Response to 2010-2011 Grand Jury Report

Inadequate Financial Bookkeeping System RESPONSE -Except for our inability to change mistakes which occurred in the past, all of the problems described in this section have been corrected, or are in the process of being corrected. The main reason for these problems is the inadequate work done by our former bookkeeping service, employed by IFPD for over ten years until the time they were terminated at the end of May, 2010. Another reason is the lack of oversight by the former fire chief and board of commissioners. With reference to the statement by our current auditor, those comments, "they have experienced similar deficiencies," were made with respect to the deficiencies they noted as they performed the audit for the 2009 - 201 0 fiscal year. They have assured us that these comments were not directed toward the manner in which these tasks are being performed today - to the contrary, they have stated that they noted great improvement with respect to the procedures now being followed. For example, of6 Idyllwild Fire Protection District PO Box656 Idyllwild, CA 92549 (951) 659-2153 we now use a double entry bookkeeping system using Peachtree. However, due to the lack of reliable pre-2010-2011 fiscal year financial records and the poor procedures employed in the past by the former bookkeeping service, it is taking both time and money to correct all of the problems. To assist us in reaching our goals in this regard, we have employed a part-time CPA, and expect to reach them in the near future.

Annual Audits RESPONSE -Once again, the reason for this very significant problem lies with the former bookkeeping service and the former board of commissioners. Indeed, our former auditor Smith Marion & Company, who performed the audits referred to in your report, has stated that he tried for three years during the period in question to contact the former bookkeeping service and received no response. We don't know, for a fact, why the former bookkeeping service refused to cooperate, but the likelihood is that they did not have the records readily available that the auditor would need to complete the audits. As a point of clarification, Administrative Regulations # 107, which is currently being updated, includes all ofthe Board Policies (BOD 4010-BOD 4090) referred to in your report.

Lack of compliance with requirements of AR IFPD # 107 • Failure to monitor expenditures RESPONSE- The Board Treasurer prepares and discusses at each regular monthly board meeting a monthly Financial Report Review (example copies attached) based on his analysis of the monthly excel spreadsheet, formerly called the Idyllwild Fire Protection District Budget Report, now called the Idyllwild Fire Protection District Budget, which is prepared by an Administrative Captain based on the information he is given by the chief. Up until June 2010, that information was given to him by the former bookkeeper and chief, and now by the part-time Accountant (and present chief) who handles all of the activities that generate the numbers he uses. Unfortunately, we did not realize that the numbers he was being given by the former bookkeeping service were highly suspect, and, on occasion, erroneous. The numbers we have generated and used since July 2010 are probably the first reliable numbers available to us in some time-possibly years. The IFPD Administrative Captain who prepares the monthly expenditures is highly skilled in this area. of6 Idyllwild Fire Protection District PO Box656 Idyllwild, CA 92549 (951) 659-2153 • Lack of Training on the Brown Act RESPONSE -There is no disputing the fact that training regarding the provisions of the Brown Act has been lacking. The Board has already taken steps by arranging/ participating in two training sessions over the past two years. The first in 2010_by Bradley Neufeld, who currently serves as our attorney, and the second in 2011 put on by the Special District Risk Management Authority (SDRMA ). We plan to offer at least one additional training session every year, and possibly an additional in-house training program administered on an on-going basis. • Late Financial Annual Audits See item 2, Annual Audits under Findings, above

Violation of the Brown Act RESPONSE - Again, there is no question that a district such as ours must obey the Brown Act (Government Code sections 54950- 54963), but, there will be inadvertent mistakes made. Indeed, the Brown Act consists of a series of laws which, taken as a whole, is extremely complex. To illustrate, following is an excerpt from the introduction in a pamphlet published in 2003 by the California Attorney General, Bill Lockyer, called, "THE BROWN ACT, Open Meetings for Local Legislative Bodies." "In preparing this pamphlet, we relied on a variety of legal resources. Appellate court cases were consulted and are cited throughout the pamphlet. While most of the more significant cases are discussed, this pamphlet is not intended to be a compendium of all court cases in this area. In addition, we drew upon published opinions and unpublished letter opinions issued by this office. Attorney General opinions, unlike appellate court decisions, are advisory only and do not constitute the law of the state. However, with respect to the Brown Act, the courts have frequently adopted the analysis of Attorney General opinions, and have commented favorably on the service afforded by those opinions and this pamphlet." The purpose of including this statement by the attorney general is to again call attention to the complexity of the Brown Act. It is safe to assume that in each of the eighty (80) cases (as of2005) that went before a court, most often a California Court of Appeals, sometimes the California Supreme Court, and other times before a Federal Court, two or more attorneys disagreed as to the meaning of one or more sections of the Brown Act. And, as of2005, there are thirty-seven (37) California Attorney General opinions, also made necessary because two or more attorneys disagreed. of6 Idyllwild Fire Protection District PO Box 656- Idyllwild, CA 92549 (951) 659-2153

Conflict of Interest by a Board Member The member disagrees with this finding. The Fire Board of Commissioners is awaiting a legal opinion at this time.

Use of Volunteers and/or Cal Fire RESPONSE RE: VOLUNTEERS- As stewards of the tax payers money it would be irresponsible of IFPD to pay an analytical firm to tell us whether a volunteer fire department would cost less than a paid fire department, therefore we reject the suggestion. The district has recently acquired a new volunteer fire company with 6 members (three responders, three support personnel and one trainee). However, the purpose of this volunteer fire company is to augment the career staff, not replace them. An all-volunteer fire department would change the ISO rating (Insurance Services Office "Public Protection Class") for IFPD causing commercial and residential insurance rates to go up. Businesses, Realtors and home owners would all suffer financially from this change. RESPONSE RE: CAL FIRE (RIVERSIDE COUNTY FIRE) - This same recommendation was made in a Grand Jury report covering 2007 - 2008 which recommended that IFPD meet with RCFD to discuss the issue. As a result, in 2008 the IFPD met with the Cal Fire Chief John Hawkins, Deputy Chief Dale Hutchinson and Deputy Chief Duane Chamlee. During this meeting IFPD Board President Glenn McWilliams asked for the cost to contract with Cal Fire. In response, RCFD/Cal Fire Chief John Hawkins gave a verbal price of $1.5 million to staff one three person fire engine at station 621. The IFPD President then asked how much an Ambulance would cost and Cal Fire Chief John Hawkins answered "approximately" $900,000 for one ambulance staffed with one EMT and one Paramedic. These figures from RCFD would bring the total operating cost for one Engine and one ambulance to $2.4 million. By comparison, IFPD spends under $1.8 million while providing one fire engine, one fire truck, one brush truck, two ALS ambulances (with a third in reserve), one rescue squad, three pickups, and one snow plow/utility vehicle. We do this by utilizing a combination of Career Staff Firefighter/Paramedics, Reserve firefighter/EMTs, Paid-Call firefighter EMTs and a volunteer fire company. The obvious question is - what more does the public need to know in order to decide whether or not it would be in our community's best interest to disband IFPD and hire RCFD (Cal Fire) to take over our fire district? The answer is simple; IFPD offers more service for less money. of6 Idyllwild Fire Protection District PO Box656 Idyllwild, CA 92549 (951) 659-2153 This subject continues to be raised at every opportunity by persons, some of whom do not live in our district and are not serviced by our fire department other than for ambulance service. Spending taxpayer dollars on a redundant study to the 2008 Grand Jury follow up meeting would be a waste of valuable funds. The public has access to IFPD's budget as well as RCFD's budget on line and can make these comparisons independent! y.