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Tuesday, March 18, 2008

Vanguard Investigation Part IV: Fiscal Crisis Management Assistance Team Findings

The Vanguard continues its multipart series of former DJUSD Deputy Superintendent Tahir Ahad, Total School Solutions, and fiscal mismanagement of the Davis Joint Unified Business Office during Tahir Ahad’s tenure from 1999 to 2006 as CBO of DJUSD.

The first segment of this series which ran on Sunday, February 24, 2008 examined the inherent problems involved in a conflict of interest. The conflict of interest we examined involved a series of disturbing findings of how Mr. Ahad used his position as Chief Business Officer (CBO) with the Davis Joint Unified School District as a means by which to start up his own private company for his own private gain. In short, he used public resources for private gain, a serious breach in the public trust.

The second portion of the series ran on March 3, 2008 and focused specifically upon the facilities planning and management beginning with the lost state matching funds for Montgomery Elementary, problems with Korematsu and eventually the King High debacle which led to the new school board finding out exactly what had been going on with the district’s facilities construction money. Basically money was shifted from later projects to make up for lost matching funds for Montgomery, lower than expected matching funds for Korematsu, and other cost overruns. Instead of acknowledging the depths of the problems, Mr. Ahad asked the school board in 2005 to pass a COP (Certificate of Participation), a form of debt financing, to pay for King High and some other projects. In 2006, the board learned that they only had half the money they needed to fund King High, and they realized that money had been shuffled, but only after an extensive investigation and the temporary halting of construction activities at King High.

The third segment which ran on March 10, 2008 continued to look at the facilities funding problems and other fiscal management issues. We examined the property exchange deal involving the Grande Property, which was a highly secretive and unusual process that we will argue violated a number of the California Education Code’s provisions for the sale of public surplus property. There were several primary problems with the property exchange for King High School. First, the process was conducted primarily in secret with a limited bid process. It required a property exchange to avoid possible efforts by the city to invoke the Naylor act. Finally, the process would have resulted in the district getting a low sale price for the property.

This final segment examines the report from consultant Terri Ryland and the Fiscal Crisis and Management Assistance Team (FCMAT) report. We have discussed both in previous weeks, but this time, we do so in more detail, looking at the problems with the district’s tracking and management of its facilities money and then efforts by the district—which were successful—to fix those problems.

Terri Ryland’s Report

We start this segment by returning to the problems with King High School that emerged on November 2, 2006 and resulted in the halting of construction on that project. Recall from the second segment of this series, that the school board was surprised to find out that the money that they had thought they had approved to pay for King High School in 2005 was not there. Now, the Superintendent, David Murphy, was asking for an additional $5 million in COP to fund the high school. The school board learned that they only had half of the money needed to finish the construction of King High.

As Board Member Gina Daleiden said during that meeting:
“We learned just a few minutes ago that more than fifty percent of the [king high] project is unpaid unless we make a decision about COPs. That is news to me… We need to look at the COPs that the previous board took out because I think they were for King High.”
Throughout this trying and at times contentious meeting, Superintendent Murphy was steadfast in his belief that the $10 million was still there... "I’m sure we have all the money that we think we have, but the documentation provided to the FCMAT team was deficient… I’m confident that not only do we have the money that we believe we have, but the documentation will show that.”

He explained that since we were short-staffed on the business services side, the top two positions were vacant, and that the facilities people were not people with fiscal expertise, and that this was the cause of the confusion.

It was at this point that Superintendent Murphy brought in Terri Ryland to examine the district’s books and figure out where the money that the school board believed should be there was.

As we learned two weeks ago, Superintendent Murphy was correct—the $10 million was there, it simply had been used to backfill payments for previous facilities projects and therefore unavailable to pay for King High.

As consultant Terri Ryland put it, “that wasn’t negative money, that was a shortfall in money that at one time we anticipated receiving.”

Part of the confusion on the board's part is that as Board Member Jim Provenza put it, we were “carrying the anticipated state revenue from Montgomery in our facilities plan as revenue available for projects.”

That money according to Terri Ryland was carried on the book until the end of the 2005-06 year. In other words, to the school board, it looked like money was there, that was not in fact there.

FCMAT Report

This problem among others were laid out more fully in the Fiscal Crisis and Management Assistance Team (FCMAT) report that was released on December 14, 2006.

After District Chief Budget Officer Tahir Ahad left the district in 2006, DJUSD hired an interim CBO Cathi Vogel. One of Ms. Vogel’s key recommendations to the Superintendent was to bring in the FCMAT team to examine the district and assess its conditions.

Part of the problem that came to light during the course of both the November 2, 2006 meeting and the December 7, 2006 meeting is that once Tahir Ahad left the district, there was literally no one in the district who understood the budget, where the documents were, and who could help piece together the district fiscal reports. This was a problem in and of itself.

As Board Member Provenza put it on December 7, 2006:
“We had an interim CBO, we had fiscal people here. That’s really what I’m going to. In my mind, correct me if I’m wrong, if someone leaves a district, the fiscal situation should be such that someone else could pick up the books, could look at the records and understand them and you wouldn’t have to pay someone for hundreds of hours of work to put it together. That you could have a system like that, that any CPA could go in and look at and understand.”
FCMAT not only came in to evaluate the district, but they came in to make recommendations on how to better run the fiscal office, so that these problems do not repeat themselves, so that next time someone leaves the district, it is easy for an individual to look at the books and figure out what money the district has. Instead, the district had to bring in Terri Ryland for hundreds of hours of billed work to literally reconstruct the books by hand.

One of things that encumbered the FCMAT team was the fact that “Both the prior Deputy Superintendent and the Director of Business Services cleared off their computer hard drives before departing the district.” FCMAT therefore recommended the enactment of policies and procedures for the retention of information on computer hard drives and notes, so that history can remain even when employees leave the district.

In their executive summary, FCMAT also notes that
“The organizational structure of the business division must clearly define and delineate the job responsibilities of managers, supervisors and employees… Although board policy exists, business office employees have not been evaluated annually. Some have not been evaluated for several years. A process needs to be implemented to ensure that employee performance evaluations are prepared regularly.”
While we have primarily focused this investigation on the Facilities projects and their mismanagement, there is a significant trail of mismanagement within the district offices themselves in terms of personnel. We discussed some of this briefly in the first segment. Interviews with past employees suggest that these structural designs were not accidental and not merely sloppy, but rather intentional features of the office designed to maximize control and loyalty to the former CBO, Tahir Ahad.

The FCMAT report goes on to discuss the fact that “business department staff do not currently receive cross training… Cross training helps departments perform effectively when an employee is absent, and enables employees to perform tasks outside their normal duties when necessary.” It goes on to note: “It appears that the previous CBO and director completed a lot of tasks and analyses on their own, and did not leave backup or information for future employees to follow and understand.”

This again seems to be an innocuous function of an individual’s management style, but it also leads the entire office to be dependent on a single individual in order to effectively function. That means that once that individual leaves the district, the ability to carry out previous functions virtually collapses. Indeed, FCMAT noted, “the district lacks written desk manuals, standard operating procedures or other specific reference documents in the business office.”

FCMAT then goes on to rate the district as having a “high fiscal health risk level. The areas of concern include cafeteria interfund borrowing, cafeteria encroachment, management information systems, retiree health benefits, leadership stability, district liability, and facilities.”

Most importantly—“no single report adequately tracks projects and the different types of funding used on each project for both past and current projects.” I shall talk more about this shortly.

Right now, it is very important to emphasize that all of the shortcomings that FCMAT put into place were addressed by the district in short order. In fact, by the time Montgomery came up before the State Allocations Board, the district informed the board that they had already implemented the recommendations of FCMAT. This will be discussed more at the end of this segment, but given the gravity of the current budget situation it is important to note that at the very least the district is on sound fiscal footing in terms of policies and procedures—however, this was not true in 2006 and that led to a high risk rating that was quite alarming to current school board members.

FCMAT looks at 18 categories of “Fiscal Indicators” and determined 7 categories were “not acceptable.” That put the district into the “high” risk category.

It is interesting to note that FCMAT rated the category, deficit spending, as acceptable. However, they also noted that “since FCMAT’s review, the district has given a 6.5% salary increase that will result in deficit spending of $1,030,758 in 2006-07.” This was not included in their projections and analysis and should be a note of concern that would carry-over to later budgetary issues. Unlike other fiscal practices, this one can be put on the current school board.

The first problem that FCMAT cited was interfund borrowing. On paper, FCMAT said that the district does not appear to have interfund borrowing. However, since the cafeteria fund had ended in a negative balance the previous four years,
“interfund borrowing should have occurred instead of ending the year with a negative cash balance. Because interfund borrowing is not occurring, there has been no awareness or discussion at the board level regarding the negative fund balance.”
Along the same lines, the district got a negative finding on encroachment. “The district needs to engage in interfund borrowing at year end to cover the negative fund balance, and address the issue of why this fund is continually in the red.”

Furthermore, the district was criticized because key fiscal reports were not readily available and understandable.
“The COE [County Office of Education] expressed concerns about how questions are answered on fiscal reports. The district provided backup as requested, but the COE often had additional questions or concerns based on the data provided, and felt that the reports did not answer the questions in many cases.”
The district scored poorly on retiree health benefits that were funded on a “pay-as-you-go basis” rather than having an actuarial study and a plan to fund the ongoing liability.

The district also go dinged because they had an interim CBO and therefore lacked stability in leadership.

An interesting point was made that the governing board of the district generally refrains from micromanaging.
“Comments were made that the board micromanages, but interviews and board agendas and minutes did not corroborate that. Board members have asked for additional budget information, such as budgets by department and history of past reductions versus what has been reestablished. These types of requests are common and reflect fiscal responsibility.”
The district liability was not acceptable either. The district had not done the proper legal analysis regarding potential lawsuits nor had it set up contingent liabilities for anticipated settlements and legal fees.

While some of these problems were serious, most of them appeared to be easily resolvable with good management from the administration and direction by the school board.

The most serious problem, not surprisingly for anyone who has read this series, is in the facilities area.

The biggest and most alarming finding is that “over the years, the district has transferred money between funds and it is difficult to ascertain which funds were used for which project.”

One of the biggest findings that both FCMAT and Terri Ryland pointed out is that the district used a single account for its facilities funds rather than creating a separate account for each new project. That meant that in addition to difficulty tracking the project as FCMAT pointed out, it also meant that it was easy to use monies that had been designated to pay for one project could easily be used to pay for previous projects—and the board would have difficulty tracking those payments and funds.
“The tracking reports are inadequate and appear to have been used throughout the program.”
Part of the problem was that the Chief Business Officer left in February of 2006.
“An interim CBO was hired but was told not to work on facilities accounting and funding, because the former CBO would do that. That apparently did not occur, and thus the area of facilities needs immediate attention… The previous CBO controlled all facilities planning and long-and short-term funding recommendations and decisions with no input from the Facilities Department since 2004, when the previous Facilities Director left.”
Furthermore, personnel was not the only problem the district faced on this.
“Even if adequate personnel were available to track projects, the tracking mechanisms used are inadequate and have been for the length of the program. A number of reports are used, but do not appear to reconcile with the district’s accounting system.

There also is no reporting mechanism to track past, current and future projects and their budgets in a master plan format so that the board, staff and public can readily see the expenditures of facilities funds over the duration of the program since approval of the Master Plan in 2000.”
FCMAT goes on to discuss the problems with Montgomery and Korematsu that were discussed in detail in the second segment of this report.

The problem of commingled funds may be explained away as sloppiness or even expediency on the part of the previous CBO. However, one point that needs to be made is that this is not an accidental policy but rather the result of specific board action early in Tahir Ahad’s term as CBO that allowed facilities project money to be placed in a single account rather than giving each project its own account that could be tracked over time by the board or the public.

Board President Sheila Allen found this the most alarming aspect of the FCMAT report’s findings.
“I think the most alarming thing about it was my concern about the specificity of the tracking of the dollars. If someone is in charge of tracking the money, I would hope that they would know exactly which dollars come in, into which pot, how exactly they were spent, and that is something that should be fairly easily tracked. I know it’s a very big organization and I absolutely know how complex school financing is, but that is my expectation of a finance department—is to know exactly how much comes in, how is it supposed to be spent, and how was it spent. "
A final problem that we have already discussed is the use of anticipated but not yet board approved moneys in line items as though the money were there and approved.
“In February 2004, staff prepared and presented a report detailing another revision to the Master Plan. The revisions included another $9.7 million in additional projects. In this report, no mention was made of the proposed funding sources for these projects.”
FCMAT then goes on to say:
“Because of the way the reports have been developed and presented to the board and community, it appears that all such projects have been planned. However, the funding sources are unclear because the board has not yet approved additional debt, such as COPs. Potential future revenue amounts are shown on the cash flow statements even though they have not been approved by the board, giving the impression that there is sufficient cash to proceed with the projects. The reports must be developed to distinguish between secured funding and potential funding to give the board greater certainty and understanding in their discussion of future facility projects.”
Board Vice President Gina Daleiden addressed this point when she spoke to the Vanguard in January 2008:
“There was also a problem with documents that went to the board and the public not clearly reflecting reality. When we adopted the FCMAT report, we made a motion… I made a motion seconded by Tim Taylor to direct the business staff to insure that speculative, not yet board approved financing is not reflected as available cash in cash flow documents and is instead clearly marked as possible options. The FCMAT report also says that that should happen.”
On page 95 of the FCMAT report they note $3 million was erroneously entered onto the line item of “projected redevelopment fund.”
“Since the issuance of FCMAT’s initial draft report, the district has disclosed that the $3 million was entered on the wrong line and instead should have reflected a new COP issuance, with a second $3 million to be requested in 2007. Since neither amount had been approved by the board, it is not appropriate to reflect that as cash flow unless clearly noted as potential cash. The current practice of listing the amounts without such a notation must be discontinued. The district should insure that all revenue projections are realistic and based on likely funding.”
According to Board Vice President Gina Daleiden, the board took the findings very seriously.
“Because that was such a concern when the board adopted the FCMAT report, the board made a series of motions adopting a lot of the recommendations from the from the FCMAT report that was done very deliberately so we could say we take this very seriously and make sure that our practices become best practices. Now in terms of what key changes were most vital to make, you can find that online in Bruce’s response to the FCMAT report, our new CBO. And I would cite these changes as well as… so here’s some of the changes… Some of the changes are new fiscal team has implemented, stronger financial controls, clear separation of authority within the accounting staff, and more accountability in staffing decisions. We have hired a director of facilities who will save us money by bringing professional oversight to our facilities budgets, maintenance and projects. We have instituted more regular reporting to the board on budgeting items. One of the things that it says in the FCMAT, that it notices in the past that the interim budget reports were put on consent without discussion and those are always on our regular agenda now so that the board can consciously talk about any adjustments to the budget and track how budget expenditures are meshing. [refers to PowerPoint on website that shows Colby’s changes to the FCMAT report]. I’m confident that our new CBO is implementing the FCMAT report. And it was very clear that that was one of the board’s top priorities for our interim superintendent. To make sure that the FCMAT report was being implemented.”
Board President Sheila Allen:
“To my knowledge we have either already implemented the recommendations or there are plans in place to do the recommendations. The key changes that they wanted in place were two things, is that they were talking about a coding system—that’s the standard practices. And the other thing is that you need a permanent head person and fiscal manager and we have both of those now.”
Some have defended past fiscal practices of the district on a number of fronts. The first point of course is that no money has been lost or misspent by the district.

Even strong critics of the previous regime agree on this point.

Board Vice President, Gina Daleiden:
“I do want to be clear that the money was spent on district buildings. So it wasn’t taken away or put into something that had nothing to do with the school district. They were spent on our buildings just no one realized the way in which it was being spent”
Board President Sheila Allen was very adamant that there was no lost money.
“The FCMAT report, and to my knowledge there was no lost money, there was no money that was illegally spent, but it was very difficult for someone to come in and be able to track exactly—here’s the money coming in, here’s how it was spent. And that’s concerning because these are taxpayer dollars. So we want to make sure that we know how much money we have, how it was spent, and that it was spent in the right category.

The good news about FCMAT is that it gave us some very clear guidance from professionals of where we need to go to do better. Although there was alarming information in there, the important thing to me was very help that rather than someone to say to me it’s a mess, or we don’t know exactly where the money’s been going, what was important to me is that they said here’s what you can do, you can do this… And also it was very important for me to know, and I’m sure I said this at public meetings, there’s no lost money. Nothing illegal has happened.

All of the experts, both ours and their’s were able to say, there’s no lost money, there was nothing illegal happened. That was very important to me that was very clear to me… I’ve been looking around for a better word than sloppy bookkeeping. It wasn’t very precise. So we put into place a more precise approach to bookkeeping and there’s all new people over there. So that’s the really good news is that we have people that we can trust—their numbers, we can trust that they’ll get us the information straight up…”
The Vanguard agrees with that assessment, but would argue that it is less than clear that this the end of the story. While in the true sense of the word, money was not lost, the poor fiscal practices of the district monopolized board and staff time that could have been spent better in other areas. Moreover, it is far from clear that these practices did not cost the district money both in terms of inefficiency of operation but also in terms of the time and money needed to get a straight accounting from both FCMAT and Terri Ryland. That in a very real way is lost money.

A second point was made to me that the FCMAT rating of “high risk” was misleading. The district got good marks on position control for the most part, which is the means of tracking and projecting employee salary and benefits. “A reliable position control system establishes authorized positions by site or department and ensures that staffing levels conform to district formulas and standards, thus preventing overstaffing.”

They go on to point out that a number of the deficiencies were minor and easily correctable, and that given four of those factors, that would place the district in low risk rather than high risk. On the other hand, one might wonder if some of the past practices of the district have not caught up with them in the current budget crisis.

Board Vice President Gina Daleiden was asked about the rating system.
“As with any standardized numbers, the numbers are not the whole story. So whether or not one question was weighted more than another, whether or not our score was a nine instead of a nine and a half, and I’m making that number up, the numerical value doesn’t matter to me, as much as the substance of the report. I am a trustee of this district, when I look at a document that says to me here are some issues with how the district’s finances are being run, we need to take those seriously, that’s the only way to get better. You have to look at things that can be improved and work on improving them. Some of the findings in this report—the responsible thing to do is to pay attention to them. To fix them. And it doesn’t really much matter to me whether it’s a high risk, medium risk, it’s not a grade on a paper and it’s not points in a pageant. This is about the practices of the district. And wanting to insure that they’re not only adequate but they’re really good. We have a great school district, and we need to have great fiscal practices so that we can support all of our programs and do the best for our kids. And it’s public money so we have to be careful in how we expended it.”
Both Sheila Allen and Gina Daleiden agree that things have changed.

Board Vice President Gina Daleiden wants to the public to know that “Past practices are in the past.” We have according to her new safeguards in place. We have new conflict of interest codes that will protect us from future problems with employees working in outside consulting firms, we have implemented the recommendations of the FCMAT report, the district reports to the board on a regular basis with easy to understand and clear budget updates. She expressed confidence both in the new CBO Bruce Colby and the new Superintendent James Hammond. And the board along with Bruce Colby has enacted a series of careful fiscal procedures so that it is easy to track monies as they go to and from projects.

Board President Sheila Allen likewise, declares it a “new day.”
“I really am not interested in having the district dragged through the mud further when these are things that have already happened. I’m totally fine with people knowing what happened that’s fine with me, but I want the headline and I want the last part of it to be here’s how it’s changed. It’s a new day. We have a new superintendent; we have an all-new budget office. We have this accounting information put into place. The board since I’ve been on it, has a very strong commitment to open government, no more closed door discussion about district information.”
Summary

My concluding remarks for this four-part series basically echoes the comment made by Board President Sheila Allen. I think the public can look at these problems and better understand in part why we are facing some of the budget problems that we are facing. However, I also think we must understand that the then new school board which came into office in December 2005 with newly elected members Sheila Allen, Gina Daleiden and Tim Taylor, joined with Jim Provenza in providing the leadership that has over the last two years taken deliberate and concrete steps to put the district on better fiscal ground. It was these school board members who led the fight to clean up the fiscal house of the district and in many cases uncovered past business practices condoned by previous school boards that have plagued the district for years.

There is better tracking, better oversight, and a new fiscal team. What is unfortunate is that the budgetary bottom has fallen out of the district at a time when in terms of policies and procedures, the district has never been stronger.

Nevertheless, I think there is a good amount of important information that has been gleaned out of this investigation in terms of the way that the business office was run, the way in which monies were handled, and most importantly the need for all districts to enact strong conflict of interest policies in order to better protect themselves from employees and companies that are seeking to profit on public money.

---Doug Paul Davis reporting

Monday, March 17, 2008

Top Vanguard Stories



Programming Note
: The fourth segment of the Tahir Ahad and Total School Solutions series will be posted on Tuesday rather than Monday this week.

Parents, Students and Community Members Mobilize To Save Emerson Junior High



The Vanguard made a brief stop on a busy day to Stonegate Country Club, where a group of parents, community members, and children were preparing posters for a planned protest on Tuesday, at 4 PM at Central Park.

The hopes of these protesters is to keep Emerson Junior High School open amid a budget crisis with the school board tentatively planning to close it pending more formal decisions coming as early as this Thursday.



For more information on the protest, log onto the Save Emerson blog.


---Doug Paul Davis reporting

Cabaldon and Yamada Open Their Headquarters Sunday as 8th AD Race Continues

In a stroke of irony, the campaigns of both Christopher Cabaldon and Mariko Yamada had their headquarters openings at the same time on the same day. This presented a logistical problem, graciously alleviated by the accommodation of the Yamada Campaign.

The events and indeed the very locations presented a contrast of styles of the campaigns.

For the Cabaldon campaign, it was located in Cabaldon's hometown of West Sacramento, where he has served as Mayor for now nearly 10 years. His headquarters was packed and festive. Loaded with elected officials from both inside and outside of the district. It was a veritable who's who of the 8th Assembly District and beyond.



Mayor Cabaldon addressed the enthusiastic crowd that was so large, it had to be moved outside of the headquarters.
"I want to say thank you for coming out today, it's a great day and I'm sure there are lots of other things you can be doing. This is really an opportunity for us to make change in our district and in this state of California. I'm really looking forward to it."
In his short speech, he talked about the struggles that lay ahead with a sense of hope and optimism that seems to embody the electorate these days.
"We have so many challenges in this part of California, but I also look around and see so much opportunity and so much hope and so much energy."


For the Yamada campaign, though I missed the ribbon cutting, it was a smaller, more business-like opening ceremony. Located in Vacaville, in the middle of the Solano County area that both campaigns need to make in-roads into in order to win, Yamada moves away from her Yolo County base to reach out across the county-line to the Solano County voters. By the time I reach the headquarters, there are over 30 volunteers, hard at work, stuffing and addressing envelopes for a fundraising event next month.



Supervisor Yamada had a ribbon cutting ceremony with roughly 50 supporters on hand.

When I caught up with her, she kindly gave me a brief statement.

"Welcome to Yamada 2008. We've kicked off our headquarters opening here in Vacaville and looking forwarded to a spirited sprint to the finish to June 3, 2008. We've had food, fun and festivities, and now we're working on a mailing party. We're working and we're just having a great time. Thank you for coming."



The Vanguard will continue its coverage of the 8th Assembly and many other races that Yolo County voters will be facing in the coming June Primary Election.

---Doug Paul Davis reporting

Sunday, March 16, 2008

Rick Gore Responds to District Attorney Jeff Reisig's Statement

On Friday, March 7, 2008, the Vanguard received a letter from Senior Investigator Rick Gore of the Yolo County District Attorney's Office. In that letter, Rick Gore accused the District Attorney, Jeff Reisig, of unethical practices relating to several incidents and cases.

Two of the more serious charges includes lying to the Judge during hearings on the gang injunction, and the failure to disclose the results of a gun test during the Halloween Homicide Case.

Jeff Reisig responded by calling the charges "reckless allegations," issuing a full denial, and suggesting that former Deputy District Attorney and candidate for DA in 2006, Pat Lenzi had been responsible for these charges.
"On March 6, 2008, the Yolo County District Attorney's office received notice that former candidate for the office of District Attorney, Patricia Lenzi, and current District Attorney Investigator, Rick Gore, have accused several currently employed prosecutors and investigators, including the District Attorney, of committing unethical acts.

'On behalf of the entire office, including the prosecutors and investigators targeted by these accusations, I deny these false and reckless allegations. I have requested an independent investigation, will be fully cooperative and look forward to the results."
Yesterday for the first time, the Vanguard along with the Davis Enterprise, Woodland Daily Democrat, and Sacramento Bee, has received a statement from Rick Gore.

He writes:
"It is not surprising to me that Mr. Reisig would not admit any wrongdoing. We all see this every day from every politician in a scandal. The rule is “Admit nothing”, “Deny everything”, and “Demand Proof”. After that, the common response is to claim it is politically motivated."
He goes on to argue that it is implausible that he would throw away his longtime law enforcement career based on the grievances of another individual.
"For someone to suggest, that I would throw my law enforcement career away, change my life as I know it and put myself in financial hardship, for someone else’s motivations is ludicrous."
The decision to write a letter was a very difficult one according to Mr. Gore.
"The decision to send this letter was deeply challenging, extremely stressful and one of the most difficult decisions I have made in my life. I made this decision, knowing full well what Mr. Reisig and the people in his inner circle, were capable of doing. I expected to be attacked and to be made the bad guy in this. I did not expect him to blame someone else and use this as an opportunity to take a cheap shot."
He then patently and emphatically denies any involvement of Pat Lenzi.
"For the record, Former DA Lenzi did not write this letter, did not encourage me to send this letter and was in no way responsible for this letter. The decision was mine and mine alone."
He then suggests that the media and investigators ought to look into these charges and then they can determine whether they are really that "reckless."
"I would hope the news media would keep their eye on the ball. This letter is to bring attention to the ethics of DA Reisig. The people of Yolo County need to know who they elected, how he is spending their money and how he is using and or abusing the power they gave him. It is my belief that the DA should be acting in the best interest of the people, not his own best interest.

I find it interesting that Mr. Reisig called my entire letter “reckless allegations”. Being an investigator, I have to think that a worthy reporter would try to confirm one or two facts in the letter. Perhaps a call to Woodland Police to see if a letter was sent by Mr. Reisig stating his authority to send his investigators where he pleased. Or maybe asking the county how many employees have left or been asked to leave since Mr. Reisig’s election."
The Vanguard also spoke with former Deputy District Attorney Pat Lenzi.

"Rick Gore is as honest a man as you will ever meet," she told the Vanguard. "I hope the investigation into Rick's allegations is thorough and professional."

Following Mr. Gore, she also suggested that authorities and the media examine the questions that were raised rather than motivations.
"It is more important to look at the questions Rick has raised and ascertain the level of merit they have than it is to chase after the DAs red herrings. That will only lead you to lose sight of the importance of Rick's actions."
She concludes:
"Rick is willing to put himself out there at risk to his career to do what he firmly believes is the right thing. We can all learn from and maybe even be inspired by his example."
The Pat Lenzi angle never made a lot of sense. Rick Gore was a career law enforcement officer who was two years from retirement. Pat Lenzi was no longer in the chain of command at the Yolo County District Attorney's Office. What benefit was there to Rick Gore to make things up in order to carry the water of an individual who was not in a position to help him? If he was going to act in an unethical manner, why would he not simply carry out the orders of the District Attorney who could give him career advancement?

At the end of the day, I agree with all that we need to let this process play out. We need to have an honest and thorough investigation into the allegations. Stay tuned for the Vanguard as this situation continues to develop.

---Doug Paul Davis reporting

News and Commentary: Justice Prevails Finally in the David Serena Case

In July of 2006, Yolo County headlines in both the Davis Enterprise and Woodland Daily Democratic, in big bold letters depicted the arrest of David Serena, head of the Yolo County Housing Authority until just a month before, on 19 felony counts, all stemming from medical benefits received for the children of Serena's girlfriend, now his wife.

Now 20 months and tens of thousands in legal expenses later, all charges have been dismissed. Judge Richard Kossow--a visiting judge since all Yolo County judges had to recuse themselves due to the Grand Jury lawsuit--issued the order that according to preliminary hearing evidence, it was unlikely that there was sufficient evidence of criminal wrongdoing to convict David Serena.

The Vanguard spoke with an elated Mr. Serena yesterday. "I feel a ton of bricks is off my back."

It is the opinion of many, that the criminal charges were simply a witch-hunt by the Yolo County District Attorney's Office seeking to find some criminal act to charge the former Housing Authority Director. After several grand jury investigations into Mr. Serena's activities at the Yolo County Housing Authority this was the only criminal act they felt they could charge him with felony or other counts. And indeed there were problems under Mr. Serena at YCHA--no one denies that. However, those were handled administratively by the County and the Board of Supervisors. Were criminal charges in this case really in the interest of justice or protecting the public?

For all of their investigations into David Serena, the only evidence that they could find to support criminal charges had to do with his receipt of health and dental benefits for his girlfriend and her two children.

According to Mr. Serena and his attorneys, he had filled out the papers accurately himself but a clerical error occurred and Mr. Serena never knew that the papers had been filed incorrectly by his clerk. According to court papers, it was his clerk who executed policy changes after Mr. Serena had requested his girlfriend and kids be added to the policy without knowing that they were ineligible.

David Serena told me the key testimony actually came from the prosecution's witnesses. They asked both the insurance agents for the health insurance and the dental insurance how often people filed erroneous claims or make other errors when they fill out their insurance papers. They said about 5% of the time. They were then asked what sort of remedy the insurance company ordinarily sought for such errors--whether they sought to correct the error and recoup the money or if they normally forwarded it to the District Attorney. According to Mr. Serena, they said that they never would forward such a matter to the District Attorney.

However, based on this scant evidence of criminal activity, the District Attorney's Office charged David Serena with one felony count of grand theft for each month the housing agency paid for increased insurance premiums by covering David Serena's ineligible family members.

In all, 19 felony counts were filed against David Serena. The District Attorney's Office was seeking to put him away for much of the rest of his life for receiving ineligible medical benefits.

The District Attorney's Office now had to decide whether or not to refile the charges.

The Woodland Daily Democrat quotes Jeff Reisig as weighing their options at this point.
"Our options are to re-evaluate the evidence, to see if there's something we left out... We'll step back and take a look at it. Basically, this is how the system works."
However, our sources tell the Vanguard that it is unlikely that the DA will re-file the charges.

The charges as well as the YCHA were front page news in 2006. However, reading the Woodland Daily Democrat from yesterday you would think that Mr. Serena got off on a technicality.

The headline read: "Ex-housing chief off the hook." My response was yes he got off on a technicality, the technicality being that they did not have evidence that a crime was actually committed.

For all of the investigations against David Serena, this was the only thing they could find that they could file criminal charges against him on. This is a grave misuse of government power in my view. This is malicious prosecution at its worst and it illustrates the attitude of the District Attorney's Office both under David Henderson and now under Jeff Reisig.

David Serena now gets a chance to put his life back together. He did so at tremendous expense. He was able to afford to hire top notch defense attorneys in the form of San Francisco Law Firm Gonzales-Leigh. But as we have learned in the last few years, many others are not so lucky and have their lives literally destroyed for very small offenses with often meager evidence. Is this really in the interest of justice?

---Doug Paul Davis reporting

Saturday, March 15, 2008

Commentary: On School Funding and Budget Crises--This is About Educating Your Kids

The pace at which events occur in this community is sometimes overwhelming and there are times it is difficult to pause for reflection. When in Sacramento two nights ago covering the Democratic Pre-Endorsement Conference a friend of mine and a fellow blogger who lives up in the foothills made the comment that Davis and Yolo County are interesting places to live where there is a large amount of action.

And sometimes it is simply too much action. There are things that I have wanted to cover that I have simply not had enough time to cover because the pace of events is so rapid.

It was a call last night that got me thinking about something. At the March 6, 2008 school board meeting--packed to the brink with students from DaVinci High School who were trying to save their school--the board was discussing options and mentioned that the deadline for putting another parcel tax on the ballot was March 7, 2008. So that option was not on the table. Their plan is to hope that the Governor's cuts are not quite as deep--a reasonable hope at this point, I'll add. But the Governor's cuts are only 40% of the cuts. Then they are hoping that fundraising will cut into the needed cuts as well and in November 2008 they can put another parcel tax on the ballot.

At the time it made some sense to me, now after another discussion it no longer makes sense to me. The budget problem did not suddenly emerge on March 6, 2008. In fact, it did not seem on our radar at all until early January, but it had to be on someone's mind even at that point.

Clearly by early January when they were talking $4 million in budget cuts, why wasn't one of the items immediately on the table dealing with instead of the spending side, the revenue side?

There is a perception out there by some that school districts in general are bloated masses of bureaucracy that are easy to cut. And yet when it comes down to it, when we actually look at the system in place, it becomes obvious that to cut real money, you have to cut programs that people (especially kids) like. Our system, inefficient as it is, even with a good degree of past fiscal mismanagement still operates in such a way that the only way to cut real money, not talking $10,000 but in the millions, is to close a school, cut music, cut language, cut programs people want and care about.

Fine, I get it. So why not put a contingent parcel tax on the ballot that kicks in given revenue problems? Why not have it as a temporary item, for one year, for two years, to ensure that we don't cut these programs. And then be honest and forthright with the public and tell them that we need this so that we don't have to close Emerson, we don't have to fire three-quarters of the teachers at DaVinci, so that we can still have music, and GATE, and programs that help the disadvantaged, and programs that help the smart kids, and programs that help the kids that don't quite fit in elsewhere...

Why did we not just lay all out on the line and tell people that if they want their great schools that they pay twice as much in property value so their kids can attend, then we all have to pitch in an additional $50 to $100 per year and save them right now?

Instead, I have high school students writing me asking me to come to their high school so I can see all the great programs that they have.

Instead, we have parents and teachers looking for ways to fundraise so that we can put enough money together to land a bit softer.

They have a blog now that is focused on saving Emerson Junior High. They have a rally on Tuesday at 4 PM at Central Park in Davis.

I want to talk about Emerson because I live just two blocks away.

First their message is simple:
"We can not allow the School District to take rushed decisions without an in depth task force study. The proposal to close one Jr. High will have deep negative repercussions across the whole Davis community and the environment! Laying off 20% of our teachers, librarians, psychologists, etc. guts our wonderful schools, reduces our quality of life, lowers our property values and decreases the city's tax revenue."
I agree and I also understand the school district's dilemma. But now I want to talk about the City of Davis' dilemma. You have Valley Oak that is closing down pending a miracle from the County Board of Education. You have a shopping center where there is no longer a grocery store.

Now you have West Davis. West Lake Shopping Center is without its grocery store. Now they are talking about closing down Emerson Junior High.

Huge swaths of Davis are now becoming without grocery store and without school.

Tim Wallace who lives across the street from Emerson in Village Homes writes into the Enterprise:
It's not hard to imagine that the property where Emerson Junior High School is sited being worth tens if not hundreds of millions of dollars to real estate developers, even in the current market. Upon visiting the Davis JointUnified School District Web site, I couldn't find anything even remotely resembling a cost-benefit analysis, or any analysis whatsoever justifying what seems to be the foregone conclusion, apparently advanced by the school board, that "Emerson will be closed."
He continues:
The only problem I can see with this plan, if that's what it is, is that it assumes the forbearance and apathy of West Davis parents and homeowners who will lose big in their quality of life and home values if it's enacted. Further, it makes assumptions about our willingness to suffer disproportionately to the rest of Davis , based on no evidence and little to no meaningful public discussion.
While I found it impossible to tell from their Web site whether the closure of Emerson is on the agenda of the next DJUSD board meeting, I believe it's on for March 20. West Davis might think about waking up before it's too late to engage the board in a discussion."

I think this is a good point and I think we have all been asleep for too long on this.

Don't get me wrong, I like most of the board members, I think they are good people who have a real passion for education--even ones that I disagree with on substantive policy issues. I think we hired a good man in James Hammond to be the Superintendent. But I think we got blindsided on this.

Here is my suggestion. Meet with County Clerk Freddie Oakley. Figure out how to get a ballot measure on the ballot before November. Figure out how to cut costs by making it vote by mail only. I do not think we can wait until November to save our schools. And I do not think we can afford to cut what is being proposed. Let's all come together and fix the problem. Maybe that's a crazy idea, but we have to do something for our community and for the kids.

---Doug Paul Davis reporting

Friday, March 14, 2008

Friday Vanguard Stories


UPDATE: See the side column for PODCASTS of past Vanguard Radio Shows

Cabaldon Wins Pre-Endorsement Pending Vote At CDP Convention

West Sacramento Mayor Christopher Cabaldon yesterday evening won the Democratic Party's Pre-Endorsement. The endorsement now moves to the Democratic Party's Consent Calendar whereby if there are no challenges, Mayor Cabaldon would be formally endorsed by the Democratic Party by a simple majority of the party.

Christopher Cabaldon crossed the 70% threshold with 66 votes to just 25 for his Democratic Primary challenger Yolo County Supervisor Mariko Yamada. Two voters voted for no endorsement.

Given the charges and counter-charges that flew between the camps on Wednesday, there is a good chance there will be a challenge to the pre-endorsement results. The Yamada Campaign alleged that the Cabaldon Campaign artificially inflated the membership in the West Sacramento Democratic Club, which gave them an additional 38 delegates that were eligible to vote on or before the Thursday Pre-Endorsement Conference. The Cabaldon campaign argued that they simply were engaging in party building activities. Meanwhile, fallout continued from inside maneuvering in the Davis Democratic Club where delegates were apparently drawn up by a few insiders with little to no notice to the executive board in the club itself.

According to a Democratic Party official, in order to be removed from the consent calendar--20 percent of the Democratic State Central Committee members could send the State Party a letter wishing to pull a specific race from the consent calendar. This must be done by March 18 at 5 pm. If that were to occur, they would have an endorsing caucus at the Democratic State Convention in San Jose. At that point the winner would need to receive 60% of the vote to then be put on the consent calendar on Sunday, March 30th.

The Democratic Party Official that I spoke with believes almost certainly that this item will get pulled for some reason or another, especially given formal complaints that were filed about the procedure. However, if it does get pulled, and a vote takes place in San Jose, the rules would completely change. There would be no mail-in ballots. The Democratic Clubs, the source of much of this controversy would not have a vote, it would merely be assigned delegates selected either from the County Central Committee, the Assembly District Committee or appointed by elected Democratic Officials that would be able to vote. However, people can use proxies.

Looks like more intrigue in this heated race for the 8th Assembly District Democratic nominee. At stake is the fact that the winner of the Democratic Primary will almost certainly become the next Assembly Member from the heavily Democratic 8th Assembly District currently held by Assemblywoman Lois Wolk.

---Doug Paul Davis reporting

All Charges Against Former Yolo County Housing Authority Director David Serena Dismissed

In late-breaking news yesterday, the Vanguard learned that former executive director of the Yolo County Housing Authority, David Serena, had all charges against him dismissed by a Sonoma County Judge who was brought in to work the case due to concerns about partiality in Yolo County.

The former executive director was charged with 19 felony counts in 2006 including grand theft, insurance fraud and making false insurance claims.

David Serena filed suit against the Yolo County grand jury challenging the recruitment and selection process as being discriminatory against Latinos. However in January of 2007, the lawsuit was thrown out by US District Judge Frank C. Damrell Jr.

Serena and his legal team that included James Hammer and Whitney Leigh, produced statistics that showed a 13.5 percent discrepancy between expected and actual Latino composition.

U.S. District Judge Frank C. Damrell Jr. ruled that the three year time period was not long enough to demonstrate substantial underrepresentation of Latinos. Moreover, they did not have direct evidence of intent to discriminate.

Over the past 10 years, Latinos have only been underrepresented by 6.5 percent which would be equivalent of around one juror on average. This was not enough to demonstrate a violation under the Constitution's equal protection clause.

However, Judge Damrell did say that while he could not consider solely the last three years, he did find the higher disparity in the last three years to be troubling. The Sacramento Bee quotes him as saying "Unaddressed or ignored, this continuing disparity is likely to provide future evidence of systemic underrepresentation of a constitutional dimension."

In a week when the Yolo County District Attorney's office has been under fire for alleged ethics violations from one of its top investigators, the dismissal of this high profile case seems to be another stain against the department.

Due to the late nature of this ruling, the Vanguard has not been able to obtain comments from either David Serena or his attorneys, Matt Gonzales and Whitney Leigh from the San Francisco based law firm. Matt Gonzales has recently been named as Ralph Nader's Vice Presidential candidate; however, he was reportedly in court for this case.

Our opinion has long been that this case should have been handled administratively, not criminally. The Yolo County Board of Supervisors had already dealt with this matter when the Yolo County District Attorney's Office and Grand Jury stepped in. This ruling would seem to vindicate that view.

---Doug Paul Davis reporting

Thursday, March 13, 2008

Hate Crimes Workshop Last Night in Davis: All Crimes Are Not Hate Crimes

In December of 2007, there were two hate crime incidents. One involved the spray painting of two sets of residents. The other involved the vandalism of Holmes Junior High. As it turned out, the second incident involved students of color seeking to either deflect blame or rile up the adults. However, that makes it no less insidious or hurtful to the broader community.



Last night, Jann Murray-Garcia put together a program called: "Arent's All Crimes Hate Crimes? No." The goal is to prevent student hate crimes in Davis. She brought together a broad and diverse group of people to get the message out including Lt. Darren Pytel in the Davis Police Department and Director of Student Services Pam Mari. Also in attendance was Superintendent James Hammond who did the introduction, two school board members President Sheila Allen and Board Member Susan Lovenberg; Climate Coordinator Mel Lewis; Lt. Tom Walz of the Davis Police Department; Supervisor Mariko Yamada; Ombudsman Bob Aaronson. Conspicuously absent was anyone from the District Attorney's Office and anyone either from the City or the City Council.

Dr. Jann Murray-Garcia discussed at length a history of hate crimes in Davis, definitions of hate crimes, means to prevent hate crimes, and what hate crimes mean for a community like Davis.

The presentation was recorded by the folks at Davis Community Television for rebroadcast on Channel 17. I strongly encourage people to watch this presentation it is very informative and deals with a number of myths and misperceptions.

In what follows, I will discussion some of the things that are of most interest that came up during the presentation.

First is the myth that hate crimes or what is sometimes referred to as "bias-related crimes" are aimed at certain "protected" groups with a special status under the law.

According to author David Neiwert writes, “Every citizen, regardless of race, religion, ethnicity, gender or sexual preference, is protected equally. Indeed, the most significant test case for hate crimes laws - Wisconsin v. Mitchell, a unanimous 1993 Supreme Court ruling - involved a white victim and a black perpetrator….” (p. 131). According to U.S. Department of Justice statistics, approximately 20% of hate crimes victims are White.

In a hate crime, the victim is not merely the individual but rather "entire groups of people who share the same characteristic." Moreover, "controlling for type of crime, they leave victims more chronically traumatized."

According to the presentation:
"A 2006 U.S. Department of Justice study reports that there are more than 7,000 hate crimes or bias-related crimes across the country per year.

In an average year, watchdog agencies like Southern Poverty Law Center receive a dozen or so reports of noose incidents from across the country."
Dr. Murray-Garcia also showed in her slides a January 21, 2003 letter to the editor from a Fairfield High School basketball player (see below in the slides and pictures section).
"In 2002, Fairfield High School basketball player, Ian Blair, wrote a letter to the editor of the Davis Enterprise, shocked at the behavior of Davis High School students. By his report, confirmed later at a Davis High student forum, “cheering” students shouted some of the following slurs when Ian came down to their side of the court:

“Cornrows!”

“Who’s your baby’s momma?”

“Food stamps don’t buy a Hummer!” (apparently in reference to then high school star Lebron James, who purchased a Hummer automobile prior to signing with the NBA.)

“Who’s your fifth baby?”

“We go to college; you go to jail!”

Students were reprimanded only for “negative cheering” and “poor sportsmanship,” given what was reported to DHS administrators. Less than two weeks later, the spray painting of the N-word in West Davis occurred."
Dr. Murray-Garcia then went on to describe a series of recent hate crimes perpetrated by Davis Students.
Winter 2002: A white Davis High (DHS) student serially harassed an African American DHS student, ultimately featuring the Black student on a sophisticated web site, frequented by several DHS students, graphically detailing the physical harm he would like to do to this student (whom he named).

February 2003: a White DHS student spray-painted the N-word in red on the cul-de-sac where a high school party had been held the evening before.

October 2003: Four young people, including at least one DHS student, tagged with graffiti and threw more than several dozen eggs at the car of an openly gay Davis man who lived in Central Davis. The victim had a gay pride flag hanging on the door of his townhouse.

December 2004: The newest constructed building of DHS (the P-building) was vandalized with racist and sexually explicit graffiti, targeting an African American staff member by name (with the N-word) and a White female vice principal.

February 2005: During the night, two Davis students vandalized Fairfield Elementary School and Holmes Junior High School (both in Davis) and two Davis churches. They went from rural West Davis to East Davis, causing almost $30,000 worth of damage. They used swastikas, satanist language, and phrases including, “Kill the Jews! Kill the N_g_ers!”

December 2007: The garages of two East Davis homes were vandalized with horribly vulgar hate graffiti. In the house least affected, the writing read, “KKK. F__k N_g_ers.” Two DHS students were arrested. Though the incident was allegedly sparked by a conflict between longstanding friends, the intensity, sophistication and volume of the hate graffiti are particularly disturbing.

December 2007: Five days following the incident above in east Davis, a “large” amount of racist graffiti targeting African Americans and Asians was found on the Holmes Junior High School buildings. Five students were involved and were arrested for felony vandalism. The “ring leader” was allegedly angry with one of the school’s administrators.
Who are those most likely to commit hate crimes? Not surprisingly, not those who are on a "life mission" to commit acts of hate like members of the KKK. Dr. Jann Murray-Garcia cites David Neiwert:
“The reality is that…”local kids’ are in fact the most common perpetrators of bias crimes. Numerous studies have demonstrated that only a small percentage of hate crimes are committed by people with any connection to or background involving organized “hate groups”…What these studies have found instead is that the majority of bias crimes are committed by seemingly normal, mostly law-abiding young people who often see nothing wrong with their behavior. Bias crime offenders are predominantly young white males, typically from working-class or middle class backgrounds. And though ties to hate groups are rare, the perpetrators are clearly inspired by these groups’ rhetoric, shouting their well known slogans, parroting their political rhetoric, and displaying such symbols of white supremacism as the swastika or the Confederate flag." (p.46)
Instead most are committed by what they term as "thrill seekers." This means the hatred behind these crimes is superficial. The offenders are not "profoundly convinced of the legitimate of their criminal acts." They can be more easily dissuaded from repeating them. And the threat of criminal sanctions may be enough to convince a group of "bored young men" to do another activity.

This makes it important to apprehend and deal with hate crime perpetrators at this point in time. It takes a concerted community effort however to do so before they graduate from property crimes to crimes that involve physical injury.

When these crimes are not taken seriously however, the perpetrators become more violent, it tends to be an affront to the offended community. We need to assume that any such crime is the tip of the iceberg until and unless proven otherwise. Moreover, we miss a teachable moment, such as this, for the community and its young people.

Dr. Jann Murray-Garcia repeatedly has found that students are more aware of the hate crime problem than adults.

These are quotes from in-depth interviews that were done with former Davis High School Youth In Focus Student Research Scholars from the academic year 2003-2004. "The students express disappointment with the lack of adult leadership and guidance regarding troublesome issues of race relations in Davis, including the incidence of hate crimes."
"[T]here is a problem and like students know it is a problem more than I think adults do. Students are more aware that there is racial tension and racial inequality in Davis more than adults do.

[T]wo years ago, I mean someone spray painted the, you know, n_g_er on this guy’s lawn pretty much and I look back at my family and no one talked about it at all…It was never talked about…no one would of ever really known about it if this group of African Americans hadn’t, you know, said what the hell is going on…

[W]hat really happened in Davis, um, most of it is swept under the rug and they do a very good job of just keeping things under wraps."
Lt. Darren Pytel of the Davis Police Department discussed a number of crime related issues. One point of particular interest was the difference between hate crimes and a hate incident. A hate crime is an act of bias crime perpetrated against a specific individual. A hate incident is an act that involves the same sorts of features but is not directed against an individual. For instance, if someone spray paints an racial epithet on the home of an African-American that would be a hate crime. But if they spray painted the same thing on a park bench with no clear target, that would be a hate incident.

Pam Mari spent a good deal of time talking about cyber-crimes including cyber-stalking and cyber-bullying. These types of crimes are on the increase as students become more technologically sophisticated.

This was a good start for a community discussion, the one real draw-back was the limited number of people actually from the community.

In what follows is a serious of slide from the presentation that were of most interest. The reader should be warned in advanced that some of these images may be disturbing. However, I think the community needs to see some of these things and the blog is a better vehicle than the newspaper which is governed with strict laws about what they can and cannot publish.



---Doug Paul Davis reporting