Modoc County Stalls On Rudometkin Files

Modoc County has yet to meet a second request from the First Amendment Coalition (FAC) seeking personnel records and files related to the hiring of Modoc County’s chief administrative officer Rick Rudometkin.

In a telephone conversation 10 days past the legal time to respond to the FAC’s request seeking access to Rudometkin’s records, the county’s legal counsel, John Kenny, said the files were difficult to access because the former CAO’s office was closed, according to Judy Alexander, FAC attorney.

The Modoc County Board of Supervisors closed the office Nov. 10 when it named Rudometkin interim CAO and directed him to fire Mark Charlton, who had previously given the board his resignation after it failed to support his plans for financial recovery and stand accountable for misappropriating an estimated $20 million from the county’s treasury.

Rudometkin, who doubles as the county’s transportation director, has his office at the public works department. The former CAO office has not been occupied since Nov. 10.

Kenny asked Alexander to resend the FAC’s request, which she told the Modoc Independent News she did April 26.

In its second request, the FAC has asked for documents prepared by the county and also by Avery & Associates, the firm used by Modoc County to recruit eligible candidates for the chief administrator position. Its first attempt for records was answered by Kenny who said none existed.

The purpose of the document request, as outlined by FAC in a letter dated April 6 to the county, is to “obtain copies of records that outline, reflect and/or describe the procedures followed, factors considered, and documents considered by the Board in hiring Mark Charlton as CAO, Rick Rudometkin as Director of Transportation and Public Works for the County, Mr. Rudometkin as interim CAO, and Mr. Rudometkin as permanent CAO.”

By California law, the county had 10 days -- or by April 16 -- in which to respond to the FAC’s second request.

-- Ray A. March

Macsay Joins Monday Night Group

In a move smacking of either panic or political savvy, Dan Macsay, chair of the Modoc County Board of Supervisors, yesterday pushed his colleagues into agreeing with the Monday Night Group that other options to replacing $12.5 million to the treasury should be pursued in case the first choice of a long-term bond loan fails.

“Does it appear he’s near panic,” asked Alan Hopkins, a member of the Monday Night Group. “Yes, that’s what we see,” Hopkins said in answer to the question of why Macsay placed an item on the April 27 agenda for the sole purpose of getting the board to agree to name him as the county’s liaison to the ad hoc citizens committee.

Macsay’s move was a clear indication that the possibility the board’s plan to seek $12.5 million through the sale of bond may not succeed.

“I feel we need to pursue an alternative route should the bond not go through,” Macsay admitted in asking the board to appoint him as the county’s official representative to work on optional financing suggested by the Monday Night Group.

The board’s worry over getting funding through the sale of bonds was confirmed by Rick Rudometkin, chief administrative officer, who said there is now a 50 percent chance the bond money will come to the rescue of the county’s financial crisis.

“The CAO has to go with what BOS wants us to do,” Rudometkin said, “but we have to work together. We have to go with the bond to be legal, but there is a 50-50 question of whether we get the bond. So we have to go for the maximum.”

Hopkins and Macsay both agreed with Rudometkin, but Supervisor Jeff Bullock did not and the final 3-1 vote to appoint Macsay to represent the county in the Monday Night Group’s planning sessions was not without debate.

Supervisor Shorty Crabtree was absent and Bullock abstained when it came to a vote. Cantrall, Bradshaw and Mascay voted in favor of Mascay’s proposal.

In voting against Mascay’s appointment, Bullock said, “There are legalities the state has told us have to be followed,” Bullock said. “I’ve never been invited to a the Monday Night Group meeting. I don’t even know when they meet.”

Someone from the audience suggested the Monday Night Group meets on Monday nights.

Bullock was adamant in his argument that the Board of Supervisors should be taking the lead in seeking financing to replace the misappropriated money from the treasury, and not the Monday Night Group.

“I don’t want the Monday Night Group to take over," Bullock said.

Options proposed by the ad hoc citizens committee include a compressed timeline largely dependent on Rudotmetkin to fulfill. The timeline consists of an opening date of May 7 for the county to “secure listing of all accounts with deficits that should be repaid and the full amount of each deficit, and ending June 18 with the recommendation that funding agencies be contacted for the purpose of negotiating repayment or extending debt into the next fiscal year."

Coming under criticism from the Monday Night Group was Richard Arrow, contracted county chief financial officer.

“Arrow has focused exclusively on the bonds and has actively undermined the Monday Night Group’s efforts to assist the county in pursuing short-term financing and legislation that would relieve the county from the burden of immediate repayment,” the ad hoc committee stated in a prepared statement to the board.

Asked if the Monday Night Group was satisfied with the board’s most recent action, Demsher said it was, “But now, we have to do something.”

(See story below on Rudometkin's defense of Arrow).

-- Ray A. March

Arrow Attacked and Defended

Richard Arrow, contracted chief financial officer for Modoc County, was accused at yesterday's Board of Supervisor's meeting of undermining the efforts of the Monday Night Group in its effort to propose alternative funding to the county.  The county's resolute progression toward a long-term bond loan as the only and immediate way to replace $12.5 million to the treasury triggered a brief but intense debate yesterday.

At one point Janie Erkiaga, a supporter of the Monday Night Group’s efforts to convince the board that there are more financially efficient ways to replace the missing money to the treasury, said she questioned Arrow’s motives.

(See “Tougher Stance from Monday Night Group,” posted April 22).

“The bond is not a good idea,” Erkiaga told the board. “And Arrow, is he getting paid under the table? What’s going on? Let the Monday Night Group do the job.”

After Erkiaga left the meeting, CAO Rick Rudometkin came to Arrow’s defense.

“We have backed off Arrow’s services to save as much money as we can," Rudometkin said speaking from the podium. “Arrow will serve us better from Rocklin, where he lives, because he is closer to Sacramento and San Francisco where he is needed. And he is available by e-mail.”

Rudometkin also said because Arrow would not be traveling as often to Modoc County, money would be saved in mileage and lodging payments, but when asked if he had calculated how much money would be saved Rudometkin told the Modoc Independent News that he didn’t know.

Arrow was not present at the Board of Supervisors April 27 meeting.

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Modoc-gate: Complaint Filed Against BOS

A citizen’s complaint seeking reasonable cause for an investigation of Modoc County’s mishandling of finances has been filed with the State Controllers Officer.

“There was a golden opportunity for someone to have embezzled county funds or practiced some financial fraud,” the complaint, filed by Don Johnson of Alturas, alleges.

Named in the complaint, in addition to members of the Modoc County Board of Supervisors, are Mike Maxwell, former chief administrative officer; his assistant Lynn Buffington; Judy Stevens, former county auditor, Cheryl Knoch, county treasurer; and Alice Marrs, current auditor.

Supervisors named are board chair Dan Macsay, former board member Mike Dunn, Patricia Cantrall and Dave Bradshaw. All four were board members during the period that an estimated $20 million was misappropriated from the county treasury.

The Board of Supervisors is now under order of the State Controllers Office to replace the money by June 30 or face a multitude of serious penalties, including municipal bankruptcy.

The complaint also alleges that Maxwell served simultaneously as chief executive officer of the Modoc Medical Center during a time when the hospital began to go heavily into debt. Money taken from the treasury by the supervisors, without the legal authority to do so, was apparently used to off-set the debt.

“If it is found that a crime has taken place, or not, either way justice will have been served for the people of Modoc County,” Johnson said in his complaint.

Messages left with the State Controllers Office by the Modoc Independent News seeking comment on the filing were not returned as of Friday, April 23.

-- Ray A. March