Lake County Grand Jury • 2009-2010

2009 to 2010 Civil Grand Jury Final Report

Published: June 30, 2010 311 pages Consolidated Report
Ver PDF original

Findings 27 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)
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)
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)
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 While most admit having neither read nor being totally familiar with said manual, all feel the manual is probably outdated or incomplete and/or in grave need of revision.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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)
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)

Recommendations 6

No Responses Found 1

Government entities assigned to respond to this report. No response documents have been linked in our database.

Lake County County