Editorial

“We Don’t Need No Stinking Financial Plan”

Why do we have a nagging feeling that Dan Macsay and his partners in misappropriating the treasury for nearly $20 million are going to skip town and stick us with the bill?

It’s because the Modoc County Board of Supervisors, of which Macsay is chair, is giddy with the elixir of new found money in the treasury -- the same treasury they milked for years, and the same treasury the state has said Macsay and partners must replenish -- or else.

It’s the “or else” that bothers us. In that mandate from the state resides the clue to why we have a nagging feeling that we the taxpayers are going to get stung.

Case in point:

Everyone was under the impression the supervisors had to refill the raided treasury cup and balance its books by June30 or the heavens would fall on it. They did not refill the empty cup and nothing happened.

The State Controller’s Office warned that if the money was not replaced, the county would surely go bankrupt. Nothing happened.

Now the state is a willing partner with Macsay & Co. in a cloudy deal that allows the board to take more money from a “reorganized” treasury -- at least reorganized in its terminology.

What they used to be called simply “restricted” funds, they now call “internal” and “external” funds.

We think it’s more akin to the old shell game. Why? Because there is nothing, absolutely nothing requiring the board to repay what will surely amount to $5 million or more before they are through this fiscal year -- all condoned by the state.

To paraphrase a Bogart movie, “Financial plan for repaying the treasury? We don’t need no stinking financial plan.”

-- Ray A. March

Ruby Pipeline Report
Vya Camp Still on the Books

Local rumors notwithstanding, the Ruby Pipeline Vya workers’ camp east of Cedarville is still “front and center in our plans.” This is the official word given to the Modoc County Daily News by Richard Wheatley, manager of media relations for parent company El Paso Corporation. Construction of the Vya camp cannot begin, said Wheatley, “until El Paso receives the Federal Energy Regulatory Commission (FERC) notice to proceed with construction.”

El Paso is waiting for FERC to review and approve El Paso's memorandum regarding Nevada’s criteria for historic, cultural and archeological resources. “Each state plan is different,” Wheatley explained, “we have to address the impacts of federal action on this area.”

For specific details go to www.rubypipeline.com, and Final EIS. Wheatley suggests reading Sections One and Four.

“We’re so close we can reach out and touch it. As soon as the final FERC approval comes through we’ll mobilize in a matter of days. It will take us six weeks to get the camp up and running. ”

What this means is that the proposed pipeline worker camp in Vya is still in the plans. Eighty of 160 leased acres in Vya will be converted to a camp for 600 workers, with 200 RV sites and 400 modular structures, kitchen and catering facilities, sanitation services, offices, recreation centers, fire suppression and waste facilities. Wheatley said wells will be used for water but did not provide any further details.

Workers will be shuttled from the camp to the work site. Wheatley anticipates they will average 10 hour days, six days a week. The camp is estimated to be used for eight months, or as long as the construction continues, probably through the winter months.

“Our target date is to have the pipeline completed by March, 2011,” he said.

Grand Opening for New VA Clinic in Susanville

The VA Sierra Nevada Health Care System opened the doors to its newest clinic, the Diamond View Outpatient Clinic in Susanville on May 3, 2010.  They are now pleased to announce that the official grand opening and ribbon cutting ceremony will be held on August 18^th at 1:00 p.m. at the clinic located at 110 Bella Way.

The VA Sierra Nevada Health Care System’s market includes 21 counties in northern Nevada and northeastern California, covering 116,000 square miles. Approximately 120,000 veterans reside in this region. The following sites support this market and comprise the Sierra Nevada Health Care System:  Ioannis A. Lougaris VA Medical Center in Reno, VA Sierra Foothills Outpatient Clinic in Auburn, California, the VA Carson Valley Outpatient Clinic in Minden, Nevada, the VA Lahontan Valley Outpatient Clinic in Fallon, Nevada, and now the Diamond View Outpatient Clinic in Susanville.

The VA Diamond View Outpatient Clinic serves Lassen, Plumas, and Modoc counties. The clinic provides non-emergent primary care, mental health, and ancillary support services during regular business hours (8:00 a.m. – 4:30 p.m.). Services not provided by the clinic (e.g. other Specialty Care, inpatient care, or specific diagnostic services) will be available at the Reno VAMC facility, other VA facilities, or locally under contract. For questions or for more information Veterans can call (530) 251-4550.

2010 Economic and Demographic Workshop
Modoc County - Alturas

Understanding Your Local Economy

Dr. David Gallo Ph.D., Resident Economist at the Center for Economic Development, and Professor Emeritus at California State University, Chico, will present and discuss economic and demographic information impacting Modoc County including: current state, national and local conditions; housing market conditions; forecasts of economic recovery, long-term population and income growth; local economic base industries; and his current study on renewable energy.

Dr. Gallo will answer questions specifically related to your county and encourages active participation. This information, according to Dan Ripke, Director of CED, "improves the ability of local businesses and community leaders to successfully plan their future."

Pre-registration of $50 is required for the workshop, and guarantees the attendee a free copy of our NEW Modoc County Quick Facts Document ($50 value).

Date: Tuesday, August 31, 2010 Time: 9:30 am - 12 pm Location: Faith Baptist Church 810 W. Carlos St., Alturas, CA 96101 To Register Online: Download A Registration Form: Click Here Visit our Web site to view additional workshops: www.cedcal.com/workshops

BOS Approves Move On Treasury
Worried About Possible Litigation

The Modoc County Board of Supervisors voted 4-1 today, July 27, to draw down its treasury in order to keep county offices open and temporarily avoid bankruptcy, but there is a hidden reservation in its seemingly unorthodox decision.

Relying on the state constitution and government code, the board gave authority to Auditor Darcy Locken and Treasurer Cheryl Knoch to make temporary transfers of funds in the treasury to the county’s general fund.

Locken and Knoch have said the treasury funds to be used are not under the jurisdiction of special districts, therefore they can legally transferred by the board.

Ironically, the board is relying on the very treasury from which it illegally misappropriated an estimated $20 million and has for the last year been under order of the State controller’s Office to repay.

While the temporary use of treasury funds has the apparent endorsement of state finance officials, the Board of Supervisors and county officials are privately worried the move may result in a lawsuit, according to a source who spoke on the condition of anonymity because he was not authorized to speak for the board.

Waiting in the wings is Auerbach vs. Board of Supervisors (1999), a decade-old court decision that upheld the Los Angeles County Board of Supervisors’ practice of making temporary transfers from its treasury under Government Code Section 25252 and Article 16 of the state constitution.

These are the same two sections of law the Modoc County Board of Supervisors is trusting will legally support its use of funds normally considered restricted for specific use.

Plaintiffs in the lawsuit against the Los Angeles County Board of Supervisors argued that the board did not have authority under the law to make transfers from the treasury to the county’s general fund to cover cash flow deficits. A lower court and an appellate court ruled that the county did have the authority.

What concerns Modoc County supervisors and county officials is the possibility that the court ruling in Auerbach vs. Los Angeles could be renewed.

“Even if the Los  Angeles Board of Supervisors won in the trial court, the decision could be challenged on appeal. The appeal would be heard in a different district not bound by Auerbach,” a source familiar with the Auerbach vs. Los Angeles case explained.

Rational given by CAO Rick Rudometkin and Locken at the board meeting was the transfers from the treasury are necessary in order to avoid bankruptcy. Various department heads have said privately they consider this new idea to be blackmail.

There is no provision in the board’s action for when the funds, estimated to reach $4 million by November, must be repaid, which raises various questions:

What does temporary mean, how will the county repay the treasury, will the county actually repay the treasury, and is it legal to use the money to keep afloat a rapidly sinking general fund?

There are also rumblings from county department heads that the board’s decision to take treasury funds does not provide for accountability.

“How can they track the funds in the treasury, who’s going to do it?,” asked a department head who spoke on the condition of anonymity due to the sensitive nature of the issue. “It’s like having a check book full of checks but no money in the bank. They don’t know which funds in the treasury are cash, how can they track what they‘re going to take. Any department heads worth their salt should be checking with the state on this.”

-- Ray A. March and Barbara March

Bullock Recall Attempt Falls Short


Stephanie Northrup, clerk of the board, notified Alturas realtor Gordon Dick yesterday that the “Recall Supervisor Jeff Bullock” campaign failed to get enough qualified signatures to be placed on the November ballot.

Dick, along with Davis Creek rancher Betsey Ingraham, coordinated volunteers in the communities of New Pine Creek, Davis Creek, Modoc Estates and from the eastern portion of Alturas to gather signatures. They had a short time frame, from June 25 to July 19 to turn in signatures to qualify for the November ballot. The recall group turned in 324 signatures by the deadline but as of July 26, at least 25 names had been disqualified.

“I have until August 19 to verify them all, but as of now there are at least 25 that are not good,” Shannon Hagge deputy recorder, clerk and an elections official, told the Modoc County Daily News.

Dick speculated that the recall fell short because the voter addresses were not correct and the voter rolls may not been updated since former elections officer Maxine Madison retired. Hagge responded to this claim and said, “It’s the voter’s responsibility to notify us if they have a change of address. I have no way of knowing unless someone notifies us.”

Dick says he’s not happy eating crow, “but what the heck, I did it, and I’ll do it again.” He went on to say that that his group will try again when the special election for Senator Cox’s seat is set.

“I’m relieved it’s over,” said Supervisor Jeff Bullock. “I still don’t understand why they’re trying to recall me.

“Now I can focus more on things like economic development and help to straighten out the financial mess we’re in,” Bullock stated.. “It takes more than a few months to fix things.”

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Lightning Strikes Continue on the

Modoc National Forest

For the second day in row lightning strikes continued to ignite wildfires on the Modoc National Forest. As of 9:00 P.M. on the 26^th of July there are 82 confirmed fires. The largest of these fires, the Peak Incident, has grown to 75 acres. It is located just south of the Lower Klamath Wildlife Refuge and near Sheepy Ridge. Both aerial and ground forces were used throughout the day on this fire, but it remains active.

Throughout the day two hundred wildland firefighters, 14 engines, five handcrews, two tankers, five helicopters, two air attacks, and one lead aircraft actively engaged the multitude of fires that have been named the Modoc Lightning Complex Fire (CA-MDF-0343).  

Based on the numbers of fires, resources committed, and weather predictions for the remainder of the week, Acting Forest Supervisor, Robert Trujillo made the decision to request a Type 2 Incident Management Team.  Northern California Geographic Area Coordination Center has dispatched Nor-Cal Team 1, led by Incident Commander Kent Swartzlander to assist with the Modoc Lightning Complex fire.

Rudometkin Papers

Editorial

Editor’s Note: After months of stalling and under the threat of a lawsuit by the First Amendment Coalition, Modoc County officials have finally produced the personnel records of Rick Rudometkin. The files, while sparse, reveal he has no qualifications for holding the job as the county’s chief administrative officer.


It will come as no surprise to close observers of the on-going fiscal fiasco starring Modoc County, that an examination of the personnel files of CAO Rick Rudometkin (pictured, right) say next to nothing about the person holding down the top job in the county, but they say a lot about the board that hired him.

There is no documentation in Rudometkin’s files that remotely supports his ability to carry out the duties of a chief administrative officer -- particularly at a time when the county is embroiled in a treasury scandal of its own making.

When Mike Maxwell, an alum of the road department (now headed by Rudometkin) retired as CAO at the end of 2008, Rudometkin quickly applied to fill the vacancy, which would move him from director of transportation to the CAO desk. That was on Aug. 18, 2008.

In his application letter to Avery & Associates, the firm hired by the board to perform an executive search, Rudometkin rationalized that his current position had prepared him to move up to the CAO job.

At the time of his application Rudometkin had been director of transportation less than a year. Prior to that he was streets manager and public works inspector for the City of Dana Point.

Recognizing his brief tenure as transportation director, he wrote in his letter of application, “I have produced noteworthy innovative solutions and decisions in a multitude of areas within time and budget constraints with great success. I get things done.”

He did not specify what those “noteworthy innovative solutions” were in his letter to Avery. However, he did characterize himself as the “go to guy for some of the departments in the county when they need help or need something solved.”

Among the qualifications for the chief administrative officer position, as listed by Avery, are a bachelor’s degree in public or business administration and “at least five years of progressively responsible management experience in a public agency…a master’s degree is preferred.”

Although Rudometkin’s files indicate he has a BA in business management, he was not a finalist for the job and Avery did not recommend that the board consider hiring him.

Instead the board hired Mark Charlton, who holds three master’s degrees -- one each in  civil engineering, economics and theology.

It was Charlton who resigned when it became apparent the board would not stand accountable for misappropriating treasury funds and would not endorse his plan for financial recovery.

It was Rudometkin who the board first placed as interim and later as the county’s full time CAO, replacing Charlton. (See April 5, 2010 blog posting).

That action, in which the board failed to search for a qualified CAO or even go back to Avery for a review of its contract, is the telling clue to the board’s dysfunctional handling of the public trust -- let alone the treasury.

What’s at risk here is the county’s solvency and the threat of bankruptcy. Together, the board and Rudometkin have exhibited questionable actions motivated by their indiscriminate ambitions.

In the meantime the board has been spending taxpayer dollars that are now reaching into the millions to compensate for services that could have been performed by Charlton or anyone with the proper credentials.

-- Ray A. March

BOS To Raid Unguarded Funds


The Modoc County Board of Supervisors may have found a loop hole in the law as it desperately looks for a way to impress the state with its new-found fiscal management practices.

Undiscovered until late last week are sections in the state constitution and the state government code that allow the board to take money from restricted fund accounts that do not have a watch dog governing board.

What this means is the supervisors, with CAO Rick Rudometkin in the lead, apparently intend to borrow money from such county departments as mental health, public health, roads and alcohol and drugs.

The board will hear Rudometkin’s recommendations at its regular meeting tomorrow, July 27.

Departments such as mental health, public health, roads and alcohol and drugs provide state-funded services, but are unguarded by independent boards of directors such as those common in special districts like schools, cemeteries and fire.

State law allows for the board to make transfers from treasury funds that are not under the jurisdiction of a special district.

That’s the loop hole.

Department heads are meeting today to air their reactions to a proposal that conceivably will impact the services they provide.

There is an estimated $5.7 million in restricted funds that the board can access, according to Treasurer Cheryl Knoch, who said a portion of the money would be used to make employee payroll in August.

Knoch said the drawdown on the “internal” portion of the treasury would not impact the operations of the affected departments.

“Our first priority is that they are providing the services,” Knoch told the Modoc County Daily News Blog.

She anticipated the county will spend an estimated $ 4 million from the treasury pool by November.

Funds taken from restricted treasury accounts that fall by default to the board because they are not protected by other jurisdictions must be repaid by the end of the fiscal year, June 30, 2011, according to state law.

The Board of Supervisors is searching for ways to convince the state to loan it a total of $14.5 million to replace money it misappropriated from the treasury and to make up a deficit cash flow projection for the year.

Without funding from either the state or the “found” money in the treasury the county will be forced to declare bankruptcy, and has hired an attorney to prepare for that eventuality.

-- Ray A. March and Barbara March

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Still have Questions? 

Please attend our Healthcare District Forum

Wednesday, July 28, 6pm in the Niles Theater

Or call Save Our Hospital Office 233-3295

Byrne Wins McClintock’s Vote of Confidence

(Left to right: Laurie McClintock, Congressman Tom McClintock, Supervisor-elect Geri Byrne, McClintock Chief of Staff Igor Birman and Alturas Mayor John Dedrick)

Supervisor-elect Geri Byrne of Tulelake, seeking to be included in the Modoc County Board of Supervisors’ financial discussions with the state, has the endorsement of Rep. Tom McClintock.

“I have confidence that hope is on the way with Geri,” McClintock told the Modoc County Daily News during a brief stopover at the Cedarville Airport where he debarked yesterday on his way to a political fundraiser at the Bare Ranch.

“I have every confidence the county fiscal problems are in good hands with her,” he said and added the caution that voters have to be careful about the people they are electing.

Asked if the federal government might come to the financial aid of Modoc County, McClintock said the first priority is oversight of the Secure Rural Schools Act. Modoc County is a recipient of funding through that Act.

“The federal government has to make good in the schools,” McClintock said referring to the Secure Rural Schools Act.

Pressed if he thought the federal government would intervene in the county’s search for funding to replace $12.5 million it misappropriated from the treasury and to bolster its cash flow account in order to make employee payroll, McClintock was less than promising.

“The federal government is bankrupt,” McClintock said. “It’s mostly operating on borrowed money and that cannot be sustained.”

-- Ray A. March