NEVADA COUNTY CONSOLIDATED FIRE DISTRICT BOARD OF DIRECTORS Summary

The Nevada County Consolidated Fire District is an independent special district responsible for fire protection and emergency medical services in the unincorporated areas in and around Grass Valley, California and Nevada City, California. The Nevada County Consolidated Fire District is governed by a Board of Directors elected by the districts voters. The Nevada County Grand Jury received three citizen complaints regarding the Nevada County Consolidated Fire District. In the process of investigating these complaints, the Nevada County Grand Jury found the Nevada County Consolidated Fire District Board of Directors, both collectively and individually, have fallen woefully short in their roles and responsibilities as board members of a public agency and failed to follow or voluntarily chose to ignore their internal policies and procedures, as well as Californias open meeting laws, known as the Ralph M. Brown Act. The Nevada County Grand Jury found the Nevada County Consolidated Fire District Board of Directors is dysfunctional and is wracked by discord, acrimony, back-biting, and mistrust among Board Members. As such, the meetings of the Nevada County Consolidated Fire District Board of Directors are acrimonious and lack professionalism, civility, and respect between Board Members. Additionally, the Board has exhibited a lack of civility, decorum, and respect toward some employees of the Nevada County Consolidated Fire District. The Nevada County Grand Jury found there is an expectation of a higher standard of behavior by the Nevada County Consolidated Board of Directors as individuals elected to positions of public trust by the citizens of the Nevada County Consolidated Fire District. The Nevada County Grand Jury found there is a complete breakdown of organizational and chain-of-command structure within the Nevada County Consolidated Fire District. The Nevada County Consolidated Fire District Board of Directors has undermined the authority of the Fire Chief as the Chief Executive Officer of the Nevada County Consolidated Fire District and inserted themselves into a management role in violation of internal by-laws and policies and procedures. The Nevada County Grand Jury found the Nevada County Consolidated Fire Districts lack of executive leadership and micromanagement by the Nevada County Consolidated Fire District Board of Directors fostered an unhealthy working environment for administrative staff. This led to personal hostility among administrative staff, the Nevada County Consolidated Fire District Board of Directors, and the Nevada County Consolidated Fire District employees. This unhealthy environment led to the physical separation of administrative staff, resulting in additional time and effort being expended to provide administrative services.

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The Nevada County Grand Jury found the Nevada County Consolidated Fire District lacks a comprehensive administrative policy and procedures manual. Currently, the numerous and various codes, by-laws, policies, rules, and ordinances promulgated by the Nevada County Consolidated Fire District are inadequate, vague, often in conflict, and contain provisions allowing the Nevada County Consolidated Fire District Board of Directors to pick and choose the governing rules it wishes to follow and those it wishes to ignore. The Nevada County Grand Jury found the Nevada County Consolidated Fire District Board of Directors failed to utilize the services of legal counsel to provide advice to board members. The Nevada County Consolidated Fire District Board of Directors repeatedly entered into financial agreements which are inadequate, incomplete, unwritten, and lack protection for the Nevada County Consolidated Fire District. These actions, in turn, caused excessive and unexpected expenditures by the Nevada County Consolidated Fire District. The Nevada County Grand Jury found the Nevada County Consolidated Fire District Board of Directors failed to take appropriate action in response to allegations of employee and Board violations of internal rules, regulations, policy, procedures, and ordinances. The Nevada County Grand Jury found the credibility to negotiate collective bargaining agreements by the Nevada County Consolidated Fire District Board of Directors is questionable, due to close personal relationships between some directors and the leadership of the Nevada County Professional Firefighters, Local 3800 of the International Association of Fire Fighters. The Nevada County Grand Jury recommends the members of the Nevada County Consolidated Fire District Board of Directors attend training regarding the roles and responsibilities of board members in a special district. The members of the Nevada County Consolidated Fire District Board of Directors should conduct themselves, collectively and individually, in a manner expected of persons elected to positions of public trust. The Nevada County Grand Jury recommends the Nevada County Consolidated Fire District Board of Directors should work with the Fire Chief to develop a comprehensive policy and procedures manual. This policy and procedures manual should include thorough review of all financial agreements to protect the Nevada County Consolidated Fire District from excessive expenditures. Additionally, the Nevada County Consolidated Fire District Board of Directors should actively seek out the advice and expertise of legal counsel as required in the policy and procedures manual. The Nevada County Grand Jury recommends the Fire Chief should have clear authority to implement the newly developed policy and procedures and to manage the day-to-day operations of the Nevada County Consolidated Fire District. Conversely, the Nevada County Consolidated Fire District Board of Directors should respect the organizational structure and chain of command structure and not interject themselves into the management of the day-today operations of the Nevada County Consolidated Fire District.

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The Nevada County Grand Jury recommends the members of the Nevada County Consolidated Fire District Board of Directors maintain a professional relationship with the leadership of employee bargaining units to ensure there is no perception of impropriety and undue influence on decision making. The Nevada County Consolidated Fire District Board of Directors should improve existing policies to facilitate open communication among the Nevada County Consolidated Fire District Board of Directors, staff, and the public. Finally, the Nevada County Grand Jury recommends the Nevada County Consolidated Fire District Board of Directors, the management, and staff work together to restore the public trust and rebuild the public image of the Nevada County Consolidated Fire Protection District.

Reasons for Investigation

In 2012, the Nevada County Grand Jury (Jury) received three citizen complaints regarding the Nevada County Consolidated Fire District (NCCFD). The complainants requested the Jury review the actions of the NCCFD Board of Directors (Board) for failures in following prescribed rules, regulations, and ordinances. The complainants also alleged possible violations of open meeting laws by the Board. The Jury has the authority to investigate special purpose assessment or taxing districts, including those commonly known as special districts, in Nevada County.

Background
Special districts are a form of local government created by a community to meet a specific need. Most of Californias special districts perform a single function such as sewage, water, fire protection, pest management, or cemetery management. There are approximately 2,300 independent special districts in California, each governed by an independent board of directors elected by the districts voters or appointed to a fixed term of office by either a city council or a county board of supervisors. There are twenty-four independent special districts in Nevada County. The NCCFD is an independent special district supported by public funds. The NCCFD is made up of approximately thirty-two full-time personnel. The NCCFD budget for 20122013 is approximately $5,300,000. The NCCFD is responsible for approximately 150 square miles of western Nevada County and serves an estimated 35,000 residents. The NCCFD is governed by a seven-member Board elected by district voters. The Board is responsible for setting policy and general administrative procedures. The Board meets in regular session every month. These meetings take place at 7:00 pm on the third Thursday of each month and are open to the public.

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In the general election of November 2012, two new members were elected to the Board. One incumbent Board member was returned to office by district voters.

Procedures Followed
The Jury interviewed 20 individuals including members of the staff of the NCCFD; the NCCFD Board; the Nevada County Professional Firefighters Union, International Firefighters Association, Local 3800 (Local 3800); the Nevada County Board of Supervisors; and the public. The Jury also reviewed related documents including Board Meeting Agendas and Minutes, material from the NCCFD website, NCCFD staff reports, NCCFD governing documents, e-mails, written documentation prepared by Board members, quotations of Board members in the media, and audio recordings of Board Meetings. The Jurys investigation focused on the time period of November 2011 through the present.

Facts
General F.A.1. The NCCFD is governed by a seven-member Board elected by registered voters of the NCCFD during the general elections held in November. The members of the Board serve four-year terms. The past Chairperson served until January 1, 2013. The Board selected a new Chairperson, effective January 1, 2013. The new Chairperson served until March 15, 2013, when he resigned as Chairperson. The resignation was accepted by the Board on March 21, 2013. A new Chairperson was appointed by the Board on March 21, 2013. The California Special Districts Association provides education and information to board members and staff of special districts in California on their roles and responsibilities. The Nevada County Local Agency Formation Commission (LAFCo) provides education and information to board members and staff of special districts in Nevada County on their roles and responsibilities. The NCCFD budgets monies for the education and training of Board members. All members of the Board completed ethics training in compliance with the state requirements for local officials.

F.A.2. F.A.3.

F.A.4.

F.A.5.

F.A.6.

F.A.7.

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F.A.8.

Some members of the Board stated they knew of other educational and training opportunities but chose not to attend. California Government Code section 54950 et seq., commonly known as the Ralph M. Brown Act (Brown Act), is the California state law which outlines the responsibilities and requirements of open public meetings held by the governing board of a public agency, including defining a special district as a public agency, defining a meeting of a governing board of a public agency to include any gathering of a quorum of its members to discuss or transact business under the governing boards jurisdiction, requiring a public agency to notice the public of the agenda of a regularly scheduled meeting of the governing board of the public agency at least 72 hours in advance of the scheduled meeting, requiring a public agency to notice the public of the agenda of a special meeting of the governing board of the public agency at least 24 hours in advance of the scheduled meeting, requiring the public agency to notice the public of the agenda of an emergency meeting of the governing board at least one hour in advance of the scheduled meeting, allowing the governing board of a public agency to enter into closed or executive session regarding specified agenda items, requiring the governing board to report in open session any action taken on specified agenda items in closed or executive session.

F.A.9.

F.A.10.

The firefighter employees of the NCCFD are represented by a labor organization, the Nevada County Professional Firefighters, Local 3800 of the International Association of Fire Fighters (Local 3800). The President of Local 3800 is an employee of the NCCFD. Referring to a NCCFD employee, a Board member stated in an open meeting, We ought to fire the son of a b. right now. The Jury has observed Board members, during an open meeting, engaging in a personal discussion and disparaging each other regarding fire stations named after each Board member. A Board member, during a public meeting, belittled and disparaged advice given to the Board by NCCFD staff. A Board member has filed a complaint with the Nevada County District Attorney, alleging misappropriation of public funds by employees of the NCCFD.

F.A.11. F.A.12.

F.A.13.

F.A.14.

F.A.15.

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F.A.16.

A Board member has filed a complaint with the Nevada County District Attorneys Office, alleging extortion and conspiracy b y two other Board members. During an open, public meeting, a Board member referred to the Brown Act as a roadblock to getting anything done.

F.A.17.

Administration of the NCCFD F.A.18. The Nevada County Consolidated Fire District By-Laws (By-Laws), section 6.3(b), titled Duties of the Fire Chief, states, in part, The Chief has the responsibility for the overall management of all operations of the District. F.A.19. F.A.20. The Fire Chief is in charge of day-to-day operations of the NCCFD. The Board formally placed the Fire Chief on administrative leave on April 19, 2012. A temporary Division Chief was named by the Board on March 23, 2012 to fulfill the duties of the Fire Chief. The By-Laws, Section 3.2(b), titled Board of Directors, General Powers and Duties, states The Board has the responsibility to establish the overall policies of the District regarding the scope and level of service to be provided, and should not direct day-to-day management of the District. F.A.23. A Board member has publicly stated, "They [staff] weren't following instructions. They wanted to confuse the issue. We [the Board] are the ones in charge, they are supposed to follow our orders." Under the NCCFD organizational structure, the Finance Manager and the Finance Administrative Assistant report directly to the Fire Chief. A member of the administrative staff refused to comply with a request from the temporary Division Chief to produce NCCFD documentation. Due to personal conflicts, financial and administrative employees are physically located in two separate locations, approximately six miles apart.

F.A.21.

F.A.22.

F.A.24.

F.A.25.

F.A.26.

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F.A.27.

The Finance Manager/Office Manager and the Finance Administrative Assistant are located at 10135 Coyote Street, Nevada City, California. The Fire Chief, the Division Chief, a Battalion Chief, the Human Resources Administrator, the Board Secretary, and the Operations Services Specialist are located at 11329 McCourtney Road, Grass Valley, California. Members of the NCCFD staff stated they were fearful of and intimidated by the mismanagement and micromanagement by the Board. Members of the NCCFD staff stated they feared employment termination because of intimidation by the Board. Members of the Board stated they were aware of the perceived hostile work environment at the NCCFD.

F.A.28.

F.A.29.

F.A.30.

F.A.31.

Policies and Procedures F.A.32. F.A.33. The NCCFD does not have a comprehensive policy and procedures manual. The NCCFD has various rules, resolutions, policies, and ordinances regarding various subject matters. Section 4.13(d) of the NCCFD By-Laws, titled Transactions of the Board, states By a majority vote, and for good cause shown, the Board of Directors may approve a variance from the strict application of District ordinances, resolutions, and policies. F.A.35. Section 1.1.1 of the Nevada County Consolidated Fire District Personnel Code, titled Purpose of this Code states, in part, The small number of employees of the District, however, requires that management be allowed considerable flexibility in the application of these policies.

F.A.34.

Underutilization of NCCFD Legal Counsel F.A.36. The Board has contracted with a private attorney to provide legal counsel to the Board and to NCCFD staff.

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F.A.37.

The Board met, in either regularly scheduled meetings or in special meetings, on 33 occasions between January 20, 2011 and March 21, 2013. The Board Agendas and Board Minutes indicate the Board discussed and/or took action on numerous agenda items, in both open and closed sessions, without the benefit of legal counsel being present, including in part Review Complaints Against a Public Employee, Conference with Labor Negotiators, Public Employee Release, Conference with Real Property Negotiators, Anticipated Litigation, Conference with Legal Counsel Anticipated Litigation, Public Employee Evaluation, Public Employee Matter, Public Employee Personnel Matter.

F.A.38.

F.A.39.

The NCCFDs legal counsel was present on three of the 33 occasions between January 20, 2011 and March 21, 2013, according to Board Minutes.

Special Tax Assessment Election of 2012 F.A.40. In the fall of 2011, the Board determined the cost of providing emergency services was increasing while the NCCFDs revenues were not keeping pace, due to the economic downturn. The NCCFD website states that during the economic downturn the Board had F.A.42. reduced overhead and administrative costs by not filling employee positions that were vacated through attrition, not provided NCCFD employees with cost-of-living salary increases for the previous four years, negotiated a 7% salary decrease for NCCFD firefighters, negotiated with all NCCFD employees to have employees pay a portion of their medical insurance premiums, closed three fire stations, on a rotating basis, to reduce costs.

F.A.41.

The NCCFDs website stated funding received from the special tax measure would ensure the NCCFD keep all existing fire stations open and stop station closures on a rotating basis, preserve rapid emergency response time to all emergency calls, preserve local emergency medical services and rescue services,
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 F.A.43.

maintain current protection from wildland fires, prevent the layoff of critically needed firefighting personnel, spend all funds to maintain emergency services.

At the Boards regularly scheduled meeting on November 17, 2011, the Board decided to hold a vote-by-mail election to seek approval of a special tax measure on properties located within the NCCFD. The Board chose not to utilize the Nevada County Elections Office to administer the election as the Board did not want to wait for the scheduled primary election in June 2012. The NCCFDs website indicates the timeline for the vote-by-mail election. The ballots would be mailed to registered voters on February 6, 2012. The completed ballots were to be returned to the NCCFD by March 6, 2012. The election result would be announced at the regularly scheduled Board meeting on March 15, 2012.

F.A.44.

F.A.45.

F.A.46.

At the Board meeting on March 15, 2012, the Fire Chief announced the special tax measure had passed.

Letter of No-Confidence F.A.47. On February 21, 2012, Local 3800 prepared a letter to the Board stating the members of Local 3800 had, NO CONFIDENCE in the abilities of [the Fire Chief] with matters regarding collective bargaining, management, leadership and integrity. This letter was presented to the Board Chair and a Board member on February 24, 2012 by the President of Local 3800. The Board Chair and Local 3800 President did not present the no-confidence letter to the Board because both felt it could possibly affect the on-going special tax measure election. On Saturday, February 25, 2012, the Board Chair sent a copy of the noconfidence letter to two Board members by electronic mail (e-mail). On Monday, February 27, 2012, the Board Chair spoke to all Board members individually by telephone regarding the no-confidence letter. On Monday, February 27, 2012, the Board Chair and two Board members met with the NCCFDs legal counsel regarding the no-confidence letter.
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F.A.48.

F.A.49.

F.A.50.

F.A.51.

F.A.52.

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F.A.53.

On Monday, February 27, 2012, the Board Chair and two Board members met with the Fire Chief regarding the no-confidence letter. On Monday, February 27, 2012, the Board Chair sent an e-mail to all Board members, stating the Board Chair and two Board members, acting as the Ad Hoc Committee on District Restructuring would deal with the issue of the no-confidence letter. Section 5.3 of the NCCFD By-Laws, titled Duties of Board Officers, states (a) The Chairman The Chairman shall preside at Board meetings and generally perform such other duties as directed by the Board. The Chairman shall have authority outside of regular meetings to make decisions concerning the following: (1) Procedural issues relating to meetings such as the agenda, noticing, time and place, etc., (2) Providing the Chief with guidance as to the interpretation of Board action.

F.A.54.

F.A.55.

F.A.56.

Section 5.5 of the NCCFD By-Laws, sub-titled Committees states The Board may, from time to time, form other committees as are necessary.

F.A.57.

A Board member was asked, by the Jury, why the Board Chairman had unilaterally established a committee in violation of NCCFD By-Laws, he replied, The By-Laws do not say the Board has to vote on it. On Wednesday, February 29, 2012, the Board Chair sent an e-mail to all Board members, which reads, in part, Lets be very aware of the Brown Act in our communications. A give and take in email can and likely would be construed as a violation of the Act. These are questions that we can resolve in other ways. If you have any questions that need attention, please send them to Directors [Board Member], [Board Member] or myself, and we will do our very best to integrate your concerns into our ongoing discussions. The Ad Hoc committee has be (sic) ability to work on this and then report back to the whole Board, where we can have further discussions in non-public session concerning protected employee issues. Please understand, any questions you may have, or suggestions are very important to us, so do not fail to share concerns and questions with the Ad

F.A.58.

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Hoc committee; I will guarantee that they will be seriously considered. It is just the discussion among Board members that may result in subsequent decisions are prohibited. F.A.59. A majority of the Board members stated they responded to the Board Chairmans e-mail regarding the no-confidence letter. The Opinions of the Attorney General of California (84 Ops. Cal. Atty. Gen. 30 (2001)) states a majority of the governing board violates the Brown Act if the members e-mail each other regarding current issues under the governing boards jurisdiction. On Thursday, March 1, 2012, the Ad Hoc Committee on District Restructuring and the Boards legal counsel met with representatives of Local 3800 regarding the no-confidence letter. There are no agendas or minutes of any scheduled regular meeting or special meeting of the full Board between February 16, 2012 and March 15, 2012.

F.A.60.

F.A.61.

F.A.62.

NCCFD Board Meeting of March 15, 2012 F.A.63. At the regularly scheduled Board meeting on March 15, 2012, the Board met in closed session to Review Complaint against a Public Employee. In the closed session, the Board voted 7-0 in an affirmative vote of confidence in the Fire Chief. The Board was notified by the representative of the Fire Chief that the Board was required to report the action in open session. The Board told the Fire Chief and his representative that they would not report the vote in open session. A Board member reported, in open session, the Board had directed the Chairman how to proceed, and he will be following up in the next couple of days. After the Board meeting, there was an alleged physical altercation between the Fire Chief and a NCCFD employee. A representative of Local 3800 telephoned a Board member to report the alleged altercation between the Fire Chief and the NCCFD employee that same night.

F.A.64.

F.A.65.

F.A.66.

F.A.67.

F.A.68.

F.A.69.

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F.A.70.

The Board member contacted was a Reserve Deputy Sheriff with the Nevada County Sheriffs Office (NCSO) at the time of the telephone call. The representative of Local 3800 requested the Board member investigate the alleged altercation in the Board members capacity as a Reserve Deputy Sheriff of the NCSO. The Board member declined to intervene and directed the representative to report the altercation to the NCSO. The representative then reported the alleged altercation to the NCSO. An onduty Deputy Sheriff responded and took a report. The NCSO forwarded an investigative report to the Nevada County District Attorneys Office (NCDA) for review. After review, the NCDA declined to file any criminal charges in the matter.

F.A.71.

F.A.72.

F.A.73.

F.A.74.

Lack of Fiduciary Responsibility - Employee Concessions F.A.75. On November 17, 2011, the Board decided to seek voter approval of a special tax measure. At a special meeting of the Board on December 1, 2011, the Board approved Nevada County Consolidated Fire District Resolution R11-17, entitled Resolution Authorizing Execution of Memoranda of Understanding Concerning Compensation and Benefits with the Classified District Employees (Resolution 11-17). Attachment A of Resolution 11-17 is entitled, Memorandum of Understanding Between Nevada County Consolidated Professional Firefighters, IAFF Local 3800 December 1, 2011 through December 31, 2012 (MOU). Section 5, also known as Clause 5 of the MOU, entitled Salary Schedule, states, in part, (b) The EMPLOYEES and the DISTRICT have agreed to postpone merit increases for the term of this MOU Merit increases shall take place on the employees next evaluation date in Calendar year of 2013 and will not be retroactive back to the 2011-2012 Fiscal Year. F.A.79. Section 13, also known as Clause 13 of the MOU, titled Holidays, states, in part,

F.A.76.

F.A.77.

F.A.78.

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(d) The EMPLOYEES and the DISTRICT have agreed to postpone the holiday pay This section will be reinstated on January 1, 2013 and will not be retroactive back to the 2011-2012 Fiscal Year. F.A.80. F.A.81. On March 15, 2012, it was announced the special tax measure had passed. At the regularly scheduled Board meeting on September 20, 2012, the Board met in closed session for Conference with Labor Negotiators. The Board Minutes of September 20, 2012, states, in part, Director [Board Member] made the following motion in Open Session: MOTION: To reinstate all Local 3800 members merit increases Section 5 Article B, and Holiday Pay Section 13, Article D, retroactive to July 1, 2012. This motion will not change any members hire date, evaluation date, or scheduled merit date. In the future, all Local 3800 employees shall receive merit and other wage and salary increases pursuant to the MOU, not withstanding the Concession Side Letter of Agreement dated December 1, 2011. Director [Board Member] seconded. MOTION unanimously carried after a roll call vote. F.A.83. At a regular meeting of the Board on November 15, 2012, the Board approved Nevada County Consolidated Fire District Resolution R12-25 (Resolution 1225), titled Resolution Authorizing A Side Letter of Agreement Between The Nevada County Consolidated Fire Professional Firefighters, IAFF Local 3800 And The Nevada County Consolidated Fire District. Resolution12-25 states, in part, WHEREAS, the BOARD and the EMPLOYEES have agreed to reinstate the current MOU that is in full effect from December 1, 2011 through December 31, 2012, and which reinstates Merit Step Increases outlined in clause 5(b) and reinstates Holiday Pay as outlined in clause 13(d), retroactively to July 1, 2012; F.A.85. The Board approved Resolution 12-25 on a 6-1 vote.

F.A.82.

F.A.84.

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F.A.86.

The NCCFD estimated the cost of the reinstatement of merit step increases and holiday pay to NCCFD firefighters was approximately $20,000 for the period of July 1, 2012 through December, 2012.

Lack of Fiduciary Responsibility - Employee Health Savings Accounts (HSA) F.A.87. At a special board meeting on December 1, 2011, the Board unanimously passed Resolution 11-17. Resolution 11-17 includes four attachments outlining MOUs with four separate employee bargaining units. The MOUs were later extended by the Board through December 31, 2013. The MOUs state, in part, The agreement shall remain in its full force and effect until renegotiated or superseded by successor agreement. Each attachment includes a Section 6, titled Medical Insurance. Sub-section (b) of section 6 reads, in part, The DISTRICT agrees to pay 80% of the offered HSA accounts annual deductible. The 80% shall be deposited into the Employees HSA account at the beginning of each calendar year F.A.92. NCCFD staff recommended to the Board that it make deposits into employees HSA accounts on a quarterly basis. The Board did not follow the recommendation. The employees HSA accounts are the property of the employees named on the contribution form. The NCCFD has no control or authority over any monies that the NCCFD deposits into the HSAs. During the first four months of 2013, three employees retired from the NCCFD. On retirement, the three employees received the balance remaining in their HSAs, totaling approximately $14,000.

F.A.88.

F.A.89. F.A.90.

F.A.91.

F.A.93.

F.A.94.

F.A.95.

Lack of Fiduciary Responsibility - Contracts F.A.96. The Board met in a closed session at a special meeting of the Board on March 20, 2012 to Review Complaint Against a Public Employee.

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F.A.97.

The NCCFD legal counsel, on behalf of the Board Chairman, reported out of the closed session that the Board had decided to obtain an outside investigator which the Chairperson had been authorized to facilitate Section 7.1 of the By-Laws titled Authority to Bind District states No member of the Board, officer, agent, or employee of the District shall have any authority to bind the District by any contract, to pledge its credits, or to execute any instrument on behalf of the Board, except as authorized by ordinance or resolution by the Board.

F.A.98.

F.A.99.

An independent contractor was verbally contracted, by a Board member, to conduct a personnel investigation into the alleged physical altercation between the Fire Chief and a NCCFD employee. The Board did not vote to enter into a contract with the independent contractor for the investigative services. A Board member was asked by the Jury what protected the NCCFD from possibly incurring excessive costs for the contractors services. The Board member replied, we knew it wasnt going to cost that much. The NCCFD subsequently paid the independent contractor for the investigation, preparation, and presentation of a report without a contract in place. A Board member kept the original investigation report in his home for an extended period of time. On February 26, 2008, the NCCFD executed a contract with a private individual, titled, Independent Clerical Contractor Agreement (Agreement). The Agreement was executed by the Fire Chief on behalf of the NCCFD. There is no record of the Board approving the Agreement and a subsequent Amendment to the Agreement. Neither the Agreement nor the subsequent Amendment specifies a minimum or maximum number of hours to be worked by the contractor within a specified time period.

F.A.100.

F.A.101.

F.A.102.

F.A.103.

F.A.104.

F.A.105. F.A.106.

F.A.107.

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Racially Insensitive Material Circulated F.A.108. Section 1.4.13 of the Nevada County Consolidated Fire District Personnel Code (Personnel Code), titled Electronic Communications Systems Policy states, in part, Electronic communications, including the contents of NCCFD owned computers, telephones, and facsimiles are the properties of the District. This policy is meant to set forth guidelines regarding access to and disclosure of information/messages sent or received by NCCFD employees using the system. The Internet, e-mail, phone mail or any other communication or information system of NCCFD is not to be used in any way that may be disruptive, offensive to others, or harmful to morale. Violators of this policy will be subject to disciplinary action, up to and including discharge, for any violation reasonably believed to have been committed. NCCFD treats all computer files, including e-mail sent or received, as District-related information. NCCFD has the capability and reserves the right, with or without notice, to access monitor, review, copy, and/or delete any computer files, including e-mail sent or received If employees make incidental use of the computer system for personal files or email, employees should not expect personal files or e-mail to be protected from review by the District. Accordingly, employees should not use the computer systems to create or transmit any information they wish to keep private .Use of the computer system to engage in any communications that are in violation of this or any NCCFD policy is strictly prohibited. NCCFD prohibits the display or transmission of sexually explicit images, messages, cartons (sic), or any transmission or use of communications that contain profane or offensive language, ethnic slurs, racial epithets, or anything that may be construed as harassment, or disparagement of others based on their race, color, national origin F.A.109. On Monday, November 5, 2012, a candidate for a position on the NCCFD Board, forwarded an e-mail, titled Hooked on Ebonics? containing a video segment to a Board member. In the General Election held on Tuesday, November 6, 2012, the candidate was elected to a four-year term as a member of the Board.

F.A.110.

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F.A.111.

The Board member forwarded the e-mail to the Local 3800 President, stating, Hey, [Local 3800 President], you need to watch this, it is like talking with our administration!!! The administrative staff of the NCCFD has a staff member who is of AfricanAmerican ethnicity. The Board member is on the Personnel Committee, responsible for negotiating employee collective bargaining agreements with representatives of Local 3800, including the Local 3800 President. On Friday, November 9, 2012, the Local 3800 President forwarded the e-mail to a Battalion Chief of the NCCFD, utilizing the NCCFD e-mail system. On Friday, November 9, 2012, the Local 3800 President was an employee of the NCCFD. The Nevada County Professional Firefighters, Local 3800 is an affiliate of the International Association of Fire Fighters (IAFF). The IAFF website, www.iaff.org, states, in part, The International Association of Fire Fighters policy concerning discrimination and harassment is clear and unambiguousthe IAFF is opposed to any kind of discrimination

F.A.112.

F.A.113.

F.A.114.

F.A.115.

F.A.116.

F.A.117.

Closed Sessions of the Board F.A.118. In the General Election of November 6, 2012, two new members were elected to the Board. The Board met in closed session during a regularly scheduled meeting on November 15, 2012. The Vice-Chairman of the Board invited two members of the public, identified as the two top vote-getters in the election, into the closed session. The Nevada County Elections Office had not yet certified the results of the General Election of November 6, 2012 as of the Boards meeting date. NCCFD staff, citing provisions of the Brown Act, cautioned the Board not to invite the two members of the public into the closed session.

F.A.119.

F.A.120.

F.A.121.

F.A.122.

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F.A.123.

The Vice-Chairman publicly disagreed with the NCCFD staff and continued to insist the two members of the public be included in the closed session. After discussion, the Board entered into closed session. The two members of the public did not attend the closed session. The Board met in closed session during a regularly scheduled meeting on December 20, 2012. The Board admitted a member of the public, identified as the spouse of a NCCFD employee, into the closed session. There is no record of the NCCFDs legal counsel being present at either the meeting of November 15, 2012 or December 20, 2012. 46 Ops. Cal. Atty. Gen. 34,35 (1965) of the Opinions of the Attorney General of California states that interested members of the public may not be admitted to a closed session of the governing board while the remainder of the public is excluded.

F.A.124.

F.A.125.

F.A.126.

F.A.127.

F.A.128.

Hiring of Finance Administrative Assistant F.A.129. Section 2.2.5 of the Personnel Code, titled Notification of the Board states, in part, Whenever a vacancy occurs, the Chief shall notify the Board in writing F.A.130. Section 2.2.1 of the Personnel Code, titled Hiring Procedures General states, in part, (a) Hiring procedures shall be competitive and by such character as fairly to test and determine the qualifications, fitness and ability of competitors actually to perform the duties of the class or position for which they seek appointment. F.A.131. Section 2.2.2 of the Personnel Code, titled Policy Regarding Open Versus Promotional Hiring states, (a) The Board shall determine whether a vacant position in the Classified Service shall be filled by open or promotional examination.

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(b) Selection by Promotional Examination may be used when it appears to the Board that there are sufficient qualified employees to provide a competitive selection likely to produce a highly qualified employee to fill the position. (c) Otherwise selection shall be by Open Examination. F.A.132. Section 2.2.6 of the Personnel Code, titled Announcement of Openings states, in part, the Chief shall make public announcements of all job openings at least ten days prior to the closing date for acceptance of applications. The job announcement shall be posted at all staffed District facilities F.A.133. F.A.134. F.A.135. The Board met in a regularly scheduled meeting on December 20, 2012. This meeting was attended by three members of the Jury. On a motion of the Vice-Chairman, and on a roll-call vote, the Board passed Nevada County Consolidated Fire District Resolution 12-28 (R12-28), establishing the Position and Job Description for a Part-Time Classified, Permanent Finance Administrative Assistant. The NCCFD has no record of any notification from the Chief to the Board regarding a vacancy for the job position of Part-Time Classified Permanent Finance Administrative Assistant. R12-28 does not include any language in which an individual is named to fill this position There was no action taken by the Board to fill this position with any individual. A Board member asked if the NCCFD should make a public announcement of the job vacancy. After discussion, the Board took no action on the Board members question. The NCCFD has no record of a public announcement of an open or promotional examination for the position of Part-Time Classified Permanent Finance Administrative Assistant. On January 3, 2013, the NCCFD hired an individual into the permanent position of Part-Time Classified, Permanent Finance Administrative Assistant. The individual hired was an independent contractor with the NCCFD at the time of hiring. The individual hired was not an employee of the NCCFD.

F.A.136.

F.A.137.

F.A.138.

F.A.139.

F.A.140.

F.A.141.

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F.A.142. F.A.143.

The Board met in a regularly scheduled meeting on January 17, 2013. The Board amended the draft Board Minutes of December 20, 2012, to reflect that the Board had offered the position of Part-Time Classified, Permanent Finance Administrative Assistant to a named individual. The Board, by unanimous vote, accepted the amended Board Minutes of December 20, 2012. After this meeting, the NCCFD staff notified the Board Chairman that the Fire Chief had not notified or recommended to the Board of the need to fill the vacancy for the Part-Time Classified, Permanent Finance Administrative Assistant on December 20, 2012. The NCCFD staff notified the Board Chairman that the Board had not taken any action to hire an individual to fill the position of Part-Time Classified, Permanent Finance Administrative Assistant on December 20, 2012. The NCCFD staff voiced concern, just want to make sure we are doing business correctly and when we have a public document, have a good understanding as to why/how it was done. The Board Chairman replied, Not a big deal. Everyone knew the intent of the Board. She is already hired. If we need to formalize the actual hiring of [Name] we can do it as a follow up procedural issue at the next board meeting. There is no agenda item, on subsequent Board Agendas to date, for Board approval of the hiring of an individual into the position of Part-Time Classified, Permanent Finance Administrative Assistant. .

F.A.144.

F.A.145.

F.A.146.

F.A.147.

F.A.148.

Findings
F.I.1. The Board is dysfunctional, lacks credibility, and is wracked by discord, acrimony, back-biting, and perceived mistrust among Board members. The Board, collectively and individually, has fallen woefully short in its roles and responsibilities as a governing board of a public agency. The Board has failed to follow or has knowingly chosen to ignore the various NCCFD rules, ordinances, and regulations, as well as Californias open meeting laws. Members of the Board failed to take advantage of available training on their roles and responsibilities.

F.I.2.

F.I.3.

F.I.4.

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F.I.5.

Some members of the Board knowingly chose to ignore provisions of the Brown Act and NCCFD internal by-laws, rules, regulations, and ordinances in order to affect public opinion during the special tax assessment election. Board meetings are conducted in a manner lacking professionalism, civility, decorum, respect, and common courtesy between Board members. There is a total breakdown of organizational structure and chain-of-command structure within the NCCFD. The Board has undermined the authority of the Fire Chief as the Chief Executive Officer of the NCCFD. The Board has assumed the role of Chief Executive Officer of the NCCFD in violation of internal by-laws, rules, regulations, and ordinances. The NCCFD lacks a comprehensive policy and procedures manual. Many of the codes, by-laws, policies, rules, procedures, resolutions, and ordinances promulgated by the Board and administration of the NCCFD are inadequate, vague, and in conflict. The conflicts in the various codes, by-laws, policies, rules, procedures, resolutions, and ordinances allow the Board to pick and choose the policies and procedures the Board wishes to follow and those it wants to ignore. The Board failed to seek advice from and utilize its contracted legal counsel regarding potentially litigious issues. The Board has shown its lack of fiduciary responsibility by repeatedly entering into financial agreements which lack protection for the NCCFD and fail to meet the requirements of their own rules, regulations, policies, procedures, and ordinances. The Board has shown its lack of fiduciary responsibility by entering into employee collective bargaining agreements which led to excessive and unexpected expenditures by the NCCFD. The lack of executive leadership of the NCCFD and the micromanagement of the NCCFD by the Board have created and fostered an unhealthy working environment for administrative staff, leading to hostility and mistrust among the administrative staff, the Board, and NCCFD employees. The atmosphere of hostility and mistrust has caused the physical separation of administrative staff, leading to additional time and effort being expended to provide administrative services.
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F.I.6.

F.I.7.

F.I.8

F.I.9.

F.I.10. F.I.11.

F.I.12.

F.I.13.

F.I.14.

F.I.15.

F.I.16.

F.I.17.

2012-2013 Nevada County Grand Jury

F.I.18.

Some members of the Board have exhibited a lack of civility, decorum, and respect toward the employees of the NCCFD. Board members should be held to a higher standard of behavior due to their election by citizens of the NCCFD to positions of public trust. The Board and NCCFD administration have failed to investigate and adjudicate allegations of employee violations of the NCCFD rules, regulations, policy, procedures, and ordinances. The closeness of the personal relationship between some Board members and the administration of Local 3800 places the Boards credibility in question during collective bargaining with Local 3800. Not only is the circulation of racially offensive material by the Local 3800 President in violation of the human relation tenets promulgated by the International Association of Fire Fighters, it is also in direct conflict with the NCCFD personnel code.

F.I.19.

F.I.20.

F.I.21.

F.I.22.

Recommendations
R.1. All members of the Board should actively seek out and attend training regarding the roles and responsibilities of board members in special districts. The Board should work with the Fire Chief to develop a comprehensive policy and procedures manual consistent with existing federal, state, and local laws and regulations. The Board should ensure the policies and procedures manual includes thorough review of all contracts and agreements to protect the NCCFD from unexpected, unnecessary, and excessive expenditures. The Board should actively seek the advice and expertise of legal counsel in all matters that may lead to potentially litigious issues. The Board should ensure the Fire Chief has clear authority to implement the newly developed policy and procedures manual and to manage the day-to-day operation of the NCCFD. The Board, collectively and individually, should not subvert the NCCFD organizational structure and chain of command and should not interject themselves into the management of the day-to-day operations of the NCCFD.

R.2.

R.3.

R.4.

R.5.

R.6.

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R.7.

The Board should develop and implement policy to facilitate open and ongoing communication with NCCFD personnel. The Board members should conduct themselves in a manner consistent with the publics expectations of persons elected to positions of public trust. The Board should maintain a professional relationship with Local 3800 to ensure there is no perception of impropriety or undue influence on decision making by the Board. The Board, management, and staff should forge an active partnership in the rebuilding of the NCCFDs public image and should actively communicate with their constituents to restore and maintain the publics trust.

R.8.

R.9.

R.10.

Responses
Nevada County Consolidated Fire District Board of Directors: Date: September 13, 2013

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