Editorial
BOS Paints Itself Into A Corner
Rudometkin Waits In The Wings
Some of the candidates who supplied resumes for the position of Modoc County chief administrative officer would have been qualified in normal financial times, but these are not normal times.
The county desperately needs an infusion of money not only to meet the demand of the State Controller’s Office to repay the $12.5 million misappropriated from the treasury, but to keep the cash flowing in order to meet monthly payroll and daily expenses.
So, here is what the Board of Supervisors is facing in its desperate search for revenue and a financially-experienced administrator who can lead that search:
The municipal bond market is in free fall and interest rates are up, which is a much different scenario from this time last year when the potential for a bail-out bond for $12.5 million was within the realm of possibility.
The insurance claim against performance bonds covering various county officials is in the hands of the insurer who has asked for more information in what is sure to be a protracted claim investigation.
In other words, these are desperate times, normal solutions are off the table and the clock is ticking. Meanwhile the Board of Supervisors has refused citizen involvement in the CAO hiring process saying it is qualified and knows how to hire and fire.
Rome, or Modoc County, may not be burning yet, but it certainly is smoldering. Not surprisingly some of the members of the board see the potential train wreck and are focused keenly on hiring a financial wizard to guide them out of the misappropriation mess, but weeks are passing with no action on their part.
The treasury stands at minus $18 million and counting even though Modoc Medical Center is off the books.
It’s no secret that Alturas Public Works Director Chester Robertson is being considered for the CAO position. The game plan, as we understand it, is if Robertson were hired he would handle the budget and finances for the county. But his loyalty to the City of Alturas prevents him from leaving that job, at least right away. Which sets up a job-sharing situation or a division of duties.
Guess who is waiting in the wings?
Robertson would handle the budget and county finances, the other person would cover county administration. That other person is current CAO Rick Rudometkin, who would report to Robertson.
Defaulting to Rudometkin is a result of the Board of Supervisors painting itself into a corner because it blindly thought it could do the job without any outside help.
Now, time is running out. The fiscal year will come to a close in June. The county budget is precariously balanced by the inclusion of a non-existent $12.5 million loan. The treasury is unpaid. Cash flow will dry up as tax revenues slack off.
Contrary to the Board of Supervisors’ thinking, we don’t believe these two heads are better than one.
-- Barbara March
Thursday, March 31, 2011
Wednesday, March 30, 2011
Performance Claim Reaches
Top Insurance Echelon
The $12.5 million claim against officials alleged to have been involved in the misappropriation of treasury funds is now being reviewed by the county’s insurance carrier, according to an e-mail document obtained by the Modoc County Daily News.
An electronic memo between staff members at Chartis Insurance and Alliant Insurance acknowledges they have received the claim, but will be seeking more information.
“We are trying to better understand how the insured may have suffered a loss,” writes Chartis’ complex claim director for fidelity bonds, in a e-mail to Alliant Insurance.
“We noted an editorial in the Modoc County Independent News dated May 11, 2010 which indicated the school money was repaid. Any clarification or additional information that can be provided would be appreciated,” the Chartis representative added.
A fidelity bond is a form of insurance protection covering policyholders such as county officials for losses that they incur as a result of fraudulent acts by specified individuals, according to an Internet information resource. Fidelity bonds or performance bonds usually insure a business or municipality for losses caused by the dishonest acts of its employees.
Chartis, headquartered in New York City, is a global insurance company offering various protection including political risk and crisis coverage, according to its web site. Alliant Insurance Services of San Francisco ranks among the 15 largest insurance brokerage firms in the United States.
Alliant’s Chairman and Chief Executive Officer Tom Corbett on March 25 confirmed in an e-mail to Modoc County CAO Rick Rudometkin that his firm and Chartis had received the claim.
It is not known how Chartis or Alliant intend to obtain additional information or any clarifications. Former DA Gary Woolverton, who drafted the claim and is probably the most knowledgeable source for information, said he had not been contacted by either Chartis or Alliant.
It is known that Supervisor Dave Allan of Surprise Valley responded to Alliant stating he was aware they had the claim in their possession.
Chartis’ reference to the schools being repaid their losses as a result of the misappropriation refers to an estimated $300,000 that was returned to the county schools account after then CAO Mark Charlton discovered officials had been dipping into the treasury to cover departmental losses.
That payment is only a small fraction of the estimated $17 million to $20 million that appears to have been misused by county officials, according to findings in the insurance claim drafted by Woolverton.
Top Insurance Echelon
The $12.5 million claim against officials alleged to have been involved in the misappropriation of treasury funds is now being reviewed by the county’s insurance carrier, according to an e-mail document obtained by the Modoc County Daily News.
An electronic memo between staff members at Chartis Insurance and Alliant Insurance acknowledges they have received the claim, but will be seeking more information.
“We are trying to better understand how the insured may have suffered a loss,” writes Chartis’ complex claim director for fidelity bonds, in a e-mail to Alliant Insurance.
“We noted an editorial in the Modoc County Independent News dated May 11, 2010 which indicated the school money was repaid. Any clarification or additional information that can be provided would be appreciated,” the Chartis representative added.
A fidelity bond is a form of insurance protection covering policyholders such as county officials for losses that they incur as a result of fraudulent acts by specified individuals, according to an Internet information resource. Fidelity bonds or performance bonds usually insure a business or municipality for losses caused by the dishonest acts of its employees.
Chartis, headquartered in New York City, is a global insurance company offering various protection including political risk and crisis coverage, according to its web site. Alliant Insurance Services of San Francisco ranks among the 15 largest insurance brokerage firms in the United States.
Alliant’s Chairman and Chief Executive Officer Tom Corbett on March 25 confirmed in an e-mail to Modoc County CAO Rick Rudometkin that his firm and Chartis had received the claim.
It is not known how Chartis or Alliant intend to obtain additional information or any clarifications. Former DA Gary Woolverton, who drafted the claim and is probably the most knowledgeable source for information, said he had not been contacted by either Chartis or Alliant.
It is known that Supervisor Dave Allan of Surprise Valley responded to Alliant stating he was aware they had the claim in their possession.
Chartis’ reference to the schools being repaid their losses as a result of the misappropriation refers to an estimated $300,000 that was returned to the county schools account after then CAO Mark Charlton discovered officials had been dipping into the treasury to cover departmental losses.
That payment is only a small fraction of the estimated $17 million to $20 million that appears to have been misused by county officials, according to findings in the insurance claim drafted by Woolverton.
Modoc-gate: An Analysis
Not What Went Wrong, But Why?
Editor’s Note: As we neared the conclusion of the multi-part series on the $12.5 million insurance claim against numerous county officials the question “What Went Wrong?” was posed by former DA Gary Woolverton. In our analysis of the misappropriation of treasury funds based on Woolverton’s findings we go another step and ask, “Why Did It Go Wrong?”
What do we know about why the misappropriation of nearly $20 million in public funds happened?
The answer, while not readily apparent, is found in the assertions made in the insurance claim against various officials’ performance bonds, coupled with revelations from first hand sources.
It’s called absence of accountability.
Our trusted leaders not only snubbed us, but we the people failed in carrying out a constitutional role that entitles us to make our elected officials and their appointees accountable to us.
What is borne of such a neglectful imbalance?
In a less democratic country the result is dictatorship. In a democratic society the result is autocracy. Both are forms of managing the people’s interest by withholding information and using intimidation and fear as tools to reduce us into submission.
Naturally, autocrats like dictators, see themselves as benevolent, well-meaning men and women only interested in the good of the cause, but you can easily spot autocrats by their adamant reluctance to open-door government.
Ask your autocratic managers (there are still some in Modoc County government) why they did what did (for example, misappropriate the people’s money) and they will say, “Because we thought it was best for you.”
Of course, it goes without saying that they figured you couldn’t decide for yourself what was best. What they are saying behind your back is you wouldn’t get it anyway. Witness the on-going obstinate rejection by the Modoc County Board of Supervisors of any ideas coming from the Monday Night Group.
In an autocratic system democratic checks and balances are non-existent or blatantly ignored. There is a disdain for the rank and file. Not just a disdain for county employees, but for the very public our elected and their appointed leaders are supposed to protect.
With no voice and no one they can trust, our county employees and the public-at-large become disenfranchised. A wall of silence and secrecy barricades the autocrat from the outside -- that’s you, the taxpayer.
Fear takes over. Fear of an administration that could destroy a career, fear of reprisals, of being fired.
A Nixonian sense of being beyond the law takes over the psyche of autocrats, a sense that they can make their own law. And they do make their own law, and they brazenly call it “Modoc Law.” We say “brazenly” because our autocrats know intuitively that no one is watching and if they are watching they will be too afraid to speak up.
And for those who dared to speak up? Look around, do you a see them anywhere? Shamefully, an autocratic government works as long as we let it work.
And when a treasury is being misused, as it has been and continues to be, the county is in great peril of bankruptcy.
One way to assure bankruptcy, and bankruptcy looms ever closer on the horizon as we get nearer the end of the fiscal year, is to continue ad infinitum the borrowing of money from the treasury (Peter) in order to cover monthly cash flow deficits and all other costs of running a county government (Paul).
You don’t have to read between the lines of the insurance claim against county officials to know that Modoc County government is sick, it has been for years and it’s not getting a whole lot better even now when it knows it’s sick.
-- Ray A. March
Not What Went Wrong, But Why?
Editor’s Note: As we neared the conclusion of the multi-part series on the $12.5 million insurance claim against numerous county officials the question “What Went Wrong?” was posed by former DA Gary Woolverton. In our analysis of the misappropriation of treasury funds based on Woolverton’s findings we go another step and ask, “Why Did It Go Wrong?”
What do we know about why the misappropriation of nearly $20 million in public funds happened?
The answer, while not readily apparent, is found in the assertions made in the insurance claim against various officials’ performance bonds, coupled with revelations from first hand sources.
It’s called absence of accountability.
Our trusted leaders not only snubbed us, but we the people failed in carrying out a constitutional role that entitles us to make our elected officials and their appointees accountable to us.
What is borne of such a neglectful imbalance?
In a less democratic country the result is dictatorship. In a democratic society the result is autocracy. Both are forms of managing the people’s interest by withholding information and using intimidation and fear as tools to reduce us into submission.
Naturally, autocrats like dictators, see themselves as benevolent, well-meaning men and women only interested in the good of the cause, but you can easily spot autocrats by their adamant reluctance to open-door government.
Ask your autocratic managers (there are still some in Modoc County government) why they did what did (for example, misappropriate the people’s money) and they will say, “Because we thought it was best for you.”
Of course, it goes without saying that they figured you couldn’t decide for yourself what was best. What they are saying behind your back is you wouldn’t get it anyway. Witness the on-going obstinate rejection by the Modoc County Board of Supervisors of any ideas coming from the Monday Night Group.
In an autocratic system democratic checks and balances are non-existent or blatantly ignored. There is a disdain for the rank and file. Not just a disdain for county employees, but for the very public our elected and their appointed leaders are supposed to protect.
With no voice and no one they can trust, our county employees and the public-at-large become disenfranchised. A wall of silence and secrecy barricades the autocrat from the outside -- that’s you, the taxpayer.
Fear takes over. Fear of an administration that could destroy a career, fear of reprisals, of being fired.
A Nixonian sense of being beyond the law takes over the psyche of autocrats, a sense that they can make their own law. And they do make their own law, and they brazenly call it “Modoc Law.” We say “brazenly” because our autocrats know intuitively that no one is watching and if they are watching they will be too afraid to speak up.
And for those who dared to speak up? Look around, do you a see them anywhere? Shamefully, an autocratic government works as long as we let it work.
And when a treasury is being misused, as it has been and continues to be, the county is in great peril of bankruptcy.
One way to assure bankruptcy, and bankruptcy looms ever closer on the horizon as we get nearer the end of the fiscal year, is to continue ad infinitum the borrowing of money from the treasury (Peter) in order to cover monthly cash flow deficits and all other costs of running a county government (Paul).
You don’t have to read between the lines of the insurance claim against county officials to know that Modoc County government is sick, it has been for years and it’s not getting a whole lot better even now when it knows it’s sick.
-- Ray A. March
Monday, March 28, 2011
Crabtree Hands Agenda To Northrup
Starting April 5 the Modoc County Board of Supervisors agenda items will be read by clerk of the board Stephanie Northrup, relieving Chair Loren “Shorty“ Crabtree (pictured above right) of the duties.
“I’m going to have Stephanie read the agenda,” Crabtree told the Modoc County Daily News. “I’m not a good reader anyway. I had a little parliamentary procedure in high school, but that was a long time ago.”
When Northrup was informed of the proposed change she said, “It’s been suggested that the clerk read the agenda items for the record. I would be happy to read the agenda if it would help Shorty.”
Northrup explained that she has prepared concise parliamentary procedure sheets for Shorty. “I know he’s really trying. I’ll read the agenda if it will help him.”
Granicus Back In Business
Audio recordings of the Modoc County Board of Supervisors meetings have been restored, according to Stephanie Northrup, clerk to the board.
“The server Granicus had was outdated,” Northrup explained, so our customer support representative at Granicus updated the server and ran some tests to make sure it is working correctly now.”
Audio recordings of the Modoc County Board of Supervisors meetings have been restored, according to Stephanie Northrup, clerk to the board.
“The server Granicus had was outdated,” Northrup explained, so our customer support representative at Granicus updated the server and ran some tests to make sure it is working correctly now.”
BOS Meeting Goes Silent
Somewhere in the midst of a technological meltdown of sorts, the audio recording of the March 22 meeting of the Modoc County Board of Supervisors went silent.
Stephanie Northrup, clerk to the board, said the entire meeting was recorded, but apparently malfunctioned shortly after the board adjourned, leaving listeners in an audio darkness.
“For whatever reason, the audio didn't transfer over with the minutes,” Northrup said. “The customer service department with Granicus is working on it and they have sent me an audio file that appears to have the meeting intact. I'm waiting on a reply from them before I post it though. I hope to have the audio up later today.”
Granicus is the firm that provides web casting of board meetings.
Somewhere in the midst of a technological meltdown of sorts, the audio recording of the March 22 meeting of the Modoc County Board of Supervisors went silent.
Stephanie Northrup, clerk to the board, said the entire meeting was recorded, but apparently malfunctioned shortly after the board adjourned, leaving listeners in an audio darkness.
“For whatever reason, the audio didn't transfer over with the minutes,” Northrup said. “The customer service department with Granicus is working on it and they have sent me an audio file that appears to have the meeting intact. I'm waiting on a reply from them before I post it though. I hope to have the audio up later today.”
Granicus is the firm that provides web casting of board meetings.
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