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RPVCCA_CC_SR_2013_09_17_03_LA_County_Civil_Grand_Jury_Report FinalCITY OF MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED BY: HONORABLE MAYOR & MEMBERS OF THE CITY COUNCIL ~ DENNIS McLEAN, DIRECTOR OF FINANCE & INFORMATION TECHNOLOGY SEPTEMBER 17, 2013 PROPOSED RESPONSES TO THE FISCAL HEAL TH, GOVERNANCE, FINANCIAL MANAGEMENT AND COMPENSATION SECTION OF THE 2012-13 CIVIL GRAND JURY REPORT OF THE CITIES OF LOS ANGELES CAROLYN LEHR, CITY MANAGER~ Staff Coordinator: Ryan Mill~~or Administrative Analyst, Finance & Information Technolog~ RECOMMENDATION 1) Approve the proposed responses to the recommendations made by the Civil Grand Jury; and 2) Direct staff to forward the approved responses to the Los Angeles County Civil Grand Jury by September 26, 2013. BACKGROUND In June 2013, the Los Angeles County Civil Grand Jury ("Grand Jury") released its 2012-13 Civil Grand Jury Report, including twelve Investigative Reports and four Standing Committee Reports. The Investigative Reports included the Fiscal Health, Governance, Financial Management and Compensation for the Cities of Los Angeles County (the "Report"). The Report was the result of gathering information from all 88 cities within the County to assess the fiscal health of the cities. The Grand Jury also sought to determine if the cities were following "best practices" for governance and financial management, as established by the Government Financial Officers Association (GFOA), and to review public information for employee compensation and gauge accountability and transparency. The final Report was sent to all cities in Los Angeles County and includes many general 3-1 recommendations for all cities. A response to all recommendations from the Grand Jury is required by California Penal Code 933(c) and 933.05 within 90 days following the release of the report to the public. Responses will be addressed to the Presiding Judge of the Los Angeles County Superior Court. Responses are due to the Presiding Judge by September 26, 2013. GRAND JURY REPORT The methodology used by the Grand Jury to gather information for the Report included a review of each city’s Comprehensive Annual Finance Report (CAFR) or Financial Statements, developing financial ratios and criteria to rate and rank the financial health of the cities, identifying best practices criteria related to governance and financial management, administering questionnaires related to city governance, and reviewing the reasonableness of salaries and compensation obtained from the State Controller’s Office. The Report was divided between three categories of analysis: Fiscal Health, Governance Practices, and Fiscal Management Practices. The Fiscal Health portion of the Report dealt strictly with financial results, the percentage increase or decrease from the prior year, and the city’s rank in context with the other 88 cities in Los Angeles County. The Governance Practices and Fiscal Management Practices sections of the Report focused on municipal policies the Grand Jury found prudent for managing and protecting the financial resources and assets of a city. Fiscal Health The Fiscal Health section of the Report (pages 96 through 130) included the ranking (by category) of participating cities. The following table presents the ranking of the City of Rancho Palos Verdes with the 88 cities that participated: Category RPV Rank Net Revenue Percent 1 Ratio of Assets to Liabilities 4 Change in Net Assets 29 General Fund Net Revenue Percent 1 Change in General Fund Balance 18 Unassigned General Fund Balance 14 3-2 Governance Practices & Fiscal Management Practices In response to the questionnaires sent out to each City by the Grand Jury, the Report highlights 55 best practices within the following categories.  Governance/Audit Committee  Audit Procurement  Accounting Manual  Fraud/Ethics  Internal Controls  General Fund  Public Reporting The Grand Jury established general recommendations for all cities and other recommendations for certain cities. There were eight total recommendations for the City of Rancho Palos Verdes (5 general and 3 specific), which are outlined below. Pursuant to California Penal Code 933.05, the response to each Grand Jury recommendation shall indicate whether the respondent agrees with the finding, and whether the finding has been implemented or the plan of action for implementation. RECOMMENDATIONS & PROPOSED RESPONSES FOR THE CITY OF RANCHO PALOS VERDES Fiscal Health – Four Recommendations Addressed to all Cities 1. Cities should adopt financial planning, revenue and expenditure policies to guide city officials to develop sustainable, balanced budgets. The City of Rancho Palos Verdes agrees with the Grand Jury Report. The City Council has adopted a formal policy that requires analysis, update and review of a Five-Year Financial Model and a Five-Year Capital Improvement Program as part of the annual budget process. The Grand Jury’s recommendation has not yet been memorialized, but City Staff will develop a proposed City Council Policy to adopt annual budgets where recurring expenditures do not exceed recurring revenues, which has been the City’s practice. The proposed policy would be presented to the City Council by December 31, 2013. 2. Cities should develop a balanced budget and commit to operate within the budget constraints. The City of Rancho Palos Verdes agrees with the Grand Jury Report. The proposed policy described in the first recommendation above would also address this recommendation. Although a formal policy has not previously been adopted, the City has a long history of adopting annual operating budgets that balance expenditures against revenues. 3. Cities should commit to not using one-time revenues to fund recurring or ongoing expenditures. 3-3 The City of Rancho Palos Verdes agrees with the Grand Jury Report. The proposed policy described in the first recommendation above would include a provision that on-going program expenditures shall not be funded with one-time revenue sources. 4. Cities should adopt a method and practice of saving into a reserve or “rainy day” fund to supplement operating revenues in years of short fall. The City of Rancho Palos Verdes agrees with the Grand Jury Report. The City Council has previously adopted a Reserve Policy that provides for a “rainy day” reserve of the General Fund balance, as well as establishing prudent reserves in other funds, including, but not limited to, the capital improvement projects, street maintenance and equipment replacement funds. Staff reports the status of each Reserve balance at least twice each fiscal year to the City Council and the public. Financial Management Recommendations Addressed to 58 cities. 1. Cities should formally establish an audit committee making it directly responsible for the work of the independent auditor. The City of Rancho Palos Verdes agrees with the Grand Jury Report regarding the importance of an audit committee. Beginning in 2008, the Mayor of the City has appointed two members (of the 5-member City Council) to serve on the ad-hoc Council subcommittee known as the “Audit Committee” every year. The independent auditor reports directly to the Audit Committee, including a planning meeting prior to the beginning the audit field work, discussions during the engagement at the request of either the audit committee or the auditor, and a discussion upon completion of the audit field work, usually prior to publication of the audit report. Mayor Susan Brooks and Mayor Pro-Tem Duhovic were appointed by the Mayor to serve on the Audit Committee during 2013. Staff will prepare a thorough analysis regarding how to best formalize the City’s practice of annually appointing the Council Audit Sub-Committee prior to December 31, 2013. Addressed to 25 cities. 2. Cities that allow the auditor to provide non-audit services should ensure appropriate review and approval of those services. The City of Rancho Palos Verdes agrees with the Grand Jury Report and has implemented the recommendation. The City’s Director and Deputy Director of Finance and Information Technology are both Certified Public Accountants and review all non-audit services provided by the City’s auditor prior to completion of the services. The review and approval process is documented in the form of engagement letters and/or agreements. Addressed to 35 cities. 3-4 3. Cities should review and update policies and procedures for reporting fraud, abuse and questionable practices including a practical mechanism, such as a fraud hotline, to permit the confidential, anonymous reporting of concerns. The City of Rancho Palos Verdes agrees with the Grand Jury Report. City staff will develop a proposed City Council Policy to establish an independent fraud and abuse hotline administrated by a qualified independent third-party that provides such services. The hotline provider would administer the reporting and investigation of reports of fraud, accounting irregularities, employee and public mistreatment, workplace violence and employee theft and provide the reports to the City Council. City Staff expects that a service can be implemented by June 30, 2014, and will bring a proposal forward to City Council by December 31, 2013. Addressed to all cities. 4. Cities should undertake a full-scale competitive process every 5 years for the selection of an independent external auditor. The City of Rancho Palos Verdes agrees with the Grand Jury Report. The City has implemented the recommendation by its ongoing practice of awarding three-year contracts for audit services, with a contract clause to extend the contract for two additional one-year terms with mutual written consent. At the end of the contract term, the City issues a Request for Proposal to qualified independent certified public accounting firms. Proposals are evaluated and a recommendation is presented to the City Council during a public meeting. DISCUSSION Proposed Independent Fraud and Abuse Hotline Mayor Pro-Tem Duhovic recommended adding a future agenda item to consider the establishment of a Fraud, Waste and Abuse Hotline about a year ago. Staff believes that the proposed independent fraud and abuse hotline, administered by a qualified independent third-party, would respond to Mayor Pro Tem Duhovic’s recommendation and would conform with recommendations of Report, as well as the regulations and recommendation issued by the GFOA and the AICPA as applicable to the public sector. The investigation of any accounting irregularities or fraud would be independently performed and reported to the City Council Audit Committee. With City Council direction, Staff will return to present the City Council with a draft policy to establish a Fraud, Waste and Abuse Hotline and a recommendation to select an independent third party to perform hotline services by December 31, 2013. 3-5 CONCLUSION If the City Council approves the proposed responses described above (or any revisions made by the City Council), the responses outlined above will be forwarded to the Grand Jury. In addition, Staff will bring forward a proposed budget policy, a recommendation for an outsourced fraud hotline, and how to best document the City’s Audit Committee by December 31, 2013. Attachments: A – 2012-2013 Los Angeles County Grand Jury Report 3-6 BLANK PAGE 3-7 James Bradford Jacqueline Brown Jeff Clements David Dahl Joseph Des Barres Charles Dolcey Marie Louise Gutierrez Albert Handschumacher Kenneth Howard Richard Huber Caroline Kelly Carol Pentz Frederick Piltz Barry Rubens Thomas Scheerer Jerome Strofs Joan Turner Elena Velarde Mel Widawski Franklin Wurtzel UngYolYu Gilbert Zeal John Zehrung County of Los Angeles 2012-2013 Civil Grand Jury Final Report Attachment-A 3-8 County of Los Angeles CIVIL GRAND JURY CLARA SHORTRIDGE FOLTZ CRIMINAL JUSTICE CENTER 210 WEST TEMPLE STREET• ELEVENTH FLOOR• ROOM 11-506 •LOS ANGELES, CALIFORNIA 90012 TELEPHONE (213) 893-1047 •FAX (213) 229-2595 http://www.grandjury.eo.la.ea.us/ June 28, 2013 The Honorable Charlaine Olmedo, Supervising Judge Los Angeles Superior Court, Department 100 Clara Shortridge Foltz Criminal Justice Center 210 West Temple Street Los Angeles, CA 90012 Dear Jµdge Olmedo: In compliance with California Penal Code Section 933(a), the 2012-2013 Los Angeles County Civil Grand Jury hereby submits its Final Report to your attention. This Final Report represents the hard work of twenty-three Civil Grand Jury members who came together to serve one year as the watchdog for the citizens of Los Angeles County. Three of the Grand Jury members had served previously on Los Angeles County Grand Juries while the other twenty members came together in July 2012 as novices in the Grand Jury process. All Grand Jury members came to serve because of their interests and curiosity about county government and because of their strong commitment to safeguarding the interests of the citizens and making the lives of the people of Los Angeles County better. The Grand Jury identified numerous potential investigations and vigorously debated which to pursue as full investigations. As the year progressed, additional topics for investigation presented themselves. The Grand Jury issued two reports early during the year. The first, Glendale Water And Power And Propositions 218 and 26 was issued in late March, 2013 and the second Dual Track And Training The 2012 Citizen's Commission on Jail Violence Report was issued in April, 2013. Both of these reports are included in this Final Report. The Grand Jury heard from 24 invited speakers and toured 10 county facilities. Individual investigative committees visited many more facilities and spoke with dozens of county officials. The Jury completed detailed inspections of the condition and management of 74 separate adult detention facilities and 21juvenile detention facilities within Los Angeles County. The Civil Grand Jury received and considered 72 complaints submitted by citizens of Los Angeles County. I was fortunate to be part of a truly inspired team of 22 other citizens who assisted me in my role as foreperson of the Civil Grand Jury. Several Jurors experienced personal family challenges during the year and the members of the jury were there to support each other demonstrating their compassion as a family united in a common effort. To all my fellow Grand Jurors, thank you for your patience, flexibility, and confidence in me as I carried out the duties of foreperson. I want to also express the appreciation of the Civil Grand Jurors for the help and support of the following court staff. Jennifer Lehman and Jonathan McCaverty, Principal Deputy County Counsel, who made sure that the Civil Grand Jury operated within bounds of the law; and Civil Grand Jury staff members Mark Hoffman, Cora Artizada, and Natalie Rascon who cared for us, made sure we had the supplies we needed for the year and were patient with our paperwork; and 3-9 Director, Juror Services Division, Gloria Gomez who retired during the 2012-2013 Grand Jury term; and The Honorable Patricia Schnegg, Supervising Judge for the 2012-2013 Civil Grand Jury during the first half of the jury term. Finally, thank you to the Honorable Charlaine Olmedo, Supervising Judge, who oversaw the efforts of the 2012-2013 Los Angeles County Civil Grand Jury through completion of this report. Frederick M. Piltz, Foreperson 2012-2013 Los Angeles County Civil Grand Jury 3-10 Seated L -R: Joan Turner, Charles Dolcey, Richard Huber, Frederick Piltz (Foreperson), Elena Velarde (Secretary), Jacqueline Brown, Ung Vol Yu Standing L -R: Jerome Strofs, Carol Pentz, Albert Handschumacher, Caroline Kelly, Jeffrey Clements, Joseph Des Barres, Kenneth Howard (Sergeant-at-Arms), Barry Rubens, James Bradford, Marie Louise Gutierrez, John Zeh rung, Franklin Wurtzel (Foreperson Pro -Tern), Gilbert Zeal, David Dahl, Thomas Scheerer, Mel Widawski 3-11 TABLE OF CONTENTS Foreperson Letter 2012-2013 Los Angeles County Civil Grand Jury Group Photograph How to Respond to Recommendations in this Report ....................................................... iii Investigative Reports 1. Dual Track and Training .................................................................................... 1 2. LAPD'S "Skid Row" Station ........................................................................... 13 3. Probation Department Employee Misconduct.. ............................................... 19 4. Foster Care Hotline Investigation .................................................................... 23 5. Foster Care Quality Assurance: Training Foster Parents ................................. 35 6. Foster Care Transitional Aged Youth Vocational Training ............................ .43 7. Board of Supervisors Request and Complaint Procedures .............................. 51 8. Los Angeles Fire Department Response Time Lag ......................................... 63 9. Parks and Recreation ........................................................................................ 69 10. Glendale Water and Power and Propositions 218 and 26 ................................ 73 11. Chevron -El Segundo ..................................................................................... 77 12. Cities of Los Angeles County .......................................................................... 85 Standing Committee Reports 13. Citizen Complaints Committee ...................................................................... 161 14. Continuity Committee .................................................................................... 165 15. Detention Committee: Adult Facilities ......................................................... .185 16. Detention Committee: Juvenile Facilities ...................................................... 213 Civil Grand Jury Internal Committees Audit .................................................................................................................... 231 Edit ....................................................................................................................... 231 Information Technology ...................................................................................... 232 Publication ........................................................................................................... 232 Social Committee ................................................................................................. 233 Speakers and Events ............................................................................................ 233 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-12 ii 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-13 HOW TO RESPOND TO RECOMMENDATIONS IN THIS REPORT Pursuant to California Penal Code §933.05, the person or entity responding to each grand jury finding shall indicate one of the following: 1. The respondent agrees with the finding. 2. The respondent disagrees wholly with or partially with the finding, in which case the response shall specify the portion of the finding that is disputed and shall include an explanation of the reasons therefore. The persqn or entity responding to each grand jury recommendation shall report one of the following actions: 1. The recommendation has been implemented, with a summary regarding the implementation action. 2. The recommendation has not yet been implemented, but will be implemented in the future, with a timeframe for implementation. 3. The recommendation requires further analysis, with an explanation and the scope and parameters of an analysis or study, and a timeframe for the matter to be prepared for discussion by the officer or head of the agency or department being investigated or reviewed, including the governing body of the public agency where applicable. This timeframe shall not exceed six months from the date of publication of the grand jury report. 4. The recommendation will not be implemented because it is not warranted or is not reasonable, with an explanation therefore. SEND ALL RESPONSES TO: Presiding Judge Los Angeles County Superior Court Clara Shortridge Foltz Criminal Justice Center 210 West Temple Street, Eleventh Floor, Room 11-506 Los Angeles, CA 90012 All responses for the 2012-2013 CGJ Final Report's recommendations must be submitted to the above address on or before the end of business on October 1, 2013 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT iii 3-14 DUAL TRACK AND TRAINING The 2012 Citizen's Commission on Jail Violence Report COMMITTEE MEMBERS Caroline Kelly -Chair David Dahl Joseph Des Barres Frederick M. Piltz Elena Velarde 3-15 1. Dual Track and Training The 2012 Citizen's Commission on Jail Violence Report EXECUTIVE SUMMARY The Citizen's Commission on Jail Violence Report (Commission's Report) examines the issue of unreasonable force in the county jails making over sixty recommendations it believes will change the Los Angeles Sheriffs Department for the better. The Sheriff agreed to all of the rec- ommendations and has made significant strides in implementing them. This Civil Grand Jury (Grand Jury) report discusses some of the recommendations relating to Chapter 5 (culture) and Chapter 6 (personnel). Specifically, we focus on the "Dual Track" system which was imple- mented February 1, 2013 dividing the Sheriffs Department sworn officers into a Patrol track and a Custody track. 1 Dual Track is about creating a specialized work force. Therefore, it becomes crucial to· look at training and the cultural expectations that come with this system. This report also looks at Dual Track and training as it relates to inmates with mental health is- sues. The challenges posed by this group are vast. Special attention needs to be focused on men- tal health by every agency throughout the County. The Grand Jury applauds the thoroughness of the Commission Report. Because of the Grand Jury's unique role in visiting so many of the jail facilities in Los Angeles, we feel our input can help the Sheriffs Department, Implementation Monitor and the County as they continue imple:menting and fine-tt.ming these recommendations. Our findings include the following: 1. Individual officer's attitudes in the Department and internal Department cultural perception are the greatest factors in successfully implementing Dual Track and decreasing violence within the jails. Custody is currently viewed by many in the Department as a lesser position than Patrol. 2. Quality leadership, regardless of structure, is the biggest factor in reducing violence. Training is therefore essential to groom leaders. This training needs to start early and build on itself over years so deputies will have internalized the training and be qualified for promotions. Given lim- ited resources, it may be best to focus on the leadership first before training rank and file. The potential for specialized training is a great benefit of Dual Track and without this component it is unlikely the structural change alone will affect violence in the jails. 3. There is a difference in operating Men's Central Jail (MCJ) and the other large jail facilities like the Pitchess Ranch Complex or Century Regional Detention Facility (CRDF; the Women's facility). There is an even greater difference in operating a Type I jail facility (initial intake; in- mate held under 96 hours). The Commission's Report is based primarily on findings from MCJ. It may call for changes that are not necessarily appropriate department-wide. If MCJ is the prob- lem, it is better to use resources to fix that versus spreading resources throughout the department. 1 Implementation Monitor Report, February 12, 2013 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-16 DUAL TRACK AND TRAINING 4. The proliferation of inmates with severe mental issues has turned some of the floors of the Twin Towers Correctional Facility into a de facto mental hospital. This may require a different model of staffing-possibly with more orderlies and civilians being used. Rotation of deputies is not encouraged on these floors. Given the tremendous resources it takes to house these in- mates in jail, the Board of Supervisors needs to focus as soon as possible on alternative hous- ing-either in mental hospitals or another type of housing. RECOMMENDATIONS 1 The Sheriffs Department Leadership must counter the negative bias of Patrol officers to- wards those officers assigned to custody. This will also be critical if large numbers of women stay in custody positions. 2 The Sh'eriff s Department in conjunction with the Board of Supervisors must come to a decision about MCJ. Many of MCJ's issues are unique to this facility. If problems at MCJ have to do with the architectural shortcomings, then funding needs to be provided to either rebuild or renovate the facility in accordance with current best practices. Different solutions may be needed for other large scale facilities like Pitchess Ranch or CRDF, as well as Court House Fa- cilities. 3 The Sheriffs Department should focus on keeping time spent in custody assignments to ide- ally no more than two years (for those wishing to go on Patrol) while increasing the learning op- portunities while on custody assignment. 4 The Sheriffs Department must increase training for Custody positions (post Academy). But assuming limited resources, leadership should receive increased training before new deputies. The Department must look for ways to break down training into smaller units and possibly en- courage through incentives or promotion consideration, having deputies seek out education on their own time. The Department needs to resolve any labor issues that may hinder this goal. 5 The Sheriffs Department needs to mentor and model behavior more effectively, Custody as- signment is an opportunity to learn more about gangs, criminal techniques, and criminal net- works outside of the jails and how to cultivate potential informants. 6 The Sheriffs Department in conjunction with the Department of Health needs to signifi- cantly increase mental health training Department-wide. The Department needs to work with other entities (Department of Mental Health, the county's e-education system, non-profits and private enterprise) to come up with ways to disseminate this training without causing positions to be backfilled while officers attend the training. Specifically, more needs to be taught relating to Post Traumatic Stress Disorder (PTSD), trauma and the behaviors that may result as well as de- escalation techniques. 7 The Sheriffs Department must provide deputies who work directly with the mentally ill ex- tensive, specialized training. This training should emphasize recognizing, reacting to, de- escalating and preventing aggressive and hostile behavior that can occur in these settings. 2 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-17 DUAL TRACK AND TRAINING 8 The Sheriff's Department needs to use more Custody Assistants and investigate possibly con- tracting with private security forces for Type I facilities. It should also investigate using order- lies and specialized health care workers when dealing with mentally ill inmates. METHODOLOGY The Grand Jury reviewed the Commission's Report and the Sheriffs Dual Track Career Path Plan (Sheriffs Plan), as issued and approved January 2013. We also conducted on-line research into approaches of other jurisdictions related to training. Statistical information is based on Janu- ary 2013 Custody Division accounting reports prepared by the Sheriffs Department. The Grand Jury attended multiple hearings of the Board of Supervisors and heard the reports of the Com- mission Report monitor. We also interviewed key upper level personnel in the Sheriffs De- partment with direct responsibility for the Dual Track system, training and mental health. But the biggest factor in reaching these conclusions has been the Grand Jury's visits to jail facili- ties in LA County and interviews with dozens of members of the Sheriffs Department. We had frank conversations with officers fresh out of the Academy as well as those with over 25 years of experience--both in Custody and in Patrol. Penal Code Section 919(b) requires the Grand Jury to "inquire into the condition and management of the public prisons within the county." Grand Jury members have visited over 70 jail facilities including those run by different police depart- ments as well as those run by the Sheriffs Department. The Grand Jury also visited state mental health facilities to compare the staffing and housing of inmates with mental health issues. FINDINGS I. Dual Track Defined 2 As of February l, 2013, the Sheriffs Department implemented Commission Report recommen- dation 6.6, the Dual Track. 3 Dual Track separates the department into a Custody track and a Pa- trol track and allows for deputies to have a career in Custody--which includes promotion-- without having to go on Patrol. The Commission is advocating for a long term solution in which Deputy Sheriffs are specifically recruited, hired and trained within the Academy for Custody as- signments. (Commission's Report p. 138) This differs from both the current arrangement and the Sheriffs Plan. The Sheriffs Plan assumes minor changes in the Academy experience. Custody- specific training occurs following Academy graduation. Further, for the foreseeable future, new deputies will continue to be placed in Custody straight out of the Academy. Deputies waiting to go on Patrol will remain in their Custody positions for a period of time until positions within Pa- trol open. A. The current staffing situation in Custody 2 All statistical data in this section comes from the January 2013 Sheriffs Department Custody division accounting reports. Information on the structure and roles of officers within the department are·from interviews with key Sher- iffs Department personnel. 3 Implementation Monitor Report, February 12, 2013 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3 3-18 DUAL TRACK AND TRAINING As of January 2013, 2949 sworn officers were assigned to Custody out of a total force of 9197 officers. This means that almost one third of all positions within the force are in Custody. There are 1302 Custody Assistants working in the jails. The Sheriffs Department has conducted sev- eral surveys in the last few months to assess this issue and in one survey, 42 % said they would like to remain in Custody.4 Even if this number rises to 50%, that still means that approximately 1500 positions need to open up in the Patrol division. This also means that 1500 Custody posi- tions need to be filled, either by new recruits or deputies already on Patrol. The County cannot nor should it increase Patrol positions within the force this much in a short time span. Also, given the ratio of positions, the assumption also has to be that the number of new Academy re- cruits has to consist of at least two-thirds who are ultimately interested in Patrol positions. Before a deputy can leave a Custody position to go to the field, several things need to happen. First, a Patrol position has to open at one of the three stations requested by the deputy. Second, no other ~eputy higher on the Patrol list or already in the field takes the position. And third, a new deputy either fresh from the Academy or from the field needs to fill the Custody position. Typically, most of the positions have been filled by new graduates. So the reality is that Custody positions will need to be filled and will need to stay filled by deputies coming out of the Acad- emy for a period of time until attrition and staffing needs on Patrol can increase. B. Dual Track is Beneficial for the Department There are still benefits to creating a. Custody track. Without question, at least short term, many deputies who are willing to stay in Custody will get off the waiting lists and those seeking to go on Patrol will move up. This will hopefully significantly shorten the wait time to go to Patrol from the current wait of anywhere from five years or more. Based on conversations with dozens of sworn officers at all levels, most felt that a period of up to two years in Custody was actually a benefit. Most felt their Patrol skills remained intact for this period. Further, observant deputies learned a great deal about gangs, criminal methodology and gained confidence in dealing with many of the kinds of criminals they would encounter on the job. Anecdotal evidence from ser- geants and captains included stories of encountering many of the same people on the streets that they had met in the jails who then were more likely to be informants and to give the officer re- spect. All this assumes of course the following: The deputy conducted him/herself in a way to earn the respect of the inmate within the facility. Either through their own initiative or through the men- torship of supervising personnel, deputies were actively encouraged to observe and learn and view their time as a learning experience. Having appropriate mentoring and supervision, and having a defined expectation of the length of time one will spend in Custody will go a long way to eliminating the bad attitudes of those officers who want to be on Patrol. Framing Custody as a positive experience and way to gather knowledge is essential. It is fine to think of time in Cus- tody as paying your dues; it should not be viewed as a waste of time until your real job can be- gin. II. Internal Perception Affects Dual Track's Effectiveness 4 2013 Sheriffs Department Dual Track Career Path Plan (Sheriffs Plan), p3 4 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-19 DUAL TRACK AND TRAINING One of the common threads running throughout every conversation with members of the Sher- iffs Department--from the newest deputy up to the Commander level--is the role of internal per- ception and pride. How one deputy perceives another or whether one officer respects another is critically important to the Department as an institution. The first step in creating a sense of equal- ity and shared experience is the Academy experience. The second step for several years now has been the experience of Custody and the third step has been the desire, and ultimately, the experi- ence of going out on Patrol. Dual Track takes away this third step. For many officers, in particular, many of the current su- pervising officers, this is a threat to the equality in the Department. The Sheriffs Department is stereotypically considered a macho 5 culture as expressed by both male and female deputies. In our discussions with Sheriffs personnel, we heard variations of the following statements from all ranks: Patrol is the ultimate goal of every deputy. Patrol is harder but more rewarding. Those who choose to stay in Custody are not as hard working, afraid to face the challenges of Patrol, forced to consider Patrol because of personal hardship or family pressures and other excuses. One of the potential benefits of Dual Track that could feed into this negative perception is the fact that Custody, with its set schedule shifts, will be particularly attractive for females with families. 6 While it is positive that women will be able to stay longer with the Department, given the macho mindset stated above, Custody can be viewed as a negative position if it is filled with too many females. This is a sad reality and one the Department cannot ignore. This is not an attitude that will disappear overnight, especially since our observation has been that those in leadership ranks were more likely to have this attitude. The attitude will go away more quickly amongst the rank and file ifthe leadership from the top down really values Custody and conveys this through action and words on a regular basis. As more leaders are promoted from within Custody, pride in position will increase too. Ill Assignment and Training of Leadership is Key to Dual Track Success A. Assignments of Leadership to Custody The reason for the Commission's Report was not efficiency or morale, but rather ways of de- creasing violence. When asked, "How do you think Dual Track will impact violence levels in the jails?" almost none of the dozens of officers we spoke to saw a clear connection. Almost consistently, when asked to state the biggest factor, the answer was leadership. In the words of one high ranking officer, issues related to unnecessary violence happened because, "supervisors lacked the courage to manage personnel." Over and over, we heard from sergeants and captains currently in Custody assignments state that sergeants were more focused on going back to Patrol than really leading in the custody assignment. The fact that sergeants only had to remain in the position for one year did not help. Many of the larger jails are complex environments with mul- 5 The Grand Jury uses the word macho as shorthand for qualities expressed as being part of the self-image of depu- ties such as toughness, assertiveness, bravery, strength, dominance and being in control. 6 Sheriff's Plan, p9 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 5 3-20 DUAL TRACK AND TRAINING tiple shifts of employees. There is a large learning curve. By the time the sergeants learned the position and the characteristics of their staff, they were on to the new post. We applaud the Sheriffs Department for changing this situation in two ways: First, promotion will now occur directly through the Custody track and a pathway has been put into place for this. One area of concern here is that these sergeants still need to view their role as being mentors and preparing deputies for Patrol as well. Sergeants have to have the proper train- ing and support, not only to train these deputies but also to have their respect. The Department should help these sergeants, perhaps by allowing rotations through Patrol positions or by requir- ing a certain number of ride-alongs a year for Custody leadership who have not been on Patrol. Second, sergeants who are now assigned to Custody from Patrol or other divisions will be re- quired to stay for five years. 7 This requirement will require careful watch and attention given the attitude issues mentioned above. Many of the sergeants who came in from outside of Custody did not view it as a first choice and were eager to leave after one year. Will they now come to custody with a new attitude given they have to stay for five years? Will they be disgruntled? Investing in training and development of these officers will help morale and allow them to see themselves as valued specialists. B. Training In the area of training for Custody Supervisors, we believe the Sheriffs Department has not gone far enough. The focus of pending improvement is on deputies. This is commendable but more needs to occur. 1. Training of all Custody Personnel As stated before, the Sheriff proposes no significant changes to Academy training. 8 This makes sense for many reasons. One, the Academy trains officers for other law enforcement agencies with no Custody responsibility. Further, most of the positions in the Sheriffs Department are non-custody related. The Sheriffs Department views the role of the Academy as providing more of a foundation with the probation period being one where the specifics of the job are learned while on the job. Finally, creating a separate Academy will degrade the perception of Custody deputies and Patrol deputies that they are one force. The Grand Jury supports the position of the Sheriffs Department and does not believe a separate Academy experience needs to happen. That said, more should be and will be done under the Sheriffs Plan. The Department will in- crease the amount of specific training post Academy from two to four weeks. Those additional two weeks will consist of a "Jail Operation Continuum." Further, the amount of time spent as- sessing and evaluating deputies will increase from 12 to 16 weeks. 2. Training of Leadership 7 Sheriff's Plan, p6 8 Sheriffs Plan p3 6 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-21 DUAL TRACK AND TRAINING Those at the sergeant level and above will continue to receive 24 hours of training over three days. This training has a largely administrative focus specific to the particular facility. The only additional training being proposed is eight hours of training that would revisit the topics proposed in the "Jail Operations Continuum". These eight hours would most likely be given in two hour chunks of intense format training. The timing is meant to avoid backfilling a position. 9 This may not be enough or the right emphasis. First of all, as conveyed to the Grand Jury and also found running through the Commission's Report were issues of failure of leadership-- specifically as it relates to mentoring, managing, conveying expectation and communication. Running a jail, especially some of the larger facilities, is a complex operation that involves sev- eral skill sets and contingencies. A career as a deputy may provide the necessary education in jail operations but not necessarily in management. Too much seems to rest on the individual's intuition when a little training coupled with that common sense could go a long way. Much of the focus on leadership training has been on forms and required paperwork. If a ser- geant is not provided any additional training in areas such as staff assessment, evaluation, men- toring or effective leadership, what will an additional four weeks of assessment time of deputies add? Training should be viewed broadly as not just conveying information but conveying expec- tation. Especially now that sergeants will have to command the respect and train both deputies staying in Custody and those going on Patrol, it is more imperative than ever that they have the tools to stress and continuously emphasize the Nobility Policing and Constitutional Jailing that are stated values of the Department. The idea of providing training in two hour portions is a smart one that will allow a position not to have to be backfilled but the Department, for both cost and for other practical reasons needs to be focused on other methods of teaching these key skills. It may, for example need to award merit points that are necessary for promotion to those deputies and those in leadership who seek out educational opportunities on their own time. The Department is starting and needs to devote more efforts to utilizing on line resources so that individual topics can be learned over a few days. C. Custody Division Training Bureau The Sheriff's Department is proposing a whole new infrastructure called the Custody Division Training Bureau to focus specifically on training that currently assumes staffing with close to 80- 100 officers of all ranks.10 We appreciate the greater focus on training. Particularly, we applaud the fact that the eight large facilities will have staff exclusively focused on training. The remain- der of the staff being proposed will take a more centralized approach with some focused specifi- cally on violence related issues and others will focus on the already mandated STC (Standards and Training for Correctional Officers) training which is required annually by the state. 9 Information provided by interviews with Sheriffs Department personnel 10 Interview with key Sheriff Department personnel, report oflmplementation Monitor to Board of Supervisors, Feb- ruary 12, 2013 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 7 3-22 DUAL TRACK AND TRAINING Coming up with the proposed structure is just the first step. Funding from the Board of Supervi- sors will make or break this step. Assuming funding is available, creating curriculum that is ef- fective is an even bigger challenge. Curriculum that allows deputies to learn at their own pace sometimes is both more beneficial for learning and potentially more cost effective. Making training meaningful for the responsibilities at hand is also critical, which further requires a more individualized approach. For example, STC training requires that certain topics be covered yearly and by the time those mandatory topics like first aid and CPR training are covered, 70% of the time may already be utilized. There should be a way to pre-test people and let them "test out" of topics they already know. These individuals should be able to move on to other topics. It may be more cost effective to offer incentive payment for classes done through the County's e- learning system. Finally ifthe Department truly values education for its staff, then it should cre- ate a culture where learning on one's own time is considered necessary for promotion. This may entail dealing with potential labor issues. The Department should focus then on making material accessiblt? and high quality. IV. Types of Facilities A. Men's Central Jail (MCJ) The Commission's Report focuses primarily on issues that arose at MCJ and extrapolated its findings to the Department as a whole. The Grand Jury visited many of the other facilities and is not sure if the problems of MCJ are necessarily the problems of the system. The Commission Report specifically stated that it would not address the adequacy of the architectural issues at MCJ. Instead it echoes other commissions and reports that call for the demolishing and rebuild- ing of the facility. We raise this issue only to say that in times of limited funding, it may be bet- ter to apply money and require change at those sites as opposed to changing the whole system. B. Other Large Jail Facilities From the Commission Report, it is unclear whether other entities like the Pitchess Ranch facili- ties, which house close to 10,000 inmates, require the same shift in organizational structure and staffing. Given that Dual Track is implemented system-wide, it is still relevant to look at staffing and cultural expectations at other facilities and see if all of the requirements should be imple- mented beyond MCJ. Pitchess Ranch (with its 4 facilities) is essentially its own small city com- plete with several industries and even its own power plant. Much of the housing is dormitory style versus at MCJ where inmates are housed in 2-man and 4-man cells. There are also several businesses on site with multiple workers. On our tour it became evident that it was helpful for the custody officers to learn the communities in these dorm settings. This was especially true in seeing potential issues on the yard during recreation when a few deputies would oversee over 150 inmates at a time. Rotation of officers, which the other sections of the Commission Report recommended, may actually do harm at these facilities. The needs and challenges of Court Facilities also contrast with MCJ. Most of these facilities are run down and as of January 2013, often lacked cameras. The challenge here is the transient population and the danger of smuggling contraband and information between inmates while go- ing back and forth to hearings and the home jail facility. Deputy training would ideally include different modules for these settings. 8 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-23 DUAL TRACK AND TRAINING 1. Assembly Bill 109 (AB 109) One system-wide issue not mentioned specifically by the Commission Report is the prison re- alignment put into place October 2011 through AB 109. Los Angeles County is now home for one third of the state's prison population. Staffing and training need to factor in AB 109 as it brings a more dangerous inmate population. These inmates have sentences of several years. This can and has changed the power dynamic in several circumstances where individual inmates will have been there longer than individual deputies or sergeants assigned to oversee the facilities. The Sheriffs Department needs to teach strategies on how deputies remain the "shot-caller" in these situations. · C. Type I Facilities and Alternative Staffing The Commission Report also makes no distinction as to Type I facilities which only house in- mates for up to 96 hours. Training and staffing considerations are quite different here compared to MCI. In fact, one of the interesting findings of the Grand Jury has been that in Type I facili- ties run by police departments, several are now run by private companies such as GEO and G4S Solutions. Cities chose these companies to cut costs and reduce administrative responsibilities. These companies are solely responsible for the hiring, training, staffing and paying of all em- ployees. The Department currently does not use civilians to run any of its facilities. The closest the Sheriffs Department comes to this is the use of Custody Assistants. Custody Assistants are currently under 35% of the overall Custody staff and the Sheriffs Department is planning to increase this by freezing 81 deputy positions and hiring Custody Assistants. The Department is currently not committed to increasing the ratio over 35% but has stated it will re- evaluate in a year or so. 11 The reality is that every position taken up by a Custody Assistant is one less deputy position. Job preservation has to be separated from job qualification to reach the proper ratio. For Dual Track to be successful long term, the Sheriffs Department needs to re- think how it utilizes Custody Assistants. Ultimately, the ratio of Patrol to custody positions needs to change (with more Patrol positions) for Dual Track to work. The Sheriff cannot do this without the cost saving method of decreasing staffing requirements of deputies in the jails. In January 2013, the Board of Supervisors agreed to fund the Sheriffs request to send 512 long term inmates to the City of Taft. This precedent of having County inmates being supervised by an entity other than the Sheriffs department allows the County to consider other staffing solu- tions. Why not consider alternative models of staffing at Type I facilities, either through privati- zation or more Custody Assistants, especially ifthere could be cost savings? V. Mental Health A. Twin Towers is a De Facto Mental Health Hospital Twin Towers has now become a de facto mental health hospital-in fact the largest mental health facility in the country. The Sheriffs Department did not ask for this, but this has been the outcome of federal and state policies of dealing with the mentally ill over the course of many years. The problems raised and resources required to adequately address the issues involving the 11 Testimony of Sheriff Baca, February 19, 2013 Board of Supervisors Meeting 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 9 3-24 DUAL TRACK AND TRAINING mentally ill are significant. The Commission Report stated that 30% of use of force incidents in- volved the mentally ill (though they make up 15% of the overall jail population). The 6th and ih floor of Twin Towers is home to the most severely ill inmates. Whereas the lower floors will have two deputies for a population of 255, the 7th floor has seven to eight staff people during the daytime for a population of approximately 90. In addition to the staffing resources provided by Sheriffs, the County further expends resources through the Department of Mental Health. Sev- eral mental health professionals are on site every day and interact regularly with the deputies and inmates. Sadly, our society has created a system where law enforcement officers--not doctors-are put in charge of the mentally ill. This has created an odd situation when certain laws that would apply to mental facilities are not applicable to jails. For example, Health and Safety Code Section 1257.8 requires all health care facilities to provide all workers, whether they are positioned staff, or are simply floating to the departments, comprehensive training in recognizing, reacting appro- priately and safely to, and preventing violent situations within these settings. The state mental health facility we visited taught all employees a program called Management of Assaultive Be- havior (MAB). This program teaches how to prevent, correctly react and effectively manage any aggressive or violent incident with the least amount of force involved and in many cases, avoid any physical intervention at all. The state hospital had a significantly smaller ratio of guards or other policing personnel to oversee their penal population. While some of this may be explained by factors involving the severity of the underlying crimes committed, some of this had to do with training. Conversely, custody requirements for inmates do not differentiate between mentally ill inmates and the general population. 12 The Grand Jury spent time in observation at Twin Towers and commends the work done by the deputies who oversee the mentally ill inmates. The Grand Jury would not recommend rotation by deputies without specialized training, experience and tem- perament in dealing with mentally ill inmates. It is not enough to be a Custody Deputy on these floors as the interactions with the inmates are qualitatively different. Inmates are handled con- tinuously by deputies on the mental health floor, whether it is because of the need to walk an in- mate to another area or to pull an inmate out of a cell in order to comply with the mandated hours spent outside of a cell requirement. A deputy has to deal with everything from screaming and profanity to spitting and the throwing of feces. The County needs to look carefully at the two models of housing inmates and determine what makes the most sense to invest in long term. The Sheriffs Department needs to go beyond the issue of Dual Track when dealing with this group and see if it makes more sense to shift more of the work to civilians. If the County is asking the Sheriffs Department to run a mental hospital, then the requirements that apply should be more along the lines of a hospital and not a jail. 1. MIST Inmates-A Major Flaw in the System 12 Title 15 of the Penal code that sets out treatment for all inmates applies regardless of the mental health of the in- mates. 10 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-25 DUAL TRACK AND TRAINING The Grand Jury acknowledges the complexity of this issue given that many of the inmates on these floors are very dangerous and have committed serious crimes. Also disturbing are the in- mates who feign mental illness so they can be transferred to these floors. That said, there is no denying that high percentages (possibly 50% on the 6th sand 7th floor) are in jail simply for being mentally ill. Some were initially arrested for minor misdemeanors and then ruled incompetent to stand trial. These inmates spend many months in jail being treated with the hope they can be rendered competent. In fact, they are often held for months longer than the sentence they would have received even if they were found guilty and served their full sentence. These cases are re- ferred to as MIST (California Penal Code 1370.01, Misdemeanant Incompetent to Stand Trial) and are a serious flaw in the system. Housing these inmates in this environment drains resources and takes up valuable bed space in the jails. Any staffing that takes place needs to factor in these realities. B. Mental Health Training at Twin Towers As mentioned above, formal training in specific de-escalation techniques is less for Sheriffs per- sonnel than it is for hospital workers. The structure of having people from the Department of Mental Health on site accounts for much of the training that does happen in Twin Towers. Cus- tody Officers have the chance to ask questions and to watch the modeling done by the mental health personnel. Sheriff Department leadership in this department is also strong. In conversa- tions with deputies, most felt they learned the most from the day to day teaching that came from senior deputies as they did the job. On this floor, senior deputies reported passing on pointers and tips they would give newer personnel. The other type of training that was found to be most . helpful was an experiential training offered by an outside pharmaceutical company that simu- lated what it felt like to live with schizophrenia. This training gave the deputies an insight into the behaviors that in other contexts could be seen as disrespectful and helped them reframe their responses to certain behaviors. The desire was there on the part of leadership to provide more but opportunities were very limited, mostly because of the need to backfill positions. Sadly, most of the rest of the department up until now has had minimal training in mental health issues and has received almost no training in areas such as PTSD or trauma, known to affect a large group of the general prison population. Deputies on other floors and at other facilities do not have the benefit of this mentorship or the constant interaction with the Department of Health and yet nevertheless deal with inmates with underlying mental health issues. The Grand Jury is not looking to excuse criminal behavior in inmates. Having an understanding of these conditions can help a Custody Officer differentiate disrespect from aggressive behavior from underlying mental conditions that may be non-threatening. This allows deputies a better understanding of how to approach and handle certain inmates. We know that the Department has been working on a video for many months and hope this will be a beginning of more training materials offered. C. Succession of Leadership One other area of concern is that there is no systematic succession plan in departments like this which benefit greatly from having a specialized knowledge base. No one is "on deck" currently to take over leadership of the mental health units. We also saw the same pattern in a court hold- ing facility which dealt with competency hearings. Despite the fact that the population was comprised entirely of those with mental health issues, virtually none of the deputies assigned re- 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 11 3-26 DUAL TRACK AND TRAINING ceived special training. The officer in charge seemed to do a wonderful job of leading by expec- tation and example but was less than a year from retirement. Dual Track addresses promotion but does not address succession at all in these specialized departments or how to best take advan- tage of institutional memory. In conclusion, it is the Grand Jury's hope that the greatest legacy of Dual Track is that it will provide the mentoring, training and practical work experience to allow not only for Custody spe- cializations but also for subject matter specializations. The Department will then have a pool of specialists in mental health as well as other areas like gangs, long term incarcerated inmates, and Education Based Incarceration (EBI) specialists. This will benefit not only those deputies who choose to make a career in Custody but also those who spend time in Custody positions and then take this knowledge out onto Patrol. REQUIRED RESPONSES Recommendation Responding Agencies 1.1, 1.2, 1.3, 1.4, 1.5, Sheriff's Department 1.6, 1.7, 1.8 Sheriff's Department 1.2 Los Angeles County Board of Supervisors 1.6 Department of Health LIST OF ACRONYMS AB 109 Assembly Bill 109-Prison Realignment CRDF Century Regional Detention Facility MCJ Men's Central Jail PTSD Post-Traumatic Stress Disorder 12 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-27 LAPD'S "SKID ROW" STATION COMMITTEE MEMBERS Charles Dolcey -Chair Albert Handschumacher Richard Huber Joan Turner Franklin Wurtzel Ung Yol Yu 3-28 2. LAPD'S "SKID ROW" STATION EXECUTIVE SUMMARY After a routine inspection of the Los Angeles Police Department jail facility at 251 East Sixth Street in Los Angeles, members of the 2012/2013 Los Angeles County Civil Grand Jury (Grand Jury) were encouraged by an officer at the facility "to take a close look outside." The members of the Grand Jury were shown air filtration and purification systems installed to abate the smell of contaminants from the outside air as well as hair from rodents. In their tour of the outside of the facility, the members observed human excrement and urine at various locations around the building together with rodent droppings, a dead rat and overgrown trees providing easy access for rodents into the building. The flower gardens in front of the station showed evidence of peo- ple having slept there and having used the area as their personal lavatory. In response to a report of these observations, the Grand Jury authorized an investigation into the conditions of this facility. The Los Angeles Police Department Central Precinct houses a Police station, Type I jail and a large motor pool and garage. The facility takes up the entire block be- tween Fifth and Sixth Streets and Maple Avenue on the west and Wall Street on the east. The Grand Jury visited this facility three times from September 2012 to February 2013. While condi- tions outside had improved marginally on the second visit, all three visits showed evidence that the exterior of the building continued to be used as a public toilet. Los Angeles Police Officers and other city employees should not have to work at a facility that is unhealthy and unsanitary. The City of Los Angeles owes them better. RECOMMENDATIONS: 2.1 The City of Los Angeles should initiate regular (at least monthly) maintenance of the exterior of the Central Precinct facility as well as regular tree trimming and rodent control. 2.2 The City of Los Angeles should purchase and install several "Portland Loos" (or similar) in the area of Central Precinct. 2.3 The City of Los Angeles should repair and make operative the drinking fountains in the public lobby of Central Precinct and remove the "out of order" signs on the otherwise working toilet facilities in the public lobby area. METHODOLOGY The Grand Jury visited the Los Angeles Police Department Central Precinct on three separate occasions in addition to its routine jail inspection. On each visit, jurors inspected conditions on the exterior of the building and in the lobby area. The Grand Jury also conducted research into the Portland Loo and reviewed various media articles about the Portland Loo as well as condi- tions in the "skid row" area of Los Angeles. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 13 3-29 LAPD'S "SKID ROW" STATION BACKGROUND The Central Precinct facility is located in the central "skid row" area of downtown Los Angeles. The Grand Jury recognizes and acknowledges that the problem of homelessness in Los Angeles has been the subject of numerous reports, debates and discussions and is clearly beyond the scope of this report. However, certain issues affecting the homeless can be addressed with rela- tive ease and without great public expense. One of these is basic sanitary lavatory facilities. Ac- cording to the Los Angeles Downtown News posted on November 23, 2012, there is one public toilet at the southeast corner of Fifth and Los Angeles Streets, one block from Central Precinct. Four other public toilets are scattered downtown. These are automated lavatories whose doors automatically open after twenty minutes. Only two of these are open twenty four hours a day. The Grand Jury understands that police agencies have expressed concerns about this type of pub- lic toilet because when closed, there is no way for a police officer to determine if the facility is being used for licit or illicit purposes. Because such toilets also have a sink inside, problems have also occurred with individuals using the facility as a laundry. With the number of homeless people in downtown Los Angeles (variously estimated at four to five thousand) all of whom are on the streets during the day, the sanitation needs are obvious. As observed by the Grand Jury, the lobby of the Central Precinct also requires attention from the City of Los Angeles. Although the lobby restrooms are operative, both have signs advising visi- tors that they are out of order. Additionally, the drinking fountains in the lobby are inoperative and apparently have been so for several years. Visitors to the Central Precinct are entitled to op- erative facilities when needed. FINDINGS Los Angeles should install several "Portland Loos" (or similar) in the area of Central Precinct The "Portland Loo" addresses all of the above noted concerns regarding public toilets. Devel- oped by the City of Portland, the Portland Loo encloses only a toilet with the lower portion of the enclosure louvered so that a police officer could discreetly determine ifthe Loo was occupied by only one person. Additionally, the sink is on the outside without a mirror to limit its use to hand washing only and the exterior has a graffiti-proof coating. The Portland Loo is also large enough to accommodate a user's bicycle or similar personal item and is easy to maintain. Patented by the City of Portland, see attached photos posted at www.google.com/images?q=portland+loo&rls and www.portlandoregon.gov/bes/59293)1, the Loo costs about $100,000 each and about $1,200 per month to maintain. Locating several of these Loos in the immediate area of the Central Pre- cinct would significantly mitigate the unsanitary conditions around the Precinct building and provide obvious benefits to the surrounding homeless population. If successful, installing addi- tional Loos in areas of need in Los Angeles would be desirable. 1 ©City of Portland, courtesy Bureau of Environmental Services. 14 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 3-30 LAPD'S "SKID ROW" STATION The City of Los Angeles should make repairs to the Central Precinct In the short term, the City of Los Angeles should provide regular maintenance to the exterior of the Central Precinct building and the sidewalks surrounding it. The City should also trim the trees surrounding the Central Precinct and initiate rodent control to improve the conditions inside the facility used by police officers and other citizens. Finally, the City should repair and make operative the drinking fountains in the lobby of the Central Precinct and remove the "out of or- der" signs from the otherwise operative lobby restrooms. REQUIRED RESPONSE City of Los Angeles 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 15 3-31 LAPD'S "SKID ROW" STATION EXHIBITS 16 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-32 ltjibmbl• St!lalt.tSttel Wllllillmth Button·Attivald !xtori•r bad Wask flxtwt CHtuUlrilArtworlr atUtUPHtl 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT LAPD'S "SKID ROW" STATION 17 3-33 LAPD'S "SKID ROW" STATION 18 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-34 PROBATION DEPARTMENT EMPLOYEE MISCONDUCT COMMITTEE MEMBERS Franklin Wurtzel -Co-Chair Caroline Kelly -Co-Chair David Dahl Joseph DesBarres Carol Pentz Frederick Piltz Barry Rubens Jerome Strofs Joan Turner Elena Velarde 3-35 3. PROBATION DEPARTMENT EMPLOYEE MISCONDUCT EXECUTIVE SUMMARY The Los Angeles County Probation Department (Department) has faced many well publicized challenges over the last five years dealing with its operation of juvenile halls and camps. The 2012-2013 Civil Grand Jury (Grand Jury) learned that many of these challenges come back to issues of staffing and personnel. After discussions with the leadership of the Department, the Grand Jury has chosen to focus on two areas. 1. For the last two years, the Department has engaged in significant efforts to clear the Department of sworn officers who have engaged in criminal conduct. Many of these offi- cers were hired during a period when the sheer volume needed to fill positions resulted in a laxrn~ss of screening. Failures of discipline and lack of personnel to investigate and ade- quately defend cases appealed to the Civil Service Commission further hampered the De- partment's efforts. 2. Assembly Bill 109 (AB 109), which calls for realignment of inmates from state pris- ons to local communities, has put pressure on the Department once again to hire a large vol- ume of employees to serve as probation officers for inmates released from the County jails. The Department must remain vigilant to ensure that the pressure to hire does not compro- mise the quality of the hires. Further, a balance must be struck so that the experienced pro- bation officers in the camps are not the sole source of hire into these positions. Too much upheaval in camp staffing could seriously undermine the improvements that have been made in the camps. COMMENDATIONS 1. The Board of Supervisors is to be commended for its decision to supplement the staff of the Probation Department with additional internal affairs investigators and in-house legal coun- sel. RECOMMENDATIONS 3.1 The Probation Department should continue to hire new employees who only fall into Bands One and Two of the applicant pool and increase recruiting at local colleges and uni- versities. 3.2 The Probation Department should use its best efforts to retain experienced supervisory staff at its juvenile halls and camps while otherwise meeting the staffing needs mandated by AB 109 Realignment. 3.3 Chief Information Office should organize a working group comprised of representatives from the Sheriff's Department, District Attorney, Probation Department, County Counsel and Civil Service Commission in order to establish data entry protocols that produce consistency in all data fields. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 19 3-36 PROBATION DEPARTMENT EMPLOYEE MISCONDUCT METHODOLOGY The Grand Jury reviewed substantial documentation from the Probation Department, Civil Ser- vice Commission, County Counsel, District Attorney, Sheriff and Los Angeles Police Depart- ment in order to better understand the processing of adverse employment actions against Proba- tion Department employees, criminal proceedings involving such employees and the cost of liti- gation arising from misconduct of such employees. The Grand Jury encountered significant challenges in its efforts to harmonize the data received from these several different agencies. The Grand Jury also reviewed published articles in local media and two reports of the Office of Independent Review (OIR). The Grand Jury met with several members of senior leadership of the Probation Department and representatives of the County Counsel and Civil Service Commis- sion and exchanged written communications with the District Attorney. The Grand Jury also visited Juvenile Halls and Camps and spoke with leadership, staff and incarcerated youth at these facilities. BACKGROUND During the period of approximately 2000 to 2006, confronted by significant needs, the Probation Department hired approximately 1,000 new employees, most of whom were sworn officers. Ac- cording to senior leadership of the Department, compared to previous years, a higher number of these employees had backgrounds that were questionable and qualifications that were inferior. These poor hiring decisions led to significant problems within the Department and some well publicized embarrassments. According to its February 2012 Report, the OIR found that fifty-one Department employees were arrested or named as suspects for crimes ranging from violating re- straining orders to drunk driving and shop lifting to defrauding the federal government in 2010 and sixty nine Probation Department sworn officers were arrested and/or convicted of crimes in 2011. On September 18, 2012, the Los Angeles Times reported: "Two weeks ago, a six-year employee of the Los Angeles County Probation Department was charged with persistently filing false workers' compensation claims. Earlier this month, police arrested a probation officer for allegedly shooting a man in a Covina bar. Those cases came on top of the dozens of drunk-driving, drug possession and theft arrests that seemed scattered throughout the 6,500-employee agency. On Monday [September 17, 2012], FBI agents arrested the highest-ranking member of the Department yet --Carl Edward Washington, a division chief of intergovernmental relations and former state legislator."1 According to the March 2013 OIR Report, in 2012, 64 Probation Officers were either arrested or had significant police contacts, i.e. where the employee may not have been arrested but was detained, questioned or issued a citation in a criminal matter. 1 "County probation official arrested on fraud charges'', Richard Winton and Jason Song, Los Angeles Times, Sep- tember 18, 2012 20 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-37 PROBATION DEPARTMENT EMPLOYEE MISCONDUCT The Grand Jury was informed by senior Probation Department leaders that due to a lack of resources to properly investigate and prepare responses to adverse employment action appeals to the Civil Service Commission, employee discipline was often reduced or reversed. The Grand Jury also determined that incidents of past discipline, e.g. suspension for misconduct, would not preclude or defer promotion eligibility since seniority is the principal criterion for advancement. The Department senior officials also mentioned significant and continuing abuse of disability leave and workers compensation claims, at least one of which as noted above resulted in criminal charges. This issue is particularly noteworthy as the Grand Jury learned in interviews on visits to the juvenile halls, typically as many as 25% of the staff were out on leave or on prescribed light duty. Further, replacing staff on leave created a significant budget issue for the Department since employees on leave were also on salary. In the course of its investigation, the Grand Jury submitted multiple requests for records to the Probation Department, Civil Service Commission, County Counsel, District Attorney and the Sheriff and LAPD. The case management and/or data management systems within each agency were unique. The data entry protocols are similarly unique. This made it difficult and sometimes impossible to harmonize the data and to reach any conclusions that were statistically and clearly supported. The data received indicated that Los Angeles County has, in the last few years, incurred almost $600,000 in costs and fees defending claims of misconduct by sworn officers directed at incarcerated youth. This data is incomplete and the actual costs may be significantly higher. Before the Grand Jury could fully assess the data provided to it, the Board of Supervisors approved the Department's request for additional investigative and legal staffing. FINDINGS Realignment challenges AB 109 and its companion bill, Assembly Bill 117 were enacted to allow California to reduce its overcrowded state prison population in compliance with federal court mandates. So called "AB 109 realignment" has resulted in the transfer of certain prisoners from state prisons to county jails and the early release of others. Realignment has significantly increased the jail population in Los Angeles County and, according to Probation Department senior leadership, has increased the need for probation officers by approximately 200 to supervise felons benefitting from early release. Applicants for probation officer positions are separated into five bands determined by qualifications and background -Band One being most qualified and Band Five being least qualified. In order to avoid past hiring mistakes, the Department has determined that newly hired probation officers would only come from the pool of candidates in Bands One and Two. More thorough background checks would also be incorporated into the hiring process. Increasing recruiting efforts at local colleges and universities may also be of benefit to the Department in its efforts to meet realignment needs. Retention of experienced juvenile camp and hall staff Critical in this process is the need to retain experienced officers at juvenile camps and halls rather than promoting these officers to field duty as might otherwise be required under existing procedures. The Probation Department and the United States Department of Justice (DOJ) have 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 21 3-38 PROBATION DEPARTMENT EMPLOYEE MISCONDUCT entered into an Agreement to correct various deficiencies found at the juvenile camps. This Agreement was extended for another year in November 2012, to allow the Department to fully implement certain recommendations. If the usual career progression within the Department is followed in order to meet the needs of AB 109 realignment, a significant number of experienced juvenile camp and hall probation officers would be transferred to supervise newly released felons. Such a result would negatively impact the Department's success in complying with the DOJ Agreement. Data frustrations The Grand Jury understands and appreciates the need for certain county agencies to maintain separate non-accessible data management systems. The Sheriffs Department and the Probation Department obviously maintain highly sensitive information unique to their law enforcement functions. Further, personnel records of these agencies are extremely sensitive and protected by statute. Similarly, the case management system maintained by the County Counsel also contains privileged attorney-client and work-product information. And the Civil Service Commission re- cords contain confidential personnel information. Nevertheless, the lack of any consistent proto- col for data entry made it extremely difficult for the Grand Jury to evaluate and assess the data provided to it by these agencies. For example, names were sometimes entered last name first and sometimes the reverse and acronyms were used without explanation of meaning. The Grand Jury encourages the Chief Information Officer to convene a working group comprised of repre- sentatives from the Sheriffs Department, District Attorney, Probation Department, County Counsel and Civil Service Commission in order to establish data entry protocols that produce consistency in all data fields. REQUIRED RESPONSES Recommendation 3.1, 3.2 3.3 22 Responding Agencies: Probation Department Chief Information Office 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-39 FOSTER CARE HOTLINE INVESTIGATION COMMITTEE MEMBERS Jeff Clements-Chair Carol Pentz Thomas Scheerer 3-40 EXECUTIVE SUMMARY 4. FOSTER CARE HOTLINE INVESTIGATION The Los Angeles County Civil Grand Jury (Grand Jury) has frequently reviewed the activities of the Department of Children and Family Services (DCFS), an organization that has faced signifi- cant challenges, even crises, over the years. This section focuses on the Child Protection Hotline (Hotline), the public's ingress into the foster care system, the entry point where suspected child abuse or neglect is first reported. While the Hotline, in most instances, is doing an outstanding job with knowledgeable manage- ment and skilled, dedicated workers, it has drawn intense criticism, most recently in April 2012 from the .Board of Supervisors' Children's Special Investigation Unit. (The CSIU Report.1) The Grand Jury agrees that there is always room for improvement and, in a few instances, urgent im- provement is needed at the Hotline. DCFS' responsibilities include the protection of all children in this County from abuse and ne- glect. That work begins at the Hotline, which receives too many noncritical calls, makes too many referrals, and creates too much work for DCFS employees downstream. DCFS must focus senior management and its resources to improve the Hotline by reducing the number of calls that go through the system, by upgrading the personnel and the compensation of those who work there, by reducing the number of policies within DCFS and by engaging the community into its efforts to reduce child abuse within the county. To be specific, community- based services need to be expanded. Utilizing the community involved Point-of-Engagement (POE) approach should be revisited to apply countywide as it appears to be showing significant success in the Compton and Torrance regions. The County must establish a separate crisis hotline and must embrace regionalization of the sys- tem. The Hotline must promote the notion that Hotline employees need special interpersonal probing skills not present in every individual. Further, it must implement better means to reward the employees under intense stress and reward the high performing employees. Clearly, there are excessive policies, procedures and practices throughout DCFS that need to be more effectively accessible and easier to navigate, if not reduced. At a minimum, a search fea- ture needs to be incorporated within the policies, procedures and practices themselves to allow ease of searching for appropriate information within the document. Generating referrals takes significant time and there continues to linger a "culture of fear" throughout the Hotline. 1 Report Regarding DCFS Recurring Systemic Issues, Children's Special Investigation Unit (CSIU), April 16, 2012, (CSIU Report), 2012-2013 Los ANGELES COUNTY CIVIL GRAND JuRY REPORT 23 3-41 FOSTER CARE HOTLINE The Grand Jury agrees with the CSIU Report in which it is stated that the Structured Decision Making (SDM) tool's function, training and usage by Hotline employees must be reexamined for its intended purpose. 2 COMMENDATION DCFS is commended for its operational staff at the Hotline, who were very conscientious, knowledgeable, open and extremely helpful to the 2012-2013 Los Angeles County Grand Jury. RECOMMENDATIONS After conducting its investigation and based on its findings, the Grand Jury provides recommen- dations to DCFS and the Board of Supervisors as follows: 4.1 DCFS should initiate, in conjunction with the Los Angeles County Board of Supervi- sors, a separate crisis/information telephone number. 4.2 DCFS Hotline needs to be reconfigured so that call handlers only take calls from spe- cific regions, for example Pomona, Long Beach, or the San Fernando Valley, in order to be better able to identify local resources. 4.3 DCFS must find a method to recognize the specialized performance requirements of the Hotline employee. It must also enhance and reward the work experience for its productive Hotline employees. Most importantly, the Hotline must not be used to accommodate employ- ees who cannot function adequately elsewhere. 4.4 DCFS must reduce or streamline the policies, procedures and practices that Hotline em- ployees are expected to master. 4.5 DCFS management must become more directly involved with the actual Hotline calls system by directly experiencing real time calls. 4.6 DCFS should create a separate phone number from the Hotline for calls involving chil- dren who are absent without leave (AWOL) from their foster home or those calls involving "re-placements." 4.7 DCFS must reduce the number of unwarranted referrals, by which it is meant those re- ferrals found to be "unfounded." This can be aided by allowing the Hotline employee to de- viate, if need be, from the Structured Decision Making (SDM) tool and rely more on their background and work experience. DCFS needs to allow for regional and cultural differences while ensuring consistency and efficiency. 4.8 DCFS must reduce the scope of the Child Welfare Services/Case Management System (CWS/CMS) applied to urgent Hotline issues. The Hotline should focus on how to respond 2 Ibid., pp. 38-39. 24 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 3-42 FOSTER CARE HOTLINE quickly, gathering only as much information as necessary to make a determination for child abuse or neglect. 4.9 DCFS has to aggressively engage the community (e.g., churches, Alcoholic Anony- mous, and the like) in its efforts to provide safety fot the children in the County. The coin.:. munity's resources have to be accessed to reduce the need to make "the call." The Point of Engagement (POE) approach, which shows promise in Torrance, for example, should be de- ployed countywide. 4.10 DCFS should expand the pool of employees who are available to work at the Hotline to include those 1~pplicants without social work backgrounds. It must recognize the special- ized nature of Hotline work and include persons with, for example, police backgrounds, in its applicant pool. This recommendation is similar to that made in 2012 by the CSIU.3 METHODOLOGY In investigating the operations of the Hotline, the Grand Jury's investigative committee visited the Hotline a number of times, consulted with senior officials of DCFS and also interviewed a number of employees who worked at the Hotline as well as those who receive its referrals. The Grand Jury also reviewed documents, statistics, and interviewed a number of persons in other, affected public or private agencies and regional offices who are conversant with the issues in- volved in foster care. The Grand Jury also witnessed firsthand actual Hotline calls .afttl the inter- active interrogations. Moreover, the Grand Jury's committee reviewed the 2012 "Confidential and Privileged Report" to the Board of Supervisors from the CSIU. That document may be viewed on the website of the Los Angeles Times. 4 · The Grand Jury also reviewed the strategic plan currently being developed by DCFS. BACKGROUND. The County of Los Angeles and its DCFS recognize that the health, well-being, and safety of its young people is an incredibly important concern, a concern that is shared by the entire communi- ty. Its citizens must share the responsibility of protecting society's youngest from abuse and he- glect.5 This obligation to protect the youngest has led to a system of "mandated" reporters, those per- sons in a position to observe suspected child abuse and pass that suspicion along to the appropri- ate authorities. This system is codified in the California Penal Code, section 11164, which pro- 3 Ibid., p.2. 4 "Report: Front-End Failures in Deaths of LS County Foster Kids" Los Angeles Times. Feb. 14, 2013 http://documents.latimes.com/reports-severe-problems-los-angeles-county-department-children-and-family-services/ 5 DCFS, Hotline Model of Practice, 2012, pp. 3-4. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 25 3-43 FOSTER CARE HOTLINE vides a list of such reporters. That list includes teachers and school personnel, medical person- nel, law enforcement officers, clergy, and many more. DCFS staff and a previous DCFS director have stated to the Grand Jury that approximately 80% of the calls that come into the Hotline come from these mandated reporters. The task of protecting the children within the County starts with the Hotline, as the Child Protec- tion Hotline is known. It is a separate telephone line maintained by the County around the clock for the reporting of suspected child abuse. The Hotline is the way that abuse is initially reported to the County. 6 FINDINGS The Hotline is administered by the DCFS and staffed by approximately 150 personnel referred to as Children's Social Workers (CSW) at a centralized location in downtown Los Angeles. The Hotline receives over 180,000 calls each year.7 Half of the calls involve allegations of child abuse. These calls are screened to obtain appropriate information in an expedited way, then that information must be digested quickly in order to determine the response fitting to the situation. The Hotline employee must assess the level of danger, obtain basic information such as the place where the child is located, search records to determine if this family unit has a history involving child abuse, and generate a referral and level ofresponse. The CSW must then determine the proper DCFS office to contact to conduct an investigation. CSWs must have a particular set of skills and the ability to operate under pressure. They must know how to listen, to calm agitated callers, to think critically, to ask important questions and they must know the types of abuse and neglect, whether physical, emotional, or sexual. They must also know their own biases and realize that they cannot jump to conclusions. They must also apply the appropriate level of probing into possible hidden critical issues. This requires spe- cial skills, training and experience mastered to varying degrees by each CSW. They must also exercise critical judgments to set priorities on how quickly to respond or if DCFS is to respond at all. To assist in this particular decision making task, the County uses a software tool known as Struc- tured Decision Making (SDM) to guide a CSW to an appropriate response. Given all the fore- going, it is no surprise that SDM is a long and complicated tool that requires considerable learn- ing time to use effectively. Fortunately, it is understood that significant upgrade and modifica- tions to this tool are in development. That is not all. All the information that is received by the CSW goes into a system known as CWS/CMS, which, as noted above, stands for Child Welfare Services/Case Management Sys- 6 Ibid., p.4. 7 Department of Children and Family and Family Services, Executive Committee Reports, Data as of October 9, 2012 (pages IV-B-3 and IV-C-3) 26 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-44 FOSTER CARE HOTLINE tern. If it is determined that a call to local law enforcement is needed, a Suspected Child Abuse Report (SCAR) is generated. Done electronically, this then becomes an Electronic Suspected Child Abuse Report (ESCAR). A senior employee pointed out that all this activity takes considerable time. The activity that previously took a worker 15 minutes to process can now take an hour. The information is there. It is valuable, it is important, but takes considerable time to process. DCFS Must Reduce The Number Of Calls Into The System A. The Hotline Responds To a Wide Range of Calls According to a respected former senior manager, there is a general consensus that the Hotline simply handles too many phone calls. During the month of March 2012 there were over 19,000 calls. There was an average of over 16,000 per month in 2012.8 The Hotline receives as many calls in one day as a city-county such as San Francisco receives in a month. The issue is how to most effectively and efficiently address this massive volume of calls, in order that the limited resources of the DCFS are prioritized properly and deployed to the most serious cases. The occurrence of a child's death, a tragic event, triggers scathing criticism from almost every conceivable source. The assertion is made by the critics that DCFS is out of control and that its Hotline is to blame. The CSIU report, for example, cites the Hotline as having a signifi- cant role in the deaths of 13 children in a 14-month period from October, 2010 to December, 2011. 9 B. The County Must Establish a Separate Crisis Line As stated previously, some 80% of calls to the Hotline come from mandated reporters. It is thought that excessive caution drives these calls. If a mandated reporter even suspects child abuse, it is better for that person to call than not to call. No one will get into "on-the-job trouble" for calling, whereas one might have significant liability if the purported abuse is ignored. The solution may lie in San Francisco's approach. It has a separate crisis line and not every call goes through its equivalent to the Hotline. According to those Hotline employees interviewed, some calls come from foster parents who simply are in the midst of a family crisis or who need information. The Hotline does make referrals to a 211 (information line), but a separate crisis line might be a valuable and cost-effective option based on feedback from the Torrance regional office. The County's 211 system has a strong reputation for its ability to make appropriate re- sponses so a well-advertised separate information line would be a worthwhile idea. 8 Department of Children and Family and Family Services, Executive Committee Reports, Data as of October 9, 2012 (pages IV-D-5) 9 CSIU Report, p.7. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 27 3-45 FOSTER CARE HOTLINE C. There is a Need to Eliminate Certain Calls from the Hotline In addition to removing non-crisis or general information calls from the system, an effort should be made to minimize or eliminate calls involving A WOLs or "re-placements." The A WOLs are children who are unaccounted for, such as runaways. Re-placements are children in the system who are being moved from one foster home to another. These children are already in the system and their situation has to be monitored, but the Hotline is not seen as the best option to do this. Consequently, there should be a separate phone number for foster parents to call instead of the Hotline. For example, a foster parent with a problem foster child may need another foster parent colleague to talk to, but the Hotline surely is not the best place to do so. Again, other lines are needed so as to free up the Hotline for real emergencies. D. Hotline's Best Employees Must Be Rewarded The Grand Jury believes that there must be a way to provide additional compensation to the very effective, efficient and productive workers at the Hotline. Call handlers who are efficient and effective, and handle a large number of calls should be re- warded for their performance. Ineffective and inefficient employees and those who are placed in the Hotline because they did not perform adequately elsewhere should be removed. The Hotline is too critical to be staffed by the "walking wounded." Of course, the union that represents the CSWs must be engaged in the process and the civil service rules must be honored The Grand Jury is also aware of this finding from the CSIU's 2012 report, "DCFS should ex- plore expanding the qualifications for social workers to include a broader range of educational backgrounds and types of experience."10 This simply means the "what happened?" part of the investigation is of primary importance. Persons with experience and background in soliciting in- formation quickly and accurately, such as those with a police background, must be employed in this specialized area. The gathering of information in the first instance colors the whole process. It must be done by persons with the ability to do the task correctly, efficiently and effectively. E. Senior Managers and Regional Workers Need to Witness Actual Calls As the report from CSIU indicates, the Hotline and its work is probably the most important as- pect of the business of reducing child abuse and neglect.11 The ultimate result of DCFS' in- volvement with a family cannot be good if its investigation starts off with misinformation or a lack of direction. "Good decisions cannot be made without good information."12 If this task is as important as the CSIU report indicates, senior management has to be totally in- volved. Put senior management on the line. Having a call supervisor on call duty for a day or two 10 CSIU Report, p.2. 11 Ibid., pp. 9, 12. 12 Ibid., p. 12. 28 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 3-46 FOSTER CARE HOTLINE each month would enable them to clearly gauge the current situations. Top management must make the Hotline a priority. Another possibility would be to have CSWs from the field come in for a turn at the Hotline. If the field workers could see exactly how the Hotline actually works, then the CSWs from the field would be able to see the difficulties inherent in the system and, perhaps, allow for referrals that may seem unimportant. F. The County Needs to Reduce the Number of Policies Hotline staff members have informed the Grand Jury that employees at the Hotline must be aware of "everything," from the federal rules to the latest county policy statements. Does the staff get sufficient training? The Grand Jury understands that eight weeks of training is offered. Consideration should be given to expand training and/or staggered multiple training sessions. Moreover, the number of policies and procedures in place is simply too great. As the CSIU Re- port indicates, there seems to be a policy for everything, including a seven-page dissertation on how to handle non-English speakers. The number of policy pages totals 4364, according to the CSIU report, at pages 24-25. This number has to be decreased as the amount of information is more than any person can handle. If nothing else, DCFS should establish a program by which its "cumbersome and voluminous" policies and procedures may be quickly accessed. This is similar to a recommendation made in the CSIU Report, at pages 24-26. The DCFS Must Reduce Its Number of Referrals And Make Its Work More Efficient A. Referrals Take a Great Deal of Work-Hours Since the Hotline receives too many calls, its problems are compounded by the fact that the sys- tem generates too many referrals. For example, during the 2011-2012 fiscal year reporting peri- od, there were 165,442 referrals in L.A. County equating to about 11,000 to 15,000 per month resulting in about 24,867 case openings per year, equating to 1,600 to 2,200 per month yielding 10,275 removals per year of the child from the home.13 Staff has noted that each referral gener- ates an investigation which takes a minimum of 30 hours of work. Referrals tend to multiply. A call that references the alleged abuse or neglect of one child in a home will often lead to ques- tions about other children in the home, to other adults who live in the home or adults who regu- larly visit the home or family. Nonetheless, as the CSIU report noted at p. 16, approximately one-half of all referrals are deemed to be "unfounded." Another issue, as noted above, is that most calls come from mandated reporters, amounting to approximately 80% of the calls received. It is understood that a majority of these calls come 13 Department of Children and Family and Family Services, Executive Committee Reports, Data as of October 9, 2012 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 29 3-47 FOSTER CARE HOTLINE from schools. Naturally, these types of calls will never be seen as "crank calls." They have to be investigated, so a referral is generated; therefore, the system builds on itself. Abuse referrals amount to about half of the calls that come in and the other half are for neglect. They must be cross-referenced to the local law enforcement agency. While this has to be done, more strain on the workload and more paperwork is generated. Fear again drives much of the system. For example, it is unlikely any person working the Hot- line will ever get into trouble for making a referral. This may be why some of those interviewed say 80% of all calls lead to a referral. In many counties, the number of referrals is more in the vicinity of 60-70% of all calls, according to information obtained from a former senior official at DCFS. Another possibility would be to use the State guidelines as opposed to the County guidelines. According to staff interviews, the State's guidelines are more accommodating and would neces- sarily lead to fewer emergency referrals and create less stress on the regional offices. This is be- cause, as the Grand Jury learned from one of its interviews, that the State requires an immediate response to be accomplished within 24 hours as opposed to the County requirement that an im- mediate response be made before the work day is over. It is understood by the Grand Jury that this is not a popular idea with many staff, who prefer the County's more demanding "immediate response" protocol, but it should be done in order to reduce the stress inherent in the work. B. The SDM tool must be modified DCFS uses a software tool known as "SDM" in its decision and urgency/immediate response process. SDM provides guidance to the CSW taking a call as to how quickly to respond to the information at hand, but it is seen as focusing on or leading to referrals. If one goes through the SDM process, a referral is usually created. The CSW handling the call does have discretion to override the SDM result, but why do so? SDM said to do it. Why take a chance? The answer has to be that a CSW's common sense, experience, and knowledge regarding the response decision have to be respected. The CSWs are trained and that training has to be more than how to follow a checklist. The CWS/CMS is the statewide system for tracking child abuse and neglect. The County uses all of this information in its effort to deal with this terrible problem, but it is a time-consuming process. According to Hotline employees, other counties (albeit smaller counties) use only a portion of the CWS/CMS to track problems, but Los Angeles, despite its tremendous workload, uses it all. The Grand Jury observed that this entire process involves a climate of fear. Fear oflawsuits, fear of being the one CSW who failed to do a referral in a case that subsequently turned into a horri- ble situation or even a case that surfaces years later. No one wants to be faced with the question, "Why didn't you do more?" Therefore, the system generates more referrals, based on more calls, leading to greater stress. C. Report-Writing Takes Too Long 30 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-48 FOSTER CARE HOTLINE Writing the description portion of the CWS/CMS is a problem in that it often takes too long. A 15-minute phone call often generates a report that requires 45 minutes to complete according to a Hotline worker. During that time, the CSW is writing the report and not available to field calls. Even with the best workers and best software tool, the documented referral may not be 100% correct. Employees in the field have pointed out to the Grand Jury that ifthe Hotline generates a referral that goes out to a regional office, it is difficult to reverse. A supervisor at the local office level has to be willing to make the request and to fight for the reversal. He/she also has to be able to get through to the person at the Hotline who generated the referral to convince that person to make the change. Referrals do tend to multiply, with "follow-ups" and "open" investigations. Interviews with staff indicate that most referrals lead to a minimum of 30-40 hours of work. The initial caller has to be contacted, of course, but the family, neighbors, school officials, etc. will need to be addressed. A referrai' casts a wide net. The Grand Jury thinks that cases stay open too long and the system is overwhelmed with cases. Nonetheless, the number of actual removals from the home is about six per cent of calls that are received. As noted above, thousands of referrals (180,000 or so per year) are made with approx- imately 10,000 children actually removed from their homes and placed in foster care. The num- ber, of course, is a huge number standing by itself, but stands as a relative few when compared to the total number of calls received. It is clearly desirable to take remedial action to alleviate the . situation and allow the child to remain in the home. D. An Effort Must Be Made To Regionalize the System The Grand Jury recommends that DCFS pursue some effort to regionalize the call system. In years past, the call system was regionalized in terms of physical locations. That system no longer exists. There was concern, perhaps valid, that child abuse in one sector of the County might not be seen as child abuse in another. Consequently, that type ofregionalization where child abuse in one part of the county may not be seen as abuse in another part of the county has been avoided in recent times. And there is no reason to establish call centers in different portions of the coun- ty. The call center recently relocated to downtown Los Angeles. That type of consolidation re- sulted in improvements in efficiency and consistency. However, if CSWs who take the calls had specific knowledge ofresources in one particular lo- cality, it would benefit the caller. For example, a CSW who, in general, took only calls from the San Fernando Valley would quickly come to know the availability of resources in that area as opposed to being responsible for knowing everything about every resource in every sector in the county. These regional Hotline specialists would be housed in one central location and have calls channeled to them. While this was implemented to some degree in the past, and was less than successful, the time might be right for a re-try given the developments with information technology and computer networks making information quickly available and at one's fingertips. Many observers believe that L.A. County has to recognize that its very size is an issue and an effort must be made to re- gionalize the system would address that issue. 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 31 3-49 FOSTER CARE HOTLINE DCFS To Utilize More Community-Based Services A. More Community-Based Services Are Needed The Grand Jury has learned of a program called Point-of-Engagement (POE), which emphasizes community-based services. If the community becomes more involved in helping out its member families with the troubles that occur in families, it follows that the community will be stronger and DCFS should have fewer abuse calls to deal with. If the Hotline is ever able to get the number of calls and referrals under control, it will probably be because of more involvement by community-based services. Those services include those offered by churches, clergy, other faith-aligned organizations, Big Brothers/Big Sisters, Alcohol- ics Anonymous and/or drug abuse organizations It is believed by the Grand Jury and those interviewed that these organizations have the ability and the wherewithal to promote healthy families and to cause a decline in incidents of child abuse and neglect. They can aid families so that they can solve their own problems with perhaps just a bit of help. If that process is a success, there may be no need for "the call" to the Hotline. DCFS should catalog what relevant resources are available and be willing to ask to use the facili- ties that exist. "Can we use your hall for a meeting?" Such a venue will certainly be more user- friendly and less intimidating than a government office, especially for an organization that wants to show a friendly face to the community. DCFS needs to tell the community who it is and make the point very clear that DCFS is not in any hurry to take your child or anyone's child away from the rightful parent unless it is truly warranted. Like everyone in the community, it wants a safe, secure situation for every child and realizes that the much-preferred option is for the child to be in its own home. The County is not coming to take your child and the community needs to hear that simple phrase. Negative myths and stereotypes do exist in the community and those DCFS employees inter- viewed recognize this. The myths and stereotypes have to be faced. Too many people fear the DCFS and see it as an organization that is not friendly to the community. DCFS must overcome these myths and stereotypes. One idea is to place CSWs from DCFS in "volunteer" situations, so that the community sees them and recognizes them. DCFS can place them in schools or at police stations. In order to interact with the community, it needs to get them out of the Field Office. It can schedule visits and meetings at neutral sites, so that there is less institutionalism involved. Showing DCFS in its best light must be a goal. As stated to the Grand Jury by one employee, it simply needs to do some public relations or do some marketing. 32 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-50 FOSTER CARE HOTLINE B. DCFS Must Promote More Community Partnerships In order to reduce the number of calls to the Hotline, DFS can have "community partnership" meetings. The Grand Jury believes DCFS can find such partners. Services do exist and DCFS must get them on the side of DCFS. It has to be ready to say, "We need your help." Observers recognize that DCFS has a stake in getting such organizations on its side. Important- ly, it can and must find out exactly what is out there in the community. It simply needs to go around and look. It needs to be visible. It needs to recognize that it must, on occasion, ask for help. DCFS has to "beat the bushes" in order to locate resources that can used to reduce inci- dents of abuse or neglect. It can ask for volunteers from the community to be mentors. It need spend no money; just offer the satisfaction of being of aid. DCFS will not know how this works until it is tried. DCFS needs to determine whether schools can be used. They would appear to be an obvious re- source and can be used to solicit potential foster parents. DCFS can make presentations at schools and get involved with the school personnel to make its message known. Thus the County needs more "front-end programs," the kind that makes the call to the Hotline unnecessary. IfDCFS cannot provide all the programs needed, it can encourage community based-services to do so. The Grand Jury realizes that the DCFS has initiated some of these activ- ities but they need to be greatly expanded. REQUIRED RESPONSES Recommendation Responding Agency 4.1-4.10 Department of Children and Family Services 4.1 Board of Supervisors ACRONYMS DCFS csw CWS/CMS SDM SCAR ES CAR AWOL CSA ASFA Department of Children and Family Services Children's Social Worker Child Welfare Services/Case Management System Structured Decision Making Suspected Child Abuse Report Electronic Suspected Child Abuse Report Absent Without Leave Children's Services Administrator American Safe Family Act 2012-2013 Los ANGELES COUNTY CIVIL GRAND JuRY REPORT 33 3-51 FOSTER CARE HOTLINE 34 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 3-52 FOSTER CARE QUALITY ASSURANCE: TRAINING FOSTER PARENTS COMMITTEE MEMBERS Joseph P. Des Barres -Chair Marie Louise Gutierrez Caroline Kelly Elena L. Velarde 3-53 5. FOSTER CARE QUALITY ASSURANCE: TRAINING FOSTER PARENTS EXECUTIVE SUMMARY The Grand Jury declares foster parents as the backbone of the foster care system. Foster parents provide care 24/7, contending with the myriad problematic experiences of removed children. Foster parent training must be significantly enhanced to deal with the tremendous challenges fos- ter children present. The Grand Jury understands successful foster parenting is a complex under- taking requiring a high level of knowledge, attitudes, beliefs, and skills. The Department of Children and Family Services (DCFS) is the county agency responsible for the safety, well-being and permanence of foster children. Its charge is to place the child into a safe home. Often it does so with contracting agencies 1 that recruit, select and train foster fami- lies meeting requirements set by state law and DCFS. DCFS must upgrade and standardize its current training curriculum with parent and instructor participation. DCFS must train a~ cadre of master teachers to devise, model and impart training modules and methodologies. Master teachers providing instruction must receive current evi- dence-based2 training and techniques in adult learning theory. These master teachers should then instruct foster parent trainers county-wide, differentiating instruction according to learning styles and modalities. With a DCFS-certified and modeled curriculum, DCFS can assure consistency and high standards to all stakeholders. Expert master teachers and expertly trained foster parents are central to the DCFS vision. DCFS articulates its responsibility as: ... working towards its vision that 'Children thrive in safe families and supportive communities' with three overarching Goals: (I) Emphasize Child-Centered Practices; (2) Pursue Workforce Excellence; and (3) Strengthen Organizational Operations. 3 Accomplishing the goals above will occur when caregivers are rigorously trained; share and ar- ticulate the DCFS vision; and work collaboratively. The Grand Jury commends DCFS for under- taking the 2012 Strategic Planning Process-transforming the way the Department functions-to make its vision a reality. 1 Relative/Non-Relative Extended Family Member Homes; Foster Family Homes and, Foster Family Agency Certi- fied Homes. CWS/CMS Datamart History Table, December 31, 2012 2 Evidence-based practice is a combination of best research evidence, best clinical expertise and consistent with pa- tient values and preferences: Dr. David Sackett, 1996; www.hsl.unc.edu/servics 3 Letter to Stakeholders, Philip L. Browning, Director DCFS, September 28, 2012 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 35 3-54 QUALITY ASSURANCE: TRAINING FOSTER PARENTS COMMENDATIONS 5.1 DCFS is commended for implementing the Strategic Plan 4 to transform itself. RECOMMENDATIONS 5.1 DCFS must assess, upgrade and standardize the scope and sequence of the foster parent training curriculum emphasizing evidence-based practices. 5 5.2 DCFS must train foster parents and a cadre of master teachers within the proposed DCFS Inter-University Consortium Training Academy.6 5.3 DCFS must quickly implement the Strategic Plan training objectives for foster parents. 5.4 DCFS must assign greater value to foster parent input within its multidisciplinary teams.7 5.5 DCFS must restructure its electronic data network to transmit client information on demand to all involved caregivers. 8 METHODOLOGY The Grand Jury met with the following: Edmund D. Edelman Children's Court, Department of Children and Family Services, the Department of Mental Health, Child Welfare Initiative of Los Angeles, Alliance for Children's Rights, California State University Northridge (CSUN) School of Social Work, Foster Family Associations (FFA) and an array of foster care providers. The Grand Jury reviewed studies and reports, including the Children's Special Investigation Unit Re- port (2012) to the L.A. County Board of Supervisors. This report detailed systemic child- endangering deficits and offered remedies. The Grand Jury interviewed foster care parents and foster children both currently in care and those who have exited care. The Grand Jury attended training sessions for prospective foster parents and researched the topics and content of the preparation and selection program for foster parents and adoptive parents. Sources of informa- tion included phone interviews, printed literature, database searches, county and agency web- sites, e-mails, newspaper articles, and reports of previous L.A. County Civil Grand Juries. The Grand Jury also researched information from the Casey Family Foundation, California Evidence- Based Clearinghouse for Child Welfare, Child Welfare League of America, National Foster Par- ents Association, the John Burton Foundation, and the Edmund D. Edelman Children's Court. 4 DCFS 2012 Strategic Plan: Living document of 48 objectives guiding DCFS efforts over the next 3 to 5 years 5PS-MAPP: Partnering for Safety and Permanence-Model Approach to Partnerships in Parenting, DCFS packet 6 DCFS Strategic Plan (Obj.: Il.3.1 [curriculum], II.3.2 [new hires' education], II.3.3 [caregiver/staff development]) 7 Multidisciplinary Team Approach: All identifiable caretakers having a stake in influencing a child's success 8 DCFS Strategic Plan (Obj.: III.1.1 [data report consolidation]; III.1.2 [streamline existing data reports]) 36 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-55 QUALITY ASSURANCE; TRAINING FOSTER PARENTS BACKGROUND What is the Depth and Breadth of Foster Parenting? .•. Each foster parent has an obligation to maintain and improve the practice of foster- ing, constantly to examine, use and increase the knowledge upon which fostering is based, and to perform the service of fostering with dignity, integrity and competence. 9 The National Foster Parent Association calls for three indispensable Parent Competencies requir- ing foster parent training: Principle 7: Promoting educational attainment and success. Principle 10: Growing as a foster parent-skill development and role clarification; participation in training, professional or skill development, and foster parent support organiza- tions and associations. Principle 12: Preparing children and youth for self-sufficient and responsible adult lives. Foster parents are essential to positive outcomes; thus, they must receive rigorous, ongoing and professional training to optimally raise their foster children. Current Minimum Requirements for Foster Parenting-the Core Abilities DCFS adopted the "Partnering for Safety-Model Approach to Partnerships in Parenting" (PS- MAPP) to prepare and select prospective foster parents. Relevant Core Abilities 10 equip them to: • Meet the developmental and well-being needs of children coming into foster care, or be- ing adopted through foster care. • Meet the safety needs of children coming into foster care, or being adopted through foster care. Skills training consists of ten meetings that cover the following required topics: Core Abilities; Developing the child's physical, mental, emotional, social, spiritual and moral compass; Dealing with Loss; Dealing with Attachment; Behavior Management; Birth Family Connections; Foster Care Exit; Fostering and Adopting; Foster Parent and Agency Worker Roles; Shared Parenting; and, Fostering and Adopting Challenges. During training, each foster parent is supposed to learn specific sk;ills and practice them. In the home, social workers should observe whether or not skills have been mastered. More importantly the social workers should provide feedback to further develop competencies or determine inabil- ity or unwillingness to master the required skills. 9 Excerpted from National Foster Parent Association, Code of Ethics; nfpaonline.org/ 10 PS-MAPP, Excerpted from The Five Core Abilities; DCFS packet provided to Grand Jury 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 37 3-56 QUALITY ASSURANCE: TRAINING FOSTER PARENTS FINDINGS Extent of the Problem According to DCFS data, more than half of court hearings end with the removal of children from their parents or guardians. 11 These out-of-home placements accounted for the living arrange- ments of approximately 16,000 children as of December 31, 2012.12 This is the juncture where foster parents enter and take charge. Foster Parents: Integral Team Members Foster parents are expected to care for children. They must always be included in any informa- tion loop.13 Foster parents' day-to-day contact makes their inclusion imperative. Parents should always be informed of all available historical data regarding their foster child. All foster children have issues-over 50% have significant mental health issues.14 Foster parents require informa- tion and skill-training to address those issues. The multidisciplinary team 15 supports a child throughout the foster care system. This represents "Child-Centered Practice"-one of DCFS's three overarching goals. Shared information guaran- tees each team member is "in the know." Standard operating procedure should enable each to send and receive accurate case information as required. Complex Conditions Demand Rigorous Curriculum Emotional, mental health and behavioral conditions compromise foster youth's ability to person- ally develop and exit foster care as fully functioning citizens. Years in foster care may include numerous additional placements resulting in separation trauma each time. For these children, such life disruptions end only when they are released from foster care. Sending 18-year old foster children with a history of abuse and no family ties into adulthood without the support and training they need to live productive, healthy and stable lives, is government-sanctioned child abuse. 16 11 Data Sharing: 2011 Final LA County lnteragency Report from 2010 data 12 Child Welfare/Case Management System [CWS/CMS] Datamart History Tabl~/BIS Information Technology Ser- vices Division-Statistics, Department of Children and Family Services, 2012 data. 13 Interviews with current foster parents 14 Interview with Department of Mental Health staff members 15 Multidisciplinary Team Approach: All identifiable caretakers having a stake in influencing a child's success 16 Quote per Supervisor Michael D. Antonovich (e-mailed to the Grand Jury on 3/14/12 by his deputy, Helen Berbe- rian-with permission to use) as contained in 2011-2012 Los Angeles County Civil Grand Jury Final Report 38 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-57 QUALITY ASSURANCE: TRAINING FOSTER PARENTS Many foster youth exit to find themselves unemployed, with neither high school diploma nor marketable skills. Self-sufficiency skills are best modeled by foster parents who have been pro- vided extensive training, resources and supports. These skills are learned and acquired over time. The Grand Jury sampled parent training classes for content and group interaction. Curriculum appeared overly broad and lecture-style. Group interaction and skill-building activities were not readily observable. Instruction must encompass Post-Traumatic Stress Disorder (PTSD), coping behaviors, critical thinking and conflict management. Skills practice must emphasize values, communication, behavior management, financial literacy, time management, peer pressure, nutri- tion and exercise. Filling in paperwork during valuable training time must be minimized. Scope and sequence of curricular outcomes must be standardized. Training for Evidence-Based Foster Parenting Foster parent training needs to follow evidence-based concepts. Casey Family Foundation and California Evidence-Based Clearinghouse for Child Welfare, for example, provide research for child welfare professionals and policy makers to make decisions based on supported evidence.17 Required annual training must equip parents with hands-on strategies to handle trauma, attach- ment, bonding, mental health and behavioral issues. Interactive training, based on research and evidence, builds on parents' personal knowledge and experience. DCFS approves and oversees all services required by foster care youth. It provides direct service and contracts with government and nonprofit agencies to provide mental health and physical health services. Many foster children move from one out-of-home placement to another.18 Quali- fied, proactive parents may reduce the number of placements-keeping the promise of perma- nence to a child. A well-matched, nourishing foster home is the critical intervention needed by foster youth. As one former foster care participant recently wrote in the Los Angeles Times: Los Angeles County needs to take immediate steps to monitor and improve the care that children receive in individual homes ... The county also needs to develop strategies for identifying families with the parenting qualities needed and eliminating those who don't have them. If a particular foster home repeatedly asks that children in its care be relocated, or if children in a particular home are more likely to fail at school or aren't taken to doctors when they need to be, then the county should no longer place children in those homes. This seems like basic logic; yet accordin§ to the report, 19 the county lacks the means to track outcomes from individual homes. 0 17 Casey Family Foundation; California Evidence-Based Clearinghouse for Child Welfare 18 Interviews with current foster parents and professional staffs of DCFS and FF As 19 A confidential report available on Los Angeles Times website, commissioned by the Los Angeles County Board of Supervisors, 2012 20 "A Safer Foster System," Andrew Bridge, Op-Ed page, Los Angeles Times, March 24, 2013 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 39 3-58 QUALITY ASSURANCE: TRAINING FOSTER PARENTS DCFS Strategic Plan's Implementation-Timely The Grand Jury commends DCFS for simply refusing to do more of the same. The De- partment's transformative planning process will effectively change its operation. This process unfalteringly questions what DCFS is about and how it should accomplish its mis- sion. The Strategic Planning Process is the engine that will move DCFS forward. DCFS must expand foster parent training and support because so much is expected of parents in today's world. This upgrade must encompass evidence-based training practices, a uniform prac- tice model and an accessible, inter-agency data system. Strategic Plan objectives point to foster parents as fundamental to quality foster care. DCFS pri- oritizes foster parent recruitment, selection, preparation and required annual training. DCFS will recruit an additional 10% of qualified, committed foster homes in proportion to the needs of each community; and provide these caregivers with training to promote child safety and address the needs of abused and neglected children. 21 The above objective (I.2.2) is a required strategy to reinvigorate foster parent training. Increas- ingly, foster parents are expected to deal with children's traumas. Ongoing research, transmitted as teachable modules, provides an essential skill hierarchy. In real life, a professional is required to complete defined, annual professional development. Initially and yearly thereafter, foster par- ents must complete rigorous parent development classes. Quality assurance requires training above and beyond what is now mandated. Commitment to parent training and development will yield positive applications when foster parents are full-fledged participants. Such training should be delivered through the DCFS Inter-University Consortium Project. DCFS Monitoring and Oversight: Reveals the Reality Foster children are cared for in licensed homes. DCFS Strategic Plan Objective I.2.3 calls to en- hance monitoring/oversight of Foster Family Agencies (FFA), licensed foster homes and other out-ofhome providers by coordination with Child Social Workers. While out-of-home place- ments often require services by contract, DCFS is ultimately responsible for the safety and well- being of foster children. This responsibility cannot be delegated. Monitoring and oversight ful- fills its promise of child safety, well-being and permanence. Enhanced monitoring and oversight benefit all foster youth and foster parents. It serves as the looking glass to evaluate, highlight and improve foster parenting practice. DCFS Strategic Plan Objective I.4.2 calls to ensure relevant contracted services include out- comes which assist and support shortened timelines to permanence. Monitoring and oversight require measurable outcomes. DCFS must obtain timely performance data to track case man- . agement and successful outcomes. Data systems must be readily accessible and useable. 21 DCFS Strategic Plan Objectives/Foster Parent Recruitment: 1.2.2 40 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-59 QUALITY ASSURANCE: TRAINING FOSTER PARENTS In Conclusion For quality assurance, foster parents need professional level training delivered by expert teach- ers. Foster parents must be valued members of the foster care system and the multidisciplinary team. Ready and willing-they have every right to expect the most current evidence-based train- ing-meeting the best practice standards set by DCFS. Foster parents are their child's passport to a successful life. REQUIRED RESPONSES Recommendation Responding Agency 5.1-5.5 Department of Children and Family Services 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 41 3-60 QUALITY ASSURANCE: TRAINING FOSTER PARENTS 42 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-61 FOSTER CARE TRANSITIONAL AGED YOUTH VOCATIONAL TRAINING COMMITTEE MEMBERS Gilbert Zeal Barry Rubens 3-62 6. FOSTER CARE TRANSITIONAL AGED YOUTH VOCATIONAL TRAINING EXECUTIVE SUMMARY Aging out foster care youth are being shortchanged by the current education system. According to the Department of Children and Family Services (DCFS), in 2011, there were approximately 2,400 youth between the ages of 16 and 18 in the Los Angeles County Foster Care system. DCFS estimates approximately 50% of foster youth who exit from high school are without a di- ploma or GED certificate. Youth who are aging out of foster care receive instruction in life skills that are necessary for day to day functioning as a responsible citizen. This training does not ad- dress all of the needs of the foster child who ends up unemployed, homeless or incarcerated. These youth need to be encouraged to complete high school, obtain their diploma and receive vocational training so they have additional skills to help qualify and obtain employment. The 2012-2013 Civil Grand Jury (Grand Jury) has identified several programs that provide voca- tional training and offer academic courses to obtain a diploma or GED certificate. Based on our findings, the following recommendations would accomplish this most important goal: RECOMMENDATIONS 6.1 DCFS should assess all foster care youth under its jurisdiction, 16-24 years old who do not have a high school diploma to determine whether a dual track approach is beneficial. This would combine academic and vocational training in order to enhance opportunities for employ- ment. 6.2 DCFS should assign a coordinator to begin a pilot program to encourage a significant number of foster youth to participate in the Y outhBuild Charter School of California (Y outhBuild) or similar program. 6.3 DCFS should strive to enroll more students in the Los Angeles Unified School District's (LAUSD) Alternative Education and Work Center Program (AEWC). The foster parent, guard- ian or DCFS case worker should work directly with the AEWC consultant at each location to en- roll youth in the AEWC program. 6.4 DCFS should begin training classes for case workers, group home supervisors, counselors and especially the foster parents to assure that all youth aging out without a high school diploma are on track to benefit from exposure to a vocational approach. · 6.5 The Los Angeles Unified School District (LAUSD) should evaluate the construction skills training at the Los Angeles County Probation Department's Challenger Camp in Lancas- ter to determine if similar training could be offered at AEWC locations that do not have easy ac- cess to skills centers. 6.6 LAUSD should expand the AEWC programs to include more students, teachers and loca- tions. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 43 3-63 TRANSITIONAL AGED YOUTH VOCATIONAL TRAINING METHODOLOGY The Grand Jury met with the Los Angeles Probation Department staff at the Challenger Camp in Lancaster to discuss the use of video guided training in the construction trades. They also visited construction sites where contractors were using high school students at the sites and saw contrac- tors instructing high school students, both male and female, in classrooms at some of the Y outhBuild schools. The committee visited all twelve Y outhBuild sites in Los Angeles County and nine of the 26 AEWC schools. It found highly dedicated instructors at both. It also inter- viewed students, graduates, contractors, counselors and transition coordinators. All were highly dedicated to their work and told many success stories. The committee met with staff from DCFS, LAUSD AEWC, LA Conservation Corps and a wide variety of teachers and youth. BACKGROUND Harvard University's School of Education published a 2011 study, "Pathways to Prosperity"1, which projected that only one-third of the 4 7 million jobs expected to be created between 2008 and 2018 will require a bachelor's degree, upending the traditional notion that success is strictly defined by graduating from a four-year college. Also, the study pointed out that the nation's high schools have extraordinarily high dropout rates. Every year some one million students leave before earning a high school diploma. Many drop out because they struggle academically. But large numbers say they dropped out because they felt their classes were not interesting and that high school was unrelentingly boring. Students drop out of high school and college for many reasons - a major reason is that too many are not able to see a clear, connection between their program of study and tangible opportunities in the labor market. Many students are frustrated by an education they often find irrelevant and removed from the world of work. As a result, ap- proximately 50% of students drop out of school or fail to obtain a diploma. 2 A significant difference between the United States secondary education system and other coun- tries is that most advanced nations place far more emphasis on vocational education than the United States. Most other countries have an educational program that typically combines class- room and workplace learning. This culminates in a diploma or certificate, a "qualification" as it is called, with real currency in the labor market. 3 1 Pathways to Prosperity Project by Harvard Graduate School of Education, Feb. 2011 2 Ibid, pp. 20 3 Ibid, pp. 15 44 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-64 TRANSITIONAL AGED YOUTH VOCATIONAL TRAINING Two reports by the Organization for Economic Cooperation and Development and as noted in the Harvard Study provide "compelling evidence that a vocational education that integrates work and learning is a superior way to learn. The current system in the U.S. places far too much em- phasis on a single pathway to success: attending and graduating from a four-year college after completing an academic program of study in high school. Yet only 30% of young adults suc- cessfully complete this preferred pathway." Students who are bored and at risk of dropping out need to be engaged more effectively. Many of these are foster care youth who have been moved from home to home and school to school and in this chaotic process have had their education seriously disrupted; thus they have become disillusioned. They eventually drop out of school. According to DCFS senior Staff, the average foster youth has been placed eight times or more in a home by the age of 18. Each placement change contributes to being four to six months further behind in school. All students should have plentiful opportunities to participate in work-linked learning, ranging from job shadowing to in- ternships. Due to present economic conditions, many school programs have been cut back or eliminated, including vocational training. Some school programs still function on a scaled back schedule. The Grand Jury believes that vocational training at the high school level is extremely important and can be accomplished on a wide-spread basis. This training will have a positive impact on foster youth who may become unemployed, homeless or incarcerated. FINDINGS Challenger Probation Camp The Los Angeles County Probation Department's Challenger Memorial Youth Center in Lancas- ter is now utilizing a unique instruction method that appears to be extremely effective according to teachers and counselors who were interviewed by members of the Grand Jury. This method utilizes a video-guided step-by-step instructional approach in 20 areas in the construction trades. Each 10-day construction module begins with tool and material identification and an overview of the activity for the 10 days. The video then guides the students through the work and explains the best practices necessary to produce excellent results. Completion of this program provides the student with basic knowledge which may qualify the student for employment in the construc- tion trades. According to the teachers and counselors interviewed, students at the Challenger Center prefer the electrical, plumbing and tile-setting modules but there are 17 other courses of- fering the same basic approach using video. If this program is instituted on a wider basis at other locations, instructors and physical space must be provided according to Challenger Center staff. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 45 3-65 TRANSITIONAL AGED YOUTH VOCATIONAL TRAINING Alternative Education and Work Center LAUSD has developed the Alternative Education and Work Center (AEWC), which is a dropout recovery program administered by the LAUSD Division of Adult and Career Education for youth 16 to 18 years of age. The Grand Jury met with senior staff of the AEWC program and then visited with outreach consultants at several school locations. The mode of instruction is in- dependent study. Students must report to school one day each week to tum in homework and get assignments for the next week. Students can work towards a high school diploma or GED while employed or caring for children. AEWC consultants emphasized that it is very important that a parent, foster parent or guardian become involved in monitoring the necessary homework and maintaining contact with the in- structors.· This may be a concern ifthe foster parent works more than one job or lacks the neces- sary educational skills. Instructors strive to have the students complete the program to obtain a high school diploma or GED before the student loses interest in the program and drops out. The AEWC graduation rate is 20% to 40%. With many more high schools than AEWC locations, there are waiting lists at some locations. Some of the schools do not have occupational skills centers on site, requiring students to travel some distance to a skills center. All AEWC graduates must meet all district and state require- ments and pass the California High School Exit Exam. The outreach consultant at each site· is the contact for enrollment in AEWC. The following chart compiled by the Grand Jury lists the locations of the twenty six (26) AEWC schools and the phone number of each of the outreach consultants at each location. It is not meant to be exhaustive as other resources may exist. 46 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-66 N 0 _.. N I N 0 _.. w r 0 (/) )> z G'l m r m (/) () 0 c z ~ () < j= (j) ~ z 0 c.... c ~ :::0 m "U 0 ~ Los Angeles Unified School District AEWC)Altemative Education and Work Center , ,4.--MM-I I I I OUTREACH·· SCHOOL I ADDRESS CONSULTANT [TELEPHONE ABRAM FRIEDMAN OC I 1646 S. Olive St. B. Baylis Los Angeles BELMONT CAS -I 1510 Cambria St. I Sonia Arguelles BRANCH Los Angeles LOS ANGELES I 3721 West I Gerry Gomez TECHNOLOGY CENTER I Washington Blvd. EAST LOS ANGELES OC I 2100 Marengo St. I Dan Arrula Los Angeles EAST LOS ANGELES I 3921 Selig Place I Mac Velazquez SKILLS CENTER I Los Angeles SAN PEDRO I 920 West 36'" St. I Matt Matich SKILLS CENTER I Building 945 METROPOLITAN I 1018 Mohawk St. I Darin Gray SKILLS CENTER I Los Angeles NORTH VALLEY OC I 11450 Sharp Ave. I Vladimir Tigno PACO I MA SKILLS CENTER Mission Hills 8604 Arleta Ave. I Stephanie Sun Vallev 91352 I Angel-Gilliard VENICE SKILLS CENTER I 611 Fifth Avenue I Moises Gomez Venice 90291 MAXINE WATERS E.P.C I 10925 S Central I Dorthea Flenoil Avenue WESTVALLEY OC 6200 Winnetka I Michele Stiehl Av MANUAL -ARTS I 3741 Stocker St. Robert Mason (213) 765-2407 Fax(213l765-2408 (213 )483-0488 Fax(213}483-8727 (323)732-0153 Ext. 223 (213)223-1283 Ext. 132/136 (323)224-5970 Ext. 6221 {310)221-4651 Fax(310l221-4659 {213)353-5330 Fax(213l353-5338 {818)365-9645 Ext. 330/438 {818)759-5840 Ext. 5845 {310)664-5824 Fax(310l392-3461 {323)564-1431 Ext. 125 {818)346-3540 Ext 254 {323)292-7313 OUTREACH SCHOOL CONSULTANT I TELEPHONE GARFIELD BRANCH CAS-I 3l55 Michigan I Carlos Gabaldon I (323)729-1800 Avenue 323)223-8622 HOLLYWOOD CAS 5936 Santa Kathleen Petrini (323)871-8957 Monica Blvd. BRANCH Fax(323l871-8760 JEFFERESON CAS 2830 S.Central Av Joe Alvarez (323)235-6125 Los Angeles 323)233-9964 CAS 820 N Ave 54, Suzanne Limbird {323)982-6804 Bldg. 29 Fax(323l982-6805 HUNTINGTON PARK 2945 Belgrave Dan Reyes {323)826-2419 Huntington Park Fax(323l826-2426 CA5 1123W. 223'0 St. Barbara C. Milling {310)320-2419 Torrance 90502 VAN NUYS CAS 15810 Saticoy St. Ramon Alaniz {818)988-7297 BRANCH Lake Balboa GEORGE KIRIYAMA 18120 S Nor-Bryan Hunter {310)354-4966 mandie CAS-BRANCH Fax(310l354-4956 WESTCHESTER CA5 I 8701 Park Hill Dr. I Monica Medina {310)338-2510 Room S-15 Fax(310l338-2513 4328 Bell Ave. Alma Rubio (323)560-7198 BELL HIGH SCHOOL) I Bell 90201 ROOSEVELT CAS I 456 s. Mathews I Tony Manriquez (323)261-2837 Street 323)261-5275 18230 Kittridge Chris Petrini {818)758-8018 Street Ext. 8019 FREMONT-WASHING I 501East66"' St. Tracey Walker {323)758-7593 :!:j I CRENSHAW-CAS Room 110 Fax(323l292-0064 1'0:::\1 TON CAS BRANCH I Los Angeles I I Fax(323l758-8120 CAS-COMMUNITYADULTSCHOOL QC-OCCUPATIONAL CENTER (THIS LIST WAS COMPILED FROM DATA PROVIDED BY OUTREACH CONSULT- ANTS AT SOME AEWC SCHOOLS. IT IS NOT MEANT TO BE EXHAUSTIVE). 3-67 TRANSITIONAL AGED YOUTH VOCATIONAL TRAINING Y outhBuild Charter School of California Another very successful program the Grand Jury has identified is the Y outhBuild Charter School of California. The Grand Jury met with the founder of Y outhBuild California and his staff to evaluate the status of the Y outhBuild program. Y outhBuild USA was started in the Harlem sec- tion of New York in the 1960's for youth 16-24 years of age who had dropped out or aged out of high school and failed to obtain a high school diploma. The Y outhBuild program has since spread to several other states and is supported by Y outhBuild USA. Y outhBuild Charter School of California was started in 2008 with support from YouthBuild USA and now has 12 sites in Los Angeles County with three more planned over the next 12 months. As stated before, youth between the ages of 16-24 enroll at YouthBuild after having dropped out, aged out or otherwise failed to graduate in the traditional school system according to Y outhBuild staff. Unlike tradi- tional schools that employ standardized curriculum and classroom practices which can often dis- courage and alienate marginalized students, YouthBuild's project-based approach allows young adults to take ownership of their education by pursuing meaningful academic and professional studies. An interesting and effective technique employed by the schools is a code of conduct which stresses respect, responsibility, equal treatment for all and the importance of timeliness. Some schools require a simple uniform (which may be provided by the school). Most of the schools have a drug testing program to promote safety while working with tools. Both male and female students participate in this program which generally takes 6 to 24 months for a student to graduate with a high school diploma. YouthBuild staff state the graduation rate for students who complete the program is approximately 85%. While being exposed to the vari- ous construction trades, the students also take traditional high school courses such as English, math, science, social science and technology (computers and related areas). In addition to class- room work and the training in the construction trades, students also work with independent con- tractors such as Habitat for Humanity, They are constructing and remodeling buildings for low income housing. The value of this program is that it enables youth 16 to 24 years of age to obtain their high school diploma and learn vocational skills. This may be the last chance for their success. The program also extends past the age of 24, if the student is enrolled by the age of 24 and working towards a diploma. The Grand Jury believes that this approach would be very beneficial for foster youth who are at risk of future failure. The following chart lists some of the vocational training classes offered at all 12 Los Angeles County Y outhBuild high schools. This dual track approach allows students to study traditional high school courses such as English, math, science and technology while at the same time learn- ing vocational skills that could lead to employment. The chart was compiled by the Grand Jury from information provided by YouthBuild staff. It is not meant to by exhaustive as other re- sources may be available. 48 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-68 N 0 ...... N I N 0 ...... (>) r 0 en )> z Gl m r m en () 0 c z ~ () ~ r G) ~ z 0 t.. c ~ ;a m "'U 0 ~ .j::.. co Y OUTHBUILD CHARTER SCHOOL OF CALIFORNIA School Address Phone Academic Counselim:i/Life Skills Vocational Skills Off Site Work c 0 :;::: c ca E 0 ... :;::: .E ·;: :; .E ~ iii ... ;; .a iii :; Q) 0 :c c .... U) ~ c "tJ Q) Q) ~ U) ;a: ca E U) Q) Cl. (J Q) :I -~ Cl. .... -= Cl ..c: .0 ~ c 'E ca .... <( Q) Q) U) c iii .... E 0 0 Q) c Q) c :c !fi 0 ca Q) (J 1i Q) 0 == :c c P! (J I-:I 0 :§ ca E ca ca ... ... ..- lii 1ii :I 0 ii: Q) 1ii .;, Cl c .0 U) ..c: .0 ~ c ..c: c Q) :I Q) (J 0 0 0 U) <( == (/) a: (/) ..., 11. 0 0 c .!!!. ~ Cl Q) c o ca (J ·c: ·;; +:: "i: -~ ca :I ca Ql iii E 0 (J .... Q) > Ii: ca :I :c ·-·== "tJ >. (/) 0 c t:: U) ;a: Cl ~ E 0 :c Q) Cl Q) :I ... Q) ~ ... E .E f Q) ·c: 0 0 0 c ~ 0:: ... 0 a; :!: "E w Cl :I :I .... (J "tJ ii: c ca E re ~ ca c ~ JS ~ ... !?! c U) .... -0 ca E c :c ~ E 0 :; ca 0 ca 11. :I 0 ... 0 ca 0 Q) u.. :c 0 (/) z 0 0 (!) 0 :c .J 0:: Antelope 37230 37'" St. E Valley Palmdale, CA Youth Build 661 266-8900 I . x x1x1x1xrxrxrx . xlxlJCIX x x XI IXIX ~ xxx Boyle Height 202 N Saratoga Youth Build St. Los Angeles 323-261-2800 I I IX XIXIXFXtXIX 310-631-2000 xxxxx 310-230-5574 . . . . .. XX){X)(XXXXXX Y.E.S. I 357 E Palmer St. Youth Build Compton Compassion 2614 Crenshaw Care Blvd. Los Ange- Youth Build les .. 11*1 I IX 1·1x1x1x X X x ·•·X• dX X x x x x x x iX ))( .· x x x LACAUSA 5400 E. Olympic Youth Build Blvd. Los Ange- les 323-887-2500 XIX ---. -310-225-3060 ..... : ....... •: _ •. ·.•:: :·: ·>··: : •··.· >•.::: :•.:· ·.• xxxxxxxxxxxxxxx CCOE 5021 Lennox Bl. Youth Build Lennox XIXIXIX long Beach 690 North Stu YouthBuild debaker Rd. long Beach Field of 15014 Dreams Studebaker Rd. YouthBuild Norwalk 562-431-0203 562-409-5567 x1xlxlxlxFx1x1x1x1x1x }{lxt¥l~l~l~I xi xi xi xi xi xl~l~lxf xlxlxrxF'.~2 XIXIXIXIXIX xl)<J·••·•••:•••••· x San Fer-11076 Norris Av. nan do Pacoima YouthBuild San Gabriel 3903 N Tyler Av. Conservation El Monte Coros. Slauson 1512 W Slauson Home Sweet Ave.Los Angeles Home CRCD 400 W Washing- Academy ton Bl Los Angeles 818-794-5700 626-444-5337 323-750-7035 213-763-5562 XIX X[XIX XI xi xlxf ij XI X XIXIXIXIXIX XLXIXIXIXIXIXIXIXIXIXIXIXIXlX ~11: IX IXIXIXI IXIX xlJ lxl 1:IXIXIXIXIX XLXIXIXIXIXIXIXIXIXIXIXIXIXlXIX XIXIXIXIX THIS CHART LISTS VOCATIONAL TRAINING FOR YOUTH, AGE 16-24, AS OF 2-1-13. CONTACT SCHOOL FOR ENROLLMENT AND OTHER CLASSES OFFERED. THIS CHART WAS COMPILED BY THE GRAND JURY FROM INFORMATION PROVIDED BY YOUTHBUILD STAFF. ( OTHER RESOURCES MAY BE AVAILABLE) 3-69 TRANSITIONAL AGED YOUTH VOCATIONAL TRAINING Los Angeles Conservation Corps The Grand Jury learned the following information from a meeting with senior staff of the LA Conservation Corps (CORPS) and from CORPS brochures. CORPS has provided classes, ser- vice projects and work experience for more than 20,000 young people since 1986. Youth from 13 to 24 years of age participate in four major programs consisting of a Young Adults Corps, a Clean and Green Division (provides paid training to thousands of middle and high school stu- dents across greater Los Angeles who engage in community beautification activities during their school vacations and over the weekends). CORPS also has an After School Program and a SEA Lab Conservation program. CORPS teaches young people from 16 to 24 years of age to set and achieve academic goals through the CORPS' Charter High Schools. CORPS has been successful as a job training and placement agency and at the same time provid- ing year-around charter high schools operating in Pico-Union and Watts serving students who had previously dropped out or been removed from their local high schools. CORPS over the past 20 years has planted over 50,000 trees, removed 10 million sq. ft. of graf- fiti, cleaned 400 blighted alleys, built 25 playgrounds for inner-city children, rescued 10,000 ma- rine animals at its SEA Lab in Redondo Beach, restored 900 acres of natural habitat, painted beautification murals and taught 15,000 school children about recycling. Young people are paid as they work on these types of projects and gain work experience and at- tend academic classes. With many projects CORPS itself acts as the general contractor. The CORPS maintains the SEA Lab in Redondo Beach to enable out-of-work youth to gain work skills and learn about the beach and ocean environments. Students at this facility restored a three acre bluff in Redondo Beach, planted more than 7,000 urban street trees, restored native vegeta- tion and coordinated beach clean-up events. At present approximately 400 young adults work at the CORPS' school sites and they currently have a waiting list. REQUIRED RESPONSES Recommendation Responding Agency 6.1, 6.2, 6.3, 6.4 Los Angeles County Department of Children and Family Services 6.5, 6.6 Los Angeles Unified School District 50 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-70 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES COMMITTEE MEMBERS Mel Widawski -Chair James Bradford David Dahl Charles Dolcey Albert Handschumacher Ung Yol Yu Gilbert Zeal John Zehrung 3-71 7. BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES EXECUTIVE SUMMARY The Los Angeles County Civil Grand Jury (Grand Jury) investigated the request and complaint procedures of the Los Angeles County Board of Supervisors District offices. In order to do this, the Grand Jury interviewed staff in each of the Supervisors' main offices and a sample of their field offices. The Grand Jury also requested monthly data on the method of contact. This report aims to present information to constituents on how best to obtain help from the Board of Supervisors and their respective district offices. Constituent requests and complaints may be submitted by phone, letter, email, web form, walk-in, fax, etc. The Board of Supervisor's website (http://bo:'S.co.la.ca.usD contains contact information for Supervisorial offices. That information has been compiled and presented in the body of this report. Through interviews with staff members of each office, those directly involved with aiding con- stituents seem to be knowledgeable and dedicated. RECOMMENDATIONS 7 .1 The offices of the Supervisors of the Second, Third, Fourth, and Fifth Districts of the Los Angeles County Board of Supervisors should modify their "web contact forms" to re- peat the entire contents when submitted (see Finding 5). This is done on the "web contact form" of the First District. Currently, the other districts just acknowledge submission, but the First District provides a printable copy of everything entered into the form. This allows the constituent to verify and save a copy of the request. 7 .2 The offices of each of the Supervisors should continue to ensure that their staffs have up to date computers so the staffs can adequately use the Constituent Relationship Management system (CRM). 1 7 .3 The offices of all the Supervisors should have staff representatives meet twice a year to share information on resources available for answering constituent requests. The districts would benefit from sharing process and procedures, and discussing use of CRM. 7.4 The office of the Fourth Supervisorial District should enter all requests requiring follow- up into the CRM system. Logging requests should not be restricted to those submitted through letters; but include requests through email, web contact form, fax, personal contact, and phone. 1 Microsoft Dynamics® CRM 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 51 3-72 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES METHODOLOGY The Grand Jury obtained information through the following: • Contacted the offices of each supervisorial district initially through their website contact forms; • Contacted those offices that did not respond to their website contact forms by a follow-up letter; • Met with office staff of each district's Hall of Administration office; • Met with office staff at a field office for each district; · • Met with staff of the Executive Office of the Board of Supervisors including staff of the Information Resource Management group (the computer support group); • Tested aspects of each district's website; • Reviewed requested data on the frequency of complaints and requests for each district. BACKGROUND The Los Angeles County Board of Supervisors (BOS) is a unique body that has tremendous power. Quoting the Board of Supervisors website 2 : The Board of Supervisors fulfills three major powers in County government: ex- ecutive, legislative and quasijudicial. In an executive capacity, the responsibilities of a county supervisor to constitu- ents who reside in unincorporated areas are similar to those of a mayor of an in- corporated city. The supervisor is required to administer all local governmental services. In its legislative role, the Board may adopt ordinances and rules, both to control the administration of County government and to regulate public conduct within the unincorporated areas of the County. Acting in a quasijudicial capacity, the Board acts as an appeals board on zone exception cases of the Regional Planning Commission. It sits for hearings on county improvement districts and on appeals in licensing matters. Each Supervisor's Office helps constituents deal with county departments.3 The Grand Jury re- viewed the complaint and request procedures of each Supervisor's Office, and presents the find- ings here. This report may help the public use this valuable resource. There are a variety of ways to contact each Supervisor's Office: phone, letter, and email/web. Letters are taken very seriously by the offices. Each district has a "Web Contact Form" on its website for short requests. 2 The Board of Supervisors Website (http:// ceo .lacounty .gov /forms/03 %20 Respon%20of0/o20 Brd. pd!). 3 Other state administrative and/or judicial remedies may be available. 52 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-73 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES The following contact information is presented to aid the constituents of each district in making better use of this valuable resource. First Supervisorial District: Gloria Molina Offices -The First District has two field offices. Mail should be addressed to the Hall of Admini- stration office. The following information is available on the district's website under Contact Us. Hall of Administration Office 856 Kenneth Hahn Hall of Administration 500 West Temple Street Los Angeles, CA 90012 Phone: (213) 974-4111 Fax: (213),613-1739 East Los Angeles Field Office 4801 East Third Street Los Angeles, CA 90022 Phone: (323) 881-4601 Fax: (323) 887-7286 Email -molina@bos.Iacounty.gov Website-http://molina.lacounty.gov/ El Monte Field Office 3400 Aerojet A venue, Suite 240 El Monte, CA 91731 Phone: (626) 350-4500 Fax: (626) 448-1573 Web Contact Form -It is available on the Contact Us page at the First District website. Fill in the requested information and click on the Submit button. The complete request will appear on a web page. Second Supervisorial District: Mark Ridley-Thomas Offices -The Second District has two field offices. Mail should be addressed to the Hall of Ad- ministration office. The following information is available on the district's website under Con- tact Us. Downtown Kenneth Hahn Hall of Admin. Rm. 866 500 W. Temple Street Los Angeles, CA 90012 (213) 974-2222 Exposition Park Administrative Offices East 700 Exposition Park Drive Los Angeles, CA 90037 (213) 741-9292 Email -seconddistrict@bos.lacounty.gov Website-http://ridley-thomas.lacounty.gov/ Florence-Firestone 7807 S. Compton Ave., Rm.200 Los Angeles, CA 90001 (213) 974-1645 Web Contact Form -It is available on the Ask the Supeniisor page at the Second District web- site. This is accessed through the Contact pull-down menu. Fill in the requested information, click on the Submit button, and "Your message was sent successfully" will be displayed on the web page. Third Supervisorial District: Zev Yaroslavsky 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 53 3-74 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES Offices -The Third District has two field offices. Mail should be addressed to the Hall of Ad- ministration office. The following information is available on the district's website under Con- tact Us and Our Offices. Downtown Office Kenneth Hahn Hall of Admin. Rm. 821 500 West Temple Street Los Angeles, CA 90012 Tel (213) 974-3333 Fax (213) 625-7360 Email -zev@bos.lacounty.gov Van Nuys District Office 14340 Sylvan Street, Suite A Van Nuys, CA 91401 Tel (818) 901-3831 Fax (818) 997-8196 Website-;--http://zev.lacounty.gov/ Calabasas District Office 26600 Agoura Rd. Suite 100 Calabasas, CA 91302 Tel (818) 880-9416 Fax (818) 880-9346 Web Contact Form -It is available on the Ask Zev page at the Third District website. This is accessed through the Contact Us pull-down menu. Fill in the requested information, click on the Send button, and "Your message was sent successfully. Thanks" will be displayed on the web page. Fourth Supervisorial District: Don Knabe Offices -The Fourth District has seven field offices. Mail should be addressed to the Hall of Administration office. The following information is available on the district's website under Contact and Meet the Staff. Downtown office Kenneth Hahn Hall of Admin. Suite 822 500 West Temple Street Los Angeles, CA 90012 Tel: 213-974-4444 Fax:213-626-6941 San Pedro Field Office 505 South Centre St. San Pedro, CA 90731 (310) 519-6021 Fax: (310) 732-7927 Torrance Field Office 825 Maple Ave. Torrance, CA 90503 (310) 222-3015 Email -don@bos.lacounty.gov Website-http://knabe.com/ 54 Rowland Heights Field Office 1199 S. Fairway Dr. Suite 111 Rowland Heights, CA 91789 (909) 594-6561 Fax: (909) 594-1621 Norwalk Field Office 12720 Norwalk Blvd. Room 704 Norwalk, CA 90650 (562) 807-7350 Downey Field Office 7500 E. Imperial Hwy Room 104 Downey, CA 90242 (562) 803-7087 Long Beach/ Signal Hill Field Office 1401 E. Willow St. Signal Hill, CA 90755 (562) 256-1920 Fax: (562) 490-0549 Bellflower Field Office 10025 E. Flower Street Bellflower, CA 90706 (562) 804-8208 Fax: (562) 804-2746 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-75 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES Web Contact Form -It is available on the Ask Don page at the Fourth District website. This is accessed through the Contact pull-down menu. Fill in the requested information, click on the Send button, and "Your question was sent successfully. Thanks" will be displayed on the web page. Fifth Supervisorial District: Michael D. Antonovich Offices -The Fifth District has five field offices. Mail should be addressed to the Hall of Ad- ministration office. The following information is available on the district's website under Con- tact and Office Locations. Downtown Office 500 West Temple Street, Room 869 Los Angeles, CA 90012 (213) 974-5555 (213) 974-1010 FAX San Gabriel Valley 615 East Foothill Blvd., Suite A San Dimas, CA 91773 (909) 394-2264 Antelope Valley 1113 W. Avenue M-4, Suite A Palmdale, CA 93551 (661) 726-3600 Santa Clarita Valley 27441 Tourney Road, Suite 180 Santa Clarita, CA 91355 (661) 287-3657 Email -FifthDistrict@lacbos.org Website -http://antonovich.com/ Pasadena 215 N. Marengo Ave., Suite 120 Pasadena, CA 91101 (626) 356-5407 San Fernando Valley 21943 Plummer Street Chatsworth, CA 91311 (818) 993-5170 Web Contact Form -It is available on the E-mail page at the Fifth District website. This is ac- cessed through the Contact pull-down menu. Fill in the requested information, click on the Send button, and "Your question was sent successfully" will be displayed on the web page. FINDINGS 1 . The office of each Supervisor helps constituents in dealing with Los Angeles County de- partments. The Grand Jury interviewed staff members in each office. Those directly involved with aiding constituents appear to be knowledgeable and dedicated. 2. Each supervisorial office enters complaints and requests into the Constituent Relationship Management system (CRM). Routinely, all correspondence regarding the case is recorded in this system. Thus anyone in the office has easy access to the information and can continue processing the case. When a conclusion is reached, that information is entered into the sys- tem. This allows generation of a report listing cases that have been open too long. A disad- vantage of the system is that it can be cumbersome. Requests not requiring follow-up are of- ten not recorded. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 55 3-76 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES 3. There are a variety of ways to contact a Supervisor's office: phone, letter, and email/web. Some of the other methods of making requests or complaints are fax, walk-in, board meeting, and at a community meeting. Letters are the best way to contact the Fourth and Fifth Dis- tricts. For information on the frequency of contacts through each source see Table 1 below. Table 1 Source of Contact bv Supervisorial District (Oct 2011-Sept 2012) Source District 1 District 2 District 3 District 4 District 5 Total Phone 1106 739 702 384 2931 Letter 76 249 148 *281 858 1612 Email/Web 331 483 133 1170 2117 Other 227 170 25 79 501 Total 1740 1641 1008 *281 2491 7161 *The Fourth District office provided CRM data only for requests submitted through letters. These tables were produced from data furnished by each District using the CRM system. The tables of the submitted data are in Exhibits 1-5. Exhibit 6 contains two tables submitted by the Fourth District. With the exception of actual data for letters received and entered into CRM, all other "data" are estimates which are vastly out of range from the CRM data pro- vided by the other offices. Through communication by a staff member of the Fourth District the Grand Jury learned that only information received by letter was available in CRM. 4. Another way of looking at the contacts is monthly, as in the table below. A quick review in- dicates no apparent seasonal trends. T bl 2 C t b M th4 a e ontac s >Y on 2011 2012 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug District 1 169 165 121 113 131 116 166 187 173 152 158 District 2 66 99 105 144 132 140 156 167 163 138 151 District 3 60 51 65 101 102 95 96 94 117 97 58 District 4* 33 11 17 30 13 46 24 21 26 25 27 District 5 283 213 189 179 231 186 198 173 138 187 260 Total 611 539 497 567 609 583 640 642 617 599 654 * Fourth District-Office provided CRM data only for requests submitted through letters. * * Fifth District-September data was collected in 2011. Sep Total 89 1740 180 1641 72 1008 8 281 **254 2491 603 7161 In interpreting the above tables, note that only requests requiring follow-up are entered into CRM. Requests that can be satisfied immediately are usually hot recorded. Phone requests are routinely under-reported. District data may differ because of these reporting issues as well as demographics and geography. 4 Each Supervisorial District Office furnished data for these tables in response to a Grand Jury request. 56 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-77 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES 5. All of the Supervisorial districts have web contact forms on their websites. The Grand Jury was particularly impressed with the First District's web form, which repeated the entire re- quest on submission. This allows the constituents to review their request and save it for their records. Figure 1 Sample Web Contact Form Or questions, comments. and requests for assistance may be sent to SupeMsor Mol!na by <i-maU or using the constituent assistance request orrnoeiow. Last Name: City: State: Zip Code: Telephone xplain your rnquest for assistan<::e (please be brief, but specific): co :rhow the fee;t:.ure repea:c the request:. on submission. Ji.ppoliqie.s if this cau.ses you any inconvenience. Reset Constituent Assistance Request Form. J Clear J Figure 2 First District response when form is submitted. Thank You The following has been submitted: Last Name: First Name: Organization: EMall Address: Malling Address: City: State: Zip Code: Telephone Number: FAX Number: Comments: Doe John Jdoe@site.com 1054 N. Townsend Ave East Los Angeles CA 90063 2133641010 Please disregard this message. It is being created to document your web contact form to show the feature where you repeat the request on submission. Appoligies if this causes you any inconvenience @Intetnet 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT .Y._'. 57 3-78 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES 6. To maximize the use of the Supervisor's office for requests, a constituent should: a. Determine ifthe problem is with a County department. b. If it is difficult to determine who to contact and the constituent suspects that the ap- propriate agency is a county department, the office of the supervisor is a good re- source to help you determine who to contact. c. Contact the appropriate county department and attempt to resolve the problem with them first. d. If the problem has still not been resolved the constituent can contact the office of the their supervisor for help. Responses are required from: Recommendation Responding Agencies 7.2, 7.3 Office of the Supervisor of the 1st District 7.1, 7.2, 7.3 Office of the Supervisor of the 2°d District 7.1, 7.2, 7.3 Office of the Supervisor of the 3rd District 7.1, 7.2, 7.3, 7.4 Office of the Supervisor of the 4th District 7.1, 7.2, 7.3 Office of the Supervisor of the 5th District 58 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-79 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES EXHIBIT 1 First District Data Furnished: Source of Contact by Month First District 2012 2011 Source Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Web/Email 15 23 31 25 38 38 32 33 14 41 22 19 Phone 67 73 63 109 101 115 96 112 66 101 115 88 Fax 1 1 0 0 1 1 1 0 1 0 0 0 Letter 8 8 2 6 7 9 10 4 0 7 11 4 Comm Mtg 1 0 0 1 3 2 2 0 2 1 0 1 Walk-ins 21 26 20 25 37 8 11 9 6 19 17 9 Total 113 131 116 166 187 173 152 158 89 169 165 121 EXHIBIT 2 ~econd District Data Furnished: Source of Contact by Month Second District 2012 2011 Total 331 1106 6 76 13 208 1740 Source Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Total Phone 58 53 56 78 83 80 69 75 79 26 40 42 739 Letter 22 20 21 31 21 24 19 23 31 7 15 15 249 Email 36 33 35 21 24 20 21 25 37 17 25 27 321 Web 15 15 18 10 14 16 11 13 19 10 10 11 162 Other 13 11 10 16 25 23 18 15 14 6 9 10 170 total 144 132 140 156 167 163 138 151 180 66 99 105 1641 EXHIBIT 3 Third District Data Furnished: Source of Contact by Month Third District 2011 2012 Source Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Total Phone 30 31 41 77 77 55 65 68 90 74 40 54 702 Letter 21 9 14 12 9 18 15 16 6 8 9 11 148 Email 8 10 10 11 12 18 13 8 17 14 7 5 133 Walk-In 1 1 0 0 1 3 2 2 2 0 1 2 15 Fax 0 0 0 0 3 1 1 0 2 1 1 0 9 Board Mtg 0 0 0 1 0 0 0 0 0 0 0 0 1 Total 60 51 65 101 102 95 96 94 117 97 58 72 1008 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 59 3-80 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES EXHIBIT 4 CRM Data Portion of Submission from District 4 2011 2012 Source Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Total Phone Letter 33 11 17 30 13 46 24 21 26 25 27 8 281 Email Walk-In Fax Board Mtg Total 33 11 17 30 13 46 24 21 26 25 27 8 281 See exhibit 6 for full submission as received from the Fourth District EXHIBIT 5 Fifth District Data Furnished: Source of Contact by Month Fifth District 2011 2012 Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Total Email 121 144 93 74 82 94 85 109 78 49 106 132 1167 Letter 72 92 82 80 60 95 65 68 58 60 52 74 858 Phone 56 29 30 29 30 36 33 16 30 26 21 48 384 Fax 4 12 3 2 5 0 0 5 2 2 3 0 38 Walk-In 1 5 5 2 2 1 1 0 4 1 2 5 29 FYI 0 1 0 0 0 1 1 0 0 0 1 1 5 Board Mtg 0 0 0 0 0 2 0 0 0 0 1 0 3 Web 0 0 0 0 0 2 0 0 0 0 1 0 3 Comm Mtg 0 0 0 2 0 0 1 0 1 0 0 0 4 Total/Month 254 283 213 189 179 231 186 198 173 138 187 260 2491 60 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-81 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES EXHIBIT 6 Fourth District Constituent Communication 2012 -(Estimated) anuary-e1l em er J s t b 2012 4th District Communications Januarv Februarv March Anril Mav June Julv Ammst 30 13 46 24 2J 26 25 27 CRM/ CRM/ CRM/ CRM/ CRM/ CRM/ CRM/ CRM/ Letters5 85 J05 JJ5 JJO JlO 90 90 90 E-mails/W eb 75 75 JOO JOO JOO JOO 90 90 Phone Calls Downtown 350 500 500 500 500 500 350 350 Rowland Heights/ Hacienda Heights Field Office 75 75 80 80 80 80 80 80 Long Beach/ Signal Hill Field Office 275 300 350 350 350 350 275 275 Torrance Field Office 60 50 70 70 70 60 60 70 San Pedro Field Office 50 50 50 50 50 50 50 50 Norwalk Field Office 45 65 65 65 65 45 45 40 Bellflower Field Office 35 45 45 45 45 35 35 35 Total Estimated Number of Con- stituent Com- munication Fourth District Constituent Communication 2011 -(Estimated) October -December 2011 4th District Communications October November December Total 33 CRM/ II CRM/ J7CRM/ Letters5 80 80 75 235 E-mails/W ebsite 110 JJO 90 3JO Phone Calls Downtown 500 500 300 J,300 Rowland Heights/Hacienda Heights Field Office 80 75 60 2J5 Long Beach/Signal Hill Field Office 350 300 250 900 Torrance Field Office 70 65 50 J85 San Pedro Field Office 50 65 50 165 Norwalk Field Office 60 60 45 165 Bellflower Field Office 45 60 45 J50 5 The total of the letters in CRM is 281 (first number in each letter cell for both tables). All other numbers are estimates provided by the Fourth district 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT Septem- her Total 8 CRM/ 90 885 JOO 830 350 3,900 80 710 350 2,875 70 580 50 450 60 495 35 355 11 075 61 3-82 BOARD OF SUPERVISORS REQUEST AND COMPLAINT PROCEDURES Total Estimated Number of Constituent Communication LIST OF ACRONYMS BOS Los Angeles County Board of Supervisor's CRM Constituent Relationship Management system (Microsoft Dynamics® CRM) 62 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-83 LOS ANGELES FIRE DEPARTMENT RESPONSE TIME LAG COMMITTEE MEMBERS Jacqueline Brown -Co-Chair Richard Huber -Co-Chair Thomas Scheerer -Co-Chair James Bradford Marie Louise Gutierrez John Zehrung 3-84 8. LOS ANGELES FIRE DEPARTMENT RESPONSE TIME LAG EXECUTIVE SUMMARY Several negative articles in various Los Angeles area newspapers regarding poor response time to 9-1-1 medical emergency calls within the City of Los Angeles prompted this investigation 1 • A committee of the Los Angeles County Civil Grand Jury (Grand Jury) found that response times in the Los Angeles Fire Department (LAFD) began to increase when its budget was decreased. The Grand Jury believes that the Los Angeles City Council may have relied on inaccurate response time data2 in making its budget reduction decision. The Grand Jury also found that LAFD does not utilize its resources to its best advantage. To be specific, the Grand Jury urges that LAFD's funding be restored, that its engine companies be reinstated, it incorpo- rate civilian call handlers, use a non-proprietary Emergency Medical Dispatch protocol and up- date technical equipment. RECOMMENDATIONS 8.1 The City of Los Angeles should reinstate the funding to the LAFD that was cut in 2008.3 While the Grand Jury acknowledges and commends the Los Angeles City Council for restor- ing some funding to LAFD, additional funding is crucial to place back into service the multi- ple engine companies' ambulances idled by previous budget cuts. 8.2 LAFD should incorporate civilians as call handlers in its dispatch center. LAFD has traditionally used sworn firefighters to answer 9-1-1 calls. Other local emergency response departments use civilian call handlers with no apparent decline in service. This would provide economic savings and allow sworn personnel to return to active emergency service. 8.3 LAFD should use a customizable Emergency Medical Dispatch Protocol to allow for call handler flexibility in responding to 9-1-1 calls. 8.4 LAFD must update the technical equipment in its vehicles and dispatch center as outlined in the November 2012 report from the task force on Information and Data Analysis (IDA). Technical innovations are also needed to reduce response times for the LAFD, such as the new Smart911 4 system that has been implemented in other fire agencies. 1 http://www.latimes.com/news/local/la-me-1205-lafd-chief-20121205,0,3100712.story 2http://www.firehouse.com/news/10654628/lafd-officials-admit-to-exaggerating-response-stats 3 LA Times dated December 4, 2012 4 http://www.latimes.com/search/ dispatcher.front?Query=Smart9 l l &target=adv _all 2012-2013 Los ANGELES COUNTY CIVIL GRAND JuRY REPORT 63 3-85 Los ANGELES FIRE DEPARTMENT RESPONSE TIME LAG METHODOLOGY The Grand Jury's Fire Dispatch Committee visited four different fire department emergency centers: Los Angeles Fire Department (LAFD), Los Angeles County Fire Department (LACFD), Verdugo Fire Communications Center (VFCC), which serves thirteen separate fire agencies, and Long Beach Fire Department (LBFD). The Grand Jury also obtained response time data from these four agencies and the National Fire Protection Association (NFPA) standards for emergency medical response times, and attended a meeting of the Los Angeles City Council which focused on the LAFD's response times. The Grand Jury also interviewed senior members of each of the above four agencies as well as a senior leader of the union representing Los Angeles City firefighters. In addition the Grand Jury interviewed many call handlers and observed their work in "real time". BACKGROUND Committee members met with senior leaders in the four largest fire departments/agencies in Los Angeles County and discussed their operations and response times. Each department or agency reports response times differently but they have been simplified in the comparison chart below. Grand Jury members were also given a tour of their respective dispatch centers. 1. Los Angeles Fire Department: a. Sworn fire fighters are trained as call handlers and rotated through the dispatch center. A call handler's shift is fifty-six hours; they sleep on site so as to be immediately available should there be an unusual spike in calls, such as during a major disaster. b. The Emergency Medical Dispatch Protocol to guide the dispatcher is available both in hard copy and on the computer. This script is proprietary and modification or deviation from it is not permitted. c. Medical emergency calls are prioritized to determine whether to send an Advanced Life Support (ALS) or Basic Life Support (BLS) unit. d. LAFD transports patients as needed to a medical facility. 2. Verdugo Fire Communications Center: a. b. c. 64 Civilians are trained as call handlers and work a twelve hour shift. The Emergency Medical Dispatch Protocol to guide the dispatcher is both in hard copy and on the computer. This script is customized by the medical staff, with input from call handlers. Medical emergency calls are prioritized to determine whether to send an ALS or BLS unit. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-86 Los ANGELES FIRE DEPARTMENT RESPONSE TIME LAG d. Agencies affiliated with VFCC transport patients to a medical facility either with agency ambulances or by private contractors. 3. Los Angeles County Fire Department: a. Civilians are trained as call handlers and work a twelve hour shift. b. The Emergency Medical Dispatch Protocol to guide the call handler is both in hard copy and on the computer. This script is customized by the medical staff, with input from call handlers. c. As soon as a call is determined to be a medical emergency, it is dispatched. The caller is advised that units are en route and the dispatcher stays on line to assist as needed. Any update to the call is sent to the responding unit's terminal. d. LACFD transports patients to a medical facility through private contractors. 4. Long Beach Fire Department: a. Civilians are trained as call handlers and work a twelve hour shift. b. The Emergency Medical Dispatch Protocol is on hard copy only. This script is customized by the medical staff with input from call handlers. c. Medical emergency calls are prioritized to determine whether to send an ALS or BLS unit. d. LBFD transports patients as needed to a medical facility. The following response time chart created by the Grand Jury, shows the various agencies. It is noted that LAFD response time is six minutes, 47 seconds (6:47), which is one minute, 25 seconds (1 :25) to 28 seconds (:28) slower than the other agencies. LAFD* VFCC** LACFD*** LBFD NFPA Time Out 1:42 :56 1 :19 1:00 1:00 Travel Time 5:05 4:26 4:46 5:19 5:00 Total Time 6:47 5:22 6:05 6:19 6:00 Time Out: From call received to dispatch of equipment. Travel Time: From dispatch to arrival on site. This includes turn-out time i.e. the time needed for firefighters to dress and get equipment rolling. Total Time: Time from call being answered to equipment arriving on site. Times above are averages. Agencies leave out times that are far outside the norm (outliers). *Times based on Task Force IDA, dated 11/2/2012 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 65 3-87 Los ANGELES FIRE DEPARTMENT RESPONSE TIME LAG **VFCC times shown are an average of all the thirteen affiliated agencies. Verdugo Fire has a "seamless" or "no borders" operation for fire and is working on a similar operation for medical responses. ***LACFD times shown are for urban response FINDINGS The Grand Jury found that the LAFD's response time, as shown by the chart on the previous page, is noticeably longer than the other agencies reviewed by the Grand Jury. The following factors, which apply to all fire agencies, hamper response times: 1 . All 9-1-1 calls go to the primary Public Safety Answering Point (PSAP), which is the local police agency (per state regulations), with the fire department being secondary. The primary PSAP· must transfer a fire/medical call to the secondary PSAP within thirty seconds (per NFPA guidelines). The primary dispatcher remains on the line to ensure that the call is transferred and that no police involvement is required. 2. Language can be a major factor as there are up to one hundred different languages or dialects spoken in LA County. According to all four fire agencies, an interpreter may have to be brought on the line to assist. 3. Cell phones, unlike hard-wired home or business phones, do not give an exact address, which is a critical piece of information needed before dispatching a unit. Newer cell phones, equipped with GPS, can now be triangulated to give an approximate location. In the past all cell phone calls went to the California Highway Patrol (CHP); now with more modem tech- nology, 9-1-1 calls go to the nearest 9-1-1 call center. The CHP should still receive calls if the caller is on a freeway, in close proximity to a freeway or the cell phone, for whatever reason, cannot be accurately triangulated. 4. The caller's state of mind, possibly being in a state of hysteria, could hamper getting needed information. The human factor always plays a part, even something as simple as the caller being unsure as to his whereabouts or being able to give an accurate description of the situation. 5. A principal factor that produces poor response time is the on-going problem of budget cuts.5 Geography can also affect response time. Calls from hilly communities with narrow roads make it difficult for fire equipment to maneuver. If a caller lives in a relatively isolated loca- tion, response time is certain to be greater. 5 http://articles.latimes.com/2012/dec/04/local/la-me-1205-lafd-chief-20121205 66 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-88 Los ANGELES FIRE DEPARTMENT RESPONSE TIME LAG FINDINGS continued Funding: Of the above factors, the most crucial and the most obvious impediment to adequate response times is the budget issue. Once funding of the LAFD was reduced, based in part on faulty or outdated data, response times began to rise. Additionally, thirteen ambulances were idled. It is a given that fewer resources would lead directly to increased response time. The Grand Jury strongly recommends that previous LAFD budget cuts be fully restored. The Grand Jury recognizes that the LAFD is currently planning a different, yet controversial solution. 6 Civilian Call Handlers: The Grand Jury was impressed with the use by other large agencies in Los Angeles County of civilians to handle incoming 9-1-1 calls. LAFD has for many years used sworn firefighter personnel for such duty. The Grand Jury recommends that this change. Fire- fighters should be fighting fires and responding to medical emergencies, not answering phone calls. Moreover, the skill set needed to obtain information from a 9-1-1 caller is not the same skill set as fighting a fire or giving emergency care. The Grand Jury believes it is a better practice to have trained civilians perform call handling functions. This would eliminate the need to rotate firefighters into the Dispatch Center. Further, call handlers should be given a dispatch protocol to follow so that the necessary information is gathered, but that protocol should not be a handicap. Dispatch call handlers should have flexibility in dealing with callers and should not be subject to discipline for deviating from a dispatch protocol. Technology: Improvements are needed in the technology used by the LAFD. These are mentioned in detail by the Task Force that the LAFD commissioned in June of2012. The Grand Jury learned from several fire officials that the Computer Assisted Dispatch (CAD) is thirty years old. Hardware and software must be brought up to current technology levels. This technology could include software like Smart9 l 1. The Smart9 l l system is designed to create a safety profile for the household, such as medical conditions, mobility, etc. This profile would appear on the call handler's screen, which could expedite response time by avoiding the need to ask certain questions. Response Time Reports: Reports should be easy to read and understand. The Grand Jury was given response times reports in various formats, some of which were confusing. The Grand Jury believes the general public would benefit by having these response times presented in a simplified form, similar to the above chart. 6 Los Angeles Times dated April 17, 2013 LAFD to shift staff to medical calls 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 67 3-89 Los ANGELES FIRE DEPARTMENT RESPONSE TIME LAG Analysis: Notwithstanding the above criticisms and concerns, the area fire departments are doing the job that is expected. Response times, though, can sometimes be a factor in the difference between life and death. There have been cases where a person has died while waiting for the medical personnel to arrive. 7 With more funding, idle ambulances can be put back into service and there can be an upgrade of technical equipment with a consequent reduction in response times. The Grand Jury acknowledges with great appreciation the dedication and commitment of all emergency responders in Los Angeles County and hopes that responses to this report will result in an enhancement of their service to all members of our community. REQUIRED RESPONSES Recommendation Responding Agencies 8.1 City of Los Angeles 8.2, 8.3, 8.4 Los Angeles Fire Department LIST OF ACRONYMS ALS Advance Life Support BLS Basic Life Support CAD Computer Assisted Dispatch CHP California Highway Patrol IDA Information and Data Analysis LACFD Los Angeles County Fire Department LAFD Los Angeles Fire Department LBFD Long Beach Fire Department NFPA National Fire Protection Association PSAP Public Safety Answering Point VFCC Verdugo Fire Communications Center 7 http://www.dailynews.com/news/ ci _ 22241825/lafd-probes-response-time-death-teen-playing-soccer 68 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-90 PARKS AND RECREATION COMMITTEE MEMBERS Charles Dolcey -Chair Jacqueline Brown David Dahl Carol Pentz Joan Turner Franklin Wurtzel Ung Vol Yu 3-91 9. PARKS AND RECREATION EXECUTIVE SUMMARY The Los Angeles County Department of Parks and Recreation and the Los Angeles City Depart- ment of Recreation and Parks provide leadership for healthier communities, environmental stew- ardship, community connection and partnership in their promotion of social, recreational and cul- tural opportunities. Citizens of the Los Angeles area are blessed with many beautiful parks, golf courses, and mountain hiking trails. However, many park managers expressed concern that due to economic constraints, maintenance and improvements were limited. In its 2009-2010 Report, the Los Angeles County Civil Grand Jury (the Grand Jury) expressed concern regarding security especially in those parks which were not equipped with photo camera surveillance and adequate lighting. The 2012-2013 Grand Jury initiated an investigation to de- termine conditions in some of the parks visited by the 2009-2010 Grand Jury. This investigation was limited to 12 of the 29 parks visited in 2009-2010. As discussed below, conditions in the visited parks have improved significantly and both the City and County are to be commended in this regard. COMMENDATIONS 9 .1 The County Department of Parks and Recreation and the City Department of Rec- reation and Parks are to be commended for the general level of maintenance and acces- sibility of the parks visited by the Grand Jury. RECOMMENDATIONS 9.1 The County Department of Parks and Recreation and the City Department of Rec reation and Parks should provide an operations manual to all park managers. 9.2 The County Department of Parks and Recreation should display the United States flag at Bethune Park, DeLongpre Park and Ted Watkins Park. 9.3 The County Department of Parks and Recreation should provide greater security at Kenneth Hahn State Recreation Area. 9.4 The Los Angeles City Department of Recreation and Parks should improve rest- room facilities at Lincoln Park. METHODOLOGY The Grand Jury created an inspection checklist identifying key criteria for measuring conditions in the parks visited. The checklist included location of a flag pole, restroom maintenance, dis- ability accessibility, playground and trail conditions, irrigation conditions, etc. A copy of the checklist is in the appendix to this report. The Grand Jury visited the following parks: Athens Park, 12603 South Broadway, Los Angeles; Bethune Park, 1244 East 61 81 Street, Los Angeles; Bronson Canyon Park, 3200 Canyon Drive, Los Angeles; 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 69 3-92 DeLongpre Park, 1350 North Cherokee Drive, Los Angeles; George Washington Carver Park, 1400 East 1 l 8th Street, Los Angeles; Kenneth Hahn State Recreation Area,· 4100 South La Cienega Boulevard, Los Angeles; Ladera Park, 6027 Ladera Park Avenue, Los Angeles; Lincoln Park, 3501 East Valley Boulevard, Los Angeles; MacArthur Park, 2230 West 6th Street, Los Angeles; Jesse Owens Community Regional Park, 9651 South Western Avenue, Los Angeles; Ted Watkins Park, 1335 East 103rd Street, Los Angeles; and Yvonne B. Burke Senior & Community Center, 6027 Ladera Park Avenue, Los Angeles. FINDINGS The 2009.-2010 Grand Jury found that some of the parks visited were poorly lighted, had inoper- able irrigation and water circulation equipment, restrooms out of order and staff without name badges. Security and graffiti were also identified as issues. The 2012-2013 Grand Jury saw a very different view. The Grand Jury was usually impressed with the condition of restrooms, lighting, irrigation, graffiti abatement and a reduction in reported gang activity. The Grand Jury did find however that many parks did not have an operations manual. The Grand Jury notes the following: Athens Park -facilities at this park were excellent and well maintained. The park also offered "Tiny Tot University," a children's program for 3-5 year olds. Management of this park is to be commended for its programs and maintenance. Bethune Park -the park is well maintained with no evidence of graffiti or gang activity. The Sheriff patrols are regular and effective. In addition to a newly constructed swimming pool, the park offers programs for youth that include computer classes, a Toy Loan program, teen pro- gram, snack program and skate and youth karate programs. Bronson Canyon Park -the park is well maintained with effective speed bumps to control ve- hicular traffic. A nice playground area for children and no apparent gang activity. The United States flag should be displayed. DeLongpre Park -the park is well maintained with controls in place to manage issues related to the homeless. The U.S. flag should be displayed. George Washington Carver Park -this park was well maintained and all facilities were clean and operational. Kenneth Hahn State Recreation Area -this is a State park and that is managed and operated by the County Department of Parks and Recreation. This park is very inviting for visitors. Routine patrols by the Sheriffs Department provide security. The park is clean, play grounds are well maintained and pet waste stations are available. A fish-stocked lake is very inviting and families were observed to be enjoying it. The Japanese Garden is very attractive and used for weddings and other special events. The Kenneth Hahn Walking Club offers daily walking in the park and 70 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 3-93 REPORT TEMPLATE members also inform park management of trail conditions and any inappropriate activities at the park. The park's entry kiosk is located a significant distance from the park headquarters. Since entry fees are collected, a higher level of security protection for park personnel working at the park entrance should be provided. Ladera Park -this park is well maintained and inviting. The Yvonne B. Burke Senior Center is adjacent to the park. Lincoln Park -this park offers daily exercise programs for seniors but the park itself is in need of improvement. Graffiti was in evidence and the swimming pool has been closed for the past three years. Additional lighting is needed for safety during evening operations. The public restrooms are closed due to vandalism. All plumbing fixtures were stolen and the public does not have ac- cess to the restrooms. The Grand Jury recognized significant problems exists at the park which causes m~jor inconveniences to the public MacArthur Park -the park is located in the center of a large commercial area. The park offers an inviting lake and band shell but maintenance attention should be given to inoperative drinking fountains outside the playground area and to tree trimming. While substantial usage of the park is a good thing, it does make maintenance challenging. Overall, the park is well managed. Jesse Owens Community Regional Park -the park is quite large and well maintained with a daily swimming pool program. The Sheriffs Department patrols regularly and there is no evi- dent gang activity. Ted Watkins Park -the park is well maintained and the park supervisor is very involved in of- fered activities. No U.S. flag was seen. Yvonne B. Burke Senior & Community Center -the senior program operates in conjunction with the adjacent Ladera Park. The senior center offers outdoor exercise equipment, special dance classes and a hot soup program, whereby hot soup is provided for a minimal charge of $1.00. Seniors exercise in the Center and special dance classes are provided. The Center also has an at- tractive and very clean walking trail. Outdoor exercise equipment is available which the seniors often utilize. The Center is well-maintained. REQUIRED RESPONSES Recommendation 9.1, 9.2, 9.3, 9.4 9.1, 9.2, 9.3 9.5 Responding Agency Los Angeles County Department of Parks and Recreation Los Angeles City Department of Recreation and Parks 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 71 3-94 RECREATION AND PARKS INSPECTION REPORT LOS ANGELES COUNTY CIVIL GRAND JURY 2012-2013 Date: _____ _ City or County Park. ______ _ City of __________ _ Park Name: ____________________ _ Address:--------------------- Inspected by: ___________________ _ Facility Compliance Non-Compliance Flag ______________________________ _ Security/Public Safety _________________________ _ Maintenance ____________________________ _ Restrooms _____________________________ _ Drinking Fountain __________________________ _ Playground ____________________________ _ Handicap Ramps ___________________________ _ Access/Sr. Citizens __________________________ _ Clean ______________________________ ;__ UTILIZATION: Weekdays __ Weekends __ Homeless __ Gang Use __ _ REMARKS: RECOMMENDATIONS 72 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-95 GLENDALE WATER & POWER AND PROPOSITIONS 218 AND 26 COMMITTEE MEMBERS Thomas Scheerer-Chair Albert Handschumacher Kenneth Howard Richard Huber Franklin Wurtzel Gilbert Zeal 3-96 GLENDALE WATER & POWER AND PROPOSITIONS 218 AND 26 EXECUTIVE SUMMARY In response to a letter from a concerned citizen, the 2012/2013 Los Angeles County Civil Grand Jury (hereinafter "Grand Jury") initiated an investigation into whether the City of Glendale (sometimes hereinafter "the City") could be in violation of Article XIIIC and Article XIIID of the California Constitution, specifically Propositions 218 and 26, by charging excessive rates and transferring monies from Glendale Water & Power (sometimes hereinafter "GWP"), to the City's General Fund without the requisite two thirds majority vote of the citizens of Glendale. As a local government within Los Angeles County, the City is within the oversight jurisdiction of the Grand Jury. The City takes the position that because provisions of the City Charter adopted in the 1940's authorize a transfer to the City's General Fund of up to 25 per cent of the operating revenues of Glendale Water & Power, it need not comply with Propositions 218 and 26 which require that utility rates not exceed the cost of providing the service. The Grand Jury is concerned that the. City may be erroneously interpreting the requirements of the applicable provisions of the California Constitution and Propositions 218 and 26 and is thus unnecessarily exposing itself to potential legal expense should its actions be challenged. The Grand Jury is also concerned that a proposed Special Election in April 2013 to clarify certain provisions of the City Charter will not immunize the City from its Constitutional compliance obligations. RECOMMENDATIONS 1. The City of Glendale obtain an independent legal opinion from outside legal counsel specializing in municipal tax law regarding its compliance with Propositions 218 and 26. 2. The City of Glendale hold a special election and obtain the authorization by two thirds of those voting approving the utility rates charged by Glendale Water & Power and the transfer of funds from Glendale Water & Power to the City's general fund. 3. The City of Glendale consider alternate sources of revenue if it is unable or unwilling to obtain the requisite authorization of the City's voters as suggested in 2 above. METHODOLOGY The Grand Jury received and reviewed a letter and supporting documents from a concerned citizen regarding the City's transfer ofrevenues from GWP to the City's general fund. The Grand Jury met with this concerned citizen as well as several senior representatives of the City of Glendale. The Grand Jury also telephonically interviewed a representative of the Howard Jarvis 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 73 3-97 GLENDALE WATER & POWER Taxpayers Association regarding application of Propositions 218 and 26. The Grand Jury also reviewed a January 6, 2010 report of the Sacramento County Grand Jury, various appellate and trial court decisions interpreting Propositions 218 and 26, Implementation Guides for Proposition 218 and Proposition 26 produced by the League of California Cities, and other materials provided to it by the City of Glendale. BACKGROUND Glendale Water & Power provides water and electric service to property owners and citizens of Glendale. Under certain provisions of the City's Charter, the City is permitted to transfer up to 25 per cent of the "Operating Revenue" of the GWP "surplus fund" to the City's general reserve fund. No apparent effort has been made to determine the impact of these transfers on GWP's ability to ,fund needed repairs and enhancements to its infrastructure. Moreover, the City proposes through an April 2, 2013 special election requiring only a simple majority vote to amend and "clarify" its Charter provisions by deleting reference to and need for a GWP "surplus fund" and other special accounts and to just maintain a general revenue fund and to establish a budgeted item appropriation from GWP equaling 25 per cent of its operating revenues. For the fiscal years 2007/2008 through 2010/2011, the City transferred to its general fund from GWP electric revenues totaling approximately $75.6 Million and from water revenues approximately $16.6 Million. California Voters adopt Propositions 218 and 26 On November 5, 1996, California voters adopted Proposition 218. Called the "Right to Vote on Taxes Act,'' the proposition addressed a wide range of issues relating to raising and spending public funds, but specifically provided that cities may not charge ratepayers more for the cost of providing utility services nor use revenue from ratepayers for non-utility purposes. Under its provisions, fees for electrical or gas services were exempted. Further, increases in rates required approval of a two thirds majority vote. See also Howard Jarvis Taxpayers Ass 'n v. City of Fresno (2005) 127 Cal.App.41h 914 (charter-authorized payment in lieu of taxes by water, sewer and trash utilities violated Prop. 218 unless cost justified) and Howard Jarvis Taxpayers Ass 'n v. City of Roseville (2002) 97 Cal.App.4th 637 (franchise fee charged to water, sewer and trash utilities violated Prop. 218 unless cost justified). On June 8, 2010, California voters adopted Proposition 26, the Supermajority Vote to Pass New Taxes and Fees Act. Under Proposition 26, gas and electric service fees imposed by public utilities constitute taxes unless they are imposed pursuant to legislation which predates its adoption or complies with one of its exceptions such as a "charge imposed for a specific government service or product provided directly to the payor that is not provided to those not charged, and which does not exceed the reasonable costs to the local government of providing the service or product." Under Proposition 26, the City's transfer of electric revenue to its 74 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-98 GLENDALE WATER & POWER general fund is evidence that the electric fees exceed the reasonable cost to provide the service and would be impermissible unless legislation predating adoption of Proposition 26 permitted the transfer. FINDINGS The City argues that Propositions 218 and 26 do not apply In a memorandum dated July 30, 2012, the City has taken the position that a transfer ofrevenues from GWP is mandated by the City Charter. The City also asserts that GWP rates have been implemented in accordance with a formula that allows up to a 25 per cent transfer to the City General Fund. Finally, the City argues that its transfer of GWP revenue is "grandfathered" and pre-dates'the adoption of Propositions 218 and 26. The Grand Jury is concerned that this analysis is too simplistic and overlooks the City Charter provision that limits the transfer from the "surplus fund" account. The Grand Jury is also concerned that reliance on a 70 year old Charter provision that permits a transfer from operating revenues with no methodology for calculating rates does not satisfy the requirements of Proposition 218 or Proposition 26. Further, the proposed "clarifications" of the City Charter to be submitted to a vote of the citizens of Glendale will not, in the view of the Grand Jury, comply with the requirements of Propositions 218 and 26. The City of Los Angeles lost in court making a similar argument as the City of Glendale An argument similar to that asserted by the City was made by the City of Los Angeles in City of Los Angeles v. All Persons Interested In The Matter of the Validity Of The Transfer Of $29,931,300 From The Water Revenue Fund To The Reserve Fund (Fiscal Year 2006-2007) LA Sup. Ct. Case No. BC369238. In its Final Statement of Decision filed July 2, 2009, the court held that Proposition 218 prohibited the City of Los Angeles and its Department of Water and Power from transferring surplus revenue derived from water service fees to Los Angeles for non- water related purposes and that Proposition 218 prohibited Los Angeles and its Department of Water and Power from charging fees for water or water-related services in amounts that generate revenues greater than necessary to provide water-related services to. its customers. In so ruling, the Court specifically rejected Los Angeles' argument that its city charter provisions authorizing such transfers from the Department of Water and Power exempted it from compliance with Proposition 218. The Grand Jury understands that a trial court decision may not be cited as authority in a court filing, but the Grand Jury does find this holding as indicative of the judicial trend in interpreting Propositions 218 and 26. Fiscal challenges do not justify ignoring constitutional requirements 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 75 3-99 GLENDALE WATER & POWER While the Grand Jury understands the fiscal challenges facing cities such as Glendale, it is not permissible for the City to use Glendale Water & Power as its "piggy bank" to satisfy budgetary . shortfalls. Rather, the City should consider alternate revenue sources and or submit its rate structure for GWP to the citizens of Glendale for their approval by a two thirds majority vote in compliance with Propositions 218 and 26. REQUIRED RESPONSES City of Glendale 76 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-100 CHEVRON-ELSEGUNDO COMMITTEE MEMBERS Frederick Piltz-Chair James Bradford David Dahl Kenneth Howard Jerome Strofs Mel Widawski Franklin Wurtzel 3-101 11. CHEVRON -EL SEGUNDO EXECUTIVE SUMMARY The 2012 -2013 Los Angeles County Civil Grand Jury (Grand Jury) investigated the revenues collected by the City of El Segundo (the City) from the oil and gas refinery owned by Chevron. The investigation was prompted by a concern that Chevron received favored tax status which resulted in the City not receiving revenues from Chevron's refinery comparable to other simi- larly situated cities within California, such as Torrance and Richmond. In addition to projected operating deficits, the Grand Jury investigated the historic and ongoing agreements and negotia- tions between the City and Chevron addressing a variety of tax revenues. During the course of the Gran~ Jury investigation, the City announced and approved an agreement with Chevron which the City has projected will lessen or eliminate the anticipated annual deficits for more than a decade. The Grand Jury recommends several actions that the City implement to plan ade- quately for a stable future fiscal environment and to increase public transparency of financial planning. RECOMMENDATIONS 11.1 The City should form a citizen's committee ofresidents to recommend to the City man-:- ager long term financial planning that insures continued fiscal stability. Given the fifteen year term of the proposed agreement with Chevron and the resulting apparent fiscal health of the City, waiting until the end of the current Chevron agreement to plan for future budget stability would not best serve the City. 11.2 The City of El Segundo should conduct an annual audit of Chevron's utility use in or- der to better pursue revenues at the conclusion of the current agreement. This audit should be part of the public record as opposed to the confidential audit performed by a contractor prior to the negotiation of the current Chevron agreement. METHODOLOGY The Grand Jury relied upon public City and Chevron agreements and documents posted on the City's web site including previous ordinances and documents related to a 1994 negotiated agreement with Chevron for utility taxes. The posting of these documents resulted from previ- ously filed third party Public Records Act requests. In addition, the Grand Jury attended meet- ings of the City Council beginning in September 2012 through January 2013 to hear direct public comments and council member deliberations related to the subject of this investigation. The Grand Jury interviewed several previous and current City employees and consultants regarding prior El Segundo -Chevron agreements and the genesis of the City's fiscal situation. The Grand Jury conducted one telephone interview with a resident of El Segundo who came forward to talk to the Grand Jury. Attempts were made to interview members of a firm that had prepared previ- ous revenue analyses for the City, but these attempts were not successful. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 77 3-102 CHEVRON EL SEGUNDO BACKGROUND This investigation into the relationship between the City of El Segundo and Chevron regarding Chevron's refinery operations was prompted by newspaper articles concerning the current and potential future tax revenues generated by Chevron's oil and gas refining operations and the cur- rent and future fiscal health of the City. The newspaper articles also focused on personnel issues between the City and its former City Manager in light of these tax issues. That personnel matter is not the focus of this investigation and that issue remains unresolved as of this report. History of El Segundo The Chevron El Segundo refinery was built in 1911 and was the second California refinery built by Chevron (then called Standard Oil) -hence the name "El Segundo" which means "The Sec- ond" in Spanish. El Segundo is located in the South Bay area of Los Angeles County. With its neighbors to the south, Manhattan Beach, Hermosa Beach, and Redondo Beach, the area is gen- erally composed of a mixture of affluent coastal residential areas and government and defense- based industries which are major local employers. El Segundo reflects this mixed use with the addition of oil refining. The Chevron refinery is by volllme the largest single refining operation on the West Coast, currently refining approximately 260,000 barrels of crude oil per day. 1 Demographics The City of EI Segundo, population 18,000 as of the 2010 United States Census, is a general law city incorporated in 1917. Initially, the City was primarily agricultural and industrial. North of the City, small airplane operations were carried out at Mines Field to accommodate the fledgling airline and travel businesses. World War II resulted in the City and neighboring areas becoming heavily developed with war-related defense industries, including airplane research and manufac- turing. El Segundo also saw the establishment of an Air Force base within the City as well as the expansion of the airfield north of the City into Los Angeles Municipal Airport, now Los Angeles International Airport (LAX). Today, major national defense contractors and research industries operate within the City including Boeing, Northrop-Grumman, Raytheon, and Aerospace Corpo- ration. Mattel Corporation is also located within the City and is a major employer. Chevron Corporation continues to operate its refinery. Its products include aviation fuel which is sold to airlines via a direct pipeline from the refinery to LAX. Chevron operates the pipeline pursuant to a long term lease agreement with the City. 2 The City's Budget and Revenues El Segundo operates its own police and fire departments. A five member City Council governs the City. The City employs approximately 323 people in a variety of departments headed by a 1 Information from Wikipedia http://en.wikipedia.org/wiki/El_Segundo,_Califomia 2 Information from Wikipedia http://en.wikipedia.org/wiki/El_ Segundo,_ Califomia 78 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-103 CHEVRON EL SEGUNDO City Manager (El Segundo Comprehensive Annual Financial Report 2011). The City employs outside counsel as its City Attorney. The annual operating budget for the City is approximately $52 Million (see Table 1). City policy provides for a 17 percent reserve fund within the annual budget and the City·currently has an investment portfolio of approximately $37 Million. In the City Council's September 4, 2012 budget discussion, the City Treasurer and the City Finance Director provided projections of the City revenues and expenditures through 2016 (see Table 2). The 2012 -2013 City budget projected a structural deficit that was balanced through a variety of means. Projections through 2016 anticipated continuing structural deficits that would require the transfer of funds from investment reserves to the annual budgets unless the City Council took alternative steps. Senior city officials have indicated that the city has reduced expenses over the last few years by reductions in City staffing and by pay concessions from employees in a variety of departments. Much of the general fund revenue for the City of El Segundo comes from a mix of property tax, sales tax, transient occupancy tax, user utilities tax (gas, water, electricity, telecommunications), and business license fees (Comprehensive Annual Financial Report 2011 ). 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 79 3-104 CHEVRONELSEGUNDO Table 1 City of El Segundo Budget Revenues General Fund Reserves FY 2011-2012 FY 2011-2012 Year FY 2012-2013 Pre- Adopted Budget End Estimate liminary Budget Business License $10,049,700 $10,100,000 $10,306,800 Sales and Use Tax $8,650,000 $7,428,500 $6,620,000 Sales Tax in Lieu $2,736,800 $2,773,600 $1,948,900 Property i:ax $6,162,500 $5,882,675 $6,000,000 Transient Occupancy Tax $4,207,500 $4,650,000 $5,100,000 Charges for Services $4,175,500 $4,243,520 $4,169,300 Electric Utility Tax $3,475,000 $3,200,000 $3,200,000 Franchise Tax $2,500,000 $2,437,500 $2,400,000 Cogeneration Electric $1,125,500 $900,000 $1,350,000 License and Permits $1,399,000 $1,444,200 $1,446,200 Gas Utility Tax $750,000 $700,000 $750,000 Interest on Investments/Rentals $985,000 $325,000 $240,000 Other Revenues $3,857,900 $4,096,744 $4,281,100 Total General Fund Revenues $50,073,900 $48,181,739 $47,612,300 Net of Transfers Transfers In $1,600,000 $1,600,000 $4,850,000 Total General Fund Revenues $51,673,900 $49,781,739 $52,192,300 Data from PowerPoint Presentation at El Segundo City Council Meeting December, 2012 80 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-105 CHEVRON EL SEGUNDO Table 2 City of El Segundo General Operating Fund Annual Projections 3-Year Forecast (in thousands) 2013 2014 2015 2016 Revenues $48,000 $48,960 $49,939 $50,938 Expenditures $52,910 $54,497 $56,132 $57,816 Variance $(4,910) $(5,537) $(6,193) $(6,878) Data from PowerPoint Presentation at El Segundo City Council Meeting December, 2012 The City website describes El Segundo as one of the most business friendly environments in Southern California and has some of the lowest business utility rates in the region. The history of the City indicates mixed success in raising revenues via changes in tax rates which require voter approval. Recent El Segundo -Chevron Issues In 2011, the then City Manager was directed to analyze revenues from Chevron as part of a re- view of the City fiscal process. The City Manager presented the results of his analysis in De- cember 2011 with the recommendation that a ballot measure be drafted to increase revenues from oil refining businesses and chemical businesses within the City (El Segundo City Council meeting minutes December 20, 2011. The City council ultimately decided to pursue a negotiated agreement with Chevron rather than proceed through a ballot process (as reflected in the minutes from city council meetings in December 18, 2012). The results of the negotiation with Chevron were presented in the form of a draft agreement at the City Council meeting in January 2013. The Council directed that a variety of City ordinances be drafted for City Council approval to capture and finalize the agreement. On April 23, 2013 the El Segundo City Council approved the agreement which is expected to provide the City with an approximate increase to general fund revenues of $134 Million over a period of fifteen years (City Council agenda for April 23, 2013). The Grand Jury also reviewed a previous negotiated agreement with Chevron completed in 1994 that called for annual audits of Chevron's gas use. During the 1994 negotiations, a confidential audit of gas and other utility use by Chevron was performed by an independent contractor for the City of El Segundo. The audit provision in the agreement allowed for a reopening of the gas util- ity rates based upon future Chevron gas use. The present negotiated agreement also included a confidential audit by a contractor for the City of El Segundo. Discussions with current City offi- cials indicated that no audits of Chevron's gas use had been done in the years between 1994 and the recent audit. The Grand Jury did not have access to the previous or recent audits. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 81 3-106 CHEVRON EL SEGUNDO FINDINGS Grand Jury Concerns and Conclusions The Grand Jury was initially concerned with the possibility of conflicts of interest in previous years and the ongoing relationship between Chevron and elected officials relative to the amount of revenues paid by Chevron to the City. Except for two isolated inconsequential instances of Chevron providing opportunities for City Council members to attend a Chevron 1 OOth anniver- sary event (both declared on Form 700 filings), the Grand Jury could substantiate no evidence of any conflict of interest. Several people interviewed also indicated they could find no evidence of any improprieties occurring in City-Chevron negotiations. The City 'of El Segundo does deserve recognition for managing its expenses in a fiscally conser- vative manner over the years. But like many cities in the last few years, it has had to both cut back on some services to residents and reduce staffing. The City has no long term debt and pres- ently has a reserve fund and investment fund. The Grand Jury finds that the City Council mem- bers and City residents are reluctant to address revenue shortfalls and long term projected struc- tural deficits through the ballot process. Instead, they apparently prefer a negotiation process with Chevron, one of its largest businesses and employers. The agreement approved by the City Council on April 23, 2013 addresses many of the revenue issues for the City for the next fifteen years. Given the great uncertainty in projecting the regional and City economy and fiscal conditions fifteen years into the future, the Grand Jury concludes that the agreement with Chevron is likely the best probable outcome for the City at this time, especially given the City's lack of success at the ballot box when revenue measures have been presented to the voters for approval. The Grand Jury remains somewhat concerned that the City has fiscally "kicked the can down the road" for fifteen years with regard to more stable revenue sources. Further, in light of the above noted general attitude in the City regarding raising taxes, the suggestion that there appears to be a de facto special treatment of Chevron that imposes a disproportionate burden on other major em- ployers in the City cannot be dismissed entirely and is perhaps deserving of analysis by the City. The Grand Jury found that citizen participation in the budget process is minimal as reflected in the low public attendance at City Council meetings that the Grand Jury attended that focused on the City budget. The Grand Jury did not find active public outreach efforts by the City to inform citizens of budget issues beyond the required notification of agenda items of City Council meet- ings. Thus, the Grand Jury remains concerned that input of ideas into the long term budget plan- ning strategies for the City are constrained given limited public attendance at the council meet- ings. Additional ideas and approaches to long term budget strategies could be improved by the City sponsoring additional opportunities for citizens groups with a focus on the budget. The Grand Jury also finds that the City of El Segundo should conduct annual audits of Chevron's utility use as a basis for future budget planning processes for the City. 82 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-107 CHEVRON EL SEGUNDO Required Responses: Recommendation Responding Agency 11.1, 11.2 City of El Segundo 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 83 3-108 CHEVRON EL SEGUNDO 84 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-109 CITIES OF LOS ANGELES COUNTY FISCAL HEALTH, GOVERNANCE, FINANCIAL MANAGEMENT AND COMPENSATION COMMITTEE MEMBERS Kenneth Howard---Chair James Bradford David Dahl Albert Handschumacher Tom Scheerer Jerome Strofs Mel Widawski Gilbert Zeal 3-110 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Table of Contents Executive Summary .................................................................................................................. 85 Background ............................................................................................................................... 86 Methodology ............................................................................................................................. 86 Discussion ................................................................................................................................. 87 Fiscal Health ............................................................................................................................. 96 Net Revenue Percent -All Funds ....................................................................................... 103 Ratio Of Assets To Liabilities -All Funds ......................................................................... 108 Change In Net Assets -All Funds ...................................................................................... 113 General Fund Net Revenue Percent .................................................................................... 117 ChaBge In General Fund Balance ....................................................................................... 122 Unassigned General Fund Reserve ..................................................................................... 126 Findings -Fiscal Health ..................................................................................................... 130 Recommendations -Fiscal Health ...................................................................................... 130 Governance And Financial Management Best Practices ........................................................ 131 Governance Practices .............................................................................................................. 13 7 Strategic Planning ............................................................................................................... 137 Performance Measurement ................................................................................................. 138 City Council And Executive Relationship .......................................................................... 139 Executive Goals And Evaluation ........................................................................................ 140 Council-Adopted Policies ................................................................................................... 140 Findings -Governance Practices ........................................................................................ 141 Recommendations -Governance Practices ........................................................................ 141 Financial Management Practices ............................................................................................ 142 Audit Committee ................................................................................................................. 142 Audit Procurement ............................................................................................................... 143 Accounting Policies And Procedures .................................................................................. 147 Reporting Of Fraud, Abuse And Questionable Practices ................................................... 148 Internal Controls ................................................................................................................. 149 Internal Audit ...................................................................................................................... 151 General Fund Unassigned Fund Balance ............................................................................ 152 Financial And Public Reporting Practices .......................................................................... 152 Findings -Financial Management Practices ...................................................................... 153 Recommendations-Financial Management.. .................................................................... 154 Employee Compensation ........................................................................................................ 155 New Legislation ...................................................................................................................... 156 Recommendations And Required Responses ......................................................................... 156 Appendix A: Glossary ........................................................................................................... A -1 Appendix B: Sample Questionnaire ...................................................................................... B -1 Appendix C: Employees With Compensation Over $200,000 In 2011 ................................ C -1 Appendix D: Progess Implementing Prior Recommendations ............................................. D -1 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-111 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 3-112 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT CITIES OF LOS ANGELES COUNTY Fiscal Health, Governance, Financial Management and Compensation EXECUTIVE SUMMARY The Los Angeles County Civil Grand Jury (Grand Jury) requested information from all 88 incorporated cities in Los Angeles County to determine the fiscal health of those cities. It also sought to determine if the cities were following the "best practices" for governance and financial management, as established by the Government Financial Officers Association (GFOA). This report expands on a previous investigation from the 2011-2012 Grand Jury that studied the 23 charter cities in the County and follows reports in the media of California cities in financial distress. This report also looks at the issue of employee compensation and recent legislation. (Government Code section 8546.10.) Fiscal health of cities in Los Angeles County has been severely impacted by the economic downturn that began in 2008. The cities have responded to the downturn and have made substantial efforts to reduce costs consistent with reduced revenues. For example, most cities have improved their asset to liability ratio and have increased their total net assets. Governance describes the role of a city council in providing leadership for a city. There should be a strategic plan for planning and performance measurements. While most cities responded that they have adopted performance measures to evaluate progress on priorities, only a few had documented such measures. Cities must develop and report on performance measures. These measures should be focused on results, and information should be provided for several years to evaluate progress. Effective governance also requires a definition of roles and relationships, especially between the city council and city executive. It is important for city councils to provide clear direction for the city executive, and evaluate the executive with performance reviews. A best practice is to develop a detailed description of the city council-executive relationship. This can improve the effectiveness of both. The Grand Jury found that all cities have adopted or are in the process of adopting a conflict of interest policy, and an investment policy. Financial management describes the process responsible for managing and protecting the resources of the city and is directly related to fiscal health. Effective fiscal management requires adequate systems of internal controls to insure funds are used for intended purposes. Along with interviewing members of the Los Angeles County Treasurer-Tax Collector's office, the Grand Jury has studied the extensive "Best Practices and Advisories" from the GFOA. This nationally recognized association has developed best practices to provide guidance on sound financial management. Many city officers in Los Angeles County are members of this organization, which is a leader in establishing responsible policy. These best practices served as a basis for evaluating the fiscal management practices of the cities. Compensation for city employees who earned over $200,000 per year is also addressed in this report. 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 85 3-113 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT New legislation (AB187, codified as Government Code section 8546.10) permits the California State Auditor to investigate high risk cities, but requires legislative funding. BACKGROUND There have been recent problems in the cities of Bell, and Vernon. In addition, there are fears of bankruptcy in the city of Duarte and other cities. One of the most important obligations of the Grand Jury is as a government watchdog. Last year's Grand Jury undertook the "Charter Cities' Fiscal Health, Governance and Management Practices" investigation. Of the twenty-five (25) Charter cities within Los Angeles County, twenty-three (23) Charter cities were chosen because their greater autonomy allows for greater potential for abuse. The recommendations resulting from this investigation and the implementation progress are presented in Appendix D. None of the sixty-three (63) "General Law" cities within Los Angeles County were investigated in last year's reP,ort. This year's 2012-2013 Grand Jury decided to expand the investigation to all 88 cities within Los Angeles County including all Charter and General Law cities as the current economy has increased the risk of bankruptcies. [City of Bell, Los Angeles Times Feb. 24, 2011], [City of Vernon, The Economist May 7, 2011], [City of Duarte, CBSLA.com July 31, 2012] METHODOLOGY The following outlines the methodology used for this investigation: 1. Obtained and reviewed the Comprehensive Annual Financial Report (CAFR) or Financial Statements for each of the 88 cities, if available. 2. Developed financial ratios and criteria to rate the financial health of the cities. 3. Ranked the cities based on the financial ratios and criteria. 4. Identified best practices criteria related to governance and financial management. 5. Developed and administered a questionnaire (both hard copy and online) to each of the general law cities as well as the charter cities of Los Angeles and Long Beach. This questionnaire was used to identify their current practices related to governance, and financial management. 6. Developed and administered a questionnaire (both hard copy and online) to each of the 23 charter cities included in the previous investigation. This questionnaire was used to update previous responses, and identify changes in their governance and financial management practices since the previous questionnaire. 7. Reviewed and analyzed each city's response to the questionnaire. 8. Requested supporting documentation and explanations of responses for each section of the questionnaire. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 86 3-114 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 9. Reviewed responses to the questionnaire, supporting documentation, and explanations and developed findings. 10. Reviewed the reasonableness of salaries and compensation as obtained from the California State Controller's Office. DISCUSSION Fiscal Health Cities in Los Angeles County, like local governments throughout California and the nation, have been severely impacted by the economic downturn that began in 2008 and continues. The cities have responded to the economic downturn and have made substantial efforts to reduce costs consistent with reduced revenues. • Most cities expended more than they received in total revenues in all funds for both FY's 2010-11 and 2011-12. The percentage of expenditures over revenues did decline, from 12.5% in FY 2010-11to6.2% in FY 2011-12. There are also signs cities' financial health is improving in terms of net assets. Most cities ( 63 of 84) had a ratio of total assets to liabilities greater than 2.0 in FY 2010-11, with an average ratio of 5.45. This · improved for FY 2011-12, with even more cities (73 of 77) with a ratio greater than 2.0, and an average ratio of 8.92. • Most cities also had improvements in their total net assets during both FY 2010-11 and FY 2011-12. Most cities' (53of84)total net assets increased in FY 2010-11, and even more cities' (58of77) total net assets increased in FY 2011-12. The average change in net assets was 1.2% for FY 2010-11, and 24% for FY 2011-12. • For city general funds, most cities (52of84) received more in revenues than they spent on general fund governmental activities during Fiscal Year 2010-11. On average, cities spent 1.7% more than received in general fund revenues. Most cities (46of77) also received more in revenues than spent on these activities during FY 2011-12. On average, cities spent 1.5% more than received in general fund revenues. • The city general fund balance also increased for most cities ( 4 7 of 84) in FY 2010-11. The general fund balance increased for fewer than half the cities (3 2 of 77) for FY 2011- 12. On average, city general fund balance declined 3.8% in FY 2010-11, and declined 14.5% in FY 2011-12. • Most cities (55 of 84) had an unassigned general fund reserve for emergencies and other unforeseen needs equal to 2 months of regular general fund revenues as recommended in FY 2010-11. Most cities ( 4 7 of 77) also had such a reserve in FY 2011- 12. The average unassigned general fund reserves percentage of regular general fund operating expenditures was 51.4% in FY 2010-11, and 38.3% in FY 2011-12. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 87 3-115 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Governance Practices Governance describes the role of a city council in providing leadership for an organization. • Strategic planning is a key tool for the city council to provide the overall direction for the city, and overseeing the city's performance. Several cities had developed comprehensive strategic plans. Others held regular strategic planning sessions with the city council to discuss strategic issues and provide needed direction. Many other cities focused on short-term or budget related goals, which do not provide the appropriate strategic focus and direction for these cities. Cities that have not developed and adopted a strategic plan that articulates the mission, vision, core values and priorities (goals and objectives) for the city should do so. • Ai;iother key tool is performance measures or indicators to evaluate progress on priorities. Most cities said they had adopted performance measures or indicators, but only a few cities provided documentation. Cities that have not developed and reported on performance measures or indicators to evaluate progress on priorities should do so. These performance measures should be quantified, focused on results, and information should be provided for several years to allow evaluation of progress over time. • Formal definitions of roles and relationships are critical to effective governance, especially for the city council and executive (city manager or city administrator). It is also important for city councils to provide clear direction for the executive through specific goals and objectives and performance reviews of the executive. All cities had defined basic roles and provided the legal framework for the city council and executive through the charter and I or municipal code. A best practice is to go beyond this basic framework and develop a more detailed description of the relationship. This more extensive "governance framework" can improve the cohesion and effectiveness of both the city council and the executive. City councils should develop a "governance" policy that more specifically defines the relationship between the council and executive. City councils that do not develop specific annual goals for the city's executive and conduct meaningful evaluations annually should do so. • Adopting appropriate policies is another key element of effective governance. Two policies that cities are required to adopt by California Government Code are a "Conflict oflnterest" policy and an "Investment" policy. All cities have adopted or are in the process of adopting a "Conflict oflnterest" policy, and all have adopted an "Investment" policy. Financial Management Practices Financial management within each city is responsible for managing and protecting the financial resources and assets of the city. Effective financial management requires adequate systems of internal controls to ensure funds are used for intended purposes, and transparency and reliability 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 88 3-116 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT of financial reporting. The Government Finance Officers Association developed recommended best practices to provide guidance on sound financial management practices. These best practices in each of the following areas served as the basis for evaluating the financial management practices of the cities: • Establishing an audit committee is a best practice for the city council to provide independent review and oversight of financial reporting processes, internal controls, and independent auditors. Most cities have not established a formal audit committee with the responsibility for monitoring and overseeing financial reporting. Cities should formally establish an audit committee and make it directly responsible for the work of the independent auditor. • Aµnual independent audits are required by each city and are important in preserving the integrity of public finance functions and maintaining the public's confidence. All cities require their auditors to comply with independence standards and most select their auditors through a competitive process. Most also preclude the auditor from providing non-audit services. Cities should continue requiring compliance with standards of independence for the external auditor. Cities that do not currently select the auditor through a competitive process should do so. Cities that allow the auditor to provide non- audit services should ensure appropriate review and approval of those services. • Formal documentation of accounting policies and procedures is an essential component in providing effective controls over accounting and financial reporting. Several cities did not have documented accounting policies and procedures, and most of those that did could improve their documentation and maintenance of accounting policies and procedures. Cities should review and update accounting policies and procedures to ensure they are appropriately detailed and define the specific authority and responsibility of employees. Cities should also establish a policy requiring policies and procedures to be reviewed annually and updated at least once every three years. • Most fraud, abuse, and questionable practices are identified through reporting by employees or members of the public. The Government Finance Officers Association recommends establishment of policies and procedures to encourage and facilitate reporting of fraud, abuse and questionable practices. This should include a formal ethics policy, and practical mechanisms for confidential and anonymous reporting. Several cities had very comprehensive and detailed policies and procedures including definitions of fraud and abuse, clear responsibilities for employees and management personnel, and guidelines and steps for investigating allegations and reporting the results. However, most cities could improve their policies and procedures for reporting fraud, abuse, and questionable practices. Cities should review and update policies and procedures for reporting fraud, abuse, and questionable practices including a practical mechanism, such as a hot line, to permit the confidential, anonymous reporting of concerns. • Internal controls are important to safeguard city assets from error, loss, theft, misuse, misappropriation, and fraud. The Government Finance Officers Association recommends internal controls over financial management be documented, provide practical means for 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 89 3-117 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT employees to report management override of controls, periodic evaluation of internal control procedures, and development of corrective action plans to address identified weaknesses. Two cities had developed comprehensive procedures for internal controls. However, most cities provided no specific documentation of internal control procedures, or made minor mention of internal controls procedures as part of their financial and accounting policies and procedures. Most cities also relied on their external auditor for internal control reviews during the annual audit. These reviews are typically limited to review of internal controls over financial reporting and compliance, and do not include an opinion on internal controls. Internal controls to ensure there are adequate procedures in place to protect public funds are the responsibility of city financial management. Cities should develop comprehensive procedures for internal controls over financial management. • The internal audit function serves as an additional level of control and helps improve the overall control and risk environment. Most cities do not have a formal internal audit function. Several state that, given the small size of their city, an internal audit function and staff could not be justified. All cities should establish a formal internal audit function. • Setting aside adequate funds is necessary for use in emergencies, revenue shortages, or budget imbalances. The Government Finance Officers Association recommends that governments establish a formal policy on the level of unrestricted or unassigned fund balance that should be maintained in the general fund, and that this balance should provide no less than two months of regular general fund operating revenues or expenditures. Many cities do not have such a policy, and most who do have not established a minimum of two months of regular general fund operating revenues or expenditures. Cities that do not have policies and procedures regarding general fund unrestricted or unassigned fund balance should develop such policies. • Ensuring transparency and reliability of financial reporting is a key responsibility of financial management. Financial statements and information provide the public with information on how their city is using its resources, as well as the financial stability and health of the city. The Government Finance Officers Association recommends maintaining an adequate accounting system, issue timely financial statements and a Comprehensive Annual Financial Report (CAFR) in compliance with standards, and make the information readily accessible to the general public on the city's website. All cities maintain an adequate accounting system, most issue timely financial statements and a CAFR, and most make the CAFR available on the city website. Cities that have not developed and published a CAFR should do so. Cities that have not published financial reports on the city's website should do so. Summary of Fiscal Health and Best Practices Results The following exhibit shows a summary of each city's average ranking and number and percentage of positive responses to the best practices questionnaire. For financial health, each 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 90 3-118 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT city's rank on each of the six criteria for financial health is averaged for both FY 2011 and FY 2012. The best practices questionnaire included a total of 32 possible positive responses. The number and percentage of positive responses for each city is presented, as well as the ranking of each city compared to all the other cities. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JuRY REPORT 91 3-119 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT of Fiscal Health and Best Practice Questionnaire Results 27 36 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 92 3-120 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT Exhibit 1: Summa of Fiscal Health and Best Practice Questionnaire Results Whittier 36 40 21 66% 55 Employee Compensation Until recently, there has been a lack of transparency and accountability for actual annual compensation for some city employees. In 2010 reports revealed that some administrators in the cities of Bell and Vernon were receiving disproportionately high compensation. In response to these reports, the State Controller began requiring counties, cities, and special districts to report government compensation to be posted on the Controller's website to promote transparency. The information provided includes the approved salary range, as well as the actual compensation received by each employee as reported to the U.S. Internal Revenue Service. City councils and members of the public should annually review the actual compensation received by employees of their city. The taxable compensation for employees receiving over $200,000 in 2011 is listed by city and position title in Appendix C of this report. As part of this investigation the Grand Jury requested information on city employee compensation for those employees receiving over $200,000 in taxable compensation in calendar year 2011. The following exhibit shows the number of employees receiving over $200,000 in taxable compensation for each of the cities. The exhibit also shows the population of each city, and the number of employees with taxable compensation over $200,000 by department or function. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 93 3-121 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 2: Employees with Compensation over $200,000 With Ci Po ulation and Em lo ee De artment I Function 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 94 3-122 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 2: Employees with Compensation over $200,000 With City Population and Employee Department I Function Emplo vees bv Department I Function "' ~ aCI ~ "' .e-~ "; CJ ~ "' Number of = ~ CJ "' ~ ~ City City Population tlJI ell "' ~ ~ ~ -= ... = ~ ~ .... .... Employees u ell ..."l = ll-. ell Q 0 ~ ~ ~ ll-. Malibu 1 13,765 1 Manhattan Bea.ch ·••· ... . >19 •. / ... . r·· ... · ··•· ~6,11r >t.···· • .. •' ·. 16 l 1 1: .. Monrovia 1 39,984 1 Norwalk . ... 1 . ... 109,817 l ..... · . .· .·· .... . . .· . · Palmdale 3 152,622 1 1 1 Pasadena •• 8 . .. 15l,51g I 4, l..:· / L 1 1 .· .. · Pico Rivern 1 66,967 1 Pomona 2· ......... . 163 683 ·•• •.::. .... . .. ·.·· ... ; ....• >\). < 2 ..• •· . · .. '".'.'. ~ ': ... · ... .·. ......... Redondo Beach 7 68,105 1 1 4 1 Rosemead/· ... ·· .· t < . . '$1~1$§ if ? < '\\ •>· \ < .. .· .· · .. · .. · . San Dimas 1 36,946 1 San Fernando ,. ... . ... . · .. . .. ·. •. 25366 I>• ..... I .. ; . · .. San Gabriel 1 42,984 1 Santa Clarita 2 177,641 2 Santa Fe Springs 13 17,929 13 Santa Monica 64 92,703 2, 17 1 29 12 1 2 Signal Hill 1 11,465 1 Temple City / J . ········3$,&94 <f \./ ....•.. , ....... >·.··> y·< >> <<•·· ' / . ••• I :: •· .. ·• •· Torrance 34 149,717 2 1 1 8 19 3 Vernon . S(' / ... b / . . ·~~) )} ·ti·•· </t >1 .·• '// .. .·. / 2 / .. Walnut 1 32,659 1 West Covina i< 6 •. / 112,890 . y I > . . j •••... 2 . '<.·•·· . ·. ·•· West Hollywood 5 37,805 2 1 2 Westlake Village 1 8,872 1 Whittier 1 87,128 1 Totals 772 61 40 10 245 .· 99 245 72 Sources: Compensation Information: California State Controller's Office "Government Compensation in California." (http://publicpay.ca.gov). City Population: California Department of Finance, January 2010. Note: Cities not listed did not have any employees with taxable compensation over $200,000. The taxable compensation for all employees receiving over $200,000 in 2011 is listed, by city and position title, in Appendix C of this report. 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 95 3-123 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT DETAILED ANALYSIS FISCAL HEAL TH Cities in Los Angeles County, like local governments throughout California and the nation, have been severely impacted by the economic downturn that began in 2008. Property tax revenues received by these cities have declined substantially consistent with the decline in property values and the reduction in the sale and turnover ofreal property. Sales tax revenues have also declined substantially, with consumers reducing their spending in response to new economic realities and loss of consumer confidence. At the same time, the cost of funding public pensions for city employees has been impacted as well. The annual cost of pension obligations is partially determined by the earnings of pension funds, pri,marily the California Public Employees Retirement System (CALPERS). With the economic decline came market corrections, and substantial reductions in the investment earnings of CALPERS. This resulted in increased rates and costs for cities to fund their employee pension obligations. The Public Employees' Pension Reform Act of 2013 took effect on January 1, 2013. The reforms in this law mainly affect new employees hired after its effective date. Most new workers will have to work until age 67 to receive full benefits. Police and firefighters will have to work until age 57 to receive a maximum benefit that is less than what most safety workers currently receive. The amount of salary that qualifies for pension benefits will be capped at just under $114,000 per year for workers who are covered by Social Security and just over $136,000 for those who are not. Another important provision is equal cost sharing between the employer and the employee. New employees will pay at least half the cost of their pensions. Current employees who are not paying half may be required to pay more in the future. (Source: California Public Employees' Retirement System) Cities have responded to the economic downturn and have made substantial efforts to reduce costs consistent with reduced revenues. These efforts include hiring and pay freezes for employees, furlough days for existing employees, increased cost to employees· for benefits (health care and retirement), and in some cases significant employee layoffs. In some cases cities have also reduced the level of service provided to the community, with reduced hours of operations and other reductions for some services. To evaluate the financial health of the cities we obtained and reviewed the Comprehensive Annual Financial Report (CAFR) or Basic Financial Statements for each city for Fiscal Years 2010-11 and 2011-12, the most recent years of audited financial reporting available. We were able to obtain this information from 82 of the 8 8 cities. The cities of A val on, Bell, Compton, Cudahy, La Habra Heights, and Maywood are in the process of completing their financial statements and audits for these fiscal years. We developed criteria for evaluating the fiscal health of these cities, and compiled and analyzed the information from the financial statements. Most of the cities had two primary types of activities -governmental and proprietary or business-type activities. Governmental activities include the core government activities such as government administration, public safety, 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 96 3-124 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT transportation, community development, and community services. These activities are reflected in each city's general fund. Proprietary or business-type activities include operating public utilities (electrical power, water, parking, refuse collection, etc.) or other non-governmental activities. It is important to note that all financial information reported here is as presented by each city in their financial statements audited by each city's independent financial auditor. The following are the criteria used, with definitions and explanations of each. Three of the criteria are applied to all city funds, and three of the criteria are applied only to city general funds. • All Funds include each city's general fund as well as any other funds for proprietary or business-type activities which include operating public utilities (electrical power, water, parking, refuse collection, etc.) or other non-governmental type activities. o Net Revenue Percent is the percent of all revenues remaining after all city expenditures. Revenues are the amount received by a city from taxes, fees, permits, licenses, interest, intergovernmental sources, and other sources during the fiscal year. Expenditures are the actual spending of governmental funds by each city. If a city spends less than received the net revenues and percentage would be positive. If a city spends more than received in revenues the net revenues and percentage would be negative. The net revenue percent is calculated by dividing net revenues by total revenues. o Ratio of Assets to Liabilities is the total assets of a city divided by the total liabilities of a city. City assets include funds available for use by the city, as well as the value of any capital assets such as land, buildings and improvements, machinery and equipment, and infrastructure. Liabilities include accounts payable and long-term debt such as bonds, certificates of participation, pension obligations, and insurance claims. Net assets are the total city assets less total city liabilities. The ratio of assets to liabilities is calculated by dividing a city's total assets by its total liabilities. This ratio is an indicator of a city's solvency and ability to meet long-term obligations, including financial obligations to creditors, employees, taxpayers, and suppliers; as well as its service obligations to its residents. Ideally, cities would at minimum, have twice as many assets as liabilities. This would give them an asset to liability ratio of 2.0 or better. o Change in Net Assets is the difference from the beginning of the fiscal year to the end of the fiscal year in the total city assets minus total city liabilities. This change indicates the extent to which total city assets are increasing or decreasing. Ideally, city net assets would be stable or increasing. Declining net assets indicate cities are spending down their assets in order to meet current financial obligations. The change in net assets is calculated by subtracting the previous fiscal year's net assets for each city from the current year's net assets. If the result is a positive number the net assets are increasing, if a negative number the net assets are decreasing. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 97 3-125 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT • General Funds are used to fund core government activities such as government administration, public safety, transportation, community development, and community services. o General Fund Net Revenue Percent is the percent of all general fund revenues remaining after all city general fund expenditures. Revenues are the amount received by a city from taxes, fees, permits, licenses, interest, intergovernmental sources, and other sources during the fiscal year. Expenditures are the actual spending of governmental general funds by each city. If a city spends less than received the general fund net revenues and percentage would be positive. If a city spends more than received in revenues the net general fund revenues and percentage would be negative. The general fund net revenue percent is calculated by dividing general fund net revenues by total general fund revenues. . o Change in General Fund Balance is the difference from the beginning of the fiscal year to the end of the fiscal year in the total city general fund balance. This change indicates the extent to which a city's general funds are increasing or decreasing. Ideally, city net general fund balance would be stable or increasing. A declining general fund balance indicates cities are spending down their general fund in order to meet current financial obligations. The change in general fund balance is calculated by subtracting the previous fiscal year's general fund balance for each city from the current year's general fund balance. If the result is a positive number the general fund balance is increasing, if a negative number the general fund balance is decreasing. o Unassigned General Fund Balance is the portion of a city's general fund balance that is not assigned for a specific use and, therefore, available for appropriation. The Government Finance Officers Association recommends each city have an unassigned general fund reserve of no less than two months of regular general fund operating revenues or regular general fund operating expenditures. These are funds that have been formally set aside for use in emergencies, revenue shortages, or budget imbalances, as well as provide stable tax rates, maintain government services, and to facilitate long-term financial planning. The exhibits on the following pages provide an overview of the results of the financial information and criteria developed for each city. This includes the actual financial health criteria (ratio or percentage), as well as how each city compares or ranks against each of the other cities in Los Angeles County. This information is provided for both Fiscal Years 2010-11 and 2011- 12. More information on each of these fiscal health criteria, and the results of the comparison, is contained within the sections following this exhibit. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 98 3-126 CITIES FISCAL HEALTII, GoVERNANCE AND MANAGEMENT Exhibit 3: Results aud Rankin2s of Cities on Fiscal Health Criteria All Funds General Fund ' Net Revenue Percent Ratil> of Assets to Liabilities Chane:e ii! Net Ass~ts Genenll Fund Net 'Revenue Chan"e in·General Fund Balance Unassie:ned General Fund Balance FY2010-ll FY201l-12 FY2010-11 FY2011-12 FY2010-11 FY 2011-12 FY 2010-11 FY2011-12 FY2010-ll FY2011-12 FY2010-ll FY2011-12 Citv Rank Percent Rank Percent Rank Ratio Rank Ratio Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent A.11;oura Hills 79 (415%) 24 U%l ····>:29 3.82 24 7.54 45 o:s-;., . 7.0 •..• nci;1';.,) .36 . i:5% 16 '8,1% ·/ ·· .. I 285.1%" 74 (783%) 14 80.3% 9 85.5% Alhambra 12 3.9% 5 6.0"/o 52 2.48 52 3.77 6 8.1% 34 14.6% 44 1.5% 51 C!.3%) 13 24.3% 47 (52%) 67 4.7% 64 0.7% Arcadia 63 (15.3%1 37 (42%) ···::is· ·•. 431· 28 :6.94 1!l 1a:w~r •74:c 15.1%\ ······s2 ·········o:i>"Ai• 58 (5:0%) ··:•34•· :·>:td% 42 (35%) 50 19.0"/o 45 20.3% Artesia 52 (84%) 70 (171%) 67 1.77 39 5.05 44 0.8% 37 8.8% 20 8.3% 54 (3 5%1 II 25.3% 51 (7.1%} 31 44.9% 32 35.0"/o Azusa 68 (J9.8%) NA 0.0% ··,·11 1.69 NA ·o.oo 73 (4$!1.) NA .o.c>% 30 <4:7% NA · • •· o:oo;. · 3" •' .. /68'.&%". NA -0.0% 83 fl5.3%l 67 0.0% Baldwin Park 16 2.2% 33 (2.8%) 56 2.28 48 4.48 28 2.4% IS 39.9% 23 7.1% 3S 3.8% 64 (9.7%) 49 (S.8%) 56 IS.3% 56 8.1% ·.·A1 · 2:93 725 .. 72 < ((5%)c "10 ''63;6% . · 10:.00/.: •. 40 1.7% •... 36" .. Bell Gardens 33 (2A%r 46 (7.3%1 25. 15 S.O'lo ·. 36 (19%) 18 73.2% 67 0.0% Bellflower 2S (.8%) 12 4.1% 36 3.29 46 4.64 s 8.2% 31 15.6% 29 4.7% 44 1.0% 41 2.3% 30 l.5% 20 70.0% JS 63.0% Beverly Hills 6 5.7% 3 · s:s% :.:·sr i.S5 63 2.83.· 8 '··6.6%: 38 ·-'"'•'ll:2% 'If· !L&% ... 9 11.1% 44 · · • o:4% ll 9.4% 33 43.7% 24 4S.5% Bradbury 82 (108.2%) NA 0.0% 2 49.28 NA 0.00 80 (IO.!%) NA 0.0% 83 (59.2%) NA 0.0% 76 (23.9%) NA 0.0% 6 187.6% 67 0.0% Burbank 54 (1.5%). 69 (16.6%1 32 ·3.52 40 4.98 56 (1i%) 4o . 7.9'/o .. 74 (15.0%) 68 <fio%l ······6f" ·•·<•(1;0%) ··• 58 fl4.2%) 43 31.1% 67 0.0'/o Calabasas 39 {4.0%) 22 0.2% 35 3.48 57 3.52 15 5.2% 59 (.0~%) 33 4.3% 34 3.9% S2 (3.6%) 20 4.5% 13 86.8% 7 94.1% Carson 58 (11.7%) 74 (245%) ·,·•48 ···2))5 74 l.96 78 (9.5%} c 7'3 '!4.4%1. •· 24 ·. ?:!% .. ·. 18 7.6% . :-.:•10' • 29:3% ·. 4 26.0"/o SI 18.4% 38 26.4% Cerritos 5S no.1%) 3S {32%l 45 2.83 6 39.J9 61 (10%) 12 Sl.7% 72 (14.1%) 76 (44.0%) 53 (4.2%) 6J (16.1%) 9 103.1% II 77.9% 5 8.5% 4.9'.lo ·.,.·, ·22 4:4S .. 41 4.93-21 · 3.lo/o ' 60 Claremont 9 (2%) 21 . Sell"/. 14 •.•.•. 8:7% ···..:·.ri:·· ··•15'.1% !O 14.4% 44 30;9% 34 31.7% Commerce 6J 02.1%) 31 (2.0610) 72 1.69 76 l.6J 74 (5.0%1 42 6.6% 45 1.5% 20 6.6% 47 0.1% J9 5.3% J9 71.8% 12 77.1% Covina 66 (17.8%1° 63 fl>.'1%} 49 ·2.61 . . · 53 3.69 76 •. {5.8%} • ·:.·76' /(i,1%) .. 42 !:9'/o 59" .· {5;0%} ·: 2j < 9.4% 56 (92%} 39 36.3% 35 31.l% Cudahv 84 {170.3%) S8 (12.0%) 82 1.29 J4 IS.6J 84 (72.8%) J 260.9% 69 (9.8%) 67 (119%) 73 (15.6%) 55 (9.2%) 10 103.0% 8 88.5% CulverCitv 17 2.1% 68 {1$.5%) 69: f73 38 5.08 ·34, ·.·. 2.0% 7 . 80.9"/o . .'6 . ···•16,4%' ; . 53. . (33%} ,. ····:•9 .<29A% 39 (2.6%) • 24 61.4% 17 58.4% Diamond Bar 76 132.0%) 76 (6S.8%) 4 24.92 8 25.49 63 (1.3%) 64 (l.3%) 82 (55.5%1) 71 124.1%) 78 (3l.l%) 66 (19 4%) 2S 60.2% 18 S6.7% Do~ 65 (17.8%1 62 li3.5%}. •·:;o'. ,•: J.76c 44 4.74 75 •·($.l'I!>} ... · A4 s:1% 70• do:!i%l .. •62 (3:5%} :"'66. . {9.9'.4) 60 (14.4%) • 57 14.8"4 . ·. 55 8.8% Duarte 31 (l.6%) 19 1.0"/o 21 4.46 7 34.15 16 5.1% 22 27.0% l 42.6% J9 6.7% 4 58.3% 21 3.8% II 97.4% 6 109.0"/o El Monte 56 (!0.4%) 28 ··cu-%1 :\•}j9: .•• 4:77: . 33 5.44 • 43 .. • LQO;.; 49 ..• 4:i% .. 56 lt:il<'fof .:·:·'·.'.Si;· ·. H.9%)" ·:::fa'." 6.2% . 32 . 0~8% 55 16.9% 16.3% 48 El Segundo 3S (3.J%) 6J (13.5%) 16 5.47 47 4.49 65 (15%) 72 (3.4%i 60 (41%) 60 {7.0%) 51 (3. l~"o} 67 ([9.5%) 62 9.8% S2 14.6% Gardena 8 4.8% 13 4.1%• ····<42• 28°9 . 62 2:91 . 55 1'4',>•;} 66· l/tj'~9%.J .:19 ··· · is% .• 31 ' 52% 2"9 ···' ·•1:1% Hi ·: 1:s%. 70 0.7% 66 0.5% Glendale 53 (9.1%) S6 (Jl.2%) 27 3.90 42 4.89 so 0.1% 62 (l.0%) 73 (J4.8%) 70 (16.7%) 19 11.3% 70 (55.6%) 36 38.7% 40 23.3% Glendora 44 (S6%) 36 n.9%i ······::33· ... 3;50 37 ··s.os 48 o .. 3Y. . ·47. .. 4.1% 'zs 5.9"4 . <52 ·~ 12.<i%) 'J7 <4.2"h 57 'r9:6%i 72 0.0'/o 67 0.0% Hawaiian Gardens 32 (23%) NA 0.0% 75 1.52 NA 0.00 52 0.0% NA 0.0% 59 (35%) NA 0.0% S4 (4.5%) NA 0.0% 7 120.3% 67 0.0% Hawthorne 20 i.4% 16 3.4% c/:'79· · 1.38 67 251 13 5.7% 5 118.4% •1-0 . 14.0"/o 7 11.3% '15 ·. 19.4% 71 (59.0%) 41 33.1% 37 28.8% Hermosa Beach 13 3.7% 2 10.7% 12 7.44 31 5.89 39 t.sro 69 (2.4%) 14 10.6% s 13.6% 18 11.7% 22 3.5% 49 23.2% 4J 23.3% Hidden Hills 70 1233%) 8 s.6% ····:•<rn .J0.54 l6 12.22 40 .: 1.5% S7 .·· i0.1% 79 (32.0%) 21 . 6 .. 5% . .·.-...6s·. .,,·•:•19j;%) 2S 2.3% 3 207.2% 2 291.9"/o Huntington Park 40 (4.5%) NA 0.0"/o 84 0.62 NA 0.00 83 030%) NA 0.0% 39 2.4% NA 0.0% 38 3.5% NA 0.0"/o 45 30.7% 67 0.0% Indn<hv 60 (12.0%) 51 (9.6%) . ~-•. ·66 l.8S 72 2.12 14 s .. 7% ·75 16.2%) 2 30.0'/; .41 1.4% 30 6.9"h 48 (S.3%\ I 607.2% I 4S4.7% Imtlewood 9 4.7% NA 0.0% 74 1.60 NA 0.00 67 (2.8%) NA 0.0% 57 (2.7%) NA 0.0% 68 02.5%) NA 0.0% S2 18.3% 67 0.0% Irwindale 7 S.3% 52 (9.8%) :ss 225 s 40.08 3 8.5% 14 .· 40.3% 37 3J% 63 (9.1%) ·2: .· 143.7% 63 (f7.0%) 72 0.-0% 67 0.0% La Canada Flintridge 3 ll.6% 26 (.8%) 50 2.60 6S 2.66 10 6.0% SI 1.9% 5 16.6% !J 10.4% 28 7.3% 38 (2.1%) 8 119.3% s 116.3% La Habra Heights l 2S.4% NA 0.0'/o 8 IL75 NA 0.00 60 {Lil%} NA 0.0% 49 o.6% NA 0,0'/o I.· 48 •{6%) NA 0.0'/o 5 195.2% 67 0.0% La Mirada 27 (l.0%) 29 (!3%) 65 1.85 17 11.38 2 11.8% 4 128.7% 16 9.6% 2 23.3% 42 2.0% JS 7.6% J7 73.2% JO 8S.1% La Puente 50 (7.7%) 4S (7.0'/o) 59 2.23 64 2.82 38 l.5% 35 10A% 63 (5.6%} 6 11.4% 50 ... £2.8%) 72 (59.6%} 28 54.8% 22 S0.6% La Verne II 4.3% 2S (.6%1) IS S.48 27 6.94 27 2.4% 54 1.3% 67 (7 7%) so (2.3%) 35 6.0% 6 19.3% 72 0.0% 67 0.0% 20J2-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 99 3-127 CITIES FISCAL HEALIB, GoVERNANCE AND MANAGEMENT Exhibit 3: Results and Rankin2s of Cities on Fiscal Health Criteria All Funds General Fund Net Revenue Percent Ratio of Assets to Liabilities . · Chanf!e in Net Assets Cenerat Fund Net Revenue Chan2e iii Cener"1 F1u1d•Balalice UnassiRned General Fund Balance FY2010-11 FY2011-12 FY2010-11 FY2011-12 FY 2010-11 FY2011-12 FY 2010-11 FY2011-12 FY 2010-11 FY2011-12 FY2010-11 FY2011-12 Citv Rank Percent Rank Percent Rank Ratio Rank Ratio Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Lakewood 15 2.4% 21 0.7% n 8.85 11 17:97' ······:24• . 2.8% 24 ·24.5% 21 .• .6i% 29 5.7% 26 7~6% . l'.7 6:7% .· 68 3.2% 59 6.5% Lancaster 69 (21.8%) 49 (9.2%) 28 3.88 10 18.04 64 {l.4%) 23 25.2% 76 (23.3%) 47 (.9%) 74 (17.0%) 69 (38.6%} 46 30.2% 43 21.5% Lawndale 77 (39.1%) NA 0.0"!. 44 2.85 NA 6.00 .46 05% NA .. ·O;O"/o 81 • 065%1 NA 0.0% 57 . 156%) .. NA . 0.0% 16 74.9% 67 0.0% Lomita 42 (51%) 48 (7 8%) 17 4.99 34 5.33 66 (t.7%) 65 (l 5%) 40 2.1% 33 4.0% 69 (l30%) 24 2.5% 64 8.5% 60 5.1% Lo~Beach 26 (,9%) 75 (25.2%) 57 ·2.25 . '69 2;39 .ff 5.9% 53 1;5% '53 {2%) ·.:'l8 2.3% · .. 82 {59J%) •·'9 . i:5.1% 71 0.2% 62 1.3% Los Angeles 43 (5.3%) 44 (6.6%) 68 1.74 75 1.77 26 2.7% 48 4.5% 25 6.4% 26 6.1% 16 19.1% 12 9.2% 66 6.5% 58 6.7% Lynwnod 57 fll.5%) 40 (4.9%\ 53 ···2.47 5g 3..42' :35 1.8% ·.· 63. .(t2%) •. · ::64. '·:" ··15;7%} 48 (1.0%") 15 (2t.2%-\ 59 1143%) 53 18.2% 47 18.5% Malibu 73 (29.2%) 55 (11.1''•) 38 3.01 61 2.95 49 0.2% 71 (33%) 61 (4.2%) 57 (4.9%) 77 (:!3.9%} 54 (8.7%) 42 31.2% 28 36.2% Manhattan Beach 10 .4.3% 17 3.2% 24 4.U ' . 50 4,01 29 2.4% 45 · s.3% 32 4.3% 28 5.7% 24 . ·. ~U% 33 ·· ... t:2%l 37 36.7% 29 35.6% Monrovia 78 (40.3%) 53 (10.0%) 80 1.30 66 2.65 81 (10.8%) 3 163.7% 78 (31.8%) 72 (27 2%) 71 (14 0%) 76 {.374-5%) 84 t27.I%) 76 (27.7%) Montebello 34 (2.5%-) 27 (.9%) 77 U:i .. ·•·5g· -. 2:43 9 6.3% 18 ·.· 37.5% ::'77 . \'.!5.4%) 74 (3L8%J 83 (174:5%} ··:·:·.·1 43,8% 61 105% 49 15.9% Monterey Park 36 (3.2%) 50 (94%1 70 1.72 60 3 01 25 2.7% 16 39.6% 58 (31%) 45 0.6% 55 (4.5%) 7 18.1% 65 8.3% 57 7.8% Norwalk 47 (6.9'/.,) 10 4,6% 60 2.20 ··32 5.70 53 (1%) 19 3;!.6% 4 ... ··.•11.6%. 17 7.8% 8 36.0"/o 65 (19c0%) 48 25.4% 36 29.9% Palmdale 19 1.4% 41 (56%) 31 3.73 26 7.13 51 0.1% 32 15.3% 9 14.4% 39 1.8% 12 24.7% 52 (71%) 38 36.5% 33 34.6% Palos Verdes Estates 28 {l.0%) 39 (4.8%) I 'So.41· .3 .44:98 62 (1.1%) 68 . {2.4%) ·4Ci< . 2.1%. · .. · 32 4.9'!. 22 9.4% I< 44 (4.7%) 60 10.7% 50 15.7% Paramount 62 (125%) 38 (4.7%) 61 2.13 22 9.94 77 (6.3%) 17 39.5% 51 0.2% 42 1.4% 5 42.6% 29 1.6% 30 49.9% 23 49.6% Pasadena 51 (83%) 72 118.0'%) 63 ·2.01 ..• ,·:·73· 2~04 .·· 23 3,()% ·26' 20.1% ·2i::···· 7.3% ·.· 8 11.2%·1. 67 . n2:4%} 14 .• 7.7% 78 (.8%) 75 (231%) Pico Rivera 64 (17.1%1 59 (I:!.4%) 54 2.32 54 3.67 20 3.2% 8 80.9% 68 (8.6%) 49 (17%) 60 (68%) 31 1.2% 59 11.5% 67 0.0% Pomona 48 (7.0%) 57 (lLZVi1) 78 . i..48 ······n·· z:;zz 57 (.7%/ 13 .41;()% .48 · .. ····o:9% ·•· •·24 6.2% · ... 70 tUOo/ol I .· 73· •. (622%) .· 72 0.0"!. 67 0.0% Rancho Palos Verdes 4 10.4% I 11.8% 7 12.25 4 41.90 22 3.0% 29 16.4% 3 25.5% I 26.2% 49 f2.4l!/o) 18 5.6% 22 66.7% 14 71.4% Redondo Beach 23 (_0%) 34 {3.0%) 20. 4'.57 36 .. •s:ij 32 2.2% _36 l0~0%· 34: ·:··.4.1%' ·.· 37 2.4% . 6 .•. : 38:-0% ·. (l .9%} 72 37 0.0"!. 65 0.6% Rolling Hills 80 (45.6%1 66 (14.3%) 3 36.59 2 45.56 82 {l2.9%J 52 1.5% 38 2.6% 69 06.0°10) 39 3.1% 50 (6.4%) 4 206.8% 3 177.0% Rolling Hills Estates 3Q {l.6%\ II .4.5% 9 io~51 19 J-0)2 ····.31 . 2A% / 39: ···•.•· s:i% 65 ·. {7.3%1 .22 6.3% ·. 72 . (J:;°;l%) i< · s ••.. :· 11.00/o· .47 28.5% 30 35.2% Rosemead 71 (26.4%) 71 (17.3%) 64 1.98 15 15.41 4 8.4% II 56.2% 66 f7.6%) 46 0.4% 63 (9.6%) 41 (33%) 26 57.6% 20 56.0% San Dimas 75 (305%) 6 5.9'!. 25 4.11 20 10 .. 30 33 .. · 2.1% 20 33;2% '.46·· .-.·-··.·n% .· 36 2.5% 43 };6% I 35 .f.9%) ·. 27 55_2% 19 56.1% San Fernando 49 (7.5%) 30 (1.6%) 39 2.98 43 4.81 58 (.7%1 50 3.0% 80 (32.0%1) 73 (30.0%) 84 (704 9%) 75 (99.7%) 81 (4.4%) 74 (10.0%) San Gabriel .45 {5.8%) 47 (7.7%) 18 -4:s1 '.45 4.70 .69 -. (3.4%} 67 12'.2%) >•15:· .·(22.2%) 75 (334%} 46 .-. 0:2% 68 {25 9%1) 79 {2.1%) 61 3.5% San Marino 72 (27.2%) 67 (15.0%) 5 15.44 9 21.50 47 0.4% 58 0.2% 18 9J% 15 8.7% 62 (8.9%) 64 (181%) 15 79.8% 13 72.6% Santa Clarita 67 09.7%) 32 12.4%) 14-··6.22' ·•21 m14· 36 1.7% .43 6.1% i ... 15.5%• 61 (8.0'%) 25 ·.··. 'l.6% .·. 62 {16.4%l 21 69.7% 16 58.4% Santa Fe Sorings 24 (.7%) 73 (19.0%) 73 1.66 29 6.27 19 3.7% 9 72.8% 71 (ll.4%1} 65 (11.4(/,,0) 31 6.7% 5 25.4% 40 35.4% 25 43.1% Santa Monica 46 (6.7%) 42 (5.9%) 26 3.98 35 5.28 30 2.4% 30 16,3% 55 .. {!.7%) 3 23.2% 7 37.0"/• ·. 3 41.0"!. ·.· 34 40.0"!. 31 35.1% Sierra Madre 37 (3.3~10) 64 (13.7%) 6 12.97 12 16.57 59 (8%) 61 {.4%) 12 11.3% 10 10.5% 27 7.5% 53 (7.4%) 23 65.2% 54 12.2% Siimal Hill 81 164.0%) 65 (l4.2%) 76 ·.• L52 18 11.31 41 13% ·.· .6 lOJ.:5%. 31. < 4.5% 25 6.1% 20 :· ·9.11% ·• 23 2.5% 35 39.1% 27 41.7% South El Monte 21 0.2% 15 3.5% 83 1.13 23 9.38 1 100.0% 2 237.1% 50 0.4% 12 9.6% 80 (51.7%) I 59.7% 69 2.0% 53 13.2% South Gate 14 2.4% 14 3.6% 47 2:68 56 3.56 ·• T 6.8% 33 14:6% 54 . (1.0%) 43 1.2% 32 6.5% 26 ••. 2.0"!. 58 13.2% 46 19.5% South Pasadena 38 (3.9%) 4 7.7% 55 2.31 70 2.32 17 4.0% 55 0.9% 13 11.2% 30 S.5% 14 20.8% 13 9.0% 29 53.9% 21 55.6% TemoleCitv 2 12.0% 18 2.2% 13 7.19 13 16 . .34 12 5.7% 41 7.7% 26 6.3% 27 5.8% 40 2.5% ···•· 4s (5.0%) 2 236 .. 1% 42 22.5% Torrance 18 2.0% 7 5.8% 43 2.88 55 3.66 42 1.2% 27 18.6% 43 1.9% 23 6.2% 58 (60%i 27 1.9% 63 9.7% 44 21.4% Vernon 83 (IJ0.4%) 77 (83.9%) 81 1.29 77 !.14 79 (9.7%) 77 (51.4%) 84 (!00)%) 77 (108.1%) 81 (58.5%) 77 (455'.0%1 82 (8.2%) 77 (4j.4%) Walnut 74 (293%) 23 (,O~"o) 34 3.49 I 48.92 54 (.2%) 21 31.7% 35 3.5% 64 (10.3%) 79 (31.7%) 46 (5.2%) 72 0.0% 63 0.7% West Covina 29 (1.2%) 43 (6.3%) 62 2.o? 51 4,00 71 (3.9%) ZS 21.8% 62 fS.5%) 66 (11.7%) 59 (6.2%) ·. 40 12.9%) 54 17.0% 39 24.4% 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 100 3-128 CITIES FISCAL HEAL TI!, Go VERN AN CE AND MANAGEMENT Exhibit 3: Results aud Rankin!!s of Cities on Fiscal Health Criteria All Funds General Fund Net Revenue Percent Ratio of Assets to Liabilities · • •· • ·Chanece in Net Assets General Fund Net Reven11e · Chanee in General Fund Balance Unassi!med General Fund Balance FY2010-ll FY2011-12 FY2010-ll FY2011-12 FY2010-ll FY2011-12 FY2010-ll FY2011-12 FY2010-ll FY2011-12 FY2010-ll FY2011-12 City Rank Percent Rank Percent Rank Ratio Rank Ratio Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent Rank Percent West Hollywood 59 (l 18%) 20 1.0% 46 2.78 49 4.23 18 3.9% 46 5.0% 8 14.7% 4 17.4% 21 9.6% 28 1.7% 80 ('.!.2%) 51 15.6% Westlake Village 14,6%\ {10,9%) 37 59 3J6 . 6S · .. (3.3%} ·····12% . 13 . .. 9.4% {5;4%) 41 54 3.13 56 0.3% 47 56 34 (:9%) 12 92.7% 4 139.3% Whittier 22 (.0%) 60 (l2.6~"u) 40 2.94 30 6.23 37 1.5% 28 18.2% 17 9.3% 55 C4.3~"o} 45 0.2% 43 (4..4%) 32 43.7% 26 42.0% Average~ All Cities (125%) (6.2%) 5.45 8.92 0.8% 24.0% (17%) (1.5%) (3.8%1 (14.5%) 514% 38.3% Source: Comprehensive Annual Financial Report (CAFR) or Basic Financial Statements obtained from each City. Financial information for FY 2010-11 or FY 2011-12 was not available from the cities of Avalon, Bell, Compton, and Maywood as of April 25, 2013. Financial information for FY 2011-12 was not available from the cities of Azusa, Bradburv, Hawaiian Gardens, Huntington Park, Inglewood, La Habra Heights, and Lawndale as of Aoril 25, 2013. 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPoRT IOI 3-129 3-130 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Net Revenue Percent -All Funds Net Revenue Percent is the percent of all revenues remammg after all city expenditures. Revenues are the amount received by a city from taxes, fees, permits, licenses, interest, intergovernmental sources, and other sources during the fiscal year. Expenditures are the actual spending of governmental funds by each city. If a city spends less than received the net revenues and percentage would be positive. If a city spends more than received in revenues the net revenues and percentage would be negative. The net revenue percent is calculated by dividing net revenues by total revenues. All Funds include each city's general fund as well as any other funds for proprietary or business- type activities which could include operating public utilities (power, water, parking, refuse collectio~, etc.) or other non-governmental type activities. As the following Exhibit shows, only 21 of the 84 cities spent less on all activities (governmental and business) during Fiscal 2010-11 than revenue received. The remaining 61 cities spent more than they received in revenue. Both the cities of Vernon and Bradbury spent more than twice what was received in revenues. On average, cities expended 12.5% more than they received in revenue during FY 2010-11. The exhibit also shows that only 22 of the 77 cities spent less on all activities (governmental and business) during Fiscal 2011-12 than revenue received. The remaining 55 cities spent more than they received in revenue. The City of Vernon spent nearly 84% more than it received in revenue. On average, cities expended 6.2% more than they received in revenue during FY 2011- 12. Cities cannot sustain a pattern of spending more than received in revenue, and essentially not living within their means during the fiscal year. Cities can balance their budgets by spending down reserve funds, liquidating city assets, or increasing city debt or liabilities. Cities may also have to make even more substantial reductions in city services. 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 103 3-131 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Fiscal %Net Rank Ci Revenues Ex enditures Revenues Revenues Ex enditures Revenues Revenue _ Bever! Hills $175,405,113 7 ·Irwindale · .. ·. $4o,546,:i95T 8 Gardena $55,501,464 9 Inglewood si6S,424,i79 10 I Manhattan Beach I $56,452,978 · · • $43~89:~foi E $86,087,510 ·••· ·· $39,~16,iJWI .. $73,042,672 . $'63,285~86:] $52,944,564 $13J,585,98<i $189,407,666 s141;3s6,94oH•••· 20 Hawthorne $186,430,835 21 South EI Monte $20,521.75*•f • 22 Whittier $78,336,992 23 Redondo Beach $88,177,849 ' 24 Santa Fe S rings $80,476,230 25 Bellflower $36;021;i1i8< 26 Long Beach 27 La Mirada 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT ·.·.·~ .·.··;·.·:·.·.·. ·:-.-.. ~·-;-·:· .·.· ·. . ..... . > <$3;412,102 11.8% $3,400,076 I 10.7% .$15,564,869 I 8.5% $26,276,406 $1,640,975 m18s.116li66 > $11,337,470 $1,986,620 $1,876,183 $110,437 . s~Il~sii.811 . $t9~5$2.6J& <? $1,so1,141 $67 ,602,693 $3,098,890 <n>$338,769 $1,498,225 $:2,449,079 $68,837,572 I $66,381,334 I $2,456,238 > \$t7t@iis[~Jf'TF$016iJI6fi]f ••>•••····•••••s622;s23·.· . $102,220,01& I $98,160,119 I $3,459,299. ••.< $~~.45$;5~\I ;p$51,s~,547 JY• ···•••$1,926,036 $345,820 ···"······•c~1;:226 $915,506 $361,601 7.7% 6.0% 5.9% 5.8% 5.6% 4.9% 4.6% 4.5% 4.1% 4.1% 3.6% 3.5% 3.4% 3.2% 2.2% 1.0% 1.0% 0.7% 0.2% {.0%) (.3%) (.6%) (.8%) (.9% 104 3-132 Rank Ci 28 ·. 29 54 I Burbank Exhibit 4: Total Revenues, Ex .• ·.·.· > Fiscal ·ye8.l' lOJ.ij4Jif~tf 7···••••. n•••••·• Total Revenues $230,591,000 $253,105,ooo I ($22,514,ooo) 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT (9.8%) 54 I Westlake Village $15,173,722 $16,828,541 ($I,654,8I9l I oo.9%) 105 3-133 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 106 3-134 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 4: Total Revenues, Expenditures and Net Revenues (Ranked Highest to Lowest % Net Revenue) Fiscal Year 2010-11 · .... Fiscal Year 2011-12 Total Total Net Total %Net Total Total Net Total %Net Rank Citv Revenues Expenditures Revenues Revenue Rank City Revenues Expenditures Revenues Revenue 82 Bradbury $1,276,231 $2,656,941 ($1,380,710) (108.2%) NA Inglewood . ·.··-.·.·--. . .. ' 83 Vernon . $43,508,272 $91,538,194 ($48,029.922) (ll0.4%) NA · taHabra Heights · .. · 84 Cudahy $12,766,738 $34,508,045 ($21,741,307) (170.3%) NA Lawndale Source: Comprehensive Annual Financial Report (CAFR) or Basic Financial Statements obtained from each City. Financial information for FY 2010-11 or FY 2011-12 was not available from the cities of Avalon, Bell, Compton, and Maywood as of April 25, 2013. Financial information for FY 2011-12 was not available from the cities of Azusa, Bradbury, Hawaiian Gardens, Huntington Park, Inglewood, La Habra Heights, and Lawndale as of April 25, 2013. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 107 3-135 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Ratio of Assets to Liabilities -All Funds The Ratio of Assets to Liabilities is the total assets of a city divided by the total liabilities of a city. City assets include funds available for use by the city, as well as the value of any capital assets such as land, buildings and improvements, machinery and equipment, and infrastructure. Liabilities include accounts payable and long-term debt such as bonds, certificates of participation, pension obligations, and insurance claims. Net assets are the total city assets less total city liabilities. The ratio of assets to liabilities is calculated by dividing a city's total assets by its total liabilities. This ratio is an indicator of a city's solvency and ability to meet long-term obligations, including financial obligations to creditors, employees, taxpayers, and suppliers; as well as its service obligations to its residents. Ideally, cities would at minimum, have twice as many assets as liabilities: This would give them an asset to liability ratio of 2.0 or better. All Funds include each city's general fund as well as any other funds for proprietary or business- type activities which could include operating public utilities (power, water, parking, refuse collection, etc.) or other non-governmental type activities. As the following Exhibit shows, 63 of the 84 cities ratio of total assets to total liabilities were greater than 2.0 in FY 2010-2011. The remaining 21 cities had total asset to total liability ratios less than 2.0. This indicates that several cities solvency may be at risk, as may their ability to meet future obligations. The City of Huntington Park had the lowest ratio at .62. The average ratio of total assets to liabilities was 5.45. The exhibit also shows that 73 of the 77 cities ratio of total assets to total liabilities was greater than 2.0 in FY 2011-2012. The remaining 4 cities had total asset to total liability ratios less than 2.0. The City of Vernon had the lowest ratio at 1.14. The average ratio of total assets to liabilities was 8.92. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 108 3-136 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Asset/Liab Rank 2 3 7 8 9 13 14 15 21 22 23 24 25 26 27 J ·. GJ~daie. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 109 3-137 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 110 3-138 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 111 3-139 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 5: Ratio of Assets to Liabilities (Ranked Highest to Lowest Asset/ Liability Ratio) Fiscal Year2010 .. n I FiscalY~r2011~12 Rank City Total Assets Total Liabilities Net Assets Asset!Liab Ratio I Rank City 82 Cudahy $34,358,801 $26,643,8?2 rng!~"."o~d ·.··. ·. 83 South El Monte $45,102,055 ••$39,775,366 tiflJabiiHei~ts 84 I Huntington Park I $151,871,161 I $244,914,916 I ($93,043,755) I 0.62 I NA I Lawndale Source: Comprehensive Annual Financial Report (CAFR) or Basic Financial Statements obtained from each City. Total Assets Total Liabilities Financial information for FY 2010-11 or FY 2011-12 was not available from the cities of Avalon, Bell, Compton, and Maywood as of April 25, 2013. Net Assets Financial information for FY 2011-12 was not available from the cities of Azusa, Bradbury, Hawaiian Gardens, Huntington Park, Inglewood, La Habra Heights, and Lawndale as of April 25, 2013. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT Asset!Liab Ratio 112 3-140 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Change in Net Assets-All Funds Change in Net Assets is the difference from the beginning of the fiscal year to the end of the fiscal year in the total city assets minus total city liabilities. This change indicates the extent to which total city assets are increasing or decreasing. Ideally, city net assets would be stable or increasing. Declining net assets indicate cities are spending down their assets in order to meet current financial obligations. The change in net assets is calculated by subtracting the previous fiscal year's net assets for each city from the current year's net assets. If the result is a positive number the net assets are increasing, if a negative number the net assets are decreasing. All Funds include each city's general fund as well as any other funds for proprietary or business- type activities which could include operating public utilities (power, water, parking, refuse collection, etc.) or other non-governmental type activities. As the following exhibit shows, 52 of the 84 cities total net assets increased during FY 2010-11. The remaining 32 cities net assets declined during FY 2010-11. The exhibit also shows that 58 of the 77 cities total net assets increased during FY 2011-12. The remaining 19 cities net assets declined during FY 2011-12. The average change in net assets was 0.8% in 2010-q, and 24% for FY 2011-12. A positive percentage change indicates that the city's financial position is improving, while a negative percentage change indicates that the city's financial position is deteriorating. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 113 3-141 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 114 3-142 Rank Ci 30 I Santa Monica I $1,535,362,226 31 I RollingHillsEstates Ti $t0.0~1;8solT> CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT $1,828,472,446 I $256,515,165 Change in Net Assets 16.3% 15.6% 32 Redondo Beach $215,266,893 $220,024,820 $4,757,927 $738 666,238 $851,442,344 $112,776 106 15.3% 33 san Dimas > $'ls,6fo,9lo fl'i;iM,696 $iis53i1iiil ~2();44935.Q ' $25\2,6~4.'ls<l £32.245.tiM 14.6% 34 Culver Ci $207,459,913 $211,631,970 $4,172,057 $177;111,578 $202,934,046 $25,822,468 14.6% 35 Lvnwood ::si39.s91~5&o·. ?$t,fr2si.i64 -~ H[zi56~,2i4 'fui1Mfo6ii· 5 :s4&ofo}1s6 < [fi.i81_99o 10:4% 36 $879,262,993 $894,585,567 $220,008,247 $242,108,746 $22,100,499 10.0% 37 Whittier ' $226,622'.~s••• '><$~IK133,24i•·• •••••····· i S-14.988.:fal•• ·<••:•< $.1tbizA2i; J\ si.324.101•·.. s.8% 38 I La Puente I $35,699,326 I $36,237,066 I $537,740 I 1.5% I 38 I Beverly Hills I $655,570,500 J $709,432,402 I $53,861,902 I 8.2% 39 l Hermosa Beach .8.l % 40 Hidden Hills $6,960,798 $7,062,944 $102,146 1.5% $1,345,693,000 $1,451,344,000 $105,651,000 7.9% 41 si~arHiu ·····.< '.$6i.339.93s < i$62.1i~&S9 .• •• ·t'.iG11lt45¥·•· ar 1:3% .. $60.siD!i& ?.$&S~iJq,2ji·, c $4.64&,751 1.1% 42 ,. ,---··---·-~-...... _.__ $77,866,876 $82,987,309 43 ;:Y::•;·,.;~; •··•·····•·•;;;· • ··.::.<L••·•x:~;; ···>•<·•·••·••·•••·-·•• •••••<• $894,slis;sM> ., 2:$~49,:4~£105• $14,822;791 $275,778,ooo I $291,446,ooo $52,877,922 $234,567,423 I $246,251,060 I $11,683,637 48 . 49 50 51 Palmdale 52 Hawaiian Gardens $23,261,691 I $23,267,915 53 Norwalk •:········ .··$1-09,547,36s•••t•777$i~~,342,o86 54 Walnut $86,393,828 I $86,192,945 55 Gardena ··· $11s.4:07,3s9 56 Burbank 57 Pomona 0.2% 58 San Fernando $60,778,589 $60,331,335 ($447,254) (.7%) 58. I San Marino $199,706,593 $200,085,711 $379,118 0.2% 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 115 3-143 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT Exhibit 6: Chan2e in Net Assets (Ranked Positive to Ne2ative Chan2e in Net Assets) · Fisea1Ye8.t:io10..;11···•••·•.••······ ·····························' ., ••.•..•.•••.•••••.•.•.••.•..••..••.•...•...•.•• ·.•.•···•·•·I··•• .. ···· · .. ·····••>.•<Ht ;n··••FiseidYeaf2011:..;1z••••·••··••>}>•···.······ Beginning I Ending I Change in I Change in I I I Beginning j Ending I Change in Rank I City I Net Assets Net Assets Net Assets Net Assets Rank City Net Assets Net Assets Net Assets Change in Net Assets 59 I Sierra Madre (0%) 60 La Habra Heights $12,082,251 $11,964,847 $135,916,931 $135,591,436 ($325,495) {.2%) 61 cemtos <· iiis~s9.o68 .J$$34.7i.6,90¥'.\f • $~1~,40:&,i't~ G $;1I:#i.s$1······ .($95'7.6611). · (.4%) 62 I Palos Verdes Estates I $87,668,455 I $86,668,866 I ($999,589) I (1.1%) I 62 I Glendale I $1,655,667,000 I $1,638,463,000 I {$17,204,000) I (l.0%) 63 I Diamond Bar ( 1.2%\ 64 Lancaster $904,318,000 $891,819,345 $405,860,546 ($5,482,720) (13%) 65 EI segundo $14'M9sl666 $i41.646,~5o D $4~;2()7,.5;& 9{$669594> o 5%) 66 Lomita $44,653,981 $43,876,953 ($777,028) (1.7%) $118,407,359 $116,128,296 ($2,279,063) ( 19%) 61 Inglewood /'s220J345sfa/ 5. ~i3.is3,171/ <$6.~t~> ct (dlSii.4)'· +·~s~(ss'li!lSu ssi69o.®M l$t,rnK911l (22%) 68 Westlake Village $41,067,970 $39,695,369 ($1,372,601) (3.3%) $82,232,212 ($1,987,642) 69 San Gabriel . . .. < $5s,199,s4()\ ·•• :: $,56;2:io;ii~i '{$iJh9J;t6} @i{3:~~f . $'79.,~!lK435 Mfr.97s,8l()) F (2.4%) (24%} 70 I Arcadia I $199,030,502 I $192,064,831 I ($6,965,671) I (3.5%) I 70 I AgouraHills I $86,048,235 I $83,815,997 I ($2,232,238) I (26%) ~1 p~ Azusa $105,822,495 $101,111,384 ($4,711,111) (4.5%) $147,836,304 $142,864,903 ($4,971,401 (3.4%) ····•.•\J••·• .···s1s3,4ss,442•·· >>•i121.02'1;®5') ·•• .($h~4~7;$31) ; A?!<t.~;.,>· W• sfai9l644,5i9•• t•··<i3635t-0.14s·•• ••'iifJ.533.831·>··· (4.4%) 72 j Bell Gardens 73 74 $102,968,774 ($5,164,997) $192,064,831 $181,152,565 ($10,912,266) (5 7%) 15 · · · $291.298,(l(){) ···· · · ··· ; $~.§3:111~:£" ?$~,.91S]58i' 't$3:7di6.58oi {6.2%) 76 I Covina $145,143,945 $136,654,618 ($8,489,327) (5.8%) $128,712,846 ($11,436,749) (8.2%) '77 .• , · $99.009,<i&i DT$9s.Jl.i,ti9M <$J,i~~.1$6lit m<~:i%}-> . $82'.issa~s W3>&:6,996l43H· (514%) 78 I Carson $419,286,360 $379,644,579 ($39,641,781) (9.5%) 79 Vernon .•··••··••r•••••·····•· $101.108:074• •>•··•·•••$ii{69{).56h'< •··••iiiii,4Ht~4i .•;:; f{.9.i%1 80 Bradbury $6,402,883 $5,753,196 ($649,687) (10.1%) Hawaiian Gardens 81 Momovia $49,199;339 $43,90i4ff> · ($5,29sl9i8.) i&(t{);i%) fillJltiI!it~ri~ '. 82 Rolling Hills $6,775,878 $5,898,446 ($877,432) (12.9%) NA Inglewood 83 Huntington Park ($82,332,361} <($9~~o43,75S). {$i~,~Hl~8i) D (i3.o%f. ·. NA· fiiiraI;iafi~iiili~<K 84 I Cudahy $28,414,815 $7,714,909 I ($20,699,906) (72.8%) NA I Lawndale Source: Comprehensive Annual Financial Report (CAFR} or Basic Financial Statements obtained from each City. Financial information for FY 2010-11 or FY 2011-12 was not available from the cities of Avalon, Bell, Compton, and Maywood as of April 25, 2013. Financial information for FY 2011-12 was not available from the cities of Azusa, Bradbury, Hawaiian Gardens, Huntington Park, Inglewood, La Habra Heights, and.Lawndale as of April 25, 2013. I 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 116 3-144 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT General Fund Net Revenue Percent General Fund Net Revenue Percent is the percent of all general fund revenues remaining after all city general fund expenditures. Revenues are the amount received by a city from taxes, fees, permits, licenses, interest, intergovernmental sources, and other sources during the fiscal year. Expenditures are the actual spending of governmental general funds by each city. If a city spends less than received the general fund net revenues and percentage would be positive. If a city spends more than received in revenues the net general fund revenues and percentage would be negative. The general fund net revenue percent is calculated by dividing general fund net revenues by total general fund revenues. As the following Exhibit shows, 52 of the 84 cities received more in general fund revenues than they expended on general funded governmental activities during Fiscal Year 2010-11. The remaining 32 cities spent more on these activities than revenue received. The exhibit also shows 46 of the 77 cities received more in general fund revenues than they expended on general funded governmental activities during Fiscal Year 2011-12. The remaining 31 cities spent more on these activities than revenue received. Cities spent an average of 1.7% more than received in revenue in FY 2010-11, and spent 1.5% more than received in revenue in FY 2011-12. General Funds are used to fund core government activities such as government administration, public safety, transportation, community development, and community services. Each city's general fund is used to provide resources to provide for the basic city services including police, fire, parks, library, and administrative support services. A negative net general fund revenues and percentage means a city's ability to provide these essential services in the future may be at risk, and they may have to make additional reductions in city services. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 117 3-145 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT Rank 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 118 3-146 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 7: General Fund Revenues, Ex · Fiscal Yea·I' 2016~11/ + // ' .·. General Fund Rank 28 Glendora 29 BellJ 30 Azusa 31 Signal Hill $16,503 772 $15,763,663 32 Miinhattan Beach .•.•.•• •· •. • $52;021;800.•·· ••• >•·•••$49,'l~J;~~d·•· 33 Calabasas ------$20,437,186 34 Redondo Beach . $67;121,270 3.9% 35 Walnut $11,794,092 3.8% 36 A oura Hills $11,03(740 .$455,131 25% 37 $66,183,617 I $1,628,016 2.4% 38 '. s:l19;4ti6;o.oo4 ··< $9,-012,000 2.3% 39 1.8% 40 1:7% 1.4% .l.4%. $31,~21,184 I ... $36,974,158 J $453,626 1.2% .··.·. $~.<i5~,94#H s~~ig,1.4:1 F · · $240,795 l.0% $32,412,385 0.6% 46 0.4% 47 (9%) 48 (1.0%) 49 (1.7% 50 {$573,&20) (2.3%} 51 Paramount $22,349,332 ($1,179,853) (23%) 52 Arcadia·•· $45,970,881 ($569,009) (26% 53 Lon Beach $383,824,000 ($2,325,847) (33%) 54 South Gate $35,321,221 .·· ($259,079) (3.5%). 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 119 3-147 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 7: General Fund Revenues, Exnenditures and Net Revenues %NetGF Rank I City 55 $266,324,593 $270,917,006 ($4,592,413) $51,724,154 $53,935,356 ($2,211,202 (4.3%) 56 •· $48,936;211· ~~:~@g% < ¥$~i¥.~~-H >$51J.l2~H5M !$5~AiOE81~ <}$2_476.563) {4.9%). 57 In lewood $91,188,526 $93,635,491 ($2,446,965) $22,864,947 $23,990,727 ($1,125.780) (4.9%) 58 Montere Park. > > $2~310,d;1{ $:;ij~~~ l ($~i4[~~~ · < $4d7#~;4iri \;¥$4~;1&~5~~-I (~,284,098}. (5.0%) 59 $28,167,072 (5.0%) 60 70%} 61 $80,248, 130 (8.0%) 62 (8.5%) 63 (9.1%) 64 {Ja.3%) 65 66 67 68 (13,0%) 69 16.0%) 70 16.7%) 71 72 73 ($3,644,530) (30.0%) 74 r tiiK114/lo7) 31.8%) 75 ($8,208,~62) 33.4%) ·.·._·.· .· 76 I Lancaster f$26,379,Q53) (44.0% 77 I Montebello $33,446,847 ($29.690,881) (108.1%) 78 l Monrovia $23,488,715 79 I Hidden Hills $1,710,883 80 I San Fernando $14,724;735 81 I Lawndale $11,313,334 $15,437,446 ($4,124, 112) (365%) NA I Huntington Park 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 120 3-148 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 7: General Fund Revenues, Exoenditures and Net Revenues Fiscal Year 2010-11 · ' <·< • ~Fls~fy~~Fl.011'"'12<·•· ... · ·.· General Fund General Fund General Fund I % Net GF Rank I City 82 83 I Bradb 84 I Vernon • L $27.894;119 l Source: Comprehensive Annual Financial Report (CAFR) or Basic Financial Statements obtained from each City. Financial information for FY 2010-11 or FY 2011-12 was not available from the cities of Avalon, Bell, Compton, and Maywood as of April 25, 2013. Financial information for FY 2011-12 was not available from the cities of Azusa, Bradbury, Hawaiian Gardens, Huntington Park, Inglewood, La Habra Heights, and Lawndale as of April 25, 2013. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 121 3-149 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Change in General Fund Balance Change in General Fund Balance is the difference from the beginning of the fiscal year to the end of the fiscal year in the total city general fund balance. This change indicates the extent to which total a city's general funds are increasing or decreasing. Ideally, city net general fund balance would be stable or increasing. A declining general fund balance indicates cities are spending down their general fund in order to meet current financial obligations. The change in general fund balance is calculated by subtracting the previous fiscal year's general fund balance for each city from the current year's general fund balance. If the result is a positive number than the general fund balance is increasing, if a negative number the general fund balance is decreasing. As the following Exhibit shows, 47 of the 84 cities had positive changes in their general fund balance in Fiscal Year 2010-11. The remaining 37 cities general fund balance declined. The exhibit also shows 32 of the 77 cities had positive changes in their general fund balance in Fiscal Year 2011-12. The remaining 45 cities general fund balance declined. The average change in general fund balance was -3.8% in 2010-11, and -14.5% for FY 2011-12. A positive percentage change indicates that the city's financial position is improving, while a negative percentage change indicates that the city's financial position is deteriorating. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 122 3-150 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT Exhibit 8: Chan1!e in General Fund Balance (Ranked Positive to Negative Change in General Fund Balance) Rank 2 I Irwindale 31 Azusa 4 I Duarte s .1. Paramount 6 7 24 Manhattan Beach 25 Sarita Clarita 26 Lakewood 27 Sierra Madre 28 La Canada Flintridge 29. Gardena 30 lndust 31 Sarita Fe Sorine:s Beginning GFBalance I $13,975,303 $8,649,750 •• $204,929,546 I $219,ooo,959 · $23,66s,29s·•·1.•••• $2s]49,l-04T 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT Ending $66,993,ooo I $77,123,ooo $523,288,ooo I $571,684.ooo ··? stts~2.soo h ' $'14l754,459d•••••••·••· $9,961,015 \ t58,W:i;8:23·••.l.•······· $19,957,249 Change in %Change GFBalance 169J% 59.7% 43.8% >$s7s,3i9 I 3.8% $203,106 3.5% :$677,909 . . 25% $4,919,713 $5,041,171 $121,458 2.5% > $5;63i,E32 •• $.i,t'.$1;627 .. <$113395···. 2.3% $44,430,290 I $45,305,175 I $874,885 I 2.0% ~~mdITJTITI~RO~ I •> $959,744 -·,·-. $75,775,059 $1,246,735 -··. - ··w$26,sa6.on · > $31s,920 $26,638,103 I $27,034,507 I $396,404 .···.·•·••$42,4$4,939••1 ($42,~s,s21.I···•·•. ·••.••···$490,588 123 3-151 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 8: Chan e in General Fund Balance (Ranked Positive to Ne ative Chan e in General Fund Balance) Rank City FiscatY~ar2oioki1. x·········· ~.·.· Beginning GFBalance Ending GFBalance Change in GFBalance %Change GF Balance I Rank '-City Beginning GFBalance Ending GFBalance Change in GF Balance %Change GFBalance 32 I South Gate I $41,736,638 I $44,430,290 I $2,693,652 I 6.5% I 32 I El Monte I $27,313,295 I $27,530,762 I $217,467 0.8% 33 I El Monte . · ~ (.2%} 34 Arcadia $25,198,726 $26,733,547 $1,534,821 $15,429,166 $15,287,538 ($141,628) (.9%) 35 La veme ~.061,447 \ $&;545.949 T ~4,so2 I$3lM8614~U ' $3o:s96.is9 / ($289,ioor · {:9%) 36 Bell Gardens $38,147,258 $40,042,997 $1,895,739 $40,042,997 $39,269,814 ($773.183) (1.9%) 37 Glendora · $16,oss:976 $1~/lMfsjl ' ; '. $677.545 ($fa,654.459: . $13;39b,6so· ·. ·· ($263,779} o :9"A>l 38 $30,991,807 $32,074,080 $1,082,273 $14,997,521 $14,679,687 ($317,834) (21 % 39 <$3,221,894 ; $3,'.3ib:~9· / < :&99,235 $SQ;316Jli59 $48,!194~1 ·. {$1;321;754) (2.6%) 40 Temple City $24,700,378 $25,313,718 $613,340 $29,613,277 $28,767,970 ($845,307) (2 9%) 41 Bellflower $11,469,012 $2&,09ib'S9 < $629,981 ' :Si~~319:;m: $.f4.;s~1;t72 <· .. {$497,900) (3.3%) 42 I La Mirada $47,554,646 $48,527,355 $26,733,547 $25,799,162 ($934,385) (3.5%) 43 t sanDimas I · $3o,419A9S:> $3o,90o,41J.i; $~~.4i'.3i'.3o7 7{$4;:S:H,Q'.37. < {$l,S99,3101 (4.4%) 44 Bever! Hills $97,564,979 $97,984,156 $419,177 0.4% 44 Palos Verdes Estates $9,332,667 $8,891,466 $441,201 (4.7%) 45 Whittier · • $16~392,'.331 Y $'.36,473,'.367 k > '. $sii,97i; $25.'.3ii'z:1M •·· T'.$i4,()M;!J8()} • ($1,259,63&) (5.0%) 46 San Gabriel $11,160,821 $11,182,894 $22,073 0.2% 46 Walnut $15,002,607 $14,215,976 ,$786,631) (5.2%} 4 7 I Commerce 48 I La Habra Heights 49 I Rancho PalosVerdeS 50 LaPuente 51 · EISegoodo 52 I Calabasas 53 Cerritos 54 I Hawaiian Gardens 55 1 MonterevPark (5.2%) $5,577,027 $5,546,038 ($30.989) (.6%) $219,000,959 $207,304,768 ($11,696,191) (5.3%) $19,373,04:2/ •• $li,90o,26i <••cttiiJHsii·.1··· sWJ!>W.n~ > $J~;o~4,269 ·. > <$992,8841 (5.8%) $19,110,833 $18,569,801 ($541,032) $3,321,129 $3,110,058 ($211,071) (6.4%) . · 1 S13;034,4~ $i2/>fMs2< < ($4()$;$40.f :Jff$j;~6~46i $3};82~4-88 <$2'.79,75.8} (7.1%) $17,617,282 I $16,990,628 I ($626,654) I (3 6%) I 52 I Palmdale I $31,932,082 I $29,657,651 I ($2.274,431) I (7.1%) .(7.4%) $21,034,418 I $20,095,731 I ($938,687) I (4.5%) I 54 L Malibu I $20,352,411 I $18,572,523 I ($1,779,888) I (8 7%) ····t<>• ····•···· <.·.•·j? >•·· ••••• <j:?• <>· >•' •t••· .. ,..,.. ·. •J .• ,x•• • ····••··•·•·•· ..... ·. .· I ,,. $13,762,704 · .... $1'.'h145,236 ........ ~J$6l7Aii8}.. ... .. (4,:>.!1.l .• 55 L£iidllhy · ($691,667). (9.~Vn) 56 Westlake Villa e $16,308,401 $15,429,166 ($879,235) $11,607,880 $10,537,723 ($1,070,157) (9.2%} 57 Lawndale $24,655;831 $23,275.5% ·• < {$1,:!86f281) :$i6,166iiz{ ii5.,J58,I69 ($l,6os,352J (%%} 58 Torrance $55,023,286 $51,737,301 ($3,285,985) $100,907,000 $86,565,000 ($14,342,000) (14.2%) 59 WestCovina $31,567,950 s29,613,z77 .. ··•· ($1,954,673) { $~,5~~,2§0 i$$,{;0.I,665 .· ($931.595) 04.3%) 60 I Pico Rivera $45,530,767 I $42,454,939 I ($3,075,828) I (68%) I 60 I Downey I $23,227,000 I $19,887,000 I ($3,340,000) I (144%) 61 Burbank $108,520,000 + sioo,901,-0oo I <($1,6!3.<loo> I '. tfo%rl 7 6(1 ci~ttitos <16.1%) 62 I San Marino $19,107,936 $17,399,938 ($1 ,707,998) (8.9%) 62· I Santa Clarita $83,690,219 $69,942,023 I ($13.748,196J (16.4%) 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 124 3-152 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 8: Chan!!e in General Fund Balance (Ranked Positive to Negative Change in General Fund Balance) Rank City 63 I Rosemead 64 I Baldwin Park 65 I Hidden Hills• 66 I Downe 67 68 69 70 71 72 73 74 75 76 17 78 79 80 81 82 83 .···.····•.••·•.·········Fis.;l Y~~t.·UllQ.-,fl >····· •··•···>•······ /'%%# /•······ Beginning GFBalance $76,270,787 :$8;~s~.9~s~• I••·•·• $2,247,759 84 I SanFemando I $102,384 I ($619,317) I ($721,701) I (704.9%) I NA I Lawndale Source: Comprehensive Annual Financial Report (CAFR) or Basic Financial Statements obtained from each City. Financial information for FY 2010-11 or FY 2011-12 was not available from the cities of Avalon, Bell, Compton, and Maywood as of April 25, 2013. Financial information for FY 2011-12 was not available from the cities of Azusa, Bradbury, Hawaiian Gardens, Huntington Park, Inglewood, La Habra Heights, and Lawndale as of Aoril 25, 2013. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 125 3-153 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Unassigned General Fund Reserve Unassigned General Fund Balance is the portion of a city's general fund balance that is not assigned for a specific use and, therefore, available for appropriation. The Government Finance Officers Association recommends each city have an unassigned general fund reserve of no less than two months (16.6%) of regular general fund operating revenues or regular general fund operating expenditures. These are funds that have been formally set aside for use in emergencies, revenue shortages, or budget imbalances, as well as provide stable tax rates, maintain government services, and facilitate long-term financial planning. As the exhibit on the following pages shows, 55 of the 84 cities had unassigned general fund reserves greater than 16.6%, or two months, of regular general fund operating expenditures for Fiscal Year 2010-11. The exhibit also shows 4 7 of the 77 cities had unassigned general fund reserves greater than 16.6%, or two months, of regular general fund operating expenditures for Fiscal Year 2011-12. The average unassigned general fund reserves percentage of regular general fund operating expenditures was 51.4% in FY 2010-11, and 38.3% in FY 2011-12. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 126 3-154 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 9: General Fund Balance Indicators (Ranked Hi best to Lowest% Unassi ned GF Balance) Fiscal Year 2010~11 Fiscal Yea.-2011'"12 GF Balance % I Unassigned GF I Unassigned GF GF Balance % I Unassigned GF I Unassigned GF of GF Ex 's Balance City ofGFExp's Balance %ofGFExp's 609.4% .$218,205,Vifi lndtistry . ·. . I . . . ;;,:.; .;;;1 $206,S0&,950. J · 454.7% 253.8% I $23,542,553 I 236.1% I 2 I Hidden Hills 313.9% I $4,791,648 291.9% 223_Io/o I $4,67S,424l? \ >1ofao/.t• .. ·· 31 R.6umgHills > < I · < 1si2%n ·:s3:1>os:146 I 177.0% 210.4% $3,265,198 4 Westlake Villa e $12,525,377 139.3% 197.8% $5,472,64i 5 LaCa'na.daFlfuf:l"idge . <$12,346,098 116.3% 118.4% $2,710,762 6 Duarte 210.3% $12,421,537 109.0% 120.3% > $20,095,731 7 Cal~aSas 94.2% ·.. $i1;746,565 94.1% 140.5% I $12,734,288 I 119.3% I 8 I Cudahy I 88.5% I $6,838,969 I 88.5% 254.3% 1 .$7i,o56;o&FFTT · 103.1%1 ·· ·. 9 I A.iri~~mi1; · · · l /&6.s%f ·. <$&,883,s18 r · 85.5% 194.7% $11,552,824 10 LaMirada 182.1% $24,253,682 85.1% 163.2% l $8,76(5o5< · ·· n Cemtos> · 11oAo/• • $67;305,842 77.9% ··-----86.9% $16,972,163 12 Commerce $36,051,479 77.1% ·. J14i2% ·· ··· <$8,54'7'.3~ · n srui M:itririo ' il4,i52;6o5 12.6% 87.2% $15,934,468 I 79.8% I 14 I Rancho Palos Verdes 150.8% .$1·1,560;364] >•• ••··•><·•·14.9%· 1···· is ·t· s~iiflo;~;•••••··•·•········· 171.7% $20,693,194 I 73.2% 16 I Santa Clarita 1863% 171 v .... .,,.,.,. •• ,...,.. 104.3% $33,552,248 18 Diamond Bar 124.9% •I·····.·· $1:5;135,669\ 19· sa-nmriili's<·· _ _____ 124.3% $46,915,238 20 Rosemead · 110.6% $11,385;761 · 21 · S6utt1Pas~deria < 76.2% $4,721,717 65.2% 22 La Puente ?L.7% .•.• $42,492,2# I? 61.4% 23 Paramolltlt ·. ··•· 76.5% $16,726,964 60.2% 24 Beverly Hills 86.4% ·. $IO;l09;075 <<. 57.6% 25 Santa F¢ Sprfugs 163.2% $10,451,853 55.2% 26 Whittier 181.7% $5,601,360 54.8% 27 SiimalHill 69.2% $10,541,790 53.9% 28 Malibu 59.1% $3,007,803 44.9% 29 Manhattan Beach 70.3% $22,674,738 43.7% 30 Rolling Hills Estates 67.1% $63,862,068 . .... .•.•••• 43.7% 31 Santa Mollica> · 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 114.3% $12,464,439 118.5% • $14,376,492 80.7% I $50,664,338 < 67.2%] ··•••••·••·$42,583~643·t··· 77.1% $12,616,200 · 172.1% $9,976;322 t> 87.2% $9,519,173 69;8% $11,757~341 l 78.5% $4,843,455 89;9%. s1t,335,035 r 69.8% $69,963,868 56.9% $23,978,015 64.7% $20,875,491 .. 173.3% $6,642291 77.4% $8,680,522 39.0% $18,134,492 46.9% $2,101,763 124;6% $117,225,871 71.4% 63.0% 58.4% 58.4% 56.7% 56.1% 56.0% 55.6% 50.6% 49.6% 45.5% 43.1% 42.0% 41.7% 36.2% 35.6% 35.2% 35.1% 127 3-155 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 9: General Fund Balance Indicators (Ranked Hi2hest to Lowest % Unassi2ned GF Balance) Fiscal Year 2-010-11 ·· .. ·.·· .:• Fiscal Year 2011-12 ·. ·. GFBalance % Unassigned GF Unassigned GF GFBalance% Unassigned GF Unassigned GF Rank City ofGFExp's Balance %ofGFExp's Rank City ofGFExp's Balance %ofGFExp's 32 Santa Monica 109.0% $108,382,191 40.0% 32 Artesia 47.8% $2,691,563 35.0% 33 Signal Hill .·· 170~8% $6;167,408 I t 39.1% ••.. 33 Palmdale> .·.·.· <>. 62.6% .•·. $16,4l5,346 . .... 34.6% 34 Glendale 81.9% $63,408,000 38.7% 34 Claremont 67.1% $6,227,688 31.7% 35 Manhattan Beach 40.0% < · .. $18,270,832 f >(< 36.7% ... ·.35 Covina ) > \> •· I•/·······. 35.6% - -:-·~--.. -;. ... ·:. · . . . . $9;187,601 < 31.1% 36 Palmdale 61.2% $17,472,584 36.5% 36 Norwalk 66.9% $10,668,298 29.9% --" _._ ______ --------· .....••..••.••.•.. 36.3%• •• 37 H:~"Wth~riie ·· <<.>28.9% ---------------- 37 Covina 41.0%. .·• < $10,284,466 . ·•· $14;iOQ,6to 28.8% 38 Santa Fe Springs 54.3% $16,439,102 35.4% 38 Carson 49.0% $15,971,310 26.4% 39 Cudahy 29.3% ·.· ... $6,707.195 . / • 33~6% 39 West Co-viJia 53.3% $13,187,181 24.4% 40 Hawthorne 70.9% $16,077,846 33.1% 40 Glendale 36.7% $37,852,000 23.3% 41 Malibu 89.9% .. $7,058,095. (< .. 31:2% 41 Hermosa Beaeh · · ... 24:5% $5,776,500 .· .... 23.3% 42 Burbank 67.0% $46,871,000 31.1% 42 Temple City 230.3% $2,352,402 22.5% 43 Claremont 58.8%. . > $6,149,503 •• > 30.'9",4 43 Lancl!Ster· . I > 71.4% ·• . $11,700;986 ·. · .•• 2L5% 44 Huntington Park 107.4% $9,153,901 30.7% 44 Torrance 36.7% $30,771,557 21.4% 45 Lancaster· •• 115.9% ·· $16,562,115 ? / 302%•.· 45 Arcadi~' / >•· / < I t 53.1%. $9,745,4$4 • .. ·•·.····· 20.3% 46 Rolling Hills Estates 38.6% $1,766,793 28.5% 46 South Gate 122.5% $7,216,043 19.5% 47 Norwalk 69.6% r $10,736,919 . / ... / < 25.4% 47 Lynwood ·. ., ...... ···••· .·· · ...•• 2-0'.4% $5,079,182 . 18.5% 48 Hermosa Beach 24.1% $5,635,231 23.2% 48 El Monte 52.0% $8,644,339 16.3% 49 Paramount 30:9% · ·· · '$11;1.20,ii:r .••.••.••.•••••.••.•.• ) 22.3% 49. Mo~tel>en6 c · · · >· •···•.• ... .· >tfr11% .. $7,-047,301 , •. : .••••.•• · ... 15.9% 50 Arcadia 58.2% $8,711:216 19.0% 50 Palos Verdes Estates 86.8% $1,605,774 15.7% •· --._ ·_··. <.: .-.· ... -. ·:.·· ·.~· .. · ··. : >/18.4% We8tHoUY\V!l()d.> / ·.·.· 127:1% .. ./ 51 Carson 40.9%• > $10,591,6.IQ : _51 · $9~95,3.B'·' ··.· 15.6% 52 Inglewood 18.3% $17,131,737 18.3% 52 El Segundo 18.9% $7,839,124 14.6% 53 Lynwood 23.3% · · $5;11s,452 <>< 182%'· 53 South ElMotite ···:·· ·•· •. · .. 29.8% .·· $1,294~23 ·. .•..... 13.2% 54 West Covina 57.2% $8,786,221 17.0% 54 Sierra Madre 71.6% $870,761 12.2% 55 El Monte 54.8% $8,440~16. / 16;9o/o· 55 Downey•· · · ..•• ··•· >. 28,7% $6,123,000 ···•······· 8.8% 56 Baldwin Park 76.4% $3,429,025 15.3% 56 Baldwin Park 71.3% $1,826,473 8.1% 57 Downey 30.7% $10,070;000 . >\ ·• > 14.8% 57 Monterey Palk : 48.2% $2,505,441 •.. · 7.8% 58 South Gate 124.5% $4,716,524 13.2% 58 Los Angeles 14.1% $272,905,000 6.7% 59 Pico Rivera 129.4% . $3,767,252 / ••••. ll.5% 59 Lakewood "149.1% $2,564,755 ••• 6.5% 60 Palos Verdes Estates 89.7% $1,111,013 10.7% 60 Lomita 69.0% $373,356 5.1% 61 Montebello 11.9% $4,394,672 // 10.5% 61 San Gabriel ·.· ·.· .. 25.3% $1,140,249. .·· 3.5% 62 El Segundo 23.2% $5,315,133 9.8% 62 . LongBeach 20.3% $4,857,000 l.3% 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 128 3-156 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Exhibit 9: General Fund Balance Indicators (Ranked Highest to Lowest % Unassigned GF Balance) Fiscal Year 2010-11 > Fiscal Year 2011-12 GFBalance% Unassigned GF Unassigned GF GFBalance% Unassigned GF Unassigned GF Rank City ofGF Exp's Balance %ofGFExp's Rank City ofGFExp's Balance %ofGFExp's 63 Torrance 35.4% $14,156;365 .• ::·.•· ·9.7% .. 63. ;w;bi~t?>··· ·······•··.·•·•··· . ·.·. tt8.7% $89,005 0.7% 64 Lomita 67.7% $619,957 8.5% 64 Alhambra 17.9,% $374,673 0.7% $2,505;441 . .••••.. · •.•.. · ···•••·· 8.3% .. ·65 Redrin<to Beach :•: ·•· · · > < 2id% > .· $383,446 65 Monterev Park· 43.4% 0.6% 66 Los Angeles 13.3% $253,882,000 6.5% 66 Gardena 23.5% $217,873 0.5% 67 Alhambra .· 20.0% $2,344;568 ........... ••. 4.7% . 67. :Bbtl (;:&de~> 177.6% · ... $0 0.0% . ·. •.·. 68 Lakewood 138.2% $1,258,266 3.2% 67 Burbank 56.8% $47,098,000 0.0% South El Monte ... $197,862. } . ........... /·• 69 18:7% 2:0% 67 GlendOra>··· . . . <66.7%· . . $0 0.0% 70 Gardena 23.9% $257,210 0.7% 67 Irwindale 326.3% $0 0.0% 71 Long Beach 17.4% .. ·. .· $682;000" < 0.2% 67 t~ veme < > ···· . .. 39.5% : ... : •· $0 0.0% 72 Glendora 78.6% $0 0.0% 67 Pico Rivera 129.5% $0 0.0% 72 Irwindale 384.7%. •< < $0 < · .•• 0.0% 67 p{)lll~ilk< · 3.()%·· ·• .$0 0.0% ·.· 72 La Verne 33.4% $0 0.0% 74 San Fernando (7.8%) ($1,572,548) (10.0%) .··:.:-".:" :·: . >< > . 0.0% .<15 .. 'Pa8iidefui°T . ----<ifo~r 72 Pomona ••75%·· .··•/•.• . ·.· .. ·•$0 . .· . •. ($40;l29,137) <23.1%) 72 Redondo Beach 21.2% $0 0.0% 76 Monrovia (27.5%) ($8,874,464) (27.7%) 72 Walnut 131.8%· · .. <$() ··•••·•••••· / .0.0% \Ti ... /········ .... .. (44.-0%) ····{$27.064,820) (47A%) . 78 Pasadena 25.7% ($1,390,808) (.8%) NA Azusa 79 San Gabriei ·. . .• 36.2% . (:$639°;86~) /i· (2:1%) NA .• \ //\ .. ·• r·.·.····· <: / :< > . · . 80 West Hollywood 128.2% ($1,266,412) (2.2%) NA Hawaiian Gardens 81 San Fernando· .•. (3.2%) . ($856.6953 (4.4%J ··NA liuiiti!J.lrtrin:P~k > · .·. . . .: ··:<: . ······· . )/ ... 82 Vernon 14.0% ($4,584,595) (8.2%) NA Inglewood 83 Azusa 53.5% •.• •($4~662:9611 ' ..•.. ·. 115.3%} NA La Habra Hei~ts • .· •· ·.· > .·.··•< > 84 Monrovia 10.4% ($8,392,252) (271%) NA Lawndale Source: Comprehensive Annual Financial Report (CAFR) or Basic Financial Statements obtained from each City. Financial information for FY 2010-11 or FY 2011-12 was not available from the cities of Avalon, Bell, Compton, and Maywood as of April 25, 2013. Financial information for FY 2011-12 was not available from the cities of Azusa, Bradbury, Hawaiian Gardens, Huntington Park, Inglewood, La Habra Heights, and Lawndale as of April 25, 2013. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 129 3-157 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT FINDINGS -FISCAL HEALTH 1. Most cities expended more than they received in revenues during FY 2011-12. 2. Most cities' total net assets and general fund balances declined during FY 2011-12, and several cities' ratios of total net assets to total liabilities are lower than desirable. RECOMMENDATIONS-FISCAL HEALTH 1 1. All cities should adopt financial planning, revenue and expenditure policies to guide city officials to develop sustainable, balanced budgets. 2. All cities should develop a balanced budget and commit to operate within the budget constraints. 3. All cities should not use one-time revenues to fund recurring or on-going expenditures. 4. All cities should adopt a method and practice of saving into a reserve or "rainy day" fund to supplement operating revenue in years of short fall. 1 See Exhibit 12 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 130 3-158 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT GOVERNANCE AND FINANCIAL MANAGEMENT BEST PRACTICES The current fiscal health of cities is largely due to the economic downturn that began in 2008 and continues. However, the overall governance and management practices of each city contributed to how well each city was prepared for this downturn, and how effectively each has responded. The following sections of this report present information on best practices for local governments in the areas of governance and financial management. Current practices by the cities are compared to these best practices and recommendations made for improvements. These best practices and recommendations should be useful to the cities in addressing their current financial challenges, and preparing for the future. The Grand Jury identified best practices for local governments in the areas of governance and financial 'management to be used as a basis for comparison with the practice of cities. A questionnaire was developed and administered to identify the current practice of cities in each of these areas. As part of this questionnaire cities were requested to provide specific documentation in each of these areas and to provide comments or explanations regarding their responses and policies. In the following sections, the Grand Jury provides information on the best practices identified, and compares the current practices of cities with these best practices. A copy of the questionnaire is provided in Appendix A of this report. The following table shows each city's response in each area. 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 131 3-159 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 132 3-160 CITIES FISCAL HEALIB, GoVERNANCE AND MANAGEMENT City = " ;;; .S:i 1 ~ il Q. = 'il ~ ,..; Exhibit 10: Overview of Go-vemance and Financial Mana ement Best Practices Questionnaire Re onses Governance t Audit Committee · AuditProcll~elllellt A~i:ic/l\&iu1ll i· · ; liralliil:Ethi~ .. -<1J1temal Colltr~iS/iM1il < ·• ritln Fund Public Reporting c s -~ "O .:i .. " = " E ~ ~ .... l'.l ~ ~ g>., " ~ = = 0 ,.; ;; 8 ~ ~ ~ ;; = = ~ ..; = .Si 'ii = ;; ~ ~ ;; = = ~ vi -~ ~ ~ .s -= tl iS = 0 "' ~ ~ = e ¥ .:i ,-: ! ·5 e = u ~ ;; E ~ g "E " "O = " 00 :l ~ "O ~ go "O .:i :!l i! £ ~ c. e e ~ 1 ~ ~ ;§ ~ ~ ~~ -~ "' :a 1 = .;. .:;; N ;; = = ~ ;; E ~ ..; N l'.l ·;:; ~ 'E " ~ vi N ~ -Q. ~ ; ~ .. = "' ~ "' N i! = e £ :~ ~ .,; N ~ ~ l:l :c; /;l .:;; "' .. = ·~ c. 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N<'· ::N :: c;::y;:: Y Y Y 18 .56% 78 Azusa I N I N I Y I Y I Y I Y I Y I N I Y I Y I N I N I Y I N I Y I N I Y I N I NA I N I N I Y I Y I Y I N I N I NA I Y I Y I Y I Y I Y I 19 I 59% I 74 Baldwin Park I •' I Y l Y f Y f Y I Y I Y f Y f:Z9 I 91% I 7 Bell Y N Y Y Y Y Y N Y Y Y Y 19 59"/o 74 Bell Gardens N N Y Y Y Y Y N Y : Y Y 20 6:3% 65 Bellflower Y Y Y Y Y Y Y Y 21 66% 56 BeverlvHills Y Y · Y Y Y Y y·· Y 27 84% 20 Bradburv IYINIYIYIYIYIY1NI Y IYININININIYINIYINIYIYIYIYIYININIYIYI Y INI Y IYIYl22l69"/ol50 Burbank ! Yl·Y lY· I Yl·Y 1 Y fy I Yf25f78%l31 Calabassas I N I N I Y I Y I Y I Y I Y I N I Y I Y I N I N I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I N I Y I Y I Y I Y I Y I Y I Y I 27 I 84% I 20 Carson I N I N j-yJ Y I Y f Y f I Y .J Y l18 I 56% I 78 Cerritos I Y I Y I Y I Y I Y I Y -1 Y I N I Y I Y I N I N I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I N I NA I Y I Y I Y I Y I Y I 28 I 88% I 14 Claremont y 1 y tv r:y-.1 y 1 y 1 y 1 v 1 v 123 1 72%>1 42 Commerce IYINIYIYIYIYIYIYI Y IYINIYINININIYIYIYINIYIYIYIYININIYIYI Y IYI Y IYIYl23l72%142 Comoton I N I N I N I N I Y.T Y I I I Y I 121 I 66% 1 56 Covina Y Y Y Y Y Y Y Y Y Y Y Y 26 81% 25 Cudahv N N Y N N Y Y N .<y · --y N Y 9 28% 87 Culver Ci Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y 30 94% 3 Diamond Bar Y N ·y N Y N Y N .-•>y•/ · . .y:.••" N -.: N••·•·· •·•••JI!>• :\y••' ·•:•y Y Y· ... · ·:•:N<:' ·:•••j..:[:\ \yi ·· Y Y Y 20 63% 65 Downe Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y NA Y Y Y Y Y 29 91% 7 Duarte Y Y Y Y Y Y Y N Y Y Y Y Y Y Y •-y NA Y Y Y Y Y 28 88% 14 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 133 3-161 CITIES FISCAL HEAL TH, Go VERN AN CE AND MANAGEMENT Citv = " 6: .:! N j il c.. 0 <i ~ ...; Exhibit 10: Overview of Governance and Financial Management Best Practices Questionnaire Reponses Governance / Andit Committee I Audit'Procurelllent fA..eet~. Manuar l Fraud /Ethia f< Interllal ControJS /Audit< Teen Fund I Public Reporting ~ E :J :a .5 1l iii E ~ ~ ... ~ ~ .. gi, " = ~ c = e ..; ~ ;; 0 (.!) .~ ~ ~ ;; = c .'i! ..; ~ = ;; ~ ~ ~ ;; = c c < .,; _g ~ i! ~ .5 -0 1l = c e '° ~ ~ !i s ~ .s ..: ~ ·5 e e = -g < ;; E ~ g "E ~ c !! "' 1l !i "" ~ "" .5 :d ~ ~ £ t e e ~ ] " j .. ;§ "" = < ~ ] = "" = 1 c ~ = "' ;; = c ~ ;; E ~ ..; "' :~ ~ il ;; ;3- .,; "' ~ 'c.. ~ -= ~ ., = "" ~ '° "' i! = ] £ :~ ~ =' "' ~ £ -~ ~ = .., .. c t 0 i = 0 ~ = e ...; .., il -~ ~ ~ § c e ... .., il ii e 1l ~ ~ ] c e .,; .., .. "" '§ 0 ] c e '° .., l = ;; ~ ] c e ..: .., ] c 5 1l 0 ~ ~ ~ ] ~ .. .., ~ = .:I ~ -~ ~ e =' .., = .:I ~ = "' ;:$ ;; E ~ ~ .~ ~ 1l = " ;; ~ "" = rZ ~ -a c rZ ~ -= = ~ 0 ~ .. .... ! cl> 8 < ~ " = .,. ~ ...; "' :l !i ~ ~ = fi; "' ] != &i ] :a ~ "' ~ "" ~ "" .5 :;i ~ ~ ~ £ u § ~ ..; "' E!Monte I Y I N I Y I Y I Y I Y I Y I N I Y I Y I N I N I N I N I N I N I N I Y I N I Y I Y I Y I Y I Y I N I Y I Y I Y I Y I Y I Y < ~ .: .. ;; ~ If .,; "' y ~ c g, ~ ~ ~ ~ e = z Resnlts ~ ~ ~ ~ ~ c 1l il c.. 22 I 69% -~ a .. § e < ... c " ~ 50 EIS=mdo I Y I Y I Y I Y I Y I Y I Y TN Y 1 Y I Y y 27 84% I 20 Gardena IYINIYIYIYIYIYINI Y IYININIYIYIYIYINININIYIYIYIYI INIYINI Y IYI Y IY y 23 72% 42 Glendale I y I y I y I y I y I y I y r+ I I y I y y 30 I 94% 3 Glendora I Y I Y I Y I Y I Y I Y I Y I N I Y I N I N I N I Y I N I Y I N I N I N I N I N I Y I Y I Y I Y I N I Y I Y I Y I Y I Y I Y I Y I 22 I 69"/o I 50 Hawaiian Gardens Y Y Y Y Y Y Y 24 75% 36 Hawthorne N Y Y Y Y Y Y Y 20 63% 65 Hermosa Beach I N I N I Y I Y 1 · Y I N I i Y I Y I Y I 24 l 75% I 36 HiddenHills N N Y N N Y Y N Y N N Y Y N N Y Y Y Y N Y Y Y Y Y Y N 18 56% 78 HuntilllrtonPark N N Y Y y· Y ·:y · .·:N.; <y/ f?:•:y./ Y· ·N.' ·N Ni' N Y• y> :r.i<· )y\)yO:. y> Y Y Y Y 21 66% 56 Indus NNYNNY NNN Y Y NY928%87 lriglewood N N Y N Y· N ·Y N · Y Y Y Y Y 17 53% 83 Irwindale Y Y Y Y Y Y Y N Y Y Y Y Y 26 81% 25 La Canada-Flintridae y y y . y y . y v·: ~y·:: /y\o y . y y y 26 81% 25 LaHabraHei hts N N Y Y Y Y Y Y Y 23 72% 42 LaMirada Y Y Y Y Y N Y Y Y 21 66% 56 La Puente I Y I Y I Y I Y I Y I Y ·I Y I N I Y I Y I Y I N I Y I N I Y I Y I Y I Y I N I Y I N I Y I Y I N I N I I I Y I Y I Y I Y I Y I 24 I 75% I 36 La Verne l Y I y I y. I Y I Y I Y 1 y I Y I Y I Y I 26 I 81% I 25 Lakewood I Y I Y I Y I Y I Y I Y I Y I N I Y I N I N I N I Y I Y I Y I N I Y I N I N I Y I Y I Y I Y I Y I N I Y I Y I Y I Y I Y I Y I Y I 25 I 78% I 31 Lancaster I YIN I YI YIN I y I vJYff lvlNlNlffNfYfiJ:Yl.il~N}Y<IYIYI vlNl'NltF'N·fYTv Iv I YI Y l24J75%IJ6 Lawndale IYINIYIYIYIYIYIYI Y IYINIYIYININIYIYINIYIYIYIYIYIYINININAI Y IYI Y IYIYl23l72%\42 Lomita I N I N I y I y I y I y l y I y l y q y Ty r N fN l N l N IN l N I N I y l i( I N I N I y l y l N l y l .y I y I y l y I y I y I 20 I 63% I 65 Lon Beach Y Y Y Y Y Y Y Y Y Y Y Y 31 97% LosAn~el!'S Y Y Y N' N3 Y Y Y Y Y Y Y 27 90% I 13 L nwood Y Y Y Y Y Y Y Y Y Y ·N N Y Y Y N Y Y Y Y Y Y 29 91% 7 Malibu N N Y Y Y Y Y Y Y N · N N Y Y Y Y Y Y Y Y Y Y 26 lH% 25 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 134 3-162 CITIES FISCAL HEAL TH, GoVERNANCE AND MANAGEMENT Exhibit 10: Overview of Governance and Financial Mana ement Best Practices Questionnaire Re onses Governance I 4udit Committee < ··.·Audit :Proefu.e~~nf; ,A.Cttg. Mannai < Fraudf Etbi(i > 0 :fu(ei-ii::de~ntr~ls/Audit { Gtiil J?und Citv = " ;;:; .r. ~ :: ri'i 11 Cl. c 1l ~ i:l ...; .i 'O .:; !l iii E ~ ~ ... ! ~ ~ " ~ = = Cl ,.; .; c " ~ ~ ~ -; = = < ~ ~ = -; ~ ~ ~ -; = = < .,; -~ Ci Cl. i! ~ .:; -c tl = 8 ..; s £ ii .s ~ .:; ,-: ~ -~ E (l :a < -; E ~ ~ 'E " 'O = cE !l = ~ ii ~ 'O .:; !!! ~ e Cl. " ~ "i Cl. E Cl ~ ] " ! ~ ~ 'O = < ~ ~~ -~ "' ;;:: 'O 1 = ~ 0 ... -; = iii :>1 -; E ~ ~ ... .! .r. ~ 'O ~ " 'O Cl. ;:i .,; ... -Cl. ~ ... ;; < " = "' ~ ..; ... Manhattan Beach Y Y Y Y Y N Y Y N N N N Y i! = ] ~ -~ £ "' ... -~ ~ .r:! ... r::l 0 "' .. ~ c ~ ,; c ~ = Cl ...; "' 11 ~ ~ i = Cl 1;l ] ii E 6 ~ ~ ] = Cl .,; "' N " 'O ·e ~ ~ ] = Cl ..; "' 11 ;; = -; ~ ~ f ;; Cl ,-: "' 'O ~ = " E 6 ~ ~ ~ ~ ~ .; .., ~ = ~ -~ ~ Cl "' "' = ·E = ri: ;:$ -; E ~ rJ -~ ~ !l = " -; ~ -g ri: ,-: ... ~ 'O = = r.. ~ ;S = ~ ~ .; ... ~ ii f ~ " = .,. ~ ~ "' · PublieRenorting ¥l ii E ~ s "' ,; ii; i' E E::: &i ] 'O ~ £ ~ 'O ii ~ .:; :;i ~ ~ a = c ~ ~ "' Cl t3 .E i ~ if ::i ~ = 8. ~ " ~ ~ ii ,, E = z Resnlts ~ = c Cl. ~ " .:: ~ ;:. = ~ ~ ~ .. = ~ .:< ~ Mavwooo y y N. y N N y( ; >i) ·'::ic :::y ; N N N 18 56% 78 Monrovia Y Y Y Y Y Y Y Y Y 26 81% 2S Montebello Y N Y Y Y· · y· Y Y Y 19 59% 74 Monterre Park Y Y Y Y Y Y Y Y Y Y 29 91% 7 Norwalk Y Y . N Y Y Y 19 59".4 74 Palmdale I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I N I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I Y I N I Y I Y I Y I Y I Y I Y I Y I 29 I 91% I 7 Palos Verdes Estates I N lY fy I 1'i l N l :N<J 20 l 63WHiS Paramount I Y I N I Y I Y I N I Y I Y I N I Y I Y I N I Y I Y I Y I Y I Y I N I Y I Y I N I Y I Y I N I Y I N I N I NA I Y I Y I Y I Y I Y I 21 I 66% I S6 Pasadena I Y I Y •j Y y>j Y I 28] 118% I 14 Pico Rivera •; Y Y Y Y Y 28 88% 14 Pomona Y Y Y · Y · Y ·. Y 29. 91% · 7 Rancho Palos Verdes N N N Y Y Y 20 63% 6S Redondo Beach N •y·:: }y 3i. 97% 1 Rollin Hills N N Y Y N Y Y Y 22 69"/o SO Rolling Hills Estates N Y . Y · •y Y Y · Y Y 27 84% 20 Rosemead Y Y Y N Y Y Y 23 72% 42 San Dimas N N ·:N:•••• . Y Y 23 72% ·42 SanFemando N N N N N Y Y Y Y 14 44% 8S SanGabriel Y Y· Y Y Y Y Y Y Y 2:3 72% 42 SanMarino Y N Y N Y Y Y N Y N Y Y Y Y Y 22 69% SO Santa Clarita Y N ·y Y Y. Y N <y\: ;;y Y ··• y'. Y Y 24· 75% 36 Santa Fe Springs I Y I N I Y I Y I Y I Y I Y I N I Y I N I N I Y I Y I N I Y I N I Y I N I N I Y I N I Y I N I N I N I N I NA Y I Y I Y y Y I 17 I 53% I 83 Santa Monica ] Y I Y l Y I .Y I Y I Y I Y I N NI y y y 120163%165 SierraMadre I Y I Y I Y I Y I Y I Y I Y I N I Y I Y I N I N I N I Y I Y I N I Y NINAIYIYIYIY Y I N I Y I Y Y I Y I Y y y 25 I 78% I 31 Signa!Hill I YI YI YI YI YI YI Y l NI yJy.j:N.J'•NJ'ylyfyJ'y I Y Y I y.'f.:YT'Y J<yJ• Y Y·l•,y :1 y>f•y y··LY l·····y y y 30cl94%l3 2012-2013 Los ANGELES COUNTY CIVn. GRAND JURY REPORT 135 3-163 Citv = " 5: "' ... .El ~ "' ] c. " -;; ~ ,...; CITIES FISCAL HEAL TI!, Go VERN AN CE AND MANAGEMENT Exhibit 10: Overview of Governance and Financial Mana2ement Best Practices Questionnaire RePOnses Governance I Audit Committee I· . Audit Procllrelli~nt lActt2'. Maimall . n Fraud/Ethics ? k ;lllteiiilJ.1 Controls) Audit . 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I .···~··· 1 . ·~ I . ~·. y y NIYINIYIYINIYIYINININAI Y IYI Y IYIYl22l69%l50 South Pasadena Southgate Y ~ N Y. N Y y·y 0 N' Y N N Y Y Y Y 21 66% 56 YIYIYIYIYIYIYINI Y YINIYINININ y N Y Y Y Y Y 21 66% 56 Temple City Y l Y I Y TY .j Y I Y I Y .I N I Y .yJ Iii l'Nf.YlYt·v N y y . y y y 25 78% 31 Torrance Y Y Y Y Y Y Y Y Y Y Y N Y Y Y Y Y Y YININAIYIYIY Y I Y I 28 I 88% I 14 Vernon Y Y Y Y Y Y Y Y Y Y Y•:: ::y : f)t : \(' ':y Y Y ·.·y·fv<I N.\fy>jyjy y y 30 94% 3 Walnut Y Y y N Y Y Y Y Y Y Y 27 84% 20 WestCovina Y N · .. N ·N;c NA Y. Y . Y Y Y 14 44% 35 YYYYYYYN Y YNNYYY N Y Y Y Y Y Y YY y y y y·· y y y N y··y y y y Whittier YY YYYYN Y Y Y YY 62 52 74 '76 Si 86 28 83 . 88 85 84 Percentage 70% 590/o 50% 100% 94% 100% 97% .. · A~~~ iiJ;i;I;;.,; a~di>erc;;;;u,~~ ~f Positive Responses .-~--~ ··~ f~~~7£~~-~;;1w111c~~~·~·~~~~·· 4. For all cities a No is considered a positive response for Question 20. Does your city iillow the:initependentauditor to provide non-andit. sU'1ic<iS to th~·4i:yf <• · . . . . . . . 2012-2013 LOS ANGELES COUN1Y CIVIL GRAND JURY REPORT 136 3-164 GOVERNANCE PRACTICES The quality of the leadership of an organization determines its performance and effectiveness. An organization with effective leadership prepares for and quickly resolves issues and challenges, provides clarity of direction and roles and establishes real accountability for the organization. "Governance" describes the role of the city council in providing leadership for an organization. Governance generally includes responsibility for providing the overall direction for the organization, making key decisions for the organization through policy, and overseeing the organization's performance. Key tools of effective governance include strategic planning and management including performance measurement and monitoring. The city council in each city is responsible for governing the organization. Strategic Planning The role of any city council is to provide strategic focus and direction for the city. Oversight is also an important function for any city council, ensuring that organizational activities are consistent with legal requirements and its own policies and procedures. Since the city council of each city controls the focus and direction of the organization, the risks posed by ineffective leadership are substantial. Strategic planning is a disciplined effort to produce fundamental decisions and shape and guide what an organization is, what it does and why it does it. When the strategic plan is linked to operations, all groups in the organization have a clear understanding of its purpose, the strategies used to achieve that purpose and the progress being achieved. The International City/County· Management Association (ICMA) is the professional association of city and county managers and administrators. The following excerpt is from the ICMA's publication: Strategic Planning: A New Perspective for Public Managers (2002). Strategic thinking and planning is one of the most critical elements of public management. Its purpose is to establish long-term goals, annual objectives, and detailed actions/strategies that address issues related to performance, productivity, required statutory services, and community and personal well-being. Yet even though it is a key factor in the success of any organization, efforts to implement strategic thinking and planning often fail. In addition the Government Finance Officer's Association recommends that: ... all governmental entities use some form o.f strategic planning to provide a long- term perspective for service delivery and budgeting, thus establishing logical links-between authorized spending and broad organizational goals.(GFOA: Recommended Budget Practice on the Establishment of Strategic Plans (2005)(Budget). 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 137 3-165 Most cities (62 yes, 24 no, 2 not documented) responded that the city council developed and adopted a strategic plan that articulates the mission, vision, core values and priorities for the city. The Grand Jury asked each city to provide a copy of their strategic plan. In the review of this documentation and comments provided by the cities the Grand Jury found that several cities had developed and adopted comprehensive strategic plans. Other cities developed mission, vision, core values and goals through strategic planning sessions with the city council. These strategic planning efforts include assessments of the city's strengths, weaknesses, opportunities, and threats, and included identification of specific strategies and initiatives with responsibility for completion and timelines. Many of these cities conduct follow-up sessions every six months to monitor and evaluate progress and any changes in priorities. These strategic plans also provide appropriate strategic focus and direction for these cities. Several cities that responded that they had adopted strategic plans provided documentation of annual or. biennial budget goals adopted. While these are important for the budget, they are typically focused on the short term. Budget goals do not provide the appropriate strategic focus for these cities that would be accomplished through a strategic planning effort. A few cities submitted a copy of the city's general plan as their strategic plan. Every city is required to have a general plan by state law (Government Code section 65300). The purpose of a general plan is to define the city's physical development and focuses primarily on land use. A general plan does not meet any standards for an organizational strategic plan. Performance Measurement Performance measurement demonstrates the success of organizational activities in addressing a specific need. Meaningful performance measurement includes a balanced set of indicators, ensures the collection of reliable indicator data, provides for the analysis and reporting of indicator information and drives service improvement efforts and the testing of new initiatives. Performance measures should generally be quantified to allow for comparison of performance from year to year. The following is an excerpt from the Government Finance Officers Association recommended best practice regarding performance management and indicators: ... program and service performance measures (should) be developed and used as an important component of long term strategic planning and decision making which should be linked to governmental budgeting. Performance measures should: • Be based on program goals and objectives that tie to a statement of program mission or purpose; • Measure program outcomes; • Provide for resource allocation comparisons over time; • Measure efficiency and effectiveness for continuous improvement; • Be verifiable, understandable, and timely; • Be consistent throughout the strategic plan, budget, accounting and reporting systems and to the extent practical, be consistent over time; 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 138 3-166 • Be reported internally and externally; • Be monitored and used in managerial decision-making processes; • Be limited to a number and degree of complexity that can provide an efficient and meaningful way to assess the effectiveness and efficiency of key programs; and • Be designed in such a way to motivate staff at all levels to contribute toward organizational improvement. (GFOA: Performance Management: Measurement for Decision Making (2002 and 2007) Budget) Most of the cities (52 yes, 36 no) also responded that the city council had adopted performance measures on priorities. The Grand Jury asked each city to provide copies of their performance measures or indicators. In reviewing this supporting documentation and comments provided by the cities the Grand Jury found several cities had developed performance indicators tied directly to the strategic goals adopted by the council. Several cities that responded indicated they had developed and reported on performance measures. However, they did not provide any documentation on performance measures. Other cities' performance information was not quantified, or was focused on activities or workload, with little or no information on results or outcomes. Cities that have not developed and reported on performance measures or indicators to evaluate outcomes on priorities should consider do so. These performance measures should be quantified, focused on results. Information should be provided for several years to allow evaluation of progress over time. City Council and Executive Relationship Effective governance requires that formal structures and practices define how the city council carries out its duties. Many city councils develop and document bylaws, policies and procedures that clearly define the role of the city council members. Specific areas in which policies are most often needed include the role of city council members and the executive. The relationship between the city council and management is extremely important. Cities operate most effectively when there is a clear definition and understanding of the city council's role, management's role and the difference between the two. The city council's role should be to provide policy direction and oversight. Management's role is to execute that direction. It is also important for city council members to recognize that their authority only exists when acting as a body. Individual members of a city council have no authority to make decisions or direct the city's management or city staff. Only decisions and directives of the city council, acting as a whole, are authoritative and binding. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 139 3-167 Most cities (86 yes, 2 no) responded that they have a formal policy that documents the roles of the city council and the city's executive. The Grand Jury asked each city to provide a copy of the formal policy defining roles. In reviewing this documentation and comments provided by the cities the Grand Jury found all cities had defined the basic qualifications, powers and duties for both the city council and the city's executive in either the city's charter, municipal code, or both. These policies provide a solid legal foundation for the relationship between the two. A best practice is to go beyond this basic framework and develop a more detailed description of the relationship and working approach of the two. Some have developed a comprehensive "governance" policy that defines the working relationship between the city council, executive, and staff. While not required, this more extensive "governance framework" can improve the cohesion and effectiveness of both the city council and the executive. Executiv~ Goals and Evaluation A key role of each city council is providing clear direction to the city's executive. This clear direction should establish specific expectations for the executive and consist of goals and objectives to be accomplished within timeframes. Equally important is for the city council to evaluate the performance of the city's executive, providing meaningful feedback on how well expectations are being met. These evaluations should be accomplished routinely. Most of the cities (7 4 yes, 14 no) also responded that the city council established specific goals for the executive at least annually. Most of the cities (76 yes, 12 no) also responded that the city council conducts a meaningful evaluation of the executive's performance annually. The Grand Jury requested the specific goals established most recently for the city's executive. In reviewing this documentation and comments provided by each, the Grand Jury found that several cities had established very specific goals for the city's executive. Other cities established goals for the city's executive as part of the strategic planning efforts, the budget document, or the city's executive budget message. Several cities reported that the goals for the city's executive were part of the performance evaluation process and were considered confidential. City councils should develop a "governance" policy that more specifically defines the relationship between the council and executive. City councils that do not develop specific annual goals for the city's executive and conduct meaningful evaluations annually should do so. Council-Adopted Policies Other areas in which policies are most often needed include "Conflict of Interest" and "Investment" policies. Transparency in public decision-making is essential. The public must be able to rely on their representatives working in their best interest. California Government Code sections 81000, et seq. ("Political Reform Act"), requires every state and local government agency to adopt a conflict of interest code. The Political Reform Act further requires every agency to review its conflict of interest code biennially to determine if it is accurate or must be amended. The conflict of interest code must be amended when necessitated by changed circumstances. 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 140 3-168 California Government Code section 53646 requires the city council of each city to annually adopt an investment policy. The investment policy is intended to maximize the efficiency of the city's cash management system, the investments of the city's funds, and to provide guidelines for suitable investments. The primary goal of the investment policy should ensure compliance with the law, provide protection of principal, maintain liquidity, and maximize investment income. Most of the cities (81 yes, 7 no) responded the city council adopted and enforces a formal "Conflict of Interest" policy. The Grand Jury requested each city provide a copy of the adopted "Conflict of Interest" policy. Almost all the cities (86 yes, 2 no) also responded they had adopted an "Investment" policy. The Grand Jury requested each city provide a copy of the adopted "Investment" policy. In reviewing this documentation the Grand Jury found that cities responding "yes" had provided investment policies. Artesia did not respond to this question, which was recorded as a "no." Maywood responded "no", but also stated that the city did not have any investments at this time. FINDINGS -GOVERNANCE PRACTICES 1. Most cities have developed strategic plans to provide appropriate strategic focus and direction for the city. 2. Most cities have developed performance measures to demonstrate the results of their organizational activities and goals. 3. All cities stated they have a formal policy agreement, or other documents that define the roles of city council and city executive. 4. Most city councils have established specific goals for executives at least annually. 5. Most cities have adopted a "Conflict oflnterest" code. 6. Most cities have adopted an "Investment" policy. 7. Most cities published their financial reports or CAFR to their website. RECOMMENDATIONS-GOVERNANCE PRACTICES 2 1. Cities should develop and adopt a strategic plan that articulates the mission, vision, core values and priorities for the city. 2. Cities should develop and report on performance measures or indicators to evaluate outcomes. These performance measures should be quantified, focused on outcomes, and information should be provided for several years to allow evaluation of progress over time. 3. City councils should develop specific annual goals for the city's executive. 4. City councils should conduct meaningful evaluations of the city's executive at least annually. 5. Cities should publish their financial reports or CAFRs on their city's websites. 2 See Exhibit 12 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 141 3-169 FINANCIAL MANAGEMENT PRACTICES The role and responsibility of financial management within each city is to manage and protect the financial resources of the city. This includes planning, organizing, directing and controlling the financial activities of the city. It also requires establishing adequate systems of internal controls to ensure funds are used for their intended purposes. The transparency and reliability of financial reporting is also important, ensuring that such reporting is consistent with appropriate standards. The Government Finance Officers Association is the association for public sector financial management professionals. Its purpose is to enhance and promote the professional management of governments for the public benefit. It identifies and develops financial policies and best practices and promotes their use through education and training. It works closely with the Governm~ntal Accounting Standards Board (GASB), the American Institute of Certified Public Accountants, and other organizations and recommends best practices for effective government finance operations. Beginning in 1993 the Government Finance Officers Association began to develop a body of recommended practices in the functional areas of public finance. This gave Government Finance Officers Association members and other state and local governments more guidance on sound financial management practices. These recommended practices served as the basis for evaluating the financial management practices of the cities discussed in the following sections .. Audit Committee The responsibility for the quality of financial reporting by cities is shared by three groups: the city council, finance department, and the independent auditor. Of these three, the city council is in the unique position of being the ultimate monitor of the financial reporting process. An audit committee is a practical approach for the city council to provide independent review of the city's financial reporting processes, internal controls, and independent auditors. The audit committee can also provide a forum for interested parties to candidly discuss concerns separate from the management of the city. An effective audit committee helps ensure management develops and follows a sound system of internal controls, procedures are in place to objectively assess practices, and independent auditors objectively assess financial reporting practices. The following are excerpts from the Government Finance Officers Association recommended best practice regarding audit committees: The governing body of every state and local government should establish an audit committee or its equivalent; The audit committee should be formally established by charter, enabling resolution, or other appropriate legal means and made directly responsible for the appointment, compensation, retention, and oversight of the work of any independent accountants engaged for the purpose of preparing or issuing an independent audit report or performing other independent audit, review, or attest services. Likewise, the audit 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 142 3-170 committee should be established in such a manner that all accountants thus engaged report directly to the audit committee. The written documentation establishing the audit committee should prescribe the scope of the committee's responsibilities, as well as its structure, processes, and membership requirements. The audit committee should itself periodically review such documentation, no less than once every five years, to assess its continued adequacy; (GFOA Audit Committees (1997, 2002, 2006, and 2008) (Committee on Accounting, Auditing, and Financial Reporting--CAAFR). Most cities (28 yes, 59 no, I not documented) responded that an audit committee had not been established. For those cities that did have an audit committee, the Grand Jury requested each city provide a copy of the formal document establishing the audit committee. Some cities stated that the audit committee responsibilities were assigned to other committees of the city council. For other cities the audit committee is a function of management, with members from the finance departme:o.t and other departments of the city. The Audit committee should not be a function of management. Audit Procurement Independent audits play a key role in preserving the integrity of public finance functions and maintaining public confidence in city government. Each city is required to have an independent audit performed annually by external accountants. The selection of the independent auditor is an important element of ensuring a quality audit. This includes ensuring the selected auditor meets standards for independence and is selected competitively. Provision of non-audit services must be carefully reviewed and approved. The following are excerpts from the Government Finance Officers Association recommended best practice regarding audit procurement: Governmental entities should require in their audit contracts that the auditors of their financial statements conform to the independence standard promulgated in the General Accounting Office's Government Auditing Standards even for audit engagements that are not otherwise subject to generally accepted government auditing standards. Governmental entities should enter into multiyear agreements of at least five years in duration when obtaining the services of independent auditors. Such multiyear agreements can take a variety of different forms (e.g., a series of single-year contracts), consistent with applicable legal requirements. Such agreements allow for greater continuity and help to minimize the potential for disruption in connection with the independent audit. Multiyear agreements can also help to reduce audit costs by allowing auditors to recover certain "startup" costs over several years, rather than over a single year. Governmental entities should undertake a full-scale competitive process for the selection of independent auditors at the end of the term of each audit contract, consistent with applicable legal requirements. Ideally, auditor independence would be enhanced by a policy requiring that the independent auditor be replaced at the end of the audit contract, as is often the case in the private sector. Unfortunately, the frequent lack of competition among audit firms fully qualified to perform public-sector audits could make a policy of mandatory auditor rotation counterproductive. In such cases, it is recommended that a 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 143 3-171 governmental entity actively seek the participation of all qualified firms, including the current auditors, assuming that the past performance of the current auditors has proven satisfactory. Except in cases where a multiyear agreement has taken the form of a series of single-year contracts, a contractual provision for the automatic renewal of the audit contract (e.g., an automatic second term for the auditor upon satisfactory performance) is inconsistent with this recommendation. Professional standards allow independent auditors to perform certain types of non-audit services for their audit clients. Any significant non-audit services should always be approved in advance by a governmental entity's audit committee. Furthermore, governmental entities should routinely explore the possibility of alternative service providers before making a decision to engage their independent auditors to perform significant non-audit services. The audit procurement process should be structured so that the principal factor in the selection of an independent auditor is the auditor's ability to perform a quality audit. In no case should price be allowed to serve as the sole criterion for the selection of an independent auditor. (GFOA: Audit Procurement ( 1996 and 2002). All cities (88 yes, 0 no) responded that audit contracts require auditors of financial statements conform with independence standards. The Grand Jury obtained the audited financial statements for most cities for Fiscal Years 2010-11 and 2011-12, the most recent available. In reviewing this supporting documentation and comments provided by each city the Grand Jury found that all independent audit reports included statements of compliance with auditing standards, including standards of independence. Most cities (71 yes, 1 7 no) responded that independent auditors were selected through a competitive process. The Grand Jury requested each city provide copies of formal policies related to audit procurement. In reviewing this supporting documentation and comments provided by each city the Grand Jury found that most issue a Request for Proposals (RFP) for audit services, typically with a term of up to 5 years. Most cities (9 yes, 79 no) do not require the auditor to be replaced at the end of the contract term. Also most cities (25 yes, 63 no) responded that they do not allow the independent auditor to provide non-audit services. The Grand Jury also asked each city how many years the current independent auditor conducted the annual city audit, and how long the term of the current independent audit contract was. The exhibit below shows city responses. Exhibit 11: Responses to Questions on Independent Auditor Contract Term City 17. Years with 18. Audit Contract Term Current Auditor Agoura Hills 3 3 + 2 one year renewals Alhambra 7 5 Arcadia 2 4 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 144 3-172 Exhibit 11: Res onses to Questions on Inde endent Auditor Contract Term City Artesia Hawthorne Irwindale LaCanada- Flintrid e La Habra Heights 17. Years with Current Auditor 1 18 5 ears 2 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 18. Audit Contract Term 3 ears 3 1 ear 3 145 3-173 Exhibit 11: Res onses to Questions on Inde ·endent Auditor Contract Term City 17. Years with 18. Audit Contract Term Current Auditor La Mirada Verdes RedondcrBeach > Rollin Hills E;ollin_g$.Uls :·· · Estates> > · · San Marino Santa Clarita Santa Fe S rin s Four (4) ears. One 1) ear. Santa Monica 1.5 5 Sierra Madre 1 3 with option to extend to 5 years 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 146 3-174 Exhibit 11: Res onses to Questions on lode endent Auditor Contract Term City 17. Years with 18. Audit Contract Term Current Auditor Whittier 2 3 Accounting Policies and Procedures Formal documentation of accounting policies and procedures is an essential component in providing effective controls over accounting and financial reporting, as well as providing a comprehensive framework of internal controls. Accountability requires a well-designed system of documenting accounting policies and procedures. Documentation can also provide a useful training fool for financial staff. The following are excerpts from the Government Finance Officers Association recommended best practice regarding accounting policies and procedures: Every government should document its accounting policies and procedures. Traditionally, such documentation has taken the form of an accounting policies and procedures manual. An appropriate level of management to emphasize their importance and authority should promulgate accounting policies and procedures. The documentation of accounting policies and procedures should be evaluated annually and updated periodically, no less than once every three years, according to a predetermined schedule. Changes in policies and procedures that occur between these periodic reviews should be updated in the documentation promptly as they occur. A specific employee should be assigned the duty of overseeing this process. Management is responsible for ensuring that this duty is performed consistently. The documentation of accounting policies and procedures should be readily available to all employees who need it. It should delineate the authority and responsibility of all employees, especially the authority to authorize transactions and the responsibility for the safekeeping of assets and records. Likewise, the documentation of accounting policies 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 147 3-175 and procedures should indicate which employees are to perform which procedures. Procedures should be described as they are actually intended to be performed rather than in some idealized form. Also, the documentation of accounting policies and procedures should explain the design and purpose of control related procedures to increase employee understanding of and support for controls. (GFOA: Documentation of Accow1ting Policies and Procedures (2002 and 2007) (CAAFR). Most cities (68 yes, 20 no) responded that accounting policies and procedures were formally documented in an accounting policies and procedures manual. Most cities (72 yes, 16 no) also responded that accounting policies and procedures specifically define the authority and responsibility of all employees, including the authority to authorize transactions and the responsibility for safekeeping of assets and records. The Grand Jury requested each city provide copies of their accounting policies and procedures and accounting manual. In reviewing this supporting documentation and comments provided by each city the Grand Jury found several cities had very comprehensive and detailed accounting policies and procedures. These included specific authority and responsibility of employees. Other cities had very high level and brief policies and procedures, with very little detail, and with very little information on the specific authority and responsibility of employees. About half the cities ( 45 yes, 43 no) also responded that the accounting policies and procedures were reviewed annually and updated at least once every three years. The Grand Jury found very little indication that policies and procedures were being reviewed and updated. Most policies and procedures did not include an effective date or a revision date. Reporting of Fraud, Abuse and Questionable Practices Most cases of fraud, abuse or questionable accounting or auditing practices, come to the attention of those responsible through employees or members of the public. In addition, accounting and auditing standards require financial reporting systems to be designed to detect fraud and abuse. They also detect any questionable accounting or auditing practices that could jeopardize the integrity of the financial reporting system. The following are excerpts from the Government Finance Officers Association recommended best practice regarding reporting of fraud, abuse and questionable practices: The Government Finance Officers Association recommends that every government establish policies and procedures to encourage and facilitate the reporting of fraud or abuse and questionable accounting or auditing practices. At a minimum, a government should do all of the following: • Formally approve, and widely distribute and publicize an ethics policy that can serve as a practical basis for identifying potential instances of fraud or abuse and questionable accounting or auditing practices. • Establish practical mechanisms (e.g., hot line) to permit the confidential, anonymous reporting of concerns about fraud or abuse and questionable accounting or auditing practices to the appropriate responsible parties. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 148 3-176 • A government should regularly publicize the availability of these mechanisms and encourage individuals who may have relevant information to provide it to the government. • Make internal auditors (or their equivalent) responsible for the mechanisms used to report instances of potential fraud or abuse and questionable accounting or auditing practices. Emphasize that they should take whatever step~ are necessary to satisfy themselves that a given complaint is without merit before disposing of it. Further, they also should document the disposition of each complaint received so it can be reviewed by the audit committee. • Have the audit committee, as part of its evaluation of the government's internal control .framework, examine the documentation of how complaints were handled to satisfy itself that the mechanisms for reporting instances of potential fraud or abuse, and questionable accounting or auditing practices are in place and working satisfactorily. (GFOA: Encouraging and Facilitating the Reporting of Fraud and Questionable Accounting and Auditing Practices (2007) (CAAFR). Most cities (54 yes, 34 no) responded that they have policies and procedures to encourage and facilitate the reporting of fraud, abuse and questionable accounting or auditing practices. Most cities (52 yes, 35 no, 1 not documented) also responded that they have a formally adopted, widely distributed and publicized ethics policy. In reviewing the supporting documentation and comments provided by the cities the Grand Jury found several cities had very comprehensive policies and procedures on reporting fraud, abuse and questionable acts. These included definitions of fraud and abuse. Also, included are clear responsibilities for employees, and guidelines and steps for investigating allegations and reporting the results. Other cities had very limited policies, such as statements that all city employees follow the highest ethical standards, or have adopted specific policies regarding reporting of travel expense reimbursement. Several cities (33 yes, 55 no) responded they have a practical mechanism, such as a fraud hot line, to permit the confidential, anonymous reporting fraud, abuse or questionable practices. However, in review of the documentation and comments the Grand Jury found very few had a hotline for confidential and anonymous reporting. Other cities stated that employees or members of the public could write a letter to the city with concerns, or that the city had an "open door" policy and concerns could be taken to supervisors, managers, the city manager, or the city attorney. The Grand Jury believes that city council members should also be receptive to such complaints. Internal Controls Internal controls are designed to safeguard city assets from error, loss, theft, misuse, misappropriation, and fraud. Effective programs of internal controls provide reasonable assurance that these objectives are met consistently. Internal controls play an important role in preventing and detecting fraud and protecting the organization's resources. 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 149 3-177 The following are excerpts from the Government Finance Officers Association recommended best practice regarding internal controls: ... internal control procedures over financial management should be documented Documented internal control procedures should include some practical means for lower level employees to report instances of management override of controls that could be indicative of fraud ... financial managers, with the assistance of internal auditors or equivalent personnel as needed, periodically evaluate relevant internal control procedures to satisfY themselves that those procedures 1) are adequately designed to achieve their intended purpose, 2) have actually been implemented, and 3) continue to function as designed Evaluations should also encompass the effectiveness and timeliness of the government's response to indications of potential control weaknesses generated by internal control procedures (e.g., resolution of items in exception reports) . ... upon completion of any evaluation of internal control procedures financial managers determine what specific actions are necessary to remedy the root cause of any disclosed weaknesses. A corrective action plan with an appropriate timetable should be adopted There should be follow-up on the corrective action plan to ensure that it has been fully implemented on a timely basis. (GFOA: Enhancing Management Involvement with Internal Control (2004 and 2008) (CAAFR). Most cities (67 yes, 21 no) responded that internal control procedures over financial management were formally documented. Most cities (64 yes, 24 no) also responded that internal control procedures include practical means for lower level employees to report instances of management override of controls. The Grand Jury requested a copy of the internal control procedures over financial management. Several cities had developed comprehensive procedures for internal control, some with very detailed procedural guidelines. Other cities provided no specific documentation of internal control procedures, or made minor mention of internal control procedures. Most cities (80 yes, 8 no) also responded that internal control procedures were evaluated to determine if they are adequately designed to achieve their intended purpose, have actually been implemented, and continue to function as designed. Most cities (77 yes, 11 no) responded that potential internal control weaknesses are documented in exception reports. Most cities (65 yes, 23 no) also responded that there is a process in place to identify changes in what is being controlled or controls themselves, and corrective action plans are developed with an appropriate timeline. Most cities rely primarily on the internal controls review conducted by their independent auditor as part of the annual financial audit. Under Government Auditing Standards independent auditors consider the City's internal controls over financial reporting and conduct tests of compliance. This review is focused on financial reporting, and not the larger internal controls environment. Independent auditors generally do not provide an opinion on the internal control over financial reporting or on compliance. Internal 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 150 3-178 controls that ensure there are adequate control procedures in place to protect public funds is the responsibility of city financial management. Internal Audit The internal audit function serves as an additional level of control and helps improve a city's overall control and risk environment. This includes monitoring the design and proper functioning of the internal control policies and procedures. It is important that the internal audit function be separate from those that are directly responsible for performing financial functions. The following are excerpts from the Government Finance Officers Association recommended best practice regarding internal audit: Every government should consider the feasibility of establishing a formal internal audit functibn because such a function can play an important role in helping management to maintain a comprehensive .framework of internal controls. As a rule, a formal internal audit .function is particularly valuable for those activities involving a high degree of risk (e.g., complex accounting systems, contracts with outside parties, a rapidly changing environment). If it is not feasible to establish a separate internal audit function, a government is encouraged to consider either 1) assigning internal audit responsibilities to its regular employees or 2) obtaining the services of an accounting firm (other than the independent auditor) for this purpose; The internal audit function should be established formally by charter, enabling resolution, or other appropriate legal means; It is recommended that internal auditors of state and local governments conduct their work in accordance with the professional standards relevant to internal auditing contained in the US. General Accounting Office's publication Government Auditing Standards, including those applicable to the independence of internal auditors; At a minimum, the head of the internal audit function should possess a college degree and appropriate relevant experience. It also is highly desirable that the head of the internal audit function hold some appropriate form of professional certification (e.g., certified internal auditor, certified public accountant, certified information systems auditor); and All reports of internal auditors, as well as the annual internal audit work plan, should be made available to the government's audit committee or its equivalent. (GFOA: Establishment of an Internal Audit Function (1997 and 2006) (CAAFR). Most cities (18 yes, 69 no, 1 not documented) responded that they do not have an internal audit function formally established by charter, enabling resolution, or other legal means. One city indicated it had an internal audit function, but did not provide the requested documentation. Other cities stated that internal audit was an additional responsibility of the finance staff. Several cities also stated that, given the small size of their city, an internal audit function and staff could not be justified. 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 151 3-179 General Fund Unassigned Fund Balance The term "fund balance" is used to describe the net assets of governmental funds, and is intended to provide a measure of the financial resources available in the fund. Some of this fund balance is typically restricted because it is not spendable (for legal or contractual reasons) or restricted by external constraints. Unrestricted funds include those that are unassigned, as well as those that are committed or assigned by the city council. The city council would be able to change these commitments or assignments if needed. It is important that cities formally set aside adequate funds for use in emergencies, revenue shortages, or budget imbalances. Adequate fund balances are also important to provide stable tax rates, maintain government services, and to facilitate long-term financial planning. The following are excerpts from the Government Finance Officers Association recommended best practice regarding general fund unrestricted fund balance: ... recommends that governments establish a formal policy on the level of unrestricted fund balance that should be maintained in the general fund. Such a guideline should be set by the appropriate policy body and should provide both a temporal framework and specific plans for increasing or decreasing the level of unrestricted fund balance, if it is inconsistent with that policy. The adequacy of unrestricted fund balance in the general fund should be assessed based upon a government's own specific circumstances. Nevertheless, GFOA recommends, at a minimum, that general-purpose governments, regardless of size, maintain unrestricted fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures. (GFOA: Appropriate Level of Unrestricted Fund Balance in the General Fund (2002 and 2009) (BUDGET and CAAFR). Most cities ( 63 yes, 25 no) responded that they have a formal policy on the level of unrestricted fund balance to be maintained in the general fund. Half the cities ( 44 yes, 44 no) responded that they do not have a policy requiring an unrestricted or unassigned fund balance of not less than two months of regular general fund operating revenues or regular general fund operating expenditures. Financial and Public Reporting Practices Financial statements and information prepared and provided by each city provide the public with information on how their city is expending its resources, as well as the financial stability and health of the city. Ensuring the transparency and reliability of financial reporting is a key responsibility of financial management. This requires maintaining an adequate financial accounting system and issuing financial statements in a timely manner. The following are excerpts from the Government Finance Officers Association recommended best practice regarding financial and public reporting practices: 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 152 3-180 Maintain an accounting system adequate to provide all of the data needed to allow for the timely preparation of financial statements for the entire financial reporting entity in conformity with GAAP,· Issue timely financial statements for the entire financial reporting entity in conformity with GAAP as part of a CAFR; and Have those financial statements independently audited in accordance with either GAAS or GAS, as appropriate. (GFOA: Governmental Accounting, Auditing, and Financial Reporting Practices (1993, 1997, and 2000) (CAAFR). The Government Finance Officers Association encourages every government to use its web site as a primary means of communicating financial information to citizens and other interested parties. (GOFA: Web Site Presentation of Official Financial Documents (2009) (ALL).· All cities (88 yes, 0 no) responded they maintain an accounting system adequate to provide all the data needed for the timely preparation of financial statement for the entire entity in conformity with Generally Accepted Accounting Principles (GAAP). Most cities (83 yes, 5 no) responded they issue timely financial statements for the entire financial reporting entity in conformity with standards as part of a CAFR. The cities of Avalon, Bell, Compton and Maywood have not yet issued financial statements for FY 2010-11. The cities of Avalon, Azusa, Bradbury, Bell, Compton, Hawaiian Gardens, Huntington Park, Inglewood, La Habra Heights, Lawndale and Maywood have not yet issued financial statements for FY 2011-12, and report they are in the process of developing these with an independent auditor. All cities (88 yes, 0 no) responded the city's financial statements are independently audited. Most cities (85 yes, 3 no) also responded that the financial statements or CAFR were readily available on the city's website. Most cities (85 yes, 3 no) responded that city financial management staff are members of and participate in the Government Finance Officers Association. FINDINGS -FINANCIAL MANAGEMENT PRACTICES 1. Few cities formally established an audit committee responsible for monitoring and overseeing financial reporting. 2. All cities required their auditors to comply with independence standards and most selected their auditors through a competitive process. Most also precluded the auditor from providing non-audit services. 3. Many cities could improve their documentation and maintenance of accounting policies and procedures. 4. Many cities could improve their policies and procedures for reporting fraud, abuse, and questionable practices. 5. Many cities could improve their internal control procedures over financial management. 6. Most cities did not have a formal internal audit function. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 153 3-181 7. Many cities' policies and procedures governing general fund unrestricted fund balance could be improved. 8. All cities maintained an adequate accounting system. Most issued timely financial statements and a CAFR in compliance with standards, and most made the CAFR readily accessible to the general public on their website. RECOMMENDATIONS -FINANCIAL MANAGEMENT 3 I. Cities should formally establish an audit committee making it directly responsible for the work of the independent auditor. 2. Cities that do not currently select the auditor through a competitive process should do so. 3. Cities that allow the auditor to provide non-audit Services should ensure appropriate review and approval of those services. 4. Cities should review and update accounting policies and procedures to ensure they are appropriately detailed and define the specific authority and responsibility of employees. 5. Cities should establish a policy requiring policies and procedures to be reviewed annually and updated at least once every three years. 6. Cities should review and update policies and procedures for reporting fraud, abuse and questionable practices including a practical mechanism, such as a fraud hot line, to permit the confidential, anonymous reporting of concerns. 7. Cities should periodically review and update internal control procedures over financial management. 8. Cities should undertake a full-scale competitive process every 5 years for the selection of an independent external auditor. 3 See Exhibit 12 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 154 3-182 EMPLOYEE COMPENSATION Until recently, there has been a lack of transparency and accountability for actual annual compensation for employees of cities. In July 2010 news media reports (Los Angeles Times, July 14, 2010) revealed that some City of Bell administrators and Council members were receiving disproportionately high salaries. In addition, the report of the independent reform monitor for the City of Vernon found: There is evidence that in the past, the salaries of City officials were bloated, that some who held more than one position were receiving compensation for each position, and that some contracts were drawn so that after 1,500 hours of City work and a set salary, City officials would charge hourly rates that would elevate those salaries way beyond any norm. (City of Vernon Report, John Van De Kamp, Independent Ethics Advisor, July 29, 2011; p.5.) In the past, each city council was required to establish the range of salary for each position and adopt that range in a "salary resolution." These salary resolutions were reported to the State Controller's Office and published on its website. Requiring and publishing the salary resolutions did not prove to be an effective means of providing transparency and accountability for government compensation. In late 2010 State Controller John Chiang began requiring counties, cities and special districts to report government compensation, which was posted to the Controller's website in an effort to promote transparency following the salary scandal in the City of Bell. Government compensation is now posted on the State Controller's website for all government employees. The information provided includes the approved salary range, as well as the actual compensation received by each employee as reported to the U.S. Internal Revenue Service. Refer to Exhibit 2 presented previously and Appendix C. The Grand Jury noted that several cities had a high number of employees in several departments earning over $200,000. Exhibit 2 reflects these city's as follows: • Beverly Hills: 21 Fire Department employees and 18 Police department employees made over $200,000. • El Segundo: 7 Fire Department employees made over $200,000. • Los Angeles: 224 Water and Power employees and 115 Fire Department made over $200,000. • Manhattan Beach: 16 Fire Department employees made over $200,000. • Santa Fe Springs: 13 Fire Department employees made over $200,000. • Santa Monica: 17 employees in the legal department and 29 Fire Department employees made over $200,000. • Vernon: 5 employees in various departments made over $200,000. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 155 3-183 NEW LEGISLATION The Grand Jury desires all citizens within Los Angeles County and its incorporated cities avail themselves of recent legislation specific to the California State Auditor and its Local High Risk Program. The following is from the California State Auditor website (www.bsa.ca.gov): Recent legislation-ABJ87, which went into effect in January 2012-permits the California State Auditor to develop a high-risk local government agency audit program for the purpose of identifying, auditing, and issuing reports on any local agency, including a city, county, special district, or other publicly created entity, that the State Auditor identifies as being at high risk for waste, fraud, abuse, and mismanagement or as having major challenges associated with its economy, efficiency, or effectiveness. However, any audit that the State Auditor wishes to perform under this authority must be authorized by the Legislature's Joint Legislative Audit Committee before it may move forward. Because this legislation just recently took effect, the program still is being developed. Please check back periodically for updates regarding the implementation of this program. As we establish protocols for the program, we will post the information on our Web site (www.bsa.ca.gov). In the meantime, if you have any information about a local government agency that you would like to share with us, refer to "Report an Improper Activity" on our home page. The Grand Jury believes that the State Auditor's "Local High Risk Program" once established, will provide the public with greater oversight over local government agencies, which includes cities. Citizens need to work through their local State Representatives in order to expedite the implementation of this Program. RECOMMENDATIONS AND REQUIRED RESPONSES Responses are required from the following cities: Fiscal Health 1. Cities should adopt financial planning, revenue and expenditure policies to guide city officials to develop sustainable, balanced budgets. Agoura Hills, Alhambra, Arcadia, Artesia, Avalon, Azusa, Baldwin Park, Bell, Bell Gardens, Bellflower, Beverly Hills, Bradbury, Burbank, Calabasas, Carson, Cerritos, Claremont, Commerce, Compton, Covina, Cudahy, Culver City, Diamond Bar, Downey, Duarte, El Monte, El Segundo, Gardena, Glendale, Glendora, Hawaiian Gardens, Hawthorne, Hermosa Beach, Hidden Hills, Huntington Park, Industry, Inglewood, Irwindale, La Canada Flintridge, La Habra Heights, La Mirada, La Puente, La Verne, Lakewood, Lancaster, Lawndale, Lomita, Long Beach, Los Angeles, Lynwood, Malibu, Manhattan Beach, Maywood, Monrovia, Montebello, Monterey Park, Norwalk, Palmdale, Palos Verdes Estates, Paramount, Pasadena, Pico Rivera, Pomona, Rancho Palos Verdes, Redondo Beach, Rollin 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 156 3-184 Exhibit 12: Recap of Recommendations and Required Responses i l)):,:;:!';''@@&Wf;:*~Bili•~wtiiitiftili~~Wifj(~it!ZWt:M@::Ji.~l: :1~1ti.NiJffit.1filMBiiifib.ltiliiiiff:iiliiliit.M!it;M:if::HM1.Ml Hills, Rolling Hills Estates, Rosemead, San Dimas, San Fernando, San Gabriel, San Marino, Santa Clarita, Santa Fe Springs, Santa Monica, Sierra Madre, Signal Hill, South El Monte, South Gate, South Pasadena, Temple City, Torrance, Vernon, Walnut, West Covina, West Hollywood, Westlake Village, Whittier 2. Cities should develop a balanced budget Agoura Hills, Alhambra, Arcadia, Artesia, A val on, Azusa, and commit to operate within the budget Baldwin Park, Bell, Bell Gardens, Bellflower, Beverly constraints. Hills, Bradbury, Burbank, Calabasas, Carson, Cerritos, Claremont, Commerce, Compton, Covina, Cudahy, Culver City, Diamond Bar, Downey, Duarte, El Monte, El Segundo, Gardena, Glendale, Glendora, Hawaiian Gardens, I Hawthorne, Hermosa Beach, Hidden Hills, Huntington Park, Industry, Inglewood, Irwindale, La Canada Flintridge, La Habra Heights, La Mirada, La Puente, La Verne, Lakewood, Lancaster, Lawndale, Lomita, Long Beach, Los Angeles, Lynwood, Malibu, Manhattan Beach, Maywood, Monrovia, Montebello, Monterey Park, Norwalk, Palmdale, Palos Verdes Estates, Paramount, Pasadena, Pico Rivera, Pomona, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Fernando, San Gabriel, San Marino, Santa Clarita, Santa Fe Springs, Santa Monica, Sierra Madre, Signal Hill, South El Monte, South Gate, South Pasadena, Temple City, Torrance, Vernon, Walnut, West Covina, West Hollywood, Westlake Village, Whittier 3. Cities should commit to not using one-Agoura Hills, Alhambra, Arcadia, Artesia, A val on, Azusa, time revenues to fund recurring or on-Baldwin Park, Bell, Bell Gardens, Bellflower, Beverly going expenditures. Hills, Bradbury, Burbank, Calabasas, Carson, Cerritos, Claremont, Commerce, Compton, Covina, Cudahy, Culver City, Diamond Bar, Downey, Duarte, El Monte, El Segundo, Gardena, Glendale, Glendora, Hawaiian Gardens, Hawthorne, Hermosa Beach, Hidden Hills, Huntington Park, Industry, Inglewood, Irwindale, La Canada Flintridge, La Habra Heights, La Mirada, La Puente, La Verne, Lakewood, Lancaster, Lawndale, Lomita, Long Beach, Los Angeles, Lynwood, Malibu, Manhattan Beach, Maywood, Monrovia, Montebello, Monterey Park, Norwalk, Palmdale, Palos Verdes Estates, Paramount, Pasadena, Pico Rivera, Pomona, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Fernando, San Gabriel, San Marino, Santa Clarita, Santa Fe Springs, Santa Monica, Sierra Madre, Signal Hill, South El Monte, South Gate, South Pasadena, Temple City, Torrance, Vernon, Walnut, West Covina, West Hollywood, Westlake Village, Whittier 4. Cities should adopt a method and Agoura Hills, Alhambra, Arcadia, Artesia, Avalon, Azusa, practice of saving into a reserve or Baldwin Park, Bell, Bell Gardens, Bellflower, Beverly "rainy day" fund to supplement Hills, Bradbury, Burbank, Calabasas, Carson, Cerritos, Claremont, Commerce, Compton, Covina, Cudahy, Culver operating revenue in years of short fall. City, Diamond Bar, Downey, Duarte, El Monte, El Segundo, Gardena, Glendale, Glendora, Hawaiian Gardens, Hawthorne, Hermosa Beach, Hidden Hills, Huntington 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 157 3-185 Exhibit 12: Recap of Recommendations and Required Responses ~i~:;::::::~~m:~m@¥@:1:~©E«iiliimm«i3tiiiuM@r%rn1.tf.?ll@~:mi #M~~~¥:*-[w8flrftJ~!l&i,l(V,8Jillliaitiil1.li:iii~~~i::@n@¥MMM Park, Industry, Inglewood, Irwindale, La Canada Flintridge, La Habra Heights, La Mirada, La Puente, La Verne, Lakewood, Lancaster, Lawndale, Lomita, Long Beach, Los Angeles, Lynwood, Malibu, Manhattan Beach, Maywood, Monrovia, Montebello, Monterey Park, Norwalk, Palmdale, Palos Verdes Estates, Paramount, Pasadena, Pico Rivera, Pomona, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Fernando, San Gabriel, San Marino, Santa Clarita, Santa Fe Springs, Santa Monica, Sierra Madre, Signal Hill, South El Monte, South Gate, South Pasadena, Temple City, Torrance, Vernon, Walnut, West Covina, West Hollywood, Westlake Village, Whittier Governance Practices 1. Cities should develop and adopt a Agoura Hills, Arcadia, Avalon, Azusa, Baldwin strategic plan that articulates the Park, Bell Gardens, Calabassas, Carson, mission, vision, core values and Compton, Cudahy, Hawthorne, Hermosa Beach, priorities for the city. Hidden Hills, Huntington Park, Industry, Inglewood, La Habra Heights, Lomita, Malibu, Palos Verdes Estates, Pico Rivera, Rolling Hills, Rolling Hills Estates, San Dimas, San Fernando, South El Monte 2. Cities should develop and report on Agoura Hills, Arcadia, Avalon, Azusa, Bell, Bell performance measures or indicators to Gardens, Bradbury, Calabassas, Carson, evaluate outcomes. These performance Commerce, Compton, Cudahy, Diamond Bar, El measures should be quantified, focused Monte, Gardena, Hermosa Beach, Hidden Hills, on outcomes and information should be Huntington Park, Industry, Inglewood, La Habra provided for several years to allow Heights, Lancaster, Lawndale, Lomita, Malibu, evaluation of progress over time. Montebello, Paramount, Rolling Hills, San Dimas, San Fernando, San Marino, Santa Clarita, Santa Fe Springs, South El Monte, South Pasadena, West Covina 3. City councils should develop specific Avalon, Compton, Cudahy, Diamond Bar, Hidden annual goals for the city's executive. Hills, Industry, Inglewood, Norwalk, Palos Verdes Estates, San Fernando, San Marin, South El Monte, South Pasadena 4. City councils should conduct Alhambra, Compton, Cudahy, Hidden Hills, meaningful evaluations of the city's Industry, Lancaster; Maywood, Palos Verdes executive at least annually. Estates, Paramount, Rolling Hills, San Fernando 5. Cities should publish their financial Cudahy, Industry, Maywood reports or CAFR on their city's website. Financial Management 1. Cities should formally establish an audit Alhambra, Arcadia, Azusa, Bell, Bell Gardens, committee making it directly responsible Bellflower, Bradbury, Calabassas, Carson, for the work of the independent auditor. Cerritos, Claremont, Compton, Cudahy, Diamond Bar, Duarte, El Monte, El Segundo, Gardena, 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 158 3-186 Exhibit 12: Recap of Recommendations and Reauired Responses r.:; ,m;;•%::::,:;;~:;:1••m:·~-i~iifilii~ibJil91HM~:;r:m•mmMMltWM~tf0@;~:::~fWi.d1~tibiiiiJRe•'ilJiill•Jri3m:mlii@iJ@MMfafj@j 2. Cities that do not currently select the auditor through a competitive process should do so. 3. Cities that allow the auditor to provide non-audit services should ensure appropriate review and approval of those services. 4. Cities should review and update accounting policies and procedures to ensure they are appropriately detailed and define the specific authority and responsibility of employees. 5. Cities should establish a policy requiring financial policies and procedures to be reviewed annually and updated at least once every three years. Glendora, Hawaiian Gardens, Hermosa Beach, Hidden Hills, Huntington Park, Industry, Inglewood, Irwindale, La Mirada, La Puente, La Verne, Lakewood, Manhattan Beach, Maywood, Monrovia, Monterrey Park, Norwalk, Palos Verdes Estates, Paramount, Pico Rivera, Pomona, Rancho Palos Verdes, Rolling Hills, Rosemead, San Fernando, San Gabriel, San Marin, Santa Clarita, Santa Fe Springs, Santa Monica, Sierra Madre, Signal Hill, South El Monte, South Pasadena, Southgate, Temple City, West Covina, West Hollvwood, Westlake Village, Whittier Bellflower, Glendora, Hawthorne, Hidden Hills, Industry, Irwindale, La Canada-Flintridge, La Mirada, Lakewood, Malibu, Palos Verdes Estates, San Dimas, San Marino, Santa Fe Springs, Walnut, West Covina, Whittier Arcadia, Avalon, Baldwin Park, Bellflower, Beverly Hills, Carson, Claremont, Commerce, Diamond Bar, Glendale, Huntington Park, Inglewood, La Vern, Lawndale, Monrovia, Montebello, Palmdale, Paramount, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates, San Gabriel, Santa Fe Springs, Santa Monica, Southgate. Beverly Hills, Bradbury, Burbank, Carson, Commerce, Cudahy, El Monte, Hawaiian Gardens, Hidden Hills, Industry, La Verne, Lomita, Manhattan Beach, Norwalk, Santa Monica, Sierra Madre, Southgate, West Covina, Whittier Agoura Hills, Alhambra, Arcadia, A val on, Azusa, Bell Gardens, Bellflower, Bradbury, Burbank, Carson, Commerce, Cudahy, Diamond Bar, El Monte, Glendora, Hawaiian Gardens, Hawthorne, Hidden Hills, Industry, Inglewood, La Canada- Flintridge, La Habra Heights, La Mirada, La Puente, Lancaster, Lawndale, Lomita, Los Angeles, Manhattan Beach, Montebello, Norwalk, Pasadena, Rolling Hills Estates, Rosemead, San Fernando, Santa Clarita, Santa Fe Springs, Santa Monica, South Pasadena, Southgate, Walnut, West Covina 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 159 3-187 Exhibit 12: Recap of Recommendations and Required Responses 6. Cities should review and update policies and procedures for reporting fraud, abuse and questionable practices including a practical mechanism, such as a fraud hot line, to permit the confidential, anonymous reporting of concerns. 7. Cities should periodically review and update internal control procedures over financial management. 8. Cities should undertake a full-scale competitive process every 5 years for the selection of an independent external auditor. Alhambra, Arcadia, A val on, Azusa, Bell Gardens, Bellflower, Bradbury, Burbank, Covina, Cudahy, El Monte, Glendora, Huntington Park, Industry, Inglewood, Irwindale, La Mirada, Lakewood, Lomita, Lynwood, Manhattan Beach, Montebello, Norwalk, Rancho Palos Verdes, Rolling Hills, Rosemead, San Fernando, San Gabriel, San Marino, Santa Fe Springs, Santa Monica, Sierra Madre, Temple Citv, West Covina Bell, Cudahy, Industry, Inglewood, Lomita, Montebello, South El Monte Agoura Hills, Alhambra, Arcadia, Artesia, A val on, Azusa, Baldwin Park, Bell, Bell Gardens, Bellflower, Beverly Hills, Bradbury, Burbank, Calabasas, Carson, Cerritos, Claremont, Commerce, Compton, Covina, Cudahy, Culver City, Diamond Bar, Downey, Duarte, El Monte, El Segundo, Gardena, Glendale, Glendora, Hawaiian Gardens, Hawthorne, Hermosa Beach, Hidden Hills, Huntington Park, Industry, Inglewood, Irwindale, La Canada Flintridge, La Habra Heights, La Mirada, La Puente, La Verne, Lakewood, Lancaster, Lawndale, Lomita, Long Beach, Los Angeles, Lynwood, Malibu, Manhattan Beach, Maywood, Monrovia, Montebello, Monterey Park, Norwalk, Palmdale, Palos Verdes Estates, Paramount, Pasadena, Pico Rivera, Pomona, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Rosemead, San Dimas, San Fernando, San Gabriel, San Marino, Santa Clarita, Santa Fe Springs, Santa Monica, Sierra Madre, Signal Hill, South El Monte, South Gate, South Pasadena, Temple City, Torrance, Vernon, Walnut, West Covina, West Hollywood, Westlake Village, Whittier 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 160 3-188 APPENDICES APPENDIX A: GLOSSARY Adopted Budget -The City Council approved annual budget establishing the legal authority for the expenditure of funds as set forth in the adopting Council budget resolution. Asset -Property owned by a government, which has monetary value. Audit -An examination and evaluation of the City's records and procedures to ensure compliance with specified rules, regulations, and best practices. The City Charter requires a yearly independent financial audit, by an independent certified public accountant that forms an audit opinion regarding the legitimacy of transactions and internal controls. Balanced Budget -When the total of revenues and other financing sources is equal to or greater than the total of expenditures and other financing uses. Budget - A fiscal plan of financial operation comprised of estimated expenditures and the proposed means of financing them for a given period (usually a single fiscal year). The budget is proposed until it has been approved by the City Council through a series of budget study sessions and a formal budget hearing in June. Budget Message -The City Manager's general discussion of the budget which contains an explanatfon of principal budget items and summary of the City's financial status at the time of the message. California Public Employees' Retirement System (CalPERS) -The retirement system administered by the State of California. Capital Asset - A tangible, fixed asset that is long-term in nature, of significant value, and obtained or controlled as a result of past transactions, events or circumstances. Fixed assets include land, buildings, equipment, improvements to buildings, and infrastructure (i.e., streets, highways, bridges, and other immovable assets). A capital asset is defined as an asset with a useful life extending beyond a single accounting period. City Charter -The legal authority granted by the State of California establishing the City and its form of government. The Charter also gives the City the ability to provide services and collect revenue to support those services. Comprehensive Annual Financial Report (CAFR) - A government financial statement that provides a thorough and detailed presentation of the government's financial condition. It provides the Council, residents and other interested parties with information on the financial position of the City and its various agencies and funds. Report contents include various financial statements and schedules and all available reports by the City's independent auditors. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT A-1 3-189 Deficit -An excess of expenditures or expenses over revenues (resources) during an accounting period. Department -An organization unit comprised of divisions, sections, and/or programs. A department has overall management responsibility for an operation or a group of related operations. Expenditure -The actual spending of Governmental funds set aside by an appropriation. Fiscal Year -A twelve-month period of time to which the annual budget applies. Fiscal years are designated by the calendar year that they begin and end. Abbreviation: FY. Fund -In Governmental Accounting, a fund is a fiscal and accounting entity with a self- balancing set of accounts recording cash and other financial resources, together with related liabilities 'and residual equities or balances, and changes therein. Funds are segregated for the purpose of conducting specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. Fund Balance -The amount of financial resources immediately available for use. Generally, this represents the accumulated annual operating surpluses and deficits since the fund's inception. General Fund -The primary fund of the City used to account for all revenues and expenditures of the City not legally restricted as to use. Departments financed by the General Fund include Police, Fire, Parks, Library, and administrative support departments (Finance, Human Resources, City Attorney, etc.) Generally Accepted Accounting Principles (GAAP) -Uniform minimum standards of/and guidelines for financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompasses the conventions, rules, and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. GAPP provides a standard by which to measure financial presentations. Goal -A long-term organizational target or direction. It states what the organization wants to accomplish or become over the next several years. Goals provide the direction for an organization and define the nature, scope, and relative priorities of all projects and activities. Everything the organization does should help it move toward attainment of one or more goals. Governmental Accounting Standards Board (GASB) -The organization that establishes generally accepted accounting principles (GAAP) for states and local governments. Government Finance Officers Association (GFOA) -A professional association that enhances and promotes the professional management of state and local governments for the public benefits by identifying and developing financial policies and best practices through education, training, facilitation of member networking, and leadership. The organization sponsors award programs designed to encourage good financial reporting for financial documents including the Comprehensive Annual Financial Report (CAFR) and the annual budget. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT A-2 3-190 Ordinance -A formal legislative enactment by the City Council. It has the full force and effect of law within City boundaries unless pre-empted by a higher form of law. An Ordinance has a higher legal standing than a Resolution. Reserve -An account used to record a portion of the fund balance as legally segregated for a specific use. Resolution -A special order of the City Council which has a lower legal standing than an ordinance. The City's budget is adopted via a Resolution of Appropriation. Revenues -Amount received for taxes, fees, permits, licenses, interest, intergovernmental sources, and other sources during the fiscal year. Salaries and Benefits -A budget category which generally accounts for full-time and temporary employees, overtime expenses, and all employee benefits such as medical, dental, and retirement. Undesignated Fund Balance -Accounts used to record a portion of the fund balance not legally segregated for a specific used and, therefore, available for appropriation. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT A-3 3-191 APPENDIX B: SAMPLE QUESTIONNAIRE DECEMBER21, 2012 Greg Ramirez, City Manager City of Agoura Hills 30001 Ladyface Court Agoura Hills, CA 91301 Dear City Manager Ramirez, The Los· Angeles County Civil Grand Jury is currently conducting an investigation of governance, management, and financial health of cities in Los Angeles County. The enclosed questionnaire is being sent to cities to collect information on each City's practices in these areas. Under Penal Code sections 925 and 925A, the Grand Jury may investigate and examine the books and records of County and City operations. Penal Code section 921 gives the Grand Jury free access at all reasonable times to the examination of all public records within a County. The Civil Grand Jury has an aggressive schedule in completing this investigation and is requesting your timely cooperation in compliance with the above. Please send the completed questionnaire and documentation by Friday, January 18th to Frederick Piltz, Foreperson, at the address above. The questionnaire is available at http://www.stellarsurvey.com/s.aspx?u=1471BE47-06CD- 469B-B486-A61 E54F42C67& if you prefer to complete and submit it online. This will also allow you to upload requested support documentation. You were sent an email with this link on December 201h. The Grand Jury has retained the firm of Bazilio Cobb Associates (BCA) to assist in this investigation. BCA is administering the survey and will be reviewing information submitted. If you have any questions please contact Scott Bryant with BCA at sbryant@baziliocobb.com. Sincerely, Frederick Piltz Foreperson Enclosure: Charter City Questionnaire 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT B -1 3-192 CITIES FISCAL HEAL1H, GOVERNANCE AND MANAGEMENT Governance 1. Has the City Council developed and adopted a strategic plan that articulates the mission, vision, core values and priorities (goals and objectives) for the City? o Yes o No 2. Has the City Council adopted performance measures or indicators to evaluate outcomes or progress on priorities? o Yes o No 3. Does your city have a formal policy, agreement, or other document that clearly defines the roles of the City Council and executive (City Manager or Administrator) and their relationship? o Yes o No 4. Does the City Council establish specific goals for the Executive at least annually? o Yes o No 5. Does the City Council conduct a meaningful evaluation of the Executive's performance at least annually? o Yes o No 6. Has the City Council adopted and does it enforce a formal "Conflict of Interest" policy? o Yes o No 7. Has the City Council adopted an "Investment" policy? o Yes o No 8. Please provide copies of the • strategic plan and performance measures or indicators, • formal agreement or other document that clearly defines the roles of the City Council and executive and their relationship, • the specific goals most recently established for the Executive, • adopted "Conflict of Interest" policy, and • adopted "Investment" policy. 9. Please provide any comments or explanations regarding your responses on governance: PLEASE RETURN BY JANUARY 18, 2013 PAGE 1 QUESTIONS? EMAIL SBRYANT@BAZIL/OCOBB.COM 3-193 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Audit Committee 10. Does your city have an audit committee that is formally established by enabling resolution or other appropriate legal means? o Yes o No 11. Is the audit committee directly responsible for the appointment, compensation, retention, and oversight of the work of independent accountants engaged to perform independent audit, review, or attestation services? o Yes o No 12. Do such independent accountants report directly to the audit committee? . o Yes o No 13. Please provide a copy of the action formally establishing the audit committee. 14. Please provide any comments or explanations regarding your responses on audit committees: Audit Procurement 15. Do your city's audit contracts require auditors of financial statements conform with the independence standard defined in the General Accounting Office's Government Auditing Standards? o Yes o No 16. In selecting independent auditors does your city undertake a full-scale competitive process at the end of the term of each audit contract? o Yes o No 17. How many years has your current independent auditor conducted the annual city audit? Years ----- 18. How long is the term of your current independent audit contract? Years ----- 19. Does your city have a formal policy requiring that the independent auditor be replaced at the end of the audit contract? o Yes o No PLEASE RETURN BY JANUARY 18, 2013 PAGE2 QUESTIONS? EMAIL SBRYANT@BAZILIOCOBB.COM 3-194 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 20. Does your city allow the independent auditor to provide nonaudit services to the city? o Yes o No 21. If yes, does the Audit Committee review and approve these services? o Yes o No 22. Please provide a copy of the formal policies related to audit procurement. 23. Please provide any comments or explanations regarding your responses on audit procurement: Accounting Policies and Procedures 24. Are accounting policies and procedures formally documented in an accounting policies and procedures manual? o Yes o No 25. Are accounting policies and procedures reviewed annually and updated at least once every three years on a predetermined schedule? o Yes o No 26. Do the accounting policies and procedures specifically define the authority and responsibility of all employees, including the authority to authorize transactions and the responsibility for safekeeping of assets and records? o Yes o No 27. Please provide a copy of the accounting policies and procedures manual. 28. Please provide any comments or explanations regarding accounting policies and procedures: PLEASE RETURN BY JANUARY 18, 2013 PAGE3 QUESTIONS? EMAIL SBRYANT@BAZILIOCOBB.COM 3-195 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Reporting of Fraud, Abuse, and Questionable Practices 29. Does your city have policies and procedures to encourage and facilitate the reporting of fraud or abuse (whistleblowers) and questionable accounting or auditing practices? o Yes o No 30. Does your city have a formally adopted and widely distributed and publicized ethics policy? o Yes o No 31. Does your city have a practical mechanism, such as a fraud hot line, to permit the confidential, anonymous reporting of concerns about fraud, abuse, or questionable practices? . o Yes o No 32. Are concerns received regarding fraud, abuse, or questionable practices reviewed by internal auditors, with documentation reviewed by the Audit Committee. o Yes o No 33. Please provide a copy of the ethics policy and information on mechanisms for reporting concerns of fraud, abuse, or questionable practices. 34. Please provide any comments or explanations regarding reporting of fraud, abuse, and questionable practices: Internal Controls 35. Are internal control procedures over financial management formally documented? o Yes o No 36. Do internal control procedures include practical means for lower level employees to report instances of management override of controls? o Yes o No 37. Are internal control procedures evaluated to determine if those controls are adequately designed to achieve their intended purpose, have actually been implemented, and continue to function as designed? o Yes o No PLEASE RETURN BY JANUARY 18, 2013 PAGE4 QUESTIONS? EMAIL SBRYANT@BAZILIOCOBB.COM 3-196 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 38. Are potential internal control weaknesses documented in exception reports? o Yes o No 39. Is there a process in place to identify changes in what is being controlled or controls themselves, and corrective action plans are developed with an appropriate timeline? o Yes o No 40. Please provide a copy of the internal control procedures over financial management. 41. Please provide any comments or explanations regarding your responses on internal controls: Internal Audit 42. Does your city have an internal audit function formally established by enabling resolution or other legal means? o Yes o No 43. Is the work of the internal audit function conducted in accordance with the U.S. General Accounting Office's Government Auditing Standards? o Yes o No 44. Are all reports of the Internal Audit function provided to or available to the Audit Committee? o Yes o No 45. Please provide a copy of the formal action establishing the internal audit function. 46. Please provide any comments or explanations regarding your responses on internal audit: PLEASE RETURN BY JANUARY 18, 2013 PAGES QUESTIONS? EMAIL SBRYANT@BAZIL/OCOBB.COM 3-197 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT General Fund Unrestricted Fund Balance 4 7. Does your city have a formal policy on the level of unrestricted fund balance to be maintained in the General Fund? o Yes o No 48. Does this policy require an unrestricted fund balance of no less than two months of regular general fund operating revenues or regular general fund operating expenditures? o Yes o No 49. Please provide a copy of the formal policy on the level of unrestricted fund balance to be maintained in the General Fund. 50. Please provide any comments or explanations regarding your responses on general fund unrestricted fund balance: Financial and Public Reporting Practices 51. Does your city maintain an accounting system adequate to provide all the data needed for the timely preparation of financial statement in conformity with Generally Accepted Accounting Principles (GAAP)? o Yes o No 52. Does your city issue timely financial statements for the entire financial reporting entity in conformity with GAAP as part of a Comprehensive Annual Financial Report (CAFR)? o Yes o No 53. Has your city's financial statements been independently audited in accordance with either generally accepted auditing standards (GAAP) or Government Auditing Standards (GAS)? o Yes o No 54. Are the annual budget documents or CAFR for your city published and readily accessible to the general public on your city's website? o Yes o No 55. Are city financial management staff members of and participate in the Government Finance Officers Association ? o Yes o No PLEASE RETURN BY JANUARY 18, 2013 PAGE6 QUESTIONS? EMAIL SBRYANT@BAZILIOCOBB.COM 3-198 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 56. Please provide any comments or explanations regarding your responses on financial and public reporting practices: Please provide the contact information for the individual with primary responsibility for completing this survey: Title: Email: PLEASE RETURN BY JANUARY 18, 2013 PAGE 7 QUESTIONS? EMAIL SBRYANT@BAZILIOCOBB.COM 3-199 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT APPENDIX C: EMPLOYEES WITH COMPENSATION OVER $200,000 IN 2011 12,345 Ar~adia $3,486 $13;,068 Avalon $16,862 Azusa $18,00Q $8,076 $8,076 Beverly Hills · •.• $34,994 $9,924 $4;513 $10,059 Beverly Hills $22,292 $14,258 $360 Beverly Hills $18,334 $11,556 $360 Beverly Hills. Beverly Hills Beverly Hills. Asiii~tatitf>lrecfor or .· Pw Ari4tratis,·• .. • Beverly Hills Director Admin Services-Coo Beverly Hills > Potiqe officer •.· $4,513 $13,108 Beverly Hills Public Works $360 Beverly Hills $5,700 $17,529 Beverly Hills $7,673 $3,040 $5,407 Beverly Hills bepiiqf f'ire Chief > · ·••·Fi're•ri~~aitllle11~ $18,69] $360 Beverly Hills Director Of Parking Public Works $265,472 $18,510 $11,838 $360 0 erations Beverly Hills Fire Battalion Chief Fire Department $264,620 $51,876. $12,721 $360 80 Beverly Hills Police Officer Police Department $259,452 $31,797 $9,678 $4,513 $13,861 Beverly Hills Parking Operations Public Works $258,516 $3,708 $1,89.5 $150 Mana er 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-1 3-200 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Beverly Hills Fire Captain 112 Fire Departirient $205,710 Beverly Hills Police Officer Police Department $205,668 $27,530 $7,589 $3,040 $10,653 Beverly Hills Fire Engineer 112 Fire Department $205,360 $37,942 $9,947 $360 Beverly Hills Police Captain Police Department $203,395 $56,473 $17,069 $360 $17,105 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT C-2 3-201 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Culver City Culver City Culver City Culver City Culver City Culver City Culver City Culver City Culver City Chief Financial Officer Assistant City Mana er· .. City Manager's Office 2012-2013 LOS ANGELES COUNTY CNIL GRAND JURY REPORT $3,250 $15,477 $3,699 $15,477 $2,125 $15,477 $3,699 $11,950 $3,699 $15,477 $3,699 $15,910 $3,556 $15,887 $3,699 $12,494 C-3 3-202 Culver City Culver City Diamond Bar · · Downey Downey Downey Downey Downey Downey El Monte El Monte El Monte El Monte El Segundo El Segundo El Segundo· El Segundo El Segundo· El Segundo El Segundo El Segundo El Segundo El Segundo Gardena Glendale Glendale Glendale Glendale Glendale Glendale Glendale Glendale Deputy City Manager Spec Project cl1tefor Police captaih City Manager ChfofOfPcilke Officer/Bonus Assi nment Police.Chief'·•.· Battali~n C~ief Police Captain Fire Captain Police Lieutenant City Manager City Attorney Genei:aJ. Manager·. owr· Police Lieutenant Police Chief City Manager Integrated Resources PlanAdmin Fire Chief Deputy Fire Chief CITIES FISCA.L HEALTH, GOVERNANCE AND MANAGEMENT $14,041 $15,477 $13,074 $4,379 $1,575 $64,160 $18,505 $3,775 $5,004 $~0,39:) $27;844 $L2,744 $10,712 $15,369 $1,616 $15,638 $1,960 · · ~ire s~i))li-ess19it ·• Police Patrol & Safety $210,675 $65,363 $19,749 $1,868 Fire Suppression $205,$94 $51,4}0 $14,174 Police Patrol & Safety $202,025 $59,432 $17,582 $1,030 City Manager $226,817 $14,990 $7,692 $10,440 City Attorney $284,734 $15,459 Glendale. Water & .·. ·. Power · · $13,766 Police $262,148 $12,649 Police.'' $259,193 $19,524 Management Services $251,820 $14,339 Glendale Water & $248,354 Power $13,252 Fire $231,907 $19,524 Fire $220,092 $19,608 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-4 3-203 Glendale Glendale Glendale Glendale Glendale Glendale Glendale Glendora Hawaiian Gardens Hawthorne . ChiefOf P6lic1f . · sei'Yicesi · Hawthorne City Attorney Hennosa Beach City Manager Hennosa Beach •· Fire Captain •.· • Chief of Police Los Angeles Los Angeles Los Angeles Los Angeles Los Angeles . Gem:ral Manager Harbor Dep!lf(ment · Los Angeles Port Pilot II Los Angeles . Chief of P9lice Los Angeles Fire Deputy Chief Los Angeles PortPilotll Los Angeles Port Pilot II SeniorLoad Los Angeles Dispatcher Utility Services Los Angeles Manager Los Angeles Port Pilot II Los Angeles Assistant General Manager Water and CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT $15,660 $10,316 $19,608 $1,292 $11,158 $12,821 $9,967 . $27,159 $17,474 $15,657 $10,608 $10,608 $10,608 $10,608 ···.·· $10,~o& $10,608 $10,608 $10,608 Harbor Department $10,608 Harbor P~1>artnwnt $10,608 Harbor Department $10,608 Los Ar!g11les Poliq11 De artment · $10,608 Los Angeles Fire De artment $294,742 $13,368 Ha,rbot Deparln:lent $290,48$ $10,608 Harbor Department $287,242 $10,608 Los Angeles Department of Water $2~7,142 $14,224 and Power Los Angeles Department of Water $285,042 $14,224 and Power Harbor Department $279,717 $10,608 Los Angeles Department of Water $276,518 $14,224 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-5 3-204 Los Angeles Los Angeles Auditor Water And Power Electrical Service Manager CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT $259,019 $14,224 $257,895 $14,224 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-6 3-205 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Los Angeles $14,224 Los Angeles · $10,608 $14,224 . $14,224 Los Angeles Los Angeles Department of Water $14,224 and Power Los Angeles · Fit~ Batt~ion chfef ·· Lo~ Mg~Ies l'ite Dii aitmerif •· •· · · · · $2s2,si2 $13,368 Managing Water Los Angeles Los Angeles Department of Water $252,341 Utility Engineer and Power $14,224 Power E!lgineering Los A,ng!lles Los Angeles Department of Water ·$252,284 j\1:11J1ager and Power $14,224 Managing Water Los Angeles Los Angeles Department of Water $252,198 Utility Engineer and Power $14,224 Los Angeles Fire Helicopter Pilot Los· Angeles Fire $251,926 $13,368 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-7 3-206 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Los Angeles Managing Water Utility Engineer $244,932 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT $14,224 C-8 3-207 Los Angeles Transmission & Distribution District Su ervisor Los Angeles Department of Water and Power CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT $240,146 $14,224 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-9 3-208 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT C-10 3-209 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT C-11 3-210 Los Angeles Los Angeles Los Angeles Police Lieutenant II Transmission & • Distribution District Los Angeles Police De artment Los Angeles Department ofWater CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT $223,134 $12,592 $223,}17 $14,224 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT C-12 3-211 Los Angeles Los Angeles Los Angeles Senior Load Dispatcher Chief Assistant City Attoine· · CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT --$14,f24 $13,368 $14,224 $219,006 $14,224 $218,565 $10,608 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT C-13 3-212 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT C-14 3-213 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-15 3-214 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-16 3-215 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT Los Angeles Electric Distribution Mechanic $207,200 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT $14,224 C-17 3-216 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-18 3-217 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-19 3-218 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Los Angeles $200,786 $14,224 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT C-20 3-219 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-21 3-220 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Long Beach Firefighter Fire $201,358 $20,698 $6,142 $12,948 Long Beach Managing Director Harbor $201,182 $26,686 $12,159 $12,423 Long Beach Director-tong Beach LongBeachGas&OiI $201,036 . $27,076 $12,236 $12,563 Gas&Oil Lynwood City Manager City Manager $252,241 $46,007 $17,933 $17,481 Administration Lynwood .. ·•·As!>isti.ui~.(.;ity•••···•·· $17,~26 ···Manaer····· Malibu City Manager $15,959 Manhat!at). B~!iCh Fif~~~pt,!f#aj#~i9 •· $17,694 Manhattan Beach Fire Capt/Paramedic $17,659 Manhattan Be~ch • ' Fife M~rsh~rca11talni $17,659 Manhattan Beach Fire Capt/Paramedic $265,015 $15,525 Manhattan Beach ··••p1fo.ca'pt./pru%ile<Itc $251,784 $17,659 Manhattan Beach Fire Battalion Chief $14,373 Manhatll\n Beach·. J?ir~ C;ti>t:iPiif'1m#t11 · .. $18;288 Manhattan Beach Firefighter/Paramedic $11,186 $11,663 Manhattan Ile!!.ch •·· Fir!;) ~11W:iP!\faili~4ic : $11,687 $17,659 Manhattan Beach $14,440 $15,100 Manhattan Beach · > $1.6;J51 $JM~7 Manhattan Beach $9,970 $6,985 Manhattan Beac!t ·. l?otJce e>ftlc~~ >• ·. $w,<111 $.i,1~3. Manhattan Beach Fire Engr/Paramedic Fire $32,914 $12,737 $18,915 Manhattan Beach Ciiy Managet ···:m.M9 $14,063 $9,0<!J .. >> $!,130 Manhattan Beach Fire Engr/Paramedic $17,659 Pirector Of < .... ·. ····• Manhattan Seacb,. ·.·• ·•· C\:)~unitY,.\\ ·•· $13,}43 ·• Devefo ment • ·· Manhattan Beach Fire Engr/Paramedic $17,659 Manhattan Beach $.15,525 Norwalk Palmdale City Attorney Palmdale .. cifrb.!fanager·· · elf)' Miillag;¢r< Palmdale Director Of Public Sewer Maintenance $214,725 $43,431 $7,559 $32,972 Works Pasadena City Manager City Manager $269,169 $37,997 $12,593 $16,500 $14,786 Pasadena City Attorney/City City Attorney $226,933 $32,707 $10,697 $15,374 Prosecutor Pasadena Assistant City City Manager. •· $221,~40 $29,304 $9,584 $15,374 Mana er · Pasadena Police Chief Police $220,966 $59,868 $21,452 $15,374 Pasadena Assistant City City Manager $217,177 $29,304 $9,584 $14,414 Mana er Pasadena Gen Mgr-Water & Water And Power $217,130 $30,349 $9,926 $14,414 Power Pasadena Fire Battalion Chief Fire $212,405 $43,596 $15,624 $16,118 40 Hour Pasadena Director Of Finance Finance $208,140 $27,905 $9,127 $14,920 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT C-22 3-221 Santa Monica Santa Monica Deputy Police Chief Investi ations Administrative Services CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT $10,883 $24&,558 $23,267 $1,166 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-23 3-222 Santa Monica Santa Monica Santa Monica Su ression Deputy City Attorney Ill CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT $19,356 City Attorney $18,103 $19,716 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT C-24 3-223 CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT $11,710 $15,334 $14,324 Torrance Police Lieutenant Police $247,136 $81,216 $15,887 $863 $15,334 Torrance Fire Chief, Battalion Fire $240,358 $71,284 $15,727 $1,644 $14,797 Torrance Police Captain Police $239,604 $91,400 $17,876 $14,324 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-25 3-224 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT West Hollywood 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT C-26 3-225 West Hollywood West Hollywood Westlake Village Whittier Housing Manager Director of Human Services •.···City Miw~get City Manager- Provisional Housing And Residential Code Com liance Department of Human Services & Rent Stabilization · Ad~inistration City Manager CITIES FISCAL HEAL TH, GOVERNANCE AND MANAGEMENT $205,383 $22,731 $11,389 $1,575 $5,918 $200,120 $30,937 $15,318 $1,800 $11,891 $213;508 $25,509 $15,772 $6,324 $17,174 $219,052 $38,290 $8,689 $10,222 $16,425 Source: California State Controller's Office "Government Compensation in California." (http://publicpay.ca.gov). The information presented is osted as submitted b the re ortin en ti . The State Controller's Office is not res onsible for the accurac of this information. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT C-27 3-226 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT APPENDIX D: PROGESS IMPLEMENTING PRIOR RECOMMENDATIONS Appendix D: Pro2ress lmplementin2 Prior Recommendations City Implementation Complete Implementation In-Leadership Process Considering • Implemented a Revenue and Expenditure Management Policy • Amended General Fund Reserve Policy and increased the reserve amount • Established a formal audit Alhambra committee • Adopted a policy for updating accounting policies and procedures • Adopted a formal fraud reporting policy to provide a mechanism for confidential and anonymous reporting • Developing Five-Year • Establishing a formal financial plan audit committee • Development of a strategic plan • Development of \ performance measures Arcadia • Updating financial policies and procedures • Updating fraud reporting policies and procedures • Developing a General Fund Reserve policy • Adopted budget policies • Adopted a five-year financial forecast • Adopted a General Fund Bell reserve policy • Developed workload measures as a preliminary step toward developing performance measures 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT D-1 3-227 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Appendix D: Progress Implementing Prior Recommendations City Implementation Complete Implementation In-Leadership Process Considering • Establishing a formal Cerritos audit committee • Developing a strategic • Establishing a formal plan audit committee Compton • Developing performance measures • Developing a General Downey Fund reserve policy • Post audited financial • Long term financial • Establishing a formal statements on the City's plan audit committee website. • Two year budget • Strategic plan • Performance indicators Industry • Accounting policies and procedures • Fraud reporting policies and procedures • General Fund reserve policy • Fraud reporting policies • Establishing the Irwindale and procedures entire City Council as the formal audit committee • Establishing a formal Palmdale audit committee • Increased the unassigned • Established a fraud • Multi-year budget General Fund reserve goal to reporting hot line Pasadena 20% • Reviewing and updating financial policies and procedures • Policy to monitor the review Pomona and update of financial policies and procedures • Increased General Fund • Establish a formal audit Reserve committee Santa Review of financial • Monica policies and procedures every three years 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT D-2 3-228 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT Appendix D: Proeress Implementine Prior Recommendations City Implementation Complete Implementation In-Leadership Process Considerine • Establish a formal audit • Developing a two- committee year budget Signal Hill • Policy providing for the routine change of independent auditor • Develop a 2 year budget • Review financial • Establish a formal • Develop a General Fund policies and procedures audit committee Temple Reserve Policy every three years • City Develop a strategic plan • Develop fraud reporting • • Develop performance indicators policies • Establishing the Whittier entire City Council as the formal audit committee 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT D-3 3-229 CITIES FISCAL HEALTH, GOVERNANCE AND MANAGEMENT 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT D-4 3-230 CITIZENS' COMPLAINT COMMITTEE COMMITTEE MEMBERS Charles Dolcey -Chair Jacqueline Brown Albert Handschumacher Richard Huber Franklin Wurtzel Ung Vol Yu Gilbert Zeal 3-231 13. REPORT OF THE CITIZENS' COMPLAINT COMMITTEE In accordance with established practice, the 2012-2013 Los Angeles County Civil Grand Jury (Grand Jury) established a Citizens Complaint Committee (Committee) to review and consider written communications addressed to it by members of the public. During its term, the Committee reviewed 72 letters from citizens, many of which contained accompanying documents. Twenty-three letters requested Grand Jury review of criminal proceedings, convictions or alleged police or prosecutorial misconduct which were beyond the Grand Jury's jurisdiction. In four instances, citizens requested that the Grand Jury take action in matters involving State Hospitals or the Workers Compensation Appeals Board which are also beyond the jurisdiction of the Grand Jury. In nine instances, the Grand Jury was asked to intercede in private contractual issues or employment relations issues which were beyond the Grand Ju~y's jurisdiction. In two instances, after consideration by the entire Grand Jury, citizens were referred to other Los Angeles County or City agencies to pursue the issues raised. In many other cases, the Grand Jury determined that no action was appropriate. In one instance, a letter received from a citizen regarding the transfer of funds by the City of Glendale from Glendale Water & Power to the City's general fund prompted a formal investigation by the Grand Jury. As a result, the Grand Jury issued an interim report on March 22, 2013 expressing its concerns regarding Glendale's compliance with Propositions 218 and 26. The Grand Jury also received several letters regarding housing in the City of Los Angeles. These letters were received well into the Committee's term. The Grand Jury then informed the citizens who wrote letters to the Grand Jury and encouraged them to communicate their concerns to the 2013-2014 Los Angeles County Civil Grand Jury. Citizens who wish to submit complaints to the Grand Jury should do so by using the following complaint form and guidelines which may also be found at the Civil Grand Jury website, www.http://www.lasuperiorcourt.org/jury/pdf/investigation.pdf. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 161 3-232 CITIZENS' COMPLAINT COMMITTEE CITIZEN COMPLAINT FORM Please Review Attached Complaint Guidelines Before Completing this Form PLEASE PRINT DATE: -------------- 1. Who: Your Name: City, State 1 Zip, Code: __________________________ _ Telephone: () Extension: _____ _ 2. What: Subject of Complaint. Briefly state the nature of complaint and the action of what Los Angeles County department, section, agency, or official(s) that you believe was illegal or improper. Use additional sheets if necessary. 3. When: Date(s) of incident: 4. Where: Names and addresses of other departments, agencies or officials involved in this com- plaint. Include dates and types of contact, i.e. phone, letter, personal. Use additional sheets if necessary. 5. Why/How: Attach pertinent documents and correspondence with dates. Rev 01/17/2013 162 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-233 CITIZENS' COMPLAINT COMMITTEE Complaint Guidelines Communications from the public can provide valuable information to the Grand Jury. Any private citizen, government employee, or officer may submit a completed complaint form to request that the Grand Jury conduct an investigation. This complaint must be in writing and is treated as confidential. Prior to submitting the Complaint Form to the Grand Jury office, please retain a copy for your records if needed. Receipt of all complaints will be acknowledged. If the Civil Grand Jury determines that a matter is within the legally permissible scope of its investigative powers and would warrant further inquiry, additional information may be requested. If a matter does not fall within the Grand Jury's investigative authority or the Jury determines not to investigate a complaint, no action will be taken and there will be no further contact from the Civil Grand Jury. The findings of any investigation conducted by the Grand Jury can be communicated only in a formal final report published at the conclusion of the Grand Jury's term, June 30th. Some complaints are not suitable for civil grand jury action. For example, the Grand Jury has no jurisdiction over judicial performance, actions of the court, or cases that are pending in the courts. Grievances of this nature must be resolved through the established judicial appeal system. The Civil Grand Jury has no jurisdiction or authority to investigate federal or state agencies. Only causes of action occurring within the County of Los Angeles are eligible for review. The jurisdiction of the Civil Grand Jury includes the following: • Consideration of evidence of misconduct against public officials within Los Angeles County. • Inquiry into the condition and management of the jails within the county. • Investigation and report on the operations, accounts, and records of the officers, departments or functions of the county including those operations, accounts, and records of any special legislative district or other district in the county created pursuant to state law for which the officers of the county are serving in their ex officio capacity as officers of the districts. • Investigation of the books and records of any incorporated city or joint powers agency located in the county. Mail complaint form to: Los Angeles County Civil Grand Jury Clara Shortridge Foltz Criminal Justice Center 210 West Temple Street, Eleventh Floor, Room 11-506 Los Angeles, CA 90012 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 163 3-234 CITIZENS' COMPLAINT COMMITTEE 164 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-235 CONTINUITY COMMITTEE COMMITTEE MEMBERS Jeff Clements-Chair Mel Widawski Thomas Scheerer Gil Zeal Jerry Strofs 3-236 14. CONTINUITY COMMITTEE EXECUTIVE SUMMARY The Continuity Committee serves as a bridge connecting the work of previous Los Angeles County Grand Juries (Grand Jury) to the current Grand Jury. The Continuity Committee main- tained complete records ofresponses to the recommendations by the 2011-2012 Grand Jury. Fur- ther, the 2012-2013 Continuity Committee created a list of current recommendations issued in 2013. The Continuity Committee maintained copies of previous Grand Jury reports and docu- ments in the Grand Jury files. (California Penal Code (PC) §933.05.) The Continuity Committee provided follow-up activities to ensure that public agencies fulfill their obligations under PC §933(c) to respond in a timely manner to recommendations made in the prior Grand Jury reports. There exist at least three sources for reviewing agency responses to the recommendations: 1) the following summary table which categorizes the responses, 2) the Grand Jury website provides copies of the agency response letters, and 3) in general, each agen- cy's website provides a copy of their particular response. There were 526 recommendations made by the 2011-2012 Grand Jury, of which 447 were agreed to by the affected agency. There were 31 recommendations to agencies which were specifically disagreed with. The remainder of the recommendations resulted in a response of neither "agree" nor "disagree," but with explanations as summarized in the following table. The Continuity Committee also organized and maintained information from prior year Grand Jury reports for future Grand Juries to facilitate their investigative and reporting responsibilities. RECOMMENDATIONS The following practices should be undertaken and enhanced where feasible by each succeeding Continuity Committee: 14.l Collect, categorize and summarize the responses from all of the agencies and include the results in the Grand Jury Final Report. 14.2 Update the Continuity Committee hard copy files containing responses to previous years' Grand Jury Reports. 14.3 Maintain and place relevant information into a library containing at least five prior years' Grand Jury reports, reference books, and current directories of agencies in Los Angeles County, its municipalities, and special districts as well as information for each Grand Jury standing committee. 14.4 Maintain the computer-based tracking system for transferring electronic files to succeed- ing Grand Juries. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 165 3-237 CONTINUITY COMMITTEE 14.5 Compile all agency responses and submit the originals to the Presiding Judge and submit a copy to the staff for publication on the Grand Jury website. METHODOLOGY To fulfill its responsibilities as outlined in the Executive Summary, the 2012-2013 Grand Jury Continuity Committee performed the following activities: • Maintained the Grand Jury library system. • Reviewed all responses to recommendations made in the 2011-2012 Grand Jury Final Report. Allowed an extension of the ninety (90) days to respond to the recommenda- tions. In sixteen cases, the Continuity Committee followed up with reminder letters to those who did not respond. The Continuity Committee then followed up by a phone call to those who did not respond to the second letter. • Created a response summary table for the current 2012-2013 Grand Jury recommenda- tions. This table is provided to the upcoming Grand Jury so that responses can be tracked by the future Continuity Committee in a timely manner, as required by PC §933.05(f). An electronic and hard copy of this tracking table has been provided to the 2013-2014 Continuity Committee for their use in tracking Agency responses to the 2012-2013 Re- port. • Updated the existing directory of all Grand Jury reports from the preceding five years, in- cluding the departments, cities and other governmental entities directly involved in conti- nuity committee reports. • Cataloged and updated other resource documents for easy research access. • Updated the Continuity Committee Manual notebooks and resources. BACKGROUND In the past, the previous Grand Jury Reports and files were discarded and not placed in a central location. In recent years, improvement in the sharing of information between successive Grand Juries has occurred. Information sharing can and should continue to be strengthened through practices introduced and overseen by the Continuity Committee. FINDINGS The function of the Continuity Committee is primarily archival and organizational, maintaining legally mandated records and passing on to each succeeding Grand Jury an orderly library and filing system of investigated agencies. The Continuity Committee found that it was able to make productive use of some of the information left behind by the previous Grand Jury. However, ra- ther than directly following the previously established tracking system, the revised tabular format included here was created for the recording of responses from public agencies that more closely matches the actual language expressed in PC §933.05. 166 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-238 CONTINUITY COMMITTEE REQUIRED RESPONSES Recommendation Responding Agency 14.1-14.5 2013-2014 Los Angeles County Grand Jury 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 167 3-239 CONTINUITY COMMITTEE Responses Ill "C c: ~ 0 I/I &! :;::; n:s "C "C ... -0 0 Cl> "C c: :::!: .l!! "C C> c: Cl) .c c: O" Report Title Agency Brief Description of Topic Cl> E Q) n:s E -j E &! D.. c: Cl) E "C Cl) Cl) ii Q) >-en Cl) E I/I "C Q. "C c: 0 -c: .5 .l!! .§ :I :c c: Cl) " Cl) Cl) ii 0 c: -c: Cl> ~ E Q. 0 Q) >-"' :I 0::: Cl) .5 I/I E =a ... u.. C> Cl) ~ c: Q) Cl) Q) .c n:s ii Q. :e "C ... .!!! = t:: Sl C> .5 ~ ~ ~ .§ IU :I <C c a. u.. z Adopt financial plan/policy 1 x Balanced budget 2 x One-time revenues 3 x Prepare muffi-year budget 4 x x Es1ab a "rainy day" fund 5 x Es1ablish audit oormili:le 9 x x City Manager Independent external auditor 10 x City of Cerritos Require a 'two-mon1h" rule 14 x Fair prices for services 18 x x Charter Cities' Con1rol over change orders 19 x x Fiscal Health, co Document oompliance 20 x !.() Governance and I c.o Review employee wages 21 x Manag,ement !.() Practices Access wages paid by o1her cities 22 x Adopt financial plan/policy 1 x x Balanced budget 2 x x One-time revenues 3 x x City Manager Prepare multi-year budget 4 x x City of Signal Es1ab a 'rainy day" fund 5 x x Hill Es1ablish audtt oormili:le 9 x x Independent external auditor 10 x x Review employee wages 21 x Access wages paid by o1her cities 22 x 168 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 3-240 CONTINUITY COMMITTEE Responses Ill "C c ~ ~ UI "C "C .. 'tJ -0 .SI 0 Cl) c :::e "C C> c Cl) c Report Title Agency Brief Description of Topic Cl) E ..c Cl> er l'CI E -j E &! c.. c Cl) E "C Cl) m Q. Cl> >-Cl Cl) E "C Q. "C c 0 -c .5 .SI c Cl) .§ .a '6 u ~ Cl) Q. 0 c "' c Cl) E Q. -Cl> >-:i ~ Cl) .5 m 0 E =iij .. LI. e Cl Cl) c Cl> Cl> I'll Q. .. Q. ~ ..c "C Cl II) ~ ~ ~ t: Cl> i5 .5 .§ cu :i Cl> <C a.. LI. z Adopt financial .plan/policy 1 x x Balanced budget 2 x x One-tirre revenues 3 x x Prepare multi-year budgets 4 x Estab a "rainy day" fund 5 x x Establish audit comrritlee 9 x City Manager Independent exilrnal audiror 10 x x City of Whittier Require a 'lwo-mon1h" rule 14 x x Fair prices for services 18 x Control over change orders 19 x x Docurrent compliance 20 x x Charter Cities' Fiscal Health, Review employee wages 21 x x 00 Governance and I.{') Access wages paid by o1her cities 22 x x I co Management I.{') Adopt financial plan/policy 1 x x Practices Balanced budget 2 x x One-tirre revenues 3 x x Prepare multi-year budgets 4 x Estab a "rainy day" fund 5 x x Develop performance rreasures 7 x x City Manager Define counciVmayor relationship 8 x x City of Independent exilrnal audiror 10 x Lancaster Review accounting policies 11 x x Require a "two-mon1h" rule 14 x Control over change orders 19 x Docurrent compliance 20 x x Note aciual compensation 21 x x Access wages paid by o1her cities 22 x x 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 169 3-241 CONTINUITY COMMITTEE -- Responses Ill "Cl s:: ~ 0 0 i "Cl 1 .. "C 1:! 0 0 Q) :iii "Cl en Agency Brief Description ofT opic s:: ~ = c C" Report Title Q) QI CG 1 i ~ a. E 'i G> J E 5: ~ "Cl i5. >-1:1) "Cl c 0 ~ c: ~ .5 ::J :s (,,) ~ 0 -~ 0 c Q) i Q. -~ ~ ::s VI 0 .. 0:: G> mi G> c: '113 QI LI. G> QI € "Cl l:b ~ -... -! ~ i ~ i QI c nl ::s :! < a. LI. Adopt1inancial plan/policy 1 x x Balanced budget 2 x x One-time revenues 3 x x City Manager Prepare multi-year budgets 4 x x City of Estab a "rainy day" fund 5 x x Palmdale Establish audit cormittee 9 x x Independent exernal auditor 10 x x Review errployee wages 21 x x Access wages paid by o1her cities 22 x x Adopt financial plan/policy 1 x x Balanced budget 2 x x One-time revenues 3 x x Prepare multi-year budoets 4 x x City Manager Estab a "rainy day" fi.Jnd 5 x x City of Burbank Independent external auditor 10 x x Review accounting policies 11 x Review policies re abuse, fi"aud 12 x x Charter Cities' Review employee wages 21 x x Fiscal Health, CXl Access wages paid by other 22 x x Governance and I() I co Adopt financial plan/policy 1 Management I() x x Practices Balanced budoet 2 x x One-time revenues 3 x x City Manager Prepare multi-year budgets 4 x x City of Es.tab a "rainy day" fi.Jnd 5 x x Glendale Independent external auditor 10 x x Require a "two-month" rule 14 x x Review employee wages 21 x x Access wages paid by other 22 x x Adopt1inancial plan/policy 1 x x Balanced budget 2 x x One-time revenues 3 x x City Manager Prepare multi-year budgets 4 x Estab a "rainy day" fund 5 x x City of Independent exernal auditor 10 x x Pasadena · Review accounting policies 11 x x Negotia1e fair prices 18 x x Review errployee wages 21 x x Access wages paid by o1her cities 22 x x 170 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-242 CONTINUITY COMMITTEE -- Responses fl) "C c: ~ 0 .. i "C "C .. 0 0 Cl) "CJ 1:! 2 .! "C Report Title Cl Agency Brief Description ofTopic c: ~ = ii tr Ill Cl) 1:! i &! a.. E al 'i E ~ Cl) ! >. = Ill "C 15. "C c 0 1:! c: ~ .§ ~ :s u al ~ ! i c Cl) 2 ~ ~ :I ~ E .. c::: Cl) "Iii ~ LI. Cl) ~ € ~ .. 15. 'f "C e, ~ ~ ~ ~ i5 .§ Ill :I :! <( Q. LI. Adoptnnancial plan/policy 1 x x Balanced budget 2 x x One-tirre revenues 3 x x Prepare multi-year budge1s 4 x x Estab a "rainy day" fund 5 x x City Manager Denne council/mayor relationship 8 x x Estab an audit comrrillee 9 x x City of Independent exlernal audibr 10 x x Alhambra Review accounting policies 11 x x Review policies re abuse, fi"aud 12 x x Develop a "CAFR" 15 x x Conlrol over change orders 19 x x Review e!l1lloyee wages 21 x x Access wages paid by o1her cities 22 x x Adoptnnancial plan/policy 1 x x Balanced budget 2 x x One-tirre revenues 3 x x Prepare multi-year budgets 4 x x Estab a "rainy day" fund 5 x x Estab a slralegic plan 6 x x Charter Cities' Develop perfbrmance rreasures 7 x x Fiscal Health, ex> City Manager Estab an audit comrrillee 9 x Governance and "? City of Arcadia CD Independent exlernal audibr 10 Management Li) x x Practices Review accounting policies 11 x x Review policies re abuse, fi"aud 12 x Require a "two-rron1h" rule 14 x Negotiale fair prices 18 x x Review e!l1lloYee wages 21 x x Access wages paid by o1her cities 22 x x Adoptnnancial plan/policy 1 x x Balanced budget 2 x x One-tirre revenues 3 x x Prepare multi-year budgets 4 x x Estab a "rainy day" fund 5 x x Develop perfbrmance rreasures 7 x x City Manager Estab an audit comrrillee 9 x x City ofTemple lndependentexlernal audibr 10 x x City Review accounting policies 11 x x Review policies re abuse, fi"aud 12 x x Require a "two-rron1h" rule 14 x x Conlrol sole-sourced conlracts 17 x x Conlrol over change orders 19 x x Review e!l1lloyee wages 21 x x Access wages paid by o1her cities 22 IX x 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 171 3-243 CONTINUITY COMMITTEE Responses Ill i c: 0 I/) ;: cu "Cl "Cl .. -0 0 Cl) "C c :E .! "Cl C> Brief Description of Topic c: Cl) .c c: tr Report Title Agency Cl) E G) cu -i E &! c.. E c Cl) E "C Cl) Cl) ii G) >-Cl Cl) E I/I "Cl Q. "Cl c: 0 -c .5 .! .§ .a 'S c Cl) " e Cl) ii 0 c: I/) c: Cl) E 0.. 0 G) .?-:s .5 I/I E .. 0:: Cl) ~ Cl) Cl) c iii G) u.. ~ G) ii .. Q. t:: .c "Cl Cl I/I = ~ ~ t: G) c .5 ~ .§ Ill :s G) <C a. u.. z Adopt financial plan/policy 1 x x Balanced budget 2 x x City Manager One-tirre revenues 3 x x Prepare multi-year budget 4 x x City of Culver Es1ab a "rainy day" fund 5 x x City Independent external auditor 10 x x Review employee wages 21 x x Access wages paid by other cities 22 x x Adopt financial plan/policy 1 x x Balanced budget 2 x x One-tirre revenues 3 x x Prepare multi-year budget 4 x x Es1ab a "rainy day" fund 5 x x Es1ab a slrategic plan 6 x x Develop perfo'rmance rreasures 7 x x City Manager Define counciVmayor relationship 8 x x Charter Cities' City of Es1ab an audit comrri1i3e 9 x Fiscal Health, 00 Inglewood Independent external auditor 10 x x Governance and L.() I co Review accounting policies 11 Management L.() x x Practices Review policies re abuse, fraud 12 x x Update internal conlrol rreasures 13 x Negotiate fair prices 18 x x Conlrol over change orders 19 x Doc compliance w/ procedural req't 20 x Review employee wages 21 x Access wages paid by other cities 22 x x Adopt financial plan/policy 1 x x Balanced budget 2 x x One-tirre revenues 3 x x City Manager Prepare multi-year budget 4 x x Es1ab a "rainy day" fund 5 x x City of Santa Es1ab an audit comrri1i3e 9 x x Monica Independent external auditor 10 x x Review accounting policies 11 x x Review employee wages 21 x x Access wages paid by other cities 22 x x 172 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-244 CONTINUITY COMMITTEE Responses f/I "1:1 c ii: 0 QI i Ill c:: "1:1 1l ... " ~ 0 0 Q) :&: ... "1:1 ~ Agency Brief Description of Topic c = c Cl" Report Title Q) E G> a.. E i G) 'i E ~ E 'i ~ f G> >. Cl "1:1 ! "1:1 c 0 i ~ ::I ;:; (,) G) ~ ... f fl> c Q) G) 8 e .2' ::I 0:: ~ t ... LL. 'ii G> G> € "1:1 .. f ! l! en ~ ~ ~ QI i5 ~ ::I QI <( Cl. LL. z Adoptfinancial plan/policy 1 x x Balanced budget 2 x One-time revenues 3 x Prepare multi-year budgeli 4 x Es1ab a "rainy day" fi.Jnd 5 x x Develop perbrmance measures 7 x x Define council/mayor relationship 8 x Es1ab an audit committae 9 x City Manager Independent ex1ernal audilor 10 x Review accounting policies 11 x x City of Bell Upda1e in1ernal control measures 13 x x Require a "two-month" rule 14 x x Develop a "CAFR" 15 x x Control sole-sourced contracls 17 x x Negotia1e fair prices 18 x x Control over change orders 19 x x Doc compliance w/ procedural req'li 20 x x Charter Cities' Review employee wages 21 x x Fiscal Health, 00 Access wages paid by other cities 22 x x l.C) Governance and ' (0 Adopt financial plan/policy 1 Management l.C) x x Practices Balanced budget 2 x x One-time revenues 3 x x Prepare multi-year budgeli 4 x x Es1ab a "rainy day" fi.Jnd 5 x x Es1ab a stra1egic plan 6 x x Develop perbrmance measures 7 x x Define council/mayor relationship 8 x x City Manager Es1ab an audit committae 9 x x Independent ex1ernal audilor 10 x x City of Ind us try Review accounting policies 11 x x Review policies re abuse, taud 12 x x Upda1e in1ernal control measures 13 x x Require a "two-month' rule 14 x x Publish reporli on in1ernet 16 x x Control sole-sourced contracls 17 x x Negotia1e fair prices 18 x x Review employee wages 21 x x Access wages paid by other cities 22 x x 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 173 3-245 CONTINUITY COMMITTEE Responses fl) 'C c ~ 0 en a:: i 'C 'C .. 0 0 (I) 'tJ i :e .fl 'C Report Title Ol Agency Brief Description of Topic c :S c i:r (I) Cl> !G c: i &! c.. E i Q) ~ E ~ ~ ]" 'C r >. Cll 'C c 0 1 r:: s .a ;; (,) ~ ]" 0 c (/) c Q) i" -Cl> ~ = 0::: ~ 0 E .. LI.. Q) r:: ill Cl> Cl> € 'C ]" .. ii l:! ~ ~ ~ ~ Cl> i5 § ~ = Cl> 0.. LI.. z Adopt nnancial plan/policy 1 x x Balanced budget 2 x x City One-time revenues 3 x Prepare multi-year budgets 4 x x Administrator Eslab a "rainy day" fund 5 City of Vernon x x Independent ex1ernal auditor 10 x x Require a "two-month" rule 14 x Review employee wages 21 x x Access wages paid by other cities 22 x x Adopt nnancial plan/policy 1 x x Balanced budget 2 x x One-time revenues 3 x x City Manager Prepare multi-year budgets 4 x x Eslab a "rainy day" fund 5 x x City of Downey Independent ex1ernal auditor 10 x x Require a "two-month" rule 14 x x Review employee wages 21 x x Access wages paid by other cities 22 x x Adopt nnancial plan/policy 1 x x Charter Cities' Balanced budget 2 x x Fiscal Health, co One-time revenues 3 x x L() Governance and I Prepare multi-year budgets 4 x c.o 5 Management L() Eslab a "rainy day" fund x x Practices City Manager Eslab an audit commiliee 9 x City of Pomona lndependentex1ernal auditor 10 x Review accounting policies 11 x x Require a "two-month" rule 14 x x Review employee wages 21 x x Access wages paid by other cities 22 x x Adopt nnancial plan/policy 1 x x Balanced budget 2 x x One-time revenues 3 x x Prepare multi-year budgets 4 x Eslab a "rainy day" fund 5 x x Eslab an audit commiliee 9 x City Manager lndependentexlernal auditor 10 x x City of Irwindale Review policies re abuse, fi"aud 12 x x Con1rol sole-sourced conb"acls 17 x x Negotiale fair prices 18 x x Con1rol over change or~ers 19 x x Doc compliance w/ procedural req'ts 20 x x Review employee wages 21 x x Access wages paid by other cities 22 x x 174 2012-2013 Los ANGELES COUNTY CNIL GRAND JURY REPORT 3-246 CONTINUITY COMMITTEE Responses I/) ;g c 0 UI &! +:i C\'S "'O "'O ... .... 0 0 Cl> "" c :e .! "'O C) Brief Description of Topic c CP = c CT Report Title Agency Cl> E GI C\'S .... E &! 0.. E c CP 'i E "C CP CP Q. GI :>. Cl CP E Ill "'O Q. "'O c 0 .... c .5 .! .§ .a :s c CP (,) CP CP Q. 0 c "' c Cl> ~ E a. 0 GI .?-:I .5 fl E ... 0:: f en CP c iii GI LI. GI C\'S Q. Q. t! ~ "'O 3: Ill ~ ~ ~ GI Ci .5 .§ Ill :I GI 0. LI. z Adopt financial plan/policy 1 x x Balanced budget 2 x x One-tirre revenues 3 x x Prepare multi-year budgets 4 x x City Manager Estab a "rainy day" fund 5 x x Estab a s1ra1egic plan 6 x x City of Develop performance rreasures 7 x x Compton Independent ex1ernal audi1or 9 x Compliance wi1h indep audibr 10 x x Require a "two-month" rule 14 x x Review employee wages 21 x x Access wages paid by other cities 22 x x Adopt financial plan/policy 1 x Balanced budget 2 x Charter'Cities' One-tirre revenues 3 City Manager x Fiscal Health, 00 LO Prepare multi-year budgets 4 x x Governance and I City of c.o Estab a "rainy day" fund 5 x Management LO Redondo Practices Beach Independent ex1ernal audi1or 10 x Require a "two-month" rule 14 x x Review employee wages 21 x Access wages paid by other cities 22 x Adopt financial plan/policy 1 x Balanced budget 2 x One-tirre revenues 3 x Prepare multi-year budgets 4 x City Manager Estab a "rainy day" fund 5 x Estab an audit comni11ee 9 x x City ofTorrance Independent ex1ernal audi1or 10 x Require a "two-month" rule 14 x Con1rol over change orders 19 x x Review employee wages 21 x Access wages paid by other cities 22 x 2012-2013 Los ANGELES COUNTY CIVIL GRAND JuRY REPORT 175 3-247 CONTINUITY COMMITTEE Responses Ill i c 0 Ill ~ Ill "Cl "Cl .. c 0 0 Q) "O ::& .s "Cl Report Title Cl Agency Brief Description of Topic c Cll :€ c O" Ill Q) -E GI &! 0.. E c Cll ~ E E 'tJ Cll Cll i5. GI >-Cll ~ E Ill "Cl Q. "Cl c 0 Cll c .5 .s .§ .a :c u Cll Cll i5. 0 c fl) c Q) l!! E Q, 0 GI >-:I 0:: ~ .5 f! E =iij .. LI. Cl Cll c GI Cll i5. GI .c "Cl Ill = = Q. t: t: 3l Cl c .5 § 0 § .§ IU :I <C z D. LI. z First5 LA 108 Interim CEO Implement Audit Items 1 x x First 5 Comm Monilor Activites 2 x x Continue 1o Monilor Cases 2 x x ChiefLACFD Additional Medical 4850 Plans 4 x x Medical 4850 Plans ???? 5 x x 4650 Claims Prior lo Retire 8 x x Use F.D. Carve Out Program 1 x x Chief Probation Continue-Review Cases 2 x x Officer Determine Common Job Injuries Job 3 x x Probation Additional 4850 Benefi5 4 x x Department Medical Trea1ment Plan 5 x x 4850 Claims Prior lo Retire 8 x x Use F.D. Carve Out Program 1 x x Labor Code 140 Continue-Review Cases 2 x x 4850 Sheriff Los Determine Common Job Injuries Job 3 x x Angeles Additional 4850 Benefi5 4 x x Sheriffs Medical Trea1ment Plan 5 x x Department All Company Injured Employees 6 x x Modiied Duty Employee lo moni1or 7. x x 4850 Claims Prior 1o Retire 8 x x Supervisor 1D 9 x Supervisor 2D 9 x Supervisor 3D Legislation br new 4850 Benei5 9 x Supervisor 4D 9 x Supervisor 5D 9 x Emergency Co-Ordina1or 1 x x On Going Training 2 x x General Eleclronic Case Files 4 x x Manager, Senior Criminalist Position 5 x x Officer of the New Vans 6 x x Coroner 3 new Genera1ors 7 x x Office of the 150 Replace Reginal Ofice 8 x x Coroner Keyless Card Entry 9 x Supervisor 1 D 3 x x Supervisor 2D 3 x x Supervisor 3D Replace Retiring Medical Direc1or 3 x x Supervisor 4D 3 x x Supervisor 5D 3 x x 176 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-248 CONTINUITY COMMITTEE Responses "' :g c 0 (/) & :;::; cu ,, ,, .. -0 0 Cl> ,, c :E .SI ,, Report Title C> Brief Description of Topic c Cl> = c: CT cu Agency Cl> -E GI & ll.. E c Cl> 'i E E "Cl Cl) Cl) Q. GI >. Cl Cl) E Ill ,, i5. ,, c: 0 -c .5 .SI .§ .a :s c Cl) u Cl) Cl) Q. 0 c: en c: Cl> ~ E Q. 0 GI ~ :I .5 ~ E .. ix: ~ C> Cl) c iU GI LL. GI ca Q. i5. t! .c: ,, C> Ill § 0 § t:: 3l c .5 .§ co :I < z Q. u. z Perpe1ual Medical system 1 x x Los Angeles Use of Generic Drugs 2 x x Medication for Auto-Medical System 3 x x Inmates 160 Sheriffs Recording Aub-Meds 4 x x Department Pharmacy Work Area 5 x x x Pharmacy at Pik:hess Center 6 x x DirYDS Independent Living Program 5 x CEO MTA MTA 1ransitpasses 1br TAY 6 x x Aging out of 167 Director Dedicated Ho~ine 1 x x Foster Care Department of Expand TA Y's Workshop 2 x x Consumer Volunteer for TA Y's Help 3 x x Affairs Unpaid Help 1br TAY Issues 4 x x 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 177 3-249 CONTINUITY COMMITTEE Responses Ill :g c 0 ti) & :;:::; Cl:I 'ti 'ti .. -0 0 Cl) "C c :E .l!! 'ti c Cl) c: Report Title C> Agency Brief Description of Topic Cl) E .c GI C" Cl:I -j & Cl.. E c Cl) E E "'O Cl) Cl) Q. GI >-Cl Cl) E Ill 'ti ii 'ti c: -c .5 .l!! 0 c Cl) .5 ::i :c " Cl) 0 c: -Cl) Q. Cl) c: Cl) e E a. 0 GI .?:-::i .5 ~ E .. 0:: Cl) Cl Cl) c 'iii GI u. e GI .c 111 Q. ii t:: 'ti Cl Ill ~ ~ ~ t:: GI c .5 E I'll ::i GI < D. u. z It takes a comrrunity 1.1 x x Child Right:; 1.2 x x Objeciive to Reduce Death 1.3 x x Reporting 1.4 x x lnadequa1e Services 1.5 x x Implementation 1.6 x x Refine Assesment 2.1 x x Policy Simplification 2.2 x x Child Safety 2.3 x x Death Protocol 2.4 x x Reduce Deaths 2.5 x x Investigation List 2.6 x x Open Cases 2.7 x x Cross Reporting 2.8 x x Follow-up 2.9 x x Monibr Decisions 2.10 x x Department of Assessment Cen1er 3.1 x x Child Death Children & lncorpora1e Models 3.2 x x Mitigation in Los 209 Family Adapt UCLA Focus 3.3 x x Angeles County Services (cont) ParentTraining 3.4 x x Mental Health 3.5 x x Address High Risk 3.5.1 x x Create Group 3.5.2 x x Suicide Training 3.5.3 x x Public Education 3.6 x x Education Program 3.6.1 x x Announcement:; 3.6.2 x x Media Image 3.6.3 x x Technology 4.1 x x Tech Tools 4.2 x x Improve Process 4.3 x x Standardization 4.3.1 x x Placement 4.4 x x Monibring 4.5 x x Organize Structure 5.1 x x Work Culture 5.2 x x 178 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-250 CONTINUITY COMMITTEE Responses Ill ;g s:: 0 Ill &! ; C'll "Cl "Cl ... .... 0 0 Cl) "C c: :ii: J!l C) s:: Cl) c: "Cl Report Title Agency Brief Description of Topic Cl) E £i Cl) tr C'll E .... E &! Q. c: Cl) "i E "C Cl) Cl) Q. Cl) >. Cl Cl) E Ill "Cl Q. "Cl c: 0 .... c .5 J!l c Cl) ..§ ::s 'S CJ ~ 0 c: -Cl) Q. "' c: Cl) E Q.. .... 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Village at LAC• 1.6 X X Director Collab for standards for HUB 2.1 X Betterclassific. of'follow-up' repor1s 2.2 X X Department of 1-------------1-'-"--+--+---+-=-X""+-+--1-i--+--+--1 Health Monthly repor1s: types, cos~ etc. 2.3 Services Co-located PHNs csws follow-up~ 3.5 X Educate CSW/HUB Olnlcs as "Med I 3.6 X MH screen with Initial Med exams 4.2 X Med Fragtvui TAY-HUB as 'Med Home' 5.2 X Transport serv (5.3) to Child. Hosp 5.4 X Expand Children's Med Viii. to TAY 5.5 X Train HUB for Med and MH-TAY 5.6 X New CWS family 6 mo MH Tx 3.3 X Director MH screening tools needed 4.1 X x x x x x x x x x Departmentof ~M_H_s_cre_e_n_w_ith_in_itim_M_e_d_•_xa_m_• __ ..._4_.2--1~X.o-1----+-X'-"--l---+--1----+---11---+---1---1 Mental Health ~M_H_s_cre_e_n_,._1 HU_B._A_da-'-p-tM_A_T_E_m_. __ 4_.3-+-+:-X=+--1---+--1f-"X'-"-+-+---+---1f--I Transport serv (5.3) to Child. Hosp 5.4 X x Coordinate mental health services 1.1 x Primary care at HUB/Hgh Risk pop 1.2 x Maintain Med Home/DCSF youths 1.3 x Track Primary Care visi1s/HUB 1.5 x Expand Child's Med. Village at 11Ar...usc 1 ·6 x Collab for standards for HUB 2.1 X x revise procedures referrus to HUB 3.1 X x Director Mgrs tacilltafe use of HUB 3.2 X x Departmentof ~N_ew_c_w_s_1a_m_ily'--6-m_o_M_H_Tx ___ ..._3_.3--1---+-~1---+-+--+-1----+---1~X-.,--1---1 Children & Mod IV-E expand HUB in-home youth 3.4 X Family Co-located PHNs CSWs follow-up 3 .5 X iMissed A ...... +.. x Services Ed CSWIHUB Clinics as 'Med Homes' 3.6 x MH screen with Initial Med exams 4.2 x Require PHNs attend MAT meetings. 4.4 X x Refer age outTAY -AdultProt Serv. 5.1 X x 18+ DCFS Complex MH to Child. Hosp 5.3 x Transport serv (5.3) to Child. Hosp 5.4 x Expand Children's Med Viii. to TAY 5.5 x Train HUBforMed and MH-TAY 5.6 x Probat Include Prob wards as In CRBs 3 X X DCSF FC name,SSN, DOB all 3 CRBs & 1 X X 311 i-------+s~u~orre~s~s----------1--r--1--+-X-t--r--1---i--1--r--r----1 FC Clear and supress cred recs mon 2 X -Dir Dept Correct the CRB entries ofFC 4 X X 312 Consumer 5 X X DCA menu# -aged out FC -ID theft Affairs Sen Cit DCA volunt aid FC use Cred 6 X X '~-· 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 3-252 CONTINUITY COMMITTEE Responses Ill :g c 0 ti) & :; 'ti 'ti ... "C 1: 0 J!! 0 Cl> :ii: C> c Cl> c 'ti Report Title Agency Brief Description of Topic Cl> E .c Cl) O" CG E -j E & a.. c Cl> E "C Cl) Cl) ii Cl) >-Cl .! E Ill 'ti Q. 'ti c 0 c Cl) c .5 J!! .§ .a :c (,) Cl) Cl) ii 0 c (/) c Cl> ~ E c. -Cl) ~ ::I 0::: .5 ~ 0 E ... Cl) CD Cl) c iii Cl) LL ~ Cl) CG ii Q. t: .c 'ti CD Ill ~ ~ ~ t:: Cl) i5 E E Ill ::I Cl) < a. LL z LAC CEO Coord agenc for ACA implement 1 x x 341 Integrate IT systems HER, EMPI, etc. 4 x x Patient Protect & BOS Use Cal Dual Eligible Pilot Proj 2 x x -Aford. Cc;ire Act 342 DirDHS "med Home" -ACA, Dual Eligible, etc. 3 x x Dir LAC Clearly list Services av ail to seniors. 5 x x BOS Vet DPA each HUB, Monitor# Probat 1 x x Probation 347 Prob Dept Vet DPA each HUB, Monitor# Probat 2 x x Continue to irrplement 1 x x recomrendations Include not implemented due to budet 2 x constrainls in bulge! x Provide reporn to OHS 1.3 x x mHubs & rrryCSW link 2.1 x x Assign Public Heal1h Nurses 3.2 x x AssistlCAN 3.7 x x Al1n Medical Records Report 4.4 x x New FC caegories 3.1 x x The lnregraed Records 4.1 x x Department of """ Department of Assessment ceners 6.1 x Children and I.{) Children and ('t) Assessment ceners goals 6.3 x Family Services Family Services new AWOL s1raregies 6.4 x x congregae care facilities 9 x x group home irrprovement; 9.1 x x Porential TAY reviews 1f x x Evaluation ofTAY reviews 2.0 x seek new revenue sources 2b x x high-risk families 3.0 x x drug rehabili1ation 3d x x Mentor overlap 4a x x Education skills 5.0 x x 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 181 3-253 CONTINUITY COMMITTEE Responses Ill ~ c 0 Cl) ;;:; cu "C "C ... "C -0 s 0 Cl) c :IE "C tn c Cl) c: tr Report Title Agency Brief Description of Topic Cl) E .c GI cu E --E &! ll.. c Cl) -~ E "'C Cl) Cl) c. GI >-Cl Cl) E Ill "C Q. "C c: 0 -c .5 s .§ ::I :s c Cl) CJ ~ Cl) c. 0 c: -c: Cl) E Q. 0 GI ~ (/) ::I 0:: Cl) .5 e E ... u. [!! en Cl) c GI iU GI cu c. Q. t: € "C en Ill ~ ~ ~ GI 2i .5 .§ co ::I GI <( a. u. z recipient unders1anding 5a x x practical living skills 5b x x engourage you1h 5c x x expand age fi'om 18 to 25 6.0 x x information sys1em 7.0 x x Preserving records 1.0 x x Crea1e infi:l Sheets 3.1 x x Medical homes 3.2 x x The Medical homes Hub Clinic 3.3.1 x x Department of """ Department of lnfi:l sharing 4.2 x x Children and LC') Children and ('? Lakewood Model 4.3.1 x x Family Services Family Services Lakewood Model 4.3.2 x x Reginal manager input 4.3.4 x x Tracking caseload 4.4 x x Skilled Heal1h care workers 6.1 x x Katie A improvements 7.1.1 x x Continue Katie A 7.2 x E-SCARS implemen1ation 1.0 x x E-SCARSMOU 2.0 x x Employ Human Services Aids 3.0 x x Central Basin Central Basin Hire a ChiefFinancial Officer 1.0 x x Municipal Water °' Municipal Upgrade accounting policies 2.0 x x District ('.. Water District Hire a purchasing officer 3.0 x x ('? Main1ain library 1 X. x Continuity """ Continuity 0 U pda1e CC hard copy flies 2 x x Committee """ Committee Maintain Compu1er-based !racking 3 x x Provide info 1he update website 4 x x 182 2012-2013 LOS ANGELES COUNTY CNIL GRAND JURY REPORT 3-254 CONTINUITY COMMITTEE Responses Ill "C c -= 0 !II &! :i:; CIS "C "C ... .. 0 0 Q) "ti c :::!!: J!l Cl c Q) c: "C Report Title Agency Brief Description of Topic Q) E .r:. QI O" CIS E .. l E &! c. c Q) E "C Q) Q) c. QI >-Cl Q) E Ill "C Q. 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"C C> Ill ~ '!:: QI i5 .5 ~ ~ .§ 111 ::I QI <C 0.. u. z Secure holding cells 1 x x Facili1y upgrades 2 x x Increase slafing ratios 3 x x Soft flooring 4 x x Physical change 5 x x Repair visilation boo1h 6 x x Los Angeles Improve slaffing and ratios 7 x x County Sheriff's Department Remodel facili1y 8 x x Video equip and update toile1s 9 x x Pii::hess-lncrease staffing 10 x x Pii::hess-lncrease staffing 11 x x Pii::hess-lncrease staffing 12 x x Santa Clarila-Facilities upgrades 13 x x Detention ("') N Van Nuys-Policies 14 x x Committee ~ Provide designted toiletfacilities 15.1 x x Los Angeles Update video monitor 15.2 x x Police 16.1 x x Department Provide gun locker.s Provide toilet facilities 16.2 x x Provide sally port 17 x x Alhambra *Alhambra Police Station Police Need secure booking station 18 x Department x Arcadia Police *Arcadia Police Station 19 x Department Partial wall construction x Bell Gardens *Bell Gardens Police Station Police No soft flooring sobering cells 20 Department x Los Angeles County 21 x x Probation Con1ractwith local medical hospital Social Committee ("') Social 1 x x I.() Committee Social Comrritile brmed ~ 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 183 3-255 CONTINUITY COMMITTEE 184 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-256 DETENTION ADULT FACILITIES Caroline Kelly-Co-Chair Richard Huber-Co-Chair James Bradford Jeffery Clements David Dahl Joseph Des Barres Charles Dolcey COMMITTEE MEMBERS Marie Louis Gutierrez Albert Handschmacher Kenneth Howard Carol Pentz Barry Rubens Thomas Scheerer Jerome Strofs Joan Turner Elena Velarde Franklin Wurtzel Ung Vol Yu Gilbert Zeal John Zehrung 3-257 15. DETENTION: ADULT FACILITIES INTRODUCTION The Los Angeles County Jail System houses over 19,000 inmates, making it the largest county jail complex in the country.1 In addition to the county system operated by the Los Angeles County Sheriffs Department, many cities throughout the county operate jails. This report discusses several issues affecting jail and detention facilities generally and the condition of individual adult detention facilities specifically. There are a total of 115 active adult jail and detention facilities in Los Angeles County. The 2012-2013 Los Angeles County Civil Grand Jury (Grand Jury) inspected 74. By definition, ajail is typicel;llY a local detention facility designed for either temporary housing of a detainee or for a misdemeanant sentenced for up to one year of confinement. A prison typically refers to confinement facilities operated by the state or federal government for felons sentenced to more than one year of confinement. The Grand Jury also visited all Juvenile Halls and Camps operated by the Los Angeles County Probation Department. A discussion of these visits and issues presented by these juvenile facilities is contained in a companion report. METHODOLOGY California Penal Code section 9 l 9(b) requires that the Grand Jury inspect and report on the condition of the jails. In accordance with this requirement, the Grand Jury formed a Detention Committee composed of substantially all of the members of the Grand Jury. The Grand Jury inspected facilities that were not inspected by the 2011-2012 Grand Jury, facilities that were noted in previous reports as unsatisfactory in some significant manner and those facilities found to be excellent. At least two Grand Jurors went on each inspection. After reviewing relevant sections of Title 15,2 an inspection report form was prepared for use during visits.3 The inspections focused on administrative processes and guidelines, emergency response procedures, conditions of the facility, and the quality of living conditions. The Grand Jury also spoke with detainees, law enforcement officers and custody assistants. BROADER ISSUES IMP ACTING THE ADULT DETENTION SYSTEM Discussed below are the specific jail and detention centers visited by the Grand Jury along with specific recommendations for improvement to those facilities. Initially however, some broader issues relevant to multiple facilities and the overall jail system in 1 Los Angeles County Sheriff's Department Correctional Services Division www.lasdhq.org/correctional/mj/ 2 California Administrative Code Title 15, Division 3, entitled Department of Corrections and Rehabilitation, provides all the rules and regulations of adult operations and programs. Everything from the number of hours of recreation to types of permissible meals to be served is addressed in these sections. Title 24 sets forth physical plant regulations. 3 See attached Detention Facilities Inspection Report Form. 2012-2013 Los Angeles County Civil Grand Jury Report 185 3-258 DETENTION: ADULT FACILITIES Los Angeles County should be addressed. While there are certainly many complexities concerning incarceration, the Grand Jury has elected to focus on the following: 1. Realignment resulting from the passage of Assembly Bills 109 and 1l7(AB 109/117); 2. Mental health issues affecting inmates; 3. Privatizing of jails; 4. The use of trustees; 5. Operations manuals; 6. Aging of facilities; and 7. Education-Based Incarceration 1. AB 109 Realignment In response to the crisis caused by overcrowding in state prisons, the California legislature passed AB 109/117 on October 1, 2011. Felony inmates convicted of"non- sexual, non-violent and non-serious" (NNN) crimes are now incarcerated in county detention facilities instead of state prisons. Upon release, these inmates are now the responsibility of local county probation departments and not the state parole system. This "realignment" has significantly altered the Los Angeles County detention system. Over 30% of the Los Angeles County jail population is now here as a result of AB 109 and in the case of some facilities such as the four at Pitchess Ranch, closer to 40%. 4 These inmates are housed for longer periods of time, in many cases, several years 5 and are often more dangerous. The jail system in Los Angeles County was built to accommodate misdemeanants sentenced to no more than one year. Facilities like Men's Central Jail lack outdoor access for recreation, among other features required for housing felons. The long term impact of realignment and the additional expense to the detention system should be vigilantly monitored by all affected county agencies. For example, county health officials state that 30% of AB 109 inmates often require costly mental health treatment and 60% face issues of addiction. 6 Further, alternatives to incarceration for local low level offenders should be identified, e.g., split sentencing, 7 in order to make available jail space for more serious offenders. 2. Inmates with Mental Health Issues The Sheriffs Department operates the largest de facto mental health facility in the country (see footnote 3 above). Every jail visited by the Grand Jury has to deal with mentally ill detainees or inmates and most Type I facilities, regardless of where located, send the most unstable detainees to either Twin Towers or Men's Central Jail. Training of Sheriffs Department personnel as well as other local law enforcement personnel in 4 All statistical data was provided by the management of the jail facilities during the inspection process. 5 Impact of Realignment as of October 12, 2012, provided by Supervisor Antonovich, reports that over 40 inmates have been sentenced to greater than 8 years and most are sentenced for over one year. 6 "State convicts arriving in L.A. County with costly mental illnesses," by Anna Gorman, Los Angeles Times, Jan 8, 2012. 7 Split-sentencing is a combined sentence of confinement and either community service or probation. A study by the Chief Probation Officers of California found that from October 2011 to June 2012, 23% of all local jail sentences were split. Los Angeles Times, December 28, 2012. 186 2012-2013 Los Angeles County Civil Grand Jury Report 3-259 DETENTION: ADULT FACILITIES issues of mental health is critical, and based on the Grand Jury's observations, insufficient. 8 These inmates require a much higher level of supervision and often need to be housed separately. Since 50% or more of prisoners require mental health and/or substance abuse health services, the increased load on the Department of Mental Health (and, upon release, the Probation Department) has also increased. Detainees and inmates with mental health issues also impact significantly facility costs. Budgetary issues are compounded by the loss of health care insurance for incarcerated prisoners and the cost of medications and increased psychiatric services. 3. The Privatizing of Jails Although all of the facilities overseen by the Sheriffs Department are managed by sworn officers and some Custody Assistants, several Type I facilities overseen by individual city pelice departments are now operated by private companies such as G4S Solutions and GE0.9 According to personnel interviewed by the Grand Jury, cost was the principal consideration motivating the decision to privatize these services. Typically, a contract between a private firm and a city would require the firm to manage all hiring, training and payroll (health, pension, salary, etc.) of staff needed to operate a jail facility. Usually, a sworn city police officer will oversee the private firm's performance. Private employees typically earn far less than a sworn officer or jailer and are not eligible for city pension or job security benefits.10 Private employees are required to complete state mandated training and the supervising officers interviewed by the Grand Jury commended the work of these employees. The Grand Jury is concerned, however, that a private employee may not have the skills of a sworn officer in dealing with a more dangerous detainee. 4. Trustees/Inmate Workers Almost every jail facility visited had some prisoners who were deemed low risk and who were given an opportunity to provide services to the jail in exchange for more freedom to move around the facility and other "perks." These trustees perform tasks ranging from cleaning cells and offices to preparing meals and washing patrol cars. They also receive greater visiting privileges and are allowed to eat foods other than what is provided by the jail. The use of trustees reduces or eliminates the cost associated with otherwise hiring employees to provide these services. Additionally, several Type I facilities housed trustees who were transferred from Men's Central Jail or other larger facilities and this helped ease overcrowding at the larger jails. Because Type I facilities were not designed to hold prisoners for more than 96 hours, and because many trustees are serving terms of 8 Please see the 2012-2013 Civil Grand Jury Report, Dual Track and Training, pp. 9-11 for a more detailed discussion of mental health issues in the jails. We reiterate those recommendations here and call for more training in mental health issues for all custody officers. 9 Both of these private companies are international security companies that offer security services in multiple settings. "" 10 The Grand Jury directly questioned G4S staff at several facilities. Comparisons were provided by the supervising sworn officers at the facility as to officer pay. Rates at different facilities ranged from $12 an hour to $16.25 for a G4S regular jailer and increased for lead jailers and superintendents. Sheriffs Deputies and Custody Assistants earn considerably more. 2012-2013 Los Angeles County Civil Grand Jury Report 187 3-260 DETENTION: ADULT FACILITIES many months, consideration must be given to trustee housing and segregation from detainees. For example, the Grand Jury was informed of a few incidents where cramped trustee housing led to fights and other issues. Related to the trustee issue is the "pay-to- stay" issue where some sentenced misdemeanants are permitted to serve their sentences at Type I facilities (typically on weekends) rather than at Twin Towers or Men's Central Jail. 5. Manuals Almost every Grand Jury jail inspection included a spot check of the facility's operations manual. All facilities visited had operations manuals, either in hard copy or on computer or both. Some of the jail personnel admitted that these manuals had not been carefully updated or revised to cover current conditions. It was implied in several instances that the manuals were not used for day-to-day operations and were only an administrative necessity rather than a management tool. It is strongly recommended that such manuals be carefully updated and/or revised to reflect any operational changes. Many local police departments rely on outside firms that provide templates filled with boilerplate language. Manuals need to be simplified and officers should be held accountable for knowing their contents. Many departments require officers to acknowledge in writing that they have read the manual and this should be standard procedure for all. The Grand Jury suggests that local police departments operating Type I jails explore forming a joint task force with the Sheriff's Department which is currently revising its manual to address use of force issues with the ultimate goal of improving operations manuals. 6. Aging of Facilities The aging of jail facilities is a major issue, in particular the aging of courthouse holding cells. In one courthouse holding facility visit, the Grand Jury observed conditions that were dirty, trash laden and unhealthy. Many cities and the county are struggling to meet the needs of a growing jail population while trying to properly maintain and modernize current facilities -many of which are more than fifty years old. Most of the jails visited by the Grand Jury were found to be in reasonably good condition, but some evidenced substantial deferred maintenance. Men's Central Jail is foremost in this latter category. Nearly every commission or other group that has inspected Men's Central Jail agrees that it should be demolished and replaced. (see e.g., Citizen's Commission on Jail Violence Report). Sheriff Baca has so stated in a March 2013 letter to the Board of Supervisors.11 The Grand Jury adds its voice to this chorus and urges the Board of Supervisors to promptly commit to replacing Men's Central Jail as soon as possible. Facility issues directly related to inmate health and safety should be given high priority whether legally required or not under newer building and safety codes.12 For example, sobering cells in older buildings do not require padding but all jails should have it. The Grand Jury acknowledges that this is potentially expensive, but the health and safety 11 http://www.nbclosangeles.com/news/local/Sheriff-Envisions-Replacing-Mens-Central-Jail-Cells-with-Classrooms- 199093541.html 12 Any facility that was built prior to the adoption of Title 24, Section 13-102b is exempt from having to install permanent padding on the floors and walls. 188 2012-2013 Los Angeles County Civil Grand Jury Report 3-261 DETENTION: ADULT FACILITIES benefits are obvious. Modem video surveillance systems also add to the safety of inmates and jail staff. Many older facilities lack cameras and this problem is compounded by the design of cell doors that do not allow a full view of all corners of a cell. The Grand Jury recommends that the county and local cities provide funding for these improvements. 7. Education-Based Incarceration Sheriff Baca has spearheaded an education program in the jails designed to increase the skills and abilities of prisoners so that they can more effectively and successfully transition out of confinement and reduce existing high levels ofrecidivism. Entitled "Education-Based Incarceration," the program uses a concept whereby like people are housed together (i.e., military veterans, substance abusers and domestic violence offenders) and offers labor market education and life and vocational skills that will produce improved outcomes for participants. The curriculum (see the Los Angeles County Sheriff's Department pamphlet entitled "EducationBasedincarceration") includes English as a Second Language, General Educational Development (GED) as an alternative to a high school diploma and individualized educational plans. Also included are behavior modification programs, life skills programs including domestic violence prevention, drug education, job readiness and parenting skills. Much of the teaching is done by deputies. While it is too early to cite recidivism rates, anecdotal evidence suggests that this program is already showing results in reducing unrest among inmates. Inmates who choose to participate are now engaged for up to several hours each day in learning and other activities geared toward helping them become more productive citizens upon release. Classroom space is being prepared at each of the larger jail facilities to increase the number of inmates who can participate and the Grand Jury looks forward to seeing data once this program has been in operation for a few years. The Sheriff is to be commended for instituting and implementing this program. TYPES OF JAILS Title 15 describes various types of jails and its provisions govern all aspects of the operations and requirements of jails in California.13 Type I: A local detention facility used for the detention of persons for not more than 96 hours, excluding holidays, after booking. Type I facilities may also detain persons on court order either for their own safekeeping or sentenced to a city jail as an inmate worker. Most facilities connected to police stations are considered Type I. Type II: A detention facility for the detention of persons pending arraignment, during trial, and upon a sentence of commitment. Type III: A detention facility for the detention of convicted and sentenced persons. 13 CA Code of Regulations, Title 15, Article 1, Section 1006 2012-2013 Los Angeles County Civil Grand Jury Report 189 3-262 DETENTION: ADULT FACILITIES Type IV: A detention facility for the housing of inmates eligible for work/education furlough and/or other programs involving inmate reintroduction into the community. Temporary Holding Facility (T): A detention facility used for confinement of persons for 24 hours or less pending release, transfer to another facility or appearance in: court. Court Holding Facility (C): A detention facility used for the confinement of persons solely for the purpose of a court appearance for a period of no more than 12 hours. INSPECTION OF INDIVIDUAL FACILITIES The Grand Jury is just one of many entities that inspect jails and detention facilities. 14 Incorporated in this report is a chart containing a description of all jail facilities inspected by the Grand Jury. COMMENDATIONS The vast majority of jails visited by the Grand Jury were clean and well maintained and the Grand Jury appreciated the openness, professionalism and courtesy of the custody personnel. Sheriff Baca is commended for implementation of the Education-Based Incarceration program and the Board of Supervisors is encouraged to fund expansion of this program. The Bell Gardens Police Chief is commended for bringing to the attention of the Grand Jury an erroneous report by the 2011-12 Grand Jury that the Bell Gardens sobering cell had n.o soft padding on the floor. The Grand Jury visited the facility and in fact found that the sobering cell floor was padded and had been so for some time. RECOMMENDATIONS Based on its findings, the Grand Jury makes the following general recommendations: 15.1. The Board of Supervisors and all affected county agencies should vigilantly monitor the additional cost to the detention system caused by AB 109 Realignment. 15.2. The Los Angeles County District Attorney should continue to identify and encourage alternatives to incarceration for low level offenders. 15.3. The Sherifrs Department should provide Sheriff's deputies with additional training for dealing with prisoners with mental health issues as detailed in this Grand Jury's Dual Track report. 14 City or county fire departments or marshals inspect for fire/life safety; local health agencies inspect for medical and mental health services, nutritional and environmental health standards; and the Board of State and Community Standards Corrections (BSCC, previously CSA) for compliance with Title 15 and Title 24 (California Building Standards Code). All Type I facilities operated by the Sheriffs Department are also inspected periodically by its Custody Support and Service (CSS) division for Title 15 compliance. In addition, outside private groups such as the ACLU or the Citizen's Commission on Jail Violence periodically inspect and report on the condition of jails. 190 2012-2013 Los Angeles County Civil Grand Jury Report 3-263 DETENTION: ADULT FACILITIES 15.4. The Board of Supervisors should promptly commit to replacing Men's Central Jail as soon as possible with a state of the art facility conforming to best practices in detention. 15.5. The Sherifrs Department should take steps to insure that Courthouse facilities' video surveillance systems and cell doors that impair sightlines and visibility are upgraded. The Grand Jury makes the following specific recommendations regarding certain detention facilities as follows: 15.6. 17th Street Division-LAPD (Al) Police officers should only use the Sally port for moving detainees to and from the facility. During the Grand Jury inspection, three arrestees in handcuffs were escorted thru the main lobby of the station in the presence of jurors and civilians. 15.7. East Los Angeles Station -(LASD) (A32) Padded flooring should be installed in the sobering cell and a separate telephone line should be installed for jailers. 15.8. Edelman Children's Dependency Court (LASD) (A33) This adult facility has outer doors leading to the cells that have been inoperative for the past five years. This endangers the deputies every time they remove prisoners. 15.9. ·El Monte (Rio Hondo) Courthouse (LASD) (A34) Cells should be painted with anti-vandalism paint, enhanced video surveillance equipment should be installed, and cell doors should be retrofitted to improve visibility. 15.10. Hollywood PD (LAPD) (A46) This facility should be cleaned on a regular basis; the flooring should be repaired; and a safe and secure juvenile holding area should be provided. 15 .11. Mental Health Courthouse (LASD) (A67) This facility was well maintained for an older facility. Although 100% of the prisoner population had mental health issues, only one deputy had received more formal specialized training in mental health. All custody deputies at this and other facilities that deal with mental health issues should have such training. 15.12. San Fernando Court (North Valley District) (LASD) (A98) The holding cells should be painted with anti-vandalism paint and improved ·surveillance equipment should be installed. 15.13. Santa Clarita Valley Station (LASD) (A102) 2012-2013 Los Angeles County Civil Grand Jury Report 191 3-264 DETENTION: ADULT FACILITIES Adequate surveillance equipment should be installed; the video equipment for detainee- visitor visits should be repaired; and the facility should be upgraded to meet current Title 24 standards. Required Responses Recommendation Responding Agencies: 15.1, 15.4 Los Angeles County Board of Supervisors 15.2 Los Angeles County District Attorney 15.3, 15.5, 15.7, 15.8, Los Angeles County Sheriff 15.9, 15.11, 15.12 and 15.13 15.6, and 15.10 Los Angeles Police Department Acronyms LAPD Los Angeles Police Department LASD Los Angeles County Sheriff Department PD Police Department (any city) 192 2012-2013 Los Angeles County Civil Grand Jury Report 3-265 ~ "O CJ ~ = ~ b1l ~ Q.. ~ Facility -~ = ~ ~ ~ ~ ~ ~ 77th Street Division Al I LAPD (Regional Hdq.) PD A2 c LASD Alhambra Courthouse A3 I PD Alhambra PD GE0 16 A4 --Altadena Station Antelope Valley A5 c LASD Court (North District) A6 I PD Arcadia PD G4S 17 15 Ratings: 1 = Good 2 = Acceptable 3 = Poor 16 GEO is a private security company 17 G4S is a private security company INDIVIDUAL ADULT FACILITIES Address Telephone 7600 South Broadway Los Angeles, CA 90003 (213) 473-4851 150 W. Commonwealth (626) 308-5311 Ave. Alhambra, CA 91801 211 South 1st St. Alhambra, (626) 570-5151 CA 91801 780 E. Altadena Dr. (626) 798-1131 Altadena, CA 91001 42011 4th St. West (661) 974-7200 Lancaster, CA 91731 250 W. Huntington Dr. (626) 574-5150 Arcadia, CA 91723 2012-2013 Los Angeles County Civil Grand Jury Report DETENTION: ADULT FACILITIES l(l ..... ~ = Comments .... -~ ~ Clean facility. Women's area being l painted. See Recommendations Graffiti a problem in 4th floor holding 1 area. Courtroom "T" has a prisoner handling problem, due to non-secure access for inmates. 1 Well organized, clean facility. -No Jail Not Visited - Previous site flaw (half wall in 1 sobering cell) was corrected. Well maintained newer facility. G4S recently hired to operate facility. 193 3-266 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES cu "O lll ~ cu ...... = cu ~ ~ cu =.. ~ Facility Address Telephone = Comments ;.. ~ = ... ~ ... ~ ~ cu ~ IZ IZ A7 I LASD A val on Station 215 Sumner Ave. Avalon, (310) 510-0174 Not Visited CA 90704 - 725 N. Alameda Ave. (626) 812-3200 -Not Visited A8 I PD Azusa PD Azusa, CA 91702 A9 I PD Baldwin Park PD 14403 E. Pacific Ave. ( 626) 960-4011 Not Visited Baldwin Park, CA 91706 - Clean, older, well organized facility. 7100 Garfield Ave. Bell Bell Gardens PD has taken over from AIO I PD Bell Gardens PD Gardens, CA 90201 (562) 806-7600 1 GEO in Jan. 2012 in operating of facility. See Commendations 6326 Pine Ave. Bell, CA Older facility, built in 1927. No All I PD Bell PD 90201 (323) 585-1245 1 sobering cell, only one video camera. Budget constraints keep from updating. Bellflower 10025 Flower St. Clean, no graffiti noticed. Training up- Al2 c LASD Courthouse Bellflower, CA 90706 (562) 804-8053 1 to-date. Personnel well versed in policies and procedures. PD 464 N. Rexford Dr. Beverly Well organized, older facility. Using Al3 I Beverly Hills PD (310) 550-4951 1 New World System in addition to Life G4S Hills, CA 90210 Scan for bookinj:?; seems redundant. 194 2012-2013 Los Angeles County Civil Grand Jury Report 3-267 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "'O CJ = ~ ~ "' OJ) ..... ~ s::l.. ~ OJ) ""' ~ = Facility Address Telephone = ~ .... Comments ~ -~ ~ ~ ~ ~ Beverly Hills 9355 Burton Way Beverly Well organized, but older facility. No A14 c LASD Courthouse (subject (310) 288-1310 2 cameras or direct sight into holding to closure by 2014) Hills, CA 90210 cells. Handcuff ports retrofitted to cell doors. A15 I PD Burbank PD 200 N. Third St. Burbank, Remodeled in 2011, well maintained. CA 91502 (818) 238-3217 1 Experienced and well trained personnel. A16 c LASD Burbank Courthouse 300 Olive Ave. Burbank, (N. Central District) CA 91502 (818) 577-3482 Not Visited 21356 S. Avalon Blvd. Clean well maintained facility. A17 I LASD Carson Station Carson, (310) 830-1123 1 Trustees do general maintenance. CA 90745 Operational manual did not appear to be uodated. A18 T LAPD Central Area PD 251 E. 6th St. Los Angeles, (213) 485-6588 2 Meets minimum standards. Training CA 90014 up-to-date. A19 c LASD Central Arraignment 429 Bauchet St. Los (213) 261-0711 Courthouse Angeles, 90012 Not Visited This is a women's facility. This older Century Regional 11705 S. Alameda St. facility is overcrowded. Many inmates A20 II LASD Detention Facility (323) 568-4800 (CRDF) Lynwood, CA 90262 have children. More parenting and family planning education is recommended. 2012-2013 Los Angeles County Civil Grand Jury Report 195 3-268 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "C on CJ ~ ..... = ~ bJ) bJ) ~ c. ~ Facility Address Telephone = Comments -~ = ... ~ -~ ~ ~ ~ ~ ~ 18135 Bloomfield Ave. Operates Monday -Thursday from 2 A21 T LASD Cerritos Station Cerritos, CA 90703 (562) 860-0044 1 PM to Midnight. One Jailer and when jailer is off facility is closed. A22 I PD Claremont PD 570 W. Bonita Ave. (909) 399-5411 Not Visited Claremont, CA 91711 Compton Courthouse 200 W. Compton Blvd. Extremely busy, averaging 150 -180 A23 c LASD (South Central Compton, CA 90220 (310) 762-9100 1 detainees per day. Exceptional video District) surveillance. A24 I PD Covina PD 444 N. Citrus Ave. Covina, (626) 858-4413 Not Visited CA 91723 A25 I LASD Crescenta Valley 4554 N. Briggs Ave. La (818) 248-3464 Not Visited Station Crescenta, CA 91214 This facility has a constant flow of Criminal Courts inmates, generating a high level of A26 c LASD (Clara Shortridge 210 W. Temple St. Los (213) 974-6581 trash in the holding cells. The Angeles, CA 90012 challenge is to maintain both the Foltz) number and classifications of prisoners. A27 I PD Culver City PD 4040 Duquesne Ave. Culver (310) 837-1221 1 Older, clean and well organized City, CA 90232 facility. A28 Devonshire PD 10250 Etiwanda Ave. (818) 832-0633 Closed Northridge, CA 91325 196 2012-2013 Los Angeles County Civil Grand Jury Report 3-269 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES Cl.I "O lfl c.J Cl.I .... = Cl.I 01) 01) Cl.I c.. ~ Facility Address Telephone = Comments i.. ~ = ... c!l -~ ~ Cl.I ~ ~ ~ 7500 Imperial Hwy. Early Disposition Program (EDP) for A29 c LASD Downey Courthouse Downey, CA 90242 (562) 803-7044 1 felony charges. Cells steam cleaned bi- monthly. PD 10911 Brookshire Ave. 250-300 arrests per month. Well A30 T GEO Downey PD Downey, CA 91502 (562) 861-0771 1 maintained. Documentation is up-to- date. A31 c LASD East Los Angeles 4848 E. Civic Center Way (323) 780-2017 Not Visited Courthouse East Los Angeles, CA 90022 A32 I LASD East Los Angeles 5019 E. Third St. East Los (323) 264-4151 1 Older facility, needs upgrading in Station Angeles, CA 90022 various areas. See Recommendations Adult court holding facility for inmates facing child custody issues. The outer Edelman Children's 201 Centre Plaza Dr. doors leading to the cells have been A33 c LASD Dependency Court Monterey Park, CA 91754 (323) 526-6657 1 inoperative for the past 5 years. This endangers the deputies every time they remove inmates. See Recommendations Graffiti in cells, no security cameras in A34 c LASD El Monte (Rio 11234 E. Valley Blvd. El (626) 575-4116 2 cells. A request has been made for Hondo) Courthouse Monte, CA 91731 cameras. Difficult to look into cells. See Recommendations 2012-2013 Los Angeles County Civil Grand Jury Report 197 3-270 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "C "' ~ ~ ..... = ~ eJl eJl ~ Q. ~ Facility Address Telephone = Comments -t: = .... ~ .... ~ ~ ~ ~ ~ ~ Well organized facility. Officers A35 I PD El Monte PD 11333 Valley Blvd. El (626) 580-2110 1 receiving Parolee Contact Course (Ken Monte, CA 91731 Whitman). Looking to acquire uniforms that are fire retardant. A36 I PD El Segundo PD 348 Main St. El Segundo, (310) 524-2760 1 Clean, well run facility. Procedure CA 90245 manual is out of date Foothill (Pacoima) 12760 Osborn St. Pacoima, Clean, well organized facility. A37 I LAPD (818) 756-8865 1 Females, juveniles and medical PD CA 91331 detainees are sent to Van Nuys. A38 I PD Gardena PD 1718 162nd St. Gardena, CA (310) 217-9632 Not Visited 90247 A39 c LASD Glendale Courthouse 600 E. Broadway Ave. (818) 500-3551 Not Visited Glendale, CA 91206 Partial Grand Jury Tour. This facility A40 I PD Glendale PD 131 N. Isabel St. Glendale, (818) 548-4840 was state-of-art and well organized. CA 91206 They are advocates of video arraignment. A41 I PD Glendora PD 150 S. Glendora Ave. (626) 914-8250 Not Visited Glendora, CA 91741 A42 Harbor Area PD 221 Bayview Ave. (310) 522-2042 Closed Wilmington, CA 90744 198 2012-2013 Los Angeles County Civil Grand Jury Report 3-271 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "O Ill CJ ~ .... = ~ ~ ~ ~ Q. ~ Facility Address Telephone = Comments -p = ... ~ .. ~ ~ ~ ~ ~ ~ 12501 Hawthorne Blvd. Newer, state of the art facility. A43 I PD Hawthorne PD Hawthorne, CA 90250 (310) 675-4443 1 Excellent segregation policy for minors. 540 Pier Ave. Hermosa No padding in sobering cell. Built in A44 I PD Hermosa Beach PD Beach, CA 90254 (310) 318-0300 1 the 1950's. Pay-to-stay available. Clean and well maintained. A45 T LAPD Hollenbeck PD 1936 E. 1st St. Los Angeles, (323) 266-5964 Not Visited CA 90033 Facility needs paint and better A46 I LAPD Hollywood PD 1358 Wilcox Ave. Los (213) 485-2510 1 cleaning. Smell of urine in one cell was Angeles, CA 90028 noted. No designated juvenile area. See Recommendations 6542 Miles Ave. Huntington Built in 1906. Clean well maintained. A47 I PD Huntington Park PD (323) 584-6254 1 Upgraded with video and phone in Park, CA 90255 cells. No padding in sobering cell. A48 I LASD Industry Station 150 N. Hudson Ave. City of (626) 330-3322 1 Clean, well organized, older facility. Industry, CA 91744 Excellent management of trustees. A49 c LASD Inglewood One Regent St. Inglewood, (310) 419-5132 Older, cramped facility, lacking video. Courthouse CA. 90301 2 Needs maintenance. A50 Inglewood PD 1 Manchester Blvd. (310) 412-5200 Closed Inglewood, CA 90301 A51 T PD Irwindale PD 5050 N. Irwindale Ave. (626) 430-2244 Not Visited Irwindale, CA 91706 2012-2013 Los Angeles County Civil Grand Jury Report 199 3-272 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES Q,j "O "' ~ Q,j .... = Q,j =n t)f) Q,j Q,, ~ Facility Address Telephone = Comments i... ~ = ..... ~ ...... ~ ~ Q,j ~ ~ ~ Small 9 bed facility. Well maintained. A52 I PD La Verne PD 2061 Third St. La Verne, (909) 596-1913 1 Training and manuals up-to-date. CA 91750 Inmate workers and pay-to-stay available. Newer medical facility for 1200 N. State St. Los (323) 409-4563 detainees/inmates. Provides inpatient, A53 II LASD LAC+USC Jail Ward Angeles, CA 90033 (323) 409-2800 1 outpatient and emergency care. . Outpatient services quadrupled since AB109. Lakewood Sherriff 5130 N. Clark Ave. Repainted within the last year. No A54 I LASD Station Lakewood, CA 90712 (562) 623-3500 1 padded sobering cell. No Sally port. Trustees do general maintenance. A55 I LASD Lancaster Station 501 W. Lancaster Blvd. ( 661) 948-8466 Not Visited Lancaster, CA 93534 A56 Lennox Station 4331 Lennox Blvd. (310) 671-7531 Closed Inglewood, CA 90304 A57 I LASD Lomita Station 26123 Narbonne Ave. (310) 539-1661 Not Visited Lomita, CA 90717 A58 c LASD Long Beach 415 W. Ocean Blvd. Long (562) 590-3622 2 Knowledgeable staff. New facility Courthouse Beach, CA 90802 being opened in November, 2013. 400 W. Broadway Long Knowledgeable staff. Men and women A59 I PD Long Beach PD Beach, CA 90802 (562) 570-7260 1 are segregated by floors. Adequate video surveillance system. 200 2012-2013 Los Angeles County Civil Grand Jury Report 3-273 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "O "' "' ~ ..... = ~ bJ) 01! ~ c. ~ Facility Address Telephone = Comments '"' ~ = ... ~ ...... ~ ~ ~ ~ ~ ~ A60 I LASD Lost Hills (Malibu) 27050 Agoura Rd. Agoura, (818) 878-1808 Not Visited Station CA 91301 A61 c LASD LAX Courthouse 11701 S. La Cienega Blvd. (310) 727-6020 Not Visited Los Angeles, CA 90045 Malibu Courthouse 23525 W. Civic Center Way A62 c LASD (subject to closure by (310) 317-1331 Not Visited 2014) Malibu, CA 90265 A63 I PD Manhattan Beach PD 420 15th St. Manhattan (310) 802-5140 Newer, clean, well organized facility, Beach, CA 90266 with state of the art features. A64 I LASD Marina Del Rey 13 851 Fiji Way Marina Del (310) 482-6000 1 Older, clean and well run facility. Station Rey, CA 90292 Houses trustees/inmate workers. A65 I PD Maywood PD 4319 E. Slauson Ave. (323) 562-5005 Not Visited Maywood, CA 90270 Older Facility, poor lighting and 441 Bauchet St. Los architecture creates a hazardous A66 II LASD Men's Central Jail Angeles, CA 90012 (213) 974-0103 environment. Structure not meant to accommodate current population or types. See Recommendations Leadership modeled appropriate Mental Health 1150 N. San Fernando Rd. protocols for handling this special A67 c LASD Courthouse Los Angeles, CA 90065 (323) 226-2944 1 population. More formal specialized mental health training needed. See Recommendations 2012-2013 Los Angeles County Civil Grand Jury Report 201 3-274 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ 't:S Ill ~ ~ ,.... = ~ OJ) OJ) ~ c. ed Facility Address Telephone = Comments ""' ...... = . ... ~ -Em; ~ ~ ~ ~ ~ ~ A68 c LASD Metropolitan Traffic 1945 S. Hill St. Los (213) 744-4101 1 Procedures manual(s) need updating. Courthouse Angeles, CA 90007 11121 North Sepulveda Opened in 2005. Temporary holding. A69 T LAPD Mission Hills PD Blvd. Mission Hills, CA (818) 838-9800 1 (under 24 hours). Clean, well 91345 maintained. Mira Loma Detention 45100 N. 60th St. west Temporarily closed due to budget cuts. A70 III LASD (Fed) Lancaster, CA 93536 (661) 524-2799 Sherriff deputies and inmates sent to Pitchess. A71 I PD Monrovia PD 140 E. Lime Ave. Monrovia, (626) 256-8000 Not Visited CA 91016 A72 I PD Montebello PD 1600 Beverly Blvd. (323) 887-1313 Not Visited Montebello, CA 90640 A73 I PD Monterey Park PD 320 W. Newmark Ave. (626) 307-1266 Not Visited Monterey Park, CA 91754 A74 T LAPD Newton Area PD 3400 S. Central Ave. Los (323) 846-6547 Not Visited Angeles, CA 90011 A75 T LAPD North Hollywood PD 11640 Burbank Blvd. North (818) 756-8822 Not Visited Hollywood, CA 91601 Northeast (LA/Eagle 3353 San Fernando Rd. Los Holding facility, no booking. Arrestees A76 T LAPD Rock) PD Angeles, CA 90065 (213) 485-2566 1 sent to Metropolitan Detention Center. Facility to be rebuilt in 2013. 202 2012-2013 Los Angeles County Civil Grand Jury Report 3-275 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "'O on CJ ~ .. = ~ 1:)1) 1:)1) ~ Q.. ~ Facility Address Telephone = Comments -~ = ... ~ -~ ~ ~ ~ .~ ~ Many high profile cases, serving c LASD Norwalk Courthouse 12720 Norwalk Blvd. (562) 807-7285 1 several cities. Cells need repainting, A77 Norwalk, CA 90650 but process requires a week of non-use to complete. Norwalk Sheriff 12335 Civic Center Dr. 1 Built in 1964, yet clean and well A78 I LASD Station Norwalk, CA 90650 (562) 863-8711 organized. Inmate workers. Sobering cell not padded. Olympic PD (Korea 1130 S. Vermont Ave. Los Overall, clean and efficient facility. No A79 I LAPD (213) 382-9102 1 Sally port, but detainees well-guarded Town) Angeles, CA 90006 and video monitored. A80 Pacific Area PD 12312 Culver Blvd. Los (310) 482-6334 Closed Angeles, CA 90066 A81 I LASD Palmdale Station 750 E. Avenue Q Palmdale, (661) 272-2400 Not Visited CA 93550 A82 I PD Palos Verdes Estates 340 Palos Verde Dr. Palos (310) 378-4211 Not Visited Verdes Estates, CA 90274 A83 Parker Center PD 150 N. Los Angeles St. Los (213) 485-2510 Closed Angeles, CA 90012 A84 c LASD Pasadena Courthouse 300 E. Walnut St. Pasadena, (626) 356-5689 1 Clean, well organized facility. CA 91101 2012-2013 Los Angeles County Civil Grand Jury Report 203 3-276 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "'O "' CJ ~ ...... = ~ ell ell ~ Q. eo: Facility Address Telephone = Comments -~ = .... .:= ...... eo: eo: ~ ~ ~ ~ Clean, larger facility (120 capacity). Pay-to-stay program. This facility A85 I PD Pasadena PD 207 N. Garfield Ave. (626) 744-4545 1 provides service to Immigration and Pasadena, CA 91101 Customs Enforcement (ICE) 18 • A86 I LASD Pico Rivera Station 6631 Passons Blvd. Pico (562) 949-2421 Not Visited Rivera, 90660 A87 III LASD Pitchess Detention 29310 The Old Road (661) 295-8812 Divided into 4 separate facilities. Total Center-East Facility Castaic, CA 913 84 occupancy is 10,000. South has A88 III LASD Pitchess Detention 29320 The Old Road (661) 295-8092 vocational and trades. North just Center-North Facility Castaic, CA 913 84 opened, staff transferred from Mira A89 III LASD Pitchess Detention 29330 The Old Road (661) 295-8822 Lorna. North makes uniforms, has print Center-South Castaic, CA 91384 and welding shop. Has fire camp and will start an agriculture area. Vocational training available, but Pitchess North-29340 The Old Road difficult with higher level of inmates. A90 III LASD County Correctional Castaic, CA 91384 (661) 295-7969 Drug and gang (Mexican Mafia) influence is a challenge. Full body scanner would help contraband problems. 18 Immigration and Customs Enforcement 204 2012-2013 Los Angeles County Civil Grand Jury Report 3-277 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "C lfl ~ ~ ... = ~ bJ:I bJ:I ~ Q.. ~ Facility Address Telephone = Comments .. ~ = . ... ~ ..... ~ ~ ~ ~ ~ ~ Pomona North Older, fairly clean. Court handles A91 c LASD Courthouse (subject ' (909) 802-9944 1 primarily Misdemeanor cases. No Sally to closure by 2014) port; has a tunnel connecting with PD. A92 c LASD Pomona South 400 W. Mission Blvd. (909) 802-9944 1 Newer, fairly clean. Court handles Courthouse Pomona, CA 91766 primarily Felony cases. Well maintained. Updated surveillance. A93 I PD Pomona PD 490 W. Mission Blvd. (909) 622-1241 1 Manuals up-to-date. Knowledgeable Pomona, CA 91766 staff. New Juvenile area being built; also site for 911 services A94 I LAPD Rampart Division PD 1401 W. 6m St. Los Angeles, (213) 484-3400 Not Visited CA 90017 401 Diamond St. Redondo Old facility, currently being A95 I PD Redondo Beach PD Beach, CA 90277 (310) 379-2477 1 remodeled. Pay-to-stay program. Excellent and informative web site. A96 I LASD San Dimas Station 270 S. Walnut Ave. San (909) 450-2700 Not Visited Dimas, CA 91773 A97 I PD San Fernando PD 910 First St. San Fernando, (818) 898-1267 Clean, well-organized facility. Pay-to- CA 91340 1 Stay San Fernando Court 900 Third St. San Fernando, Needs video surveillance. Needs A98 c LASD (North Valley (818) 898-2403 painting with special anti-graffiti paint. District) CA 91340 2 See Recommendations A99 T PD San Gabriel PD 625 Del Mar Ave. San (626) 308-2828 Not Visited Gabriel, CA 91776 2012-2013 Los Angeles County Civil Grand Jury Report 205 3-278 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "C Ill ~ ~ ..... = ~ bl) bl) ~ Q. ell Facility Address Telephone = Comments i. p = .... ~ ...... ell ell ~ ~ ~ ~ AlOO PD San Marino PD 2200 Huntington Dr. San (626) 300-0720 Closed Marino, CA 91105 AlOl c LASD Santa Clarita 23747 W. Valencia Blvd. (661) 253-7334 1 Small facility - 2 jails. Handles Courthouse Valencia, CA 91355 misdemeanors and traffic. Older (1972) facility. No padding on Al02 I LASD Santa Clarita Valley 23740 W. Magic Mountain (661) 255-1121 2 sobering cell floor. Needs a major Station Pkwy. Valencia, CA 91355 renovation, paint, etc. Poor layout. No Sally port. See Recommendations Five year old facility with thoughtful Al03 I PD Santa Monica PD 1685 Main St. Santa (310) 458-8491 1 design for separate juvenile access. Monica, CA 90401 Knowledeable, professional and courteous staff. Al04 T PD Sierra Madre PD 242 Sierra Madre Blvd. (626) 355-1414 Not Visited Sierra Madre, CA 91024 Al05 I PD Signal Hill PD 1800 E. Hill St. Signal Hill, (562) 989-7200 Not Visited CA 90806 Built in 1949, yet adequate. No padded Al06 I PD South Gate PD 8620 California Ave. South (323) 563-5436 floor in sobering cell. Could use Gate, CA 90280 2 painting. Training needs to be updated, like CPR Al07 T PD South Pasadena PD 1422 Mission St. South (626) 403-7270 Not Visited Pasadena, CA 91030 206 2012-2013 Los Angeles County Civil Grand Jury Report 3-279 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "O Ill c:J ~ ..... = ~ bj) bj) ~ c.. ~ Facility Address Telephone = Comments ;.. p = .... ~ -~ ~ ~ ~ i:i:: ~ Al08 c LAPD Southeast Area 145 W. 108th St. Los (213) 972-7828 Not Visited (108th St) PD Angeles, CA 90061 Southwest Area 1546 W. Martin Luther King Al09 (MLK Blvd) PD Blvd. Los Angeles, CA (213) 485-2615 Closed 90062 South Los Angeles New, 2 years old state of the art in AHO I LASD 1310 W. Imperial Hwy. (323) 820-6700 1 surveillance and lay-out. Sheriff Station Knowledgeable personnel. Alll I LASD Temple City Station 8838 Las Tunas Dr. Temple (626) 285-7171 Not Visited Citv, CA 91780 Al12 I LAPD TopangaPD 12501 Schoenborn St. (818) 778-4800 Not Visited Canoga Park, CA 91304 5019 3300 Civic Center Dr. Manuals and surveillance being All3 I PD Torrance PD Torrance, CA 90503 (310) 328-3456 1 updated. New inmate phone system being planned. Pay-to-stay. 825 Maple Ave. Torrance, Extremely busy. Two big holding cells Al14 c LASD Torrance Courthouse CA 90503 (310) 222-1785 1 and several smaller. Surveillance cameras as of 10/2012 World's largest jail. Houses the Twin Towers 450 Bauchet St. Los maximum security inmates as well as Al15 III LASD Correctional Facility Angeles, CA 90012 (213) 893-5050 majority of inmates with mental health (TTCF) issues. Newer design allows for better sight lines. 2012-2013 Los Angeles County Civil Grand Jury Report 207 3-280 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "C CJ = ~ ~ "' ~ Q. bJ) ..... '"' ~ Facility bJ) ~ ~ = Address Telephone = Comments ~ .... ~ ..... ~ ~ ~ ~ Van Nuys (West) 14400 Erwin Street Mall Fairly clean facility, well maintained. All6 c LASD Court (Northwest (818) 374-2511 District) Van Nuys, CA 91401 1 Personnel knowledgeable and training up-to-date. All? I LAPD Van Nuys Division 6240 Sylmar Ave. Van Nuys Has 24 hour medical service -serves PD CA 91401 (818) 374-9502 1 the San Fernando Valley for detainee medical treatment. Built as a type I facility, now a 4305 S. Santa Fe Ave. All8 T PD Vernon PD (323) 587-5171 temporary facility. Managed by a Vernon, CA 90058 1 Custody officer. Sworn officers trained in STC for iail dutv as needed. Walnut/Diamond Bar All9 I LASD 21695 E. Valley Blvd. Station Walnut, CA 91790 (909) 595-2264 Not Visited Al20 c LASD West Covina 1427 West Covina Pkwy. Clean, well maintained facility. Courthouse West Covina, CA 91790 (626) 813-3242 1 Knowledgeable staff. Note: crime lab as part of Sheriff station. Al21 I PD West Covina PD 1440 W. Garvey Ave. West (626) 939-8500 Clean, well maintained facility. Covina, CA 91790 1 Knowledgeable staff. Al22 I LASD West Hollywood 780 N. San Vicente Blvd. (310) 85 5-8850 Older facility, good condition, incident Station West Hollywood, CA 90069 1 report is computerized. Training and manuals up-to-date. Trustees. Al23 West LA PD 16603 Butler Ave. Los (310) 442-0702 Angeles, CA 90025 No Jail Cells 208 2012-2013 Los Angeles County Civil Grand Jury Report 3-281 DETENTION: ADULT FACILITIES INDIVIDUAL ADULT FACILITIES ~ "O "' CJ ~ ..... = ~ Oji eJl ~ ~ c: Facility Address Telephone = Comments '"' t: = .... ~ ~ c: c: ~ ~ ~ ~ Al24 I LAPD West Valley 19020 Vanowen St. Reseda, (818) 374-7611 Not Visited (Reseda) PD CA 91335 Whittier Courthouse 7339 S. Painter Ave. Al25 c LASD (subject to closure by Whittier, CA 90602 (562) 907-3127 Not Visited 2014) 13200 Penn St. Whittier, CA Clean, well maintained facility. Al26 I PD Whittier PD 90602 (562) 567-9200 Knowledgeable and courteous staff. Excellent segregated area for juveniles. Al27 Wilshire Area PD 4861 W. Venice Blvd. Los (213) 473-0746 Closed Angeles, CA 90019 2012-2013 Los Angeles County Civil Grand Jury Report 209 3-282 DETENTION: ADULT FACILITIES Detention Facilities Inspection Report Los Angeles County Civil Grand Jury 2012-2013 Date: _____ _ Visit Time: ----------------------~ Facility Name: ---------------------- Address/Phone: ---------------------- Tour Guide: ----------------------~ Type of Facility: __ Capacity: ___ Current Population: __ _ Managed/Operated by: ------------ Inspected by: Ratinqs: 1 = G ood 2 = Acceptable 3 =Poor Categories Rating Comments Previous Reports/Inspections Personnel/Training Policies/Procedures Facilities Segregation/Safety Physical Health Communicable Diseases Mental Health/Suicide Prevention Other Overall Comments/Recommendations: _________________ _ 210 2012-2013 Los Angeles County Civil Grand Jury Report 3-283 DETENTION: ADULT FACILITIES 2012-2013 CIVIL GRAND JURY JAIL INSPECTIONS-ADULT Facilities TOPIC Issues/Questions Comments TITLE15 Previous Civil Grand Jury When Inspected? Report Issued? Findings? Reports/ BSCC Inspections Fire Marshall All Medical/Mental Health Other Personnel STC/POST trained? Training Training-freq. and process 1020-1025 Backgrounds: experience, turnover, seniority? All Bi-lingual? Other specialized training: CPR, gangs, mental illness, technology Privately hired? Who? How trained? Oversight? Policies I Jail Manual updated? (2yrs.) Procedure Incident Reports-how filed and processed? 1029 All Booking process (DNA, evidence) 1044 All Inmate Grievance Process (logs?) 10501,Il,III, 1073 Il,III,IV I w/ inmate workers Facilities Cleanliness-frequency and protocol 1280 All Graffiti, paint, working plumbing, adequate 1055-56 furniture, bedding, food All Spaces for exercise, food, visitation 1208 All Safety cells (12 hrs.), sobering cell (6 hrs. tops) Isolation spaces? Emergency Equipment? (extinguishers, first aid, breathing apps, etc.) Surveillance-cameras 2012-2013 Los Angeles County Civil Grand Jury Report 211 3-284 Segregation Safety 1102 All 1101 Al 1050 l,11,III 1081 All 1027 All 1082 All Physical Health 1207 All 1208 All 1209 All Communi- cable Diseases 1206.5 All Mental Health Suicide Prevention 1207 All 1219 All Trustees DETENTION: ADULT FACILITIES Minors? Ifno, where sent? If yes-restrictions and facilities? Females-how searched, housed? Segregation protocol? Who does it-training? When showering, eating, exercising? Discipline? Fights? Monitoring? Restraints? Incidents in last 3 yrs.? How assessed? Who does it? Training? Specialized certification? Medication policy? Involuntary administration of meds? Re Staff-vaccinations and safety precautions How identified? Treated? Segregation? Staff protection? · Hazardous waste handling? Identification? Who does it? Training? Segregation? Treatment Housed at facility? How many? Duties and responsibilities? Pay-to-stay? Access to exercise? (3 hrs. in course of a week?) Abbreviations: BSCC -Board of State and Community Corrections STC -Standards and Training for Corrections POST -Police Officer Standard Training AFTER VISIT: FILE REPORT AND SEND THANK YOU. 212 2012-2013 Los Angeles County Civil Grand Jury Report 3-285 DETENTION JUVENILE FACILITIES COMMITTEE MEMBERS Caroline Kelly-Co-Chair Richard Huber-Co-Chair David Dahl Joseph Des Barres Charles Dolcey Carol Pentz Barry Rubens Joan Turner Elena L. Velarde Franklin Wurtzel 3-286 16. DETENTION: JUVENILE FACILITIES INTRODUCTION Each year, the Los Angeles County Civil Grand Jury (Grand Jury) is charged with the task of inspecting Los Angeles County juvenile probation halls (Halls) and juvenile probation camps (Camps), all of which are operated by the County Probation Department (Probation).1 Few County departments have faced the same level of scrutiny or the re-organization that Probation has within the past few years. The Grand Jury learned of changes in overall department leader- ship, Camp supervisory personnel, therapeutic approaches, youth-staff interactions, educational programs and training of personnel. On a fundamental level, there has been a shift in attitude for many in the Department. Probation has had to question the role of incarceration as it applies to juveniles. As a result, many juveniles are now being diverted from Camps and treated instead within communities, as evidenced by the significant population drop in both Camps and Halls. Overall, the Grand Jury was witness to a shift from a focus on punishment to rehabilitation. This report outlines some of the broader issues observed as well as its findings of conditions at indvidual Halls and Camps. METHODOLOGY The Grand Jury visited all four Halls and all sixteen Camps. Prior to the visits, the Grand Jury did a review of California Code of Regulations, Title 15, which governs the operations of the Camps and Halls and prepared an extensive inspection checklist.2 Inspections consisted of interviews with management and many of the heads of each camp department (eg., medical, psychological services, nutrition, head of school, recreation) as well as the staff throughout the facility. The Grand Jury also did a physical inspection of the Camps and viewed everything from the sleeping and bathing areas to the walk-in refrigeration units in the kitchens. A highlight of every visit was the classroom observations and the opportunity to speak to the juveniles. Visits were supplemented by reviews ofrelevant settlement agreements (discussed below), reports produced by outside entities and interviews with Probation leadership. 1 Penal Code Section 919(b). 2 See attached checklists and documents. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 213 3-287 DETENTION: JUVENILE FACILITIES BROADER ISSUES IMP ACTING THE JUVENILE DETENTION SYSTEM During the Grand Jury's inspections of the individual facilities, certain issues came up repeatedly and were relevant to the system as a whole. They are as follows: 1. The Department of Justice and Casey A. settlement agreements 2. Overall population and assignment to Camps 3. The increase of therapeutic models in the Camps 4. Educational enhancements and vocational education 5. Staffing challenges: long term disability 1. The Department of Justice and Casey A. Settlement Agreements In October 2008, Probation accepted federal monitoring after being threatened with a takeover by the Department of Justice (DOJ) unless it did more to prevent youth suicides, stop employees from harming juveniles in custody and improve rehabilitative services. The Probation Department was required to fulfill 41 reforms in its juvenile justice system, including improving staffing levels, decreasing violence and reducing the number of use-of-force incidents. As of October 2012, all but four provisions had been met (either partially or fully) and the parties agreed to extend the settlement agreement and its monitoring until December 2013. Probation continues to make progress and is now in substantial or full compliance on a majority of the provisions. The Grand Jury found that staff at the facilities was well versed in the requirements of the DOJ Agreement and many upper level personnel told members of the Grand Jury that they welcomed the Department of Justice intervention and felt it had prodded them to move in the right direction. Probation has also made strides with other settlement agreements concerning education. The Casey A. Settlement Agreement was intended to improve the educational services provided to youth. While it was filed on behalf of the students at the Challenger Camps, the overall education at all of the Camps has improved (see discussion under heading four, below.) The Los Angeles County Office of Education (LACOE) has worked with the Probation Department and the ACLU continues to monitor the situation. 2. Overall Population and Assignment to Camps a. Population Overall, the population across the system has decreased. Fewer juveniles are being sent to the Halls and instead are remaining in the community and are being dealt with in other ways. According to the Probation Department, the overall population has dropped from approximately 1,800 three years ago to just over 900 juveniles today.3 The Grand Jury heard many reasons for this shift including: law enforcement is making fewer arrests and is more likely to release offenders to the custody of parents; Probation screens more carefully and looks at factors such as school performance and the ability of the family to manage the child; and judges are more likely 3 Statistical information throughout this report was acquired through interviews with Probation supervisors at the facilities. 214 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-288 DETENTION: JUVENILE FACILITIES to look at home monitoring and other alternatives to incarceration. The lower numbers allow for closer supervision, fewer issues of overcrowding and reduced staff/youth incidents. While this is a positive trend, it has resulted in producing a population at the Camps that is more "dangerous." Juveniles sent to camp are adjudicated for more serious offenses and for longer terms. This is combined with the changes to the California Division of Juvenile Justice (DJJ)4 which now only takes minors who have committed the most serious of offenses.5 This means that a minor who might have been sent to the DJJ a few years ago is now being housed at the Camps. Gang affiliation runs very high in the Camps and with that comes the potential for difficult issues, especially with the Latino gangs. Detention Probation Officers (DPOs)6 informed the Grand Jury that these gangs often are taking instruction from outside gang members affiliated with the Mexican Mafia. The code of behavior often calls for attacks on black youth as a means of establishing "street credibility."7 These factors may explain why many of the Camps reported experiencing more youth on youth violence despite the decrease in overall population and the addition of staff. b. Assignment to Specific Camps The Grand Jury learned that problems at the Camps sometimes were caused by inappropriate placements. When a juvenile first comes into the Halls, there is a screening process to assess the juvenile's medical and mental status. This initial screening helps to determine if a youth has a condition, such as epilepsy or developmental disabilities that would make them unsuitable for a camp setting. When possible, assessment includes conversations with caretakers, parents, reviews of school records and previous evaluations to get a complete picture of the particular juvenile. Despite this, the Grand Jury was informed of juveniles with specialized medical needs who were sent to Camps that lacked the resources to meet those needs. In another case, six members of the same gang were assigned to the same Camp, causing a complete disruption in the social balance-which in tum led to an increase in fights. At yet another Camp, a juvenile with special education needs was sent to a Camp that lacked special day classes. There were other examples as well, including juveniles who were prescribed psychotropic drugs and refused to take them, yet went to a Camp without specialized psychiatric resources. These types of assignments do not meet the needs of the juvenile and often lead to difficult situations for the Camp personnel. 4 Formerly known as the California Youth Authority. State legislation (SB81, AB 191) directed many youth offend- ers to be housed in county facilities. This "realignment" was meant to reduce the population within CY A. 5 As defined by Welfare and Institutions Code section 707(b). 6 DPO is the rank of officer that works in the Camps and out in the field for both juveniles and adults on probation. Detention Service Officers (DSOs) work in the Halls. 7 Interviews with probation staff 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 215 3-289 DETENTION: JUVENILE FACILITIES 3. The Increase of Therapeutic Models in the Camps Due in large part to the DOJ settlement agreement, all of the Camps are emphasizing one of two therapeutic models--either Aggression Reduction Therapies (ART)8 or Dialectical Behavior Training (DBT). 9 There is more of a focus on using the time spent in camp not as punishment but as an opportunity to teach juveniles the strategies that will help them in life after camp. Through more active partnerships with the Department of Mental Health, Camps now do some outreach to the family unit as well. These therapeutic models require a strong partnership between the Department of Mental Health and Probation. The Grand Jury encountered some DPOs who were happier with the "boot camp" model and felt the therapies lacked the structure and accountability that came with that approach. Other DPOs did feel that DBT in particular has helped youth avoid fights and help with self-control. While DPOs had more praise for DBT over ART, the Grand Jury does note that DBT requires a substantial increase of personnel and resources and seemed to work better in smaller camp environments, such as Camp Scott. Suicide prevention and treatment of attempts is still a point of concern as well. In all juvenile detention centers where a juvenile threatens or attempts suicide, the juvenile is placed in isolation (SHU: Special Housing Unit) with observation every fifteen minutes. Not every facility has the trained personal to care for this problem. The SHU should be used only as long as necessary before transfer. All Camps should refer juveniles who have attempted suicide to a hospital environment (psychiatric) or at least to another facility with psychiatric oversight. 4. Educational Enhancements and Vocational Education a. Enhancements Educational Initiatives developed by LACOE and Probation show promise. Many of the more innovative programs originate from the Challenger Camps-due both to the requirements of the Casey A. settlement and due to the larger population at Challenger (250 youth). The Grand Jury hopes these are quickly expanded to all Camps. Camps are employing different strategies to bring up reading levels. Almost every Camp the Grand Jury observed used either "Reading 180" or a similar computer based program focused on reading skills. This is critical given how far behind in reading level many of these youth are. Many Camps within the past year have either opened or expanded libraries, both as part of the school and now within each living area. It was heartening to see how many of the juveniles had books by their bedsides. Without video games and minimal other distractions, reading becomes more of an option for many of these juveniles. Some of the Camps have activities such as Kindle reading programs which are popular with the juveniles. 8 Camps Rocky, Onizuka, Dorothy Kirby, Scott and Scudder employ DBT; the remaining camps employ either ART or a hybrid version of ART. All information provided by Probation. 9 For more information on DBT, see http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3080237/ 216 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-290 DETENTION: JUVENILE FACILITIES The other program that was still in a pilot phase at Challenger was the Advanced Path Academy credit recovery program.1° For juveniles who can read at the sixth grade level and higher, the program allows them to work at their own pace and actually receive high school credit. For some juveniles, six months in camp was enough time to make up over a year's worth of c.redits and thus catch up to their classmates upon return to their home schools. For juveniles with potential who have missed a great deal of school, this is a wonderful second chance and should be available at every Camp. b. Vocational Training There has been an increase in the vocational opportunities presented through LACOE and the Grand Jury sees that as a huge plus. Juveniles are able to get OSHA 11 cards and training in some basic construction, food services and other areas. For many of these juveniles, the vocational training is a means to keep them more enthused about school generally and provides a motivation to do well in other classes. Being able to build a bookcase or fix wiring is an excellent practical experience and provides self-esteem that comes from accomplishment. The Challenger Cam~s offer formal instruction in the construction trades through a program called Building Skills. 1 It utilizes computer, video programs and hands-on instruction to give youth an understanding of a construction trade. This training covers such basic construction areas as blueprint reading, concrete work, electrical, finish carpentry and similar crafts. The camps have also offered courses in baking, gardening, computer networking and other programs. LACOE plans to implement Building Skills at three additional juvenile probation camps in 2013: Mendenhall in Lake Hughes, Miller in Malibu and Scott-Scudder in Santa Clarita. The Grand Jury strongly urges that the program be available to all Camps in a reasonable time frame. 5. Staffing Challenges: Long Term Disability One of the challenges faced by almost every Hall and Camp is the issue of personnel on disability leave or disability limitations. At any given time, up to 30% of the staff at the four Halls and 10-20% of the staff at the Camps may not be filling their assigned positions. Any department would have difficulty operating efficiently when 10-30% of their staff was out. This is especially problematic for Probation because Title 15 specifies exact ratios of supervisory personnel (DSOs and DPOs) to juveniles. Probation then is forced to either shift employees from other assignments or to pay overtime. There is no question that working with this population poses its challenges and many of these injuries are legitimate. For some though, there are financial incentives to being on leave. California law allows a police officer to receive full pay for the entire duration of their leave, up to a full year 13 , as has been the case at a few of the sites the Grand Jury visited. On top of this, 10 http://www.lacoe.edu/Home/NewsAnnouncements/tabid/177 /ID/96/ Academy-Puts-Youth-Offenders-on-Path-to- Graduation.aspx 11 OSHA: Occupational Safety and Health Administration. 12 http://www.pmewswire.com/news-releases-test/la-county-officials-launch-buildingskills-career-tech-program-for- incarcerated-students-144672165.html#1366234 787693l&req=rpuSetSize&h=196&w=226 13 California Labor Code section 4850 et seq. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 217 3-291 DETENTION: JUVENILE FACILITIES many employees buy additional disability insurance policies which can pay full salary for the time an employee is out on leave. There are no limits to how many policies can be purchased which means an employee can be earning many times their salary while out on leave. When a critical mass of employees abuse the system and are allowed to get away with it, morale and resentment builds among those who do come in every day to do the job. It is beyond the scope of the Grand Jury to advise changes in state law or to limit the right of employees to buy insurance. The Grand Jury strongly urges Probation to be aggressive in investigating cases of long term leave. The Grand Jury commends Probation for taking an approach similar to the Sheriffs Department and assigning staff exclusively to doing things like making home visits to employees and requiring those who have partial disabilities to still come in to work and fill other positions. If this issue continues to be a problem, Probation needs to take further steps such as increasing the number of cameras around the Halls and Camps (to aid in investigating the claimed injury), increasing training in self-defense and injury prevention and even adding more stringent strength and fitness requirements for new hires. INDIVIDUAL HALLS AND CAMPS14 The Grand Jury is just one of many entities that inspect juvenile detention facilities. Incorporated in this report is a chart containing a description of all juvenile facilities inspected by the Grand Jury. The three Juvenile Halls, Barry J. Nidorf, Central and Los Padrinos are the first point of entry for minors. Each Hall, as well as each Camp has a separate administration as well as slightly different focus. Halls are marked by constant movement. Minors initially come to the Halls prior to formal adjudication. They go back and forth to different hearings and simultaneously through various assessments to determine if they should be released to the community. Once a case is adjudicated, a minor may be transferred to another Hall for assessment to determine Camp placement. For example, all boys are ultimately sent to Barry J. Nidorf for Camp assessment. The uncertainty that comes with not knowing what will hap- pen to them leads to a high level of stress amongst the youth in the Halls 15 • This in tum leads to greater stress levels in the staff as well and greater issues in terms of absenteeism and disability leave in the Halls. It is ironic that the sixteen Camps would actually be relatively less stressful environments. Minors know their terms and what to expect. That is not to say they are stress-free environments. Each Camp is run by its own administration and many of the camps have areas of specialization. Partnerships between the Department of Mental Health and LACOE are crucial to the success of the Camps and the Grand Jury notes that staff consistently reported 14 The following information was excerpted from the 2011-2012 LA Grand Jury Final Report and the Los Angeles Almanac accessed at www.laalmanac.com/crime/cr39.htm 15 Based on interviews with Camp and Hall staff. 218 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-292 DETENTION: JUVENILE FACILITIES that these partnerships have strengthened in the last few years. The chart below highlights some of the issues specific Camps faced in carrying out Probation's mission to enhance public safety, ensure victims' rights and effect positive probationer behavioral change. COMMENDATIONS 1. The Grand Jury commends the Probation Department Staff of the Dorothy Kirby Cen- ter for their professionalism and caring ethic essential for treating juveniles with emotional and mental health issues. The homelike atmosphere in the residential cottages, and the organization and cleanliness of the campus is exemplary. 2. The Grand Jury commends the use of Advanced Path credit recovery and vocational training programs as concrete examples of hands-on education innovations leading youth directly towards high school graduation and marketable skills. RECOMMENDATIONS 16.1. The Department of Probation should expand the Advanced Path Academy credit recov- ery program to all Camps. 16.2. The Department of Probation should provide vocational/occupational training programs at all Juvenile Camps without further delay. 16.3. The Department of Probation should rigorously monitor the assignment of juveniles to lessen and prevent youth-on-youth violence by eliminating multiple members of the same gang or competing gangs being assigned to the same Camp. 16.4. The Department of Probation should assign juveniles to Camps offering the specialized medical, psychiatric and educational services required by the minor. 16.5. The Department of Probation should refer all juveniles who have attempted suicide to a dedicated psychiatric facility or other Camp with mental health specialists for evaluation and treatment. 16.6. The Department of Probation and Los Angeles County Office of Education should implement innovative reading programs to increase the reading decoding and comprehension levels of juveniles at all of the Camps. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 219 3-293 DETENTION: JUVENILE FACILITIES 16.7. The Department of Probation must aggressively reduce the number of staff on long- term disability and light duty unable to carry out the duties for which they were originally hired. 16.8. The Department of Probation must increase the number of cameras placed throughout the Camps to assist investigating the high percentage of injury claims resulting in long-term disability or light duty dispositions. 16.9. The Department of Probation should increase training in self-defense and injury preven- tion along with setting stringent strength and fitness requirements for all new hires. REQUIRED RESPONSES Recommendation Responding Agency 16.1-16.9 Department of Probation 16.6 Los Angeles County Office of Education, Department of Probation ACRONYMS ART Aggression Reduction Therapies DBT Dialectical Behavior Training DJJ California Division of Juvenile Justice DOJ Department of Justice DPO Detention Probation Officer DSO Detention Service Officer LA COE Los Angeles County Office of Education OSHA Occupational Safety and Health Administration SHU Special Housing Unit 220 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-294 INDIVIDUAL JUVENILE FACILITIES ~ ~ <:J = Facility Address Telephone ell Comments ~ = -... ~ -~ ~ IZ ~ Alfred Mccourtney 1040 W. Avenue J Manuals are up-to-date. The center appears well maintained. Jl Juvenile Lancaster, CA 93534 (661) 949-6503 1 Youth are usually onsite less than 4 hours. J usticeCenter Programs include ART, specialized housing/programs for foster Central (Eastlake 1605 Eastlake Ave. youth and art therapy. Has enhanced supervision for minors 12 Detention) Juvenile Los Angeles, CA (323) 226-8611 2 with mental/health issues and a care unit for minors who require Court 90033 protective custody. Older facility with many staff on medical leave. J3 Inglewood Juvenile 110 E. Regent St. In-(310) 419-5267 2 This is an older, cramped facility. Poor line of sight inhibits glewood, CA 90301 monitoring of juvenile. Maintenance and upkeep are needed. LA-Kenyon -Juve-7625 S. Central Ave. This center is scheduled to close with services being moved to J4 Los Angeles, CA (323) 586-6103 nile Justice Center 90001 Inglewood Juvenile. J5 Barry J. Nidorf Hall 16350 Filbert St. Syl-(818) 364-2011 2 The facility is in need of video surveillance and interior mainte- (Previously San mar, CA 91342 nance. Priorities are staff training in adolescent behavior and the Fernando Juvenile) needs of the developmentally disabled. 16 Ratings: 1 = Good 2 = Acceptable 3 = Poor 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 221 3-295 DETENTION: JUVENILE FACILITIES INDIVIDUAL JUVENILE FACILITIES ~ i::Cll ~ = Facility Address Telephone Comments ~ = ... . ... ~ ...... ~ ~ ~ ~ J6 Central Juvenile 1605 Eastlake Ave. (323) 226-8611 2 This is an old facility that needs upgrading and maintenance. A Hall Los Angeles, CA new program to help female victims of human trafficking has 90033 (Eastlake De-been started. The Hall implements an excellent educational pro- tention Center) gram including creative writing, and up-to-date electronic re- sources. J7 Los Padrinos Juve-7285 Quill Dr. (562) 940-8631 2 This is an older facility that needs upgrading and maintenance. nile Hall Downey, CA 90242 J8 Dorothy Kirby 1500 s. McDonnell (323) 981-4301 1 This facility is organized and clean, with a highly trained and Treatment Center Ave. Los Angeles, CA caring staff that addresses youths' mental health and medical is- 90022 sues. Special staff attention creates a safe and pleasant atmosphere. J9 Afflerbaugh 6631 N. Stephens (909) 593-4937 1 Built in 1955, the facility is well maintained with a new director Ranch Rd. La Verne, and knowledgeable staff. Capacity is 100 -116. It is connected to CA 91750 Camp Paige, which is a near mirror image of Afflerbaugh, hous- ing the forest fire training camp for physically fit youth who J22 Paige (Fire Camp) 6601 N. Stephen (909) 593-4921 1 meet educational and behavioral requirements. Ranch Rd. La Verne, CA 91750 222 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-296 DETENTION: JUVENILE FACILITIES INDIVIDUAL JUVENILE FACILITIES ~ ~ CJ = Facility Address Telephone = Comments ~ ... -...... ~ ~ ~ ~ i::i:: no Challenger-} arvis 5300 W. Avenue "I" (661) 940-4144 1 Lancaster, CA 93536 Challenger is divided into six modules, with three on the east Jl l Challenger-530.0 W. Avenue "I" (661) 940-4146 1 side and a mirror image of the other three on the west side. There McNair Lancaster, CA 93536 is a row of buildings down the center for LA COE classes. The J12 Challenger-5300 W. Avenue "I" (661) 940-4144 1 camp's reputation is improving, now it is a more desirable work place. Each module's occupancy has been reduced from 100 to Onizuka Lancaster, CA 93536 50 juveniles. There is a new occupational training center and cul- J13 Challenger-5300 W. Avenue "I" 1 inary arts program, called Building Skills. Extracurricular pro- Resnick (closed-Lancaster, CA 93536 grams have increased, such as the Kindle e-book reading club. used for evacuation) Mental health and medical services are provided on-site. Staff is being trained in Anger Regression Therapy (ART) and Dialectic J14 Challenger-5300 W. Avenue "I" 1 Behavior Therapy (DBT). Two full-sized gyms and a swimming Scobee Lancaster, CA 93536 pool are in use. Camp Resnick is closed, yet it stands ready for use in case another camp needs to be evacuated. J15 Challenger-Smith 5300 W. Avenue "I" 1 Lancaster, CA 93536 J16 Gonzales 1301 N. Las Virgenes (818) 222-1192 1 Gonzales opened in 1962 as an open forestry and fire camp. A Rd. Calabasas, CA wall was erected in the early 1970's. Education and vocational 91302 camp. It offers science and math class with practical applica- tions. Tutors from Pepperdine University are available onsite. The ''New Roads for New Visions" program is in effect. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 223 3-297 DETENTION: JUVENILE FACILITIES INDIVIDUAL JUVENILE FACILITIES Q,) 01I CJ = Facility Address Telephone = Comments Q,) .... -...... ~ t"= Q,) ~ ~ J17 Holton 12653 N. Little (818) 896-0571 CLOSED Tujunga Canyon Rd. San Fernando, CA 91352 427 S. Encinal Can-Kilpatrick is scheduled to close in June 2013 and to be rebuilt. J18 Kilpatrick yon Rd. Malibu, CA (818) 889-1353 1 Currently sports-oriented, when rebuilt it will be more education- 90265 focused. Neighboring Camp Miller is an older (1962), yet clean facility. The camp has a drug sniffing dog on site. Camp Miller 433 S. Encinal Can-is education oriented. It has a wood shop and a computer lab. J20 Miller yon Rd. Malibu, CA (818) 889-0260 1 Juveniles are encouraged to get their General Education Diploma 90265 (GED). 42230 Lake Hughes Current camp format is therapy and education based, unlike its J19 Mendenhall Rd. Lake Hughes, CA (661) 724-1213 1 original boot camp model. Some staff believes that the boot 93532 camp approach compelled accountability and structure, leading to less acting out. Youth-on-youth violence has increased in the 42220 N. Lake percentage of camp-wide incidents in the last 2 years. The camp J21 Munz Hughes Rd. Lake (661) 724-1211 1 features novel programs such as "Drumming for Your Life"--20 Hughes, CA 93532 hours over 10 weeks. J23 Rockey, Glenn. 1900 N. Sycamore (909) 599-2391 1 Built in 1931, it was remodeled in 1976. The population is less Canyon Rd. San Di-than half of capacity (from 125 to 50). Behavioral Management mas, CA 91773 Program is in effect. Juveniles' ages range generally from 13 to 16. A popular culinary class has been implemented. 224 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-298 DETENTION: JUVENILE FACILITIES INDIVIDUAL JUVENILE FACILITIES ~ <,; en = Facility Address Telephone = Comments ~ .... -.... ~ CIS ~ ~ ~ 12500 Big Tujunga J24 Routh (Fire Camp) Canyon Rd. Tujunga, (818) 352-4407 CLOSED CA 91042 Scott (Girls' Camp) 28700 N. Bouquet (661) 296-8500 1 Scott and Scudder are adjoining girls' camps. Their excellent Canyon Rd. Santa mental health programs focus on Anger Regression Therapy 125 Clarita, CA 91350 (ART), Dialectical Behavioral Training (DBT). Integrated treat- ment models include a substance abuse program. Significant in- crease in the Department of Mental Health and Probation staff 126 Scudder (Girls' 28750 N. Bouquet (661) 296-8811 1 partnership. Populations are considerably under capacity. Educa- Camp) Canyon Rd. Santa tion programming is well done. A new library offers print and e- Clarita, CA 91350 books. Dorm sleeping areas are large with no privacy. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 225 3-299 Juvenile Detention Facilities Inspection Report Los Angeles County Civil Grand Jury 2012-2013 Date: Visit Time: -----------Facility Name: ____________________________ _ Adress/Phone: -----------------------------Tour Guide: ----------------------------~ Type of Facility: ________ Capacity: ____ Current Population: ____ _ Inspected by: ____________________________ _ Ratings: 1 = Good 2 = Acceptable 3 = Poor Categories Previous Reports/Inspections Personnel/Training Policies/Procedures Facilities Segregation/Safety Physical Health Mental Health/Suicide Prevention Education Other Overall Com- ments/Recommendations: Rating Comments ------------------------- 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 226 3-300 DETENTION: JUVENILE FACILITIES FACILITY: DATE: JUVENILE INSPECTORS: 2012-2013 CIVIL GRAND JURY JAIL INSPECTIONS-Juvenile Facilities TOPIC Issues/Questions Comments TITLE15 Prior issues: Civil Grand Jury Reports? Also see list Law suits/Court decrees? of forms County Superintendent of Schools report? Other reviewing agency reports? Article 3 Training Personnel and Management Staffing Sufficient numbers? 3:1321 One on duty at all times who is responsible for operations? One on each living unit? Someone to plan menus and see nutritional standards met? Enough so child supervision staff not diverted? Ratios For juvenile Halls and special purpose camps When minor awake 1: 10 When asleep 1:30 2 on duty at all times At least one the same gender as the youths For camps: when minors awake 1:15 Child Su-What is the orientation process? pervision 40 hours minimum of site specific orientation? Staff Orien-What's covered in orientation? (Continuum of force, medical tation and requirements, policies, discipline, etc.) Training 3:1322 Emergency Policies for: escape, disturbances, taking of hostages, fire, Procedures natural disturbances, civil disturbances? 3:1327 Safety Direct visual observation every 15 minutes. (cameras don't Checks replace this). 3:1328 Documentation of safety checks? Article 5 Classification and Segregation Admittance Phone Access Allowed? Procedures Minors advised of length of stay? 5: 1350 Classifica-Multiple factors considered for least restrictive housing? tion 5:1352 Periodic reviews conducted? 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 227 3-301 DETENTION: JUVENILE FACILITIES Orientation Access to health, legal, religious, educational, hygiene, use of 5:1353 force discussed? Told both orally AND in writing? (Ask for writing.) Segregation Direct visual observation? (NO denial of privileges) 5:1354 Used for discipline? (not allowed) Institutional If more than 30 day stay, written plan in place? Assessment 5:1355 Counseling and Counselors available? Casework Substance Abuse, family crisis, mental health? 5:1356 Use of Force Need written policy (never as punishment) 5:1357 Training provided? Did training include knowledge of: medical conditions, chemi- cal agents, symptoms for immediate referral? Documentation and grievance policies? Use of Physical Log available showing: reason for restraint (every hour) Restraints Continuous direct visual supervision in specific area? 5:1358 Never for punishment Safety Room Access to toilet and suitable clothing? Procedure Continuous direct supervision? 5:1359 Documented every 15 minutes? Evaluated every 4 hours and medically cleared every 24? Grievance and Ask to see them: what is the process? Incident Forms 5:1361-1362 Release Proce-Notification of parents, health care providers, schools made? dures 5: 1351 Article 6 Programs and Activities Education Quality educational program provided? Program Enrolled w/in three days w/ full access to classes? 6:1370 Recreation and One hour (minimum) oflarge muscle activity (prefer outdoors)? Exercise At least 3 hours wk and 5 hours on Saturday and Sunday? 6:1371 What games, reading material available? 228 2012-2013 LOS ANGELES COUNTY CIVIL GRAND JURY REPORT 3-302 DETENTION: JUVENILE FACILITIES Visitors Opportunities available min. 2 days a week? 6:1374 Social A ware-Are they being offered? Is so, what? ness Program 6:1378 Article 7 Discipline Discipline Policy and discipline log available? 7:1309-1 Rules available to minors? Should NEVER indude deprivation of food, bedding, exercise, contact w/ parent or atty., daily hygiene, education. NO force as discipline. Article 8 Health Services Health Services Health administrator available for discussion? 8:1400-1430 Adequate facilities, supplies, staff available? Annual summary of statistics available? Written policies for health care, treatment, access? Are guards aware of inmate special needs? Intoxicated Requires pre-evaluation, then designated housing and checked minors 8:1431 every 15 minutes. Health Ap-Health appraisal given in 96 hours? praisal and How do minors ask for care? Request 8:1432-33 Mental Health Are they screened, treated by a professional or timely Services !transferred? 8:1437,39,50 How are psychotropic drugs given, monitored? What is done for suicide prevention? Pharmaceuti-Have specific procedures for keeping meds, identifying recipi- cal Manage-ent, administering drugs. ment Annual report by pharmacist on status of pharmacy services. 8:1438 Article 9 Food Serving 3 times in 24 hours (one meal hot?) 9:1460 Healthy diet given? Article 10 Clothing and Personal Hygiene Hygiene Clean clothing and bedding available and daily showers? 10:1480-88 Hair care monthly? Bedding Adequate bedding? (pillow, mattress, mattress cover and sheet, 11:1500 one towel and blanket) Sheets washed once a week? 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 229 3-303 DETENTION: JUVENILE FACILITIES 230 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-304 Civil Grand Jury Internal Committees 3-305 17. Civil Grand Jury Internal Committees The following brief summaries describe the internal committees that the 2012 -2013 Los Ange- les Civil Grand Jury (Grand Jury) formed in order to accomplish its work. These internal com- mittees are formed by each Grand Jury at the beginning of its term. Several committees work throughout the year, such as the Social Committee, while others are active during the last part of the jury term, such as the Publication Committee. Audit Committee The Audit Committee is responsible for developing and approving any contracts for outside as- sistance to the Grand Jury. The Grand Jury required expertise and technical skill to be provided by a contract consultant. A list of consultants authorized for use by the Grand Jury was obtained from the Los Angeles County Auditor-Controller Office. In addition, the Auditor-Controller's office maintains a file containing reviews from various county departments of past Audit/Studies from contract consultants and their respective feedback and ratings. These files and ratings were reviewed by the Grand Jury in order to obtain a selection of qualified firms to interview with ex- cellent ratings. The selections of several qualified firms for contract consideration were made. Interviews were held with selected qualified firms. The contract firms supplied examples of goals and objectives for inclusion in the proposal and examples of prior investigative work. Also ascertained was any evidence of conflict of interest. Final contract approval of the audit contract was obtained by the Grand Jury, County Counsel and the Supervising Judge. The Grand Jury awarded one contract during the year for audit assistance for the Cities Investi- gation. Audit Committee: Kenneth Howard, Chair David Dahl, Co-Chair Jeff Clements Mel Widawski Edit Committee The Edit Committee of the 2012-2013 Grand Jury had the distinct privilege of ensuring that the Final Report, the result of a year-long investigation of city and county departments, was gram- matically correct, uniformly formatted and easily understood by department heads as well as the local citizen. The Final Report, with the approval of the Grand Jury and the judge of the Superior Court, was distributed to the Los Angeles County Board of Supervisors, the investigated government agen- cies, the media and the general public. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 231 3-306 GRAND JURY INTERNAL COMMITTEES The Edit Committee worked to ensure that the 2012-2013 Final Report was an exemplary prod- uct. Edit Committee: Jacqueline Brown, Chair Barry Rubens, Co-chair David Dahl Thomas Scheerer John Zehrung Information Technology Committee The Information Technology Committee (IT) has two main purposes: 1. Aid the Grand Jury in using the computers. This includes supporting the secretary by cre- ating calendar forms. 2. Backing up the files on the Grand Jury's shared drive. The drives were backed up at least weekly. IT Committee: Mel Widawski, Chair Kenneth Howard Richard Huber John Zehrung Publication Committee The Publication Committee is responsible for collating the separate investigative committee re- ports, reports from the standing committees and working with the contracted printer to prepare and proof-read the final report from the Grand Jury. The Publication Committee also insures that sections of the final report are delivered to the investigated Los Angeles County Departments, cities, and joint powers prior to the publication of the final report as described in Penal Code sec- tion 933.05(f). Publication Committee: Joseph Des Barres, Chair Jacqueline Brown David Dahl Kenneth Howard 232 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 3-307 GRAND JURY INTERNAL COMMITTEES Richard Huber Caroline Kelly Frederick Piltz Elena L. Velarde Mel Widawski Social Committee The Social Committee's responsibility was to organize social events, provide speakers' and juror refreshment supplies and generally promote group camaraderie and cohesiveness among the ju- rors. The Social Committee proved to be an integral part of the Grand Jury's functionality. Some of the Social Committee's achievements include an off-site December holiday luncheon and End of Term luncheon, purchase ofrefreshment supplies such as: coffee and all supplemen- tal supplies and instituted on-site monthly themed Brown Bag Luncheon Events in the Superior Court cafeteria. It is recommended that future juries will continue the Social Committee as a standing committee to embrace the diversity of the jurors and to ensure a cohesive group that not only works welf together but enjoys the company of strangers who become friends. Social Committee: Joan Turner, Co-chair Carol Pentz, Co-chair James Bradford Joseph Des Barres Elena L. Velarde Speakers and Events Committee The Speakers and Event Committee responsibilities include inviting prominent public officials to address the Grand Jury on issues challenging Los Angeles County and planning for visits to local governmental facilities that are of interest to the Grand Jury. The purpose of inviting speakers was to educate the Grand Jury while visits to various county facilities were chosen to acquaint Grand Jury members with facilities administered by the County and other local governments. Speaker presentations and field trips helped educate the Grand Jury and assist in making an in- formed selection of issues. 2012-2013 Los ANGELES COUNTY CIVIL GRAND JURY REPORT 233 3-308 3 - 3 0 9 3 - 3 1 0