearlake City Council 73 District Attorney 75 Human Resources Department 79 Lake County Information Technology Department 83 Lake County Redevelopment Agency 87 Lakeport City Council 111 Public Defender 113 Government Services Committee

📋Lake County Juvenile Hall Oversight

10 pages 26 findings 15 recommendations

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Findings & Recommendations 26 findings

F1: The committee’s initial impression of the facility is that it is physically maintained daily as a neat, clean and orderly environment.

Page 250

F2: Interviews did disclose some serious underlying structural issues not readily apparent to the visiting committee’s “eyes”. For example, the building roof leaks and the committee was advised there is a recurring odor of mold during the rainy season which can be a health threat to staff and detainees.

Page 250

Related Recommendations (1)

R1: The Lake County Building and Grounds follow through on the bidding for the repair or replacement of the roof on this facility. In addition Building and Grounds heed the notice from Juvenile Hall authorities and investigate the source of odor which may indicate the unhealthy presence of mold. (F2)

F3: Water Pressure and temperature provided to the sink/drinking fountain combination in the cells was inadequate for hand washing, teeth brushing and/or drinking. These conditions prevent personal hygiene from being carried out properly.

Page 250

Related Recommendations (1)

R2: The Lake County Building and Grounds find and fix the plumbing problem to ensure hot water for washing and cold water for drinking and adequate pressure for both is provided to all detainee cells.(F3)

F4: While most is painted over, Graffiti (often gang related) is an ongoing occurrence.

Page 250

F5: There is a proposal to remove a wall/window which separate the dayroom from the eating area. While an expensive endeavor, the net effect of this project is twofold. The wall/window now requires one staff member in the eating area and one in the dayroom. Removing the wall/window allows for better use of staffing resources and in addition will open up the dayroom 2009-2010 Lake County Civil Grand Jury Public Safety Committee space for programming and large muscle activity during inclement weather.

Page 250

F6: Detainees complained the cells and other rooms are either stale and stifling hot in the summer or freezing cold during the winter months; and we were told they sleep in their clothes for warmth at night.

Page 251

Related Recommendations (1)

R3: The Lake County Building and Grounds replace the malfunctioning heating and air conditioning unit or increase the capacity of the existing unit to ensure adequate heating and cooling and healthy ventilation of the facility.(F6)

F7: The committee was advised that there is one warped exterior door frame and door which may not lock and is very heavy and difficult to open. It could require significant force in case of an emergency. Not to replace it could therefore pose possible safety and security risks.

Page 251

Related Recommendations (1)

R4: The Juvenile Hall administration follow through with the replacement of the exterior warped door and door frame. (F7, F8)

F8: The committee was put at ease when informed the 2009/2010 fiscal year budget contained request of $10,000 for replacement of the door and frame work and this work has been contracted. No work was in progress at the time of the committee visit.

Page 251

Related Recommendations (1)

R4: The Juvenile Hall administration follow through with the replacement of the exterior warped door and door frame. (F7, F8)

F9: The intercom system fails intermittently; the committee could find no budget line item request for intercom replacement.

Page 251

Related Recommendations (1)

R5: The Juvenile Hall administration follow through with appropriate agency to repair or replace the failing intercom system.(F9)

F10: Because the Sheriff’s Department changed it’s bandwidth of their dispatch frequency and radios, the 2009/2010 fiscal year budget reflects a budget request to replace twelve (12) outdated radios to be compatible with the Sheriff’s new bandwidth communications system.

Page 251

Related Recommendations (1)

R6: The Juvenile Hall administration closely monitor delivery of the twelve (12) new wide bandwidth radios. (F10)

F11: During interviews and our inspection the committee learned that a new camera surveillance coverage system has been ordered. It was to be installed immediately upon arrival. It had not yet arrived at the time of the committee visit.

Page 251

Related Recommendations (1)

R7: The Juvenile Hall administration closely monitor delivery of new camera surveillance coverage system that has reportedly been ordered. (F11) 2009-2010 Lake County Civil Grand Jury Public Safety Committee

F12: The committee observed the officers’ weapons storage lockbox is provided as an interior lockbox just inside the admitting door. A safer location for the weapons lockbox would be an outside-the-facility-doors location - where it would not be accessible to the detainee during the admittance process.

Page 251

Related Recommendations (1)

R8: The Juvenile Hall administration relocate the officers’ weapons storage lockbox to a location outside of the admitting doors to achieve safe keeping from the entering detainee.(F12)

F13: Staff informed and the committee observed new heavy duty cloth covered mattresses in the storage cupboards. These are to replace the vinyl covered mattresses which tear at the seams easily. It was explained the new mattresses are being obtained in incremental deliveries and will be distributed when all have arrived.

Page 251

F14: Although the medical program manager did not feel this small space creates a serious handicap, the committee found the nurse’s examination room a decidedly cramped area.

Page 251

F15: The kitchen has been inoperable for the past seven years - at least; the kitchen needs a new stove vent hood, plumbing repairs and other general updating of appliances to be functional. Much is in need of repair or replacement, however, the 2009/2010 fiscal year budget reflects a budget request to replace the vent hood only. 2009-2010 Lake County Civil Grand Jury Public Safety Committee

Page 251

Related Recommendations (1)

R9: The Board of Supervisors make the reopening of the Juvenile Hall kitchen a budgeting priority in the 2010/2011 fiscal year. (F15, F16, F17)

F16: Staff and detainees complained the food portions are small, particularly for the teenage boys. Detainees complained food most often has little if any flavor or taste - as was true of the noon meal sampled by the committee on the day of our visit. It was expressed that reopening the facility kitchen could resolve the above while at the same time, it could provide the vehicle for culinary education for interested detainees - allowing them to learn about nutrition, proper food handling and efficient, healthy, tasty food preparation – currently a missed opportunity for vocational teaching.

Page 252

Related Recommendations (1)

R9: The Board of Supervisors make the reopening of the Juvenile Hall kitchen a budgeting priority in the 2010/2011 fiscal year. (F15, F16, F17)

F17: Staff recognized the importance of temperature controls, however, it was expressed that delivered temperature, like convenience and cost effectiveness, prohibits quality nutritious meal service to the detainees.

Page 252

Related Recommendations (1)

R9: The Board of Supervisors make the reopening of the Juvenile Hall kitchen a budgeting priority in the 2010/2011 fiscal year. (F15, F16, F17)

F18: There is no covered outside recreation area, restricting outdoor activity in cold, rainy and/or very hot weather conditions. A viable solution would be the proposal to remove the wall separating the dayroom and the eating area to facilitate indoor physical activity during these weather extremes.

Page 252

F19: The committee was advised there is no firm commitment to allow detainees to replant the vegetable garden this coming Spring. This was felt to be an excellent outdoor activity for those detainees interested; as well as therapeutic - in that growing and preparing their own vegetables for consumption (even if only able to use the operative kitchen micro-wave at this juncture) elevated a sense of achievement and thereby “self esteem”.

Page 252

Related Recommendations (1)

R10: The Juvenile Hall administration commit to allowing interested detainees to replant the vegetable garden this coming Spring. (F19)

F20: The committee observed a detainee currently awarded the laundry task as an incentive based upon good behavior enjoyed considerable “freedom” within the facility.

Page 252

F21: Sunday non-denominational religious services have been discontinued and a Bible study is no longer offered. The committee was told the detainees can substitute such regular services and/or instruction only with religious counseling or clergy visits and only “upon a personal detainee written request”. This current policy seems to imply that the detainees are aware of the value and/or have already been exposed to the moral standards and grounding that religious services and instruction can instill.

Page 252

Related Recommendations (1)

R11: The Juvenile Hall administration re-institute a non-denominational religious service and/or a Bible study. (F21)

F22: The committee was provided a copy of a letter confirming that the non- compliance issues with Title 15 regulations reported on the August, 2008, CSA inspection report have been corrected.

Page 252

F23: The committee was informed Fire Safety Inspections occur bi-annually; the next inspection is due to occur in June 2010. Questioning and research revealed that fire drills are conducted quarterly. However, a safety concern arises in that there is no contingency plan for emergency housing in the event of a permanent evacuation.

Page 252

Related Recommendations (1)

R12: The Juvenile Hall administration and/or Sheriff’s Department create a contingency plan for emergency housing in the event of a permanent evacuation. (F23)

F24: A 2010 Inspection Summary provided to the committee reflects that the 2009-2010 Lake County Civil Grand Jury Public Safety Committee Juvenile Justice Commission’s last inspection was performed in May 2009 but Juvenile Hall administration is not in receipt of the required report from that inspection. The next Juvenile Justice Commission inspection is to be conducted in May 2010.

Page 252

Related Recommendations (1)

R13: The Board of Supervisors request that the Juvenile Justice Commission produce their May, 2009, Juvenile Hall report and deliver it immediately to the appropriate agencies. (F24)

F25: The 2010 Inspection Summary provided to the committee reflects that the Juvenile Court Judge’s last required inspection was performed in August, 2008. However, Juvenile Hall administration is not in receipt of the requisite report from that inspection.

Page 253

Related Recommendations (1)

R14: The Board of Supervisors request that the Juvenile Court Judge produce the requisite August, 2008, Juvenile Hall inspection report and deliver it to the appropriate agencies. (F25)

F26: The summary reflects the Juvenile Judge’s required inspection was to have been performed in August 2009. The committee was advised that the Juvenile Judge has been notified via email regarding this delinquent inspection. The Juvenile Judge failed to make that annual inspection and subsequent report and there is no evidence of a response to that email from the Judge to Juvenile Hall administration.

Page 253

Related Recommendations (1)

R15: The Board of Supervisors request that the Juvenile Court Judge make the neglected August, 2009, annual Juvenile Hall inspection and produce and deliver the subsequent report to the appropriate agencies. (F26) Agency/Department(s) Required to Respond: • Chief Probation Officer via Board of Supervisors (90 days) (R1, R2, R3, R9, R13, R14, R15) • Juvenile Hall Administration via Board of Supervisors (90 days) (R1, R2, R3, R4, R5, R6, R7 R8, R9, R10, R11, R12) • Sheriff via Board of Supervisors (90 days) (R12) 2009-2010 Lake County Civil Grand Jury

📋Lake County Parks Oversight

16 pages 10 recommendations

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Additional Recommendations 10

Not linked to specific findings.

R1: Provide more garbage cans at Rodman Slough.

Page 290

R2: Print revised Lake County Recreation guide by 2011 tourist season.

Page 290

R3: In Alpine Park, Lucerne fix landscaping to reduce formation of puddles. 2009-2010 Lake County Civil Grand Jury Public Services Committee

Page 290

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

Page 291

R5: Make repairs at Lucerne Harbor children’s playground.

Page 291

R6: Provide at all county park children playgrounds signs that clearly state playground rules.

Page 291

R7: Give high priority to the renovation of Keeling Park’s bathrooms.

Page 291

R8: Make more county parks dog friendly.

Page 291

R9: Attend to the animal burrows at Upper Lake Park to make the park safer.

Page 291

R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury

Page 291

📋Lake County PEG Channel (tv8)

20 pages 28 findings 22 recommendations

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Findings & Recommendations 28 findings

F1: The City of Lakeport elected to “not participate” in PEG TV8 even though Budget and Finance Committee all of its residents with Mediacom cable receive the programming. Lakeport received over $30,000 each year for the past three (3) years from Mediacom, and provides no support, guidance or leadership to the station. Were it not for the 1984 Act, Lakeport would not receive the Franchise Fees; nor would there be a PEG channel in Lake County. (Facts 1, 2, 4, 15, 16, 21)

Page 47

Related Recommendations (1)

R1: The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1)

F2: The PEG BOD consists of only four (4) (of the required five (5)) directors, one of whom wasn’t even aware until “a few days ago that she was voting member” on the PEG BOD. On December 31, 2009 and effective immediately, the PEG TV 8 cable provider [Mediacom] representative member of the PEG BOD submitted a letter of resignation citing that as an employee of the channel’s cable provider, he is “. . . legally prohibited from taking part in the selection of programming carried by TV8 lest it lead to exercising editorial control prohibited by the federal statute.” (Facts 4, 5)

Page 48

Related Recommendations (1)

R2: The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2)

F3: Under testimony, each PEG BOD member confessed they were vaguely familiar with the contents of the 2007 Agreement, if at all; the agreement which the B&F Committee found to be the cornerstone of the formation of PEG TV8. (Facts 4, 5, 7)

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R3: The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F4: Based on testimony, each PEG BOD member agreed that the PEG BOD failed to oversee management and operation of PEG TV 8 as required in the 2007 Agreement. The B&F Committee found no PEG BOD planning or operational documents such as programming policies and guidelines, personnel administrative and financial policies and procedures, job descriptions, strategic plan, or financial plan for the PEG TV8 staff and volunteers to abide by. (Facts 5, 6, 7)

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R3: The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R20: The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4)

F5: Via testimony each PEG BOD member agreed that the PEG BOD failed to formulate a set of PEG BOD By-laws to control the actions of its own members. (Fact 5)

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R4: The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22)

F6: The PEG BOD (at a date undetermined), if not formally, tacitly allowed an existing Members’ Manual de facto and the guidelines and processes within to substitute for PEG BOD formal operating and management documents. While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision. In addition, the PEG BOD members were mostly unfamiliar with the Advisory Committee’s By-laws. Budget and Finance Committee (Facts 8, 9)

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R3: The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14)

F7: Via testimony each PEG BOD member agreed that the PEG BOD set the hour for the PEG BOD monthly (moving to quarterly) meetings at 7:00 AM for personal convenience (several have jobs). During interviews, PEG BOD members acknowledged this early hour basically precludes public attendance and participation. (Fact 25)

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R5: The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14)

F8: Witness testimony during interviews revealed PEG TV8 history contains expected growing pains, some past political misuse and for the last two years, an attitude or position among some PEG Advisory committee and station volunteers which violates the inherent purpose or function of PEG TV8 - to pursue diversification to benefit all of Lake County. (Facts 7, 8, 11)

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R5: The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14)

R7: The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21)

F9: As the lead agency, the City of Clearlake maintains the PEG TV8 financial balances as a separate Fund, writing checks for PEG TV8. (Fact 4)

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R6: The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9)

R8: The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9)

F10: The three public agencies, County of Lake, City of Lakeport, and City of Clearlake, have stated and provided documentation reflecting that combined they received $400k in Franchise Fees annually for granting Mediacom access to Lake County right of ways. The agencies state that this Fee is in no way tied to providing a Public Access Channel. This in spite of the generally recognized purpose of the 1984 Cable Franchise Policy and Communications Act that allowed Cable Television in each community - in exchange for 5% of all revenues - to be granted public access community television and what is called PEG or Public, Educational and Government (channel) TV. While legally these agencies may be correct that there is no direct tie, it is incongruous that these agencies force PEG TV8 to rely on volunteers and only provide a total of $10,000 of support while collectively receiving almost a half a million dollars in income. (Facts 5, 21)

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R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F11: Financial irregularities include: i. the lack of accrued interest earnings properly credited PEG TV8 from fiscal year 2006/2007 to present; ii. no professional evaluation of fair market value has been assigned to the City of Clearlake’s “space” being proffered in lieu of the City’s Budget and Finance Committee required $5000 allocation due to PEG TV8 in the fiscal years 2009/2010 and 2010/2011; iii. regarding the lack of three (3) required bids being received prior to a major equipment purchase decision by PEG TV8, conflicting testimony was received and no evidence or documentation was found showing that multiple bids were solicited or received; iv. the City of Clearlake did not apply the appropriate level of validating that any of the expenses had written approval by the PEG BOD, or the financial officers or the BOS as required by the Advisory committee By-laws; v. no documented evidence and no PEG BOD member interviewed could confirm an independent audit had been performed on the PEG TV8 financials in the fiscal years 2007 through 2010. (Facts 6, 9, 12, 14, 15, 16, 17, 22, 23)

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R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R10: PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16)

R11: An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

R22: The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21).

F12: Via testimony each PEG BOD member agreed that the PEG BOD never attempted, as required by the 2007 Agreement, to make application to implement the Pubic Utilities Code Section 5870(n) and take advantage of an additional franchise fee that could be available specifically and exclusively for the purpose of funding support and allowable expenses of the PEG TV8 channel facilities. (Fact 5)

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R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R14: The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12)

F13: Not one PEG board director could report during testimony before the B&F Committee that the two parties to the 2007 Agreement are providing the requisite Worker’s Compensation and Employer’s Liability Insurance or Commercial General Liability Insurance or Automobile Liability Insurance. Indeed none were even aware of the requirement. According to documentation received, PEG TV8 budgeted and paid only into Worker’s Compensation and Employer’s Liability Insurance in the fiscal years 2005/2006, 2006/2007 and 2007/2008. While the City and County have some insurance coverage available for volunteers, this coverage is only in effect for those volunteers designated and registered on a list at that agency. Neither agency had any record of any PEG TV8 volunteers on the agency’s list. Both agencies require that volunteers maintain automobile liability coverage on the personal automobiles used to perform agency duties which conflicts with the 2007 Budget and Finance Committee Agreement. This may be leaving the county and city open to potentially high risk situations especially regarding the use of volunteers. (Fact 6, 17, 18)

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R7: The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R15: The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13)

F14: Contrary to the description in the Members’ Manual that the capacity of the Advisory Committee is to assist and advise the PEG BOD, the content of the Advisory Committee’s Minutes and Agenda reflect a take charge attitude by the then acting station manager and committee members, some of whom that manager recruited. But, even so and while the mission of both the Advisory Committee By-laws and the Members’ Manual is, in part, to provide a public access media channel that enables a vibrant diversity, the former acting station manager testified to having "no time and not enough help" to proactively seek diversified programming. (Facts 3, 4, 8, 9)

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R3: The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14)

R5: The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14)

R7: The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21)

F15: Most PEG board directors readily admitted during testimony with the B & F Committee that the director either completely failed to read the Members’ Manual or at the very least is not very familiar with its contents. These PEG BOD members therefore failed to discern that the Members’ Manual basically applies to members use; and through interviews with the volunteers, it was discovered that the PEG Advisory committee members interpreted the Members Manual so as to suit each volunteer’s agenda - basically sans PEG Board of Directors confirmation - throughout the past two years. (Facts 5, 8)

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Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F16: The PEG BOD failed to present a budget to the County by March 1, 2009 for the fiscal year 2009/2010. Therefore the County did not budget and has not contributed $5,000 to PEG TV8 in fiscal year 2009/2010. (Fact 5)

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R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R10: PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16)

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F17: Based on testimony received from multiple sources including PEG BOD members, the PEG BOD was not focused on running the PEG Channel and essentially abdicated management of the station and its programming to the PEG Advisory Committee volunteers. In a recent attempt to regain control over the Advisory Committee’s programming practices, the PEG BOD instituted a “thirty (30) day trial period” during which a request was made that prime time hours be extended by 2 hours from the then 7PM - 10PM to new hours 5PM – 10PM and reserved for original local programming during the prime time hours [as is stated in the Members’ Manual]. The station manager was also asked to limit imported programs to no more Budget and Finance Committee than two repeated showings during this trial period. As a result of this direction from the PEG BOD, the station manager revolted and arbitrarily edited the Members’ Manual posted on Wiki website proclaiming “Freedom of Speech” was being hi-jacked by the PEG BOD; and on the weekend of January 10, 2010, without proper identification, the manager produced a bright red bold print notice to run all hours throughout the day and evening claiming that the PEG BOD had imposed “soft censorship” by selectively omitting and thereby banning three specifically titled programs from airing, posted each PEG BOD members’ personal email address, and a plea for all concerned to attend the next PEG BOD meeting to protest. (Facts 5, 6, 7, 8, 9, 24, 25, 26)

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R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F18: The B & F Committee personally observed PEG TV8 on January 10, 2010 and subsequently verified by personal interviews with some Advisory Committee volunteer(s), that the volunteers felt the PEG BOD had exercised a form of “censorship” during the 30 days prior and insisted the public had a “right to know”. As a consequence of the station manager’s actions as stated above, all volunteers were locked out of PEG TV8 by the PEG BOD. (Facts 25, 26, 27)

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F19: The actions taken by the PEG BOD in December 2009 and January 2010 potentially limited the public’s access to the Channel and may need review by a knowledgeable independent legal representative. (Facts 10, 25, 26, 27)

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Related Recommendations (4)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R16: One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19)

R17: The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19)

R18: The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19)

F20: Under testimony each PEG board director readily admitted during an interview with the B & F Committee to being lax in station management oversight and failing to exert adequate supervision and direction over the station volunteers, most of whom are members of the Advisory Committee. The PEG BOD, by persistent inaction, own responsibility for the success or failure of the PEG TV8 Channel and allowing the “maximum public benefit and use of the Channel” to slip from better to worse. (Facts 7, 13, 24)

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Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R21: Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20)

F21: Testimony received subsequent to the lockout indicated all previous volunteers and/or Advisory Committee members are no longer participating in the current operation of PEG TV8. (Facts 27, 28)

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R7: The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21)

F22: On or about February 23, 2010, a new set of By-laws was drafted by a Budget and Finance Committee newly formed By-laws Committee. This set states in part, that it will be applicable to “any advisory committee or other committees as developed”, thereby voiding the past volunteer Advisory Committee By- laws. (Facts 27, 28)

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R4: The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22)

F23: Salaries were paid in the past. The current approach of using volunteer help only has not proved successful to the operation of PEG TV8. Based on testimony, and the B & F Committee’s observation, in order to improve the professionalism of PEG TV8, it is necessary to pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. Part time paid staff members would also improve the station dramatically. (Fact 17)

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R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R12: The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23)

R13: The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23)

F24: Via testimony received, the Budget and Finance Committee discovered, that the PEG BOD has taken on new volunteers since our investigation began; one of whom has been selected to perform as an "acting" station manger - and as such participate in the formulation of new PEG BOD By- laws, policies and procedures, job descriptions, and a member's manual. Testimony also disclosed that, as with past volunteers, the new "acting" station manager had no knowledge whatsoever of the 2007 Agreement under which PEG TV 8 operates. Indeed the new "acting" station manager had not even received a copy of the 2007 Agreement from the continuing PEG BOD who recently nominated this “acting” station manager. This Budget and Finance committee concludes that the PEG BOD has either arbitrarily abrogated the 2007 Agreement or continues to ignore the importance of the charter agreement under which all PEG TV 8 activities are governed. (Fact 28)

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Related Recommendations (2)

R9: (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16,

R19: The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24)

F25: Both the County of Lake and the City of Clearlake have Worker’s Compensation and Employer Liability via Alliant Insurance Services Inc. (Fact 29)

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F26: Both the County of Lake and the City of Clearlake have a Volunteer Program with a specific rule that volunteers must complete a Volunteers Application and be designated and registered and the name of each volunteer must appear on a log maintained by the agencies to be eligible for coverage. No lists of designated and registered volunteers were provided to the Committee either by the County of Lake or the City of Budget and Finance Committee Clearlake. (Fact 30)

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F27: The B&F Committee could not determine or find any documentation to show that PEG TV8 volunteers were covered for Auto Insurance as required in the 2007 Agreement. In general the 2007 Agreement is ambiguous as to Volunteer insurance coverage of all categories. (Fact 31, 32)

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F32: Recommendations: R 1. The Lakeport City Council reconsider it’s participation in the 2007 Agreement and join the County and the City of Clearlake in ensuring that all of the Lake County residents receive the quality programming that PEG TV 8 could provide. This will ensure that Lakeport events and citizens receive the same treatment as others. (F1) R 2. The PEG BOD immediately fill one of the current two vacancies on the board with a representative from Mediacom (the cable provider) as required per the 2007 Agreement Recital #2. At PEG BOD meetings, the cable representative may elect to abstain (as may any PEG BOD member) from discussion and vote on matters conflicting with employment or issues that could be construed a personal gain. (F2) R 3. The PEG BOD assume responsibility to be fully familiar with all administrative and management duties necessary for the successful operation of a PEG channel; discern the number of and type or titles of jobs needed to fulfill the successful operation of PEG TV8 and follow up with specific written job descriptions for each separate position to be filled - either by paid staff or a volunteer. In addition and relative to the written job descriptions, the PEG BOD create a form of Acknowledgment and Receipt of Job Descriptions which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Job Descriptions. The signed copy to be maintained in personnel files. (F3, F4, F6, F14) R 4. The proposed By-laws reflect (but not limited to) the following: 1. the PEG TV8 mission and purpose; 2. specifically describe the PEG BOD members’ roles and fiduciary Budget and Finance Committee responsibilities to those interested and/or who could be affected by their actions; 3. provide for a quorum to be present to conduct the business of the PEG BOD or any other committee established; 4. provide for the PEG BOD to practice fiscal accountability, provide for timely approval of the annual budget, and an audit of PEG TV 8 financials to be conducted by an “outside” source; 5. require formulation of policies related to equipment/supply purchase contracts from public or private resources including recording the 3 competitive bids required as part of the minutes; 6. ensure the organization has sufficient resources, including people, funding and other assets; 7. include a clause that assures station management support; 8. include a clause regarding timely posting of notice of location and date and time of PEG BOD meetings and other committees as appropriate; 9. provide that rules of conduct at meetings be held following specific rules of order i.e. Robert’s Rules of Order, and the Brown Act; 10. stipulate the By-laws will be governed by the 2007 Agreement for Operation of the Local PEG Television Channel; 11. and finally to provide for the PEG BOD to regularly assess its own performance. (F5, F22) R 5. The PEG BOD become educated regarding technical procedures and the legal regulations required to produce and broadcast local and import programming on PEG TV8, and accordingly create written policies and guidelines to be followed by all staff, members and volunteers upon submission of programs for airing. This could involve revision or amendments to the existing Members’ Manual or the creation of a wholly new Programming Policies and Procedures Guidelines - which could include appropriate portions from the existing Members’ Manual. In addition and relative to the written Programming Policies and Procedures Guidelines, the PEG BOD create a form of Acknowledgment and Receipt Budget and Finance Committee of Programming Policies and Procedures Guidelines which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the Programming Policies and Procedures Guidelines. The signed copy to be maintained in personnel files. (F7, F8, F14) R 6. The PEG BOD hold board meetings in a convenient location and at a reasonable hour to allow for public/community attendance and input. (F9) R 7. The PEG BOD take back control and sweep broom clean; form an entirely new Advisory Committee of community volunteers who will be committed to recognize the PEG BOD’s inherent authority; recruit volunteers who posses either or both the requisite technical experience to operate and teach how to operate/use all production equipment and/or the desire and most importantly the willingness to monitor community calendars of local events; reach out to the many varied local organizations with an offer to attend and tape the local functions for broadcasting - or to teach local organization members how to do so - in order to guarantee programming diversification. (F8, F13, F14, F21) R 8. The City of Clearlake not pay any bill without the documented approval of the PEG BOD. (F9) R 9. A professional fair market evaluation be performed by an outside commercial real estate appraiser of the “space” the City provided PEG TV8 for the operation of the PEG station in lieu of the City’s $5000 cash obligation in the fiscal years 2008/2009 and 2009/2010; and, any shortfall between the fair market value of that space and the $5000 cash obligation in those fiscal years be met retroactively. (F11, F16) R 10. PEG TV8 pay rent to the City of Clearlake based on the fair market evaluation for the “space” the City provides to PEG TV8 for the operation of the station. This payment be done retroactively for the same years as R9. (F11, F16) R 11. An audit of PEG TV8 financials be conducted by an outside Certified Public Accountant no less than every second year. (F11) R 12. The PEG BOD create a budget including paid staff that shows a year over year growth as the station increases it programming, pledges and fund Budget and Finance Committee drives to raise membership and income be put in place. A 5 year Lake County PEG Channel (TV8) Strategic Plan with specific growth steps (capability, staffing, income) be created. (F4, F23) R 13. The PEG BOD hire and pay a technically experienced Station Manager who will then have a vested interest and will be responsible and dedicated to the success of the PEG channel. The Station Manager then hire the appropriate staff and recruit committed volunteers with the approval of the PEG BOD. (F23) R 14. The PEG BOD follow the long ignored direction of the 2007 Agreement and immediately apply to implement the Pubic Utilities Code Section 5870(n) franchise fee available to PEG TV8 for the specific purpose of funding support and allowable expenses for operation of the channel. Until this is accomplished, obtain part of the $400,000 in Franchise Fees from each public agency who are members of the 2007 Agreement to fund the budget for TV8. (F10, F12) R 15. The PEG BOD verify that either or both the City of Clearlake and the County of Lake have PEG TV8 and/or PEG TV8 staff and volunteers as designated and registered insureds under their blanket Worker’s Compensation Insurance, Commercial General Liability Insurance and Automobile Liability Insurance policies. If not so designated and registered in any or all of these policies, PEG TV8 independently and immediately seek to procure these coverages as prescribed for within the 2007 Agreement and signed by the parties; establish a process so all volunteers are properly covered both within and without the PEG TV 8 station, i.e. traveling to and from and while taping community events. Then the PEG BOD ensure that personnel folders on each volunteer include a copy of said coverage. (F13) R 16. One of the parties to the 2007 Agreement (either the County or the City of Clearlake) procure legal counsel fully familiar and experienced with Public Access Television rules, regulations and issues to support the PEG BOD as it moves forward. (F19, F19) R 17. The PEG BOD review any major changes limiting public access to PEG TV 8 with legal counsel. (F19) R 18. The PEG BOD run the 2007 Agreement and any and all amended and/or Budget and Finance Committee newly created By-laws, rules, and policies past legal counsel to be sure “following mandated time, manner, and/or place” and any other regulations imposed by law on PEG channels and not placing the PEG TV 8 channel and/or the PEG BOD under any liability for wrong doing. (F19) R 19. The PEG BOD and all volunteers become absolutely familiar with the 2007 Agreement and strictly adhere to the governing terms of this contract. In addition and relative to the written 2007 Agreement, the PEG BOD create a form of Acknowledgment and Receipt of the 2007 Agreement which is to be dated and signed by each director and all current and newly hired and/or volunteer help acknowledging receipt of a copy and that have read and understood the 2007 Agreement. The signed copy to be maintained in personnel files. (F24) R 20. The Board of Supervisors require an in depth report every 6 months from the PEG BOD and the Station Manager on the progress against that Lake County PEG Channel (TV8) Strategic Plan. (F4) R 21. Each PEG BOD member regularly make an in depth review and evaluate the individual’s and the collective performance of the members on the PEG Board on the basis of specific roles including executive relations with the staff and volunteers, leadership in the organization, program planning and implementation and management of the station, its financial health and its personnel- with the overwhelming goal to provide the “maximum public benefit and use of the Channel”. (F3, F11, F15, F16, F17, F20) R 22. The 2010/2011 Grand Jury perform an oversight of PEG TV8 to ensure the operation of PEG TV8 is proper. (F11) Agency/Department(s) Required to Respond: • City Council of Lakeport (90 days) (R1, R14, R15). • City Council of Clearlake (90 days) (R8, R9, R10, R11, R14, R15, R16). • Board of Supervisors (90 days) (R2, R4, R6, R9, R11, R12, R14, R15, R16, R20). • PEG TV 8 Channel Board of Directors (60 days) (R2, R3, R4, R5, R6, R7, R10, R11, R12, R13, R14, R15, R16, R17, R18, R19, R20, R21).

📋Lake County Redevelopment Agency Oversight

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Findings & Recommendations 4 findings

F1: The Agency is in the process of updating the plan to cover the next five years. Government Services Committee

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R1: Continue to gather public input and prepare the 2012-2017 Redevelopment plan. (F1)

F2: Due to the sluggish economy tax revenues this year are static and will probably diminish next year hampering some proposed projects.

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Related Recommendations (1)

R2: Continue to manage the proposed developments in a fiscally responsible manner. (F2, F3)

F3: The Lake County Redevelopment Agency appears to be fiscally sound.

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Related Recommendations (1)

R2: Continue to manage the proposed developments in a fiscally responsible manner. (F2, F3)

F4: The staff has provided brochures, website information, public town hall meetings, and also a willingness to meet with interested community members to inform residents about the Agency. Recommendations:

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Related Recommendations (2)

R3: Continue to make the public aware of the activities and purpose of Redevelopment. (F4)

R4: The 2010-2011 Grand Jury visit the Agency with an annual oversight. (F4) Agency/Department(s) Required to Respond: • Lake County Redevelopment Agency (90 days) Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee

📋Lake County Sheriff Complaint

2 pages 5 findings 2 recommendations

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Findings & Recommendations 5 findings

F1: The LCSO did not comply with the LEOSA and did not give this retired deputy his ID badge.

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Related Recommendations (1)

R2: It is recommended that the Lake County Sheriff’s Office be timely in its issuance of identification cards to entitled deputies. (F1, F4) Agency/Department(s) Required to Respond: • Lake County Sheriff, within 90 days. 2009-2010 Lake County Civil Grand Jury

F2: The 2007-2008 Grand Jury investigated this complaint last year and its

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Related Recommendations (1)

R1: It is recommended that the Lake County Sheriff’s Office respond to Grand Jury requests in a timelier manner. (F2, F3)

F3: Numerous calls from the Grand Jury to the LCSO contact person received no response.

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Related Recommendations (1)

R1: It is recommended that the Lake County Sheriff’s Office respond to Grand Jury requests in a timelier manner. (F2, F3)

F4: The complainant was given a verbal apology in late February, 2010, by LCSO and told his identification badge was in the mail. Two and a half weeks later, it still had not arrived.

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Related Recommendations (1)

R2: It is recommended that the Lake County Sheriff’s Office be timely in its issuance of identification cards to entitled deputies. (F1, F4) Agency/Department(s) Required to Respond: • Lake County Sheriff, within 90 days. 2009-2010 Lake County Civil Grand Jury

F5: The issue is now resolved to the complainant’s satisfaction.

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📋Lake County Vector Control District Oversight

6 pages 10 findings 9 recommendations

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Findings & Recommendations 10 findings

F1: The BOD and the District Manager know what needs to be done to properly manage the district, but without a written strategic plan, the public cannot view and understand the LCVCD plan vs progress. Example: What are the projected goals for 1, 5 and 10 years?

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Related Recommendations (2)

R1: The Board of Directors (BOD) and District Manager develop a written strategic plan. (F1)

R2: The selection process for appointing BOD members be included in the strategic plan and provided to the agencies that do the appointments. i.e.: Directors should have good management skills, not be of single focus and must understand the mission statement and strategic plan of LCVCD. (F1,F2)

F2: The monthly report to the BOD does not include the following fiscal information: a. The projected revenue for the fiscal year versus actual received. b. The actual cash balance in the bank. c. Year to Date (YTD) costs compared to YTD budget.

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Related Recommendations (2)

R2: The selection process for appointing BOD members be included in the strategic plan and provided to the agencies that do the appointments. i.e.: Directors should have good management skills, not be of single focus and must understand the mission statement and strategic plan of LCVCD. (F1,F2)

R8: The LCVCD Board of Directors review and approve the updated policy and procedures manuals and update financial software as soon as possible. (F2,F6)

F3: The independent audit is not satisfactory for public understanding. Planning and Public Works Committee

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Related Recommendations (2)

R3: Fiscal monthly reports should provide to the BOD, information on the revenue status for year to date (YTD) and projected year end versus budget. (F3)

R4: Add to the Monthly Report to the Board of Directors a page showing YTD costs compared to YTD budget and a variance % for each account. Highlight any significant overages or underages and be prepared to explain. If not already established spread the annual budget by month for each account to allow the YTD comparison. (F3,F4)

F4: The Board of Directors has no way of checking any possible financial accounting errors or follow the YTD budget with the current software.

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Related Recommendations (2)

R4: Add to the Monthly Report to the Board of Directors a page showing YTD costs compared to YTD budget and a variance % for each account. Highlight any significant overages or underages and be prepared to explain. If not already established spread the annual budget by month for each account to allow the YTD comparison. (F3,F4)

R5: Contract with a Certified Public Accountant and do an audit so that the LCVCD Board of Directors gets an audit report that does determine and express an opinion on the District’s compliance with laws, regulations, Planning and Public Works Committee contracts, and grants as well as provide assurance on the internal control over financial reporting and accurate statements on capital expenses. (F4,F5)

F5: The manager for LCVCD has had little formal bookkeeping education.

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Related Recommendations (3)

R5: Contract with a Certified Public Accountant and do an audit so that the LCVCD Board of Directors gets an audit report that does determine and express an opinion on the District’s compliance with laws, regulations, Planning and Public Works Committee contracts, and grants as well as provide assurance on the internal control over financial reporting and accurate statements on capital expenses. (F4,F5)

R6: Arrange for the District Manager to receive Financial Management Training. (F5,F6)

R7: Obtain better bookkeeping software that will provide more suitable financial tracking capability. (F5,F6)

F6: Current financial software at LCVCD is not current to established accounting standards.

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Related Recommendations (3)

R6: Arrange for the District Manager to receive Financial Management Training. (F5,F6)

R7: Obtain better bookkeeping software that will provide more suitable financial tracking capability. (F5,F6)

R8: The LCVCD Board of Directors review and approve the updated policy and procedures manuals and update financial software as soon as possible. (F2,F6)

F7: The main office and shop appeared to be organized, clean and the safe.

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F8: One Vehicle, the SUV, is not used for pesticide transport. It is used by the district to transport people and equipment that will interact with the public without the possibility of pesticide contamination of the public.

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F9: The laboratory building is in need of repairs or replacement.

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Related Recommendations (1)

R9: Make necessary repairs to insure the safety of the laboratory building and compliance with current law. (F9) Agency/Department(s) Required to Respond: • Lake County Vector Control District Board of Directors (90 days) Planning and Public Works Committee

F10: LCVCD applied for and received funds from Emergency West Nile Virus Surveillance grants to support West Nile Virus work. Those funds purchased two spray trucks necessary for surveillance and treatment. Two more spray trucks were also purchased with grants from the United States Department of Agriculture.

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📋Lakeport City Council Oversight

2 pages 4 findings 1 recommendations

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Findings & Recommendations 4 findings

F1: The Lakeport City Council meeting was professional and informative.

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F2: The public may be interested in the financial position of the City.

Page 128

Related Recommendations (1)

R1: Provide supporting and financial documents for the public at City Council meetings. (F2, 3) Agency/Department(s) Required to Respond: • Lakeport City Council (90 days)

F3: Supporting documents containing staff reports would be helpful to the public.

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F4: A new City Manager has been hired.

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📋Lakeport City Parks Oversight

19 pages 20 findings 8 recommendations

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Findings & Recommendations 20 findings

F1: Library Park is a draw for tourists and residents alike looking for a nice place for a picnic or a place to launch a boat. 2009-2010 Lake County Civil Grand Jury Public Services Committee

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F2: Because there is no fee for using Library Park or boat launching tourists tend to use the park and spend money at the businesses around the park.

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F3: The park lighting is very dim with many shadows. It is not economically feasible at this time to replace the sodium lights with solar lights which would be brighter.

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Related Recommendations (1)

R1: Investigate new lighting technology, including solar. (F3)

F4: The single woman’s bathroom door does not offer privacy to a user because the door cannot be secured.

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Related Recommendations (1)

R2: Install handles inside single restrooms near First Street to pull the doors shut. (F4)

F5: The toddler enclosure has a latch that keeps toddlers from entering or leaving without supervision.

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F6: The shower and drinking fountain near First Street were inoperable.

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Related Recommendations (1)

R3: Repair drinking fountain and shower. (F6)

F7: The sprinklers are set to turn on between midnight and 4 A.M. Nighttime use of sprinklers saves water because less water evaporates due to the sun. Water from the lake may clog the filters and plug the sprinklers. Water from the lake is metered and payment is made to Yolo County.

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F8: The fountain was removed because it became a health hazard.

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Related Recommendations (1)

R4: Improve appearance of the concrete and tile enclosure by planting flowers or other plants year round. (F8, F9) ❖ Westshore Pool 250 Lange Street, Lakeport Facts: • The park is ½ acre with a swimming pool and a picnic area. • The pool is located at Clearlake High School just past Terrace Middle School. • A large concrete area surrounds the pool. • The pool is open from late June through late August. • Public swimming is available Monday thru Friday, 12 PM- 5 PM. • The pool was covered when the committee was there. 2009-2010 Lake County Civil Grand Jury Public Services Committee • The entire park is fenced with chain-link fencing. • A fee is charged to use the park. The following fees were applicable on the date the committee toured: o $3.00 for 2 yrs. to 17 yrs. old o $4.00 for 18 yrs. & older o $2.00 for seniors o Buy 8 entries, get 2 free $24 (save $6) 2 yrs. to 17 yrs. ▪ $32 (save $8) 18 yrs. & older ▪ $16 (save $4) seniors • A U.S. certified swim team, the Lake County Channel Cats, practices at the pool. • Swimming lessons are available for a $60.00 fee. • Picnic area is within the fenced-in area. • The picnic area has tables and benches. • The picnic area does not have any barbeque pits. • End-of-school parties are held at the pool. • Pool staffing is seasonal and part-time. • All pool staff must have CPR certification and be trained in First Aid.

F9: The concrete and tile enclosure was unsightly.

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Related Recommendations (1)

R4: Improve appearance of the concrete and tile enclosure by planting flowers or other plants year round. (F8, F9) ❖ Westshore Pool 250 Lange Street, Lakeport Facts: • The park is ½ acre with a swimming pool and a picnic area. • The pool is located at Clearlake High School just past Terrace Middle School. • A large concrete area surrounds the pool. • The pool is open from late June through late August. • Public swimming is available Monday thru Friday, 12 PM- 5 PM. • The pool was covered when the committee was there. 2009-2010 Lake County Civil Grand Jury Public Services Committee • The entire park is fenced with chain-link fencing. • A fee is charged to use the park. The following fees were applicable on the date the committee toured: o $3.00 for 2 yrs. to 17 yrs. old o $4.00 for 18 yrs. & older o $2.00 for seniors o Buy 8 entries, get 2 free $24 (save $6) 2 yrs. to 17 yrs. ▪ $32 (save $8) 18 yrs. & older ▪ $16 (save $4) seniors • A U.S. certified swim team, the Lake County Channel Cats, practices at the pool. • Swimming lessons are available for a $60.00 fee. • Picnic area is within the fenced-in area. • The picnic area has tables and benches. • The picnic area does not have any barbeque pits. • End-of-school parties are held at the pool. • Pool staffing is seasonal and part-time. • All pool staff must have CPR certification and be trained in First Aid.

F10: Overall, the park was clean and family oriented.

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F11: One must pay to use the picnic area because the picnic area is within the fenced-in area.

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F12: The pool was closed when the committee visited; therefore, the committee was only able to view the pool and picnic area through the fence.

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F13: The high school used to have a swim team that used the pool and contributed to the park system by paying rent.

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Related Recommendations (1)

R5: Encourage the high school and college to have swim classes at the Westshore Pool again. (F13, F14, F15) ❖ Westside Community Park Parallel Drive and Westside Park Road, Lakeport 2009-2010 Lake County Civil Grand Jury Public Services Committee Facts: • The park is 55 acres and is under development. • The Master Plan for the Westside Community Park is available at city hall. • The parking area is paved with lined parking spaces. • There are designated handicapped parking spaces. • The park is fenced and well landscaped. • There are two well-kept soccer fields with goals. • The park has many benches. • There is a water fountain. • There are ample trashcans. • There is one handicapped accessible porta-potty that is always at the park. Additional porta-potties are brought in for special occasions such as soccer games. • When the Soccer League asks for additional porta-potties, the league pays for them. • The wash-up facility on the side of the porta-potty has soap. • Areas are under construction. (See attached master plan.) • On a subsequent visit, there was trash scattered around.

F14: Mendocino College had swim classes at the pool and paid rent at one time.

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Related Recommendations (2)

R5: Encourage the high school and college to have swim classes at the Westshore Pool again. (F13, F14, F15) ❖ Westside Community Park Parallel Drive and Westside Park Road, Lakeport 2009-2010 Lake County Civil Grand Jury Public Services Committee Facts: • The park is 55 acres and is under development. • The Master Plan for the Westside Community Park is available at city hall. • The parking area is paved with lined parking spaces. • There are designated handicapped parking spaces. • The park is fenced and well landscaped. • There are two well-kept soccer fields with goals. • The park has many benches. • There is a water fountain. • There are ample trashcans. • There is one handicapped accessible porta-potty that is always at the park. Additional porta-potties are brought in for special occasions such as soccer games. • When the Soccer League asks for additional porta-potties, the league pays for them. • The wash-up facility on the side of the porta-potty has soap. • Areas are under construction. (See attached master plan.) • On a subsequent visit, there was trash scattered around.

R8: Creation of an overall Project log including history, decisions made and total costs. (F14, F15) Agency/Department(s) Required to Respond: • Lake County Library via Board of Supervisors (90 days) • Community Development Department, Building Division via Board of Supervisors (90 days) 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury 2009-2010 Lake County Civil Grand Second Street Kelseyville, CA 95451 Contact information: Telephone 707-279-8619 Fax 707-279-1983 To obtain complaint forms online: http://www.co.lake.ca.us/Residents/Law/complaints.htm 2009-2010 Lake County Civil Grand Jury

F15: High school and college swim classes might provide a larger number of summer staff candidates.

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Related Recommendations (2)

R5: Encourage the high school and college to have swim classes at the Westshore Pool again. (F13, F14, F15) ❖ Westside Community Park Parallel Drive and Westside Park Road, Lakeport 2009-2010 Lake County Civil Grand Jury Public Services Committee Facts: • The park is 55 acres and is under development. • The Master Plan for the Westside Community Park is available at city hall. • The parking area is paved with lined parking spaces. • There are designated handicapped parking spaces. • The park is fenced and well landscaped. • There are two well-kept soccer fields with goals. • The park has many benches. • There is a water fountain. • There are ample trashcans. • There is one handicapped accessible porta-potty that is always at the park. Additional porta-potties are brought in for special occasions such as soccer games. • When the Soccer League asks for additional porta-potties, the league pays for them. • The wash-up facility on the side of the porta-potty has soap. • Areas are under construction. (See attached master plan.) • On a subsequent visit, there was trash scattered around.

R8: Creation of an overall Project log including history, decisions made and total costs. (F14, F15) Agency/Department(s) Required to Respond: • Lake County Library via Board of Supervisors (90 days) • Community Development Department, Building Division via Board of Supervisors (90 days) 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury 2009-2010 Lake County Civil Grand Second Street Kelseyville, CA 95451 Contact information: Telephone 707-279-8619 Fax 707-279-1983 To obtain complaint forms online: http://www.co.lake.ca.us/Residents/Law/complaints.htm 2009-2010 Lake County Civil Grand Jury

F16: Most of the fee for swimming lessons goes to the swimming instructors.

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Related Recommendations (1)

R7: Submit schematic floor plan to The County Building Division of the Community Development Department for a preliminary plan check. (F16)

F17: The park has much potential and is a beautiful family oriented park.

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F18: Development of Westside Community Park is contingent on grant funding becoming available.

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F19: The local community uses the park.

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Related Recommendations (1)

R6: Ensure a dog park and exercise area becomes a permanent part of the park (F19). Agency/Department(s) Required to Respond: • Lakeport Public Works Department via Lakeport City Council (90 days) 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lake Transit Authority Oversight Summary: Lake Transit Authority (LTA) is a Joint Powers Authority between Lake County and the cities of Lakeport and Clearlake created in 1996 to provide public transit services in Lake County. LTA contracts with a private company to provide bus service to the county, including dial-a-ride and fixed/flex route service. All buses are equipped with wheelchair lifts and bicycle racks. Background: In July 2007, the county contracted with Paratransit, a private, non-profit company, to provide bus service covering Lake County and providing transportation to Calistoga and Ukiah, in Napa and Mendocino Counties respectively. The current contract with Paratransit expires June 30, 2010. The agreement provides LTA with the option to extend the agreement for up to five one-year terms. The option term pricing is negotiable up to the percentage increase in the California Consumer Price Index (CPI) for the most recently concluded calendar year. In 2009, the CPI actually decreased 0.31%. Lake Transit Authority is required to apply for, accept and utilize funds from any source for public transit purposes, including Transportation Development Act Funds, State Transit Assistance Funds, and Section 18 Funds available through the Federal Transportation Act Methodology / Procedure: The Public Services Committee conducted an elective oversight of the Lake Transit Authority. The 2007-2008 Grand Jury last conducted an oversight in March 2008. Members of the 2009-2010 Grand Jury Public Services Committee rode two different bus routes within the county on August 12, 2009. Members of the committee also visited the Lake Transit facility in Lower Lake on September 2, 2009, where they met with Paratransit management personnel and were given further information regarding employees, training, shifts, routes, conditions of buses, etc. The committee attended Lake County/City Area Planning Council (APC) and LTA meetings in February and March of 2010. At the February meeting, the committee obtained the LTA quarterly report for 2009/10. Facts: • Paratransit agrees to comply with the CPI decrease and reduce its fixed monthly, hourly and shelter cleaning rates by 0.31%. • LTA passed an amendment to extend the contract with Paratransit for one year. 2009-2010 Lake County Civil Grand Jury Public Services Committee • LTA employs an independent contractor (LTA Transit Manager) to perform administrative tasks. • The contract with the independent contractor provides for part time administration for the 2009/10 fiscal year. (1200 hours estimated) • LTA Transit Manager duties include monitoring, evaluating, and recommending changes as needed to the transit services in Lake County. • As of March 2010, there are 22 service vehicles. This includes five small conversion vans, eight medium cutaway vans and nine large transit coaches. • Ridership for December 2009 was 24,939 riders. This number declined to 23,527 for January 2010. • The transit hub at Rays/Wal-Mart has issues with safety and security. Most of the problems occur between 3:00 pm and 7:00 pm after school hours. Occasional problems occur due to intoxicated riders. • Drivers are employed by Paratransit Services and belong to the Teamsters Union. • There are eight routes, with the most recent modification done in August 2009. • Multiple trips are made to Calistoga per day. • Multiple trips are made to Ukiah per day. • The buses have commercial advertising on the outside of the vehicles. LTA contracts with a private company to provide advertising services and splits the revenue 50/50. • There is a projected decline in advertising revenue of 22% for the 2010/2011 fiscal year. • Projected revenues are $1,640,922 and projected expenses are $2,025,379 resulting in a projected deficit of $384,457 for the 2010/2011 fiscal year. • Two used buses from Nevada County were obtained at no cost to be used in the Calistoga and Ukiah bus runs. • Plans to add fifteen to twenty shelters were discussed in March 2010. • The passengers deposit coins for the fare into an automatic receptacle. • The bus drivers call out the stops and the passengers can pull a cord to request a stop. • With prior arrangements, drivers pick up and drop off passengers at unmarked stops. • All fixed route service buses have special provisions for wheel chairs and motorized chairs; these chairs are fastened and secured so that they do not accidentally move. 2009-2010 Lake County Civil Grand Jury Public Services Committee • The buses observed by the committee members had security cameras. • New drivers have received training in Cardio Pulmonary Resuscitation (CPR). • Some sections of the routes were crowded while other sections had few or no riders. • There is a bus stop at the Lake County Correctional Facility, but no special after-hours transportation is provided to the facility.

F20: A fenced-in dog park and exercise area is nearby, owned by the city, but not part of the park. This area may have to be moved in the future.

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📋Main Court Holding Facility Oversight

4 pages 3 findings 2 recommendations

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Findings & Recommendations 3 findings

F1: Moving inmates unshackled up and down stairwells is a cumbersome, time- consuming and potentially dangerous task.

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Related Recommendations (2)

R1: The Public Safety Committee suggests that the Sheriff provide functional cameras in cells, staging areas, sally port and bridge to court house as funds become available. (F1)

R2: It is recommended that Buildings and Grounds perform appropriate inspections and insure sufficient maintenance of elevators keeping them in working condition at all times. (F1, F2, F3) Agency/Department(s) Required to Respond: • Lake County Sheriff (90 days) • Lake County Building and Grounds Department via the Lake County Board of Supervisors (90 days) 2009-2010 Lake County Civil Grand Jury Public Safety Committee 2009-2010 Lake County Civil Grand Jury

F2: Since the area that is now used for holding inmates served as Lake County’s main jail, it has seen more than four decades of constant use and maintenance is an ongoing concern. 2009-2010 Lake County Civil Grand Jury Public Safety Committee

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Related Recommendations (1)

R2: It is recommended that Buildings and Grounds perform appropriate inspections and insure sufficient maintenance of elevators keeping them in working condition at all times. (F1, F2, F3) Agency/Department(s) Required to Respond: • Lake County Sheriff (90 days) • Lake County Building and Grounds Department via the Lake County Board of Supervisors (90 days) 2009-2010 Lake County Civil Grand Jury Public Safety Committee 2009-2010 Lake County Civil Grand Jury

F3: MCHF cannot be ADA compliant if the elevator is not working.

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Related Recommendations (1)

R2: It is recommended that Buildings and Grounds perform appropriate inspections and insure sufficient maintenance of elevators keeping them in working condition at all times. (F1, F2, F3) Agency/Department(s) Required to Respond: • Lake County Sheriff (90 days) • Lake County Building and Grounds Department via the Lake County Board of Supervisors (90 days) 2009-2010 Lake County Civil Grand Jury Public Safety Committee 2009-2010 Lake County Civil Grand Jury

📋Mental Health Department Oversight

6 pages 6 findings 6 recommendations

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Findings & Recommendations 6 findings

F1: The 2008/2009 Lake County Civil Grand Jury oversight report showed the LCMHD to be in arrears to private vendors, the County and the State for large amounts. LCMHD management has taken steps to alleviate this problem. Currently the vendor debt is satisfied and the debt to the County is in the form of loans with a structured payment plan. At the time of the oversight, the debt owed to the State of $700,000 was being disputed.

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Related Recommendations (1)

R1: LCMHD management continue to work with the Lake County Administrator to keep the LCMHD financially healthy. (F1)

F2: In 2006, LCMHD management started a series of steps to correct the errors in billing to the State by installing a new computer billing program and instructing in the correct way to bill the State. A new position of Financial Director now oversees all accounting functions in the LCMHD.

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Related Recommendations (1)

R2: All computer programs within the LCMHD be periodically monitored for required performance and update as needed by qualified Information Technology personnel. (F2)

F3: Management’s failure to take any disciplinary action for making a $4 million mistake over several years sets a bad example for the rest of the employees.

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Related Recommendations (1)

R3: Disciplinary action be taken for serious errors in judgment costing the County millions of dollars. (F3)

F4: Lake County job descriptions include no educational requirements in accounting for even senior accounting positions. The only requirements for accounting and computer technology positions are one to two years of job experience. This is insufficient for the complexity of the job. Health and Human Services Committee

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Related Recommendations (1)

R4: The Board of Supervisors revise County job descriptions for senior accounting positions to include appropriate educational requirements. (F4)

F5: Severe financial straits have required the LCMHD management to eliminate staff positions, vacate rented offices and move staff into less desirable offices. This has resulted in a severe morale problem for LCMHD employees.

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Related Recommendations (1)

R5: LCMHD management conduct staff meetings to inform all employees of the current financial status of the Department, the steps being taken to improve the situation and the possible length of time it will take to make the improvements. Let employees know this has been a stressful time for all employees including management. (F5)

F6: Under sworn testimony before the Lake County Grand Jury, employees expressed many concerns that they feel are not being addressed by LCMHD management.

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Related Recommendations (1)

R6: Hire an outside professional consultant to investigate the concerns expressed by employees and to facilitate a program that allows for better communication between management and employees. (F6) Agency/Department(s) Required to Respond: • Mental Health Director via Board of Supervisors (90 days) Health and Human Services Committee

📋Public Defender Oversight

14 pages 14 findings 9 recommendations

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Findings & Recommendations 14 findings

F1: Reports from the contractor (LLDS) are oral to the Lake County Public Defender Oversight Committee.

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Related Recommendations (1)

R1: Revise by-laws of the Lake County Public Defender Oversight Committee to require all reports to be in writing at specific intervals (monthly, quarterly) for review. (F1, 2)

F2: Annual recommendations from the LCPD Oversight Committee are supported by personal opinions and not by verified factual written documentation.

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F3: New standardized reporting forms were used by LLDS in December 2009 and January 2010.

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Related Recommendations (1)

R3: Review the existing contract with LLDS for compliance of contractor and subcontractors in provision of mandated services. (F3, 4, 5, 6, 7, 8)

F4: Evaluation criteria for subcontractors have now been submitted to the CAO staff by LLDS.

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F5: LLDS does not supply written reports of jail visits by subcontracting attorneys.

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F6: The County has not requested or received any financial statements from LLDS.

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F7: Some members of the BOS stated they know little about the PD performance. Government Services Committee

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Related Recommendations (2)

R2: Include written reports of the contractor’s performance with committee’s annual report to BOS. (F7)

R5: Rotate appointment of the BOS representatives on the Lake County Public Defender Oversight Committee annually. (F7, 11)

F8: Sections of the LLDS PD contract appear to need stricter oversight by County Administration to provide mandated Public Defender services.

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F9: Client/Attorney confusion exists in some courtrooms due to the Public Defenders speaking with their clients at arraignment without privacy, usually in the jury box. This was observed by the Government Services Committee during visits to the Superior Court sessions.

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Related Recommendations (1)

R4: Explore space arrangements that would accommodate private conferences between in-custody defendants and their attorneys. (F9, 10)

F10: A private room for attorney conferences with out-of-custody clients has been completed as suggested by prior Grand Jury reports.

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F11: The same members have been on the Oversight Committee since its inception in November 2005.

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Related Recommendations (1)

R6: Recruit new members of the LC PD Oversight Committee. (F11)

F12: Inmates can only reach their attorneys by telephone when there is a person to accept the call; therefore, no messages can be left.

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Related Recommendations (1)

R7: Require contractor LLDS provide a central answering service to guarantee phone access to Public Defenders for inmates. (F12)

F13: Phone numbers of bail bondsmen and public defenders are posted in a manner that inmates cannot easily see.

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Related Recommendations (1)

R8: Post current phone numbers of attorneys and bail bondsmen in convenient locations near the phones. (F13) Government Services Committee

F14: Some CA counties have a Department of Public Defender.

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Related Recommendations (1)

R9: Explore the feasibility of creating a Lake County Office of Public Defender. (F14) Agency/Department(s) Required to Respond: • Lake County Sheriff (90 days) • Board of Supervisors (90 days) *Key to performance graphs The attached graphs illustrate the number of attorneys contracted for a particular month (range 9 – 13) listed across the bottom of each month’s graph. Each bar shows the percentage of required data showing timeliness of contacts and/or adequacy of reports for each attorney (Range 0 – 1). Government Services Committee Government Services Committee Government Services Committee Government Services Committee Government Services Committee Health and Human Services Committee Health and Human Services Committee Table of Contents • Oversights Alcohol and Other Drug Services 127 Adult Protective Services 129 Environmental Health 133 In-Home Supportive Services 137 Mental Health Department 141 Redbud Health Care District 147 Health and Human Services Committee

📋Redbud Health Care District Oversight

6 pages 8 findings 3 recommendations

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Findings & Recommendations 8 findings

F1: In Fiscal Year (FY) 2007-2008 ending June 30, 2008 RHCD received $824,989 from property taxes and $67,296 from investment income for a total of $892,285 in revenues.

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F2: RHCD had a total operating expense of $57,547 in FY 2007-2008.

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F3: The committee reviewed current and prior grants. See appendix.

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F4: In FY 2007-2008 RHCD issued a total of $711,293 in grants to the following organizations: a. Fire Protection Districts (3) b. High Schools (4) c. Redbud Hospital (2) d. Lake County Community Action Agency (3) Health and Human Services Committee e. Lake County Office of Education f. Hospice of Lake County g. Adult Day Care/Respite h. Shoes for Kids i. Lake Family Resource Center j. Community Care Management-Linkages k. Survivorship – Cancer l. Senior Centers (4)

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F5: Any carry-over funds from previous years depends on the number of grants and the amount of each grant. Some grants are dispersed over more than one FY.

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F6: All requests for funding assistance must be health or fitness focused and the grantees must be non-profit.

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F7: RHCD has access to experts for processing grants, for example, County Counsel, the County Health Department and county and city fire departments.

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F8: The Board has determined there is no need to solicit or advertise for grantees since RHCD is well known in the south county. The Board meetings are open to the public; meetings are held monthly on the fourth Thursday at 10:00 AM and notice is placed in the local newspapers the third week of every month.

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Additional Recommendations 3

Not linked to specific findings.

R1: Advertise funds are available for grants.

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R2: Publish requirements for grants.

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R3: Advertise widely for the Board of Directors elections. Agency/Department(s) Required to Respond: • Board of Directors of the Redbud Health Care District (90days) Health and Human Services Committee Planning and Public Works Committee Planning and Public Works Committee Table of Contents • Complaints Airport Safety and Facility 9-13 153 City of Clearlake 10-19 157 Lake County Code Enforcement 9-10 161 • Oversights Lake County Vector Control District 163 Water Resources Division 169 Planning and Public Works Committee

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📋Redbud Health Care District Oversight

4 pages 8 findings 3 recommendations

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Findings & Recommendations 8 findings

F1: In Fiscal Year (FY) 2007-2008 ending June 30, 2008 RHCD received $824,989 from property taxes and $67,296 from investment income for a total of $892,285 in revenues.

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F2: RHCD had a total operating expense of $57,547 in FY 2007-2008.

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F3: The committee reviewed current and prior grants. See appendix.

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F4: In FY 2007-2008 RHCD issued a total of $711,293 in grants to the following organizations: a. Fire Protection Districts (3) b. High Schools (4) c. Redbud Hospital (2) d. Lake County Community Action Agency (3) Health and Human Services Committee e. Lake County Office of Education f. Hospice of Lake County g. Adult Day Care/Respite h. Shoes for Kids i. Lake Family Resource Center j. Community Care Management-Linkages k. Survivorship – Cancer l. Senior Centers (4)

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F5: Any carry-over funds from previous years depends on the number of grants and the amount of each grant. Some grants are dispersed over more than one FY.

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F6: All requests for funding assistance must be health or fitness focused and the grantees must be non-profit.

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F7: RHCD has access to experts for processing grants, for example, County Counsel, the County Health Department and county and city fire departments.

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F8: The Board has determined there is no need to solicit or advertise for grantees since RHCD is well known in the south county. The Board meetings are open to the public; meetings are held monthly on the fourth Thursday at 10:00 AM and notice is placed in the local newspapers the third week of every month.

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Additional Recommendations 3

Not linked to specific findings.

R1: Advertise funds are available for grants.

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R2: Publish requirements for grants.

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R3: Advertise widely for the Board of Directors elections. Agency/Department(s) Required to Respond: • Board of Directors of the Redbud Health Care District (90days) Health and Human Services Committee

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📋Search and Rescue Oversight

2 pages 3 findings

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Findings & Recommendations 3 findings

F1: SAR is a competent, well-trained citizen group, invaluable to our underdeveloped and rural county.

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F2: Both the coordinators and the volunteers are strongly committed to community service.

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F3: K Corps is a select well-disciplined and dedicated group of local students.

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📋South Court Holding Facility Oversight

6 pages 7 findings 6 recommendations

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Findings & Recommendations 7 findings

F1: The general population cell is usable but in unsightly soiled condition.

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Related Recommendations (2)

R1: The Grand Jury recommends that County Building and Grounds Department or State Administrative Office of Courts (AOC) perform repair of ceiling leaks and restore wall paint, floors and lighting to original condition in general population cell. (F1)

R6: It is recommended that the Sheriff have California Occupational Safety and Health Administration inspect this facility. (F1, F2, F6, F7) Agency/Department(s) Required to Respond: • Lake County Sheriff – (90 days) (R2, R3, R5, R6) • Lake County Building and Grounds via the Board of Supervisors – (90 days) (R1, R4) 2009-2010 Lake County Civil Grand Jury Public Services Committee Public Services Committee Table of Contents • Complaints Water Drainage 9-11 251 • Oversights Clearlake City Parks 253 Lake County/City Area Planning Council 257 Lake County Parks 261 Lakeport City Parks 277 Lake Transit Authority 283 Middletown Public Library/Senior Center Project 287 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury

F2: The general population cell has areas where inmates are not visible during routine checks due to shape of window, poor lighting and architecture.

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Related Recommendations (3)

R2: The Grand Jury asks Sheriff’s Department to consider updating officers’ station, maximizing space, efficiency and lighting when funding allows. (F2)

R3: The Grand Jury recommends Sheriff’s Department request convex mirrors for appropriate placement. (F2, F3, F4, F5)

R6: It is recommended that the Sheriff have California Occupational Safety and Health Administration inspect this facility. (F1, F2, F6, F7) Agency/Department(s) Required to Respond: • Lake County Sheriff – (90 days) (R2, R3, R5, R6) • Lake County Building and Grounds via the Board of Supervisors – (90 days) (R1, R4) 2009-2010 Lake County Civil Grand Jury Public Services Committee Public Services Committee Table of Contents • Complaints Water Drainage 9-11 251 • Oversights Clearlake City Parks 253 Lake County/City Area Planning Council 257 Lake County Parks 261 Lakeport City Parks 277 Lake Transit Authority 283 Middletown Public Library/Senior Center Project 287 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury

F3: Cell door windows have limited, potentially unsafe views of cell interiors.

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Related Recommendations (1)

R3: The Grand Jury recommends Sheriff’s Department request convex mirrors for appropriate placement. (F2, F3, F4, F5)

F4: Utilizing the vans as temporary holding cells is costly and a higher safety risk.

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Related Recommendations (2)

R3: The Grand Jury recommends Sheriff’s Department request convex mirrors for appropriate placement. (F2, F3, F4, F5)

R5: Recognizing that court needs are important but inmate and officer safety is paramount, the Grand Jury recommends, again, that the Sheriff eliminate vehicles as holding areas. (F4)

F5: Due to the common Public Defender practice of seeing clients at the holding facility, there is often a waiting line for the single attorney-client room. Last minute consultations, even some initial consultations, must sometimes be conducted in the hallways: hearings are delayed and confidentiality is 2009-2010 Lake County Civil Grand Jury Public Safety Committee compromised. Staff indicated clients, staff and court become irritated with this situation.

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Related Recommendations (1)

R3: The Grand Jury recommends Sheriff’s Department request convex mirrors for appropriate placement. (F2, F3, F4, F5)

F6: Officers’ station presents crowded, undesirable working conditions.

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Related Recommendations (1)

R6: It is recommended that the Sheriff have California Occupational Safety and Health Administration inspect this facility. (F1, F2, F6, F7) Agency/Department(s) Required to Respond: • Lake County Sheriff – (90 days) (R2, R3, R5, R6) • Lake County Building and Grounds via the Board of Supervisors – (90 days) (R1, R4) 2009-2010 Lake County Civil Grand Jury Public Services Committee Public Services Committee Table of Contents • Complaints Water Drainage 9-11 251 • Oversights Clearlake City Parks 253 Lake County/City Area Planning Council 257 Lake County Parks 261 Lakeport City Parks 277 Lake Transit Authority 283 Middletown Public Library/Senior Center Project 287 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury

F7: The Folger Adams keys are ergonomically unsound.

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Related Recommendations (2)

R4: The Grand Jury recommends County Building and Grounds or AOC phase- out institutional Folger Adams locks and keys as soon as funds are available. (F7)

R6: It is recommended that the Sheriff have California Occupational Safety and Health Administration inspect this facility. (F1, F2, F6, F7) Agency/Department(s) Required to Respond: • Lake County Sheriff – (90 days) (R2, R3, R5, R6) • Lake County Building and Grounds via the Board of Supervisors – (90 days) (R1, R4) 2009-2010 Lake County Civil Grand Jury Public Services Committee Public Services Committee Table of Contents • Complaints Water Drainage 9-11 251 • Oversights Clearlake City Parks 253 Lake County/City Area Planning Council 257 Lake County Parks 261 Lakeport City Parks 277 Lake Transit Authority 283 Middletown Public Library/Senior Center Project 287 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury

📋Water Drainage Complaint

2 pages 2 findings

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Findings & Recommendations 2 findings

F1: Water drainage issues are not within the purview or expertise of the Grand Jury.

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F2: This complaint requires professional consultants with knowledge of surface water and sub-surface drainage.

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📋Water Drainage, Complaint 9-11

47 pages 20 findings 10 recommendations

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Findings & Recommendations 20 findings

F1: Water drainage issues are not within the purview or expertise of the Grand Jury.

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F2: This complaint requires professional consultants with knowledge of surface water and sub-surface drainage.

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F3: Due to California’s economic problems, state grant fund availability is questionable.

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Related Recommendations (1)

R1: Monitor availability of grant funding to repair and improve the park. (F3)

F4: The increased number of fishing tournaments can be also attributed to the strong marketing efforts of the Clear Lake Chamber of Commerce. 2009-2010 Lake County Civil Grand Jury Public Services Committee

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F5: Full time supervision of county jail workers is not available due to city park staff shortages.

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Related Recommendations (1)

R2: Schedule with the county jail for inmate use when staff is available to supervise. (F5) ❖ Austin Park 14077 Lakeshore Drive Facts: • Austin Park is 20 acres located on Lakeshore Drive. • The park offers swimming, tennis courts, a picnic area, a ball field, skateboarding park, playgrounds, and bathrooms. • There are trees, grass, metal and wooden tables and benches. • There are barbeque pits. • The park has two separate playgrounds. • One playground has three slides; the other has six swings and toddler toys: one plane and one train. • The skateboard/BMX park is closed during school hours. • The skateboard/BMX park is used for skateboarding or BMX riding on alternate days of the week. • A dozen young people were using the park for BMX riding during one visit. • Free helmets are available for kids who want to use the park facility. These are donated by the community and can be obtained from the Clearlake Police Department located across from the park. • Vandalism in the skate park is a larger problem during the spring and summer months. • The beach is large and rocky. • One bathroom had running water. • The inside of one bathroom had graffiti. • There is another unisex bathroom. • This area had been plagued by arson. • Lakeshore Drive runs through the park. 2009-2010 Lake County Civil Grand Jury Public Services Committee • The crosswalk is situated in the middle of a block. • The crosswalk is marked with signs. • A Hot Rod Show is scheduled for May 2010. • A small stage is available for performances.

F6: The remnants of graffiti old and new show the anti-graffiti effort is ongoing.

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F7: With the new style crosswalk signs, the crosswalk is now well marked during the daylight hours. This helps reduce accidents and near accidents.

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Related Recommendations (1)

R3: The crosswalk would benefit with better lighting for nighttime safety. (F7) ❖ Highlands Park 14365 Lakeshore Drive Facts: • The park is one acre on Lakeshore Drive. • The park has a picnic area. • The park has trees but no grass. • There is one barbeque pit. • There is one area defined by a stone wall with two benches that are very old. • There was one porta-potty that was clean.

F8: Free helmets are a great idea and reduce the number of injuries in the park.

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F9: The playground areas and the restrooms were clean and functioning.

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F10: The park gives a nice view of the lake.

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F11: The park has no children’s play area.

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F12: The pool was closed when the committee visited; therefore, the committee was only able to view the pool and picnic area through the fence.

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F13: The high school used to have a swim team that used the pool and contributed to the park system by paying rent.

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F14: Mendocino College had swim classes at the pool and paid rent at one time.

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F15: High school and college swim classes might provide a larger number of summer staff candidates.

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F16: Most of the fee for swimming lessons goes to the swimming instructors.

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F17: The park has much potential and is a beautiful family oriented park.

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F18: Development of Westside Community Park is contingent on grant funding becoming available.

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F19: The local community uses the park.

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F20: A fenced-in dog park and exercise area is nearby, owned by the city, but not part of the park. This area may have to be moved in the future.

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Additional Recommendations 7

Not linked to specific findings.

R4: Provide hand sanitizer or some kind of hand cleaner in bathrooms.

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R5: Make repairs at Lucerne Harbor children’s playground.

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R6: Provide at all county park children playgrounds signs that clearly state playground rules.

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R7: Give high priority to the renovation of Keeling Park’s bathrooms.

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R8: Make more county parks dog friendly.

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R9: Attend to the animal burrows at Upper Lake Park to make the park safer.

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R10: The tables in Highland Springs Recreation Area need to be removed and replaced. Agency/Department(s) Required to Respond: • Park and Recreation Division via the Board of Supervisors (90 days) • Lake County Water Resources via the Board of Directors of Lake County Watershed District (90 days) Bibliography: • Lake County, California. Lake County Public Services Department. Recreation Guide. California: MAX Design Studio, 2001. 2009-2010 Lake County Civil Grand Jury Public Services Committee 2009-2010 Lake County Civil Grand Jury Public Services Committee Lakeport City Parks Oversight Summary: Lakeport City Parks are a valuable part of the recreation for Lake County citizens and tourists. The City wants to avoid charging fees for the use of its parks even in the current economy. Library Park is well known for its Summer Concert in the Park series. Library Park also has other events including the seaplane event usually held in September. The biggest use of Library Park is mothers with small children. Westshore Pool is open to the public in the summertime only. Westside Community Park is still under development but is used now for soccer games. The committee toured parks and found some areas that can be improved, but the overall health of Lakeport City Parks is good. The committee’s objective was to gather information about the health and future of the city parks. Background: The city government of Lakeport operates its own parks. There are three parks in Lakeport. The Lakeport City Parks are: Library Park, Westshore Pool, and Westside Community Park. Mulberry Park is an undeveloped area that was given to the City of Lakeport. The donor requested that it be left in a natural state. It is green space with some improvements such as the planting of native species and minor walking paths lined with bark and a watering system. Lakeport City Parks Department maintains the city parks with a permanent staff of one. There are three workers from the One-Stop-Program that help with park maintenance. The Trowel and Trellis Club helps the park system with planning, donations of plants and planting. Methodology / Procedure: In September 2009 through March 2010 the Public Services Committee conducted an elective oversight of Lakeport City Parks. The Lakeport Parks were toured on September 16, October 14, December 4, 2009, and January 31, 2009. Grand Jury Committee members met with the management of Lakeport City Parks on March 12, 2010. ❖ Library Park 222 Park Street, Lakeport Facts: • Library Park is three acres with docks, boat ramps, two playgrounds, a picnic area, a gazebo, and swimming in the lake. 2009-2010 Lake County Civil Grand Jury Public Services Committee • Dogs are allowed on leash. • The park has sodium vapor area lights. • The single woman’s bathroom door opens outward and is too difficult to close thereby rendering the lock unusable. The parks worker went to check the lock when told about the problem. It had not been fixed on a second park visit. • The single bathrooms have cold water only and are fairly clean. • The garbage cans were empty and there was no litter on the ground. • The outdoor drinking fountain and shower do not work. • Playground rules were displayed. • The toddler enclosure has good sturdy fencing with a well-engineered lock mechanism that is adult friendly but not child friendly. • The toddler enclosure has appropriate playground toys. One is broken. A parks worker stated that they were waiting for a bolt to repair the broken riding toy. This was found to be fixed on a second park visit. • The accumulation of animal feces (mostly duck and other birds) on the esplanade is a problem. This is cleaned two or three times a week with a blower and water. • The main bathrooms are closed from 6 PM to 8 AM. The committee was told that they are closed at night due to vandalism and graffiti. • The main woman’s bathroom has three stalls that were clean. The sinks have only cold water activated by push buttons that were too hard to push. • The men’s bathroom floor was badly stained in areas. • There were benches and tables. • The sprinklers were erratic and water pooled in places. • There was a round concrete and tile enclosure filled with dirt and cigarette butts. This was formerly a fountain that became a liability when diapered children used it for a wading pool and used diapers were left in it. It next became a planter but the plants were destroyed. • The Carnegie Library now houses offices, which pay rent to the city. • The Third Street and Fifth Street Launching Facilities had clean restrooms with working water.

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📋Water Resources Division Oversight

14 pages 5 findings 1 recommendations

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Findings & Recommendations 5 findings

F1: The County Administrator advised that under the former structure much of the Public Works operational expenses (overhead) were allocated to Water Resources, resulting in Water Resource funds being siphoned away by Public Works to cover these overhead expenses.

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F2: The County Administrator expressed that separating out Water Resources from Public Works would allow Water Resources to manage their own funding and thereby be more cost effective.

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F3: At the time of the initial interviews of the then Water Resources Division, the Planning and Public Works Committee found that the division did not have details about the structure of the new Water Resource Department. Planning and Public Works Committee All staff then expressed low morale and concern for job security and positions that could be left vacant.

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F4: During the more recent of interviews in March 2010, the County Administrator stated that the County was recruiting for a new director, that the Deputy Director would be stepping down in salary, there would be hiring of a new clerical/accounting position and the new director would be allowed to structure and hire his own staff.

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F5: The Lake County Grand Jury concluded a new Water Resources Department would function better and be able to focus on the lake. Recommendations:

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Additional Recommendations 1

Not linked to specific findings.

R1: The 2010-2011 Lake County Civil Grand Jury conduct a follow-up elective oversight of the new Water Resources Department created May 2010. Agency/Department(s) Required to Respond: • None Planning and Public Works Committee Planning and Public Works Committee Planning and Public Works Committee Planning and Public Works Committee Planning and Public Works Committee Planning and Public Works Committee Planning and Public Works Committee Public Safety Committee Pubic Safety Committee Table of Contents • Complaints Alleged Breach of Confidentiality 10-23 183 Alleged Clearlake Police Inaction 9-03 185 Alleged Threat from Public Official 10-24 187 Clearlake Police Department 9-05 189 Clearlake Police Loss of Property 9-14 191 Correctional Facility 9-02 195 Correctional Facility 9-09 197 Correctional Facility Food Service 10-21 199 District Attorney / Sheriff Office 9-15 201 Lake County Fire Protection District 8-12 203 Lake County Sheriff 10-17 207 • Oversights Clearlake Police Department 209 Clearlake Police Department Holding Facility 213 Konocti Conservation Camp #27 217 Lake County Correctional Facility 223 Lake County Correctional Facility (unannounced) 227 Lake County Juvenile Hall 229 Main Court Holding Facility 239 Search and Rescue 243 South Court Holding Facility 245 2009-2010 Lake County Civil Grand Jury Public Safety Committee 2009-2010 Lake County Civil Grand Jury

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