El Dorado County Grand Jury • 2002-2003

Government & Administration Committee Fallen Leaf Lake Community Services District Citizen Complaint #c36-02/03

Published: February 17, 2003 4 pages

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⚠️ Aviso de traducción: Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.

⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.

Note: Missing finding numbers detected: F6, F7

Findings 22 findings

A Request For Proposal (RFP) was mailed to 50 applicants. Five responded. Three were interviewed.

Profit and loss statements of the marina/store from previous years were not made available to FLLCSD Board members or potential contract bidders. 99

A Board member, whose relative was one of the parties that submitted an RFP, cast the deciding vote breaking a 2 to 2 tie awarding the contract to a family member.

The FLLCSD Charter does not have a Code of Ethics.

Ten years ago, Fallen Leaf Lake Community Services District (FLLCSD) money was “loaned” from the Fire District to park and recreation functions and has still not been repaid.

TOT collected from all rental sources amounted to almost $9 million dollars in the fiscal year 2001-02.

The annual City budget is dependent on TOT revenues.

F10

For the last two years, the City of SLT has had a budget shortfall in excess of $ 2 million dollars a year.

F11

Reserve funds are being used to balance the City’s budget.

F12

About $ 4 million dollars is left in the City’s reserve funds.

F13

The City of SLT has not filled the Finance Director’s position for the last 12 months. The City of SLT as of 5/03 presently has filled the position .

F14

The City Council is not adequately informed regarding the delinquent TOTs.

F15

Of the five rental agencies audited for this investigation, the Investigator estimated that nearly $100,000 underpayment of TOT occurred in 2002.

F16

It was further estimated that over $224,000 was underpaid by all rental agencies in 2002.

F17

Individual homeowners, as distinct from agencies, may have underpaid an additional TOT of approximately $85,000.

F18

This year the City hired an individual to audit the motels and hotels regarding payment of TOT.

F19

In one period, from August 2002 to March 2003, this person found uncollected tax amounting to over $375,000.

F20

Motels, hotels, vacation homes, and rental agencies are responsible to pay their TOTs owed on an honor system.

F21

Although the City has stringent methods of dealing with delinquent TOTs, the prevailing method used is to put a lien on the property.

F22

There are no written guidelines as to the definition of “rent” as expressed in Chapter 28A-3 of the City Code.

F23

Some agencies and motels pay TOT on all revenue generated by the rental of the room, and others do not.

F24

On several occasions, this committee requested the El Dorado County Auditor-Controller for assistance to investigate the initial complaint filed. The requests were denied. 80

Recommendations 8

R1

The procedures under which the Fallen Leaf Lake Community Services District (FLLCSD) adopted the current contract should be reviewed by the Board.
R2

The current FLLCSD By-laws and Charter should be reviewed and revised as needed.
R3

A Code of Ethics for elected officers should be written and adhered to.
R4

The FLLCSD should obtain the assistance of the Institute for Local Self-Government on Community Service Districts to complete the two prior recommendations.
R5

FLLCSD should hire a General Manager.
R6

The elected officers should avoid any appearance of impropriety.
R7

Newly elected FLLCSD Directors should participate in orientation and training sessions provided by the Association of Community Services District.
R8

Money “loaned” from the Fire Department to parks and recreation should be repaid in a timely manner.

Commendations 1

CM1 Page 3

The Grand Jury wishes to commend the homeowners in Fallen Leaf Lake for their concern, at this time, to resolve a community issue that has caused unnecessary divisiveness. Responses Required for Findings F1 through F5 Fallen Leaf Lake Community Services District Board of Directors Responses Required for Recommendations R1 through R8 Fallen Leaf Lake Community Services District Board of Directors 100 Note: In response to a widely disseminated e-mail critical of this Grand Jury from a FFL Board member to fellow Board members. This Grand Jury has never publicly impugned the integrity of any witness in any case. We have done and will continue to do our very best in fact gathering from relevant sources from either side on a public issue presented to us. We are not a criminal Grand Jury. Our mission is to assist the public in improving the performance of the several levels of government. To those who feel otherwise, we can only pledge our consistent dedication to our mission. 101

No Responses Found 1

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

Fallen Leaf Lake Community Services District Special District