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Extracted from Consolidated Report
This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.
Napa County Grand Jury
• 2001-2002
Note to Respondents General The legal requirements for response to Grand Jury findings and
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⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings 9 findings
F1
The Grand Jury finds it repugnant that an entity of Napa County sued the County itself. The taxpayers of the County and of American Canyon funded this litigation; American Canyon residents were taxed twice, both as citizens of the City and citizens of the County. Both bodies should have instructed staff to meet and consult until the need for litigation was resolved. The Napa County Board of Supervisors (“the Board”) and the American Canyon City Council (“the Council”) should have given way to the common good.
F2
The Board seem to be content to operate on a "status quo" basis with an invalid Housing Element, an invalid General Plan, and an invalid 1998 Airport Specific Plan (see October 26, 1992 letter from Deputy Director of Department of Housing and Community Development in Attachment). BACKGROUND The participants in this lawsuit seem to have had various reasons for filing suit. Citizens for Honest Government was a small organization unhappy with the Napa County Board of Supervisors; the Sierra Club was concerned about environmental issues near the Airport; and the City of American Canyon was embroiled in a long-standing dispute with Napa County. This dispute arose as a result of the incorporation of American Canyon in the early 1990's. When the City incorporated, it resulted in a net loss of revenue to the County's tax base. The incorporation greatly reduced Napa County's intended new housing base which was part of the Housing Element of the 1983 General Plan as amended in 1986. The County had planned to authorize the construction of new houses in south Napa County to meet its state and regional obligations for housing, including low-cost housing. American Canyon's incorporation resulted in a loss of new housing area to meet the County's housing obligation. Throughout the years following the incorporation, there had been additional skirmishes between American Canyon and Napa County. American Canyon has been unable to obtain a Rural-Urban Limit for growth purposes. There has been little cooperation from the County in responding to legitimate requests from American Canyon. The City's joining in the suit against the County regarding the Airport plan was a further attempt to get the County's attention. In 1999, the Napa Superior Court (the "NSC") ruled that the County’s 1998 Airport Industrial Area Specific Plan (the “Plan”) was invalid because the Environmental Impact Report (the "EIR") that had been prepared to assess the Plan's impact was deficient in its consideration of the Plan’s impacts after buildout upon traffic, housing and steelhead trout. The 1998 Plan was an updated version of the County’s 1986 Plan for the airport area, with more specific and comprehensive “industrial park” design, improvement and density standards. The NSC also held that the 1986 Plan, which the 1998 Plan superceded, remained valid and that the County could continue to process and approve projects in the airport area which complied with the earlier standards, while the County worked to correct deficiencies in the 1998 Plan and its EIR. This latter portion of the NSC’s decision was not appealed. The County appealed the invalidation of the Plan. The appeals court in San Francisco (the “Court”) in a published opinion, affirmed the NSC’s decision. The County asked the Court to reconsider its decision and was denied. The California Supreme Court declined to hear the County’s appeal. Several significant issues of “first impression,” not previously ruled upon in California environmental law, were decided by the Court. First, the County could properly decide to delete certain traffic mitigation measures adopted as part of the 1986 Plan, which the passage of time proved were infeasible. The 1986 Plan called for traffic interchanges to be build at the intersection of highways 29 and 221 at the south end of the Southern Crossing bridge and at the intersection of highways 29 and 12 at Airport Boulevard and Jamison Canyon Road. The 1998 Plan deleted these improvements as a required element of Plan buildout because: (1) the contribution of project traffic to congestion problems caused by other traffic using these roadways was “minor”; (2) the County lacked the funds to implement these very costly improvements (perhaps $70 million); and, (3) the County did not control the design, approval and construction of these State highway improvements; Caltrans did. These were legitimate reasons for County to conclude these improvements were “infeasible.” Evidence supported these reasons. Changed circumstances over time allow a county to delete or modify project mitigation measures previously adopted. They are not cast in stone. Mitigation measures to minimize significant environmental effects, such as traffic, are “infeasible” if they cannot be accomplished within a reasonable time, taking into account economic, environmental, social and technological factors. Secondly, the Court concluded that the 1998 Plan EIR adequately identified traffic impacts from the airport industrial area and mitigation measures, even though the only mitigation it required was funding an area traffic study, not funding the actual improvements if the study concluded they were necessary. Mitigation measures must be roughly proportional to the impacts of a project. Since there was evidence that project traffic impacts were a “minor” contributor to area traffic problems, funding the costly improvements was not proportional and therefore did not require mitigation. The County will continue to impose a traffic mitigation fee on plans for area development, which so far has raised more than $2 million for internal roadway improvements. Third, the Court held that the EIR contained an adequate discussion of housing impacts and mitigation, but that its discussion of significant impacts due to water availability and wastewater treatment was not adequate. Since preparation of the EIR American Canyon has constructed its own sewer plant and there is capacity to service the Plan area (American Canyon south of Fagan Creek and Napa Sanitation District north of Fagan Creek). American Canyon has also contracted with Vallejo for extra water and, according to the Napa Flood Control and Water Conservation District, is in good shape for both short and long-term water supply. Finally, the EIR failed to adequately consider project impacts on steelhead trout in the Napa River. The County unwisely elected not to amend the Plan EIR to discuss this and incorporate necessary mitigation (stream setbacks, riparian cover, prevention of siltation/sedimentation). Aside from finding these deficiencies in the EIR, the Court also held that the 1998 Plan was invalid because it was in conflict with the County’s General Plan. The General Plan is the highest and most authoritative document in the hierarchy of County plans and ordinances. All specific plans or zoning ordinances are subordinate to it and must be consistent with the dictates of the General Plan. What is particularly significant about the Court’s ruling is that the 1998 Plan was inconsistent because it frustrated the general “Goals” of reducing congestion and implementing a comprehensive circulation system set forth in the General Plan. The County argued these Goals were advisory only, but the Court concluded they were mandatory. The Court found the 1998 Plan failed to implement these Goals, contained no specific improvements to reduce congestion and to handle the increase in traffic from the project area without increasing congestion. This will be a challenge to the County, since it has concluded it lacks the funds and authority to make congestion-reducing improvements on adjacent State highways 221, 29 and 12. It may be that the County will have to amend its General Plan Goals to recognize this reality before it can approve a “consistent” Specific Plan for the airport area. The Court also concluded any new Specific Plan must include affirmative steps to mitigate project impacts on housing and growth in order to be consistent with the General Plan. The result of the decision is that no pending projects may be approved under the 1998 Plan, as it is invalid and will remain so until properly adopted after certification of an adequate EIR. Processing of all project applications in the airport area by the County under the 1998 Plan have been processed under the 1986 plan. Each project must comply with the California Environmental Quality Act (CEQA), and several are required to prepare their own EIRs. The 1986 Plan remains valid and in force. There appears to be a lack of concern by the Napa County Board of Supervisors regarding the invalidity of the 1998 Plan, the invalidity of the General Plan, and, most importantly, the invalidity of the Housing Element of the General Plan. The monies spent on the 1998 Airport Specific Plan appear to be largely wasted. It appears to the Grand Jury that the resolution of the Housing Element has the highest priority. If the General Plan is to be updated, the Airport Specific Plan can be part of the General Plan update. Because of the invalidity of the Housing Element, and the General Plan and the Court’s determination of the invalidity of the Airport Specific Plan, property rights of owners county-wide are in great jeopardy. The Grand Jury is informed that a court could prohibit all building permits in the county until a lawful Housing Element of the General Plan is adopted and the General Plan is updated. The Grand Jury determined that the City of American Canyon spent $173,000 on attorney’s fees and that the County of Napa spent over $380,000 on attorney’s fees and consultants on the litigation in addition to the substantial cost of preparation of the 1998 Airport Specific Plan The Grand Jury is unable to determine the cost of lost staff time for either entity. PROCEDURES The Grand Jury interviewed members of the Napa County Board of Supervisors, members of the American Canyon City Council, members of Citizens for Honest Government, the Napa County Planning Director and staff, the American Canyon City Manager, Napa City Council members and members of the public.
F3
Traditional agricultural practices involving the application of toxic chemicals to soil can lead to cumulative chemical effects that contaminate the environment, threaten human health and compromise ecosystems. There is a growing trend among some County farmers that is resulting in a movement away from traditional chemical pesticides and towards a safer pest management approach. This concept of “Sustainable Agriculture” can provide agricultural product in a profitable way without creating pollution or risks to human health or environment. Sustainable Agriculture is "an integrated system of plant production practices that meet the needs of the present without compromising the ability of future generations to meet their needs" according to the Sustainable Agriculture Research and Education Program at the University of California, Davis. This Program was created in 1986 by CA legislature in response to concern about: • Protecting human health and wildlife in rural communities; • The environmental impacts of traditional agricultural techniques; • Profitability and success of small and family farming operations; and • Ensuring abundant, affordable and healthy farming product.
F4
Last year, more than 2,120,000 pounds of pesticide were used in Napa County, which ranked 22nd highest in pesticide use out of California's 58 counties. This represents a 10% decrease from the prior year. This is the third straight year that Napa County has experienced decreased conventional agricultural pesticide use. Three of the top five most-used pesticides or herbicides in Napa County: sulfur, glyphosate salt and copper hydroxide, are considered relatively safe to humans. The most commonly used chemical is elemental sulfur, which many believe is relatively safe for human contact and the environment. In fact, elemental sulfur is authorized for use by certified organic farmers. However, some observers still feel that there may be long-term health risks even with elemental sulfur use. Two others in the top five, methyl bromide and simazine, are among chemicals that most concern citizen activists: • Methyl bromide is a soil sterilant in gas form used prior to planting. It has been associated with human birth defects at low doses, and its use is closely regulated under the terms of Proposition 65: the State’s Drinking Water and Toxic Enforcement Act of 1984. • Simazine is a common herbicide used on grapes. It is categorized as a possible human carcinogen and endocrine disrupting chemical. It is a frequent ground water contaminant throughout the U.S. Some vineyard managers believe that most of the useful information on effective pesticide or herbicide choices comes from local dealers, marketing agents or word of mouth from other vineyard managers, rather than from our local government agencies.
F5
Watershed testing for ground and surface water contamination in Napa County done by State agencies over the past twelve years has shown undetectable levels of pesticide or herbicide. These tests are done on a random, unscheduled basis throughout high-risk areas in the county. State requirements vary from one time testing, annual testing or every three-year testing, depending on the chemical. Water is also tested for other contaminants, including pathogens, nutrients and sediment by these random tests. Currently the Department of Environmental Management (DEM) receives State funds of $26,000 per year plus additional tax revenues from local water districts for implementing these environmental health and safety regulations. However, neither DEM nor any other local Napa County agency is testing ground or river water for pesticide contamination at this time. According to the Director, this is in part due to DEM staffing shortages over the past several years. The State may take over the required testing in Napa County if DEM does not comply, and DEM could lose State and water district revenues for this testing. Currently, neither Sonoma nor Solano County agencies are doing local ground water testing; it is being done by the State.
F6
The Agriculture Commissioner, the Director of DEM and the Napa County Public Health Officer have investigated and found that there are no reports of any serious illnesses or injuries related to pesticide use in Napa County. There have been some mild eye and skin irritations or allergic reactions of a temporary nature in some pesticide workers. The Grand Jury finds that there is no data or evidence to link pesticide exposure with any chronic or long-term illness or injury affecting Napa County residents. Specifically, the Grand Jury finds that there is no evidence to indicate a clustering of cancer or higher incidences of cancer among residents in agricultural areas of the county or among agricultural workers.
F7
In last year’s NCFD Budget, there was a large surplus of revenue available at the end of the fiscal year. This is money that was not disbursed, but was “rolled over” into this year’s budget and is kept in an interest bearing Fire Protection Fund (1080). The amount of money in this fund was $3,278,727 as of 1/31/2002 according to the County Auditor.
F8
The FCD has proceeded to attempt to collect the cost of contamination clean up from the original polluter where possible.
F9
If the Federal share and the State share are not forthcoming, and in fact pay only that which is now budgeted by the FCD, there will be a short fall of revenues that will increase the cost of the project beyond the amount of the shortfall.
Recommendations 12
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R1Future litigation between the County and its cities or other governmental bodies should be avoided at almost any cost. In the future, staff should be directed to find a solution short of litigation. Mediation between the staff of the County and the staff of the City should be required before resorting to litigation. Response Requested from American Canyon City Council Board of Supervisors County Executive Officer County Planning Director
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R2Napa County's Board of Supervisors and its responsible agencies need to urgently address the issues raised by the invalidity of the Housing Element, and the invalidity of the General Plan. The County has hard choices to make regarding growth, development and housing and it is up to the elected officials to take stands and make policy rather than maintain their current "wait and see" attitude. Response Requested from Board of Supervisors County Executive Officer County Planning Director AGRICULTURAL PESTICIDES - NAPA COUNTY The Grand Jury reviewed agricultural pesticide use and regulation in Napa County. This included the following: • Monitoring proper use, storage and application procedures by licensed commercial pesticide users; • Enforcement of regulations required by local, State and Federal laws, and the penalties imposed for violations; • Pesticide exposure risk data - worker and public health issues; • Effects on the Napa County watersheds – ground water, streams, water reservoirs and the Napa River; and • Efforts to publicly educate farmers, agricultural workers, and our citizenry regarding pesticide risk issues including information on alternatives to traditional pesticide use SUMMARY OF FINDINGS 1. The Grand Jury found no evidence of any significant, repetitive or extensive violation of agricultural pesticide use in the county. Where appropriate, it appears that violators have been assessed warnings, penalties and/or fines and corrected their misuse. 2. The Agricultural Commissioner has created a Glassy-Winged Sharpshooter (GWSS) task force of citizen activists and experts and created a GWSS work plan for Napa County. The Grand Jury commends the Napa County Agricultural Commissioner for his leadership. 3. “Sustainable Agriculture” practices have helped result in a reduction of traditional chemical pesticide use in Napa County of 10% from the prior year. Pesticide use has dropped in Napa County in 2000 for the third straight year. 4. Watershed testing by the State for ground and surface water has shown undetectable levels of pesticides. Local agencies are not performing water testing required by State agencies. 5. The Offices of the Agricultural Commissioner, the Department of Environmental Management and Public Health are watching for and have found no reported cases of any serious pesticide related health issues in Napa County. There are no studies or data to indicate a clustering of cancer or higher incidences of cancer in agricultural areas of the county or among agricultural workers.
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R2aNVUSD should improve awareness of the condition of the schools. There are existing parent-teacher organizations at each school which should be encouraged to take a more active role in inspecting the school and reporting safety hazards or other substandard conditions to the District. Response Requested from Superintendent of Schools Napa Valley Unified School District Board of Trustees
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R2bNVUSD must find ways to provide adequate facilities for all of the students. The Board of Trustees should reorder its priorities in apportioning the limited funds it controls to improve the physical plant of the District. Response Requested from Superintendent of Schools Napa Valley Unified School District Board of Trustees
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R3The AC Office should take the lead in encouraging Napa County farmers to learn about and implement Sustainable Agricultural concepts and techniques. Research and data available suggest that Sustainable Agricultural techniques are an important means towards prevention of the adverse effects of traditional chemical pesticides and fertilizers, while still operating profitable and productive farms. Sustainable Agriculture should be one of the subjects for the Public Awareness Week in Recommendation #4. Response Requested From Napa County Agricultural Commissioner Napa County Board of Supervisors
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R4The Grand Jury acknowledges and applauds County farmers’ efforts at reducing traditional pesticide and herbicide use. The Department of Environmental Management and The Office of the Agriculture Commissioner should consider a “Public Awareness Week” for increased dissemination of information regarding pesticide, health and clean water issues in Napa County. The Napa Board of Supervisors needs to be kept abreast of recent changes in State and Federal laws regarding use and monitoring of pesticides in our county. Response Requested From Napa County Agricultural Commissioner Napa County Director of Environmental Management Napa County Public Health Officer Napa County Board of Supervisors
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R5Napa County DEM should comply with State requirements for chemical contaminant testing in ground and surface water at this time, and make use of the funds received for this task. Napa County DEM needs to comply or the testing should be turned over to State regulators. Response Requested From Napa County Director of Environmental Management Napa County Board of Supervisors
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R6The Public Health Officer, Agriculture Commissioner, and DEM should maintain public education programs which encourage reporting and detection of both acute and chronic illness related to pesticide exposure. All reasonable requests for investigation of illness or injury caused by pesticides should be fully investigated and tracked by a joint database and good communication between all three agencies. Property owners’ requests for no pesticide use on their property should be honored. No forced spraying should be considered for areas around schools, daycare centers, hospitals, retirement homes, parks, tourist areas, medical and vet facilities, creeks and other bodies of water. Chemically sensitive persons, such as cancer patients, AIDS patients, asthmatics, and others with compromised immune systems should be notified prior to any spraying. Response Requested From Napa County Agricultural Commissioner Napa County Director of Environmental Management Napa County Public Health Officer Napa County Board of Supervisors AUDITOR – COUNTY OF NAPA The Napa County Auditor-Controller Department provides accounting and internal audit services to various county government entities, including but not limited to county agencies, or special districts. It utilizes two major software systems provided by Megabite (Property Tax) and PeopleSoft (Financial, Payroll/Personnel) and many in-house developed spreadsheets and databases tools, mostly developed on Microsoft Corporation product platforms. This department works closely with the County Treasurer’s Office and the County Assessor. The County Auditor-Controller Department provides to county managers financial reports including budget information. SUMMARY OF GRAND JURY FINDINGS AND RECOMMENDATIONS 1. Bartig, Basler & Ray (B.B &R.) is the certified public accountant firm contracted by the County to provide the independent audit of the county’s annual financial statements. The current contract is for a period of three years for the Fiscal Years Ending (FYE) 2002, 2003 and 2004 and was renewed in 2001 . The County should contract with a different independent audit firm in the next cycle to ensure freshness of opinion. 2. The County is currently working to implement and comply with Governmental Accounting Standards Board Statement No. 34 (GASB- 34), which establishes new financial reporting requirements for state and local governments. In compliance with GASB-34, the Board of Supervisors established with the adoption of Resolution No. 01-83 a policy for budgetary controls that defines the value of fixed assets. The Grand Jury finds that the County’s decision to expense physical assets individually valued at less than $5,000 that excludes those assets from the Balance Sheet will understate the property, plant and equipment assets held by Napa County. 3. In addition to its duties as the independent auditor, B.B. & R. also provides accounting services to the County, specifically in implementing GASB-34. The Grand Jury recommends that different entities perform the independent audit function and accounting service, especially when establishing Pro-Forma Financial Statements and new accounting standards. 4. Napa County maintains many trust fund accounts. Problems with trust fund accounting have occurred in the past. Internal reports used by the Auditor-Controller’s Department to manage these Trust Funds demonstrate that the accounting processes are inadequate. The County Board of Supervisors should require that the independent auditor review the Trust Fund accounting system, its internal control structure and procedures, and report to the Board of Supervisors those matters which it considers to be material or worthy of consideration. PROCEDURE I. The Grand Jury obtained the following information: • The County Auditor-Controller was interviewed. • The lead independent audit manger from B.B.& R. was interviewed. II. The Grand Jury reviewed: • County of Napa Management Reports For the Years Ended June 30, 2000 and June 30, 2001. • County of Napa Annual Financial Report For the Fiscal Years Ended June 30, 1999; June 30, 2000; and June 30, 2001. • General Ledger Organization Budget Status, County of Napa For the Periods: 1 to 12, FY 2000; 1-12, FY 2001; and 1 to 6, FY 2002. • General Ledger Organization Revenue Status, County of Napa For the Periods: 1 to 12, FY 2000; 1 to 12, FY 2001; and 1 to 6, FY 2002. • General Ledger Detail Transactions- Napa. For Fiscal Year 2001, Period 1 to 12. • Trust by Program of Trust Fund List(s) as of 6/30/01 and 12/31/01. • An exhibit listing all of the County’s bank accounts prepared by the Treasurer-Tax Collector. • An exhibit prepared by the Auditor-Controller’s Department listing all of the local government entities of Napa County and the identified responsibilities (either accounting services or internal audit) of the Auditor-Controller. • An exhibit of General Fund Budget Transfers for FY 2000-2001. • GASB-34. • Resolution No.01-83. Resolution of the Board of Supervisors of the County of Napa State of California. Policy For Budgetary Controls. • Contracts between B.B.&R. and The County of Napa for audit services for the FYE 1997, 1998, 1999, 2000, 2001 and FYE 2002, 2003 and 2004.
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R7This Grand Jury does not have the resources to examine the reasons for this surplus or to recommend a resolution to the question of excess funding in Fund 1080. The Grand Jury recommends that the Board of Supervisors appoint a team of County staff including an auditor to look into the issue and make recommendations to the Board including changes to the MOU if necessary. Response Requested From CDF Napa County Auditor/Controller Napa County Board of Supervisors Napa County Executive Officer NAPA RIVER FLOOD CONTROL PROJECT The Napa County Flood Control and Water Conservation District (NFC) has historically been an agency of the County of Napa operating as a division of the Napa County Department of Public Works. In 1998 the voters of Napa County passed an increase of one half of one percent in the sales tax to fund the local share of a $180,000,000 (estimate at the time) Napa Flood Management Plan designed by the U.S. Army Corps of Engineers with great input from Community Coalition for Napa Flood Management. The NFC sponsored the Plan. In the process, the NFC Board of Directors, formerly the Board of Supervisors was changed to add to the Board of Supervisors the Mayors of each of the County’s Cities and a City Council person from the City of Napa. In 1999 bonds were sold in the amount of $43,650,000 to finance the start of the plan. SUMMARY OF GRAND JURY FINDINGS AND RECOMMENDATIONS
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R8County and City agencies should undertake an investigation into the possibility of setting aside some public land where the homeless could legally park their vehicles overnight, together with the provision of rudimentary services such as bathroom facilities. Response Requested From Napa County Health and Human Services Napa City Council Napa County Board of Supervisors Napa Police Department CITIZEN COMPLAINTS TO THE GRAND JURY GENERAL When the Grand Jury Final Report is published, a Citizen Complaint form is included with it. Every year the Grand Jury receives several completed forms and also complaint letters that describe problems and may request investigations of various government entities. These letters are a valuable source of information for a grand jury, particularly as it begins its term and is deciding on its investigative agenda. PROCEDURES In the case of the 2001-2002 Grand Jury, such letters and citizen complaints were considered initially by the full Grand Jury and then, if the Jury decided it was warranted, either routed to the Grand Jury committees that were investigating related subject areas or a new committee was formed to review the matter. Some complaints were integrated into the investigative work of the various Grand Jury committees. The investigating body reported back with a recommendation for disposition, which was then decided upon by the full Jury. The complaint topics were often addressed, either directly or indirectly, in individual agency findings and recommendations incorporated in the Grand Jury Final Report. Some complaints and the issues they raised were judged to not fall under the jurisdiction of the Grand Jury. All citizen complaints receive a response from the Grand Jury as to what disposition was decided upon by the whole Grand Jury. CITIZEN COMPLAINT FORM Note: all matters brought before the Grand Jury are required by law to be kept confidential. Date ______________________ Napa County Grand Jury P.O. Box 5397 Napa, CA 94581 Dear Members of the Grand Jury, I wish to bring the following to your attention: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Sincerely, Name: __________________________________________ Street: __________________________________________ City: ____________________________________________ Phone: __________________________________________ Note: Name, Address, and Phone Number are not required, but may be helpful in the Grand Jury
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R9The FCD staff should report to the Financial Oversight Committee, the Board of Supervisors, the various City Councils and the public through the media the nature and extent of the shortfall and the contingency plans to meet it. Response Requested From (to Findings 2, 3, 4, 6 and 9) Napa County Flood Control and Water Conservation District Board NAPA-VALLEJO WASTE MANAGEMENT AUTHORITY A joint committee of the Napa and Solano County Grand Juries was appointed to review the activities of the Napa Vallejo Waste Management Authority, a Joint Powers Authority (JPA). SUMMARY OF FINDINGS AND RECOMMENDATIONS
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R04-058.1M Revenues have exceeded estimates by $7.1 million in three years. The original assumptions included reimbursement from the State of California of $75,000,000 and $30,000,000 from the Corps of Engineers for acquisition and relocation. In July 2001, FCD reported to the Financial Oversight Committee that it feared that the State and the Corps would not meet the assumptions and reduced them to $33,500,000 and $7,000,000 respectively. If the new assumptions are correct it will take longer to complete the project which will increase the cost of the project. While the Financial Oversight Committee and the staff of the FCD are aware of the problem, the problem seems to have failed to get the attention of the Board of Supervisors, the City Councils and the public. California and Federal law and the State and Federal Constitutions dictate the process by which land is acquired by the FCD and by which relocation expenses are paid. It is an antiquated process designed to make sure that the property owner is paid the fair value of the property and the taxpayer is paying no more than the fair value of the property. The Grand Jury reviewed seventeen of the files of properties, which have been settled. FCD uses thirteen different very qualified appraisers, four of whom are from Napa. The FCD uses a consultant to negotiate with the property owner. Occasionally the property owner’s estimation of the value of the property in question is much higher than the consultant’s, sometimes double or more. Sometimes the property owner’s opinion is correct. In the absence of agreement, the process results in dueling appraisals and bitterness on the part of the property owner. The process is not a friendly process. It is conducted by the FCD’s consultants and not by FCD personnel except when negotiations break down and FCD staff is asked to step in. The process has improved since the first cases were settled and both sides learned when their positions were unreasonable. PROCEDURE In July 2001, the Grand Jury determined to look into the progress of the Project in terms of income, expense and projected income and expense and the acquisition of property and payment of relocation expense. The Grand Jury interviewed FCD executives and FCD consultants and property owner’s and tenants whose properties were either threatened with condemnation or against whom condemnation actions had been filed, and tenants who were entitled to relocation assistance. The Grand Jury visited sites slated for condemnation and interviewed the people involved in negotiations for acquisition of properties required for the Project. FINDINGS AND RECOMMENDATIONS Finding 1 Income from the sales tax is running ahead of projections by 7.1 million dollars in three years. Recommendation 1 None. Finding 2 In the files examined by the Grand Jury there was no instance in which the original offer was less than the appraised value. In only one instance was there an appraisal with a range of value and in that instance the initial offer was at the highest of the range. There is no instance in which a settlement was less than the original offer. Recommendation 2 The Flood Control District should continue to make its original offer at the highest appraised price. Finding 3 The antagonism and bitterness that resulted from condemnation is the fault of the process and not the fault of FCD personnel. The better the process is understood by the property owner, the less the bitterness. Recommendation 3 While the antagonism and bitterness are not going to go away, a better effort should be made by FCD to educate the property owner about the process and about how the property owner might go about determining the value of the property. Finding 4 Negotiations for the acquisition of property and relocation expenses are conducted by consultants hired by the FCD and only rarely by FCD personnel. Recommendation 4 FCD personnel should not be involved in original negotiations nor in every negotiation, but should be able to step in when the situation appears hopeless. Finding 5 FCD personnel have conducted themselves honorably and with integrity in the land acquisition process, and the grand jury commends them for their conduct. Recommendation 5 None. Finding 6 The Grand Jury finds that, other than going permanently out of business, one of the worst thing that can happen to a business that is located on property needed for the Project is to be closed from the time of the order of possession until a new location can be found. Temporary closure is devastating to most businesses. Recommendation 6 The Board of Supervisors of the County and the Planning Commission and Planning Staff of the County and the City Councils of the County’s Cities and their Planning Commissions and their Staffs should make every effort to accommodate applications for relocation of businesses closed by the Project, including but not limited to giving priority to such applications over other applications. Finding 7 In several instances the appraisal identified a property as having no value because the cost of toxic clean up exceeded the value of the property. In each instance if the FCD found that the current owner had not placed the contamination on the property it offered the full appraised value without deduction of any clean up cost. Recommendation 7 None. Finding 8 The FCD has proceeded to attempt to collect the cost of contamination clean up from the original polluter where possible. Recommendation 8 None. Finding 9 If the Federal share and the State share are not forthcoming, and in fact pay only that which is now budgeted by the FCD, there will be a short fall of revenues that will increase the cost of the project beyond the amount of the shortfall. Recommendation 9 The FCD staff should report to the Financial Oversight Committee, the Board of Supervisors, the various City Councils and the public through the media the nature and extent of the shortfall and the contingency plans to meet it. Response Requested From (to Findings 2, 3, 4, 6 and 9) Napa County Flood Control and Water Conservation District Board NAPA-VALLEJO WASTE MANAGEMENT AUTHORITY A joint committee of the Napa and Solano County Grand Juries was appointed to review the activities of the Napa Vallejo Waste Management Authority, a Joint Powers Authority (JPA). SUMMARY OF FINDINGS AND RECOMMENDATIONS Finding 1 The JPA has no staff of its own and is operated by the Napa County Department of Environmental Health staff in a very efficient manner. No single person is assigned full time to the JPA. Two or three of the Department’s staff are assigned to the JPA along with their regular duties. Recommendation 1 The JPA should continue to be operated without a staff of its own. Finding 2 The County made a decision in 1993 to build the transfer station to avoid the liability for closure of another landfill. The JPA made a decision in 1997 to switch from truck to rail to truck to truck, because liability for closure of another landfill was no longer a problem. Recommendation 2 None. The County made the correct decision in each case. Finding 3 The JPA is paying Allied Waste Inc. (Allied) $54 a ton. It includes the cost of operation of the transfer station, transporting the waste to Keller Canyon and the fees charged by an Allied subsidiary to dispose of the waste at Keller Canyon. Because the $54 per ton is not broken down, it is not possible to tell if Allied is making more than it should on the cost of the operation of the transfer station, the transportation of the waste and the cost of disposal. The actual cost of burying the waste should be $8 to $9 per ton. Recommendation 3 The JPA should allow no further extensions of Allied’s contract, and when the contract expires in 2007 the JPA should open Allied’s contract to competitive bidding. The Request for Proposals should require each bidder to itemize the various elements of the bid: 1. Operation of the transfer station 2. Transportation from the transfer station to the landfill 3. Disposal of the waste at the landfill The JPA could then award the low bid on operation to the lowest bidder for operation. If the low bid for transportation was from a different bidder the low bidder on the operation could be allowed to meet the transportation bid, or there could be bids awarded to different entities to take advantage of the low bid. The low bid for disposal at the landfill could come from yet another bidder. In any event it will be possible to issue a contract at a price which combines the lowest bid for the cost of operation of the transfer station, the cost of transportation and the cost of disposal at a landfill. BACKGROUND The Napa Vallejo Waste Management Authority, a joint powers authority (JPA) was created in 1993 to build and run a transfer station located south of the Napa County Airport in Napa County for handling of solid waste. The County of Napa was the lead decision maker. The decision was made because the County, at the time, was unable to avoid the liability of the cost of closure of the landfills in the area. The JPA was created by the County of Napa, the City of Napa and the City of Vallejo in response to the imminent closure of the American Canyon Landfill. At the time the City of American Canyon was not yet incorporated, but the waste stream from the area of the future city went to the American Canyon Landfill which is located in the unincorporated area of Napa County. The City of American Canyon joined the JPA in 1997 after it was incorporated. The JPA acquired the American Canyon Landfill by agreeing to pay the cost of closure. Closure involves three aspects; (1) placing a cap over the landfill, (2) extracting the methane gas and (3) collecting the leachate. The capping is 66% complete and the gas collection is 66% complete. The JPA has $8,451,335 in cash or cash equivalents to complete the closure and $1,055,464 in an account that the State of California requires have $1,000,000 in it to deal with unforeseen environmental problems. Closure should be complete by 2005. In order to pay for the transfer station the JPA sold $14,165,000 of 1994 Revenue Bonds which mature in 20 years. At the time the JPA was called the South Napa Waste Management Authority. It subsequently changed its name to the Napa Vallejo Waste Management Authority. The principal and interest on the bonds have been paid as they have come due and the balance on the bonds, as of August 15, 2001, is $10,945,000. The debt service is $1,285,035 per year. The bond underwriters required a coverage ratio of 1.25 which means that the income of the operation must exceed expenditures by 125%. In fiscal year 1999-00 the actual coverage was 1.62 and in 2000-01 the actual coverage was 1.49. The bond underwriters projected a constant waste stream of 170,00 tons. The JPA projects a constant waste stream of 190,000 tons. The March 28, 2000 rating of the bonds by Fitch IBCA is “A-“. The JPA is operated by a board of directors of four, one from each of the four entities comprising the JPA. The transfer station was completed and opened in the 1995-96 fiscal year. The JPA contracted with Rabanco to operate the facility. The two Napa garbage companies and Vallejo Garbage Company delivered the waste to the transfer station where Rabanco received it, loaded it on railroad cars, and shipped it to the state of Washington. In 1990 the State of California mandated a reduction in the waste stream going to landfills of 25% by the year 1995 and 50% by the year 2000. Recycling facilities were constructed in both Napa County and the City of Vallejo. In the 1995-96 fiscal year the transfer station handled 156,000 tons of waste. In 1999-2000 the tonnage was 199,266 and in 2000-01 207,388 tons. The rate paid by the garbage companies when the transfer station first went into operation in 1996 was $60.27 per ton. In 1999 Rabanco was purchased by Allied Waste, the second largest waste management company in the U.S. The sale had to be approved by the JPA. The JPA approved the sale, but conditioned its approval on a rewrite of the Rabanco contract to lower cost disposal and transportation options and change the annual CPI escalator. The contract had called for an annual upward adjustment for Rabanco of 85% of the CPI. Allied, through an asset swap, had acquired a landfill near Pittsburg in Contra Costa County called Keller Canyon from Browning Ferris Industries (BFI) before acquiring Rabanco. Allied later purchased all of BFI. Allied, with the consent of the JPA, changed the operation of the transfer station from a truck to rail operation to a truck to truck operation and now hauls the waste from the transfer station to Keller Canyon. The JPA can now reasonably rely on Allied’s financial position to pay the cost of closure of Keller Canyon, something the County could not do in 1993 when the decision to build the Transfer Station was made. Allied has received two one year extensions on its contract from 2005 to 2006 on one occasion and 2006 to 2007 on a second occasion. The first extension was in exchange for the change from rail to truck and for a reduction in rate from $70 a ton to $54 a ton. The second was in exchange for Allied making improvements to the transfer station, improving the internal traffic flow, providing additional scales, a recycling and reuse area, and extension of operating hours, and personnel to operate the recycling and reuse area. The Grand Jury learned that the rate for Potrero Hills Landfill is $39.50 a ton, Fresno is $46.33 a ton and Redwood Landfill (Sonoma County) is $38.89 a ton. The numbers are not meaningful because it cannot be determined what is included. Napa Garbage Service has been advised by Republic Waste, who now owns Potrero Hills, that it will take waste at $20 per ton. The Grand Jury has been advised that the cost of burying waste should be from $8 to $9 a ton. The Contra Costa County Joint Powers Authority runs a transfer station in Martinez. It is paying Allied $30.94 a ton for disposal at Keller Canyon. In October 2000 the City of Fairfield issued a “Request for Proposals” for its waste disposal. Allied bid January 8, 2001. Its bid included disposal at Keller Canyon at $36.19 per ton. The bid included the cost of purchasing trucks, hauling to the Martinez transfer station, transfer station costs, hauling from Martinez to Keller Canyon and lastly disposal at Keller Canyon. PROCEDURES The Grand Jury interviewed the Director of the Department of Environmental Health, Department of Environmental Health staff and visited the Transfer Station. It interviewed staff at the City of Fairfield, and the Contra Costa County Waste Authority and various individuals employed in waste disposal in Northern California. It reviewed the “Request for Proposals” prepared by the City of Fairfield and Allied’s response. Finding 1 The JPA has no staff of its own and is operated by the Napa County Department of Environmental Health staff in a very efficient manner. No single person is assigned full time to the JPA. Two or three of the Department’s staff are assigned to the JPA along with their regular duties. Recommendation 1 The JPA should continue to be operated without a staff of its own. Response Requested From Napa County Department of Environmental Health The Napa – Vallejo Waste Management Authority Napa City Council Napa County Board of Supervisors Finding 2 The County made a decision in 1993 to build the transfer station to avoid the liability for closure of another landfill. The JPA made a decision in 1997 to switch from truck to rail to truck to truck, because liability for closure of another landfill was no longer a problem. Recommendation 2 None. The County made the correct decision in each case. Response Requested From None Finding 3 The JPA is paying Allied $54 a ton. It includes the cost of operation of the transfer station, transporting the waste to Keller Canyon and the fees charged by Allied to dispose of the waste at Keller Canyon. Because the $54 per ton is not broken down, it is not possible to tell if Allied is making more than it should on the cost of the operation of the transfer station, the transportation of the waste and the cost of disposal. The actual cost of burying the waste should be $8 to $9 per ton. Recommendation 3 The JPA should allow no further extensions of Allied’s contract, and when the contract expires in 2007 the JPA should open Allied’s contract to competitive bidding. The Request for Proposals should require each bidder to itemize the various elements of the bid: 1. Operation of the transfer station 2. Transportation from the transfer station to the landfill 3. Disposal of the waste at the landfill The JPA could then award the low bid on operations to the lowest bidder for operations. If the low bid for transportation from the transfer station to the landfill was from a different bidder the low operations bidder could be allowed to meet the transportation bid, or there could be bids awarded to different entities to take advantage of both low bids. The low bid for disposal at the landfill could come from yet another bidder. In any event it will be possible to issue a contract at a price which combines the lowest bid for the cost of operation of the transfer station, the cost of transportation and the cost of disposal at a landfill. Response Requested From Napa County Department of Environmental Health The Napa – Vallejo Waste Management Authority Napa City Council Napa County Board of Supervisors NAPA VALLEY UNIFIED SCHOOL DISTRICT EXECUTIVE SUMMARY The committee on Napa Valley Unified School District investigated the physical condition of a number of local schools and the impact of bond monies spent over the last several years to improve the physical condition. The committee determined that the improvements made by Measure Y and Proposition 1A money were much needed and much more remains to be done. The recent bond expenditures primarily went to new roofing, heating/ventilation/air-conditioning, and electrical wiring upgrades. These were essential projects. The scope of these projects did not, however, address other important needs. SUMMARY OF FINDINGS AND RECOMMENDATIONS: 1. Future bond measures should contain the requirement of the appointment of oversight committees comprised of citizens who have a commitment to the improvement of the school structures. Committee members should be allowed to participate in decisions made about improvements although they should not have veto power. 2. Napa Valley Unified School District facilities remain in need of substantial repair and improvement. Some facilities are in violation of various building codes, health and safety codes and the Americans with Disabilities Act. The District appears to be aware of these problems but does not have the funds to comply with applicable code in many instances. The Board of Trustees needs to reorder its priorities in allocating the limited funds available to it and focus more on code compliance. 3. School drop-off and pick-up areas are unsafe. Plans should be made to reconfigure and enlarge these areas for the safety of the students. 4. There are problems with work orders not being addressed in a timely manner and problems that go unnoticed and unrepaired. The District should consider further staffing and naming a single employee with the primary duty of conducting frequent site inspections and checking on possible safety and health issues.