Bullock Investigation Update

Another version of the alleged threat made by Supervisor Jeff Bullock is beginning to emerge, according to sources close to the investigation.

Bullock reportedly did not threaten Planning Director Kim Hunter following the Nov. 12 meeting at City Hall, as previously reported based on a source within the Sheriff‘s Office.

He apparently did not say to Hunter, “If I had a gun I would shoot you,” the Modoc Independent News has learned.

At the time of this posting both the Alturas Police Department and Modoc County Sheriff’s Office are continuing their investigations that Bullock allegedly made threatening statements toward other county employees.

The supervisor has been representing Modoc County at a conference held by the California State Association of Counties in Monterey this week and has not been available for comment

Supervisor Bullock Under Investigation

(Supervisor Bullock, in happier times last spring, at the Modoc Farm Bureau's Annual Lunch. File Photo)

Modoc County Supervisor Jeff Bullock is under investigation following an alleged threat he made last week to a county employee.

The incident, in which Bullock reportedly said, “If I had a gun I would shoot you,” occurred following a public workshop meeting Nov. 12 at Alturas City Hall and involved Kim Hunter, county planning director.

The alleged incident came to light when June Roberts, a member of the county planning commission, and Sean Curtis, the county’s resource analyst, became concerned and made a report to the Sheriff’s Office, according to one source.

Neither Roberts nor Curtis were apparently witnesses to the alleged threat.

Both the Alturas Police Department and Modoc County Sheriff’s Department are conducting investigations and taking statements from witnesses, according to sources that asked for anonymity because they were not authorized to discuss the case.

Bullock has been attending a California State Association of Counties conference in Monterey this week and was not available for comment at the time this report was posted.

While no one was available at the Alturas Police Department to confirm or deny an inquiry was under way, a source within the Sheriff’s Department said that office was investigating the alleged offense.

The incident apparently took place in the hallway of City Hall following what one witness described as a “heightened emotional state” by those present that included critical statements of the federal government by Supervisor Patricia Cantrall.

Under discussion at the public workshop was a report by representatives of the Federal Emergency Management Agency (FEMA) on an evaluation of the Alturas flood plain and national flood insurance.

-- Ray A. March

Stockton Offers Solutions

On Black Tuesday, Nov. 3, Modoc County Health Services Director Karen Stockton speaking as the Operations Sections Chief of the fledgling and soon-to-be disbanded Modoc Incident Management Team, offered what she termed a compilation of “specific raw brainstorming ideas” to the BOS on strategies to reduce the cash flow crisis.

She emphasized that the ideas presented were not recommendations because “data has not been analyzed, verified or finalized.” Up to that date the Modoc County political climate had been overwhelmed with questions and speculation that circled and swirled like fall winds. Few solutions had come to light.

Stockton's points included:

- Develop cash flow procedures.

- Information distribution - improved communication system.

- Work hours without interruption.

- All departments to use standardized forms.

- Collaborate with IT to see if a link is possible
for each department to electronically enter their own OTD’s for payment.

- Obtain consultant input on internal controls.

- Immediately implement standardized departmental line-item tracking
with constant monitoring of percentage of year status - include
narrative for deviations in departmental percent of year expended.

- Implement balanced budget controls.

- Formalize the process for prioritizing expenditures.

- Implement a process for appropriate, legal short-term
borrowing within the treasury.

- Fix errors that put us here - P&P changes.

It has not been reported whether the subsequent deactivation of the Modoc Incident Management Team by new CAO Rick Rudometkin has effectively put Stockton’s ideas on hold, or if Stockton’s solutions are under consideration by the yet unannounced new team.

Editor’s Note: Efforts to reach Stockton for confirmation of the status of her presentation to the BOS were unsuccessful at the time of this posting. Please watch for further coverage of this topic.

Modocgate - Charlton’s Fatal Briefing

(This photo was taken Tuesday, Nov. 10, just minutes before Mark Charlton (left) was dismissed as CAO by the Modoc County Board of Supervisors. Supervisor Dan Macsay, (right) voted with the unanimous decision.)

    Mark Charlton sat in his home office pouring over the numbers the weekend before the Modoc County Board of Supervisors was to meet on Nov. 3, and the more he looked at them the more obvious it became.

    The county was in deep trouble. Deeper than anyone could imagine.

    Charlton, a retired U.S. Army Corps of Engineers executive, had been the county’s chief administrative officer for less than a year. In that time he exposed the stunning news that close to $20 million had been misappropriated from the Modoc County treasury.

    This was a revelation that slowly unraveled. As it became more and more apparent that the county’s treasury books weren’t in order, Charlton shared his findings with the board of supervisors.

    They said nothing publicly.

    This began in April. In June Charlton had gone public and the schools were the first to scream that some of their funds had been taken. They would not be the last. All fingers pointed to the board of supervisors and previous county officers.

    But soon Charlton would be the scapegoat. He could see it coming.

    So, that November weekend he prepared a report titled “Modoc County Finance Plan,” an innocent-sounding document loaded with tough challenges the board would have to face. At least that’s the way Charlton looked at the county’s bleak financial picture. What he saw was:

    The school funds were now in a separate account from the rest of the county, but that decreased the treasury’s liquidity.

    The state Controller’s Office had not only strongly rejected the last audit performed on the county’s books, it blasted the firm that conducted the audit and ordered a new one.

    The treasury balance was precariously low. Bills were being held, but payment problems persisted. Still, liquidity was decreasing.

    The chart Charlton was making clearly showed the county would not be able to make payroll as early as February.

    His call to action was to push the board into a three-pronged financing strategy: 1.) Call for a new audit, 2.) Seek short-term financing, and 3.) Go for long-term financing.

    “It is illegal to manage the treasury as a fund pool without proper authorization of temporary dry period loans,” Charlton wrote in his presentation. “All negative fund balances must be restored by June of each year. The immediate financial need is to have a sufficient monthly cash balance to make county payroll.”

    In his mind he stressed the word “illegal.” It was not only a matter of a board’s illegally using treasury funds, to Charlton, a man with a master s degree in theology, he was also challenging the board’s collective ethics. Would the supervisors stand and be accountable?

    “This is high, high risk,” Charlton wrote into his power point presentation. “There is no guarantee of success but this plan looks like the only viable option.”

    Before he was finished with his report that weekend Charlton was well aware that if he did not have the support of the board he would have to resign. And he did not have that support.

    His resignation came on Nov. 3 following his briefing of the board.

    -- Ray A. March
   

Bulletin Board

Shop Local

   
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    4 Corners wishes you and yours a Happy Thanksgiving!

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Community News
 
    Cold weather is on its way. TEACH has funding available for qualified households whose monthly gross income does not exceed the maximum guidelines. You must be a Modoc resident. Call 233-3111 for information.

    Take a Second, Make a Difference. 40 Assets. This Thanksgiving the Modoc County Prevention Collaborative encourages you to start a new tradition. Gather your family together to share stories. Made-up or real, long or short. Let the grown ups start to set the example and then go around the room. Tell stories about your own childhood or about your children. How they behaved when they were babies. Or stories about their pets. Make it fun. To find out more on how you can help your children call Tara Sheperd at 233-6319 or De Funk at 233-7128.
     

Tracking Modocgate

   The following are three new articles that chronicle the latest developments in the misappropriation of an estimated $20 million, resulting in Modoc County’s facing potential bankruptcy and the board of supervisor’s efforts to manage public information.

Rudometkin Keeping Busy

  Newly appointed on Tuesday, Nov. 10 as Modoc County’s CAO, Rick Rudometkin’s first assignment was to give the current and displaced CAO, Mark Charlton, his final check.

    Rudometkin’s second act that same day was to fire Charlton’s secretary, Paula Jessup.

    According to Modoc Independent News sources on Monday, Nov. 16 Rudometkin officially deactivated the Incident Management Team that had come forward to help solve the county’s financial crisis.

    There were reports that he would be appointing a new team, but this could not be confirmed because Rudometkin cancelled an interview set for today (Nov. 17) with the Modoc Independent News explaining he had a scheduling conflict.

    The original Incident Management Team (IMT) is made up of county employees and city representatives, including:

    Undersheriff Gary Palmer, De Funk from the Office of Education, Kelly Crosby, deputy director of public health, Susie Philpot from the ag department, Linda Wilson representing the treasurer‘s office, Tex Dowdy, Alturas city police, Assistant CAO Darcy Locken and Cheryl Kunert among others.

    They have been meeting regularly and training since 2007, under the leadership of Tony Richno, planning section chief, preparing for emergencies such as fire, flood, or natural catastrophe. When the state of emergency was declared by Undersheriff Gary Palmer on Thursday, Nov. 5, the original IMT was in place.

    As other county employees got wind of the fiscal crisis they asked to be added to the established team.

    The Incident Management Team had requested the BOS to consider and act on nine items including operating a public information campaign to instill confidence and demonstrate openness, gathering and analyzing financial data, and developing performance objectives for the IMT.

    But on Black Tuesday, Nov. 10, the BOS, acting on an emergency agenda item, set up a new Incident Management Team to be led Rudometkin, who now doubles as director of transportation and public works, with broad goals and objectives to re-form the team to meet the county’s plan and to eliminate the employees who were not part of the original team.

-- Barbara March

Modoc Pledges Unrestricted Revenues For Short-Term Plumas Loan

  As Modoc County struggles to find a clear path to financial stability there is at least one promising road sign -- and that is the possibility of a short-term loan from Plumas Bank.

    County representatives Supervisor Dan Macsay, Modoc Medical Center CEO Walt Beck and Treasurer Cheryl Knoch met last Friday (Nov. 13) with Plumas officers in what was later described as a “positive” exchange of ideas.

    The county is seeking $3 million to $4 million, reportedly to meet payroll in the coming months.

    For collateral it is pledging all of the county’s unrestricted revenues such as taxes, unrestricted state aid, fines, fees, and other unobligated revenue, according to an anonymous source who was not authorized to discuss the negotiations.

    The loan, if granted by Plumas, would come due in April of next year.
   

SV Hospital Not Alone

  Surprise Valley Hospital District will not be the only special district to see a cutback in assessment funds paid out by the county next month.
    Modoc County Treasurer-Tax Collector Cheryl Knoch confirmed that all agencies or districts that receive tax dollars will be on the same allocation of 50 percent in December, 40 percent in April and 10 percent in June.
    This includes school districts, Modoc County Office of Education, cemetery districts, fire districts, fish and game, county general funds, pest abatement districts, City of Alturas, California Pines Community Service District, Daphnedale Community District, waste water department, library, water master and a few other small public entities, according to Knoch.

Public Survey Blames BOS For Financial Crisis

Editor’s Note: An item that has been largely ignored by the Modoc County Board of Supervisors is the public survey taken on the Sunday prior to when the supervisors without debate between them rejected a call for a state of emergency.

    The survey contained five questions. The final  question was “Would you be in support of using the ICS Team Management in helping to resolve the county crisis?
    The overwhelming answer was “Yes.” There was only one reservation about its legality.
    For purposes of space, we are running the public’s response to the first question, which was:
    “With the current financial crisis in Modoc County please give us your opinion on what you think the problem may be?”
    Here are the answers to that question.
    -- Mismanagement by auditor and Mr. Maxwell.
    -- Perpetuation of the “good old boy” system. Lack of training and communication countywide.
    -- …the outcome of the board of supervisors’ lack of financial training and of management skills, not representing the public’s wishes, narrow self-interests and own agendas, lack of education and not understanding audit procedure.
    -- No one paid any attention to the situation that is happening. And the state and federal government has withheld dollars that the county depended on.
    -- The BOS hasn’t listened to the people.
    -- We have no definite direction. We need to quit pointing fingers and threatening stares. That is not productive. The problem is we are not working together.
    -- Mismanagement. Hospital.
    -- The BOS sweeping items under the carpet over a period of years. Entrenched ideas from the past because this is Modoc.
    -- Co-mingling of funds/fiscal mismanagement, need to remove all parties at the top in all areas, need “new blood” and “new eyes” to access the shortcomings of the current system and go forward with a cohesive new plan.
    -- Lack of accountability and ethics of the board.
    -- Former CAO and auditor had to be aware for a long time of funds being inappropriately used. Their intentions may have been good, but cannot be justified. Lack of oversight by board of supervisors. Wrong firm hired to do audit.
    -- Better management and department coordination within the county.
    -- Insufficient management. Deals that happen behind closed doors. Correct information not getting to management or management not willing to correct problems.
    -- Lack of leadership and management organization. Lack of sound judgment.
    -- Stubborn old-fashioned people unwilling to try new approaches. Back door politics, people don’t hold the BOS and county accountable. No grand design or plan.
    -- Mismanagement of money, dishonest department heads and BOS are liars and do what they want, not what’s needed. Money is altered to meet what they want.
    -- Lack of action by BOS.
    -- I believe that at least some BOS members have been and are now in a position over their heads, that some do not have the comprehension/skill level, education or other capacities to fulfill their duties. I also believe some may be stuck in a mode of wanting to convince themselves and their constituents that the current situation is not their fault and it is causing them to be unable to aid the county to move past this, to explore solutions. I do not feel that many of them allow the department heads who work for them to do their jobs. They disregard good advice.
    -- (continued)…I have questions as to why our past CAO did not declare the use of restricted funds. He, the auditor and/or the treasurer must have known. This practice must have been taking place for a long time.
    -- (continued)...I served as a fiscal officer of sorts in three of our county departments 20 years ago and it was my job to see and know where the money was at all tines.

Compiled by Ray A. March