Call It What You Will
BOS Cans Duncan

In still another puzzling turn in the saga of the Modoc Medical Center and the related fiscal crisis of Modoc County, the Board of Supervisors on Tuesday decided not to renew the employment contract of interim hospital chief executive officer Bob Duncan.

The closed session decision, which was unanimous, was made without public explanation and while there are clues to the “firing,” there are also a number of questions left unanswered.

Duncan’s contract was last renewed May 4 for a period of two months, coinciding with the end of the fiscal year, June 30. Voting against Duncan at the time was Chair Dan Macsay.

Supervisor Jeff Bullock, presently facing a recall petition, told the Modoc Independent News he thought Duncan was doing a good job at the hospital, but said he voted along with the other supervisors not to renew Duncan’s contract explaining, “it would have been futile” to vote against the other board members.

“I think he’s been good for the county,” Bullock said. “There is a difference between a dominating business style and one, like Duncan’s who expected his managers do their jobs.”

Clue No. 1 -- Dominating business style
Macsay, always reminding the public that he is an ex-Marine, strongly criticized Duncan at the May 4 meeting of the board, telling him, “You need to take the bull by the horns. You need to see the grave situation we are in. Compassion doesn’t equal up to revenue coming in.”

The ad hoc Save Our Hospital committee (SOH) expressed dismay at the board’s move in not renewing Duncan’s contract. “Duncan was in strong support of the hospital district and now they are not renewing his contract,” said a spokesperson for the SOH. “This goes back to Supervisor Patricia Cantrall’s lashing out at the SOH,” the spokesperson said alluding to why the SOH was snubbed in the recent naming of district board directors.

Clue No. 2 -- Supervisor Patricia Cantrall.

On Feb. 23 Cantrall, livid over the SOH’s filing a complaint with the District Attorney’s Office asking for an investigation of the county election’s department and the Board of Supervisors over the delay in setting a date for a hospital district ballot measure, told SOH member Judy Mason, “Don’t expect to count on me.” Later, she told the Modoc Independent News, “After what I’ve done for them. I helped raise $2,000 for that committee and they do this,” she said pointing to the complaint to the DA. “As far as I am concerned they can go to hell.”

Duncan was closely aligned to the SOH and in support of the proposed hospital district, which will be voted on by mail ballot Aug. 31, as he stated in his departing message to hospital staff..

“It is my hope that the community recognizes the importance of MMC and approves the formation and funding of the proposed hospital district,” Duncan wrote. “This will go a long way in securing the future of the hospital.”

Still to be heard from is the Monday Night Group, which has threatened to seek a restraining order against the county if it makes any moves that would jeopardize the services of either the hospital or law enforcement.

Don Demsher, on hearing that the BOS had terminated Duncan immediately put the matter on the agenda for the Monday Night Group’s next meeting, June 28.

“We can’t make a comment until we collectively form a position on this,” Demsher said. “Duncan will be part of our discussion which will include the entire issues surrounding the hospital.”

-- Ray A. March and Barbara March

Penny Wise, Pound Foolish
An Analysis

“Someone who is penny wise, pound foolish can be very careful or mean with small amounts of money, yet wasteful and extravagant with large sums.”

When it comes to high dollar figures, the Modoc County Board of Supervisors is clueless in doing any math that might save taxpayers’ money.

Obvious examples of this are the extraordinary salaries paid to consultants such as Richard Arrow, who the supervisors hired as a smoke screen to impress the state that they had an actual chief financial officer.

Another glaring irritation in the public’s eye is Rick Rudometkin, chief administrative officer with apparently no credentials for the job. At least none have been produced when requested by the First Amendment Coalition.

The list could on to include the board’s illegal misappropriation of nearly $20 million from the treasury, which it continues to do in the face of vehement public opposition.

Slipping through the fiscal crack at the moment is the ever escalating costs of two audits ordered by the State Controller’s Office. To date the cost of these audits is $775,280.

One might ask why the huge increase, and the answer from county officials has been because the county did not have proper policies and procedures for keeping adequate books so the outside auditors had to work overtime.

What goes unnoticed is that each time the board has approved an increase in auditor’s fees -- from $190,000 to $775,280 -- the supervisors automatically capitulated without ever asking one simple question.

The question is, “Is this a negotiated fee, or are we paying sticker price?”

We can answer that one for the fiscally dysfunctional board. You paid the sticker price.

Now we are trusting this same board to negotiate with the state for a $13 million short-term loan while pursuing through a bond underwriter working on commission a $15 million long-term bond sale, and negotiating with the employee unions for reductions in benefit packages.

-- Ray A. March

Public Critical of BOS Hiring Practices
Macsay Gets Rattled

The Modoc County Board of Supervisors continues to come under attack for its managerial practices of hiring top executives who do not have verified qualifications.

In particular is the matter of naming Rick Rudometkin chief administrative officer and then entertaining a proposal to hand him the title of chief executive officer -- all without any evidence that he has the experience and background to hold either position.

It should be noted that the First Amendment Coalition continues to pressure Rudometkin and the Board of Supervisors not only to present his credentials qualifying him to hold the CAO position, but also the files revealing the process in which he was hired.

Rudometkin, through county counsel John Kenny, has not provided any information except a cursory resume.

Throughout the board’s June 22 meeting there were criticisms from the standing room only audience that the supervisors were either on the verge of acting illegally or were once again displaying poor management if they approved a proposal by Rudometkin to change his job title from CAO to CEO.

Examples:

Ben Zandstra: “There has been no public hearing on the budget when public confidence is low and there is a lack of transparency.”

Don Demsher: “There is no long-term management for the county, at least no evidence that the public is aware of. There is a lack of well-qualified people at the top in this county. The county must get experienced management at the top or this matter (of fiscal crisis) will not get resolved.”

Pam Couch: “Your actions are squeezing out the last bit of life remaining. You can’t spend money you don’t have. You need help from the outside.”

Gail Russell: “I am appalled you would create a CEO with a CAO name. You shouldn’t be doing this.”

Jeff Solomon: “You should table this for a week. You have not listened to your attorney. Rick Rudometkin does not have the financial background.”

Jim Halverson: “The only way to get the law changed (to name a CEO) is to go to the people for a vote.”

Examples of Rudometkin’s apparent lack of financial skills include when he turned to Ken Hedrick, an outside bond underwriter, to make the report on the county’s clandestine meeting with officials at the State Treasurer’s Office and had Darcy Locken, his assistant, make the preliminary budget presentation to the board.

The subject of job qualifications became so contentious that at one point Chair Dan Macsay became confused, misunderstood the results of a board vote and had to be corrected by the audience.

In the end the board voted 3-2 on an amended motion to stay with the CAO title instead of changing it to CEO. Shorty Crabtree and Patricia Cantrall voted no because the proposal would be binding for 15 years as part of a list of covenants the supervisors must adopt before proceeding with the sale of $15 million in bonds to replenish the treasury.

Both Crabtree and Cantrall have consistently been opposed to indebting the county for 15 years through a bond sale.

BOS Accused of Lying

The Modoc County Board of Supervisors was accused today, June 22, of lying to the Monday Night Group.

The accusation came from Alan Hopkins a member of the ad hoc oversight committee, and was strongly punctuated by Realtor Janie Erkiaga.

“We’re disappointed the Monday Night Group was not included in your trip to Sacramento last week,” Hopkins told the board. “On Tuesday (June 15) you said you would let us know and you did not. Instead, you took Ken Hedrick, your bond guy.”

Erkiaga was more blunt. “I’m more than disappointed, I’m p-----,” she informed the supervisors. “You lied to the Monday Night Group. What you’ve done sucks.”

The accusations came during a report from Hedrick -- and not from Rudometkin -- on what occurred during the joint meeting of county and state officials at the State Treasurer’s Office.

The Monday Night Group is made up of volunteer local businessmen and includes Dan Macsay, who is chair of the Board of Supervisors. The ad hoc committee has participated in past meetings with state officials. Macsay gave no response to why he did not include the Monday Night Group this time.

Chief Administrative Officer Rick Rudometkin, who was in the county contingent last week to Sacramento to try and convince the State Treasurer to underwrite a $13 million loan to the county, declined to comment on the accusations from Hopkins and Erkiaga.

Hedrick, who is working on a commission-based agreement with the county to sell an estimated $15 million in bonds in order for the board to replace money it misappropriated from the treasury, has been the lead person in dealing with the state on the county‘s behalf rather than county officials.

Apparently not included in the meeting with state officials was Richard Arrow, the current contracted chief financial officer for the county. His contract expires June 30.

Neither Hedrick or Rudometkin would specifically reveal what transpired at the meeting other than Hedrick’s comment that “everything is on hold until the state comes back.”

No reasons were given for why the county is apparently holding the discussions with state officials confidential.

Grand Jury Numbers Slashed by BOS

Against an overwhelming majority voice opposed to reducing the size of the grand jury, the Modoc County Board of Supervisors voted 3 to 2 to slash the investigative panel from 19 to 11 people.

The action came at the request of presiding Judge Fritz Barclay who told the board the reduction would save the county an estimated $2,000 to $3,000 annually.

Opposed to reducing the number of grand jurors by half were District Attorney Gary Woolverton, Judy Mason of Alturas, Alan Hopkins, a former grand jury foreman, and Sharon Crabtree, among others.

Each speaker told the board that the grand jury was the only official oversight body to investigate the county and the supervisors themselves. A reduction in the panel would place an extra burden on the jurors.

Prepared to also speak against the reduction was Pam Couch, another former grand jury foreperson, but she was not recognized by Chair Dan Macsay.

Voting against the slash in panel numbers were Supervisors Shorty Crabtree and Patricia Cantrall Jeff Bullock, Dave Bradshaw and Macsay voted in favor.

MMC Board of Directors Named

The Modoc County Board of Supervisors announced the new board members for Modoc Medical Center at its June 22 meeting. Chosen by the supervisors through a process reportedly consisting of taking volunteer names, a point system and final confirmation of a desire to serve, the new board members are:

Jim Cavasso

Dottie Green

Paul Lemke

Bob Radky

Jeff Solomon

Dick Steyer

Dennis Tate

Important Notice

In response to the countless unanswered questions about the county fiscal crisis being asked by the readers of the Modoc Daily News Blog or by those attending Modoc County Board of Supervisors meetings, help is on the way.

The Monday Night Group has offered to be the resource for anyone with a question related to the on-going county fiscal emergency and how it is being handled by the Board of Supervisors, its appointees or elected officers.

All you have to do is to address your question to the blog c/o Monday Night Group. We will review it for good taste and post it under the subject heading it is addressed to. For example if an article such as “Re Bail Out -- State Non-committal” prompts a question, that’s where you should file it.

All questions will be monitored by members of the Monday Night Group. Their answers will come to us as a comment which we will post promptly.

-- Ray A. March