Cover Photo By 2010-2011 Grand Jury

Conclusions 33

• CL1 Page 19
  Marijuana is the number one cash crop of Tulare County.
• CL2 Page 19
  There is an urgent need to eradicate this illegal activity in Tulare County.
• CL3 Page 19
  The illegal use of pesticides and fertilizers pollute the local water supplies.
• CL4 Page 19
  Because some marijuana gardens are in close proximity to existing residential and school areas, the situation is even more dangerous to county residents.
• CL5 Page 19
  The Tulare County Sheriff’s Department, along with other law enforcement agencies, provide excellent services and are diligently attempting to combat this growing problem with limited resources.
• CL6 Page 49
  The pension benefits paid on the portion of salary that results from spiking techniques are paid to the retiree for life. But the benefitting employee may have only contributed to the Plan on that portion of salary for a short period of time, commonly 36 months. This is an unfair burden on the County (meaning, of course, the taxpayer). As it is, the County will experience rapidly increasing contribution levels to the Plan for many years to come in an effort to keep up with what are already unsustainable benefit levels (please see this year’s Grand Jury report on Tulare County Employee Retirement Plan).
• CL7 Page 49
  The benefit level enhancements described in finding 8 have contributed substantially to the difficulties in funding the Plan. It is now possible for a “General Member” of the Plan who begins service to the County at age 22 to retire at age 57 with 70% of final salary (35 years of service at 2% per year). It is very possible for an employee to draw benefits for 25 to 30 years. Under current policies, the benefit may be enhanced by spiking and will be enhanced by the SRBR. Safety Members reach these levels approximately seven years earlier.
• CL8 Page 49
  In light of the Plan’s current and projected funding deficiencies (see this year’s Grand Jury report on Tulare County Employee Retirement Plan), it is clear that when viewed with a long term perspective, the previously deemed “excess earnings” used to fund the SRBR were not “excess” at all. The funds in the SRBR, had they been kept in the general fund for retirees, would have helped bring the Plan to a healthier funded position today. 46
• CL9 Page 53
  The projections used in the AL Study seem to the Grand Jury to be grossly overly optimistic. An anticipated market return of 7.9 % is one that the Plan’s own investment advisor has said is much too high. California’s two largest pension funds, California State Teacher’s Retirement System (CalSTRS) and California Public Employees Retirement System (CalPERS), have reduced their projected investment returns because of perceived market changes. Pension plans do this very reluctantly because it necessitates larger sponsor contribution rates.
• CL10 Page 53
  The Plan’s funded ratio will drop precipitously over the next eight years, even if TCERA‘s current projections for investment returns are realized. This is because TCERA has recently adopted a “smoothing period” of ten years (formerly five years) used in reporting gains and losses to assets. The significant market losses of the Plan’s assets during the recent financial crisis will not be fully accounted for in the funded ratio until 2018. It is unwise to travel a path that, even if a 7.9% investment return can be realized, and the County can somehow increase its annual contribution rate from $23 million to $68 million, results in a funded ratio of 75.9% in 2018. It is impossible for the Grand Jury to see how the Plan recovers from this position, even if the ratio falls no further than to 75.9% by 2018. It is more likely than not that the ratio will fall to less than 75.9% over the next ten years. 50
• CL11 Page 53
  As alarming as the Plan’s current position is, many nearby counties have even deeper problems. According to a 2010 report from Fresno County’s Grand Jury, Fresno County is projected to exceed contribution levels of 52% of salaries by 2013. Furthermore, as is the case in our own county, this is in addition to a contribution to employees’ Social Security accounts of 7.65%. Fortunately, relative to some nearby plan’s provisions. The plan member assumes the market risk associated with the account’s investments. A 2010 study by Towers Watson, a leading global professional services company, showed that of the 100 largest U.S. corporations, only 17 offered defined benefit plans. Most corporations have determined that they cannot afford the costs and risks associated with defined benefit plans.
• CL12 Page 53
  In 2008, TCERA lengthened the “smoothing period” used for recognizing investment gains and losses on their books from five to ten years. This was done as a direct result of substantial losses of assets during the recent financial crisis. This means that large annual losses (the worst were suffered by the Plan in 2008-2009) will adversely affect the reported funded ratio of the Plan for ten years. It also means that for the first several years after a large loss the unfunded ratio is in effect understated.
• CL13 Page 53
  Tulare County’s employee contributions to their pension plan are currently lagging the contributions made on their behalf by the County. According to the AV Report dated 6/30/2010, for the fiscal year ending on 6/30/2011 the recommended average employee contribution rate is 7.80% of salary. The recommended contribution rate for the County is 12.39%. The County also made payments on pension obligation bonds of about 2.5% of salaries. These fifteen-year bonds were issued in 1997 and generated $45 million that was contributed to the Plan. The County is also contributing 7.65% of salaries to employees Social Security Insurance accounts. (Employee contributions are affected by age, years of service and type of employee)
• CL14 Page 54
  As pressures mount for more and more Tulare County contributions, sources for these costs will need to be found. Other County services will further suffer. A broadening burden will be born by all Tulare County residents in order to continue to secure funding for pension plan participants. Already, in many parts of the country, situations like this are resulting in serious political and social unrest.
• CL15 Page 8
  LETTER FROM THE JUDGES Instructions are provided to all entities from whom responses are required. Not all entities respond by the response date and as required. Some do not respond at all. Entities need to respond in a timely and proper manner.
• CL16 Page 13
  While mail-in ballots are vulnerable, no visible signs of tampering with mail-in ballots were found by the Grand Jury. A mail-in ballot should be mailed or returned allowing enough time for it to be received by 8pm on Election Day. Voters who send in ballots that are not received by this deadline are not notified. Voters are notified by mail after the election if their signatures are invalid and their ballots are not counted. If you vote a mail-in ballot and are a senior citizen and/or have had any medical problems since last registering, it is possible your signature has changed. This could cause your ballot to be among the uncounted.
• CL17 Page 15
  Although there was no evidence of widespread abuse of the system, the Grand Jury was able to substantiate the complaint and found the possibility exists for abuse. In these times of tight budgets, all avenues of cutting costs must be followed.
• CL18 Page 24
  According to the studies prepared for TCAG, it was economically infeasible to purchase and operate the short line rail system which included the portion of the system from Strathmore to Jovista. The voters of Tulare County did not approve expenditures for rail lines when considering their vote for Measure “R”. County organizations do not work effectively with potential shippers and the rail companies to increase the profitability of the rail lines. This would enable the rail companies to improve the lines without the use of government funds. EDC does not have an effective working partnership with SJVR and RailAmerica to attract businesses into Tulare County.
• CL19 Page 28
  Since the time SCICON was first a dream, a wonderful thing happened to all the citizens living in Tulare County. County citizens came together and made a dream come true. The students of yesterday and the students of tomorrow did, and will, come away from SCICON with a better understanding of what nature is and how it works. They did, and will, experience what a book cannot truly teach. A book is one thing; actually seeing, touching and feeling is the best educational tool of all.
• CL20 Page 31
  The total compensation packages for the superintendents of the public school districts analyzed by the Grand Jury generally track positively with the ADA, size, and complexity of each district. The contents of each superintendent’s contract regarding health insurance and pension benefits are variable and do not adhere to any standard form. This does not take away from the observation that the trustees of the school 28
• CL21 Page 32
  districts in Tulare County are doing a reasonable job of managing their superintendent’s compensation in line with the size and complexity of their districts.
• CL22 Page 41
  With the exception of a select few, school board meetings appeared to be well run by well-informed board members. Some of the board meetings did not have microphones available and others had microphones available and not used. It was difficult to hear during those meetings. During some school board meetings, there was unnecessary talking between board members and/or agenda discussions took too long.
• CL23 Page 45
  Due to the restrictions placed by the State, HHSA cannot use State supplied vaccines to conduct immunization clinics to include all students in each school. Lack of funding limits HHSA personnel from conducting more clinics for purposes of cocooning, even though the County has access to vaccines from the State at no cost. 42
• CL24 Page 57
  The goal of the Explorer program is to allow all Explorers to participate in the law enforcement experience which may ultimately lead them to be officers of the law or into other careers associated with law enforcement. This is a superb program for our youth. The intensity of the relationships between officers and the youth is a primary factor in how well the program succeeds. The officers interviewed explained they are very active with the Explorers. The Grand Jury applauds and thanks the volunteers/advisors who give unselfishly of their time to make Explorer competitions a success. We compliment each Explorer for his/her dedication to the program, their peers and each other. 54
• CL25 Page 61
  The Grand Jury believes that PAC is adequately providing the services needed for animal control in Porterville. PAC is to be commended for going above and beyond its services by utilizing the press as an aid to reunite families with their pets and advertising pets available for adoption. 58
• CL26 Page 65
  It has been determined by the Grand Jury that the complaints received this year from inmates were unfounded. Using BWDF inmates to staff the kitchen and MCF inmates for the farming operations provide inmates with job skills, teaches responsibility and saves the County a great deal of money.
• CL27 Page 67
  RMA is either unwilling or unable to bring this particular PO into compliance with the zoning laws of Tulare County.
• CL28 Page 70
  RMA made a recommendation to the Tulare County Board of Supervisors (BOS) to consolidate the Code Compliance Div ision with the Zone/Building Inspectors. Data supporting RMA’s position on the CCD had not been submitted to the BOS. In December 2008, $1.5 millio n was owed to the County. Since the mid-year 2009 consolidation, monies owed to RM A have ballooned to more than $3 million. It is obvious, since the consolidation, RMA is not doing the job as intended. RMA is: a. not attempting to collect monies due, b. not using the contracted collection agency for past due accounts, c. not inspecting properties or serving notice on property owners for code violations, d. not having Administrative Hearings, e. not charging interest on several accounts, f. not attempting to bring confir med past violating property owners into compliance (example, see this y ear’s Grand Jury Report “Enforcing the Resource Management Agency’s Code Enforcement”). The County is losing money and is paying RMA employees for a job that is not being accomplished.
• CL29 Page 74
  The Permit Center is not in control of the management practices, management tools, and status information necessary to produce and maintain a process that is both reliable and predictable. The absence of accurate project status and performance information makes staffing and supporting the process a guessing game at best. When building and development activity returns to the levels seen prior to 2008, the Permit Center will not be able to meet the needs of Tulare County’s people in a timely or satisfactory manner unless some real changes are made to its management practices.
• CL30 Page 77
  Signage is lacking at most of the rural schools. This includes stop signs, signs painted on the street, posted signage and crosswalks. Maintenance of existing signage is sometimes lacking.
• CL31 Page 81
  Tulare County is overpaying on much of the leased office and warehouse space within the County. This is especially true for the Health and Human Services Agency leased facilities located in the cities of Visalia, Lindsay and Porterville.
• CL32 Page 84
  RMA needs to complete its Housing Element in order to successfully compete for grants at the State level.
• CL33 Page 88
  Some Districts are receiving tax money to maintain buildings that no longer serve a useful purpose for the veterans or the community. Many facilities are more than 50 years old and are deteriorating faster than the District’s ability to maintain them. There are several Districts that do not have the required number of board members to establish a quorum. This has resulted in meetings being cancelled. Financial transactions are being done without board approval or participation.

No Responses Found 1

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