Stanislaus County Civil Grand Jury Oak Valley Hospital District Case #11-09c

The Stanislaus County Civil Grand Jury finds the Oak Valley Hospital District violated the Ralph M. Brown Act in the following areas: Public meeting agendas: The meeting agendas were lacking information; the format did not provide a clear understanding of the items to be discussed at the meeting. In addition, the agendas did not consistently appear to be provided a minimum of 72 hours in advance of the public meeting as required. How public meetings were conducted: Decisions were made and/or action was taken on items not listed on agendas. In addition, agenda items were acted on without soliciting and/or allowing for public comment or questions as required. Release of confidential information: A District Board member disclosed, to a non board member physician, confidential information discussed during a closed-door meeting. Serial Meetings: District Board members discussed board related information, via e-mail messages, without an agenda or in a public setting. Release of public information: Public Information Act requests were not met and meeting agendas were not made available as required by law.

OVHD prematurely awarded contract design work, pursuant to a Medi-Cal grant, prior to soliciting bids from qualified contract bidders. Based on OSHPD requirements, the scope of the original design project changed from “design only” work to “construction/remodeling” work, which the design company was not qualified to perform. The design project was then put out to bid and the original design firm was subsequently employed, as a sub contractor, to the construction firm awarded the construction contract.

The Stanislaus County Civil Grand Jury finds no evidence of legal counsel physically attending OVHD public meetings. It also appears there was no legal counsel involvement with the preparation of meeting agendas or immediate assistance with legal issues. Although not a requirement, this lack of legal counsel presence appears to be a contributing factor in the referenced Brown Act violations.

Based on the review of OVHD Board meeting and OVHD Governing Body agendas and meeting minutes, dated January 2011, the agendas implemented by the newly elected board, appear to be in compliance with the Ralph M. Brown Act.

There appears to have been inadequate notice made to the public concerning the change from the “original” Replacement Hospital Construction Project to the Revised Hospital Construction Project. The revision plan was instituted as a result of defeated bond measures “O” and “Q.”

No evidence was found to support the allegation of financial misappropriation or misconduct.

No evidence was found to support the allegation of conflict of interest issues.

No evidence was found to support the allegation of contract bid manipulation concerning the OVHD Replacement Hospital Construction Project.

No discrepancies were found in the area of OVHD financial reports.

CEO personal expenditures were made on the CHW/Oak Valley Hospital credit card and were in compliance with the CHW Employee Travel Business Entertainment Expense Reimbursement Policy.

No evidence of arbitrary or unauthorized wage or bonus distribution on the part of the CEO was found. CEO bonuses are based on set criteria as defined in the CEO contract.