San Joaquin County Grand Jury • 2007-2008

2007-2008 Final Report*

Published: June 24, 2008 138 pages Consolidated Report
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Findings 20 findings

F1
Stockton Police Department does not use hand-held voice recorders. The use of this device and procedure will save time and labor. The San Joaquin Sheriff Department currently uses this procedure.
F2
This Grand Jury found that the Board of Trustees of Delta Community College was ill prepared to handle the Measure L Bond funds. At the time the bond measure was proposed, the Board of Trustees knew that they would not be able to obtain the amount of money necessary to cover all of the proposed needs as listed on the ballot. There appears to have been no clear path to fulfill student needs for the future. Despite Brown Act training, there continues to be numerous allegations of Brown Act violations by the Delta College Board of Trustees. This Grand Jury found evidence of closed-session discussion being shared outside of the Board of Trustee meetings. The public/private partnership between Delta and the developer has delayed
F3
In the announcement for the exempt position of Assistant Clerk of the Board, the definition of what it means to be an "exempt" employee is not spelled out.
F4
The Civil Grand Jury finds no evidence that the current Mayor of Lathrop received excessive campaign contributions.
F5
No one business contributed more than is legally allowed. It has been determined that the mayor is now and has been acting in a reasonable and
F6
ethical manner in matters where the City Council is considering new business in the City of Lathrop.
F7
The City of Tracy offered a 108 acre site to Delta College, including all fees and infrastructure at an estimated cost of $6 to $10 million. The City of Tracy included an offer to cap Delta's cost and to contribute an additional $2 million toward mutually defined joint-use facilities. Delta's staff and consultant PPV, Inc. recommended leaving the Mountain House site for the Tracy location. Staff estimated that by going to Tracy and selling the Mountain House property Delta College could save as much as $50 million. Delta College Board of Trustees on a split vote (4-3) decided to stay with the Mountain House location.
F8
The demographic studies used by the Delta College District for facilities planning are questionable at best. They did not take into consideration the curriculum type that might be needed i.e. brick and mortar vs. internet usage.
F9
Although the original estimate for the building of a center/campus at Mountain House was $55 million, as of January 2008, the estimate has climbed to approximately $94 million and could go much higher costing District taxpayers tens of millions of dollars. These figures do not include funds for Phase II and Phase III. At this time the plans call for portables (trailers) to be used to house students.
F10
Private agendas and public bickering have delayed the progress of the use of bond funds. This has resulted in a reduction of projects that will be completed and has caused the complete cancellation of other projects. Therefore, costs have risen by tens of millions of dollars due to inflation.
F11
Due to a lack of oversight by the Trustees, the Bond Management Company has wasted untold dollars and delayed all projects.
F12
Citizens' Bond Oversight Committee meets quarterly to review past expenditures related to Measure L. Although Proposition 39 outlines responsibilities, committee members were trained to believe they do not have a mandate to question Measure L expenditures other than those deemed illegal. Although Proposition 39 outlines much broader responsibilities, committee members have been trained that their role is to review financial statements to ensure only authorized expenditures are charged to Measure L, to review project budgets and to the annual report. New committee members received no organized training.
F13
Brown Act Violations have occurred at meetings of the Citizens' Bond Oversight Committee. Meeting agendas were not posted at the meeting site 72 hours in advance and were not available to the public at one meeting attended by this Grand Jury's members.
F14
The formation of the new Measure L team and chairperson is a step in the right direction in getting control of bond funds and projects.
F15
SJRTD is not consistent in the use of "retainer agreements" for consultants. The line between salaried employees and those on retainer have been blurred. Some consultants are consistently paid for undocumented services against a retainer and are also paid for partially documented services at an hourly rate. Records reveal that these consultants always receive the maximum allowable payments, whether or not they provide the required "Deliverables" specified in their contract. For some individuals, payments for "retainer" services are akin to payments typically made to a "salaried" employee.
F16
SJRTD has not effectively used their marketing department to generate advertising revenue on their bus fleet. SJRTD has adequate staffing in their marketing department, yet bus advertising seems to be minimal. Advertising can be an excellent source of revenue. Other transit districts produce significant revenues from advertising and additional revenue would reduce SJRTD's dependence on taxpayer funds.
F17
Contracts requested from SJRTD by the Grand Jury were not delivered upon our initial requests, and it became necessary for the Grand Jury to petition the Court to issue a subpoena.
F18
The design of the Downtown Transit Center Construction Project was revised by Change Order after the contract had been awarded to the lowest bidder. The result of the change reduced the cost of the contract price by $2,481,474. The contract should have been returned to all original bidders to allow for continued participation in the formal bidding process, possibly saving the public additional dollars.
F19
The General Manager/CEO did not follow SJRTD established procedures for "change orders" during construction of the Downtown Transit Center. To avoid litigation, it became necessary for SJRTD to enter into a negotiated global settlement agreement with the building contractor.
F20
Thirteen hotel rooms in the cities of Stockton and Lodi were rented to use as meeting rooms at an expense of over $5,000. in 2007. The Downtown Transit Center has several large and well-appointed conference rooms capable of accommodating meeting room requirements.

Recommendations 15

* 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.