Placer County Grand Jury • 2012-2013

2012-2013 Final Report State of California*

Published: June 20, 2013 178 pages Consolidated Report
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Findings 15 findings

F1
The Grand Jury found the APD jail holding facility is adequate and well maintained for the purposes it is used.
F2
APD has a vacant Captain position. Conclusion APD's jail holding facility is well maintained and utilized.
F3
The PCMJ is well managed despite crowded conditions.
F4
The PCMJ do not have enough Taser weapons to issue to all on-duty jail staff.
F5
SPACF is not open at time of this writing. Conclusion The PCMJ is well managed and well maintained despite crowding challenges. 2012 - 2013 Placer County Grand Jury
F6
The NFPD does not have checks and balances to assure accuracy of its tax levies. 2012 - 2013 Placer County Grand Jury Conclusion The Newcastle Measure F, passed in 1997 by the voters of the NFPD, is not clearly written. Based on our review of the ballot language and a sampling of special taxes, the Grand Jury encountered contradictions, uncertainties and issues that Measure F does not address. As a result, we found a number of inconsistencies in taxes levied and differences in interpretation of the Measure. There is a degree of subjectivity in the interpretation of the Measure.
F7
The finances of the NFPD have been steadily deteriorating and are such that, without Measure B or other type of revenue, future financial viability is uncertain. If NFPD is to remain as an unconsolidated and independent fire district, it must rely on additional revenue, whether that be by way of Measure B special taxes or otherwise.
F8
NFPD's allocation of Prop 13 taxes is among the lowest of fire districts within the County thereby exacerbating its financial condition. There is a perception that other fire districts in the surrounding area (which receive a higher percentage of Prop 13 tax allocation) are not interested in consolidation with NFPD because its share of Prop 13 taxes is so low.
F9
The percentage allocation of Prop 13 property taxes to special districts is generally limited to the percentage the geographical area collected prior to 1978, when the NFPD was all voluntary. Although there is great debate occurring at the State level on the fairness of Prop 13 allocation of collected tax dollars, there currently is very little latitude for the Auditor-Controller to change this percentage allocation. Some other County Boards of Supervisors have found other (non-Prop 13) sources of revenue to supplement special fire districts which are on the lower end of the Prop 13 property tax allocation.
F10
The Financial Statements do not report that NFPD is collecting Emergency Service User (ESU) Fees. The Grand Jury was unable to determine if there is a process in place for doing so. If approximately 20% of current emergency responses by NFPD are related to transient traffic on I-80, and if the ordinance authorizing collection of ESU Fees is valid, the NFPD may be able to supplement its revenue by aggressively pursuing this issue.
F11
The reason for rejection of the property donation for a new fire site was not adequately articulated to members of the public. 2012-2013 Placer County Grand Jury F 12 The 2004 LAFCo Report provided a very useful analysis in the review of facts and issues facing special fire districts in Placer County within the 2004 time frame. The LAFCo review has not been updated since that report. Conclusion The NFPD has experienced a rapidly declining financial condition, which is based in part on increased operating costs, lower development fees (because of real estate development downturn) and lower Prop 13 taxes (because of declining real estate values). Also, much of the financial deterioration can be attributed to costs associated with the delay in dealing with Station 41's physical problems. This inaction, whether intentional or by misunderstanding, resulted in imprudent and reactive decision-making by the NFPD. Ultimately, NFPD did need to take action to increase its revenues, but did so in a way that alienated some of its constituents. There is a completely new Board which has to address some hard decisions going forward, particularly as it relates to a long-term solution to its fire station. It appears they are off to a good start.
F12
No evidence was found to indicate that the Fair Association presented an operating budget to the BOS for 2010, 2011, and 2012. On April 9, 2013, a 2013 budget was presented to the Board of Supervisors.
F13
A new Operating Agreement between Placer County and the Fair Association is not expected until year 2014. 2012-2013 Placer County Grand Jury
F14
The County is indirectly funding the All American Speedway by authorizing funds for the EIR. The EIR is required as a result of unauthorized changes to the All American Speedway by the Fair Association in 2006-2007.
F15
Since there is no record of an audit of the Fair Association for the past 4 years it was not possible for the Grand Jury to assess the Fair Association's financial position. It is also not possible to determine whether Fair Association funds are available to complete County required mandates. Conclusion On July 10, 2012, the Placer County Board of Supervisors extended the Fair Association's contract through December 31, 2013, subject to the condition that the Fair Association acquire after-the-fact building permits for improvements constructed in 2006-2007. The Fair Association did not comply, the Board of Supervisors took no action, and yet the Fair Association continues to manage and operate the Fairgrounds and All American Speedway. Also on this date, the Board of Supervisors approved allocation of funds not to exceed $84,400 of taxpayer money for Phase II of the EIR. This was necessitated by decisions made by the Fair Association in 2006-2007. The Fair Association maintains that they have insufficient funds to comply with the conditions imposed. This investigation did not identify any independent audits of the Fair Association financials that would support this position. In response to a comment from the floor, at the April 9, 2013 Placer County Board of Supervisors meeting, Supervisor Jack Duran stated "No Winners Here - Just Degrees of Loss". This Grand Jury agrees that this is an accurate assessment of the situation, but it does not justify lack of action by the Board of Supervisors.

Recommendations 8

Conclusions 9

* This report's PDF did not contain easily extractable text and required Optical Character Recognition (OCR) for analysis. There may be minor errors in the extracted findings and recommendations due to OCR limitations with scanned documents.