Law Offices of Hogan & Stickel, Inc. Sean J. Hogan, Jd, Cpa 811 North Main Street Brandt R. Stickel, Jd, Llm*

the board review current and past versions of the Center bylaws, rescind the amendment granting full authority to as few as two members of the executive committee, require full board approval of all executive committee actions, and formally adopt an agreed upon set of bylaws clearly identified by the date of adoption. (Findings 2-5) The Center Board, at their May 29 regular meeting, made available the current Bylaws, as last amended on September 19, 2008. These Bylaws are reflective of all amend- ments as recorded in Board minutes, and are currently posted on the web site at rescenter.org, have been circulated at the Center, and are available to anyone by a sim- ple request at the front desk. Following orientation of new members and a Board Training Workshop, The full Board will proceed with a review of their governance and committee structures, in order to in- tegrate new Board Members into those processes, and consider appropriate changes in Bylaws, procedures and policies as a part of reviewing the annual 2009/2010 operating plan. This will commence at the September 25 annual Board Meeting.

The Board is actively recruiting new members, with several strong applicants already. The Board hopes to have a slate of candidates ready for consideration at the July Board meeting, prior to con- sideration of governance process and Bylaws.

I have reviewed personnel policies and the Board will be asked to clarify several matters relating to eligibility for benefits and limits on accrued vacation. All personnel policies are currently applicable to all employees, including the Executive Director.

Department managers are participating in an annual strategic planning process. We are creating new job descriptions, annual action plans, and a results driven annual assessment program for all em- ployees. The Interim Director will consult with the Board within in six months, prior to determining how to proceed with the management of the Center.

Department managers are reporting to the Board on their activities and the Business Manager at- tends all Board Meetings, and assists the members with analysis of financial documents. The Board is now receives a budget variance report, and the profit and loss statement is annotated with exten- sive analytical notes to support their review.

All checks now require two signatures, invoices require two levels of approval before being authorized by the Business Manager. Expense vouchers require a Supervisor's signature before being author- ized for payment by the Business Manager, and in the case of the Director, the Board is the Supervi- sor.

The Center charges a standard fee for room use with a catered luncheon. Other room rental fees are variable based on space, setup, and food service required. A fee schedule and list of available ser- vices is available at the front desk.

The Center has a number of maintenance issues which will need to be addressed. A fund raising campaign specifically focused on these needs will be necessary this coming year. Application will be made through the city of Fort Bragg for Block Grant Redevelopment funds to paint and restore the ex- terior of the building. Day Care program enrollment is up nearly 30%, and we restart full bus service on June 15, with ex- panded routes and two full time drivers. The Center is working with the adjoining Middle School and the Noyo Food Forest on a cooperative gardening project. The School District and Center are cooperating on a parking lot canopy/solar panel project. All previous issues have been resolved. The Center has initiated an engagement with several community organizations which provide senior mentoring for both elementary and high school stu- dents. Staff and community are pleased and enthusiastic about the changes as anyone visiting the center can determine by observing and asking. It will take considerable effort to rebuild trust with the larger commu- nity who have always supported the Center generously. The staff and I are committed to earning that trust by competent, responsive, transparent management of the Redwood Coast Senior Center, for the benefit of the elders of our community." Response to Grand Jury Report The Grand Jury Report includes 87 "findings" which include information or statements extracted from documents provided by the Center, some analytical or interpretive statements, and quotations from both identified and non-identified individuals. It is im- portant to understand that no one interviewed by the Grand Jury is allowed to disclose or discuss either the questions they were asked or the information they provided. Fur- ther, no one is informed about who was interviewed, or what was said. Despite these restrictions, the Grand Jury findings present a picture quite similar to what I found as described above. Therefore I would say that I agree with the findings to the extent that I have data on which to base my assessment, and simply cannot comment on specific reports about what individuals are quoted as having said to the Grand Jury. Therefore I am in formal agreement with findings 1 through 87 of the Report. The following sixteen recommendations were made at the conclusion of the County of Mendocino Grand Jury Report Transmittal issued May 12, 2009. Following are detailed updated responses to the sixteen specific recommendations 1. the Center Board engage an appropriate non-profit management consultant for formal board training. On May 22 the Board and staff met with Deborah Pruitt, a management consultant pro- vided by United Way, to conduct an all day strategic planning and organizational vision- ing workshop and training. The purpose of this training was to review the recent history of Center management with the Board and staff, and to clarify the mission, goals and values that guide both the Board and the staff, and to allow the Board and staff to dis- cuss the management issues disclosed by the Board's operations audit of the Center prior to the resignation of the previous Director. The Center Board has engaged Dr. Robert Lorber to serve as a consultant to the Ex- ecutive Director and the Board, and instructed Interim Director Charles Bush to assist Dr. Lorber in scheduling and implementing a formal Board training workshop. Dr. Lorber is President of Lorber Kamai Associates, with forty years of management consulting ex- perience, including extensive non-profit board consultation. At their June 17 meeting the Center Board reviewed six applications for positions on the Board of Directors, and unanimously selected four candidates to fill vacant positions, bringing current Board membership to nine members. Orientation of these new mem- bers, and a Board training will be conducted before their first Board meeting on July 31 at 1:00 p.m. By a unanimous vote, the new Board changed the status of Interim Execu- tive Director Charles Bush by appointing him as the full time, regular Executive Director. As required by the Bylaws, The annual meeting of the Board will occur on September 25. At that time they will elect new officers, and review which Board members are reaching their end of term. The Board will mover forward into their new year reviewing the Bylaws and determining what additional training they want.

board approval be required prior to payment of all expense claims submitted by the Executive Director. Implemented on March 16, 2009.

the interim Executive Director explore room fees charged by local non-profit agencies and propose a fee schedule for board consideration. There is a standard fee schedule for space rental. Each rental is quoted individually, because often food service is offered, and rates vary based on the type of event and catering required. The Center has five regular clients who use facilities weekly, and av- erages at least two major external events per month.

the interim Executive Director initiate development of the website and ensure its regular maintenance to include a basic description of the facility, the services it offers, directions and contact information, approved board minutes, and a regularly updated digital newsletter with a calendar of upcoming activities. Implemented May 6, 2009. Visit the site at rescenter.org 13. the Center Board be proactive in reaching out to the Fort Bragg community to recruit additional board members and identify opportunities for community partnerships. See # 1 for detail on Board recruitment. The Center currently works with a range of governmental, private and non-profit agencies in coordinating services to seniors and hosts a monthly review meeting of these organizations. We partner with three other ser- vice organizations on fund raising event. In the past three months we have implemented joint programs with the Noyo Food Forest for a senior garden, and the Fort Bragg school district Nutrition Program to partner on a senior -middle school gardening project. We will continue these efforts and seek additional appropriate partnerships. We will util- ized MPIC funding for on the job training and youth summer interns during the this Sum- mer and Fall 14. the new interim Executive Director meet with the Fort Bragg Middle School principal and FBUSD Superintendent to clarify on-going issues around the shared parking lot and to consider establishing mutually beneficial interactions between seniors and students. Implemented by April, 2009. Interim Director met with both current new Superintendent, and the previous superintendent to review history. All issues resolved. We are currently cooperating with the School District to construct covered parking and installation of ex- tensive solar panel array this summer.

the new Executive Director arrange to have the deteriorated carpet in the general meeting room removed as soon as possible to eliminate trip hazards, and to refinish the wood floor in the same manner as the nearby dining room. We are managing the trip hazard with temporary matting while we explore options for funding this capital improvement. To this end, we have added an experienced mainte- nance person to our staff, utilizing a MPIC training contract to pay half of his costs. He will be able to supervise major maintenance projects for us. Obviously this is a matter of availability of funds, and this year looks very tight, so we may have to explore a tempo- rary fix.

the board and Executive Director explore options for exterior painting. Executive Director has begun exploration of procuring a Community Development Block Grant with the assistance of the City Manager and Planning Department. Again, funding is the primary issue. This final part of my report is the response that I prepared as requested by the Grand Jury. I am providing this report in order to provide the full Board with a complete history and accounting of events surrounding the Grand Jury Investigation, the Board ordered operations audit and subsequent corrective actions. I will await instructions from the Board and our Attorney regarding its disposition relative to the issues around either a voluntary or required submission the Grand Jury. .