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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.

Sierra County Grand Jury • 2013-2014

The City of Loyalton

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Findings 9 findings

F1 Page 25
In talking to the previous bookkeeper for the City, sufficient concerns were raised to warrant further investigations to determine if in fact funds are being used for improper purposes, i.e. funds from one account being used in another.
F2 Page 25
Our investigation found that the micro managing of employees resulted in scheduled tasks not being done on time resulting in additional costs to the city. Regular maintenance of the pumps at the sewer treatment plant was not done resulting in premature failure of pumps because the employees were assigned other tasks.
F3 Page 25
Because previous City Councils failed to monitor the financial status of the city and its expenditures including wages paid resulting in losses to the city, we are deeply concerned that reducing fees for water and sewer is short sighted when the costs to the city are unknown for the final repair of the sewer system.
F4 Page 25
The City has been saved from bankruptcy by the insurance settlement for employee misbehavior at the least and criminal embezzlement at the worst.
F5 Page 25
Likewise, without the luck of the USDA grant to pursue litigation against the contractors involved with the original construction of the sewer treatment system, the city would again be bankrupt as they would have no resources to pursue the litigation or to repair the sewer treatment system.
F6 Page 25
This lack of financial stability dos not bode well for the longevity of the City.
F7 Page 25
The fact that the members of the City Council cannot get their stories straight as to who directs the employees on a daily basis reinforces the allegations of a lack of clear communication to the employees as to their tasks and duties. This lack is further reinforced by policies and procedures manuals that are generally vague and unhelpful to the employees.
F8 Page 25
The fact that City Council members are acting as professional managers of the City without the knowledge commensurate with the position exposes the city to additional liability, whether it is the lack of knowledge of the safety requirements for application of herbicides or the possible toxic nature of material after a hotel or other building burns to the ground.
F9 Page 25
There appears to be no coherent policy for using volunteers, i.e. whether drug testing needs to be done (especially in the case of driving city equipment) or health checks to prevent high risk people from performing tasks dangerous to their health. The city is exposed to liability, and if the risk is not covered the city will be bankrupt shortly.

Recommendations 2