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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.

El Dorado County Grand Jury • 2009-2010

El Dorado County Grand Jury 2009-2010 Happy Homestead Cemetery District Payment for Temporary Personnel

Published: April 22, 2010 5 pages

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⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.

⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.

Findings 7 findings

There are two governing California Government Code (CGC) Sections that address these issues and the inherent potential for significant conflicts of interest. CGC §1090 provides in pertinent part that: “Members of the Legislature, state, county, district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Nor shall state, county, district, judicial district, and city officers or employees be purchasers at any sale or vendors at any purchase made by them in their official capacity.” California Government Code §1099 (a) further provides that: “(a) A public officer, including, but not limited to, an appointed or elected member of a governmental board, commission, committee, or other body, shall not simultaneously hold two public offices that are incompatible. Offices are incompatible when any of the following circumstances are present, unless simultaneous holding of the particular offices is compelled or expressly authorized by law…(2) Based on the powers and jurisdiction of the offices, there is a possibility of a significant clash of duties or loyalties between the offices.” However, retroactive claims that increase compensation are considered unconstitutional.

According to the California Constitution, Article 11, Section 10 (a): “A local government may not grant extra allowance to a public officer, public employee, or contractor after service has been rendered.” During the Grand Jury group interview with the HHCD Board of Directors, it was suggested that they renegotiate the contract with the employment agency to correct the retroactive pay increase portion. The Board was also requested to ask the employment agency for a claim, as required by law, for the $3,000 for Release of Responsibility (Settlement Agreement). Later that week the Board Chairperson sent a package of documents to the Grand Jury. The cover letter essentially ignored the advice of the Grand Jury and stated that they would continue to pursue their original goal of trying to convince the County to pay for the Settlement Agreement and the retroactive pay increase.

The HHCD entered into retroactive contracts increasing the compensation rate for temporary workers. The California Constitution prohibits retroactive contracts that increase compensation because they are considered to be a gift of public funds;

The HHCD signed the Agreement dated 8/12/09 which would pay the employment agency $3,000 to settle all claims. A copy of the claim which resulted in the signing of the Release of Responsibility was requested by the Grand Jury but never received;

According to testimony received, both of the above actions were encouraged by the HHCD legal counsel;

The HHCD continues to seek compensation for the employment agency. In a letter dated April 20, 2010 and signed by the Foreman of the Grand Jury, the HHCD was specifically asked for:  “A copy of the claim form which resulted in your agreement for services as clerk of the board for Happy Homestead Cemetery District;  A copy of the contract with [the employment agency] which was in effect on February 9, 2009; and  A copy of a letter from County Counsel re: [the former Board Chairperson’s] position on the board of directors, as recorded in your minutes of Dec. 11, 2003.” The Grand Jury also specifically asked the HHCD to phone the Grand Jury if any of these requested documents did not exist. No phone communication was received. The HHCD Board of Directors also did not respond to the April 20, 2010 Grand Jury letter. The HHCD Board of Directors failed to respond to the Grand Jury.

The Grand Jury considered objections to any requirement being imposed on special districts to publish key information about governance and operations on the Internet. Those objections were lack of time, budget, cost of establishing and maintaining a website, and the alleged lack of citizen use.

Recommendations 5

R1

The HHCD must show why the claim for a retroactive charge for temporary employment services is legal and does not constitute a gift of public funds.
R2

The HHCD must show why the payment for the proposed Settlement Agreement is legally justified.
R3

The HHCD must explain why payment of either claim is not in direct violation of California Government Code §1090 and §1099, as well as the California Constitution, Article 11, Section 10(a).
R4

The El Dorado County Auditor/Controller should not pay either the retroactive charge or proposed settlement amount until or unless the HHCD meets the requirements stated in the recommendations above. This should be determined by both the County Counsel’s Office and the Auditor/Controller. RESPONSES Responses to both numbered findings and recommendations in this report are required in accordance with California Penal Code §933 and §933.05. Address responses to: The Honorable Suzanne N. Kingsbury, Presiding Judge of the El Dorado County Superior Court, 1354 Johnson Blvd., South Lake Tahoe, CA 96150. Responses are required from the Happy Homestead Cemetery District Board of Directors, the El Dorado County Counsel’s Office, and the El Dorado County Auditor/Controller.
R5

The Department Director should report to the County Administrative Officer to review progress on the conversion of the computer programs.

No Responses Found 3

Government entities assigned to respond to this report. No response documents have been linked in our database.

County of El Dorado Agency

El Dorado County Auditor-Controller Elected County Office

Happy Homestead Cemetery District Special District