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HomeMy WebLinkAboutMINUTES - 05231995 - 1.75 File: 250-9496/B.4 . 3 THE BOARD OF SUPERVISORS CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on May 23, 1995, by the following vote: AYES: Supervisors Rogers; gdth, Dn In br, TorLkson, Bishop NOES: Nom ABSENT: Ike RESOLUTION NO. 95/223 SUBJECT: Approving Addenda No. 1 and No. 2 to 'Plans and Specifications for Plumbing Repairs at County Courthouse, 725 Court Street, Martinez Budget Line Item No. 4403-4382 Authorization No. 0928-WH382B The Board of Supervisors APPROVES Addenda No. 1 and No. 2 to the bid documents for Plumbing Repairs at County Courthouse, 725 Court Street, Martinez . Addendum No. 1 requires bidders to attend at least one scheduled pre-bid site inspection tour; Addendum No. 2 extends the bid opening date from May 25, 1995 to June 15, 1995 to provide ample time for bidders to inspect existing conditions and increases the cost estimate for the initial construction contract from $200,000. 00 to $300,000 . 00, base bid only. The Clerk of the Board is directed to publish a revised Notice to Contractors, reflecting the change in bid opening date, in accordance with Section 22037 of the Public Contract Code, inviting bids for such work, said Notice to be published in the Contra Costa Times . 1 hereby certify that this Is a true and correct an action taken and entered on the minutes copy of Board of Supervisors on the date of the ATTESTED: shown. PHIL BATCHEL I Clerk o the Board of Supervisors and County Administrator By .�puty Orig. Dept. : General Services Dept. - Architectural Division cc: General Services Department Architectural Division G.S . 'Accounting Auditor-Controller Community Development D. Barry Consultant (Via A/D) 25096B05 . 15A GB: ls i t 1.75 A and 1.75 B BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on May 23, 1995 by the following vote: AYES: Supervisors Rogers, Smith, DeSaulnier, Torlakson, Bishop NOES: None ABSENT: None ABSTAIN: None SUBJECT: Grand Jury Report No. 95-03 Emergency Spending Procedures and Grand Jury Report No. 95-04 Payment to the Los Medanos Community Hospital IT IS BY THE BOARD ORDERED that Grand Jury Report No. 95-03 and 95-04 be REFERRED to the County Administrator and the Internal Operations Committee. 1 hereby Certify that this is a true MW CM,get Copy of an action taken and entered on the w4roAft of the Board of Supervisors on the date shom ; ATTE$TM. A 3. 19 PHIL BATCH R.Clerk of the Ba" Of SUPWlaora and County AdministraW —12 By _ Deputy cc: County Administrator Internal Operations Committee Grand Jury County Counsel A REPORT BY THE 1994-95 CONTRA COSTA COUNTY GRAND JURY 1020 Ward Street Martinez, CA 94553 (510)646-2345 Report No. 9504 Contra Costa County Health Services Department Payment to Los Medanos Community Hospital "Good Money after Bad" Approved by the Grand Jury: Date: ' Clyde Parkhurst --*r. �. Grand Jury Fop an 4eo 1-a; Accepted for Filing: Date: John F.VanDe oel Judge of the Superior Court SECTION 933 (C) OF THE CALIFORNIA PENAL CODE §933. Comments and Reports on Grand Jury Recommendations. (c) No later than 90 days after the grand jury submits a final report on the operations of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body, and every elective county officer or agency head for which the grand jury has responsibility pursuant to Section 914.1 shall comment within 60 days to the presiding judge of the superior court, with an information copy sent to the board of supervisors, on the findings and recommendations pertaining to matters under the control of that county officer or agency head and any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall also comment on the findings and recommendations. All such comments and reports shall forthwith be submitted to the presiding judge of the superior court who impaneled the grand jury. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices. One copy shall be placed on file with the applicable grand jury final report by, and in the control of the currently impan- eled grand jury, where it shall be maintained for a minimum of five years. Leg.H. 1961 ch. 1284, 1963 ch. 674, 1974 chs. 393, 1396, 1977 chs. 107, 187, 1980 ch. 543, 1981 ch. 203, 1982 ch. 1408 §5, 1985 ch. 221 §1, effective July 12, ,1985, 1987 ch. 690 §1, 1988 ch. 1297. Cross-References Admissible evidence. Penal Code §939.6. "Grand jury" defined. Penal Code §888. Grand jury report to be based only on own investigation. Penal Code §939.9. Y w Contra Costa County Health Services Department Payment to Los Medanos Community Hospital "Good Money After Bad" SUMMARY: A great deal of turmoil has arisen in and about the closure of Los Medanos Community Hospital. Amid this confusion, the Contra Costa County Health Services Department stepped in and attempted to assist the ailing Hospital with a grant of public funds from the Tobacco Tax Fund (AB75). While well intentioned and most probably in anticipation of the County's assumption of the Hospital's operations, the grant received absolutely no public review or scrutiny. The Grand Jury is concerned that the public interest be protected and that the public right to review large allocations of funds be protected and maintained. The Grand Jury urges the Board of Supervisors to take decisive action to change the process by which these funds can be so quietly distributed. INTRODUCTION: In February, 1994, Contra Costa County Health Services Department gave Los Medanos Community Hospital aL total of $250,000. Newspaper reports at the time characterized this money as a loan. The 1994-95 Contra Costa Grand Jury, concerned about this public perception, investigated this action. This money was not 2t loan, but an allocation of Tobacco Tax funds (AB75) made by the Health Services Department without action by the Contra Costa County Board of Supervisors. FINDINGS: The 1994-915 Contra Costa Grand Jury finds that: 1. Health Services Department and Auditor/Controller records show that a total of $250000 was given, not loaned, to the Los Medanos Community Hospital based on requests by the Health Services Department Chief Financial Officer. The money was allocated from the Tobacco Tax Fund (AB75). 2. The County Board of Supervisors, by action 1.30 on September 1, 1993, delegated all expenditure of Tobacco Tax funds (AB75) to the Health Services Director or his designee. 3. At the time of this investigation, normal County expenditures, such as contracts for services, of more than $25,000 require specific authorization by the Board of Supervisors. Page 1 Contra Costa County Health Services Department Payment to Los Medanos Community Hospital "Good Money After Bad" CONCLUSIONS The 1994-95 Contra Costa Grand Jury concludes that 1. The action by the Board of Supervisors of September 1, 1993 allows the Health Services Department autonomy in disbursing Tobacco Tax funds (AB75) without action by or knowledge of the Board of Supervisors. This Board action is not consistent with spending controls normally exercised by the Board of Supervisors. RECOMMENDATIONS The 1994-95 Contra Costa Grand Jury recommends that: 1. Within 30 calendar days, the Board of Supervisors rescind Board Order 1.30 of September 1, '1993, which delegates to the Health Services Director the independent authority to spend Tobacco Tax funds (AB75). COMMENTS: The Grand Jury believes that it is in the public interest that the expenditure of tax dollars remain subject to public review and scrutiny. Public scrutiny might have helped avoid this misallocation of $250,000. d Page 2 A REPORT BY THE 199495 CONTRA COSTA COUNTY GRAND JURY 1020 Ward Street Martinez, CA 94553 (510)646-2345 Report No. 9504 Contra Costa County Health Services Department Payment to Los Medanos Community Hospital "Good Money after Bad" Approved by the Grand Jury: DaterClyde Parkhurst . Grand Jury Fo an Aeo i Accepted for Filing: i Date: S John F. VanDe oel Judge of the Superior Court Z6 ' SECTION 933 (C) OF TUE CALIFORNIA. PENAL CODE §933.: Comments and Reports on Grand Jury Recommendations. (c) No later than 90 days after the grand jury submits a final report on the operations of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body, .and every elective county officer or agency head for which the grand jury has responsibility pursuant to Section 914.1 shall comment within 60 days to the presiding judge of the superior court, with an information copy sent to the board of supervisors, on the findings and recommendations pertaining to matters under the control of that county officer or agency head and any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall also comment on the findings and recommendations. All such comments and reports shall forthwith be submitted to the presiding judge of the superior court who impaneled the_ grand jury. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices. One copy shall be placed on file with the applicable grand jury final report by, and in the control of the currently impan- eled grand jury, where it shall be maintained for a minimum of five years. Leg.H. 1961 ch. 1284, 1963 ch. 674, 1974 chs. 393, 1396, 1977 chs. 107, 187, 1980 ch, 543, 1981 ch. 203, 1982 ch. 1408 §5, 1985 ch. 221 §1, effective July 12, 1985, 1987 ch. 690 §1, 1988 ch. 1297. Cross-References Admissible evidence. Penal Code §939.6. "Grand jury" defined. Penal Code §888. Grand jury report to be based only on own investigation. Penal Code §939.9. Contra Costa County Health Services Department Payment to Los Medanos Community Hospital "Good Money After Bad" SUMMARY: A great deal of turmoil has arisen in and about the closure of Los Medanos Community Hospital. Amid this confusion, the Contra Costa County Health Services Department stepped in and attempted to assist the ailing Hospital with a grant of public funds from the Tobacco Tax Fund (AB75). While well intentioned and most probably in anticipation of the County's assumption of the Hospital's operations, the grant received absolutely no public review or scrutiny. The Grand Jury is concerned that the public interest be protected and that the public right to review large allocations of funds be protected and maintained. The Grand Jury urges the Board of Supervisors to take decisive action to change the process by which .these funds can be so quietly distributed. INTRODUCTION: In February, 1994, Contra Costa County Health Services Department gave Los Medanos Community Hospital a total of $250,000. Newspaper reports at the time characterized this money as.a loan. The 1994-95 Contra Costa Grand.Jury, concerned about this public perception, investigated this action. This money was not a loan, but an allocation of Tobacco Tax funds (AB75) made by the Health Services Department without action by the Contra Costa County Board of Supervisors. FINDINGS: The 1994-95 Contra Costa Grand Jury finds that: 1. Health Services Department and Auditor/Controller records show that a total of $250,000 was given, not loaned, to the Los Medanos Community Hospital based on requests by the Health Services Department Chief Financial Officer. The money was allocated from the Tobacco Tax Fund (AB75). 2. The County Board of Supervisors, by action 1.30 on September 1, 1993, delegated all expenditure of Tobacco Tax funds (AB75) to the Health Services Director or his designee. 3. At the time of this investigation, normal County expenditures, such as contracts for services, of more than $25,000 require specific authorization by the Board of Supervisors. Page i Contra Costa County Health Services Department Payment to Los Medanos Community Hospital "Good Money After Bad" CONCLUSIONS The 1994-95 Contra Costa Grand Jury concludes that 1. The action by the Board of Supervisors of September 1, 1993 allows the Health Services Department autonomy in disbursing Tobacco Tax funds (AB75) without action by or knowledge of the Board of Supervisors. This Board action is not consistent with spending controls normally exercised by the Board of Supervisors. RECOMMENDATIONS The 1994-95 Contra Costa Grand Jury recommends that: 1. Within 30 calendar days, the Board of Supervisors rescind Board Order 1.30 of September 1, 1993, which delegates to the Health Services Director the independent authority to spend Tobacco Tax funds (AB75). COMMENTS: The Grand Jury believes that it is in the public interest that the expenditure of tax dollars remain subject to public review and scrutiny. Public scrutiny might have helped avoid this misallocation of $250,000. Page 2 �. -75 � A REPORT BY THE 199495 CONTRA COSTA COUNTY GRAND JURY 1020 Ward Street Martinez, CA 94553 (510)646-2345 Report No. 9503 Contra Costa County Lack of Emergency Spending Procedures " Putting the Cart Before the Horse" Approved by the Grand Jury: Date: Clyde Parkhurst Grand Jury F an '.[o Accepted for Filing: Date: John F. VanDePoel Judge of the Superior Court SECTION 933 (C) OF THE CALIFORNIA PENAL CODE §933. Comments and Reports on Grand Jury Recommendations. (c) No later than 90 days after the grand jury submits a final report on the operations of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body, and every elective county officer or agency head for which the grand jury has responsibility pursuant to Section 914.1 shall comment within 60 days to the presiding judge of the superior court, with an information copy sent to the board of supervisors, on the findings and recommendations pertaining to matters under the control of that county officer or agency head and any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall also comment on the findings and recommendations. All such comments and reports shall forthwith be submitted to the presiding judge of the superior court who impaneled the. grand jury. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices. One copy shall be placed on file with the applicable grand jury final report by, and in the control of the currently impan- eled grand jury, where it shall be maintained for a minimum of five years. Leg.H. 1961 ch. 1284, 1963 ch. 674, 1974 chs. 393, 1396, 1977 chs. 107, 187, 1980 ch. 543, 1981 ch. 203, 1982 ch. 1408 §5, 1985 ch. 221 §1, effective July 12, .1985, 1987 ch. 690 §1, 1988 ch. 1297. Cross-References Admissible evidence. Penal Code §939.6. "Grand jury" defined. Penal Code §888. Grand jury report to be based only on own investigation. Penal Code §939.9. r Contra Costa County Lack of Emergency Spending Procedures "Putting The Cart Before The Horse- SUMMARY Contra Costa County, like most entities that administer public funds, has a limit set as to the amount of money that may be authorized to be spent on contracts for services without the necessity of prior Board of Supervisors' public review and approval. This limit is currently $25,000. Public review and approval of contracts in excess of $25,000 is done to allow for public comment, avoid "back room dealing" and to protect the public interest. Yet, emergencies and special conditions arise that require expediency, which can also be in the public interest. The Grand Jury has found such an "emergency" that caused a County Department Director to place the County at risk and obligated the County for over $500,000 prior to Board of Supervisors' approval. The Grand Jury believes the lack of appropriate emergency contract approval procedures must be reviewed and new procedures adopted to better protect the public interest. INTRODUCTION : In February, 1994, the Health Services Department directed an architect to provide professional services for modifications to Los Medanos Hospital in the event that it would be taken over by the County. In order to meet a time schedule requiring drawings be provided to the State by June, 1994, the Architect's work proceeded prior to approval by the Board of Supervisors. Over $500,000 of work was authorized at the Department level prior to the Board of Supervisor's approval. FINDINGS The 1994-95 Contra Costa Grand Jury finds that: 1. County procedures currently specify that Board of Supervisors authorize all service contracts over $25,000 in open public session. 2. No procedures exist for emergency contract authorization when time does not allow normal contracting procedures to be followed. 3. A contractor was selected by the Health Services Department without following the County's normal contract award procedures. Design work proceeded. Page 1 Contra Costa County Lack of Emergency Spending Procedures "Putting The Cart Before The Horse° Findings continued... 4. The Director of the County's Health Services Department authorized the design work to proceed prior to action by the Board of Supervisors. The Health Services Department Director proceeded in this manner in order to meet a State deadline of submission of drawings in June to allow recovery of costs for professional services from the State. (SB 1732) 5. By the time authorization from the Board of Supervisors was obtained in May, 1994, the costs of the design work had exceeded $500,000. No payments were made to the contractor until after the Board's authorization. 6. The deadline for submission of drawings to the State in June was met. (SB 1732) CONCLUSIONS The 1994-95 Contra Costa Grand Jury concludes that: 1. Due to the lack of an emergency contract authorization procedure, the Health Services Department Director authorized work by a contractor without following established County procedures. 2. There should be a carefully written and approved County procedure for contract authorization when time does not allow established County procedures to be followed. This procedure should clearly define an emergency and the steps to be followed up to and incuding approval by the Board of Supervisors. RECOMMENDATIONS : The 1994-95 Contra Costa Grand Jury recommends that: 1. The Board of Supervisors direct the County Administrator to complete within 90 calendar days, a procedure to define an emergency and the steps to be taken to authorize commencement of the Work and the ultimate approval by the Board of Supervisors. Page 2 Al A REPORT BY THE 199495 CONTRA COSTA COUNTY GRAND JURY 1020 Ward Street Martinez, CA 94553 (510)646-2345 Report No. 9503 Contra Costa County Lack of Emergency Spending Procedures Putting the Cart Before the Horse" r Approved by the Grand Jury: Date: 5 f 5 S Clyde Parkhurst �/. Grand Jury F an mea i Accepted for Filing: Date: j S John F. VanDePoel Judge of:the Superior Court SECTION 933 (C) OF THE CALIFORNIA PENAL CODE §933. . Comments and Reports on Grand Jury Recommendations. (c) No later than 90 days after the grand jury submits a final report on the operations of any public agency subject to its reviewing authority, the governing body of the public agency shall comment to the presiding judge of the superior court on the findings and recommendations pertaining to matters under the control of the governing body, and every elective county officer or agency head for which the grand jury has responsibility pursuant to Section 914.1 shall comment within 60 days to the presiding judge of the superior court, with an information copy sent to the board of supervisors, on the findings and recornmendations pertaining to matters under the control of that county officer or agency head and any agency or agencies which that officer or agency head supervises or controls. In any city and county, the mayor shall also comment on the findings and recommendations. All such comments and reports shall forthwith be submitted to the presiding judge of the superior court who impaneled the_ grand jury. A copy of all responses to grand jury reports shall be placed on file with the clerk of the public agency and the office of the county clerk, or the mayor when applicable, and shall remain on file in those offices. One copy shall be placed on file with the applicable grand jury final report by, and in the control of the currently impan- Bled grand jury, where it shall be maintained for a minimum of five years. Leg.H. 1961 ch. 1284, 1963 ch. 674, 1974 chs. 393, 1396, 1977 chs. 107, 187, 1980 ch. 543, 1981 ch. 203, 1982 ch. 1408 §5, 1985 ch. 221 §1, effective July 12, 1985, 1987 ch. 690 §1, 1988 ch. 1297. Cross-References Admissible evidence. Penal Code §939.6. "Grand jury" defined. Penal Code §888. Grand jury report to be based only on own investigation. Penal Code §939.9. • Contra Costa County Lack of Emergency Spending Procedures "Putting The Cart Before The Horse" SUMMARY : Contra Costa County, like most entities that administer public funds, has a limit set as to the amount of money that may be authorized to be spent on contracts for services without the necessity of prior Board of Supervisors' public review and approval. This limit is currently $25,000. Public review and approval of contracts in excess of $25,000 is done to allow for public comment, avoid "back room dealing" and to protect the public interest. Yet, emergencies and special conditions arise that require expediency, which can also be in the public interest. The Grand Jury has found such an "emergency" that caused a County Department Director to place the County at risk and obligated the County for over $500,000 prior to Board of Supervisors' approval. The Grand Jury believes the lack of appropriate emergency contract approval procedures must be reviewed and new procedures adopted to better protect the public interest. INTRODUCTION In February, 1994, the Health Services Department directed an architect to provide professional services for modifications to Los Medanos Hospital in the event that it would be taken over by the County. In order to meet a time schedule requiring drawings be provided to the State by June, 1994, the Architect's work proceeded prior to approval by the Board of Supervisors. Over $500,000 of work was authorized at the Department level prior to the Board of Supervisor's approval. FINDINGS : The 1994-95 Contra Costa Grand Jury finds that: 1. County procedures currently specify that Board of Supervisors authorize all service contracts over $25,000 in open public session. 2. No procedures exist for emergency contract authorization when time does not allow normal contracting procedures to be followed. 3. A contractor was selected by the Health Services Department without following the County's normal contract award procedures. Design work proceeded. Page 1 Contra Costa County Lack of Emergency Spending Procedures "Putting The Cart Before The Horse" Findings continued... 4. The Director of the County's Health Services Department authorized the design work to proceed prior to action by the Board of Supervisors. The Health Services Department Director proceeded in this manner in order to meet a State deadline of submission of drawings in June to allow recovery of costs for professional services from the State. (SB 1732) 5. By the time authorization from the Board of Supervisors was obtained in May, 1994, the costs of the design work had exceeded $500,000. No payments were made to the contractor until after the Board's authorization. 6. The deadline for submission of drawings to the State in June was met. (SB 1732) CONCLUSIONS The 1994-95 Contra Costa Grand Jury concludes that: 1. Due to the lack of an emergency contract authorization procedure, the Health Services Department Director authorized work by a contractor without following established County procedures. 2. There should be a carefully written and approved County procedure for contract authorization when time does not allow established County procedures to be followed. This procedure should clearly define an emergency and the steps to be followed up to and incuding approval by the Board of Supervisors. RECOMMENDATIONS The 1994-95 Contra Costa Grand Jury recommends that: 1. The Board of Supervisors direct the County Administrator to complete within 90 calendar days, a procedure to define an emergency and the steps to be taken to authorize commencement of the Work and the ultimate approval by the Board of Supervisors. Page 2