MORNING I WAS THE ONLY MEMBER
RUDY SALAS I AM THE CHAIR OF THE
JOINT LEGISLATIVE AUDIT
COMMITTEE WE'RE GONNA GO AHEAD
AND CALL THE OVERSIGHT HEARING
OF THE JOINT LEGISLATIVE AUDIT
COMMITTEE THE ASSEMBLY VETERANS
AFFAIRS COMMITTEE.
ON THE SENATE VETERANS AFFAIRS
COMMITTEE TO WATER THIS MORNING
WE WILL DISCUSS THE FINDINGS AND
RECOMMENDATIONS IDENTIFIED BY
THE STATE AUDITOR.
AND HER AUDIT REPORT RELEASED IN
JANUARY OF THIS YEAR.
TITLED CALIFORNIA DEPARTMENT OF
VETERANS AFFAIRS AND PART OF
GENERAL SERVICES THE
DEPARTMENT'S MISMANAGEMENT OF
THE VETERANS HOME PROPERTIES HAS
NOT SERVED VETERANS BEST
INTEREST.
AND HAS BEEN DETRIMENTAL TO THE
STATE.
I WANT TO THANK ASSEMBLY MEMBER
IRWIN -- FOR
REQUESTING THIS AUDIT AND
HELPING TO ENSURE THAT THE
VETERANS HOME PROPERTIES ARE
BEING USED TO BENEFIT VETERANS.
WE WILL ALSO DISCUSS THE
DEPARTMENT OF VETERAN AFFAIRS OF
THE DEPARTMENT OF GENERAL
SERVICES PLANS TO IMPLEMENT
CHANGES.
AND CORRECTIVE ACTIONS --
INCLUDING THE STATE AUDITOR'S
RECOMMENDATIONS TO HELP INSURE
THAT VETERANS HOME PROPERTIES
ARE BENEFITING.
VETERANS.
AS YOU KNOW CAL VANCE MANAGES
EIGHT VETERANS HOMES IN THE
STATE I WHICH VETERANS ARE
PROVIDED RESIDENTIAL
REHABILITATIVE AND MEDICAL CARE.
WITH CAL THAT'S CONSENT.
DJ S. CAN LEASE PROPERTY AT THE
HOMES TO THIRD PARTIES AS LONG
AS A LEASES ARE IN THE BEST
INTEREST OF VETERANS.
AND THE OTHER REPORTS STATE
AUDITOR FOUND D. G. S. COULD NOT
EXPLAIN HOW IT.
HAD ESTABLISHED RENTAL RATES --
SOME RENTAL RATES ERE FAR BELOW
CURRENT MARKET RATES SOME THIRD
PARTY OCCUPANT.
SOME THIRD PARTIES OCCUPY THE
HOMES PROPERTY WITHOUT WRITTEN
AGREEMENTS THAT WOULD PROTECT.
THE STATE FROM LIABILITY.
SOME LEASES WERE INCONSISTENT
WITH THE VETERANS HOMES BEST
INTERESTS AND VIOLATED LAWS.
THE REPORT ALSO FOUND THAT THE
GS IN CALVET FELL TO ENSURE THAT --
OVER HALF A MILLION DOLLARS
RECEIVED FROM LEASES WERE SPENT
TO BENEFIT OUR VETERANS --
THAT ONE OF THE MOST SURPRISING
THINGS.
IS THAT IN TWENTY THIRTEEN THE
STATE AUDITOR PRODUCED REPORT
STATING THE YOUNG WILL VETERANS
HOME IMPROPERLY ENTERED INTO TO
LEASES THAT VIOLATED STATE LAW.
ONE LEASE WAS FOR THE
CONSTRUCTION OF AN ADVENTURE
PARK.
INCLUDING SEVEN ZIP LINES ON
ALMOST TWO HUNDRED ACRES OF THE
VETERANS HOME PROPERTY.
THE STATE EVENTUALLY HAD TO PAY
200-280-00600 TWELVE DOLLARS TO
GET OUT OF THAT LEASE.
AND TWENTY FOURTEEN THE
DEPARTMENT OF FINANCE CRITICIZED
CALVET FOR FAILING TO OBTAIN TGS
IS APPROVAL.
AND FOR FAILING TO MONITOR AND
ENFORCE COMPLAIN FOR THIS
OVERSIGHT HEARING IS THAT.
WE WILL.
MY GOAL IS REALLY FOR US TO SEE
CANCERS AND TO FIND REMEDY SO
THAT WE CAN BETTER SERVE OUR
VETERANS.
AND BETTER MOVE FORWARD WITH
THESE LEASES WITH THIRD PARTY
BUSINESS VENDORS HAVE THAT
ACCOUNTABILITY --
LESS LIABILITY ON THE STATE BUT
ALSO BELIEVE THAT WE'RE DOING
THE MOST THAT WE CAN TO PROTECT
OUR VETERANS AND ENSURE THAT --
WE'RE DOING EVERYTHING THAT WE
CAN FOR FOR OUR MILITARY
VETERANS --
WITH THEM I MOVED TO OPENING
COMMENTS FROM THE CHAIRS AT THIS
TIME WE'RE GONNA MOVE TO
ASSEMBLYWOMAN JACQUI IRWIN WHO
IS CHAIR OF THE ASSEMBLY
VETERANS COMMITTEE.
MR ONE THANK YOU VERY MUCH.
HELLO OF THIRD AS THANK YOU VERY
MUCH MISTER CHAIR --
FOR CONVENING THIS HEARING AND
THANK YOU TO THE STATE AUDITOR.
AND THE TEAM THAT CARRIED OUT
THE AUDIT I REQUESTED THIS AUDIT
LAST YEAR ON THE STRENGTH OF
SOME INFORMATION MY STAFF HAD
REQUESTED FROM.
CALVET WHICH ITSELF LEAD TO
OTHER DISCOVERIES BY THE
DEPARTMENT ITSELF AS THE AUDIT
MAKES CLEAR.
BUT WE COULD NEVER UNDERTAKEN A
THOROUGH INVESTIGATION OF THESE
USES OF REAL PROPERTY WITHOUT
THE AUDITOR'S RESOURCES AND
INDEPENDENT AUTHORITY.
THANK YOU I'D ALSO LIKE TO THANK --
CALVET SECRETARY DR.
IT CAN'T BE EASY TO STAND UP AND
TAKE ACCOUNTABILITY IS FOR
PRACTICES THAT --
PRECEDED YOU IN MOST CASES BY
DECADES.
I FOUND THAT YOU IN YOUR
DEPARTMENT OR A FORTHCOMING
ABOUT THE AUDIT AND ITS FINDINGS
AND RESPONSIVE AND I LOOK
FORWARD. TO FOLLOWING UP ON THE
WORK HAT YOU'VE DONE IN
IMPROVING CONDITIONS AND
PRACTICES AT THE HOME BY.
TAKING ON TOGETHER SOME OF THE
PROBLEMS THAT THIS AUDIT
UNCOVERED.
AND THANK YOU TO TO TGS FOR
MAKING IT STAFF AVAILABLE TO
ANSWER QUESTIONS FROM THE PANEL.
IN PRINCIPLE GUIDING MY APPROACH
TODAY IS THAT WE ARE HERE TO
SHINE A LIGHT ON STATE PRACTICES
AND PROCEDURES IN THE INTEREST
OF BETTER.
AND MORE TRANSPARENT --
THE GOVERNMENT I HAVE NO DOUBT
THAT THE MUSEUM THE THEATER --
AND AND OTHER BUILDINGS ARE
VALUED COMMUNITY RESOURCES THAT
PROVIDE MUTUAL BENEFITS TO THE
HOME IT'S RESIDENTS.
AND THE RESIDENTS OF YON PHIL
THE QUESTION FOR ME IS HOW STATE
AGENCIES ARE CONDUCTING THE
BUSINESS OF THE PEOPLE OF
CALIFORNIA.
MY QUESTIONS TODAY WILL BE
DIRECTED AT INVESTIGATING THE
PROCESS OR LACK OF ONE THAT GOT
US HERE.
AND THAT WILL INFORM THE DESIGN
OF A BETTER ONE WE NEED TO GET
THIS RIGHT STRIKING THE RIGHT
BALANCE WILL BE BETTER FOR
EVERYBODY INVOLVED.
THANK YOU.
THANK YOU SEVEN WOMEN URBAN AT
THIS I'M GONNA MOVE TO SENATOR
ARCHULETA WHO IS.
THE CHAIR OF THE SENATE --
VETERANS AFFAIRS COMMITTEE.
THANK YOU MISTER CHAIR AND I'D
LIKE TO BEGIN BY SAY THANK YOU --
TO ASSEMBLY MEMBER SALAS
ASSEMBLY MEMBER IRWIN THANK YOU
FOR BRINGING THIS FORWARD AND
AND YOUR PARTICIPATION BRING US
ALL TOGETHER.
AND LADIES AND GENTLEMEN WE'RE
HERE TO CONTINUE OUR RESPECT AND
HONOR FOR THE MEN AND WOMEN WHO
SERVE THIS GREAT COUNTRY.
AND I'D LIKE TO THINK THAT THAT
SHOULD BE THE BACKBONE SHIN HOW
BEST TO SERVE AND REPRESENT.
THE HONORABLE MEN AND WOMEN WHO
HAVE GIVEN SO MUCH TO OUR
COUNTRY THOSE WHO SERVE IN THE
ARMY NAVY AIR FORCE MARINE CORPS
COAST GUARD.
THEY ALL NEED TO BE RECOGNIZED
AND HONORED AND I THINK THAT
THIS AUDIT.
IN THIS PARTICIPATION OF FROM
THE SECRETARY BETTER TO FAIRS
AND ALL THOSE INVOLVED WILL
BRING THIS TO LIGHT --
IT THIS IS NOT TO BE A WITCH
HUNT THIS IS TO BE AN INFORMANT
INFORMANT I I'M SORRY
INFORMATION BEHIND --
PARTICIPATION TO WHICH ALL OF US
CAN AGREE THAT WE NEED TO MAKE
SOME CORRECTIONS.
WE'VE HEARD FROM BOTH --
CHAIRED CO CHAIR OF THE ISSUES
OF COURSE PERTAINING TO THE
PROPERTY THE USE THAT LEASES --
MY CONCERN OF COURSE IS THE THE
TREATMENT OF THE MEN AND WOMEN
WHO ARE --
RESIDENTS OF OUR VETERANS HOMES
AND THAT IT'S IMPORTANT BUT IT
IS A BUSINESS IN A BUSINESS
SHOULD BE RUN.
WITH DIGNITY AND HONOR IN
ESPECIALLY OUR VETERANS HOMES
AND I'M SO PROUD.
TO SHARE WITH YOU I SURE BUT THE
EIGHTY SECOND AIRBORNE AND AND I
KNOW THAT --
ALL THESE MEN AND WOMEN WHO
GIVEN THEIR LIVES OR FAMILIES
AND SO ON AND GOT TO BE
RECOGNIZED THEY BRING ALONG WITH
EACH YEAR --
POSITIVE MEETING INFORMATIVE
MEETING AS I MENTIONED AND AND
SEE WHAT STEPS ARE NECESSARY TO
BE TAKEN --
NOT JUST IN THE FUTURE BUT
IMMEDIATELY IMMEDIATELY
BEGINNING TODAY AFTER THIS
MEETING.
THAT WHAT CAN BE DONE.
AND I'M HOPING THE SECRETARY
WILL PICK UP THE TELEPHONE AND
AND GET AN ACCURATE ACCOUNT OF
EXACT WHAT'S TAKING PLACE AND
TAKE -- HIS
PLAN OF CORRECTIVE NESTS INTO
ACTION AND HIS STAFF AND
EVERYONE ELSE.
AND OF COURSE THE THE AUDIT IS
IN DEPTH --
IT IS NOT --
PRETTY TO BE HONEST WITH YOU --
BUT AS FACTUAL AND THE DATA IS
THERE. TO SHOW THAT WE NEED TO
COME TOGETHER THE CORRECTION OF
THESE ISSUES AND AGAIN I'D LIKE.
TO SAY THAT I I THANK THE
ASSEMBLY MEMBERS WHO ARE HERE IN
THE SENATORS YOU'RE HERE.
BECAUSE THIS IS A TEAM EFFORT.
TO BRING THE STAND HONOR MEN AND
WOMEN IN UNIFORM AND OUR
VETERANS AND I THANK YOU.
THANK YOU THANK YOU FOR THOSE
COMMENTS AND I THINK --
WHAT YOU'RE HEARING FROM EACH OF
THE CHAIRS AS WE'RE REALLY
LOOKING AT TRYING TO IDENTIFY
SOLUTIONS MOVING FORWARD --
WE KNOW THE AUDIT REPORTS
WHETHER YOU GO ALL THE WAY BACK
TO TWENTY THIRTEEN IN THE ONE OF
THE FIRST OUT ITS.
THAT IDENTIFIED SOME OF THESE
ISSUES --
BUT THE ULTIMATE GOAL IS HOW DO
WE BEST SERVE VETERANS AND WHAT
ACTION ITEMS CAN WE TAKE TO FIX
THOSE ISSUES THAT HAVE BEEN
IDENTIFIED IN REPEATED AUDITS
AND ALSO.
IN THE DEPARTMENT OF FINANCES
FINDINGS AS WELL SO WITH THAT
WE'RE GONNA GO AHEAD AND START
WITH A START WITH THE CHEN ITEM
NUMBER TWO AN OVERVIEW OF THE
AUDIT FINDINGS AND
RECOMMENDATIONS SO IF WE COULD
PLEASE HAVE --
MISS HOW AND HER TEAM APPROACH.
AND PLEASE JUST GIVE US.
IF YOU JUST GIVE US A BACKGROUND
A PRESENTATION ON YOUR FINDINGS.
AND PLEASE BEGIN WHEN YOU ARE
READY THANK YOU [inaudible]
WE'RE THANK YOU THANK YOU MISTER
CHAIR AND YOUR WOMAN IRWIN
CHAIRMAN ARCHULETA --
AND MEMBERS OF ALL THE
COMMITTEES THAT ARE HERE TODAY
FOR THE RECORD MY NAME IS ELAINE
HOW ON THE CALIFORNIA STATE
AUDITOR. TO MY RIGHT IS AMANDA
MELON AMANDA WAS THE AUDIT TEAM
SUPERVISOR WORKING WITH STAFF
OUT AT THE HOMES PRIMARILY WE
SPENT A LOT OF TIME AT YOUNG
BILL BECAUSE THEY HAVE --
THE MAJORITY OF THE LEASES THAT
WE LOOKED AT BUT WE ALSO SPENT
SOME TIME AT SOME OF THE OTHER
HOMES AS WELL.
SO TO LAY OUT WHAT WE'RE GOING
TO PRESENT WE HAD ACTUALLY THREE
KEY ISSUES IN THE AUDIT REPORT.
THE FIRST ISSUE IS RELATED TO
THE AGREE --
THE HOMES ENTERED INTO WITH
VARIOUS ENTITIES AND CONCERNS WE
HAD WITH THOSE LEASES THE LENGTH
OF THE LACES SOME OF THE TERMS
IN THE LEASES.
THE SECOND ISSUE IS RELATED TO
ACTUALLY COLLECTING REVENUE
COLLECTING --
THE THE LEASE REVENUE OTHER
TYPES OF PAYMENTS EMPLOYEE
HOUSING PAYMENTS THOSE SORTS OF
THINGS WE HAD SOME CONCERNS WITH
RESPECT TO THAT.
AND THE LAST ISSUE WAS --
AND AMANDA WILL COVER THE THE
THIRD ISSUE RELATED --
TO THE STATE REALLY BEING PUT AT
RISK IN SOME CIRCUMSTANCES WHERE
THERE ARE EVENTS OCCURRING
PARTICULARLY AT THE I DON'T FEEL
FACILITY WHERE THE STATE DIDN'T
HAVE A WRITTEN AGREEMENT AND
REALLY DIDN'T HAVE ANYTHING THAT
WOULD PROTECT.
THE STATE AGAINST ANY POTENTIAL
LIABILITY PROPERTY DAMAGE THOSE
SORTS OF THINGS NOW WE DON'T
NECESSARILY SAY IN THE REPORT
THAT THESE AREN'T EVENTS THAT
WERE BENEFICIAL TO VETERANS.
OUR CONCERN IS REALLY MAKING
SURE THAT THE STATE IS PROPERLY
NEGOTIATING WITH A PARTICULAR
ENTITIES ENTER ENTER IT TO THE
APPROPRIATE TYPES OF AGREEMENTS --
TO PROTECT THE STATE ASSURE THAT
THE STATE GETS --
YOU KNOW THE ASSOCIATED VALUE
BECAUSE ULTIMATELY THAT MONEY
GOES INTO THE HOMES AND AGAIN IS
FOR THE BENEFIT OF THE VETERANS
EITHER IN THE GENERAL FUND TO
BENEFIT THE HOMES IN GENERAL OR
AT A SPECIFIC HOME LIKE YOU
DON'T BILL WHERE IT WOULD GO
INTO THE MORALE FUND.
THAT DIRECTLY BENEFITS --
VETERANS.
SO LET ME START WITH THE FIRST
ISSUE -- AND
THIS IS RELATED TO AGREEMENTS
THAT CALVET INDEED YES ENTERED
INTO THE LEASES --
AND I AS OUR TITLE SAYS CALVET
INDEED YES ESTABLISHED
AGREEMENTS THAT WERE OF
QUESTIONABLE BENEFIT AS YOU SAID
MISTER CHAIRMAN AND AND I THINK
MS OR ONE SPOKE ABOUT IT IS.
DTS HAS THE AUTHORITY TO THE
PERMISSION OF CAL THAT
PARTICULAR RELATED TO TO
PROPERTIES AT THE PARTICULAR
HOMES BUT WHAT THE STATE LAW
SPECIFICALLY REQUIRES IS THAT.
THE DECISION HAS TO BE BASED ON
IS THIS LEAST IN THE BEST
INTEREST OF THE HOME.
AND WHEN WE WERE LOOKING AT THE
LEASES AND WE WERE ASKING
QUESTIONS OF BOTH CALVET INDEED
YES.
NEITHER OF THEM COULD REALLY
SHOW US ANY SPECIFIC CRITERIA
THAT THEY USED TO DETERMINE THAT
THIS PARTICULAR LEASE --
THAT WE WERE LOOKING AT WAS IN
THE BEST INTEREST OF THE HOME.
SO WE HAD CONCERNS WITH RESPECT
TO THAT.
NOW ONE THING THAT YOU'LL HEAR A
THEME THROUGH PART OF MY
PRESENTATION CERTAINLY AMANDA'S
IS -- THE
THE VETERANS AFFAIRS SECRETARY
AND THE DEPARTMENT OF VETERANS
AFFAIRS WAS VERY RESPONSIVE VERY
EASY TO WORK WITH DURING THE
COURSE OF THIS AUDIT.
THAT IS NOT TYPICAL WHEN WE WHEN
WE ARE OUT CONDUCTING AUDITS SO
THEY ACTUALLY TOOK SOME
CORRECTIVE ACTION.
WHILE WE WERE CONDUCTING THE
WORK AS WE WOULD BRING ISSUES TO
THEIR ATTENTION THEY WOULD TRY
TO ADDRESS SOME OF THOSE ISSUES
IMMEDIATELY.
AND WITH RESPECT --
TO THE THE DISCUSSION I JUST HAD
AS FAR AS THE BEST INTERESTS OF
THE HOME WE WERE STILL
CONDUCTING ON IT WORK WE DIDN'T
ISSUE THIS AUDIT UNTIL JANUARY
OF THIS YEAR.
BUT CALVET ACTUALLY DISTRIBUTED
A MEMO TO ALL THEIR HOME
ADMINISTRATORS IN DECEMBER OF
TWENTY EIGHTEEN TO PROVIDE
GUIDANCE. TO THE ADMINISTRATORS
ABOUT WHAT THEY FELT AS THE
APPROPRIATE CRITERIA FOR BEST
INTEREST OF THE HOME.
WE STILL HAVE A RECOMMENDATION
RELATED TO THAT IT'S TO WORK
WITH THE GS SINCE TGS ULTIMATELY
APPROVES LEASES.
THEY NEED TO AGREE ON WHAT THAT
CRITERIA SHOULD BE SO
ESSENTIALLY CAL THAT HAS TAKEN A
STEP IN THE RIGHT DIRECTION WE
JUST WANT TO SEE FURTHER.
DISCUSSIONS AND FINALIZING THAT
PARTICULAR WORK --
WE ALSO SAW A SECOND ISSUE
RELATED TO LEASES IS THE TERMS
OF THE LEASES.
GENERALLY A STATE LAW REQUIRES A
LEASE TO NOT EXCEED FIVE YEARS --
BUT MANY OF THESE LEASES WERE
FOR LONGER PERIODS OF TIME
THIRTY FORTY FIFTY YEARS --
IN SOME INSTANCES ALSO WHEN WE
WERE LOOKING AT THE LANGUAGE IN
THE LEASES WE HAVE ATTORNEYS --
WORK WITH ALL OF OUR STAFF.
THE LEASE TERMS DID NOT ALLOW
THE STATE TO TERMINATE THE LEASE
ON AT ITS DISCRETION AND
TYPICALLY THAT'S WHAT YOU HAVE
IN A CONTRACT TO RELEASE THE
STATE SHOULD HAVE THE ABILITY TO
SAY WE WANT TO TERMINATE THIS
LEASE WE WANT TO GET OUT OF IT.
THE TERMINATION LANGUAGE THAT WE
SIGNED THE LEASE IS REALLY ONLY
COULD HAPPEN.
IF THERE WAS A BREACH OF THE
LEASE TERMS SO WE FELT THAT THE
THE DEPARTMENT GENERAL SERVICES
AND CAL THAT NEED TO TAKE A LOOK
AT SOME OF THOSE TERMS IN THOSE
LEASES. TO REALLY STRENGTHEN THE
STATE'S POSITION WITH RESPECT TO
THAT.
WE IDENTIFIED ONE LEAST THAT HAD
NOT BEEN APPROVED BY DE GS.
AND BASED ON STATE LAW THAT
LEASES ESSENTIALLY VOID OR
VOIDABLE SO WE HAVEA
RECOMMENDATION TO DG ASKING CAL
THAT. TO WORK THIS IS A LEASE
RELATED TO THE SWIMMING POOL
WITH THE TOWN --
AND SO WE NEED THE STATE NEEDS
TO CAL THAT DID YES NEEDS TO
WORK WITH THE TOWN TO DETERMINE
WHETHER OR NOT THEY DO WANT TO
ENTER INTO A LEASE CONTINUED UP
THE POLE FUNCTIONING BECAUSE
IT'S A BENEFIT. TO TO THE
COMMUNITY --
BUT THERE NEEDS TO THAT IS --
THE THE TERMS ARE DISCUSSED
AGREED UPON AND ESSENTIALLY
APPROVED BY TGS SO WHERE
RECOMMENDATION RELATED TO THAT.
NOW THE OTHER LEASES THAT WE
LOOK AT WERE HOUSING --
AND MANY STATE AGENCIES PROVIDE
EMPLOYEE HOUSING.
AND WHEN WE LOOKED AT THESE
LEASES FOR EMPLOYEES --
TO TO HAVE HOUSING ON ON THERE
YOU DON'T FEEL CAMPUS IN
PARTICULAR --
THAT AGAIN THEY LACKED THOSE KEY
TERMS TO PROTECT THE STATE'S
INTEREST THEY HAD THE DEVELOPED
REQUIREMENTS FOR LEASES BUT THEY
DIDN'T INCLUDE CERTAIN TERMS AND
CONDITIONS.
IN ALL OF THE AGREEMENTS WE SAW
INCONSISTENCIES BETWEEN THE
VARIOUS LEASES WITH --
INDIVIDUAL EMPLOYEES --
THEY ALSO DIDN'T PROTECT THE
STATE AGAINST LIABILITY --
AND SHIELDING THE STATE SO AGAIN
SIMILAR TO THE LEASES --
FOR SOME OF THE OTHER --
ENTITIES LIKE THE MUSEUM THE
THEATER AT CETERA THESE EMPLOYEE
LEASES THE TERMS DID NOT HAVE.
THE APPROPRIATE LANGUAGE TO
REALLY PROTECT THE STATE SO WE
FELT THAT CAL THAT NEEDED TO DO
SOMETHING ABOUT THAT AGAIN THIS
WAS EVEN PRIOR TO THE AUDIT.
BECAUSE THE AGENCY WANTS THE WAS
APPROVED REALLY KIND OF JUMPED
ON PARTICULAR ISSUES AND WANTED
TO HAVE AN UNDERSTANDING SO AS
WE SAY IN THE REPORT --
AS EARLY AS MAY OF TWENTY
EIGHTEEN CALVET ISSUED A
DIRECTIVE TO THE HOME
ADMINISTRATOR STATE SAYING THAT
HEADQUARTERS WAS GOING TO TAKE
CONTROL.
OF APPROVING EMPLOYEE HOUSING
LEASES --
BECAUSE THERE WAS SO MUCH
INCONSISTENCY HUG HEADQUARTERS
FELT THEY WANTED TO TAKE THAT
RESPONSIBILITY AT HEADQUARTERS
SO THEY COULD CONTROL IT --
AND BE IN CHARGE OF THAT THEY
ALSO.
ADOPTED A POLICY IN NOVEMBER OF
TWENTY EIGHTEEN AND AGAIN THIS
IS DISCUSSED IN THE REPORT.
THAT CAL VETS POLICY WITH
RESPECT EMPLOYEE HOUSING WILL
MIRROR WHAT CAL HR OUR STATE
AGENCY HAS RESPONSIBILITY.
FOR HOUSING ARRANGEMENTS AND AND
UNDERSTANDING HOW THOSE
ARRANGEMENTS SHOULD BE PUT
TOGETHER AND WHAT THE STATE
AGENCY SHOULD BE DOING --
CAL THAT AB ESSENTIALLY ADOPTED
KELLY CHARGE POLICY SO AGAIN
TAKING SOME OF CORRECTIVE ACTION
DURING THE COURSE OF THE AUDIT
WITH THAT WHILE WE WERE
CONDUCTING IT.
AND THEN THE LAST ISSUE IN THIS
PARTICULAR AREA IS REALLY WE
FELT THAT CALVET NEEDED STRONGER
POLICIES AND PROCEDURES THEY
REALLY DIDN'T HAVE ANY STRUCTURE.
AS FAR AS GUIDANCE FOR THE
INDIVIDUAL --
ADMINISTER YOURSELF TO VARIOUS
HOMES SO WE HAVE SOME
RECOMMENDATIONS RELATED TO THAT
AND AGAIN CAL THAT IS WHAT WAS
WORKING ON AND PUBLISH SOME
POLICIES IN DECEMBER OF EIGHTEEN
SO OUR RECOMMENDATIONS IN THE
REPORT ARE YOU'VE GOTTEN A GOOD
START ON THIS.
YOU NEED TO CONTINUE --
TO FINALIZE YOUR POLICIES BUT
THEN ALL ISMS TO MAKE SURE THAT
THOSE POLICIES ARE BEING
ENFORCED.
SO THAT WAS OUR FIRST SECTION --
UP THE AUDIT REPORT AND I KNOW
ASSEMBLY MEMBER IRWIN HAS A BILL
RELATED TO THE FIVE YEAR WINDOW --
AS FAR AS THE STATURE BECAUSE WE
MADE A LEGISLATIVE
RECOMMENDATION AND I UNDERSTAND --
AB -- TWO
FORTY BY MS OR WHEN IS IS
ADDRESSING THAT PARTICULAR
SITUATION.
NOW THE SECOND ISSUE THAT I'M
GOING TO GO OVER IS RELATED TO
COLLECTION OF RENTAL.
FEES AND PAYMENTS SO WHEN WE
TALKED TO DJ YES WE ASK TGS HOW
DID YOU DETERMINE WHAT THE
RENTAL RATE WOULD BE FOR THESE
PARTICULAR FACILITIES THEIR
REQUIRED.
BY STATE LAW TO MAKE SURE A
RENTAL RATES ARE AT MARKET VALUE --
INDEED YES HAD A VERY DIFFICULT
TIME IN SHOWING US EVIDENCE THAT
THEY REALLY DETERMINED THAT THE
RENTS THAT WERE BEING CHARGED.
TO VARIOUS FACILITIES WERE
REALLY AT MARKET RATE --
SO AGAIN WE HAD A RECOMMENDATION --
TO DEPARTMENT GENERAL SERVICES
THERE ARE ALSO PROVISIONS THAT
ALLOW AN ENTITY IF AN ENTITY
PROVIDE SERVICES OR I'M SOME
OTHER IMPROVEMENTS TO A PROPERTY
THAT SHOULD BE REFLECTED IN THE
RENTAL RATES SO THE RENTAL RATE
MAKE.
THE MARKET RATE MAY BE A CERTAIN
AMOUNT BUT IT'S REDUCED BY DID
YES TO ACKNOWLEDGE THAT THE
ENTITY THAT'S RENTING THAT
PARTICULAR FACILITY.
FROM CAL THAT OR A PARTICULAR
THAT'S ACKNOWLEDGED AS PART OF
THE CALCULATION BUT AGAIN WE
DIDN'T SEE ANY EVIDENCE OF THAT
SO WE REALLY FELT THE TGS NEEDS
TO DO A BETTER JOB.
OF MAKING SURE THAT IT CAN
DEFEND --
WHAT RATES?
THEY ARE DETERMINING ARE THE
APPROPRIATE RATES FOR THESE
PARTICULAR FACILITIES --
THE MISTER CHAIRMAN YOU TALKED A
LITTLE BIT ABOUT LOOKING AT
PROCEEDS SO --
STATE LAW REQUIRES THAT PROCEEDS
FROM LEASES A VETERANS HOMES BE
DEPOSITED INTO THE GENERAL FUND
AND THEN THAT AUGMENT THAT IS IS
A IT'S DONE BY CAL VET BUT THEN
CAL THAT HAS RESPONSIBILITY TO
NOTIFY THE DEPARTMENT FINANCE
AND CERTAINLY THE LEGISLATURE
BECAUSE THE WAY THE STATE LAW
READS.
RIGHT NOW IS ANY FUNDS COLLECTED
FROM THESE LEASES GOING TO THE
GENERAL FUND BUT THAT SHOULD --
ALSO HE'S RESULT IN AN
AUGMENTATION --
TO THE APPROPRIATION FOR CALVET.
BUT THAT'S THE PART THAT WASN'T
HAPPENING CALVET WAS COLLECTING
THE FUNDS THEY COLLECT ABOUT.
THREE HUNDRED NINETY THOUSAND
TGS COLLECTED --
A LITTLE OVER A HUNDRED EIGHTEEN
THOUSAND A TGS INAPPROPRIATELY
DEPOSIT THOSE FUNDS IN THE WRONG
ACCOUNT THEY DID NOT DEPOSIT
THEM IN THE GENERAL FUND SO WE
HAVE A RECOMMENDATION RELATED TO
THAT.
THAT MONEY SHOULD HAVE BEEN
APPROPRIATED TO THE GENERAL FUND
AND IF CAL THAT HAD PROPERLY
NOTIFIED FINANCE IN THE
LEGISLATURE THAN THE LEGISLATURE
COULD HAVE TAKEN ACTION IN AN
AUGMENTED THE APPROPRIATION.
THAT DIDN'T HAPPEN.
SO WE HAVE OBVIOUSLY
RECOMMENDATIONS RELATED TO THAT
NOW THERE ARE SOME ENTITIES ON A
A HOME -- AT
K. AT A YOUNG FILL FOR EXAMPLE
THERE'S A CONVENIENCE STORE
THERE'S A GOLF COURSE THE WAY
THE LEASES WORK FOR THOSE
PARTICULAR ENTITIES --
THERE'S A PERCENTAGE OF THEIR
SALES ESSENTIALLY THE
CONVENIENCE STORE OR THE GOLF
COURSE THE PERCENTAGE OF SALES
SHOULD BE GOING TO CAL THAT --
WHAT WE FOUND WHEN WE STARTED
LOOKING AT THE RECEIPTS AND WHAT
CAL THAT WAS DOING TO MONITOR TO
MAKE SURE IT WAS CAPTURING A
RECEIVING ALL THE REVENUE IT WAS
DO?
WE FOUND IT WAS SHORT --
THOSE TWO ENTITIES HAD NOT.
PAID OVER OVER A HUNDRED
THOUSAND DOLLARS IN FEES TO
BASED ON THE PERCENTAGE TO CAL
THAT AGAIN THESE FUNDS WOULD GO
INTO THE MORALE FUN SO AGAIN
THIS IS A HIT ON THE VETERANS.
SO CALVET NEEDS TO DO A BETTER
JOB OF MAKING SURE THAT THEY'RE
MONITORING --
WHAT THEY ARE ENTITLED TO
RECEIVE FROM ENTITIES LIKE THE
CONVENIENCE STORE OR THE GOLF
COURSE SO WE HAVE
RECOMMENDATIONS RELATED TO THAT?
AND THEN THE LAST PIECE RELATED
TO FEES IS TIED TO EMPLOYEE
HOUSING.
AS I SAID THEY THAT CAL THAT AT
THAT POINT HAD NOT.
DEVELOPED THE POLICY THAT WAS
SIMILAR TO CALLIE CHARGE POLICY
WHAT CAL HR REQUIRES STATE
AGENCIES THAT PROVIDE EMPLOYEE
HOUSING TO DO.
IS HAVE THOSE AGENCIES MAKE SURE
THEY'RE RENTING THE FACILITIES
THE HOMES AT FAIR MARKET --
AND TO AT LEAST REVIEW ALL OF
THE THE EMPLOYEE HOUSING LEASES
EVERY SURE THERE AT MARKET WHAT
CAL HR SUGGESTS IS DO 20% OF THE
ASSESSMENTS.
AND WHEN YOU HIT A FIVE YEAR
WINDOW YOU'VE HAD EVERY SINGLE
HOME -- CAL
THAT WASN'T DOING THAT SO WHEN
WE LOOKED AT THE EMPLOYEE
HOUSING RATES AND COMPARE IT TO
FAIR MARKET ON AVERAGE THEY WERE
ALMOST A 100% BELOW.
MARKET RATE SO THEY WERE
SIGNIFICANTLY SHORT WE ACT WE
CALCULATED ABOUT A HUNDRED FIFTY
TWO THOUSAND DOLLARS JUST FOR
FIFTEEN HOMES THERE FIFTEEN
HOMES THAT WERE OCCUPIED.
BY EMPLOYEES WHERE THIS THE CAL
THAT HAD NOT BEEN RECEIVING --
THE APPROPRIATE AMOUNT OF RENT
IF IT WAS AT MARKET RATES.
NOW WHAT CALVET CAN DO --
THERE IS A LIMIT THEY CAN'T ALL
OF A SUDDEN INCREASE ALL OF
THOSE RENTS A 100%.
THERE ARE.
LIMITS AS TO WHAT IS AN AGENCY
CAN DO IF THEY WANT TO INCREASE
RENT THEY CAN ONLY INCREASE AT
25%.
A YEAR -- SO
THERE THERE WILL BE SOME TIME
FOR THEM TO CATCH UP NOW IF ANY
OF THOSE HOMES ARE VACATED BY AN
EMPLOYEE IN A NEW PLAN PLOY HE
COMES IN AND THEN THEY CAN
RECTIFY AND GET TO MARKET RATE --
BUT AGAIN THEY THEY WERE AS
HOMES AS FAR AS THE AMOUNT THEY
WERE --
REQUIRING EMPLOYEES TO PAY.
THE OTHER ISSUE THAT WE
IDENTIFIED RELATED TO THAT IS
THAT'S A FRINGE BENEFIT SO THOSE
EMPTY THE THE DEPARTMENT SHOULD
BE REPORTING THAT INFORMATION TO
THE IRS BECAUSE YOU PAY TAXES ON
THAT -- SO
WE HAD A VARIETY OF
RECOMMENDATIONS --
RELATED TO THIS PARTICULAR
SECTION OF THE REPORT REALLY
TALKING ABOUT MAKING SURE THAT.
SEEKING THE AUGMENTATION NOW
WHAT YOU WILL HEAR AND WE
DISCUSSED IN THE REPORT WE TALK
TO THE DEPARTMENTS ABOUT
PARTICULARLY CAL THAT IS.
THEIR THEIR PERSPECTIVE ON THE
STATUTE THAT REQUIRES THEM TO
COME TO THE LEGISLATURE AND
FINANCE TO GET AN AUGMENTATION
THEY BELIEVE THAT'S OUT OBSOLETE
AND OUTDATED AND PERHAPS IT IS.
BUT IT'S STILL ON THE BOOKS SO
THAT'S WHAT WE SAID TO THEM IS
IF YOU FEEL THAT THE STATUTE --
IS THE APPROPRIATE STATUTE AND
SEEK THE AUGMENTATION IF YOU
FEEL IT IT IS OUTDATED AND
OBSOLETE THEN WE'VE GOT TO GET A
MODIFICATION TO THAT STATUTE GET
IT EITHER OFF THE YOU KNOW OFF
THE BOOKS OR MODIFIED IN AN
APPROPRIATE MANNER --
SO IT REFLECTS REALITY OF WHAT'S
HAPPENING.
TODAY.
AND THEN THE OTHER ISSUES REALLY
ARE JUST MAKING SURE YOU'RE
TRACKING COMPLIANCE WITH
PAYMENTS WITH RESPECT TO LEASES --
ANNUALLY REVIEWING THOSE RENTAL
RATES FOR EMPLOYEE HOUSING AND
THEN FOR RECOMMENDATIONS TO TGS
RELATED TO THEIR DOCUMENTATION
THEIR DECISION MAKING WITH
RESPECT TO WHAT THEY'RE CHARGING
FOR RENTAL RATES WHEN THEY LEASE
PROPERTIES --
MAKING SURE THAT THEY'VE
DOCUMENTED IF THEY MAKE A
DECISION TO REDUCE THE RENTAL
AMOUNT BASED ON IMPROVEMENTS OR
OTHER SERVICES THAT ENTITIES
PROVIDING TO THE STATE LET'S
MAKE SURE ALL OF THAT IS
PROPERLY DOCUMENTED IN THE IN
THE FILES SO THAT.
WE HAVE THAT INFORMATION --
WITH THAT I'M GONNA HANDED OVER
TO MS MELON AND SHE'LL TALK
ABOUT THE THE THE THIRD --
ISSUE WE IDENTIFIED IN THE TO
ANSWER YOUR QUESTIONS THANK YOU
THANK YOU.
HI GOOD MORNING MISTER CHAIR
MEMBERS OF THE COMMITTEES MY
NAME IS AMANDA MELON AND AS A
STATE AUDITOR SAID I WAS A
SUPERVISOR IN THIS PARTICULAR
AUDIT.
AND I'LL COVER THE LAST KEEP
FINDING THAT WE MADE DURING OUR
AUDIT.
AND THAT WAS THAT CALVET HAD A
VERY DISTANT APPROACH TO
MANAGING THE USES OF THE
PROPERTIES.
AND THAT RESULTED IN USES THAT
EXPOSE THE STATE AND THE HOME TO
RISK OF LIABILITY.
AND IT BECAUSE CALVET TO MISS AN
OPPORTUNITY TO CLICK FUNDING
THAT COULD HAVE GONE BACK TO THE
HOME TO BENEFIT THE VETERAN
RESIDENTS.
SO FOR STARTERS THERE WERE FOUR
ENTITIES THAT WERE OCCUPYING
SPACE AT THE YOUNG BILL HOME.
AND CAL THE HEADQUARTERS WAS
UNAWARE THAT THEY WERE THERE.
UNTIL THEY BEGAN PREPARING FOR
AUDIT. ONE OF THOSE ENTITIES AS
NAPA VALLEY COLLEGE IN THE
OCCUPIED A SIZEABLE AMOUNT OF
SPACE IN A FORMER I SEE YOU IN
THE HOLDER IN BUILDING IN A
HOSPITAL THERE.
AND WE FOUND EVIDENCE THAT THEY
HAD OCCUPIED SPACE AT THE HOME
FOR THIRTY YEARS.
SO IT WAS SURPRISING TO US THAT
CALVET HEADQUARTERS IS UNAWARE
THAT THEY WERE THERE.
ON TOP OF THAT NONE OF THOSE FOR
ENTITIES HAD WRITTEN AGREEMENTS
FOR THE USE OF THEIR SPACE.
SO THAT EXPOSE THE STATE TO
SIGNIFICANT RISK OF LIABILITY IN
THE EVENT THAT SOMETHING
HAPPENED IN ONE OF THOSE SPACES.
AND NONE OF THOSE ENTITIES WERE
PAYING ANY RENT FOR THE SPACE
THEY WERE OCCUPYING.
AND SO CAL THAT HAD MISSED A
REAL OPPORTUNITY TO COLLECT
ADDITIONAL FUNDING THAT COULD
HAVE CONTRIBUTED TO THE
OPERATION OF THE HOME TO THE
BENEFIT OF THE VETERAN RESIDENTS.
SO WE MADE SOME RECOMMENDATIONS
TO ON THIS THAT THEY REVIEW
THOSE FOR ENTITIES AND EVALUATED
DETERMINE WHETHER THEIR PRESENCE.
IS IN THE BEST INTERESTS OF THE
HOME AND IF THEY ARE WORK WITH
TGS TO DEVELOP LEASE AGREEMENTS
FOR THEM IF THEY'RE NOT THEY
SHOULD HAVE PICKED THEM.
AND SO CALVET STARTED WORKING ON
THIS DURING OUR AUDIT NOW THEY
REQUESTED AT LEAST FROM TGS FOR
ONE OF THE ENTITIES A NAPA
COUNTY HEALTH AND HUMAN SERVICES.
AND IS REVIEWING THE OTHERS.
THERE WERE OTHER USES OF THE
PROPERTIES THAT CAL THAT WASN'T
AWARE OF AS WELL.
CALVET FOUND NOW IN OCTOBER.
TWO THOUSAND SIXTEEN THE YOUNG
BILL HOME HAD BEEN PERMITTING
SHORT TERM USES.
OF THE PROPERTY --
BY THIRD PARTIES AND THAT THE
HOME HAD NOT ALWAYS REQUIRED
WRITTEN AGREEMENTS AGAIN
EXPOSURE TO RISK.
AND HAD NOT ALWAYS COLLECTED
FEES FOR THOSE USES AGAIN FOR
GOING FUNDING.
SO WE EXPECTED THAT WHEN CAL THE
HEADQUARTERS FOUND OUT ABOUT
THESE USES THAT THEY WOULD TAKE
APPROPRIATE STEPS TO ADDRESS
THOSE ISSUES BUT IT DID NOT.
IT DEVELOPED A WRITTEN AGREEMENT
BUT IT ONLY REQUIRED THEM
SOMETIMES IT DIDN'T REQUIRE
EVERY THIRD PARTY THEY USE A
PROPERTY TO SIGN IT.
IT CHARGE SOME FEES BUT IT
DIDN'T CHARGE THEM ALL OF THE
TIME SOME PAID A FEE SOME DID
NOT AND EVEN THOSE THAT DID PAY
FEES THEY PAID INCONSISTENT FEES
FOR THE SAME USE OF THE PROPERTY.
BUT MOST TROUBLING IS THAT
SIMILAR TO WHAT THE STATE
AUDITOR SAID ABOUT THE LEASES OF
THE PROPERTY IS THAT CALVET HAD
NEVER DEFINED WHAT TYPES OF USES
WOULD BE CONSISTENT WITH THE
BEST INTERESTS OF THE HOME.
AND IT PERMITTED ONE USE OF THE
VETERANS HOME PROPERTY THAT WE
FOUND WERE CONTRARY TO THOSE
INTERESTS.
SO CALVET PERMITTED A FILM CREW
TO GO INTO THE WEST LOS ANGELES
HOME WHICH IS LARGELY A SKILLED
NURSING FACILITY AT THE HOSPITAL.
THAT FILM CREW WENT IN THERE AND
FILL IN THE TELEVISION SHOW.
CLEARLY THAT IS SOMETHING THAT
COULD BE JUST THERE AND IT COULD
RISK VIOLATING THEIR PRIVACY SO
WHY CALVET EVER PERMITTED THAT
TO HAPPEN IS UNCLEAR.
SO WE MADE SOME RECOMMENDATIONS
TO THE LEGISLATURE ABOUT THIS
PARTICULAR ISSUE WE RECOMMENDED
THAT THE LEGISLATURE.
REQUIRE CALVET TO INCORPORATE
INTO REGULATION SPECIFIC
CRITERIA ABOUT WHAT TYPES OF
THESE USES CONSISTENT WITH THE
BEST INTERESTS OF VETERANS IN
THE HOME.
THAT IT DENY ANY USES THAT ARE
THAT DON'T MEET THAT CRITERIA.
THAT IT ESTABLISH A FEE SCHEDULE
FOR THOSE USES --
AND THEN IT REQUIRE WRITTEN
AGREEMENTS THAT PROTECT THE
INTERESTS OF THE STATE.
SO THAT SUMS UP OUR KEY FINDINGS
THAT WE MADE IN OUR AUDIT BUT
WE'RE HAPPY TO ANSWER ANY
QUESTIONS THAT YOU HAVE.
THANK YOU THANK YOU FOR YOUR
PRESENTATION AND KINDA LAYING.
THE GROUND WORK IN THE FRAMEWORK
FOR WHICH WE ARE WE ARE GOING
OPERATE FROM --
OBVIOUSLY THERE'S A LOT OF
ISSUES IDENTIFIED BUT I THINK
WHAT I'LL DO IS I'LL DEFER --
TO MY COLLEAGUES AND I HAVE A
LIST OF QUESTIONS AS WELL BUT
LET ME AT THIS TIME WE ASK --
CENTER ARCHULETA FEW WANTS TO
BEGIN -- HIS
LINE OF QUESTIONING.
THANK YOU THANK YOU SO MUCH FOR
YOUR PRESENTATION --
TRULY INFORMATIVE THANK YOU --
AND TROUBLING.
NO DOUBT.
OF IT IN YOUR REPORT YOU CALVET
FAILED TO ENSURE THAT SIX
HUNDRED AND TEN THOUSAND DOLLARS
WAS APPROPRIATIONS HOW DO WE
REACH THAT NUMBER.
IN IS THAT NUMBER GROWING AS WE
SIT HERE.
AND IF WE DON'T TAKE ACTION
IMMEDIATELY WILL IT GROW AND HOW
CAN WE STOP.
THANK YOU SENATOR --
SOME OF THE MONEY ACTUALLY HAS
BEEN COLLECTED BY THE STATE SO
WHEN I WAS REFERRING TO THE
CALVET COLLECTED THREE HUNDRED
NINETY ONE THOUSAND DOLLARS.
DEPOSITED IN THE GENERAL FUND
BUT DIDN'T NOTIFY FINANCE FOR
THE LEGISLATURE'S THAT MONEY HAS
BEEN COLLECTED BY CAL THAT ALSO
THE DEPARTMENT OF GENERAL
SERVICES COLLECTED ABOUT A
HUNDRED AND EIGHTEEN THOUSAND
DOLLARS RELATED TO SOME OTHER
LEASES --
THAT -- WE
BELIEVE NEEDS TO BE ADDRESSED
BECAUSE THAT MONEY WAS COLLECTED
HOWEVER DGSE TO POT AND NOT
DEPOSITED IN THE GENERAL FUND
THEY DEPOSITED IT IN A DIFFERENT
FUND SO THAT NEEDS TO BE
RECTIFIED.
AND THEN THE LAST PIECE GETTING
UP TO THE HUNDRED TO SIX HUNDRED
TEN IS ABOUT A HUNDRED AND ONE
THOUSAND DOLLARS.
AND THAT IS FUNDS THAT I WAS
REFERRING TO WHEN I TALKED ABOUT
THE CONVENIENCE STORE AND THE
GOLF COURSE OF THOSE ENTITIES
HAD NOT PAID THE AMOUNTS DUE TO
THE STATE SO THAT ONE HUNDRED
THOUSAND DOLLARS.
AGAIN AS IN A RECOMMENDATION
WHERE WE BELIEVE CAL THAT NEEDS
TO GET THAT GET THOSE FUNDS FROM
THOSE TWO ENTITIES SO THERE'S A
PIECE THE STATE IS ALREADY
RECEIVEDAND THEN THERE'S A
PIECE THAT THE STATE.
NEEDS TO CONTINUE TO PURSUE --
FROM BOTH OF THOSE TWO ENTITIES
AT YON PHIL.
AND LET ME ASK YOU ONE OTHER
THING ABOUT THE BOY APPLE LEASES
IN THOSE WE SAT DOWN WITH THE
THE ATTORNEYS AND ALSO MAY BE
BROUGHT IN THE ENTITIES TO SEE
IF WE COULD RE NEGOTIATE THEM.
BECAUSE I WOULD THINK THAT THOSE
IN THE OTHER SIDE WE'VE BEEN
USING THE FACILITIES YEAR AFTER
YEAR FOR DECADES --
WOULD BE WILLING TO SIT AT THE
TABLE AND RE NEGOTIATE AND
OBVIOUSLY SOME OF THESE LEASES
SHOULD BE COMPLETELY AVOIDED OUT
IN REACHED RENEGOTIATED IF THEY
WISH.
SO WHETHER CALVET CAN GET OUT OF
THE LEAST DEPENDS ON THE LEASE
SO ONE OF THEM IS THE POLICE
THAT ONE'S VOID SO THAT WHEN
THEY CAN GET OUT OF THERE ARE
OTHERS THAT CONTAIN TERMINATION
CLAUSES THAT ALLOW THEM TO
TERMINATE AT WILL.
WITH NOTICE TO THE TENANT BUT
THERE ARE THREE LEASES THAT ARE --
FAR BEYOND THE FIVE YEAR TERM
THEY DO NOT CONTAIN TERMINATION
CLAUSE THAT ALLOW THE STATE TO
TERMINATE FOR WHATEVER REASON
THE WANT TO STAY AUTHOR MENTION
WHERE THE HOUSE BECAUSE THE
TENANT HAS TO BE IN BREACH OF
THEIR AGREEMENT.
AND THOSE ARE THE ONES THAT ARE
GONNA BE TRICKY THAT'S THE
MUSEUM THE THEATER.
AND THE GOLF COURSE SO ONE OF
OUR RECOMMENDATIONS ADDRESSES
THIS IT SAYS TO CALVIN DDS THAT
THEY NEED TO WORK TOGETHER TO
TRY TO RENEGOTIATE ANY LEASES
THAT ARE NOT CONSISTENT.
WITH THE BEST INTEREST OF THE
HOME OR THE VIOLATE STATE LAW SO
THE EXTENT THAT WERE ABLE TO GET
OF THOSE WILL BE TOTALLY UP TO
WHATEVER THEY'RE ABLE TO
NEGOTIATE WITH THE TENANTS.
IN MY LAST QUESTION WAS CHAIR IS
IN REFERENCE TO THE EMPLOYEE
HOUSING --
RAISING THOSE RENTS AT 25% PER
YEAR HAS ANYONE SAT DOWN WITH
SOME THE TENANTS --
SLASH EMPLOYEES TO KNOW THAT
IT'S COMING AT THE THIS MAY
HAPPEN.
YES MY UNDERSTANDING OF HOW THAT
IS THAT THEY HAVE ALREADY
STARTED THESE --
THEY'VE NOTICED ALL OF THE
EMPLOYEES THAT THEY'RE GOING TO
RAISE THE RENT NAY INTEND TO
RAISE EVERYONE'S RENT BY 25%
[inaudible]
THANK YOU.
WE JUST CONTINUE ON THAT LINE OF
QUESTIONING THOSE ONE OF MY
QUESTIONS AS WELL.
IF WE INCREASED 25% TO HELP
BRING IT BACK UP TO MARKET RATE
VALUES HOW MANY YEARS DO WE NEED
TO DO THIS TO GET TO MARKET RATE.
SO IT DEPENDS ON THE INDIVIDUAL
LEASE SO EACH LEASES VALID FOR A
CERTAIN PERIOD OF TIME --
FOR SOME FOLKS THEY HAVE --
PRIORITY HOUSING IT MEANS THAT
THEY CAN STAND THERE FOR AN
EXTENDED PERIOD OF TIME. FOR
OTHERS THEIR LEASES ONLY LIKE A
YEAR LONG --
WHEN THE HOUSE CHANGES HANDS
TEMAS EN CALVET CAN IMMEDIATELY
CHARGE MARKET RENT SO FOR ANY
HOMES WHERE THE TENANT LEAVES WE
CAN DO THAT AUTOMATICALLY?
IT'S THOSE WHERE THERE'S SOMEONE
IN THE HOUSE RIGHT NOW THAT IT
MIGHT TAKE A FEW YEARS BEFORE WE
CAN GET IT TO MARKET RENT.
AND IF THE GRAVEL ADDITIONAL
QUESTIONS FROM ASSEMBLY WOMAN
MEMBERS.
IT'S JUST A COUPLE OF QUESTIONS
SO -- THESE --
YOU LOOK AT ALL THE HOMES AND
WE'RE REALLY FOCUSING ON YON
PHIL SO IT IF THESE --
POLICIES OR LACK OF POLICIES
ACROSS.
DDS AND VETERAN AFFAIRS --
THAT -- CAL
THAT.
ARE --
ACROSS THE BOARD WHY DID WE WHY
IS IT WHY ARE ALL THESE ISSUES
FOCUSED AT YON PHIL.
THE MAJORITY OF THE LEASES ARE
YON PHIL THERE ONLY TO LEASES
THAT WE REVIEW THAT WERE AT
OTHER HOMES SO THERE'S A SALON
IT FRESNO.
AND A TELECOMMUNICATION FACILITY
TO LIVE IS TO THERE'S AN ATM
THERE AS WELL BUT ALL THE REST
OF THE LEASES ARE AT THE OUT
BILL HOME AND ALL OF THE
EMPLOYEE HOUSING IS AT THE AMPLE
HOME AND WHETHER IT ISSUES WITH
THE OTHER LEASES.
AB SO WE REVIEWED THE
TELECOMMUNICATION FACILITY LEASE
AND WE FOUND THAT.
THE DURATION AT LEAST WAS.
THERE'S AN EXCEPTION FOR OUR
TELECOMMUNICATION FACILITIES IF
THEY CAN BE TEN YEARS LONG AND
LEASES TEN YEARS LONG.
WE ALSO FOUND SOME EVIDENCE THE
DS A CONSIDERED MARKET RENT FOR
THAT FACILITY SO WE DIDN'T
IDENTIFY ANY MAJOR ISSUES WITH
THAT PARTICULAR LEASE.
OKAY AND THEN --
I'M NOT SURE IF THIS IS A
QUESTION FOR YOU OR TGS BUT WITH
THE MUSEUM LEASE AGREEMENT IT
DOESN'T STIPULATE WHAT HAPPENS.
AFTER THE EXPIRATION OF THE
FIFTY TWO AT LEAST IT DOES
SPECIFY IF LEASES TERMINATED.
OF FOR A TERM VIOLATIONS THE
PROPERTY OF REVERTS BACK TO THE
STATE BUT ELSEWHERE IT SAYS THAT --
LEASING MAY TRANSFER THE
PROPERTY WITH THE STATE'S
APPROVAL TO OTHER --
PARTIES CAN YOU CLARIFY WHAT
ACTUALLY WILL HAPPEN TO THE
PROPERTY AFTER FIFTY TWO YEARS
OR DO WE NEED TO ASK TGS FOR
THAT OR IS THERE NO ANSWER I I
THINK THAT'S A QUESTION FOR DTS
[inaudible]
THANK YOU.
I HAVE A COUPLE QUESTIONS AND
THEN WE'LL MOVE TO OTHER MEMBERS --
YOU KNOW MISS HOW.
YOU KNOW THANK YOU FOR FOR
PRESENTING THE THREE KEY AREAS
IT ANY SUCH AGREEMENTS
COLLECTING REVENUE STATE STATE --
LIABILITY --
I'M JUST GONNA CONTINUE FIRST
WITH THE LINE OF QUESTIONING
MISTER WHEN HAD IN TERMS OF LIKE
THE LEASES.
SO WE IDENTIFIED THREE LONG TERM
LEASES ON I'M SORRY YOUR
COLLEAGUE.
I DON'T HAVE THE AGENDA FOR ME.
AMANDA MAILING A MAN MANTA
MILLEN --
YOU IDENTIFIED IN THE GOLF THE
GOLF COURSE FOR INSTANCE THAT --
THERE MIGHT POSSIBLY BE A BREACH
BECAUSE A PERCENTAGE OF THE
CELLS TO NOT GO BACK TO THE
VETERAN SO TO ME THAT'S LAS
REVENUE --
FOR THE MORALE FUND AND WHATEVER
ELSE VETERANS NEED WOULD THAT BE
SOMETHING.
A LEGAL STANDING FOR THE STATE
ACTUALLY RE NEGOTIATE THAT LEASE --
SO LET ME ADD A LITTLE BIT MORE
INFORMATION ABOUT THE GOLF
COURSE PERCENTAGE RENT PAYMENTS
THE GOLF COURSE HAD BEEN MAKING
PERCENTAGE RENT PAYMENTS EVERY
YEAR.
THE REASON WHY CALVET DIDN'T
COLLECT THE FULL AMOUNT OF
PERCENTAGE RENT IS BECAUSE
CALVET HAD NOT.
CALCULATED THE AMOUNT THAT THE
GOLF COURSE ACTUALLY NEEDED TO
PAY. TO DETERMINE THAT THE GOLF
COURSE HAD PAID ENOUGH AND SO IT
WAS REALLY CAL THAT FAULT THAT
THEY WEREN'T COLLECTING THE
TOTAL AMOUNT.
ON THAT --
THEY ARE.
THEY HAVEN'T PAID THE FULL
AMOUNT THAT WAS DUE BUT I THINK
MISTER DAWSON.
WEIGH IN ON WHETHER THERE HI
CHRIS FOR DAWSON --
SEEN -- AS
MISS KNOWN WAS INDICATING THAT
WAS A COLLECTION ISSUE AND WE
DIDN'T NEED WE DIDN'T ANALYZE IT
IN THE SENSE THAT IT WOULD BE A
BREACH I THINK THAT'S A QUESTION
FOR TGS COUNCIL.
CON.
ALL RIGHT WELL THANK YOU --
YOU KNOW YOU HAD MENTIONED ALSO
IN YOUR PRESENTATION.
THE LENGTH.
OF THE THE LEASES YOU KNOW IN A
LOT OF THEM ARE NOT TO EXCEED
FIVE YEARS BUT IN YOUR FINDINGS
DID YOU HOW MANY LEASES ACTUALLY
EXCEEDED FIVE YEARS I KNOW WE'VE
TALKED ABOUT.
YOU KNOW THE SERMON MENTIONED A
FIFTY TWO YEAR LEASE FOR THE
MUSEUM FOR INSTANCE BUT HOW MANY
OF THOSE THE LEASES ACTUALLY
EXCEEDED FIVE YEARS.
SO AS I MENTIONED EARLIER THERE
WERE TWO LEASES THAT EXCEEDED
FIVE YEARS BUT COULD --
SO ONE OF THOSE IS
TELECOMMUNICATIONS FACILITY THE
TEN YEAR LEASE AND THEN THERE'S
A FIRE STATION THAT'S TWENTY
FIVE YEARS.
AND THAT IS PERMITTED UNDER
EXCEPTION THAT ALLOWS --
FACILITIES THAT ARE USED IN
EMERGENCY RESPONSE.
THERE WERE FOUR OTHER LEASES
THAT EXCEEDED FIVE YEARS THAT
DID NOT HAVE SUCH AN EXCEPTION
THOSE ARE THE THREE THAT YOU
MENTIONED THE MUSEUM THE GOLF
COURSE AND THE LINCOLN THEATRE --
BUT THERE IS ALSO A FIRE
TRAINING FACILITY A FIREFIGHTER
TRAINING FACILITY THAT HAS A
TWENTY FIVE YEAR LEASE BUT IS
NOT DOES NOT HAVE AN
AUTHORIZATION TO DO THAT --
AND THAT ONE DOES HAVE A
TERMINATION CLAUSE THOUGH.
THAT ONE ALLOWS THE STATE TO
TERMINATE THE LEASE WITH A
YEAR'S NOTICE.
OKAY.
AND FOR THE LEASES THAT WE'RE
PAYING NO RENT IS --
TERMINATION CLAUSES AND THOSE OR
HE MENTIONED LIKE NAPA.
VALLEY COLLEGE FOR INSTANCE AND
SOME OF THE OTHERS.
RIGHT THEY DON'T HAVE AGREEMENTS --
SO. TO WHAT IF THAT THAT WAS OUR
MAIN CONCERN WAS THAT IN FACT
THEY WERE.
OCCUPYING SPACE OUT THE HOME
WITH NO WRITTEN AGREEMENT WHICH
EXPOSES THE STATE.
TO POSSIBLE LIABILITY AND ALSO
THERE IS THE LOSS OF THE REVENUE
THAT THEY OUGHT TO BE COLLECTED.
TO THE STATE ASSUMES ALL THE
LIABILITY BUT THE SOURCES.
THAT IS CORRECT [inaudible]
OKAY.
LET ME JUST ASK A GENERAL
QUESTION JUST BECAUSE I FEEL
LIKE.
OF THE AUDITOR'S OFFICE IS
LOOKED AT THIS SINCE I KNOW
SINCE TWENTY THIRTEEN FOR
INSTANCE.
AND THEN WE HAD THE ADDITIONAL
ARMOR TO FINANCE NOW LAST YEAR'S
OUT OF THE CAME OUT IN OUR
EARLIER JANUARY.
WHAT PROGRESS HAVE YOU SEEN FROM
THE OLD OUT ITS TO THE NEW WHAT
IT AND WATER AREAS WE SHOULD BE
FOCUSING ON IN TERMS OF MOVING
FORWARD?
AND MR ONE HAS LEGISLATION
YOU'VE --
REFER REFERENCED IT A COUPLE OF
TIMES AS WELL IN TERMS OF MAYBE
NEEDING MORE OVERSIGHT AND
ACCOUNTABILITY.
IN TERMS OF THE CRITERIA IS IN
THE REGULATIONS BUT JUST FROM
TWENTY THIRTEEN TO TO NOW.
WHICH PROBLEMS ARE STILL THE
SAME.
AND IF YOU JUST COMMENT ON THAT
PLACE.
THANK YOU MISTER CHAIR IT IS
SOME OF THE ISSUES RELATED TO
THE AGREEMENTS THE LANGUAGE IN
THE AGREEMENTS OF THE LENGTH OF
THE AGREEMENTS ARE SIMILAR.
CERTAINLY THE ISSUE WE
IDENTIFIED IN THE INVESTIGATIVE
REPORT WE WE PUBLISHED BACK IN
TWENTY THIRTEEN WAS.
DECISIONS WERE BEING MADE AT THE
YOUNG BILL HOME THAT
HEADQUARTERS WASN'T AWARE OF
ONE'S HEAD QUARTERS BECAME AWARE
OF IT THEY CEASE AND DESIST AND
THAT'S WHY THE STATE HAD TO
NEGOTIATE.
AND PAY THE VENDOR --
I'M A LITTLE OVER TWO AND A I
THINK THE DIFFERENCE WE'RE
SEEING TODAY AND THAT'S WHY I
WANTED TO MAKE SURE I I
COMMENTED IN AND MY PRESENTATION
IS.
THE CURRENT ADMINISTRATION --
MEMBER --
HAS REALLY --
IN SOME WAYS TRY TO GET AHEAD OF
THE AUDIT SINCE THE ON IT WAS
APPROVED THEY WERE OUT OF THE
DIFFERENT FACILITIES TRYING TO
UNDERSTAND WHAT ROPERTIES ARE
RELEASING.
HOW MANY LEASES THE WE HAVE ONE
OF THE TERMS OF THOSE LEASES
ETCETERA REALLY TRYING TO
UNDERSTAND THE NATURE OF THE
CONDITIONS OUT OF THE VARIOUS
FACILITIES?
NOW WOULD HAVE BEEN BETTER IF
THEY HAD KNOWN THAT PRIOR TO AN
AUDIT BEING REQUESTED APPROVED --
BUT I ALSO THINK THAT AS I SAID
THERE WERE SOME STEPS THAT AS WE
BROUGHT ISSUES TO THE ATTENTION
OF THE ADMINISTRATION --
THEY JUST TRIED TO RECTIFY SOME
OF THOSE ISSUES LIKE I SAID THEY
DEVELOPED A POLICY IN MAY OF
EIGHTEEN THEIR ADOPTING THE
KELLY CHAR POLICY.
THEY DEVELOPED A POLICY IN
DECEMBER OF EIGHTEEN THAT WAS
DISTRIBUTED TO THE
ADMINISTRATORS --
WITH RESPECT TO MAKING SURE THEY
COME UP WITH CRITERIA.
AS FAR AS IDENTIFYING WHAT WHAT.
BEST INTEREST OF THE HOME MEANS
WHAT KIND OF CRITERIA IN
MINISTRY TO SHOULD BE
CONSIDERING BUT I ALSO SEE A
DIFFERENCE IN THIS PARTICULAR
AUDIT OR RESPONSE TO THIS AUDIT.
WHERE THE ADMINISTRATION IS
SAYING WE WANT TO TAKE
RESPONSIBILITY FOR EMPLOYEE
HOUSING WE ARE GOING TO BE
MAKING DECISIONS AT THE AGENCY
SECRETARY LEVEL THE DEPARTMENT
BUT THE AGENCY SECRETARY OR HIS
DESIGNATE WILL BE INVOLVED IN
SOME OF THESE DECISIONS SO?
I THINK THAT WE'RE SEEING --
PROGRESS WITH RESPECT IN THIS
PARTICULAR ENTITY THAT'S AND
NOTICED RESPECT TO PRIOR
ADMINISTRATIONS BUT I SEE A
DIFFERENCE --
AS I SAID A LOT OF TIMES
WHENEVER WE CONDUCT AN AUDIT
WE'RE SHARING INFORMATION WITH
AN ENTITY TO GIVE THEM THE
OPPORTUNITY TO TAKE CORRECTIVE
ACTION AS QUICKLY AS POSSIBLE
AND WILL GIVE HIM CREDIT FOR THE
REPORT.
LOT OF TIMES YOU DON'T SEE THAT
OUR OUR REPORTS IN THIS
PARTICULAR REPORT YES THE AGENCY
STARTED FIXING THINGS.
WHAT I AM HOPING TO SEE AND AND
WHEN WE GET OUR SIXTY DAY
RESPONSE WHICH IS DUE THE END OF
THIS MONTH --
AND THEN OUR SIX MONTH IS THAT
THE ONE THAT WE REALLY USE AS A
BELLWETHER AS FAR AS HAS THIS
AGENCY REALLY TAKEN THE
RECOMMENDATION SERIOUSLY AND
GOTTEN SOME THINGS DONE.
SO I'M HOPING BY THE SIX MONTH
RESPONSE WE'LL SEE A LOT OF
THESE POLICIES FINALIZED SOME OF
THE DISCUSSIONS BETWEEN DTS AND
CAL THAT FINALIZED AS FAR AS
WHAT IS GOING TO BE THE CRITERIA.
FOR DETERMINING WHEN WE SHOULD
LEASE PROPERTY OUT WHAT TERM
SHOULD BE IN THAT IN THE
LANGUAGE OF THOSE LEASES WHO
SHOULD BE APPROVING THOSE LEASES
HEADQUARTERS NEEDS TO BE AWARE
OF WHAT'S HAPPENING AT THE
VARIOUS HOME SO.
THERE THERE WERE SOME
SIMILARITIES TO PRIOR --
REVIEWS TWENTY THIRTEEN I MEAN
THERE WAS AN AUDIT --
AS FAR BACK AS TWO THOUSAND AND
THREE WHEN WE LOOKED AT EMPLOYEE
HOUSING AT A VARIETY OF
DIFFERENT DEPARTMENTS AND HAD
THIS ISSUE AND AND I LOOKED AT
THAT THIS MORNING AND CAL THAT
WAS IN THERE.
BUT I DO THINK THAT THERE IS.
A DIFFERENT RESPONSE TO THIS
PART THE CURRENT.
THANK YOU ON IN THE WHEN CAL
THAT COMES UP THE COMMENT ON
THIS AS WELL.
AND SO PRETTY THAT AT THIS TIME
WHEN WE SEE IF THERE'S
ADDITIONAL QUESTIONS SO WE WILL
MOVE -- TO
SO THEY'RE MORE LIKE FIRST.
THANK YOU MISTER CHAIR.
THANK YOU MICHELLE FOR ANOTHER
FIND.
REPORT [inaudible]
ADAM.
THE THOUGHT CAME TO MIND WHEN I
WAS READING THEM WHAT A WAY TO
RUN A RAILROAD.
JUST LIKE.
GET FRUSTRATED SO HERE IN OUR
BECOMING OUT OF CAR KELLY
GOVERNMENT AND CITY GOVERNMENT
YOU HAVE A CITY MANAGER IN A
COUNTY EXECUTIVE OFFICER BUDGET.
I DON'T SEE AN END SACRAMENTO IT
CHIEF OPERATING OFFICER OR A CEO.
BUT I DO SEE SECRETARIES ARE
JUST CURIOUS.
ON THE ORGANIZATIONAL CHART WHO
DOES CALVET REPORT TO AND WHO IS
D. G. S. REPORT --
TO CALVET I MEAN IT'S AN IT'S AN
AGENCY LEVEL POSITION --
SO REPORTS TO THE CABINET SAID --
DIRECTLY --
AND THEN D. G. S. IS UNDER I
THINK IT'S USED TO BE STE.
KEN DEVOPS CEASE TO BE STATE
CONSUMER SERVE THEIR UNDER --
GOVERNMENT OPERATIONS AGENCY IN
THAT AGENCY SECRETARY REPORTS TO
CABINET.
THE NEW GOVERNING SOME SO THEN.
IS THERE A BETTER WAY TO RUN
SOME OF THESE DEPARTMENTS --
PORT CHARGES LOW IS IS THAT A
RHETORICAL QUESTION.
NO CENTER I DON'T.
COME OUT OF AN EXECUTIVE FOR
SESSIONS AND I'M IN LEGISLATIVE
SO NOW YOU'RE LIKE WHAT THREE
MINUTES TO ASK YOU A QUESTION.
AND AND AND BUT I'M LOOKING FOR
SOLUTIONS RIGHT BECAUSE THIS IS
EMBARRASSING STUFF.
AND IT'S LIKE.
MANAGEMENT FAILURE SO NOW WHAT
WE DO.
YOU KNOW IT IS HURT A WAY TO
IMPROVE THIS WITH A C. O. O.
POSITION SOMEONE WHO COULD.
SAY WHAT YOU'RE YOU'RE SHORT
STAFFED OR YOU DON'T HAVE THE
PROPER TRAINING WHAT WE'LL GET
SOMEONE IN THERE FROM ANOTHER
DEPARTMENT BECAUSE THEY'RE
THEY'RE OVERSTAFFED.
WERE WERE WHATEVER.
AND I DON'T SEE THAT MECHANISM
OR THAT OPPORTUNITY.
SO I'M JUST CURIOUS IF YOU EVER
TRY TO LOOK AT THE THIRTY
THOUSAND FOOT LEVEL AND SAID BOY
HERE SOME IDEAS THAT WOULD.
PREVENT.
SOME OF THESE EMBARRASSING
[inaudible]
MANAGEMENT [inaudible]
MISTAKES.
WELL AND AND AND SOME OF THE
THINGS THAT WE'VE DONE IN THE
PAST AS AN AS A THE STATE
AUDITOR'S OFFICE IN WORKING WITH
YOU KNOW I'VE WORKED WITH FOR
FIVE DIFFERENT ADMINISTRATIONS
NOW.
IS BRIEFING THE AGENCY
SECRETARIES.
OF THE ISSUES WE'VE IDENTIFIED
IN AUDITS --
I'VE OFFERED THAT TO EVERY
ADMINISTRATION OF ALREADY MET
WITH THE NEW ADMINISTRATION --
THEY'RE VERY ATTENTIVE AND
WANTING TO UNDER WE'VE
IDENTIFIED IN THE PAST AND
REALLY WANTING TO KNOW ARE THE
AGENCIES BEING RESPONSIVE ARE
THE DEPARTMENT'S BEING
RESPONSIVE TO YOUR YOUR
RECOMMENDATION SO I THINK THAT
WILL HELP.
BUT I THINK THAT IT'S IT'S
REALLY KEY AT THE CABINET LEVEL
SO FOR EXAMPLE GOVERNMENT OFFICE
HAS A VARIETY OF DIFFERENT
DEPARTMENTS.
THAT REPORTS TO IT.
INDEED YES IS ONE OF THEM THERE
ARE OTHERS SO WHAT WHAT'S
HAPPENING AT THAT AGENCY LEVEL
FOR THAT AGENCY TO REALLY
UNDERSTAND.
NOT JUST ISSUES AT THE STATE
AUDITOR'S OFFICE RAISES BUT IF
THERE ARE ISSUES RELATED TO
BUDGET OR OTHER YOU KNOW --
PROGRAM A LOT OF THESE
DEPARTMENTS HAVE INTERNAL AUDIT
SHOPS ARE THEY PAYING ATTENTION
TO THE REVIEWS THAT THEIR OWN
INTERNAL AUDITORS ARE DOING.
I THINK AND AND YOU KNOW I DON'T
I MEAN AUDITOR'S TYPICALLY ARE
SKEPTICS AND AND VERY CRITICAL.
BUT I DO REALLY WANT TO SAY THAT.
THE THE CURRENT AGENCY SECRETARY
OF VETERANS AFFAIRS HE REACHED
OUT TO ME AS SOON AS A SITE WAS
APPROVED YOU HAVE MY FULL
COOPERATION I WANT YOU TO KNOW
WE'RE GOING TO BE OUT THERE
THESE HOMES GETTING AHEAD OF
THIS WERE ALREADY TRYING TO
IDENTIFY.
WHAT LEASES WE HAVE --
AND AND I DON'T KNOW I AM NOT TO
SPEAK FOR HIM TO SAY HE WAS
EMBARRASSED NOT TO BE ABLE TO
NOW BUT HE WANTED TO GET ON TOP
OF IT RIGHT AWAY AND I THINK.
THE FACT THAT WE HAVE A EXAMPLES
IN THE REPORT WHERE THEY ARE
IMMEDIATELY TAKING CORRECTIVE
ACTION NOT WAITING FOR REPORT TO
BE ISSUED AND THEN REACTING TO
IT THEY ARE REACTING TO THE
FEEDBACK.
IMMEDIATELY AND AND AND I
BELIEVE IT'S ONLY FAIR.
THANK YOU MISTER CHAIR.
THANK YOU FOR THE SUMMER GONNA
MOVE TO ASSEMBLY WOMAN --
PEACHY NORRIS AND THEN WE'LL
MOVE TO CENTER.
THANK YOU MISTER CHAIR.
A GOOD MORNING THANKS FOR BEING
HERE.
A SLIGHTLY DIFFERENT.
TAKE ON PERHAPS THIS IS THE SAME --
THE SAME POINT WHICH IS NOT AS
MR SALAS NOTED THIS INCREASE
BEEN GOING ON FOR SOME TIME THE
ISSUES THAT.
NOTED IN THE REPORT HAD BEEN
GOING ON FOR SOME TIME HOW CAN
WE AS LEGISLATORS.
BE MORE EFFECTIVE IN MORE
QUICKLY IDENTIFYING AND
RECTIFYING THESE TYPES OF
PROBLEMS WHETHER IT'S YOU KNOW
IN CAL THAT SIR IT IN OTHER
DEPARTMENTS.
AGAIN THAT'S A AYE AYE I THINK
THERE'S A VARIETY OF OF
OVERSIGHT OPPORTUNITIES THAT THE
LEGISLATURE HAS CERTAINLY
THROUGH THE JOINT LEGISLATIVE
AUDIT COMMITTEE VARIOUS POLICY
COMMITTEES THE TO VETERANS
AFFAIRS COMMITTEES --
OF HAVING THIS JOINT HEARING
TODAY I THINK AND BUDGET SUB
COMMITTEES THERE CAN BE
QUESTIONS ASKED IN THE PAST MY
OFFICE OFTENTIMES WOULD TESTIFY
IT BUDGET SUBCOMMITTEE HEARINGS --
IF A DEPARTMENTS BUDGET WAS UP
HE ASKED TO PRESENT HAVE YOU
DONE AUDITS OF THE DEPARTMENT OF
VETERANS AFFAIRS IN THE LAST
THREE YEARS.
AND ARE YOU FEELING LIKE THE
RECOMMENDATIONS ARE BEING FULLY
IMPLEMENTED OR NOT AND IN SOME
CASES IF THEY'RE NOT THEN THE
MEMBERS WOULD QUESTION THE
DEPARTMENT.
YOU'RE ASKING FOR MORE RESOURCES
BUT THE AUDITOR IS SAYING YOU'RE
NOT EVEN DOING X. Y. AND Z. THAT
HER OFFICE SUGGESTED.
SO I THINK THERE ARE A VARIETY
OF MECHANISMS THAT THE
LEGISLATURE.
CAN USE --
TO EXERCISE ITS OVERSIGHT AND
AND RESPONSIBILITIES AND
AUTHORITY CERTAINLY --
THE OTHER ISSUE THAT WE IDENTIFY
IN SOME REPORTS AND I AND I
GOING TO HAVE TO HAVE.
AMANDA ASSIST US BUT I THINK
THERE ARE CERTAIN REPORTS THAT
DEPARTMENTS HAVE TO PROVIDE TO
THE LEGISLATURE --
AND MAKING SURE THAT THE REPORTS
AND I KNOW YOU GET A LOT OF
INFORMATION BUT ARE THERE KEY
THINGS THAT THE LEGISLATURE'S
CONCERNED ABOUT --
AND THAT IT WE TRY TO TAKE THAT --
SERIOUSLY AS FAR AS WE DON'T
WANT TO OVERLOAD MEMBERS BECAUSE
WELL BELIEVE ME I'M FULLY AWARE
OF HOW BUSY ALL OF YOU ARE BUT
ARE THEY ARE KEY ELEMENTS OR OF
INFORMATION THAT VARIOUS
DEPARTMENTS SHOULD BE PROVIDING
TO THE LEGISLATURE.
AND AND IN SOME CASES WILL MAKE
RECOMMENDATIONS LIKE CAN BE
CALLING THAT INFORMATION AND
BRINGING CERTAIN THINGS TO YOUR
ATTENTION.
THANK YOU BUT THIS TIME I SHOULD
NOTE THAT WE DO HAVE TO
ADDITIONAL --
MEMBERS THAT HAVE BEEN INVITED
TO JOIN US AT TODAY'S HEARING
THAT IS --
SENATOR BILL DODD AND ALSO
ASSEMBLY WOMAN CECILIA
AGUIAR-CURRY THIS TIME WILL MOVE
TO SENATOR DOT.
OP THANK YOU BYE I'D LIKE TO
THANK THE CHAIRS A J. LIKE IN
THE VETERANS COMMITTEE FOR
ALLOWING.
ME TO BE HERE TODAY --
TO BECAUSE I THINK THOSE ARE
INCREDIBLY IMPORTANT HEARING --
I DO HAVE SOME PREPARED REMARKS
BECAUSE I I REALLY THINK THAT
SOME OF THIS --
NEEDS TO BE PUT INTO CONTEXT AND
I HOPE THAT THIS IS HELPFUL.
FIRST OF ALL AS A SENATOR
REPRESENTING THE YACHT BILL
THAT'S HOME THE CARE THE
RESIDENTS IMPROPER MANAGEMENT OF
THE FACILITY.
IS OF UTMOST IMPORTANT TO ME --
THE YOUR BILL VETERANS HOME HAS
BEEN AN INCREDIBLY ENORMOUS
ASSET FOR VETERANS --
FOR WELL OVER A CENTURY IT'S
BEEN A CRITICAL PARTNER --
TO THE SURROUNDING COMMUNITIES
OF THE TOWN OF YACHT BILL AND
THE BROADER NAPA VALLEY.
WITH PROPER MANAGEMENT AND
INVESTMENT I KNOW IT WILL
CONTINUE TO MEET THOSE NEEDS --
FOR THROUGH FOR THE NEXT CENTURY.
WHAT'S CLEAR TIME HASN'T
PROVIDED THE LEVEL OF DILIGENCE
AND OVERSIGHT WE EXPECT FROM ALL
OUR STATE DEPARTMENTS WITH
RESPECT TO THE EVENTS IN LEASES.
I DO FEEL HOWEVER THAT THE AUDIT
OVERLOOK SOME OF THE BENEFITS.
OF THE VARIOUS LEASES --
TO PROVIDE HOME RESIDENTS IN.
THE CAPITAL INVESTMENTS MADE BY
GROUPS TO BUILD RENOVATE OR
MAINTAIN BUILDINGS AND AFTER
LISTENING --
TO THIS IS MISS HOUSE --
TESTIMONY I THINK IT'S IMPORTANT
SAY AT THIS POINT I PERHAPS --
THEY WOULD'VE IF THEY'VE BEEN.
YOU KNOW PUT IN THE LEASES WHAT
THE BENEFITS WORSE I APPRECIATE --
THAT CONTACTS BUT I THINK THAT
THE THAT NEW ONCE IS IMPORTANT
BECAUSE CERTAINLY NOBODY'S GOING
TO BUILD A GOLF COURSE.
OR BUILDING MUSEUM.
OR SIGNIFICANTLY INPUT MILLIONS
OF DOLLARS INTO A THEATER FOR A
FIVE YEAR LEASE.
SO IMMEDIATELY THERE'S GOT TO BE
SOMETHING IN THERE THAT ALLOWS
FOR A INVESTMENTS FROM THE
COMMUNITY WORKS VOWED TO BE --
APPROPRIATE USE AND ALL
ULTIMATELY BENEFIT VETERANS THE
IT IN THAT REGARD.
AND I THINK --
THAT'S WHERE THE PRESENTATION
WAS. FOR THE BEST INTERESTS OF
THE HOMES.
LONG TERM AND WHETHER OR NOT --
THESE LEASES.
AND THE AMOUNT OF RENT IS
ACTUALLY COMING BACK TO BENEFIT
THE VETERANS THEMSELVES AND SO I
BELIEVE THAT WAS AN ISSUE
IDENTIFIED SO FULLY. TO TO THAT
POINT MISTER DOT YEAH I
PERSONALLY GOT MISTER CHAIR AND
I THINK THAT --
REASONABLE PROCESS AND CRITERIA
FOR THESE LEASES ANY BETTER.
PERMITS I THINK ARE IMPORTANT --
TO TO TO MAKE SURE THAT --
NOT ONLY THAT --
LOOK IT JUST GOES DOWN THIS WAY
THEY ARE PART OF THE COMMUNITY
IT USED TO BE LIKE WHEN I GREW
UP.
THE ONLY TIME WE EVER SAW
VETERANS WITH THE PEOPLE WENT TO
THE LOCAL BARS IN THE TOWN OF
YOUR BILL AND THAT WAS IT.
AND I TELL YOU TODAY IT IS A
MUCH DIFFERENT SITUATION THERE
MEMBERS OF OUR CENTRAL
COMMITTEES THEY'RE INVOLVED IN
SO MANY COMMUNITY EVENTS AND IT
THING SO SOME OF THESE THINGS
LIKE THE THEATER.
AND THESE OTHER THINGS WERE A
MAJOR INVESTMENTS ARE GOING ON
WE JUST HAVE TO HAVE SOME --
COMMON SENSE PREVAIL. TO TO YOUR
POINT IF IT'S JUST PUT IN THE
LEAST AND SHOWN THE BENEFITS
THAT'S PROBABLY --
WHAT YOU NEED GOING FORWARD?
BUT I I MY POINT IS WE CAN'T
HAVE THE PENDULUM SWINGING FROM
LAX OVERSIGHT TO SIMPLY SHUTTING
DOWN THE COMMUNITY.
THE VETERANS HOME --
AT THE HOME --
WE WILL NOT BE THE VETERANS AT
THE HOME WILL NOT BENEFIT BY
BEINGS WALLED OFF FROM THE
COMMUNITY AND THE TAXPAYERS NAPA
VALLEY WILL NOT BENEFIT.
FROM BEING BARRED FROM OF THE
CAMPUS. FOR EXAMPLE THERE'S AN
ANNUAL BIKE RACE THAT HAPPENS
EVERY SINGLE YEAR THEY RAISE
HUNDREDS OF THOUSANDS OF DOLLARS
FOR VETERANS. FOR VETERANS NOW
THAT WASN'T IN THE LEAST MAYBE
THERE WASN'T EVEN A YOU KNOW AS
A CONTRACTOR AND I GET THAT.
BUT THIS WHAT I'M JUST CONCERNED
ABOUT IS THE PENDULUM SWINGING
YOUR THE WRONG WAY AND ALL THE
SUDDEN MEMBERS OF OUR COMMUNITY
WHO HERETOFORE HAVE BEEN.
MAJOR PROPONENTS OF THE VETERANS
HOME AND SUPPORTERS THROUGHOUT
THE COMMUNITY GET TURNED OFF TO
THE STATE TURNED OFF THE
VETERANS WHICH IS YOU KNOW EVEN
WORSE THESE PEOPLE THAT SERVED --
ON BEHALF OF OF THEIR COUNTRY
BUT I THINK IT'LL BE WE NEED A
COLLABORATIVE PROCESS TO GET CD
DA WE'RE NEEDS TO BE.
AND I LOOK FORWARD YOU ARE
PARTNERING AN IDEA ON THIS ISSUE
AND JUST WANTED TO MAKE THOSE
POINT TONIGHT THANK YOU ALL FOR
BEING HERE TODAY AND ANSWERING
THESE QUESTIONS.
RIGHT TAKE SENATOR DODD FOR
THOSE --
COMMENTS I KNOW YOU KNOW.
THIS COMMITTEE IN THE OBJECTIVE
OF THE HEARING IS REALLY TO GET
OUT THE RECOMMENDATIONS AND
FIGURE OUT WAYS THAT WE CAN.
FURTHER BENEFIT VETERANS HOW CAN
WE DO THAT RESPONSIBLE YET
OTHERS SOME GOOD PROGRAMS ARE
HAPPENING OUT THERE BUT YOU KNOW
WHAT'S A LIABILITY THE STATE IF
THEY ARE MAKING A LOT OF MONEY
SAY FOR INSTANCE. FOR THE EVENT
YOU IDENTIFIED MORE THEY PAYING
A LOT IS A STATE ASSUMING A
LIABILITY FOR THAT OR SHOULD
THEY BE.
PAYING THEIR FAIR SHARE AS WELL
SO THAT THEY CAN CONTINUE TO
MOVE FORWARD AND AND BE
PROSPEROUS AND THEN ACTUALLY
BENEFIT --
EVERYONE CAN MOVE AND LET ME BE
CLEAR I THINK THAT THERE SHOULD
BE NO LIABILITY.
ON BEHALF OF THE STATE I SUPPORT
THE RECOMMENDATIONS --
IT I THINK ANYBODY WITH ANY
COMMON SENSE.
WOULD SAY THAT IF THE IF YOU'VE
GOT A LEASE I MEAN JUST IF IT
HAPPENS EVERYDAY BUSINESS YOU DO
NOT WANT THE LIABILITY IF YOU'RE
GONNA LEAVE SOMETHING OUT AND
YOU'RE GOING TO HAVE.
THOSE DISCLAIMERS TO MAKE SURE
THAT SOMEBODY'S GOT INSURANCE
NAME IN THE STATE OF CALIFORNIA
AS THE BENEFICIARY IN THE EVENT.
OF A PROBLEM THANK YOU.
THE SAME WAY THAT WE WE HAVE
QUESTIONS FROM ASSEMBLY MEMBER
BROUGHT WE'VE DONE SOME STUFF IN
MY DISTRICT ALWAYS PRE
APPRECIATE YOUR PROFESSIONALISM.
JUST ONE SIMPLE QUESTION DID YOU
IDENTIFY ANY INDIVIDUALS WHO
WERE INVOLVED IN THESE DECISIONS
AND IF SO WHO ARE THEY OR WHO
ARE THEY AND DO YOU THINK
THERE'S ANY DISCIPLINE ACTIONS
THAT NEED TO TAKE PLACE.
M..
SO WITH REGARD TO FOR INSTANCE
THE FOR ENTITIES THAT WERE
OCCUPYING SPACE IN THE HOME --
IT WAS APPARENT TO US THAT THOSE
ENTITIES HAD.
TAKEN UP RESIDENCE DURING A TIME.
BEFORE ANY OF THE CURRENT FOLKS.
THAT ARE AT THE HOME WHERE THERE
SO THEY ARE NO LONGER WITH CAL
THAT -- SOME
OF THESE LEASES GO BACK A VERY
LONG TIME.
EVEN BACK TO NINETEEN EIGHTY
EIGHT SO A LOT OF THE PEOPLE AT
CALVIN TGS WHO OVERSAW SOME OF
THESE AGREEMENTS ARE THERE
ANYMORE.
AS A RESULT WHEN WE WERE ASKING
CAL THAT DDS WHY DID THESE
THINGS HAPPEN WHY DID DDS CAL
THAT MAKE THESE DECISIONS THEY
WEREN'T REALLY ABLE TO PROVIDE
ANSWERS.
BECAUSE THEY JUST WEREN'T THE
PEOPLE WHO WERE AROUND AT THAT
TIME.
THANKS VERY MUCH.
AND I WANTED TO ADD TO THAT.
MR BREAUX THERE WERE.
A COUPLE OF INDIVIDUALS WITH
RESPECT TO THE HOUSING --
WHO MAY WERE MAKING ARRANGEMENTS
TO THEIR OWN BENEFIT --
THE THE CAL THAT HAD HIRED A
STATE ASSET.
USE ME MANAGER AND THERE WAS
ALSO A DEPUTY ADMINISTRATOR ONCE
CALVET BECAME AWARE OF THE
CIRCUMSTANCES AROUND THE
INAPPROPRIATE HOUSING BENEFITS
FOR THOSE INDIVIDUALS --
AS WE SAY IN THE REPORT CAL THAT
TOOK SWIFT ACTION TERMINATED
BOTH INDIVIDUALS.
THANK YOU I THINK WE HAVE A
QUESTION 4% ARCH LETTER THEN
WE'RE GONNA MOVE TO ASSEMBLY
WOMAN OCCURS.
YOU MISTER CHAIR OF I WOULD HOPE
THAT ONE RECOMMENDATION WOULD BE
THAT MAY BE AN ANNUAL.
A CURSORY AUDIT.
TEAMING UP WITH THE THE DID THE
DEPARTMENT OF COURSE WITH THE
WITH THE SECRETARY AND AND JUST
TO MAKE IT A FRIENDLY VISIT JUST
TO SEE HOW THINGS ARE GOING
ALONG.
SO WHEN WE TO PREVENT THIS SORT
OF THING AND IF WE KNOW PROGRESS
IS MADE AND I APPRECIATE YOUR
STAND IN YOUR AND JUST FEELING --
THAT THE SECTOR IS DOING THE
RIGHT THING AND I APPRECIATE
THAT AND I FEEL THE SAME WAY.
OF AND IT IS MY COLLEAGUE HAD
MENTIONED WE HAVE A COMMUNITY
WHOSE HONORING VETERANS IN
WORKING --
WITH OUR VETERANS WE WANT TO
BRING EVERYONE TOGETHER BUT IT
IS A BUSINESS TO BUSINESS OF THE
STATE OF CALIFORNIA.
AND UNDER THAT WE HAVE LIABILITY
ISSUES AND CONCERNS CHAU --
IF YOU COULD PUT SOMETHING
TOGETHER AND AND MAYBE GET WITH
THE SECTARIAN CHIEF YOU COULD
COME TO AN AGREEMENT TO SEE ONE
ANOTHER EVERY YEAR --
UNDER FRIENDLY BASIS SEE HOW
THINGS ARE MOVING ALONG I THINK
THAT WOULD BE A STEP FORWARD.
AND I APPRECIATE THANK YOU.
THANK YOU BY THE SEVERAL MOVED
ASSEMBLYWOMAN AGUIAR-CURRY HI
AGAIN GOOD MORNING AND THANK YOU
SO MUCH FOR THE PART --
IT'S REALLY SHOWED A LOT OF
THINGS THAT WE'VE THOUGHT ABOUT
THIS FOR A LONG TIME AND I'VE
MET WITH --
THE OF A RESIDENTS THERE I'VE
HAD PUBLIC OUTREACH MEETINGS
MYSELF AND SENATOR DODD
CONGRESSMAN THOMPSON WE'VE HAD
THESE CONVERSATIONS WE'VE HAD
PEOPLE FROM THE AGENCIES THERE.
AND I'VE HEARD CRICKETS.
AND I APPRECIATE WERE GOING
RIGHT NOW AND I'M GONNA BE VERY
INVOLVED IN MAKING SURE THAT
EVERYBODY FOLLOWS THROUGH.
WITHOUT BEING SAID IS THAT RIGHT
NOW THEY'RE SUPPOSED TO BE DOING
A CALVET MASTER PLAN FOR YOUNG
FILL.
I WANT TO MAKE SURE THAT THAT
MASTER PLAN IS BEING DONE AND I
WOULD APPRECIATE THAT THE YOUR
RECOMMENDATIONS ARE INCORPORATED
INTO THAT MASTER PLAN --
I AM REQUESTING A DRAFT OF THAT
MASTER PLAN BECAUSE EVERY SINGLE
TIME I HAVE A MEETING THEY SAID
WE HAVE TO WAIT FOR THE MASTER
PLAN WE NEED TO WAIT FOR THE ON
IT.
I CAN'T LET THOSE VETERANS
WAITING THE LONGER.
AND I REFUSED TO LET THEM WAIT
ANY LONGER.
QUITE FRANKLY I WAS THERE WITH
THE EIGHTY YEAR OLD GENTLEMAN
WITH NO HEAT IN HIS ROOM THAT'S
WRONG THE ELEVATOR DOESN'T WORK.
THAT'S WRONG THESE FUNDS SHOULD
HAVE BEEN REACHED EVER WAS NOT
WATCHING WHERE THEM FUNDS WERE
GOING I'M APPALLED I'M SO ANGRY
RIGHT NOW SO.
I WANTED TO I THANK YOU FOR THIS
THIS IS GOING TO GIVE US A
ROADMAP TO DO THE RIGHT THING.
THAT COMMUNITY THAT NAPA VALLEY
CHERISH THESE PEOPLE AND THAT
CENTER.
AND WE WANT TO MAKE IT BETTER
AND I THINK OTHERS COME TRUE
COMMITMENT FOR MYSELF AND CENTER
JOB COUNTY --
THE COUNTY SUPERVISORS EVERYONE
TO GET THE BACK ON THEIR FEET
THE TOWN A YOUNG BILL HAS LOST
SO MUCH OUT OF THIS IF SOMETHING
HAPPENED SO --
WE HAVE THIS BEAUTIFUL MUSEUM
THIS THERE WE'LL TALK ABOUT FAIR
MARKET VALUE AND HOW THAT ALL
WORKED OUT BECAUSE THAT DOES NOT
MAKE SENSE TO ME FOR THEM AT ALL.
BUT THOSE ARE THE THINGS THAT I
I WANT TO TELL YOU IS THAT THIS
IS NOT BEEN JUST FROM THIS
REPORT THIS IS FOR A WHILE AND
WHEN YOU SAY THAT SINCE.
TWO THOUSAND THIRTEEN THEY'VE
HAD A LOT OF AND REALLY NOTHING
HAS HAPPENED UNTIL THEY HEARD
ANOTHER AUDITS COMING THROUGH
WRONG.
JUST WRONG SO THANK YOU VERY
MUCH FOR YOUR WORK I'LL BE
KEEPING.
AN EYE ON THIS I APPRECIATE --
THE TIME IT TOOK I KNOW THERE'S
A LOT OF PIECES TO PUT TOGETHER
AND NOT EVERYBODY WAS AT THE
TABLE TO HELP YOU WITH THAT SO.
I THANK YOU AGAIN.
AND THANK YOU FOR THOSE COMMENTS
I THINK THAT KINDA IT'S A GOOD
SUMMATION OF WHERE WE WANT TO
HEAD BUT LET THIS TIME WE ASK IF
THERE'S ANY ADDITIONAL COMMENTS
YOU'D LIKE TO MAKE.
IF.
PLEASE SENATOR UMBERG.
JUST A COUPLE QUESTIONS IN THESE
MAY BE MORE APPROPRIATE FOR THE
NEXT PANEL BUT I'LL GIVE THEM A
PREVIEW -- I
UNDERSTAND HAS BEEN LAWSUITS
FILED --
BOTH CLAIMS WITH RESPECT TO
INJURIES AS WELL AS LAWSUITS
CONCERNING USES OF PROPERTY THAT
CURRENTLY IS --
HOMES PROPERTY DID YOU ANALYZE
ANY OF THAT IN A THE LAWSUITS --
OR POTENTIAL CLAIMS FOR WE WERE
AWARE OF SOME OF THEM AIMED
INCLUDING --
DURING A A BIKE --
THAT -- WE
ONLY NOTED THAT IT HAD BEEN
DISMISSED WE DIDN'T DO MUCH
ANALYSIS OF OF THOSE.
LAWSUITS OTHER THAN TO NOTE THAT
IT IS INDICATIVE OF THE THE THE
THE LIABILITY THAT THE STATE IS
EXPOSED.
TO SO ONE THING THAT WOULD BE OF
USE TO ME AT LEAST IS IS SOME
ANALYSIS AS TO WHAT HAS BEEN
FILED WHAT HAS BEEN RESOLVED AND
AND WHAT IS PENDING WHERE
THERE'S BEEN CLAIMS THAT.
HAVE BEEN ASSERTED BUT HAVE NOT
BEEN FILED THAT KIND OF THING
JUST SO WE HAVE A SENSE OF THE
STATE'S EXPOSURE.
AND AGAIN MAYBE THAT MAY BE BEST
FOR THE FOR THE CALVET FOLKS BUT
I'LL I'LL PUT THAT OUT THERE
THEN THE SECOND IS DURING THE
COURSE OF YOUR AUDIT DID WERE
QUESTIONS S. LIKE WHY DO WHY DO
WE HAVE A RESERVOIR AT YON PHIL --
AND IF SO WHAT WERE THE
RESPONSES.
SO WITH THE RESERVOIR WAS NOT
AMONG THE LEASES THAT WE
SELECTED FOR REVIEW.
BECAUSE WHEN WE REVIEW THE
AGREEMENT FOR THE RESERVOIR WE
DETERMINED THAT IT WAS NOT A
LEASE AND SO WE FOCUS OUR
AIRCREW OF REVIEW ON THE
AGREEMENTS THAT AND WE
DETERMINED TO BE LEASES.
OKAY.
SO LET ME WHEN WE WHEN WE HAVE
THINGS LIKE READ A SUPPOSE
THAT'S FOR A FUTURE ANALYSIS AS
TO WHY THE STATE OF CALIFORNIA
HAS A RESERVOIR IS IT.
WELL UNLESS THERE'S BEEN A WHAT
IS BEING USED FOR ALL RIGHT
THANK YOU VERY MUCH.
THANK YOU WILL MOVE TO ASSEMBLY
MEMBER VOEPEL AS ADDITIONAL
QUESTIONS.
NOT NECESSARILY A QUESTION WELL
ACTUALLY IT IS A LEGAL QUESTION
IF.
GOING.
OVER A FIVE YEAR AGREEMENT AND
CONTRACT VIOLATE STATE LAW.
WHAT WE HAVE STATE LAWS?
SO MY POINT IS.
IF THIS WAS IN THE PRIVATE
SECTOR.
I WOULD ORDER MY ATTORNEY. TO
AVOID.
THE CONTRACTS INVITED UP IN
COURT.
THAT ALSO HELPS YOU CAN READ
NEGOTIATION TRUST ME ON THAT.
ONE SO.
WE EITHER HAVE.
TO CHANGE STATE LAW.
OR IN FOR STATE LAW ON THESE
CONTRACTS I WOULD LOVE TO SEE
THE LAW CHANGED A BIT.
SO THAT [inaudible]
THE DIRECTOR.
CAN OVERRIDE THE FIVE YEAR
[inaudible]
CONTRACT UNDER THE DIRECTOR'S
AUTHORITY.
AND MAKE SURE THAT THE DIRECTORS
OF ANY.
ANY OF OUR ORGANIZATIONS
REPORTED. TO THE PROPER
AUTHORITY.
THAT WAY THE PENDULUM DOESN'T
SWING TOO FAR AWAY.
AND WE CAN BE RESPONSIVE THANK
YOU MISTER CHAIR.
SOME REAL WOMAN ENOUGH BURGER --
THANK YOU SO MUCH FOR YOUR
REPORT THIS IS VERY SHOCKING FOR
ME TO REALIZE THAT.
SO MANY FUNDS ARE NOT GETTING TO
THE PEOPLE WHO THEY WERE
INTENDED TO TO TO RECEIVE THE
BENEFITS.
IS THERE ANYTHING YOU DISCOVERED
THAT WOULD QUALIFY AS CRIMINAL --
OR RICE LEVEL OF CRIMINAL --
NEGLIGENCE AND DID YOU LOOK AT
WHETHER THERE'S ANY APPROPRIATE
POLICY PROCEDURES IN PLACE FOR
REPORTING TO RELEVANT
AUTHORITIES IN TERMS OF GIVE TO
PUBLIC FUNDS.
YOU KNOW I'M HEARING ABOUT THIS
YOU JUST SEE SUCH NEGLIGENCE AT
SOME POINT STATE FUNDS ARE BEING
USED MISUSED AND MISS ALLOCATED
WAS THAT PART OF YOUR AUDIT OR
DO YOU HAVE ANY THOUGHTS ON THAT.
WE DID NOT IDENTIFY ANYTHING THE
RISE A LITTLE OF CRIMINAL
LIABILITY --
THERE'S CERTAINLY AS YOU SAID
THAT THESE FOR MISUSES OF STATE
FUNDS BUT THAT IS A CIVIL AND
NOT CRIMINAL AT LEAST AT THE THE
THE CRITERIA THAT WITH THAT WE
IDENTIFIED --
INCLUDES THE THE MISUSE OF STATE
RESOURCES --
AT WHICH THERE ARE --
PENALTIES IN.
THE SENSE OF DISCIPLINE.
BUT NOT --
CRIMINAL AT THE OKAY THANK YOU
WELL MAY I ASK IF THERE'S ANY
ADDITIONAL QUESTIONS --
HEARING AND SEEING NINE LET ME
THANK THE ARMOR AND HER TEAM FOR
YOUR DILIGENT WORK AND LEMME.
LAYING THE FRAMEWORK --
FOR US TO MOVE FORWARD SO THIS
TIME WE'LL GO AHEAD IN THE
INTEREST OF TIME WE'RE GOING TO
GO TO CALL UP THE DEPARTMENT OF
VETERANS AFFAIRS AND THE
CALIFORNIA DEPARTMENT OF GENERAL
SERVICES TOGETHER --
IN THE INTEREST OF TIMES I WOULD
IMAGINE BASED OFF THE LINE OF
QUESTIONING WE'VE HAD SO FAR.
THAT CRAP SAID WE PRUDENT TO
HAVE ON BOTH COME UP GIVE A
PRESENTATION.
AND THEN WE WILL ASK QUESTIONS
THAT WILL EITHER THE DEPARTMENT
OF VETERANS AFFAIRS OR THE
FORMER GENERAL SERVICES.
CAN GOING TO GIVE A RESPONSE AT
THIS TIME FROM THE DEPARTMENT OF
VETERANS AFFAIRS WE HAVE A
MISTER ABBAS KIANI THE SECRETARY
VETERANS AFFAIRS --
THOMAS MARTIN DIRECTOR FUTURE
OPERATIONS OF PLANNING DAVID
GERARD ASSISTANT DEPUTY
SECRETARY FOR CAPITAL ASSETS AND
FACILITIES MANAGEMENT.
FROM THE DEPARTMENT OF GENERAL
SERVICES WE HAVE JASON KENNEY
DEPUTY DIRECTOR FOR REAL ESTATE
SERVICES DIVISION.
AND JIM MARTIN CHIEF BRANCH SO
WHEN WE START WITH THE
DEPARTMENT OF VETERANS AFFAIRS
WILL GO THROUGH PRESENTATION
FROM.
BOTH VETERANS AFFAIRS INDEED YES
AND THEN MOVE ON TO QUESTIONS.
SO MISTER BUSCEMI PLEASE.
SALAS AND ALL THE MEMBERS OF
THIS COMBINED COMMITTEE THANK
YOU FOR INVITING ME HERE TODAY
TO DISCUSS THIS REPORT.
ON LEASING IN THE VETERANS HOMES.
AND I WOKE.
START OFF BY SAYING I WELCOME.
THE FINDINGS OF THIS AUDIT AND I
APPRECIATE THE WORK OF MS HOWLIN
HER STAFF AND LET ME
EDITORIALIZE FOR A SECOND --
THE OUR RELATIONSHIP TO THE
ORDER IS NOT ADVERSARIAL --
I WAS SO IMPRESSED AT THE
PROFESSIONALISM OF EVERYONE IN
HER OFFICE WHO SPEND A
SIGNIFICANT AMOUNT OF TIME IN
OUR BUILDING AND OUR CAMPUSES --
IT WAS -- G.
MEAL AND THEY ARE THOROUGH THEIR
PROFESSIONAL AND A DELIGHT TO
WORK WITH I LOOK ON THEM AS OF
SUPPLYING ME WITH ADDITIONAL
TOOLS AND I THINK YOU ALSO
ADDITIONAL TOOLS. TO HELP ME DO
A BETTER JOB AS A STE SO A
CARETAKER OF OUR ELDERLY
VETERANS --
I WANT THE COMMITTEES KNOW THAT
I AM SERIOUS IN ADDRESSING ALL
THE MATTERS RAISED IN THAT ORDER
AUDIT.
AND FEEL IT'S IMPORTANT FOR ME
TO RESPOND TO THE IN PERSON.
IN ORDER TO PUT MY FOLLOWING
REMARKS INTO A BROADER CONTEXT I
WANT FIRST TO ACKNOWLEDGE.
THAT OUR EIGHT VETERANS HOMES
FROM READING TO CHULA VISTA HAVE
UNTIL RECENTLY ACTED MORE AS
INDEPENDENT FACILITIES RATHER
THAN AS A SYSTEM OF LONG TERM
CARE.
ACCORDING TO THE REPORT THE
YOUNG FILL HOME ON ITS OWN
ENGAGED OVERTIME IN UNFAVORABLE
LONG TERM PROPERTY USE
ARRANGEMENTS SOME OF WHICH GO
BACK DECADES.
NOW CAL THAT AS YOU KNOW HAS A
CORE MISSION ON ALL OUR CAMPUSES
AND THAT IS TO PROVIDE HIGH
QUALITY HEALTHCARE.
AND A TRANQUIL HOME LIKE SETTING
FOR THE ELDERLY MEN AND WOMEN
WHO BRAVELY SERVED OUR NATION IN
UNIFORM AND THEIR SPOUSES WHO
RESIDE THERE WITH THEM.
OUR HOMES ARE PLACES OF COMFORT
RESPECT AND SECURITY.
I WANT TO BE CLEAR A VETERANS
HOME SUCH AS THE ONE IN YON PHIL
IS NOT A FORTRESS.
WALLED OFF FROM ITS SURROUNDINGS
OUR VETERANS HAVE LONG ENJOYED A
POSITIVE AND NURTURING
RELATIONSHIP WITH THE
SURROUNDING COMMUNITY AND WE
WOULD LIKE TO CONTINUE THAT
RELATIONSHIP.
HOWEVER TO PARAPHRASE THE
AUDITOR.
OUR HOME IS NOT A PUBLIC PARK.
IT'S NOT AN EVENT SPACE.
IT'S NOT AN EXTENSION OF THE
FAIRGROUNDS.
CALVET FEELS THAT THIS SPACE ARE
VETERANS HOME CAN BE SHARED WITH
THE COMMUNITY AS LONG AS DAY
EVENTS AND LONG TERM LEASES
ALIGNED BOTH WITH OUR CORE
MISSION OF CARING FOR ELDERLY.
DESTITUTE VETERANS AND TO
PROTECT THE STATE INTERESTS AS
WE DO SO.
THE ORDER JUST OUTLINED HER
FINDINGS AND RECOMMENDATIONS SO
I'D LIKE TO TOUCH ON WHAT WE'VE
DONE SO FAR.
AND WHAT WE'RE CURRENTLY DOING
TO ADDRESS THE ISSUES GOING
FORWARD.
FIRST AS SHE MENTIONED EVEN
BEFORE THE PUBLISHED WE BEGAN
TAKING STEPS TO IMPROVE LEASE
MANAGEMENT AT ALL OF OUR HOMES.
AND THESE EFFORTS CONTINUE TODAY
I'M HAPPY TO REPORT THAT ALL
LEASES ENTERED INTO IN THE
PRESENT REGIME.
THAT MEANS MAY.
HAVE IT HERE TO THE MAXIMUM
LEASE PERIOD OF FIVE YEARS I
DISAGREE WITH ONE OF THE
ASSEMBLY WOMEN WHO SAID
NOTHING'S HAPPENED IN FIVE YEARS.
EVERY LEAST OF CALVET ENTERED
INTO SINCE THAT NINETEEN THIRTY
THIRD. TWENTY THIRTEEN AUDIT HAS
COMPLIED WITH THE STATE MANUAL
THAT REGULATES THESE KINDS OF
LEASES.
IT'S MY LONG TERM LEASES THAT
GIVE ME --
HARPER.
THESE LEASES OFFERED DIRECT AND
TANGIBLE BENEFITS TO OUR
RESIDENTS SECONDLY.
THE AUDIT INCLUDED NINE
INDIVIDUAL RECOMMENDATIONS I'M
PROUD TO SAY THE SEVERAL OF THE
NINE RECOMMENDATIONS HAVE
ALREADY BEEN IMPLEMENTED AND
SOLUTIONS TO THE REMAINING ONES
ARE IN DEVELOPMENT.
SINCE TWENTY FIFTEEN CALVET HAS
MADE SIGNIFICANT PROGRESS
IMPROVING PROPERTY MANAGEMENT.
CALVET HAS RENEGOTIATED PRIOR
AGREEMENTS TO ENSURE THOSE
LEASES BETTER SERVE THE
RESIDENTS AND PROTECT STATE
INTERESTS.
APPROVAL AUTHORITY FOR ANY NEW
LEASE NOW RESTS EXCLUSIVELY WITH
SENIOR LEADERSHIP IN SACRAMENTO
AND NOT WITH THE HOMES
ADMINISTRATORS [inaudible]
BY ME.
WITH REGARD TO THESE ONE DAY --
EVENTS BICYCLE RACES PICNICS ON
THE SUCH THESE ARE NOT LEASES
THESE ARE LICENSES SO WITH
REGARD TO THOSE I HAVE ISSUED A
NEW PROPERTY USE POLICY.
THIS POLICY WILL GIVE SOME PHASE
IN TIME.
THIS YEAR. FOR PART OF THIS YEAR
FOR LICENSEES TO ADJUST THEIR
PLANS AND NOT TO HAVE THEM IN
KERR ANY FINANCIAL --
DISCOMFORT.
BY SUDDENLY PULLING THE RUG OUT
FROM UNDER THEM.
BUT THESE NEW ARRANGEMENTS WILL
STILL PROTECT THE TERM THE STATE
IN TERMS OF LIABILITY.
SAFETY SECURITY AND IT WILL
ENSURE THAT THE RESIDENTS ARE
NOT UNDULY DISRUPTED.
EVERY HOUSING LEASE FOR
EMPLOYEES ON THE ON FILL CAMPUS
HAS BEEN RE WRITTEN TO MEET CAL
HR REQUIREMENTS AND BEST
PRACTICES.
LET ME GET IN HERE AS A RESPONSE
TO A QUESTION IT WILL TAKE US
ABOUT FOUR YEARS FOR ALL OF
THOSE HOUSES --
TO REACH A FAIR FULL FAIR MARKET
VALUE DIRECTED STAFF TO OVERSEE
PROPERTY USE AND HAVE BEGUN
ASSESSING THE BEST FUTURE USES
OF EACH OF THE VETERANS HOMES.
SO.
I WANT TO THANK YOU AGAIN FOR
HAVING ME HERE TODAY I'M MORE
THAN HAPPY ALONG WITH MY STAFF
TO ANSWER ANY QUESTIONS YOU HAVE
ABOUT OUR RESPONSE TO THAT AUDIT
REPORT.
AND WHAT FURTHER ACTIONS WERE
TAKING TO IMPROVE OUR
STEWARDSHIP OF STATE PROPERTY.
THANK YOU [inaudible]
THANK YOU.
SIR ADDITIONAL TESTIMONY FROM
ANYONE FROM THE DEPARTMENT OR
SHOULD WE MOVE TO DTS.
MOVED TO TGS SMOKES MY
RECOMMENDATION MOODY'S YES
PLEASE.
SURE A GOOD MORNING TEARS
ARCHULETA IRWIN SALAS AND
MEMBERS MY NAME IS JASON KENNEY
I'M THE DEPUTY DIRECTOR FOR REAL
ESTATE SERVICES THAT THE GS I AM
JOINED WITH JOE MARK STONE WHO'S
THE CHIEF OF THE ASSET
MANAGEMENT --
BRANCH AND WHICH ARE LEASING ARM
RESIDES.
WE DO THANK YOU FOR THE
OPPORTUNITY TO DISCUSSES THE
AUDITOR'S REPORT ON LEASES --
I ALSO LIKE TO THANK THE STATE
AUDITOR FOR THEIR WORK WE DO
TAKE THE RECOMMENDATIONS
SERIOUSLY AND WE ARE IN GENERAL
AGREEMENT WITH WITH ALL THE
RECOMMENDATIONS --
WE ARE ALSO FIRMLY COMMITTED TO
ENSURING THE LEASE PROPERTY IS
IN COMPLIANCE WITH STATE LAW AND
IN THE BEST REGION'S BEST
INTERESTS OF THE HOMES --
I'M GONNA PROVIDE A QUICK
OVERVIEW OF WHAT DID YES IS
DOING IN TERMS OF ADDRESSING
THOSE AUDITOR'S RECOMMENDATIONS
AND THEN JIM AND I ARE HAPPY TO
ANSWER ANY QUESTIONS YOU MIGHT
HAVE.
SO FIRST JUST A TINY BIT OF
ADDITIONAL CONTEXT --
BEFORE PART OF THE AUTO A COUPLE
THINGS WE DID DO TO ADDRESS --
SOME OF THE OVER OUR KING --
STATE LEASE ISSUES IS A TWO
DIFFERENT UNITS THAT HANDLE
STATE PROPERTY LEE I'M SORRY
LEASING ONE WHERE WE LEASED
PROPERTY FROM THE PRIVATE SECTOR
AND ONE WILL RELEASE PROPERTY TO
THE PRIVATE SECTOR --
THOSE HAVE BEEN HISTORICALLY
SEPARATE UNITS --
TO ENSURE CONSISTENCY AND%
SANITIZATION WE'VE ACTUALLY
MERGED THOSE TWO UNITS TOGETHER --
WE'VE PULLED OUT TO THE LEAST
MENTION FUNCTION FROM BEING
DECENTRALIZED BETWEEN THOSE TWO
GROUPS AND CREATE A CENTRALIZED
MANAGEMENT FUNCTION --
WE ATTRACTED NUMEROUS POSSIBLE
SINCE I THINK DONE JUST ABOUT
EVERY TOPIC REYES BY THE
AUDITORS --
THEY WERE BEGUN PRIOR TO THE
AUDITING FINALIZED IN THE MIDDLE
OF THE AUDIT --
TO ENSURE CONSISTENCY IN
SANITIZATION MOVING FORWARDS OF
OUR LEASES --
AND WE ALSO TO THE NUMEROUS
POINTS THAT WERE RAISED
ESTABLISH NEW FILE DOCUMENTATION
CENTER STANDARDS FOR THESE
LEASES THAT MIRROR WHAT WE'VE
BEEN DOING RELEASE PRIVATE
SECTOR ENTITY --
PROPERTY --
IN ADDITION TO THAT --
KIND OF GOING BACK YOU KNOW
FINDING BY FINDING --
DIGEST DOES FULLY AGREE THAT
LEASES LET UNDER MILITARY
VETERAN CODE SECTION TEN TWENTY
THREE MUST BE IN THE BEST
INTEREST OF THE HOME --
WE DID ISSUE A POLICY BOLTON
THAT TALKED ABOUT --
INTAKE PROCESS FOR THAT WE ARE
CLUB IN TERMS OF WHAT THE
DEFINITION FOR WHAT'S IN THE
BEST INTEREST OF THE HOME --
AND THEN AS LEASES NEW LEASES
EITHER RENEWED OR PROPOSED WE
WILL BE VETTING THOSE LEASES IN
LIGHT OF THAT DEFINITION --
SECOND AS I JUST IDENTIFIED TO
WE HAD DRAFTED SEVERAL POSSIBLE
TENS AND ESTABLISHMENT OF A
DETERMINING RENTAL RATES
DOCUMENTING THIS RENTAL RATES
DOCUMENTING AGENCY BENEFITS --
IN LEASE RECITALS --
FORMALIZING POLICY ON THE USE OF
IN THE BENEFITS --
GRADED LEASES AND THE LIKE --
TO ENSURE THAT THERE IS
ADDITIONAL SANITIZATION ACROSS
ALL OF OUR LEASES --
AND AGAIN --
ALSO ISSUED A POLICY BOLTON IN
DETAIL AS TO HOW TO DOCUMENT
THESE THINGS IN THE LEASE FILES
MOVING FORWARD --
THIRD WITH RESPECT TO THE
SPECIFIC LEASES AND IF I BY THE
STATE AUDITOR WE DO AGREE THAT
THERE ARE SEVERAL THAT HAVE
TERMS THAT ARE NOT FAVORABLE TO
THE STATE WE ARE IN THE PROCESS
OF WORKING WITH CALVET --
TO IDENTIFY THE BEST WAY OF IT --
OF DEALING WITH THEM WELL THAT'S
TERMINATION OR RENEGOTIATION --
FOURTH -- TO
HELP INSURE THAT --
THERE AREN'T ADDITIONAL --
ROGUE LEASES THAT HAPPENED
ANALYZE A STATEWIDE A REMINDER
TO DEPARTMENTS ABOUT TGS IS ROLE
IN WITH RESPECT TO LEASING --
THERE'S ALSO --
WE CALL THE GENERAL SERVICES
WERE GROUP IT'S A COMMITTEE MADE
UP OF OUR LARGEST CUSTOMERS
REPRESENTING THEIR RESPECTIVE
AGENCIES --
WE WILL PROCESS --
THROUGH THEM AS WELL SO THAT
WOULD MAKE WERE WERE WIDELY
DISTRIBUTING --
OF THOSE PULSE REMINDERS AND
THEN --
FIFTH OBVIOUSLY YES WE AGREE
THAT FUNDS --
THAT WERE LEFT UNDER A AND B. C.
TEN TWENTY THREE SHOULD
ABSOLUTELY HAVE BEEN MADE
AVAILABLE TO THE OPTICAL
VETERANS HOME AND THE WORKING
WITH CALVET TO CORRECT THAT AND
MAKE SURE PAYMENTS ARE.
ADDRESSED APPROPRIATELY MOVING
FORWARD --
WITH THAT WE'RE HAPPY TO ANSWER
ANY QUESTIONS YOU MIGHT HAVE ON
ANY OF THE AUDIT FINDINGS.
THANK YOU.
RIGHT THIS TIME WILL RETURN BACK
TO MEMBERS ON THE DíAS AND LET
ME SAY I APPRECIATE.
YOUR COMMENTS ABOUT TAKING
CORRECTIVE ACTION OBVIOUSLY
THERE WAS A NUMBER OF ISSUES
IDENTIFIED IN THE AUDIT --
THIS PAST AUDIT OR NOT IT'S
PREVIOUSLY --
MYSTERY BUG BUSCEMI YET TALKED
ABOUT --
CHANGE OVER THE DEPARTMENT IN
TERMS OF EMBRACING THE AUDITOR
HER TEAM.
AND OUR RECOMMENDATIONS AND SO.
AT THIS TIME --
YOU KNOW ONE THING YOU HAD
MENTIONED IS EVERY LEASE NOW IS
WITHIN THE FIVE YEAR --
THE FIVE YEAR TIME SPAN BUT DOES
THAT FIVE YEAR ALSO INCLUDE.
THE TERMINATION CLAUSES OUT AS
OUTLINED IN THE AUDITOR'S REPORT
AND DO WE HAVE A CRITERIA
ESTABLISHED FOR WHAT'S IN THE
BEST INTERESTS OF THE HOMES.
YEAH YES WE HAVE A DOCUMENT THAT --
TRIES TO THIS IS A PHILOSOPHICAL
DOCUMENT IS NOT THE EASIEST
THING IN THE WORLD TO WRITE.
WHAT'S IN THE BEST INTEREST OF
THE HOMES IN THE VETERANS THAT
LIVE THERE BUT WE'VE GOT ONE
THAT AT LEAST HAS --
PAST FIRST SCRUTINY WITH TGS BUT
I THINK IT'S FAIR TO SAY THAT IS
STILL WORK IN PROGRESS AND WILL
CONTINUE TO WORK TOGETHER IN
PARTNERSHIP UNTIL WE'RE BOTH.
A SATISFIED BECAUSE WE'RE GOING
TO RELY ON EACH OTHER GOING
FORWARD --
WORKING TO SAY WE WANT THIS AND
INTO THE VETERANS CAN WE GO LINE
BY LINE AND MAKE SURE THAT THIS
LEAST COMPORTS WITH THAT FAST --
THERE WAS THE FIRST PART TO YOUR
QUESTION --
IT WAS JUST EVERYTHING'S WITH A
WAS OUR FOR YOUR LEASES NOW THAT
YOU'VE DONE TO SAID YOU'RE DOWN
COMPLIANCE WITH FIVE YOUR OF THE
FOR THE FOR THE NOW HAVE YOU
BUILT IN TERMINATION CLAUSES FOR
THOSE FOR THE STATE IF THE STATE
NEEDS TO BACK OUT OR TO YES.
RIGHT AND WITH RESPECT TO THE
ENTITIES THAT --
WE'VE DISCOVERED THAT ARE JUST
SORT OF SQUATTING ON THE CAMPUS
THIS IS A VAST CAMPUS AND I AND
I I'M GOING TO TAKE THE LIBERTY
AND JUST TELL YOU.
WHEN THREE SENTENCES OF WHY IT'S
TAKING ME THREE YEARS TO GET
AROUND TO THIS?
I WAS HIRED BECAUSE I'M A
PHYSICIAN I WAS HIRED TO COME IN
AND BRING THE EIGHT VETERANS
HOMES FROM THE TWENTIETH CENTURY
INTO THE TWENTY FIRST.
AND WITH NO DISRESPECT TO MY
PREDECESSORS --
I FOUND ALL EIGHT HOMES TO BE OF
MEDIOCRE QUALITY.
THEY WERE AT TWO STARS NOT MY
DECISION.
AND I DEVOTED ALL OF MY SKILL
EXPERTISE AND TIME AND ENERGY.
TO CREATING A SYSTEM OF HOMES
AND BY SYSTEMATIZING AND
STANDARDIZING OPERATIONS ACROSS
ALL THE HOMES THAT IMPROVE
PATIENT SAFETY.
AND INCREASED EFFICIENCY BUT
ENABLED ME TO INCREASE THE
QUALITY OF CARE DELIVERED TO
THOSE RESIDENTS.
I CAN HELP VERY HAPPILY TELL YOU
NOW ALL EIGHT HOMES ARE IT FIVE
STARS.
AND WERE RECENTLY --
CITED BY US NEWS AND WORLD
REPORT IN NOVEMBER.
AS AMONG THE TOP ONE HUNDRED
NURSING FACILITIES IN CALIFORNIA
I'M VERY PROUD OF THAT I DIDN'T
DO IT MY STAFF DID OKAY WE'VE
GONE FROM TWO STARS TO FIVE STAR.
WHEN THAT HAPPENED LATE LAST
YEAR IT ENABLED THE FOR THE
FIRST TIME IN MY TEN YEAR TO
TURN MY ATTENTION TO THE MORE
MUNDANE ASPECTS?
OF THE BUSINESS.
NOW I LOOK TO SOME OF THOSE
LEASES WHEN I FIRST GOT HERE AND
WAS -- I I'M
NOT A LAWYER AND I'M NOT A
PROPERTY MANAGER BUT I WAS KIND
OF SHOCKED BY THE TERMS OF THIS.
I I WONDERED WHO HAD A GUN TO
THEIR HEAD WHEN THEY SIGN THESE --
BUT JOE.
IN CONSULTATION WITH MY LAWYERS
I DISCOVERED THAT SOME OF THEM
WE COULD DEAL WITH AND SOME OF
THEM WE COULDN'T.
WHEN THE AUDIT STARTED AROUND
THE CAMPUS ROOM BY ROOM AND I
WAS ASTOUNDED AT WHAT WE FOUND --
THE SEIU WAS USING THEM --
ROOMS IN OUR HOLDEN BUILDING --
FOR WHICH THEY PAID NO RENT --
FOR YEARS --
A MED TECH --
REPAIR COMPANY WAS USING ROOMS
NAPA COUNTY FOR THIRTY YEARS HAD
BEEN USING THE OLD I SEE YOU
WHICH WAS SET UP AS A NURSE
TRAINING STATION FORGIVE ME WHEN
I FIRST GOT HIRED AND WALK MY
THAT.
I JUST THOUGHT IT WAS PART OF
THE VETERANS HOME IT NEVER
DAWNED ON ME TO ACTUALLYINQUIRE
WHAT WAS THE LEGAL UNDERPINNING
OF THAT WHICH WAS.
NINE WE'RE IN THE PROCESS WITH
ALL FOUR OF I THINK I'VE NAME
FOR THEM OF EITHER.
REGULAR ISING THAT ARRANGEMENT
AND REQUESTING LAN A WRENCH OR
ASKING THEM TO LEAVE.
NOW WHAT SEEMS LIKE YOU
DISCOVERED A LOT.
DURING THAT TIME AND ONE OF THE
THINGS THAT WAS BROUGHT UP IN
THE LAST PANEL WAS THE ISSUE OF
LIABILITIES AND SO I KNOW FOR
INSTANCE --
THERE WAS.
REPORTED INCIDENCES OF THE
MEDIAN I BELIEVE IT WAS ALSO
IDENTIFIED IN THE AUDITOR'S
REPORTS FOR INSTANCE LIKE A NOT
KNOWING THAT THERE WAS HOT AIR
BALLOON LAUNCHES FROM THE GOLF
COURSE FOR INSTANCE AND ONE WAS
A LIABILITY ON THAT.
BUT AS YOU --
YOU ALSO MENTION NOW YOU HAVE A
PROPERTY YOU THIS POLICY DOWN.
AND COMPASS.
YOU KNOW THE LIABILITY ISSUE AS
WELL.
ABOUT A YEAR AND A HALF AGO --
THE ISSUE OF BALLOONS ON THE
GOLF COURSE CAME UP AND I WENT
OVER AND MET WITH THE GENTLEMAN
THAT MANAGES SAID AND HE SAID
WELL WE HAVE LIABILITY.
WE ALSO HAVE A CONVERSATION OF
OF THE FACT THAT --
A JUNIOR ADMINISTRATOR AT THE
AWFUL CAMPUS EIGHT YEARS AGO
DECIDED IT WAS JUST TOO MUCH
WORK FOR CALVET TO BE LOOKING
INTO HIS BOOKS. TO FIGURE OUT
THE THE PROFIT SHARING
ARRANGEMENTS SO SHE SAID SHE
SAID TO THE GOLF COURSE WILL
JUST CUT US A CHECK EACH MONTH
AND THAT'LL BE FINE.
SO -- I
DIDN'T KNOW THAT UNTIL THE AUDIT
HAPPEN AND WE'RE GOING TO SIT
DOWN THIS WEEK WITH THE GOLF
COURSE AND HAVE A AN ATTEMPT TO
RENEGOTIATE THAT LEASE.
IT WILL INCLUDE SUB LEASES.
WE DON'T DEAL WITH THE BALLOON
COMPANY THAT'S A SUBLEASE OF THE
GOLF COURSE BUT YOU HAVE TO KNOW.
IN OUR OPINION IF I MAY ANY USE
OF THE GOLF COURSE HAS TO BE
REASONABLY RELATED TO OPERATING
THAT GOLF COURSE.
AND THE SOUL PRIMARY USE OF THAT
PROPERTY HAS TO BE A GOLF
RECREATION FACILITY I THINK
ANYONE WOULD BE HARD PRESSED TO
SAY THE BALLOONS.
ARE A REASONABLY RELATED TO THE
OPERATION OF THE GOLF COURSE NOR
DO THEY COMPORT WITH OUR MISSION.
THE BALLOONS HAVE NO BENEFITS TO
OUR VETERANS AND THEIR
INHERENTLY DANGEROUS SO IT IS MY
INTENTION. TO WORK WITH THE
BALLOON COMPANY TO ASK EIGHT TO
ANOTHER PART OF THE COUNTY --
AND THE TO GIVE THEM SOME TIME
TO DO THAT.
CUT IT.
SO THANK YOU FOR COMMENTING ON
THAT I KNOW THERE ARE A NUMBER
OF EXAMPLES THAT WE CAN POINT TO
AND BUT I WILL ALLOW SOME OF MY
COLLEAGUES.
TO ASK QUESTIONS AND THEN I'LL
CONTINUE WITH MY LINE OF
QUESTIONING [inaudible]
BELIEVE.
ASSEMBLY WOMAN AROUND.
THANK YOU AND APPRECIATE AGAIN
HOW PROACTIVE YOU HAVE BEEN OF
AND AND SOME OF THESE QUESTIONS
I'M NOT SURE IF IT'S TGS OUR
CALVET THAT SHOULD BE ANSWERING
SO IN THE TWENTY THIRTEEN AUDIT
OF YON PHIL --
IT WAS REPORTED THAT AN OFFICIAL
INDEED FROM TGS ADVISE CALVET
THAT THE CONTRACT THAT IT HAD
ENTERED INTO WITH THE VENDOR WAS
ILLEGAL --
FOR SEVERAL REASONS NOT THE
LEAST OF WHICH IT WAS --
LONGER THAN FIVE YEARS.
IN THIS AUDITS --
TGS SAYS THEY BELIEVE THAT THE
LIMIT DOES NOT APPLY TO LEASES
DISCREPANCY.
YEAH YEAH I'LL I'LL FILL THAT
ONE SO --
AND I DEFINITELY PREFER THE
CONCERN THE DISCREPANCY --
THERE THERE ARE A NUMBER OF
DIFFERENT POLICING AUTHORITIES
AND STATUTES SO ONE GOVERNMENT
CODE ONE FOUR SIX SEVEN ZERO IS
ONE GOVERNMENT CUT ELEVEN ELEVEN
POINT TWO IS ONE MILITARY
PATRICK --
TEN TWENTY THREE IS --
ONE WELL FIRST USING CODE --
FOR THREE SIXTY IS ONE THERE'S
THERE'S NUMEROUS DIFFERENT
AUTHORITIES AND THEY ALL COME
APPLYING VARIOUS DIFFERENT
SITUATIONS AND CIRCUMSTANCES
SOME DEPARTMENT SPECIFIC LIKE
THE NBC SEXUALLY CITED.
SOMEWHERE GENERAL TO DDS IS
AUTHORITY --
ONE FOUR SIX SEVEN ZERO
ABSOLUTELY DOES HAVE A FIVE YEAR
PROHIBITION --
OTHER STORIES DO NOT TELL OF
ELEVEN POINT TWO DOES NOT FOR
EXAMPLE THAT ALLOWS FOR A LONG
TERM BASIS --
WHEN WE LOOK AT?
TEN TWENTY THREE WHICH IS THE
AUTHORITY THAT WE WERE
DISCUSSING WITH THE AUDITORS AND
THE REPORT --
THAT ALLOWS US TO LEASE AT TERMS
DEEMED TO BE IN THE BEST
INTEREST THE STATE BY BY THE
DIRECTOR OF THE G. S. --
OTHER TERRITORY LANGUAGE
VERTICALLY ELEVEN ELEVEN POINT
TWO DESCRIBES DURATION AS A TERM
SO WE WOULDN'T FOR THAT --
WE COULD SET A LONGER TERM BASED
ON TEN TWENTY THREE LANGUAGE.
IN ADDITION --
THE TEN TWENTY THREE STAFF EARLY
EIGHTIES --
THERE WAS AN ROLE BILL REPORT --
ON A CLEAN UP --
PROVISION THAT HAPPENED --
IN EIGHTY TWO THAT DESCRIBED
ELEVEN ELEVEN I'M SORRY TEN
TWENTY THREE AS ALLOWING LONG
TERM LEASES --
THERE'S EVEN A A LAWSUIT THAT
OCCURRED --
IN THE MID NINETIES --
WHERE THE ATTORNEY GENERAL --
ISSUE OF FILING THAT MADE THE
ARGUMENT THAT TEN TWENTY THREE
ALLOWED LONG TERM LEASING IN
ADDITION TO IT.
SEPARATE FROM ONE FOUR SIX SEVEN
ZERO SO I I MAKE THE ARGUMENT
THAT -- YES
TEN TWENTY THREE DOES ALLOW LONG
TERM LEASING --
TWO SECRETARIES POINT OUR
PREFERENCE FOR ANY LEASING OF
STATE PROPERTY GENERALLY IS IN
THE SHORT TERM THE CHANGE IN --
THAT HAPPENS ON STATE PROPERTY
AND STATE FUNCTIONS AS FREQUENT
OFF WHERE WE WOULD GENERALLY NOT
WANT TO SEE ANYTHING LONG TERM
AND AS POINT ME OUT OF MOST OF
THESE LEASES WITH PROBLEMS.
ARE EXACTLY THOSE LONG TERM
LEASES --
BUT YES ULTIMATELY I THINK
DEPEND SOME TO ALLOW FOR LONG
TERM LEASES AND SOME DO NOT
[inaudible]
OKAY -- BUT
THAT WAS JUST WITH THAT ONE
SPECIFIC.
PROPERTY --
WELL CITING WHAT SPECIFICALLY
YEAH BUT THE TECH THE TWO
THOUSAND THIRTEEN RESPONSE MAKES
THE THE DEVIOUS OFFICIAL WHO
RESPONDED CITED --
ONE FOUR SIX SEVEN ZERO SO I I
WOULD ASSUME THAT WAS THE
OPERATING AUTHORITY THAT THE
LEASE WAS ENTERED INTO --
AND AND WHICH CASE IT WOULD HAVE
BEEN SUBJECT TO THE FIVE YEAR
LIMITATION.
OKAY AND THEN --
I HAD ASKED.
ASKED BEFORE IT DOES. TO THE
AUDITOR ABOUT THE MUSEUM LEASE
AGREEMENT AND AND KIND OF CAN
YOU CLARIFY THE STATUS OF YOUR
BUILDING IN BUT WHAT DOES HAPPEN --
UPON EXPIRATION OF THE LEASE
SURE THERE WERE THERE WAS AN
AMENDMENT --
TO THAT LISA CLARIFY THAT --
IT'S PROVISION THIRTY FIVE AND I
THINK A COPY IF YOU WANT TO SEE
IT BUT ULTIMATELY WHAT IT SAYS
IS AT THE END OF THE DAY --
WHEN THE TERM RUNS OUT THE LESS
HE COMES TO US AND SAYS YOU
TODAY?
WOULD LIKE TO RENEW OR THEY
WOULD LIKE TO RIGHT NOW.
IF THEY WOULD LIKE TO RENEW AND
WE'RE OKAY WITH THAT WE CAN
RENEW.
IF THEY WOULD LIKE TO RENEW AND
WE DO NOT WANT THEM TO CONTINUE
IN THE STATE TAKE POSSESSION OF
THE PROPERTY INCLUDING THE
IMPROVEMENTS --
IF AT THE END THAT TERM THEY
DECIDE THAT THEY DO NOT WANT TO
RENEW THEMSELVES THE LEAST
OBLIGATES THEM --
TO ELIMINATE THOSE IMPROVEMENTS
OR TURN THE IT TOOK GREEN FIELD.
TO ELIMINATE THE IMPROVEMENTS
YES.
IT WOULD REQUIRE AN TO DEMOLISH
THEM IF IF THEY CHOOSE NOT IF
THEY COME TO US AND SAY YEAH
WE'VE NO INTEREST WHATSOEVER.
IN CONTINUING ON THAN WE COULD
REQUIRE THEM TO THE MOST
IMPROVEMENTS.
WEEK WE COULD ALSO BY --
AGREED NOT.
TO ALLOW THE NOT TO TEAR IT DOWN
AND THEN TO TAKE ON OWNERSHIP
AND MANAGEMENT OURSELVES YES.
WE ARE OBLIGATED IT'S GOOD POINT.
NO IT'S GOOD POINT GOOD POINT
GOOD POINT OKAY --
DOCTOR BOSS YANNI YOU OF THAT
YOU.
ACTUALLY --
TALKED A LITTLE BIT ABOUT THIS
BUT BEING A ROLE WITHIN THIS
WITH A ON'T AS PART OF THE
COMMUNITY THE WHAT WHAT DO YOU
THINK IS THE RIGHT BALANCE AND
DO YOU THINK THAT IN ORDER TO
STRIKE THAT BALANCE.
AND TO BE FAIR AND IMPARTIAL
THAT WE NEED TO TIGHTEN SOME
STATUTORY AND REGULATORY
LOOPHOLES.
HOME I'LL BE CAREFUL NOT TO
TREAD -- IN
T. YOUR YOUR AREA OF EXPERTISE --
THAT LET'S BE HONEST THIS IS THE
OLDEST AND LARGEST VETERANS
CEMETERY IN THE COUNTRY --
THE ASSEMBLY.
VETERANS HOME AND THE CEMETERY
AT THE TOP THERE IS --
IS REALLY THE OLDEST SON AND
VERY VULNERABLE AND HAS --
CIVIL WARVETERANS VETERANS OF
THE MEXICAN AMERICAN WAR.
THE IMPROVEMENTS THAT HAVE BEEN
MADE --
THROUGH THE GENEROSITY OF THE
PEOPLE IN THE TOWN AND COMMUNITY
IS --
PROBABLY NON PER I'LL IT'S
EXTRAORDINARY AND IT CEMENTS THE
RELATIONSHIP I THINK BETWEEN.
THE HOME AND THE COMMUNITY ALSO
THE MORE VOTING MEMBERS.
I THINK THEY MAKE UP ONE THIRD
OF THE ELECTORATE IN THE OUT
FILL.
AND IT'S NOT MY WISH THAT THOSE
LARGE IMPROVEMENTS GO AWAY --
WILL HAVE MORE TO SAY THAT WHEN
WE GET TO THE MASTER PLAN --
POSSIBLY AT THE END OF THIS YEAR.
BUT LET ME SAY THAT --
FOR EXAMPLE --
YOU KNOW WE WE ASSESS THE MUSEUM
OF RENT OF FIVE HUNDRED DOLLARS
A MONTH.
IN.
NINETEEN EIGHTY EIGHT THAT RENT
OVER THIRTY ONE YEARS HAS HAS
RISEN TO THE BREATHTAKINGLY --
HIGH --
NUMBER OF FIVE HUNDRED AND
EIGHTY THREE DOLLARS AND THIRTY
THREE CENTS A MONTH --
SO.
I I DON'T WANT.
TO I'M NOT IN THE LOOKING TO PUT
ANY WHILE BUSINESS SIX EXCEPT
POSSIBLY PASSED THE BALLOONS TO
MOVE DOWN THE ROAD A BIT --
BUT IT'S NOT CLEAR TO ME THAT
SOME OF THESE ACTIVITIES HAVE.
ABSOLUTE TANGIBLE BENEFITS TO
THE VETERANS FOR EXAMPLE --
WE USED TO HAVE AN ARRANGEMENT
WITH THE THEATER THAT THE
VETERANS WERE GIVEN A FREE
TICKETS AND THAT WAS RE
NEGOTIATED A NUMBER OF YEARS AGO
SO THAT.
NOW EFFECTIVELY BUT LET'S TAKE A
TAKE THE LAST THREE YEARS WE
HAVE RECEIVED OVER THE LAST
THREE YEARS SIXTY THOUSAND
DOLLARS IN RENT FROM THE THE
LINCOLN THEATRE.
BUT WE HAVE PAID THE LINCOLN
THEATRE --
IN TICKETS [inaudible]
AND OUR RENT FROM THE THEATER IS
FIFTY FIVE DOLLARS A DAY BUT
WHEN I ASKED ONE DAY. TO HAVE
THE ARMED FORCES BANNED FROM
TRAVIS AIR FORCE BASE CALM DOWN
AND GIVE A CHRISTMAS CONCERT TO
THESE VETERANS.
I'M CHARGED OF A FEE OF JUST SHY
OF FIVE THOUSAND DOLLARS AND I
HAD TO CANCEL THAT.
THAT CONCERT FOR THE LAST TWO
YEARS.
WE CLEARLY HAVE WORK TO DO WITH
THE MANAGEMENT OF THE MUSEUM AND
THE THEATER THE THEATER
MANAGEMENT HAS BEEN --
EXTRAORDINARILY DIFFICULT FOR ME
TO WORK WITH.
YEAH THAT SEEMS --
VERY DISHEARTENING AND I WAS
JUST I WAS ACTUALLY LOOKING AT
THAT AGREEMENT IT SEEM LIKE THAT
PROVISION WAS REMOVED IN. TWO
THOUSAND AND TWELVE CAN YOU
COMMENT ON WHY WE WOULD WHY THAT
WAS EVEN REMOVED OR HOW THAT
KEEPING CAME ABOUT.
IN TERMS OF I'M SORRY I I
NEGLECTED.
TO DAVE GIRARD --
IS SO THE DEPUTY --
FOR CONTRACTS AND PROCUREMENT
AND THOMAS MARTIN IS THE
ASSISTANT TO THE HOMES MANAGER.
THE UNDERSECRETARY THANK YOU TOM
PLEASE.
HI AGAIN THOMAS MARTIN --
AT DROPPED IF YOU DROP PERSONS
PLANNING IS.
THIS IS A COMMON REFRAIN IN THE
IN HIS HOUSE --
AS TO MONNING --
WE WEREN'T AROUND AT THAT TIME
WE'RE NOT SURE WHY IT WAS
NEGOTIATED AWAY IN.
TWENTY TWELVE IT'S SO I CAN
CERTAINLY SAY SOME FORTUNE AS A
SECTOR SAYING --
THAT ALLOW THIS BENEFITS TO OUR
RESIDENTS WERE ELIMINATED --
BUT WE'RE NOT AWARE OF THERE'S
THERE'S NO DOCUMENTATION EXPLAIN
WHY THE DECISION WAS MADE.
OR WHY THIS ONE IS BENEFITS
WOULD BE GIVEN UP --
SPASO AS PART OF A AS
SETTLEMENTS --
THAT BEEN NEGOTIATED THAT YEAR
BUT AGAIN THE DETAILS CERTAIN
UNFORTUNATELY LOST TO US AT THIS
TIME.
IT JUST DOESN'T MAKE SENSE TO ME
OF 10% OF THE SEATS WERE SET
ASIDE FOR VETERANS AND THEIR
MEMBERS --
WHY WE WOULD NEGOTIATE THAT
BENEFIT AWAY FOR VETERANS?
AND YOU KNOW ADDITIONALLY TO
YOUR POINT MR AMBOS COUNTY YOU
KNOW.
BEING A GOOD PARTNER IF YOU
WANTED A HOST EVENTS FOR
VETERANS AND YOU'RE BEING
CHARGED.
FULL PRICE WHEN [inaudible]
YEP.
THIS ARRANGEMENT IS ACTUALLY
COSTING YOU MORE MONEY THAN IT
IS ACTUALLY BENEFITING ANY OF
THE VETERANS.
WITH A POINT TO A NUMBER OF
THESE AGREEMENTS WITH THESE LONG
TERM LEASES --
ONE OF THE OTHER THINGS I WAS
LOOKING AT ALSO WAS A EVEN WITH
THE FIRE DEPARTMENT WHERE THEY
CHARGE CAL THAT SEVEN HUNDRED
AND THIRTY THOUSAND DOLLARS.
BUT YET TGS WAVE THE THIRTY
THOUSAND DOLLARS THE THAT THEY
WOULD.
THAT THEY WOULD CHARGE THEM I
DON'T KNOW IF YOU WANT TO
COMMENT ON THAT OR MAYBE D. G.
S. CAN COMMENT ON THAT.
BUT IT'S SEVEN THIRTY AND THIRTY
THOUSAND DOLLAR WAY WHEN THEY'RE
CHARGING YOU.
YOU KNOW THREE QUARTERS OF A
MILLION DOLLARS --
DOESN'T SEEM APPROPRIATE.
YEAH AND AND THIS IS WHERE AS
SECRETARY SAID THAT REFRAIN OF
THE POOR DOCUMENTATION AND NO
ONE BEING AROUND MAKES IT
DIFFICULT --
I MEAN THE THERE IS THERE IS THE
ORAL HISTORY I'LL SAY IT THAT
WAY -- BUT
WHETHER THAT ACTUALLY IS IS I
COULD NOT A DIFFERENT STORY --
SO AND ALL THAT BUT AT THE RISK
OF SOUNDING WILL SPECULATIVE I
MEAN GOING BACK TO THE FIRST
POINT YOU MADE ABOUT THE
RENEGOTIATION OF THE THE TICKETS
WILL.
TWO THOUSAND TWELVE THE OPERATOR
OF THE THEATER WENT BANKRUPT AND
SO THERE'S A BANKRUPTCY
PROCEEDING THERE'S A SETTLEMENT
NEGOTIATION THEIR ORAL HISTORY
IS THAT PART OF THAT --
NEGOTIATION OR TO MAKE IT MORE
PROFITABLE TO RUN THEY NEEDED TO
MAXIMIZE REVENUE AND SO THE
OTHERS THOSE LITTLE TINY TIDBITS
OF HANDS THAT WHETHER THAT WAS A
JUSTIFIABLE DECISION WHEN I WAS
REALLY JUST SORT OF WENT WITH
THAT ACTUALLY WHAT HAPPENED A
LITTLE HARD TO TELL --
AS IT RELATES TO THE THE THE
FIRE TRAINING YOU KNOW ABOUT THE
AGAIN ORAL HISTORY IS THAT THERE
THERE IS A IT'S MEANT TO BE AN
OFFSET ULTIMATELY AGAINST WHAT
WITH THE STATE WOULD NORMALLY
PAY FOR SOME OF THOSE FIRE
PROTECTION SERVICES --
BUT AGAIN IT'S IT'S THIS IS THIS
IS ALL THE MINUTE ANSWERS WHAT
HAPPENED BACK THEN WHEN THOSE
THINGS WERE NEGOTIATED.
YEAH I JUST IT'S IT'S SHOCKING
BECAUSE SEEMS LIKE A LOT OF
THESE WE NEGOTIATIONS ARE THESE
AMENDMENTS OBVIOUSLY --
BENEFIT THE BUSINESS VENDORS AT
THE EXPENSE OF OTHER VETERANS OF
THE HOMES AND YOU KNOW WE KNOW
THAT YOUNG FILL IN THESE HOMES
RE DESIGNATED TO BE PRIMARILY --
SERVICING VETERANS AND SO AS WE
CONTINUE TO MOVE FORWARD HOW DO
WE RENEGOTIATE THESE --
LONG TERM LEASES SO THAT THEY DO
BENEFITS --
ORAL TO GO WHICH IS SERVING
VETERANS.
AND A YOU KNOW I I AM A LITTLE
DISHEARTENED WHEN HERE FIFTY
YEAR LEASES I I GET THE CAPITAL
COSTS AND MAKING THAT PLAY OUT
BUT WHEN THOSE BUSINESS VENDORS
ARE --
PULLING BACK FROM OFFERING YOU
KNOW 10% OF THEIR AVAILABLE
SPACE IN THE THEATER OR FREE
ADMISSION AT THE MUSEUM.
YOU KNOW.
IT DOESN'T SEEM VERY BENEFICIAL
FOR THE VETERANS ARE FOR THE
STATE OF CALIFORNIA WHEN WE'RE
ASSUMING ALL THE LIABILITY FOR
THIS MOVING FORWARD --
I THINK THERE'S A LOT OF
IMPROVEMENT THAT NEEDS TO BE
DONE AND YOU KNOW I KNOW YOU
GUYS COMMENTED IS.
A LITTLE ON SOME OF THE THE
PROCEDURAL THINGS THAT YOU WERE
DOING THE POLICIES AT YOUR
EMPLOYMENT IN BUT WHAT
ADDITIONALLY TO WE NEED TO DO TO
HELP ENSURE THAT WE HAVE THE
BEST INTERESTS OF VETERANS
MOVING FORWARD.
HOW CAN THE STATE ON OUR SIDE AS
LEGISLATORS WHETHER THAT'S DONE
THROUGH STATUTE AND THEN WAS OR
WHEN WAS TALKING ABOUT A COUPLE
OF GOVERNMENT CODES?
HOW CAN WE DO WHAT WE DO ON OUR
SITE ACTUALLY HELP YOU --
WITH BECAUSE THAT WE HAVE PLEASE
YOU COULD THE P. --
TO TO ACQUIRE A SMALL AUDIT --
UNIT IN CALVET --
THAT -- THEY
WOULD BE ABLE --
TO IT'S IN THE BUDGET --
WE WOULD BE ABLE --
TO BEFORE WARNED OF SOME OF
THESE ISSUES AND WOULD BE ABLE --
TO BETTER ABLE AS PER THE ORDERS
REQUEST OF US TO RIDE HERD OVER
WITH THE PROPERTIES THAT WERE
MANAGING.
ON THAT WOULD BE AT THAT WOULD
BE AN ENORMOUS HELP TO ME.
SO WE WILL LOOK INTO THAT AND
THEN I KNOW MR VOTE VOEPEL IN
THE THE PREVIOUS PANEL ACTUALLY
ASKED ABOUT POTENTIAL LITIGATION
IS THAT SOMETHING THAT.
THE DEPARTMENT WOULD ENTERTAIN
KIND OF MOVING FORWARD AS WELL.
WITH THESE --
BUSINESS MATTERS.
I I'M I'M SORRY I I YOU'RE
REFERRING TO AT LITIGATION TO TO
TERMINATE --
TERMINATOR JUST AMEND OKAY --
YES WHICH SAYS A SECTOR
MENTIONED WE ARE WE'RE WORKING
WITH TGS TO SEE WHAT OUR OPTIONS
WHAT OPTIONS ARE AVAILABLE TO US.
TO TERMINATE IN AND IN THOSE
CASES WHERE WE CAN --
AND RENEGOTIATE AND OTHER KEY.
OBVIOUSLY THE WILLINGNESS OF THE
THE LASSIES --
IN.
EIGHT JUST BECAUSE JUST BECAUSE
TODAY WE DON'T NECESSARILY AGREE
WITH THE THE TERMS ARE RENTAL
RATES FOR ANY OF THOSE ASPECTS
DOESN'T NECESSARILY MEAN IT'S
NOT A VALID AGREEMENT --
THAT WE WE MAY BE BOUND TO FIVE
AGAIN THAT'S PART OF THE
RESEARCH THAT WE'RE DOING TO
FIND OUT --
TO I I BELIEVE IT WAS --
ONE OF THAT WHEN THEY ALLEGE
THIS POINT --
TO SEE IF THERE'S IF THERE'S A
POTENTIAL WAY TO AVOID THE
AGREEMENT OR CHANGE IN SOME WAY
ESPECIALLY FOR THOSE AGREEMENTS
ARE TAKING AWAY BENEFITS
BENEFITS FROM VETERANS --
WITH LIKE WE TALKED BUT I NEVER
SIR WHAT HAS ONE ADDITIONAL
QUESTION THE REMOVED TO CENTER
ARCH LETTER THAN TO SENATOR DODD --
REMEMBER THAT I GUESS I COULDN'T
MAKE IT KIND OF LIKE I DID HAVE
A BILL ON THE AUDITOR AND
PERHAPS WE CAN.
TRY THAT ONE AGAIN.
OF SO -- ONE
OF THE DISTURBING THINGS ABOUT
TRYING TO REMEMBER EVERYTHING
THROUGH HORRELL ORAL HISTORY IS --
YOU KNOW AS SOON AS THOSE PEOPLE
LEFT WE HAVE NO IDEA REALLY WHAT
HAPPENS SO HOPEFULLY GOING
FORWARD WE'RE NOT JUST TALKING
ABOUT PUTTING POLICIES IN PLACE
BUT ALSO.
MAKING SURE THAT THE RECORD
KEEPING IS --
ACCURATE AND YOU TALK ABOUT WHAT
HAPPENED AND TWENTY TWELVE THAT
YOU TOOK AWAY THAT THAT VETERANS
BECAUSE THE COMPANY RUNNING
THEATER DECLARED BANKRUPTCY.
BUT THE WORLD MY UNDERSTANDING
IS THERE WAS ALSO A BIG STATE
INVESTMENTS A FEW YEARS BEFORE
TO TRY TO KEEP THE ORDER SOLVE
IT IS THAT ACCURATE.
YEAH.
THAT'S GOING BACK INTO OUR
HISTORY AND I'M A LITTLE ON THAT.
I WAS IT WAS --
TWO THOUSAND FOUR BUT THE POINT
IS THERE THERE HAS CERTAINLY
BEEN SOME STATE INVESTMENT SO
THEN A FEW YEARS LATER TO GIVE
AWAY -- ALL
THE THE SEATS AT LEAST DOESN'T.
MAKE SENSE BUT REALLY THE THE
QUESTION I HAVE BECAUSE I KNOW A
LOT OF MY COLLEAGUES HAVE OTHER
QUESTIONS AS AS FORGIVE DOCTOR
BOSS YANNI.
HOW DOES THIS AUDIT --
INFORMED --
THE MASTER PLAN AND A LOT OF US
ARE.
VERY ANXIOUS TO SEE --
WHAT'S GOING TO BE IN THERE AND
HOW WE MOVE FORWARD BUT ARE
THESE FINDINGS GOING --
TO HELP MOVE THIS FORWARD.
CHAU EGGMAN LET ME BE CLEAR
THERE'S TWO THINGS AFOOT THAT
AYE AYE TWO THINGS TO
OBLIGATIONS I HAVE TO PRESENT TO
THE LEGISLATURE BY THE END OF
THIS YEAR ONCE ISN'T IS A NEEDS
ASSESSMENT.
AND THAT IS.
WE WERE TASKED BY THE
LEGISLATURE TO START THINKING
AHEAD TEN TWENTY AND THIRTY
YEARS TO SEE HOW IS THE VETERAN
POPULATION CHANGING WHAT ARE THE
NUMBERS THAT WILL BE COMING OUT
US WHERE WILL THEY BE COMING
FROM.
WHAT AGES WILL THEY HAVE WHAT
WHAT --
MEDICAL BURDENS WILL THEY BEAR
THE THE VETERANS THAT ARE COMING
WE ALREADY START TO SEE SOME OF
THE EVIDENCE COMING THROUGH --
WE HAVE MEETINGS --
MONTHLY IT'S NOW GETTING TO BE --
MASTER PLAN SO IT --
AND I'LL GIVE YOU A LITTLE BIT
MORE ON THAT IN A SECOND --
WE ALREADY START TO SEE SOME OF
THE TRENDS THE THE FOR THE
VETERANS THAT I'M GONNA BE
TASKED WITH TAKING CARE OF FOR
MAKING SURE THAT MY SUCCESSORS.
WILL BE WELL EQUIPPED ARE NOT
WORLD WAR TWO VETERANS THESE ARE
NOT -- THESE
ARE THE THE THE COMING WITH A
MUCH MORE HEAVY MEDICAL BURDEN --
THE COMING WITH SIGNIFICANTLY
MORE DIAGNOSIS ON THE WORLD WAR
TWO AND KOREAN VETS --
CAME AT US WITH AND MANY OF THEM
HAVE.
ARE GOING TO MAKE DEMANDS ON US
THAT ARE GOING TO BE VERY
DIFFICULT. TO TO MEET TO THESE
ARE MENTAL HEALTH DEMANDS --
RELATED.
TO THE EFFECTS THAT THEY SUFFER
AS A RESULT OF THE MODERN BATTLE
BATTLEFIELD WHICH WE ARE
BECOMING INCREASINGLY AWARE IS
LETHAL TO THE YEMEN BRAIN.
AND SO MANY OF THE INJURIES ARE
NOT SOMATIC BUT MENTAL AND
PSYCHOLOGICAL.
SO -- HAVING
SAID THAT THAT THE SO THAT'S
THAT NEEDS ASSESSMENT I WILL
PRESENT TO YOU.
THE MASTER PLAN IS IN A SENSE A
RESPONSE TO THE NEEDS ASSESSMENT
IT'S GOING TO BE LET'S LOOK AT
OUR EIGHT HOMES.
AND I'M ALREADY STARTING TO SEE
THE EVIDENCE RIGHT NOW IN THIS
LAST WEEK WE'RE JUST STARTING TO
LOOK AT NEEDS ASSESSMENTS THAT
WERE DONE BY FIVE SISTER STATES.
I JUST CAME BACK FROM A NATIONAL
MEETING WHERE WE HAD THESE
CONVERSATIONS I'M CURIOUS TO SEE
WHAT THEY ARE LEARNING --
WE'RE GOING TO LOOK AT DO WE
HAVE THE RIGHT NUMBER OF
FACILITIES ARE THEY IN THE RIGHT
PLACES I'M ALREADY STARTING TO
DEVELOP CRITERIA AND LET ME
SHARE THEM WITH YOU.
I THINK ANY VETERANS HOME THAT
WE RUN.
SHOULD MEET THE FOLLOWING FOUR
OR FIVE CRITERIA.
IT SHOULD BE ACROSS THE STREET
FROM A VA HOSPITAL.
I HAVE VETERANS IN YON PHIL AND
AND AND IN REDDING WHERE I HAVE
TO PUT IN A BUS AND THEY HAVE TO
DRIVE THREE HOURS ONE WAY TO
EITHER PAOLO ALTO MARTINEZ MAY
THIRD -- OR
FOR MILEY IN SAN FRANCISCO THEIR
NEAREST VA.
OF YOU KNOW OF A SET OF FIVE SIX
HOUR ROUND NOW A VETERANS HOME.
OUR VETERANS HOMES WERE PLACED
IN GREAT POSITIONS COM I THINK
WHEN THEY WERE BUILT.
WE'RE GONNA LOOK AHEAD AND SEE
DOES IT MAKE SENSE THAT THEY ALL
BE WHERE THEY ARE.
THE I THINK THEY SHOULD BE CLOSE
TO A VA HOSPITAL I THINK THEY
SHOULD BE IN A VETERAN RICH --
DENSITY AREA I THINK THAT THEY
SHOULD HAVE GREAT INFRASTRUCTURE
WHERE WE CAN --
TREAT THEM --
MORE EASILY IN THE COMMUNITY AND
THE DOCTORS NURSES AND ENTRY
LEVEL PHARMACISTS AND CLINICIANS
AND THERAPISTS SHOULD ALL BE
ABLE TO LIVE WITHIN A REASONABLE
DISTANCE.
OF THE HOMES WHERE THEY WORK
IT'S NOT EXACTLY THE CASE IN
WEST LA WHERE MOST OF MY RESUME --
MOST MY EMPLOYEES HAVE TO TRAVEL
GREAT GREAT DISTANCES --
SAME THING WITH NAPA IT'S A VERY
DIFFICULT REGION FOR ENTRY LEVEL
EMPLOYEES. TO LIVE ON THE SALARY
THAT WE GIVE THEM.
SO WE'RE STARTING TO LOOK I
THINK -- THE
MODEL FOR TEN TWENTY AND THIRTY
YEARS FROM NOW MAY BE A LITTLE
DIFFERENT THAN THESE LARGE HOMES.
BUT I WANT TO GIVE TOO MUCH AWAY
AND I'M.
UNTIL I START PUTTING THIS STUFF
TOGETHER WERE STILL IN THE
RESEARCH PHASE OF THIS OF THE
WRITING FACE.
THANK YOU I THINK THOSE ARE --
SOMETHING THAT MAKES SENSE.
DOES MOVE TO SENATOR --
ARCHULETA.
THANK YOU MISTER CHAIR --
THANK YOUR PRESENTATION EACH AND
EVERYONE OF YOU --
AND SCHECTER RIGHT LIKE COMMENT
AND COMPLIMENT YOU RENTS FIRST.
YOU TOOK CARE OF THE HEALTH AND
WELFARE OF THESE VETERANS THAT
WAS PRIOR --
I ALREADY TO YOU YOU WENT AFTER
THAT.
AND YOU MAKE SURE THEY WERE
TAKEN CARE OF AND I AND I
SINCERELY THANK YOU FOR THAT.
NOW WE COME TO THE BUSINESS AT
HAND WHICH IS TAKING CARE OF THE
FACILITIES.
AND YOU HAD MENTIONED THAT THERE
EIGHT FACILITIES.
AND YOU FOUND THAT THEY'RE ALL
INDEPENDENT.
SO I'M AND YOU FOUND THAT THEY
WERE INDEPENDENT AS YOU REALIZE
THAT YOU SHOULDN'T BE THEY
SHOULD BE UNDER ONE UMBRELLA.
ONE SUPERVISOR WANT SECTARIAN
THAT YOU CHAU CONSEQUENTLY MY
QUESTION IS HOW ARE YOU GOING TO
BRING BACK TOGETHER WHAT IS YOUR
PLAN OF ACTION. FOR BETTY BACK
ON BOARD THANKS TO THE
LEGISLATURE TWO YEARS AGO WHEN
DID WE CREATE OF A SYSTEM OF
HOMES.
IT USED TO BE THAT THE MILITARY
VETERANS CODE RED THERE WAS A
CHAPTER FOR YON PHIL THERE'S A
CHAPTER FOR CHULA VISTA AND SO
ON BUT TWO YEARS AGO THE
LEGISLATURE ALLOWED ME TO AMEND
THE MILITARY VETERANS CO JUST
SAY.
VERY SUCCINCTLY THERE SHALL BE A
SYSTEM OF VETERANS HOMES IN
CALIFORNIA AT YON PHIL READY
FRESNO WEST LA AND SO ON BUT IN
THAT VERY SIMPLE SENTENCE SAID
IN A ASIAN IN ALL ASPECTS OF
CLINICAL CARE WE HAD.
THIRTY THIRTY FIVE
STANDARDIZATION TEAMS
REPRESENTED BY PEOPLE THAT
EVERYONE OF THE EIGHT HOMES ARE
STANDARDIZED EVERYTHING EXCEPT
THE BUDGET THAT WOULD BE NICE TO
HAVE A STANDARDIZED BUDGET WHERE
I COULD.
MANAGE THE HOMES AS A UNIT AND I
DO HAVE ONE DEPUTY SECRETARY
KOBE PETERSON --
FOR YOUR AND KOBE.
WHOSE --
RESPONSIBLE FOR RUNNING THE
HOMES FOR ME.
AND ALSO I'D LIKE TO FOLLOW UP
WITH OBVIOUSLY YOU'VE YOU'VE
SHARED I'M SURE YOU HAVE WITH
ALL YOUR DIRECTORS ACROSS THE
STATE OF CALIFORNIA THE AUDIT.
FINDINGS BECAUSE THINGS ARE --
MIGHT BE SIMILAR FROM ONE TO THE
OTHER LITTLE DIFFERENT FROM ONE
TO THE OTHER BUT CERTAINLY --
LEASES AND AND AND PARTICIPATION
COMMUNITY PARTICIPATION AND
ACCEPT REST SO I'M I'M HOPING
THAT THAT YOU HAVE A MEETING.
WITH EVERYONE OF YOUR DIRECTORS
AND YOU SIT DOWN WITH THEM SURE
THEY UNDERSTAND.
THAT -- YOUR
PLAN YOUR COMMAND YOUR CHANGES
ARE EFFECTIVE IMMEDIATELY --
FROM THIS DAY FORWARD AND THIS
WILL BE THE FIRST TO ACKNOWLEDGE
THE THE THE AUDIT THAT CAME UP
FOUR YEARS FROM NOW.
AND EVERYTHING WAS WAS ADDRESSED
THE PLAN ESPECIALLY AND AT SOME
OF THE OTHER THINGS.
BUT MORE IMPORTANTLY THAT WE PUT
OUR OUR ADDUCTION ROW AND AND WE
KNOW EXACTLY WHERE THE MONEY'S
GOING HOW WE ARRIVE TO IT AND
EVERYBODY WAS EQUAL.
IN PARTICIPATION AND TALK ABOUT
PARTICIPATION I I'M REALLY SAD
TO HEAR THAT.
OUR VETERANS CANNOT SIT DOWN AT
THE THEATER --
UNLESS THE TICKET IS BOUGHT FOR
THEM AND AT THE END IT TURNS OUT
THAT IT MAY BE TURNED AWAY OR
WHATEVER IT MIGHT BE BUT TO
CHARGE -- OR
TO US TO RECEIVE THIRTY THOUSAND
DOLLARS A YEAR LESS THAN WHAT WE
TAKE IN OR VICE VERSA WHATEVER
IT MIGHT BE I MEAN.
WHERE IS THE PARTICIPATION OF
FROM THE DIFFERENT ENTITIES TO
REALIZE THAT WE'RE ALL HERE FOR
THE SERVICE IN THE BEST INTEREST
OF OUR VETERANS?
WE NEED TO BRING THEM BACK AND
IF I MAY JUST WANT TO CORRECT
SOMETHING THAT WAS SAID FROM THE
DESK OF THE MUSEUM DOES GIVE
FREE ENTRY TO THE VETERANS AFL --
AND THEY DO.
I'M NOT SURE WHETHER IT'S FREE
TO ANY VETERAN BUT IT CERTAINLY
TO THE VETERANS AT THE AT THE
HOME IS WANT TO CORRECT THAT FOR
THE RECORD.
AND PLEASE CONTINUE WITH THE MY
COMMENT ABOUT YOUR INDEPENDENT
YEAR PLAN TO BRING UNDER
EVERYONE UNDER YOUR COMMAND AND
HOW YOU --
PLAN TO DO THAT SHOW --
THOMAS CAN ELABORATE BUT IN
DECEMBER WE SENT OUT A DIRECTIVE
TO ALL EIGHT HOME ADMINISTRATORS
WE CALL THEM.
THE HOME ADMINISTRATORS ALL
EIGHT OF THEM ARE THEMSELVES
GOVERNMENT.
GOVERNOR'S APPOINTEES AND THEY
WERE INSTRUCTED THAT UNDER NO
CIRCUMSTANCES COULD THEY
ENTERTAIN THE LEASES OR LICENSES
THEY COULD NOT LET THEM OUT --
WITHOUT BEING CLEARED BY MYSELF
OR MY DIRECT --
REPRESENTATIVE --
AND I THINK THAT THAT MESSAGE
HAS GOTTEN CARE SO GOING BACK TO
THESE PLACES SHOULD THEY BE CO
SIGNED.
BY -- TGS
AND YOURSELF.
I GOT A MAIL CAN BE FOUR HUNDRED
THEY ALSO LEASES BUT I'M YOU
KNOW JUST A HANDFUL YEAH SO YOU
SHOULD BE ABLE TO REVIEW OF BOTH
TOGETHER AND COME TO AN
AGREEMENT.
BEFORE THEY GO OUT.
SO YEAH SO --
THE WAY THE PROCESS WORKS IS YES
IF I LEASES BEING LET UNDER
DIGEST WITH ALREADY WE
TECHNICALLY THE ONES THAT HAVE
THE SUCH WITH OR TO LET THE
LEAST IN THE FIRST PLACE.
THEY WITH A CLIENT IN THIS CASE
WE WORK TOGETHER IT WOULD BE THE
THE HOME GET SOMETHING OUTSIDE
OF THAT NORMAL PROCESS IN WHICH
CASE AND YES ABSOLUTELY IT
SHOULD HAVE GONE THROUGH THE
NORMAL.
PROCESS I JUST DESCRIBED AND I
THINK THE MORE TALK ABOUT
OVERSIGHT LITTLE MUTUAL
OVERSIGHT BETWEEN BOTH ENTITIES --
WORKING TOGETHER IS WHAT WE'RE
HOPING TO SEE THAT ONE SHOULD
QUESTION ONE ONE SHOULD QUESTION
THE OTHER IN A COURSE THE BUCK
STOPS WITH SECRETARY VETERANS
AFFAIRS SO --
WITH THAT.
EVERY LEE SHOULD BE LOOKED AT
REVIEWED ACKNOWLEDGED AND AS A
STATE PASSED THE MUSTARD JOE.
I HOPE THAT WE'RE GOING IN THAT
DIRECTION IN THE FUTURE AND I
AND I CONGRATULATE YOU FOR WHAT
YOU'VE DONE IN THE PAST.
ESPECIALLY THE SERVER REPRESENT
OUR VETERANS AND THEIR CARE WELL
ONE OF THE THINGS WE'VE BEEN
ABLE -- TO
CREATE AND IT WOULD HAVE BEEN
POSSIBLE WITHOUT ELAINE HOWLS --
OFFICE AND AND ALL WE HAD NO
RECORD OF ANY OF OUR LEASE
SEASON ARE ARE --
DAY USE AND ARE SQUATTERS AND
AND EVERYONE ELSE BUT NOW WE
HAVE AND WE COULD HAVE BROUGHT
THIS WELL ACTUALLY I THINK THERE
IT IS THAT BINDER.
THAT HAS EVERY SINGLE LEASE AT
THAT --
ARRANGEMENT MINOR AND I DIDN'T.
GOOD THANK YOU THANK YOU WE'RE
GONNA MOVE TO SENATOR DODD THAN
TO ASSEMBLY MEMBER GLORIA FIRST
WELL I THINK IT'S IMPORTANT THAT
WE MOVE FORWARD AND I REALLY
SUPPORT OF THE WAR YOU KNOW
WHERE WE'RE GOING MOVING FORWARD.
BUT I GOTTA TELL YA THAT I'M
GETTING A LITTLE TIRED OF THE
NARRATIVE --
THAT SOMEHOW EVEN AS A STATE
REPRESENTATIVE THAT SOMEHOW A
SMALL NONPROFIT IN YOUR BILL
CALIFORNIA SCHOOLED.
THE DEPARTMENT OF VETERANS
AFFAIRS OR SCHOOLED DG HESS.
I MEAN THE REALITY IS --
THEY GO THROUGH A PROCESS
THEY'VE GOT A BANKRUPTCY I DON'T
I WASN'T INTIMATELY FAMILIAR
WITH THAT.
THOSE ARE ALL CIRCUMSTANCES BUT
IT GETS BACKED NOT TO BLAME
BEING -- THE
NONPROFIT FOR THESE TICKETS BUT
PERHAPS THAT WAS THE BEST THING
THE TGS OR THE DEPARTMENT OF
VETERANS AFFAIRS COULD NEGOTIATE
AT THAT GIVEN TIME.
BUT MAYBE THERE SHOULD HAVE BEEN
AN HOUR OR SOMETHING IN THREE
YEARS IF YOU'RE A FINANCIAL
HEALTH IMPROVES --
THAT WE'RE GOING TO GO BACK TO
GIVING THE VETERANS --
WHAT THEY NEED IN AS YOU POINTED
OUT SENATOR THEY RICHLY DESERVE
AND I THINK THAT THERE PROBABLY
AT THAT STAGE RIGHT NOW?
IN IT I GUESS WHAT I JUST WANT
TO SEE IS THAT WE NOT --
TAKE THIS FROM THE SUBLIME TO
THE RIDICULOUS I I APPRECIATE
THOSE REMARKS CENTER THANK YOU --
BUT I THINK THAT THAT BOLSTERS
WHY ARE --
THE THEY ARE IMPEDIMENTS TO
ROUTINE RENEGOTIATION OF THINGS
THAT.
THINGS CHANGE I TOTALLY DISAGREE
WITH YOU I TOTALLY DISAGREE WITH
YOU ON THAT LONG TERM LEASES ARE
APPROPRIATE WHEN YOU'RE PUTTING
INVESTMENT IN THE HOME.
WHEN YOU'RE PUTTING THAT THERE
IT'S AN AGREED UPON BEFORE YOU
DO ANYTHING TGS IS INVOLVED WITH
THAT THEY OBVIOUSLY WERE THE CAL
THAT WAS AND --
INVOLVED WITH THAT IN A LONG
TERM LEASE WAS THE ONLY WAY THAT
THAT WAS EVER GOING TO HAPPEN
AND I'M SORRY.
TGS DEALS WITH LEASES ALL THE
TIME -- FOR
REAL ESTATE THROUGHOUT THE STATE
ENTIRE STATE OF CALIFORNIA --
THAT I GUARANTEE YOU.
WILL HE JUST MADE IT CLEAR THAT
THEY DO HAVE EXEMPTIONS FOR
LONGER TERM LEASES BUT IF YOU
TAKE A LOOK AT OTHER TYPES OF
LEASES IN COMMUNITIES.
OUTSIDE OF CAL BET THEY
NEGOTIATE LEASES EVERY SINGLE
DAY SO YOU CAN DO LONG TERM
LEASES TO PUT IT OFF ON THE FACT
THAT THAT'S THE ISSUE --
REALLY NEGLECTS THE FACT THAT IN
PREVIOUS WHAT NOT NOT YOU GUYS
WITH THE PREVIOUS ADMINISTRATION.
CALVET INDEED YES DROPPED THE
BALL SO HOW THEN PLEASE EXPLAIN
TO ME HOW THEN DO I THEN GO BACK
TO THE THEATER MANAGEMENT AND
SAY IT'S BEEN SEVEN YEARS NOW
FURTHER ON HOW DO I LOOK THAT'S
TAKEN HOW DO WE TAKE ANOTHER
LOOK AT THIS NOW.
I HAVE NO.
NO RECOURSE BUT THAT'S NOT THEIR
FAITH.
IN WHAT YOU'RE SAYING IS IS
PREVIOUS STATE DEPARTMENTS GOT
SCHOOL BY THIS LITTLE TINY
NONPROFIT.
IN YOUR BILL THAT'S ALMOST THAT
SOUNDS RIDICULOUS TO ME.
BUT I WILL GUARANTEE YOU THIS
ASSEMBLY MEMBER --
CURRY AND I IF YOU WANT THIS
EVEN INVOLVED.
WILL GO WITH YOU TO THOSE NOT
PROFITS.
IT TALK ABOUT THINGS THE BENEFIT.
OUR VETERANS AND MAKE SURE THAT
OUR VETERANS GET THEIR FAIR
SHARE AND MAKE SURE THAT.
EVERY LEASE --
HERE IS THAT IF WE CAN BE
HELPFUL IN THAT REGARD WE'D LOVE
TO DO IT BUT SIRIUS YEAH I
APPRECIATE THOSE COMMERCENTRE
DAUGHTER ONE OF THE THINGS YOU
HAD MENTIONED WAS.
YOU KNOW IF FOR INSTANCE WE'RE
TALKING ABOUT THE THEATER THE
THEATER IS IN BETTER FINANCIAL
HEALTH.
PERHAPS WE CAN RENEGOTIATE SOME
THESE PROVISIONS BECAUSE IN
TWENTY TWELVE THE SETTLEMENT WAS
THEY REMOVED.
THE FREE TICKETS FOR THE
VETERANS RIGHT AND IF THEY'RE IN
A BETTER FINANCIAL STATE WHY DO
WE NOT REINSTITUTE THAT SO
THERE'S ACTUAL BENEFIT TO
VETERANS I THINK IS WHAT YOU'RE
SAYING.
THAT'S CORRECT.
TOTALLY RIGHT OKAY WHY
APPRECIATE THAT I THINK --
FROM CAL THAT'S PERSPECTIVE
THEY'RE JUST HAVING A LITTLE BIT
OF FRUSTRATION BECAUSE THEY FEEL
LIKE THEY'RE LOCKED INTO THESE
LONG TERM.
LEASES WITHOUT THE ABILITY TO
SOME OF THE PROVISIONS
ESPECIALLY AS WE HELP VETERANS --
CONTINUE TO MOVE FORWARD AND SO
I GUESS THAT'S REALLY WHAT WE'RE
TRYING TO DO IS HOW DO WE
BENEFIT VETERANS AND MAKE SURE
THAT THAT VETERANS ARE
BENEFITING FROM ALL OF THESE
LEASES AND WHAT'S THE BEST WAY
FOR US TO DO THAT I HEARD
EARLIER TESTIMONY THAT YOU WERE.
ACTUALLY LOOKING AT LITIGATION
TO POSSIBLY MOVE THROUGH THAT I
KNOW -- THE
SIR WHEN ASKED EACH YES ABOUT
THE FIVE YEAR LEASE AND MOVING
FORWARD TO HAVE ADDITIONAL
QUESTIONS ON THAT BUT I KNOW.
HAVE SOME COLLEAGUES OF
QUESTIONS BEFORE WE MOVE INTO
THAT --
THAT'S NEXT FOR ME BUT LET'S
MOVE TO ASSEMBLY MEMBER GLORIA.
THANK YOU MISTER CHAIRMAN --
IF THEY GIVE A SECTOR OF FOR YOU.
YOUR COMMENTS AND TO THE STATE
AUDITOR'S WELL WHO ALWAYS DOES
AN INCREDIBLE JOB THANK YOU SO
MUCH -- I
FIRST OFF KANSEN THE CHRISTMAS
CONCERT SEEMS LIKE A REALLY BAD
IDEA AND IT SEEMS LIKE EVERYONE
SHOULD FIGURE OUT A WAY TO MAKE
SURE THE VETERANS CAN HAVE A
CHRISTMAS CONCERT FREE POLITICAL
ADVICE --
BUT THE THE THE THE CONCERN THAT
I'M INTERESTED IN AND I AND OR
OR NOT NO THAT ORDINARILY WE
WOULD AVOID PERSONALITY CHART
KINDS OF CONVERSATIONS IN PUBLIC
THAT WAS ALREADY MENTIONED --
THAT THE TWO PRIMARY.
EMPLOYEES WERE DISMISSED AS THAT
TO HEAR THAT CORRECTLY IN THE BY
THE AUDITOR'S OFFICE YES --
I A KNOWLEDGE IN THAT THE BUT
WILL PORT --
THE AUDIT.
POINTS OUT THAT THESE ARE
VIOLATIONS OF LAW IS THAT THE
ONLY CONSEQUENCE OF THE ACTIONS
AT YON PHIL --
AT SO SO FOR THAT FOR THOSE FOR
THOSE TWO EMPLOYEES --
YEAH AS YOU MENTION I KNOW IT'S
IT'S NOT A AN ANSWER ANYONE
LIKES TO HEAR BUT YOU THERE ARE.
THERE ARE --
PERSONNEL ISSUES WE CAN
NECESSARILY DISCUSS THEM TOO
MUCH DETAIL --
I CAN SAY THAT --
HOLD SOMEONE TO AN AGREEMENT.
THAT EITHER DOESN'T EXIST OR WAS
APPROVED ALBEIT INAPPROPRIATE
WITH AN APPROPRIATELY WITH AN
APPROPRIATE TERMS --
BYE.
BYE PREVIOUS LEADERSHIP AT THE
HOME.
BUT BUT NEITHER OF THOSE
EMPLOYEES ARE CURRENTLY STATE
EMPLOYEES AT NIGHT AND TO BE
ADMINISTRATOR IN EXECUTIVE THAT
ARE NAMED IN THE REPORT NEITHER
OF THEM ARE STILL ON THE PAYROLL
TO STAY CALIFORNIA --
I I CAN SPEAK TO WHETHER I CAN
SPEAK TO WHETHER THEY'RE STILL
EMPLOYEES WITH THE STATE --
A BIG AND CLEAR AND I'M PLACE
WITH US ALI MAY HAVE OR RIGHTS
OF SQUARE IN THE STATE I SEE --
THE DOW TO BE QUITE A DEBBIE
QUESTION FOR ADDITIONAL FOLLOW
UP I WOULD THINK FOR THE
COMMITTEE AS WELL AS TO
UNDERSTAND --
IF THERE VIOLATIONS OF LAW I
MEAN I UNDERSTAND THAT THERE MAY
BE A STANDARDS OF PRACTICE AND
OTHER THINGS BUT YOU KNOW JUST A
BRIGHT LINE OF VIOLIN LANA
SHOULD THE CONSEQUENCE OF THIS
IS CIVIL OR CRIMINAL --
BUT YOU KNOW IF WE HAVE PARENTS
OF COLLEGE AGE KIDS GOING TO
JAIL FOR GET THE KIDS INTO I'VE
THE COLLEGES PAIN BRIBES I MEAN
THE I THIS SEEMS OF A SIMILAR
CALIBER AT LEAST IN TERMS OF
STEALING FROM VETERANS AND AND
MISAPPROPRIATING FUNDS IN
EXECUTING LEGAL CONTRACTS AND IT.
SEEMS LIKE A LOT GOING ON HERE
THAT MAY GO BEYOND --
JUST PERSONAL DISMISSAL AND I
JUST GENTLY ONE ASKED THAT
QUESTION I RECKON IN PUBLIC THEY
COULD SELECT QUESTION I WAS IN
MY FOR THE SECRETARY.
IS THAT I UNDERSTAND WHAT THE
FOCUS OF THE AUDIT WAS JOHN BILL
GIVEN THE NATURE OF THE LEASES
THAT ARE AVAILABLE THERE
CONTRAST IN WITH SOME OF THE
OTHER HOMES.
HOW MUCH OF THIS IS THE
INDIVIDUALS WHO ARE INVOLVED HOW
MUCH OF THIS IS ABOUT A CULTURE
I MET CITY VA AND WHAT CAN YOU
SAY IF IT IS IF IT'S IF IT'S
BOTH WHAT ARE YOU DOING TO
CHANGE THE CULTURE CITY VIA?
A CULTURE WHERE WE'RE BY THE
LEASES ORIGINATED AND SOCIAL
CULTURE WELL I MEAN IN TERMS OF
THE ABILITY FOR SINGLE
ADMINISTRATOR TO HAVE.
THIS KIND OF OF I WOULD SAY
RECKLESS BEHAVIOR AND WELL AT
OKAY DO YOU THINK IT'S JUST THE
ADMINISTRATOR AT A NOW THAT THAT
PERSON IS NO LONGER THERE.
WE GENERALLY COOL OR DO YOU DO
YOU ARE ALL MINISTERS OPERATING
ON THIS SORT OF LEVEL THAT YOU
KNOW NOT AND IT IS CERTAINLY NOT
ANYMORE EVERYONE OF THE
ADMINISTRATORS KNOWS THAT THEY
CANNOT DO ANYTHING IN THAT
MANUAL WITHOUT IT BEING CLEARED
BY US.
BUT CAN I JUST WIND THE CLOCK
BACK TO TWO THOUSAND THE YEAR
TWO THOUSAND WHICH IS IN OUR
MEMORY.
THE IT WAS JUST YEAH BILL YON
PHIL WAS CAL VET.
IT WAS HEADQUARTERED THERE ANY
GREW UP OVER CENTURY AND AS A%
CONSEQUENCE HISTORICALLY IT
DEVELOPED A SENSE OF AUTONOMY
AND THE THE ADMINISTRATORS THAT
WERE PUT IN THERE FELT NO NEED.
IT BACKED UP BY HISTORY TO
COMMUNICATE THEIR ACTIVITIES
WHETHER IT WAS TO BUILD UP
THINGS ON THE CAMPUS AND OR TO
ENTER INTO AGREEMENTS WITH THE
COMMUNITY FOR THE PLACEMENTS OF
OF THESE AMENITIES LIKE A GOLF
COURSE --
AND THEY DID IT.
AND WITH SUPPORT OF ALL KINDS OF
OUTSIDE INFLUENCES [inaudible]
AND AND SO.
AS THE TIME HAS GONE BY WE'VE
SORT OF CORRALLED OUR AUTHORITY
A LITTLE BIT MORE STRICTLY --
INSULT THAT LAST DECEMBER WE NOW
HAVE AN A DIRECTIVE FROM ME THAT
THEY CAN'T DO THIS BUT YOU CAN
SEE THAT THIS IS JUST BEEN AN
ACCRETION OVER HISTORY WHERE.
HOME ADMINISTRATORS AT YON PHIL
HAD A TREMENDOUS AMOUNT OF
AUTONOMY AND EXERCISED.
SO THE ANSWER I'M SORRY DID YOU
HAVE FOR NOW.
I WAS JUST GOING TO ADD --
THAT'S THERE'S I KNOW AND I KNOW
THE SIMILAR QUESTIONS ASKED
EARLIER ABOUT YOU KNOW --
AT LEAST SOME OF THE WANNA BE
WRONG BUT ABOUT --
THE THE EMPHASIS ON THE ON THE
CAMPUS PART OF THE ISSUE IS JUST
SIMPLY THAT THE SIZE YEAH I GET
THAT ME CONNECTION OF YOUR BILL
OTHER HOMES DON'T NECESSARILY
HAVE.
EXCESS SPACE FOR EXAMPLE TO HAVE
TIME TO REDUCE ITS WHERE I'M
GOING IN AND I THINK THE
SECRETARY JUST ANSWERED THAT
THERE IS A CULTURE AT LEAST
BECAUSE OF THE HISTORIC NATURE
OF YOUNG.
CENTERS BUT THE REASON I ASK IS
THAT I RECOGNIZE YOUR BILL IS AS
IS ADVANTAGED IN REAL ESTATE
RIGHT BUT YOU EASILY COULD HAVE --
INTERESTING OF RELATIONSHIPS
CONTRACTS WITH OTHER THAN THE
INITIATORS COULD HAVE WITH
OTHERS IN THE COMMUNITY THEY
DON'T HAVE ANY DO WITH REAL
ESTATE --
BUT WOULD BE EQUALLY AS PROPS
OFFENSIVE TO THIS BODY --
IF THEY WERE KNOWN SO THAT HAS
THE QUESTION ABOUT THE CULTURE
BUILDING AROUND THIS YOU'RE
SAYING.
THE ADMINISTRATOR IS NOW GONE.
HOPEFULLY NO LONGER ON THE STATE
PAYROLL DECEMBER'S CONCERT A
GENERAL LIABILITY FOR THE STATE
BUT THAT THE CULTURE ITSELF AND
THE SAFEGUARDS HAVE BEEN BUILT
AROUND.
BEHAVIOR OF THIS KIND WE
PROBABLY WOULDN'T SEE AGAIN
UNDER THE MOST EXTRAORDINARY
CIRCUMSTANCES.
M. BECAUSE OF A PENDING LAWSUIT
I WOULD LOVE TO ELABORATE
THAT WHAT YOU JUST SAID IS TRUE.
THERE WAS A HISTORICAL --
A SENSE OF FREEDOM ON THE PART
OF PEOPLE THAT RAN THAT CAMPUS
THAT WAS DIVORCED FROM OVERSIGHT
FROM CAL THAT.
THAT ENDED I PERSONALLY HIRED --
THE OF THE PRESENT ADMINISTRATOR
AND WE HAVE A GOOD UNDERSTANDING
AND A GOOD WORKING RELATIONSHIP
AND ENJOY YOUR CONFIDENCE TODAY
YES RIGHT.
AND I GEN BUT THANK YOU.
WE'RE GONNA MOVE TO ASSEMBLY
WOMAN AGUIAR-CURRY THAN TO
ASSEMBLY MEMBER --
PETRIE-NORRIS THAN TO SENATOR
DRAWS SO I JUST HAVE A REALLY
QUICK COMMENT WHEN SOME OF THESE
LEASES WERE EXTENDED FOR SO MANY
YEARS I THINK WE HAVE TO
REMEMBER IS THAT IT'S A LOT OF
PRIVATE INVESTORS THAT WERE FROM
UP IN THAT.
IN THE AREA THAT HELP FUND SOME
OF THESE SO FOR INSTANCE THE
MUSEUM WAS PAID BY A LOT OF
LOCALS THEY CONTINUE WANT US TO
SUPPORT THAT THAT MUSEUM.
A THE INTENT IS ALWAYS TO BE A
BENEFIT TO THE COMMUNITY SO JUST
AS LIKE A TO JUST TO CLARIFY IS
THAT -- THE
MUSEUM WAS A PRIVATE --
TO HELPFUL AS WELL AS OTHERS THE
COMMUNITY TO MAKE SURE THAT
STAYS THERE.
AND SO THAT BASICALLY IS PAY FOR
ITS JUST AS ON THE PROPERTY OF
YEAH AND I BELIEVE THAT MISTER
SECRETARY HAD COMMENTED THAT
THEY WERE.
THAT THE MUSEUM AT LEAST OFFERS
A FREE ADMISSION. TO TO THE
VETERANS THAT UTILIZE THE
FACILITIES ARE CORRECT.
AND THE OTHER ONE IS THEY HAVE A
ROOM IS FROM THE LOCAL COMMUNITY
HAVE PAID FOR THE POOL AS WELL
SO THEY'VE BEEN TOLD FOR THIS
YEAR THEY CANNOT USE THE POOL
FOR THE COMMUNITY [inaudible]
ASSEMBLY.
WHO WAS TOLD WHAT?
WE'RE TOLD THAT THEY CANNOT USE
THE POOL THIS YEAR WHO WHO WAS
TOLD AND THE CITY OF A YOUNG.
THAT'S THAT'S NOT THAT'S NOT
TRUE WE JUST OFFER THEM A LEASE
AND WE'VE --
WE WE REDUCE THE RENT FROM ONE
DOLLAR.
TWO ZERO IT MIGHT BE BRAND NEW
BUT AS OF A COUPLE WEEKS AGO
THOUGH IT WAS LAST WEEK BEFORE
THEIR TOWN COUNCIL MEETING.
THEN MY BAD I WAS NOT WITH US
OKAY THAT'S RIGHT.
BUT WE HAVE WE CERTAINLY NOT
KICKING THE TOWN OUT OF THEY RUN
THAT POOL SINCE.
WELL OVER TEN OR 206-415-2000 --
FIVE THEY HAVE PUT SOME
IMPROVEMENTS IN AWHILE AGO --
THE PERSON INTO THE WATER --
BUT LIKE I SAID WE WE ENJOY THAT
RELATIONSHIP I KNOW IT'S A
BENEFIT TO KIDS IN THE COMMUTER
AND OTHERS IN THE COMMUNITY WERE
WILLING TO OPEN.
CONTINUE TO KEEP THAT CAMPUS
OPEN FOR THAT.
AND WE'RE GOING TO DROP LIKE I
SAID THE RENT DOWN. TO ZERO
BECAUSE IT MEETS MY CRITERIA.
OKAY THANK YOU OKAY THIS TIME
WILL MOVE TO ASSEMBLY MEMBER
PETRIE-NORRIS.
THANK YOU FOR BEING HERE AND
THANK YOU FOR ALL THE GOOD WORK
THAT YOU ARE DOING I'M.
SO THE INITIAL AUDIT THAT WAS ON
THE SUBJECT WAS FROM OCTOBER OF
TWENTY THIRTEEN AND AS I'M SURE
WHERE THE TITLE IS WASTEFULNESS
FAILURE TO COMPLY WITH STATE
CONTRACTING REQUIREMENTS.
AN INEXCUSABLE NEGLECT OF DUTY
WHICH IS QUITE I'M SO I FIND
MYSELF KIND OF CON FOUNDED THAT
IT'S FIVE AND A HALF YEARS LATER
AND WE'RE STILL GRAPPLING WITH
SOME OF THE ISSUES THAT WERE
RAISED IN THAT INITIAL REPORT.
IS UP UNDERSTAND TWO THINGS ONE
HOW IS IT POSSIBLE THAT IT'S
FIVE AND A HALF YEARS LATER AND
WE'RE STILL HAVING THIS
CONVERSATION AND SECOND HOW CAN
WE BE CONFIDENT THAT WE'RE NOT
GOING TO STILL BE HAVING THIS
CONVERSATION.
IN FIVE AND HAVE A GREAT YEARS
THAT'S GREAT YEAH YEAH THAT'S
REALLY THE CENTRAL QUESTION
THANK YOU --
SHOW I I ALREADY GAVE YOU AND A
LITTLE BIT A SHORT WHILE AGO OF
RESPONSIBLE TWENTY FOUR SEVEN
THREE SIXTY FIVE FOR THE LIVES
OF THREE THOUSAND PEOPLE IN
THOSE HOMES.
AND I WANT TO MAKE SURE THAT
THEY WERE FED AND CLOTHED AND
AND SUPPORTED IN EVERY POSSIBLE
WAY IT DIDN'T LEAVE ME A LOT OF
BAND WITH TO GO INTO OTHER
THINGS BUT WE DID START AND AS I
MENTIONED ALREADY.
WE AFTER THAT AUDIT IN TWENTY
THIRTEEN WE STARTED MAKING SURE
THAT EVERYONE OF THE LEASES THAT
WE ENTERED INTO ADHERED TO THE
FIVE YEAR.
MAXIMUM TIME AND ALL THE OTHER
REQUIREMENTS THAT --
THE THE LEASING MANUAL THAT THE
STATE PUTS OUT --
REQUIRES US TO DO.
WHERE WE FELL SHORT AND I'D I
CAN TAKE RESPONSIBILITY FOR THIS
IS NOT IN THE THE LEASES AND?
WE NOT ONLY ENTERED INTO NEW
RELEASES BUT WE WERE NEGOTIATED
OLDER LEASES TO MAKE SURE THE
FORMAT AND THE LANGUAGE
COMPORTED WITH THE NEW STANDARD.
BUT WHAT'S THE WORD I'M LOOKING
FOR FOR THE OTHER ACTIVITIES
THAT WE DAY USE EAH SO.
I DID NOT HAVE THE TIME TO GO IN
A LOOK INTO POKE INTO THE WAY I
DID WHEN THE TWO OF US.
AT THE THREE OF US WENT INTO
EVERY ROOM ON THAT CAMPUS.
WE THE DAY USES THE THE PICNICS
AND THE BICYCLE RACES ON THE
WALKS FOR CHARITY BY THE WAY.
CHARITIES THAT RAISE A LOT OF
OFTEN.
AN EMBARRASSINGLY LITTLE AN
AMOUNT OF THAT IT DOESN'T COME
SOME OF THEM RAISE MONEY --
THIS ONE COMING UP IN APRIL THAT
RAISES A LOT OF MONEY FOR
VETERANS IN GENERAL STATEWIDE.
BUT MY NEW STANDARD GOING FORTH
IT WILL BE TO BENEFIT THE
RESIDENTS ON THAT CAMPUS.
BUT I DIDN'T LOOK AT ALL OF
THOSE THINGS AND I DIDN'T LOOK
AT THE PEOPLE WHO WERE USING OUR
PROPERTY WITH NO ARRANGEMENTS AT
ALL AND I DIDN'T LOOK AT THE
SUBLET LEASES --
I DON'T KNOW IF I'M SUPPOSED TO
THERE'S A DANCE COMPANY THAT
USES THE THEATER I DON'T KNOW
WHAT THAT ARRANGEMENT IS.
THE LITTLE GIRL FALLS AND BREAKS
HER ANKLE WHO GET SUED I DON'T
KNOW BUT I WILL FIND OUT.
AND I WILL MAKE SURE THAT WERE
INDEMNIFIED --
AT THAT ALL PARTIES ARE COVERED
THAT THE STATE IS PROTECTED.
SO I THINK GOING FORWARD WE ARE
QUITE CLEAR THAT OUR PARTNERSHIP
WILL WHAT DO YOU CALL ME BACK IN
SIX MONTHS OR SIX YEARS WILL.
WILL BE ABLE TO SHOW WE'RE NOW
ON A STRAIGHT AND NARROW PATH.
BUT THE LONG TERM LEASES I WILL --
I'M SADDLED WITH THEM UNLESS
THERE'S SOME OTHER KIND OF
RELIEF THAT I CAN'T IMAGINE.
OKAY WELL THANK YOU I APPRECIATE
YOUR CANDOR AND I DO ALSO
APPRECIATE THE WAY THAT YOU DID
PRIORITIZE THAT THEY CARE ABOUT
TRENDS AND I THINK IT IS A
TREMENDOUS ACHIEVEMENT THAT YOU
YOU KNOW TOOK THEM FROM A TWO
STAR RATING.
TO SPEND THE BEST FACILITIES IN
CALIFORNIA SO I THINK THAT'S
REALLY SOMETHING TO BE PROUD.
THANK YOU WILL MOVE --
TO SENATOR DRAWS IN FOR
QUESTIONING [inaudible]
THANK YOU.
WHEN I STILL FIND HARD --
TO UNDERSTAND THANKS SAID AS
SAID BY SENATOR DODD IS.
HOW THIS COULD HAPPEN?
UNDER THE NOSE OF A DEPARTMENT
LIKE THE G. S. AND CAL THAT'S
YOU KNOW IT'S THERE'S SOME FOLKS
ON THE GROUND.
WHO DID WRONG?
BUT HOW DID THAT GET.
PASSED [inaudible]
THESE DEPARTMENTS.
UP ON IT AND OVER AND OVER HOW
TO GET PASSED TO ME IT'S NOT SO
MUCH.
WE COULD WE COULD FIGURE OUT
WHAT WENT WRONG WITH SOME LEASES.
BUT MY CONCERN IS HOW IT EVEN
HAPPENED IN THE FIRST PLACE.
BECAUSE THIS IS NOT SOME.
ERROR IS SOME DEPARTMENT THAT'S
WAY OUT THERE THAT NOBODY EVER
CARES ABOUT.
CALVET CINDY GS.
ARE HUGE TO DOUBLE THE GS HUGE
DEPARTMENTS AND YOU'RE ONLY
RESPONSIBLE MORE BIG
RESPONSIBILITIES THESE LEASES.
HOW DOES THAT HAPPEN THAT THE
HIGHER UP LOW TAKE PLACE?
WELL IF I COULD IF I COULD --
OFFER SOME PROTECTION TO MY
COLLEAGUES FROM THE G. S. I
THINK WHEN A A LEASE WAS
NEGOTIATED --
INFORMALLY BETWEEN THE HOME
ADMINISTRATOR AT DOWN FELL BACK
IN THE EIGHTIES AND THE NINETIES --
AND ARRANGEMENTS WERE MADE WITH
VARIOUS ENTITIES AND THEN
BROUGHT TO D. G. S. IT PROBABLY
LOOKED BONAFIDE IT PROBABLY
LOOKS GOOD I I AT LEAST.
I MEAN HOW DOES IT LOOK GOOD.
SO YEAH --
IT'S A IT'S A VERY VERY FAIR
QUESTION IT REALLY IS I WOULD
SAY -- AND
THIS KIND OF GOES BACK TO
SOMETHING THAT CENTER DOT HAD
TIED KIND OF ALLUDED TO I DON'T
WANT TO DEMONIZED ANY OF THE IN
PARTICULAR LESSEES IN THIS
PROCESS --
THERE ARE SOME LEASES --
WHERE EVEN EVEN THOUGH SO MANY
THINGS RUN FABLE THERE MAY HAVE
BEEN GOOD EXPLANATIONS OF THE
TIME FOR THEM?
UNFORTUNATE BECAUSE THERE ISN'T
IMITATIONS HARD TO ACTUALLY SAY
THAT NOW.
LOOKING BACK IN A TWENTY THIRTY
YEARS LATER SOME CASES WE GO
BACK AND WE THINK THAT THIS IS
THE SAME KIND OF CRAZY --
IN THOSE INSTANCES YES IT DOES
LOOK LIKE IT IT ALTERNATELY WAS
NEGLIGENT ON ON BOTH DEPARTMENTS
PART IN MAKING SURE THAT THESE
WERE IN THE BEST INTEREST OF
TIME AGAIN BIT BY THAT YOU BY
VIRTUE HINDSIGHT.
UNLESS THERE WAS SOME MITIGATING
CIRCUMSTANCES --
THESE THESE TO GET THROUGH.
I I WOULD LIKE TO HEAR ASIDE
FROM AND I REALLY APPRECIATE.
YOUR LOOKING FORWARD THE MASTER
PLAN TAKING SOME CORRECTIONS BUT
I'D LIKE TO KNOW WHAT
CORRECTIONS IT CAN BE MADE AT A
HIGHER LEVEL.
NOT JUST ON THE GROUND.
I CAN RESPOND FOR TGS AT LEAST I
MEAN.
AS I LIEU TO BEGINNING MY
TESTIMONY YOU KNOW WE WE HAVE
TWO DIFFERENT GROUPS AT TGS THAT
HISTORICALLY DO LEASING ONE THAT
GOES OUT TO THE PRIVATE SECTOR
IN LEASES THEIR SPACE AND ONE
THAT LEASES STATE SPACE.
THE GROUP AT LEAST STATE SPACE --
IS QUITE SMALL --
AND IT'S IT'S ESSENTIALLY BEEN
SOMETHING OF A CORNER FOR A
NUMBER OF YEARS --
IN ORDER AND THE GROUP THAT
ACTUALLY GOES OUT AND LEASES
PRIVATE SECTOR SPACE BECAUSE
IT'S LARGER IT'S MORE ABOUT SB
TOO FAR FAR MORE TRANSACTIONS
THERE'S A LOT MORE PROCESS A
PROCEDURE THAT'S BUILT AROUND
THE PASSING SO ONE OF THE FIRST
THINGS THAT WE DID WAS.
WHEN I?
CAME ON BOARD AND IN TWENTY
EIGHTEEN WE WE TOOK THOSE TWO
GROUPS AND WE MERGE THEM
TOGETHER --
SO NOW THERE'S A SINGLE PERSON
RESPONSIBLE FOR STATE LEASING IN
GENERAL SECOND THING WAS THOSE
TWO GROUPS DID HAVE
DECENTRALIZED THESE MANAGEMENT
THEY'RE KIND OF RESPONSIBLE FOR
THEIR OWN --
DEPOSITING OF FUNDS AND
VALIDATING THAT --
RENEWALS ARE HAPPENING ON TIME
AND SO WE'VE PULLED THOSE
FUNCTIONS OUT AND CENTRALIZE
THEM AS WELL SO THERE'S OF
ESSENTIALLY OF A THIRD PARTY
ACCOUNTABILITY WITH THAT SECTION
TO MAKE SURE THAT --
LEASE PAYMENTS ARE BEING
COLLECTED TIMELY THE WE'VE DONE
THOSE REORGANIZATIONS THE SECOND
PIECE AND THIS IS THIS IS WHAT I
LAMENTED THE AUDIT IS YOU KNOW
AS I LOOK BACK AT SOME LEASES
THAT EXIST ON THE APPLE THE SOME
OF THE MORE RECENT ONES.
EVEN THE ONES POST TWENTY
THIRTEEN I SEE INDICATIONS THAT
THEY WERE DONE IN IT IN KEEPING
WITH HOW WE CAN EXPECT TO SEE
FAIR MARKET VALUE DETERMINED I
CAN'T PROVE IT UNFORTUNATE
BECAUSE THE POOR DOCUMENTATION
AND SO WE DO.
WE DID --
MAKE SURE THAT THERE IS NOT ONLY
A POSSIBLE TEN THAT MIRRORS --
THE OTHER LEASING GROUPS --
DOCUMENTATION SENATOR FAR MORE
BUST BUT WE BEGAN TRAINING STAFF
TO THAT EFFECT --
WE HAVE ALSO LOOKED AT EACH OF
THESE AREAS THE AUDITOR --
IDENTIFIED SO AGAIN THAT'S FOR
MARKET VALUE IN LIEU BY PUBLIC
BENEFIT --
WE'VE GOT SOME LEASES THAT IN
SOME CASES WERE SUCH POORLY
ENACTED THAT ARE IN A FIFTY YEAR
LATE NIGHT OF VETERAN SUMS BUT
OTHER.
OTHER LOCATIONS WITH A LONG TERM
LEASES AT CERTAIN RATES AND WE
HAVE TO BRING THEM TO FOR MARKET
VALUE --
AFTER THOSE TERMS EXPIRE IN ALL
THOSE CASES WE'VE GOT POLICIES
NOW TO ADDRESS SPECIFICALLY HOW
TO DO THOSE THINGS --
PROOF WILL BE IN THE PUDDING
WHETHER WE CAN SHOW THAT WERE
ACTIVELY MANAGING TO THOSE
THINGS --
AND I THINK THE AUDITOR AND
THEIR RESPONSE TO OUR OUR
RESPONSES SO FAR HAVE BEEN.
YES YOU WITH POLICIES IN PLACE
TO GET APPROVED ACTUALLY DOING
IT BECAUSE THERE IS A KIND.
ALL RIGHT THANK.
SO RAZA WAS TALKING ABOUT THE
LEASES WELL A LOT OF US WERE
TALKING ABOUT THE LEASES AND
SEEMS TO BE LIKE SOME
DISCREPANCY SO I'LL JUST GET
SOME CLARITY FROM D. G. S..
THE SIMS --
THERE SEEMS TO BE SOME
DISCREPANCY BETWEEN WHAT THE
AUTHOR PRESENTED WENT --
CODE SECTION YOUR FOLLOWING OVER
AT THE GS AND LET ME JUST ASK
ONE GENERAL QUESTION.
SENSORS MULTIPLE CODE SECTIONS
WHICH ONE DOES THE GS FOLLOWER
FOLLOWER DOESN'T LIKE WHAT CODE
SECTION FOR ONE LEASES ANOTHER
CODE SECTION FOR ANOTHER LEASE.
SO -- I CAN
IS THAT WHAT QUESTION ONE OF TWO
WAYS YOU KNOW BECAUSE DID YES
BECAUSE WE HAVE A LEASING
AUTHORITY FOR MOST APARTMENTS --
WE HAVE SORT OF OUR DEFAULT
AUTHORITY WHICH IS GOVERNMENT
CODE -- ONE
FOUR SIX SEVEN ZERO THAT IS --
KIND OF IT'S IT'S OUR IT'S OUR
GO TO NINE TIMES OUT OF TEN
BECAUSE MOST APARTMENTS DON'T
HAVE ANY SPECIAL LEASE AUTHORITY --
WERE SPECIAL PROVISIONS ABOUT
LEASING --
HOWEVER --
IF THERE IS A PIECE OF PROPERTY
THAT IS --
ACCESS TO DEPARTMENTS
FORESEEABLE NEED WE CAN ENTER
INTO VERY VERY LONG TERM
ARRANGEMENTS UNDER A DIFFERENT
SECTION OF GOVERNMENT CODE
THERE'S A SECTION GOVERNMENT
COLOSSUS TO ENTER INTO LEASES
FOR AFFORDABLE HOUSING.
SO DEPENDING ON THE SPECIFIC
DEAL POINTS AND THE USE OF THE
LAND WE DO HAVE DIFFERENT LEASE
AUTHORITY WE PAY THAT.
TOO IN THE CASE OF CALVET --
MILITARY VETERANS CO TEN TWENTY
THREE REALLY SHOULD CONTROL --
AND SO FROM TGS AND YOU JUST
LEGAL PERSPECTIVE THAT DOES
ALLOW FOR A LONG TERM LEASES --
AGAIN WE GENERALLY PREFER GOING
BACK TO SOMETHING CENTER DOT
SAID IN LESS THERE ARE --
EXTENUATING CIRCUMSTANCES LIKE
THIS A CAPITAL INVESTMENT OR
THERE ARE SOME SOME NEED TO DO
SOMETHING LONGER TERM BUT
GENERALLY ARE DEFAULT IS FIVE
YEARS WHICH IS WHY AS THE
SECRETARY MENTIONED.
POST TWENTY THIRTEEN ALL THE
LEASES ENTERED INTO HAVE BEEN A
FIVE YEAR DURATIONS.
AND SO FEW ENTRANCES LONG TERM
LEASES ARE ADDITIONAL
PROTECTIONS OR OTHER CRITERIA
THAT YOU REQUIRE.
MOVING FORWARD A FEED WE'VE BEEN
TALKING ABOUT THEOLD OUT IT'S
MOVING TO THIS YEAR'S AUDITS.
THE LACK OF NOT HAVING AN OPT
OUT CLAUSE FOR INSTANCE FOR THE
STATE OR CERTAIN CRITERIAS
WEREN'T MATT OR EVEN THE
BENEFITS FOR VETERANS AND AND
THIS CASE.
I MEAN DO WE HAVE THAT MOVING
FORWARD IS THAT --
CRITERIA THAT'S NOW ESTABLISHED
BECAUSE OF THE AUDIT --
CAN YOU COMMENT ON THAT
ESPECIALLY. FOR MORE LEASES --
THROUGH LONG TERM LONGER THAN
FIVE YEARS.
SURE I MEAN I THINK --
SO WE WE DO USE A STANDARDIZED
OF A LEASE FORM TEMPLATE --
BECAUSE THE MAJORITY RELEASES
ARE DONE DEPARTMENTS THOSE TWO
HAVE STANDARDIZED INSURANCE
PROVISIONS THEY'RE STANDARDIZED
TERMINATION CLAUSES --
AND WE WORK VERY CLOSELY WITH
OUR TURN IS TO MAKE SURE THAT
COVERS THE VAST MAJORITY
AGREEMENTS --
IF WE WERE TO ENTER INTO
SOMETHING LONG TERM --
ESPECIALLY SOMETHING THAT WAS
NATION A GOOD EXAMPLE IS --
YOU KNOW THERE WAS A LEGISLATION
THAT WAS PASSED A COUPLE YEARS
AGO TO ALLOW CENTER INTO A LONG
TERM LEASE FOR AFFORDABLE
HOUSING FOR DIFFERENT DEPARTMENT --
THAT HAD A SEPARATE OUR FEE
BUILT INTO IT HAD VERY SEPARATE
AND TAILORED LEASE TERMS THOSE
BECOME VERY FOCUSED ON THAT
PARTICULAR ARRANGEMENT SO YES.
IF WE'RE DOING SOMETHING LONG
TERM ESPECIALLY SOMETHING YOU
SHOULD WE DO FAIRY INVALID OR
MAKE SURE THAT --
WE DON'T JUST USE THE SENATE
LEASE TERM WE TAILOR IT TO THAT
PARTICULAR LEAST OPTICAL
NEGOTIATION COTTONS OUT JUST A
POLICY OR REGULATION THAT YOU
HAVE NOW IMPLEMENTED SINCE I
DON'T KNOW HOW FAR BACK WHEN.
WAS THAT SOMETHING THAT.
WE SHOULD REQUIRED BY STATUTE --
IT IS YEAH IT'S IT'S MARKETS ARE
POLICY --
I'M NOT AWARE OF ANY SUCH TôI
REQUIREMENT BUT SUCH IT DOESN'T
GO INTO SPECIFIC DETAIL ABOUT
WHAT TERMS CONDITIONS IMPOSED
FOR THE MOST PART OF THE SET UP
TO OUR DISCUSSION.
OKAY.
ALL RIGHT THANK YOU FOR THE
CLARITY LET ME ASK --
IF THERE'S ADDITIONAL QUESTIONS
FROM MEMBERS OF THE DíAS --
HERE AGAIN SAYING NONE I THINK
WE'LL MOVE TO CLOSING BUT LET ME
JUST THANK YOU GUYS FOR BEING
HERE LIKE TO THANK THE AUDITOR
HER TEAM --
CAL THAT'S AND ALSO THE CHANCE
FOR BEING HERE THINK AT THE END
OF THE DAY WE'RE ALL TRYING TO
FIGURE OUT HOW WE HELP VETERANS --
AND MOST EFFICIENT --
IT WE CAN --
THAT'S RIGHT.
RIGHT BEFORE WE CONTINUE WITH
CLOSING LET ME ASK IF THERE'S
PUBLIC COMMENTS.
ALLRIGHT IF PUBLIC COMMENT IF
YOU CAN PLEASE STATE YOUR NAME
AND IF YOU'RE WITH AN
ORGANIZATION ORGANIZATION AS
WELL --
PLEASE --
L'IMAGE COMES TO TWO MINUTES
WE'D APPRECIATE THAT THANK THANK
YOU THANK YOU APPRECIATE THE
OPPORTUNITY I'M WITH AN
ORGANIZATION CALLED THE COUNTY
OF NAPA I'M A NAPA COUNTY
SUPERVISOR DIANE DILLON.
AND THE OROVILLE --
FACILITY LIES WHOLLY WITHIN MY
SUPERVISORIAL DISTRICT IN VERY
I'M VERY PROUD OF THAT.
I APPRECIATE --
THE DOCTORS OVERSIGHT OF THE
MEDICAL NEEDS.
I WOULD URGE.
YOU TO CONSIDER THAT ALL OF THIS
DID NOT SAY WHY THE HECK DID
THEY DO IT THAT WAY BACK THEN --
BUT THERE'S A CONTEXT FOR EACH
OF THESE DECISIONS THAT WAS MADE
YES IN SOME CASES THERE'S ONLY
ORAL HISTORY BUT I DON'T THINK
YOU'VE HEARD ALL THE ORAL
HISTORY TODAY.
SO I WOULD --
APPRECIATE --
THE OPPORTUNITY FOR US TO
PARTICIPATE.
REFERENCE WAS MADE TO THE NAPA
COUNTY --
BEING IN IN THE HOSPITAL THERE
IS NO FEDERAL CLINIC.
IN NAPA COUNTY FOR VETERANS --
WE WERE PROVIDING SERVICES AND
WE BELIEVE WE SHOULD BE GOOD
PARTNERS WITH --
THE YOUNG FILL UP VETERANS HOME
AND THAT'S WHAT WE'RE STE WE
STRIVE TO BE WE PROVIDE LIBRARY
SERVICES BECAUSE THOSE ARE
RESIDENTS.
OF OUR COUNTY EVEN THOUGH THEY
HAVE THEIR OWN LIBRARY WE
AUGMENTED THEIR SERVICES AT NO
COST TO THEM SO THERE ARE MANY
SITUATIONS.
WHERE THERE'S A A RECIPROCITY
THAT DOESN'T INCLUDE --
REQUIRE MONEY --
BUT WAS --
TACITLY NO I WOULD HATE TO SEE
AYE THOSE RELATIONSHIPS --
BE ELIMINATED IN THIS PROCESS TO
TAKE EVERYTHING TO SOMETHING
THAT'S BY THE BOOK --
THE TOWN OF YOUR BILLS NOT HERE
TODAY THEY PUT OVER MILLION
DOLLARS INTO THAT POOL THEY'VE
ENTERED INTO AN AGREEMENT WHERE
THEY'RE NOT GOING TO BE
RESPONSIBLE ANYMORE FOR THEM.
YEARLY MAINTENANCE AND INSTEAD
HAVE PASSES FOR THE RESIDENTS --
BUT I YOU KNOW.
THAT MAY BE THE BY THE BOOK OF
HOW YOU WANT TO RUN THINGS BUT
MAYBE THE WAY THAT AGREEMENT WAS
ORIGINALLY MADE WAS REALLY.
BETTER FOR THE IN THE BIGGER
PICTURE IN THE LONGER RUN SO
PLEASE LOOK AT THE CONTEXT OF
THESE DECISIONS AND LET'S NOT
ACT WITH TOO MUCH HASTE UNTIL WE
HAVE ALL THE FACTS ON THE TABLE
THANK YOU.
THANK YOU SUPERVISORS COMMENTS
YEAH I THINK WE'RE LOOKING FOR
WHEN WHEN.
US AREAS IF WE CAN ESPECIALLY
WHEN IT --
IS OFFERING SERVICES BUT ALSO
WRITTEN AGREEMENTS AS WELL SO
THAT EVERYBODY UNDERSTANDS
PARAMETERS WHICH WERE MOVING
FORWARD.
PLEASE CONTINUE PUBLIC COMMENT.
THANK YOU --
CHAIRS AND MEMBERS I AM I AM
FOUNDER AND CHIEF EXECUTIVE
OFFICER VETERANS RESOURCE CENTER
OF AMERICA.
ALSO SERVED IN THE ARMY AND IN
VIETNAM.
NINETEEN SIXTY SIX SIXTY SEVEN
VETERANS RESOURCE CENTER IS A
COMMUNITY BASED VETERANS SERVICE
AGENCY WITH NEARLY A FIFTY YEAR
HISTORY OF RYAN SERVICES. FOR
VETERANS AND ONCE AGAIN I I
THANK YOU FOR ATTENDING TO THIS
ISSUE AND ALLOWING ME TO SPEAK
HERE OVER THE YEARS THOUSANDS OF
VETERANS HAVE BEEN FORTUNATE
SECURE HOME AT YON PHIL.
MANY OF OUR CLIENTS ACTUALLY --
HAVE COME THROUGH OUR SERVICES
AND AND ARE NOW RESIDENTS OF
YOUNG WILL AND JADA WILL HAVE
SERVE THEM VERY WELL.
THE INVALUABLE STATE RESOURCES
DEDICATED TO VETERANS CAN
CONTINUE ITS MISSION SERVING
AGING VETERANS.
AND DO SO MUCH MORE BYE BYE
OPINION ACROSS THE REGION
THROUGHOUT THE STATE.
THERE ARE HOMELESS VETERANS WHO
NEED HOUSING EMPLOYMENT AND
TRAINING ANOTHER SERVICES
INCLUDING WORKING VETERANS YOU
NEED AFFORDABLE HOUSING.
THESE.
ALL VETERANS DESERVE A CAREFUL
THOUGHTFUL AND TRANSPARENT
PLANNING PROCESS THAT FULLY
EXPLORES HOW WE MAY BETTER USE
IS GREAT RESOURCE.
ACCORDING TO THE AUDIT YA UNTIL
VETERANS HOME AND PROPERTY IS
NOT ALWAYS OPERATE IN THE BEST
INTEREST OF VETERANS BUT WE CAN
ALL AGREE THAT THESE PROBLEMS
NEED TO BE ADDRESSED TO THE
DEPARTMENTS OF MASTER PLAN IN
THIS IS VERY VERY IMPORTANT --
THAT YOU SHOULD ADDRESS THE
AUDITS CONCERNED JUMP RULES
ESTABLISHED AND CHARGED TO SERVE
VETERANS FIRST.
AND NOT TO BE A FACILITY
PRIMARILY FOCUSED ON ON VETERAN
ISSUES THEREFORE.
WE FULLY SUPPORT INVESTMENTS TO
IMPROVE IN TO INVEST IN SKILLED
NURSING CENTER UPGRADED YON PHIL.
SKILLED NURSING CARE IS AN
URGENT NEED FOR AGING VETERANS
AND AS YOU'LL SEE BY THE COLOR
OF MY HAIR.
I MAY BE ONE OF THOSE VETERANS.
BUT OUR VETERANS POPULATION IS
LARGE THEIR NEEDS ARE MANY AND
LAND AND RESOURCES ARE SCARCE JA
RULE HAS A BIG FOOT PRINT AND
WITH CAREFUL PLANNING.
COULD HOUSE OF RIDING OF NEEDED
SERVICES VETERANS WE UNDERSTAND
THERE ARE COMPETING INTERESTS
FOR NON VETERAN USES OF YON PHIL.
CAN THE ALA CHALLENGES MANY OF
THOSE USES.
WE DID NOT CATEGORICALLY OPPOSED
ALTERNATIVE NON VETERAN USES AT
YON PHIL BUT VETERAN USAGE IS
PARAMOUNT.
ALTERNATIVE USES SHOULD NOT
CIRCUMVENT OR DIMINISH THE
PRIMARY PURPOSE OF SERVING
VETERANS.
WE ARE NOT SUPPORTING THE SALE
OF ANY PART OF THE OUT BILL
PROPERTY AT THIS POINT BUT IF
NOT RETURN USES ARE PERMITTED OR
PORTIONS OF THE PROPERTY SOLD.
THAN REVENUES GENERATED MUST BE
EXCLUSIVELY ALLOCATED DO BETTER --
BENEFIT VETERANS DEPARTMENT IS
CURRENTLY ENGAGED IN DEVELOPING
A MASTER PLAN FOR YON PHIL.
WE URGE YOU TO SEEK VETERAN
COMMUNITY INVOLVEMENT.
IN THESTAKEHOLDER PROCESS
SPECIFICALLY WE ASK THAT YOU
INCLUDE.
CALIFORNIA ASSOCIATION VETERANS
SERVICE AGENCY IN THE MASTER
PLANNING PROCESS CATHERINE HAS A
STATE WIDE EXPERIENCE IN
VETERANS CARE.
CURRENTLY INVOLVED IN THE WEST
LA PROJECT AS WELL ONE OF OUR
PARTNERS INCLUDING AS I SAID
WEST LA THIS EXPERIENCE CAN BE A
VALUABLE RESOURCE AS YOU MOVE
FORWARD --
I'M DEDICATED.
I'VE DEDICATED THE GREATER PART
OF MY LIFE TO HELPING VETERANS
HEAL BY PROVIDING THEM.
COMPREHENSIVE SERVICES A NEED --
BE HONORED TO HELP LEGISLATION
THE DEPARTMENT PLAN YON PHIL
FEATURE.
AND IF YOU ALLOW ME ONE NOTE
I'VE HAVE ALL LEASES AS A NON
PROFIT EXECUTIVE DIRECTOR.
I WILL NEVER SIGN A LEASE MORE
THAN THREE YEARS.
CIRCUMSTANCES CHANGE THANK YOU
VERY MUCH THANK YOU.
ADDITIONAL PUBLIC COMMENT PLEASE.
YES GOOD AFTERNOON HOWARD
HERNANDEZ I TO MAKAMBA VIETNAM
VETERAN.
I A CERTAIN TWO SEVENTY ONE
SEVENTY THREE SEVENTY TWO WITH
THE TWENTY THIRD INFANTRY
DIVISION VIETNAM.
NOW THAT BEING SAID I'M ALSO
SELECTED BY A PICTURE OR BY MY
PEERS TO SERVE ON THE COMMUNITY
VETERANS OF ENGAGEMENT BOARD.
WHICH PROVIDES DIRECTION
[inaudible]
TO THE LOS ANGELES REGION OF THE
VETERANS SERVICES.
THAT IS.
BAKER --
KERN.
SAN LUIS OBISPO SANTA BARBARA
VENTURA AND 90% OF LOS ANGELES
COUNTY.
THAT BEING SAID TWO YEARS AGO I
WAS APPOINTED BY THE SECRETARY
THE VETERANS ADMINISTRATION. TO
ASSIST IN THE OVERSIGHT OF THE
TRANSITION OF THE THREE HUNDRED
AND EIGHTY ACRES.
LOCATED DIRECTLY ACROSS THE
STREET FROM THE WILSHIRE
HOSPITAL. TO ENSURE THAT THE
MASTER PLAN ADDRESSES ALL THE
NEEDS OF VETERANS.
SERVICE IN THE AREA THAT I AM
REFERRING [inaudible]
TO IN.
WE HAVE BEEN.
TASK WITH RECONSTRUCTING
[inaudible]
NOT ONLY.
PAST ORAL AGREEMENTS.
BUT THE LAST THE THE WRITTEN
AGREEMENTS TO ENSURE THAT THAT
PROPERTY IS BEING.
OUR TRANSITION TO ENSURE THAT
ALL VETERANS.
ARE PROVIDED THE SERVICES THE
ACTUALLY NEED.
IN THESE SERVICES MUST BE
VETERANS CENTRIC.
I CAN APPRECIATE TO OUR
SHAREHOLDERS WHO LIVE.
OR OR RESIDE.
SPECIFICALLY AROUND THE LOCATION.
I KNOW WE HAVE THE WE'VE HAD A
WE'VE HAD.
LITIGATION WITH UC REGENTS.
WITH THE RENT WITH SCHOOL AND
THE PRINT WOULD COMMUNITY AND
ITS ONGOING BUT BY THE SAME
TOKEN.
OUR PRIMARY CONCERN IS TO ENSURE
THAT ALL SERVICES ON THAT
FACILITY OR THE LIKE THREE
HUNDRED AND EIGHTY ACRES.
SERVE.
THE VETERANS NEEDS.
I WOULD.
GREATLY OF I WOULD GREATLY
APPRECIATE IT IF.
IF THERE WERE SOME LITIGATION OR
STATUTES THAT WERE ENACTED TO
ENSURE THAT THE TH CALVET
[inaudible]
IS.
PROVIDED THE ABILITY TO GO AHEAD
AND SERVE THEIR MISSION AND
THAT'S OUR MISSION IS TO SERVE
VETERANS [inaudible]
AND IF IT'S NECESSARY TO
ESTABLISH ANOTHER BOARD AND
OVERSIGHT.
WITH THE COMMUNITY VETERANS
OVERSIGHT AND GIVES REPORT.
ON A STATE LEVEL.
THEN I WOULD RECOMMEND THAT
BECAUSE YOUR TRACKING FROM THE
SERVICES.
THAT THE THE CALVET HAS TO MAKE
SURE THAT ALL OUR VETERANS NEEDS
ARE ARE ACTUALLY ADDRESSED.
AND TO PROVIDE THEM WITH AN
ADDITIONAL CONTRACTUAL
OBLIGATION.
PARTICULARLY WITH THE G. S. IT'S
TAKING AWAY FROM THEIR ABILITY
EITHER EITHER GONNA DO ONE OF
TWO THINGS YOU'RE GONNA STOP
SUPPORT.
OR YOU TO PROVIDE THE RESOURCES
TO ADDRESS.
THE SITUATION BECAUSE THAT.
THE IT JUST TWO TRACKS AND IT
WATERS DOWN THE MISSION OF
CALVET.
THANK YOU THANK YOU FOR SERVICE
LIKE FOR YOUR COMMENTS AND I
THINK AT CAL THAT WAS EVEN.
LOOKING AT SOME OF THOSE.
SOME OF THOSE ISSUES --
THROUGH THE B. C. P. PROCESS OF
MAYBE AN INTERNAL --
ODDITY.
PLEASE OFFICIAL PUBLIC COMMENT.
GOOD MORNING --
MY NAME IS --
IT ROOM WARM.
I AM THE LEGISLATIVE CO CHAIR.
OF THE í
ALLY COUNCIL.
AS SUCH WE ARE THE GROUP.
OF REPRESENTING THE VETERANS AT
YON PHIL --
TO THE ADMINISTRATOR AND
WHEREVER ELSE MIGHT BE S..
I HAVE TWO PAGES WHICH I'M
PASSING OUT --
TO EACH OTHER THERE'S TWO OF
THEM FOR EACH ONE OF THE
COMMITTEES.
I AND I WON'T READ MY REMARKS --
BUT I WOULD LIKE TO TAKE JUST A
MOMENT. TO ANSWER SOME OF THE
QUESTIONS RAISED IN THE COURSE
OF YOUR THING.
I'VE BEEN AT YON PHIL TEN YEARS.
AND SO I HAVE A FAIRLY GOOD
PICTURE.
OF AT LEAST THE TEN YEARS OF ITS
HISTORY.
AS TO WHY THE THE WASN'T FALL
APART AFTER CONTRACTS IN THE
TWENTY THIRTEEN THERE WAS IN
FACT A BILL BY YAMADA --
THAT --
INTENDED TO DO THAT.
AND IT WAS --
HI JACKED IS THE WORD SOMETIMES
USED TO IN THE SENATE.
THIS ASSEMBLY BILL HIJACKED IN
THE SENATE.
IN ORDER TO PROVIDE CGV EIGHTIES --
START A OF HAVING THE STATE WIDE.
MORALE WELFARE AND RECREATION --
THAT HAD NOT YET OCCURRED.
SO SO THE FIRST EFFORT TO DO
THAT WAS.
DIRECTED TO SOMEWHERE ELSE.
AS TO WHY THE TICKETS WERE TAKEN
Y..
THE ALLIED COUNCIL IS A TIME
STRENUOUSLY OBJECTED TO THAT.
WE WERE NOT TOLD ABOUT IT UNTIL
AFTER THE FACT.
AND MY UNDERSTANDING.
BECAUSE I HAD A LONG
CONVERSATION WITH THE WITH THE
FEEDER PERSON THAT NEGOTIATED
THAT.
IS THAT WAS AN IDEA THAT CAME
OUT OF THE BLUE.
FROM THE CVV A LAWYER WHO IS
NEGOTIATING THEIR CONTRACT --
ANDO I THINK THAT THE THEATER
WOULD BE OPEN.
TO FIND YOU SOME DIFFERENT
ARRANGEMENTS.
THAT I MIGHT JUST ALSO ADD THAT
THE GOLF COURSE --
PROVIDES GREEN FEES.
AND IN CART. FOR THE MEMBERS SO
THEY ARE SOMEBODY WHO DO IN FACT
HAVE SOME DIRECT.
CONTRIBUTION MY TWO POINTS.
MY TWO POINTS ARE.
WHERE IS THE MONEY?
THERE'S BEEN MONEY TAKEN OUT FOR
LEASES.
NONE OF IT HAS BEEN IN THE HOT
DIDN'T DEPOSIT. TO THE MWR OLE
FUN.
IN YOUR FILL NONE.
AND WE'RE GETTING READY TO
CONSIDER NEXT YEAR'S BUDGETS.
WILL BE GOOD ENOUGH FOR A WAS.
TEN THOUSAND OR A HUNDRED
THOUSAND DOLLARS ADDITIONAL THAT
MIGHT BE SPENT.
SO THAT'S MY FIRST POINT.
THIS MONEY IS.
IS A DIRECTED TOWARDS.
THE END OF YOUR PHONE FROM SOME
OF THE LEASES.
AND WE'D LIKE TO SEE SOME OF
THAT BENEFIT.
THE SECOND POINT [inaudible]
IS.
MEMBERS VETERANS OF THE HOME.
LEAST OUR OWN.
ARE NOT INVOLVED.
IN DISCUSSIONS AND POLICIES WERE
SHOULD BE.
AND THE LATEST.
OUTRAGE I WOULD SAY.
THERE'S A DEVELOPMENT OF THE
POLICY. FOR WHAT IS THE BEST
INTEREST OF THE VETERANS AND NO
VETERAN WAS PASSED.
NEED I SAY MORE.
SO I'VE GIVEN YOU SHOULD
COMMITTEES. TWO PAGES LEANING UP
TO THESE POINTS.
I WOULD BE GLAD.
TO THANK YOU AND I'M PRETTYSURE.
EIGHT OF BOTH OF ARM LEGISLATOR
TODAY.
THANK YOU VERY MUCH THANK YOU
THANK FOR COMMENTS AND FOR YOUR
SUBMISSION AND THOSE OF BEEN
DISTRIBUTED TO MEMBERS OF THE
COMMITTEE AS WELL.
PLEASE ADDITIONAL PUBLIC COMMENT
THANK YOU I'M LARA RAFFERTY AND
THE EXECUTIVE DIRECTOR OF THE
NAPA VALLEY MUSEUM DOWN FILL.
THANK YOU VERY MUCH FOR ALL THE
THAT YOU'RE DOING ON BEHALF OF
THE VETERANS AND WE UNDERSTAND
IT'S OF DIFFICULT PROCESS TO GO
BACK IN.
AND TRY TO FIGURE OUT WHAT
HAPPENED LONG AGO THE GOOD NEWS
WITH REGARD TO THE MUSEUM IS
THAT THE PERSON WHO ACTUALLY
SIGNED A RELEASE IS STILL VERY
ACTIVE WITH MUSEUM SO IF ANYBODY
WOULD LIKE --
TO PUT IMPACTS ON THIS WERE
HAPPY TO OFFER HIM UP --
TO HELP FILL IN SOME BLANKS. TWO
QUICK FACTS I WANTED TO CORRECT --
OR CLARIFY PERSONAL YES WE DO
OFFER FREE ADMISSION TO VETERANS
OF RESIDENTS OF THE VETERANS
HOME.
EVERY DAY --
WE ALSO ARE A PARTICIPATING
MEMBER OF THE NATIONAL ENDOWMENT
FOR THE ARTS BLUE STAR PROGRAM
VERY PROBABLY WHICH AT OUR OWN
EXPENSE --
FOR THREE MONTHS OF THE YEAR WE
OFFER FREE ADMISSION TO EVERY
MEMBER OF THE ACT TO DO WHAT WE
ALWAYS OFFER FREE ADMISSION TO
ACTIVE DUTY MILITARY.
ALL YEAR BUT THIS INCLUDES
RESIGNED DURING EVERY VETERAN
IT'S EVERY RESERVIST AND WE AND
THEY HELP US PUSH IT OUT AND
NATION WIDE AND IT'S BEEN A
REALLY POPULAR PROGRAM.
ON THE OTHER THING I WANTED TO
ALSO CLARIFY IS THAT WE HAVE A
GROUND LEASE WITH THE WITH THE
STATE WE DON'T HAVE TIME WHICH
IS A VERY IMPORTANT
CLARIFICATION I THINK IT WAS A
MAYBE A LITTLE LOST IN THE AUDIT
REPORT ON INADVERTENTLY --
WE'VE DEVELOPED THE LAND WE
BUILT THE BUILDING WE MAINTAIN
THE BUILDING AS IT IN SOME CASES
WE MAY BE REQUIRED TO SCRAPE IT
OFF THE THE GROUND WHEN WE LEAVE.
SO -- WE ARE
IN YOUR THIRTY ONE OF A OF A
LONG LEASE WE SPENT MILLIONS OF
DOLLARS REYES FROM THE COMMUNITY
TO BUILD OUR BUILDING --
IF YOU ADVERTISE THAT OUT OVER
EVEN JUST A FEW YEARS THE THIRTY
YEARS THIS FIRST A LOOK AT HALF
THE LEASE PAYMENTS WELL ABOVE
MARKET RATE --
BUT WE WE WANT YOU TO UNDERSTAND
THAT BUT THEM THE FUNDAMENTAL
THING I WANTED TO MAKE SURE THAT
YOU ALL INTERESTED WITH THAT THE
PICTURE YOU'RE HEARING TODAY.
IS SO AT ODDS WITH THE REALITY
RIGHT NOW WE HAVE A CALLED WALT
DISNEY'S SHIP WITH THE WALT
DISNEY FOUND AND I HAD MANY
RAILROAD TRAIN GEEKS THERE WERE
LIVING AT THE VETERANS HOME.
BUT THERE'S A WHOLE HECK OF A
LOT OF ON AND SOME OF THEM COME
EVERY DAY AND THEIR THEIR HAND
IN HAND WITH THE LITTLE KIDS IN
SCHOOL THE SCHOOL CHILDREN AND
GROUPS THAT COME THROUGH --
AND THEY'VE BECOME SORT OF
INFORMAL DOCENTS IN MANY CASES
THEY VOLUNTEER IN GOOD NUMBER
THEY TURN OUT AND TO ALL OF OUR
EXHIBITIONS OUR NEXT ONE IS
PICASSO WE DID A WONDERFUL JULIA
CHILD EXIT WHICH WHAT
INTERNATIONAL PLAN AND THEY WERE
SO PROUD OF IT --
THE BETTER I CAN'T SPEAK FOR ALL
THE VETERANS BUT WE DO HAVE A
GREAT RELATIONSHIP WITH COM ALSO
WITH THE TELEVISION STATION AND
THEY OFTEN WILL COME OUT WE HAVE
THE FIRST MOM IN SPACE AN ASTON
NASA ASTRONAUT.
ANALLY FISHER AND THAT WAS WHAT
THAT WAS BROADCAST TO THE FOLKS
BACK AT THE VETERANS HOME WE
REALLY DO FEEL THAT WERE SO
CLOSELY CONNECTED TO THEM.
AND I'M REALLY PROUD TO TELL YOU
THAT WE SOUGHT AND OBTAINED
COUNTY FUNDING OF THIS.
START THIS PROCESS BY YEAR AGO
AND WE ARE BUILDING A PERMANENT
HISTORY CASE DEDICATED TO THE
COUNTRY THE HISTORY AND
CONTRIBUTIONS OF THE CALIFORNIA
STATE VETERANS HOME.
AND IT'S GOING TO INCLUDE A
ROTATING SERIES OF EXHIBITS THAT
BRINGS FROM THE PRIVATE
COLLECTION OF THE VETERANS HOME
LIBRARY OBJECTS THAT HAVE NEVER
BEEN SEEN BY THE PUBLIC FOR
SEVEN THEY HAVE A COLLECTION OF
SWEETHEART PILLOWS FROM WORLD
WAR.
TWO THEIR UNIFORMS THERE.
BATTLES OR THINGS LIKE THAT AND
SO WHAT WE REALLY YOU.
PLEASE DON'T BE --
EVER IN ANY DOUBT THAT THERE IS
A GREAT BENEFIT FROM THE MUSEUM
AND THE LAST THING I WANT TO SAY
TO YOU IS THIS.
THE THIRTY YEARS AGO OR THIRTY
ONE YEARS AGO.
PEOPLE ACTUALLY WE HAD OTHER
ALTERNATIVES OF PLACES TO BUILD
THIS MUSEUM WE WERE ENCOURAGED
TO COME BECAUSE THE LINCOLN
THEATER WHICH WAS WAS THERE
ALREADY --
THERE WAS A DESIRE ON THE PART
OF THE COMMUNITY TO BUILD
SOMETHING THAT IS EXISTS NOWHERE
ELSE IN OUR REGION AND THAT IS
TO SIDE BY SIDE CULTURAL
INSTITUTIONS.
THEY'RE OPERATING AT AT A WORLD
CLASS LEVEL.
GREAT ART AND AND CULTURE TO THE
VETERANS BUT ALSO TO BRING THE
COMMUNITY THERE TO ENJOY THAT
CULTURE.
SIDE BY SIDE WITH THE VETERANS
AND IF I BELIEVE IF YOU ASK THE
THE VETERANS AND YOU ASKED THE
COMMUNITY MEMBERS WHO FUNDED
THIS. TO THE TUNE OF YOU KNOW
TENS OF MILLIONS OF DOLLARS ON
ANY BY THE WAY I INCLUDING THAT
THE SIX HUNDRED AND SEVENTY ONE
THOUSAND DOLLARS WE HAVE TO PAY.
EVERY YEAR --
TO KEEP OUR OB ARE MUSEUM
OPERATING NONE OF WHICH IS
SUBSIDIZED BY THE STATE I THINK
THAT YOU WILL FIND YOU GOT
TREMENDOUS VALUE AND WE WE HAVE.
EXERCISE OUR OPTION TO RENEW OUR
LEASE WE AND TO BE THERE TILL
THE YEAR TWENTY FORTY AND BUT WE
WOULD LOVE TO BE PART OF THE
CONVERSATION AND MAKE SURE THAT
WE CONTINUE. TO BE OF AS MUCH
BENEFIT TO THE BUT THAT ARE AS
HOT AS WE CAN.
THANK YOU THANK YOU THANK YOU
FOR PUBLIC COMMENTS IN THE
CLARIFICATION BUT ACTUALLY EVEN.
IN YOUR COMMENTS SHOWING THE
DIRECT BENEFIT TO VETERANS AND
THE PROGRAMS ARE DOING.
THAT.
ADDITIONAL PUBLIC COMMENT.
THANK YOU MY NAME IS PATRICIA
MUSCOVITES AND I AM THE GENERAL
MANAGER OF LINCOLN THEATRE.
AND I HAVE A STATEMENT THAT OUR
BOARD OF DIRECTORS ASKED ME TO
READ AT THIS HEARING.
WHICH I THINK WILL ANSWER A FEW
QUESTIONS THAT HAVE COME UP AND
CORRECT SOME INACCURATE
STATEMENTS YEAH FIGURE PLEASE
TRY TO DO THAT WITH THE TWO
MINUTES AFTER YOU COULD ALWAYS A
BIT THE STATEMENT AS WELL FOR
THE COMMITTEE.
TO WOULD BE HAPPY TO YES --
ELECTRONICALLY OR A COPY WITHOUT
MY WRITING ON IT.
THANK YOU.
OKAY SO I'LL TRY TO BE FAST WE
WOULD ADDRESS THE FINDINGS OF
THE CALIFORNIA STATE AUDITOR HER
REPORT ISSUE TO THE JOINT
LEGISLATIVE AUDIT COMMITTEE
DATED JANUARY. TWENTY NINE
NINETEEN TWENTY NINETEEN
REGARDING FRIENDS OF LINCOLN
THEATRE THE NONPROFIT
ORGANIZATION THAT BUILT AND
OPERATES LINCOLN THEATRE
FACILITY AS IT AS IT IS KNOWN
TODAY.
WE KNOW THAT THE AUDITOR
RECEIVED COMMENTS ABOUT THE OUT
A REPORT FROM CALVET AND TGS
WHICH INCLUDED AS PART OF THIS
AUDIT REPORT.
BUT DID NOT SOLICIT ANY COMMENTS
FROM THE ENTITIES IT AUDITED.
EITHER DURING THE AUDIT OR AFTER
THE AUDIT WAS COMPLETED.
WE BELIEVE SUCH FEEDBACK FROM
LINCOLN THEATRE MIGHT HAVE
CORRECTED SOME FACTUAL ERRORS IN
THE AUDIT REPORT AND PROVIDED
NECESSARY BACKGROUND REGARDING
LINCOLN THEATER'S OPERATIONS AT
THE VETERANS HOME IN YOUR BILL.
WE'RE SURPRISED THE
DETERMINATIONS WERE MADE WITHOUT
HEARING FROM UNDERSTANDING AND
INVESTING ALL RELEVANT FACTS AS
IT RELATES TO THE PRINCIPAL
PARTIES INVOLVED INCLUDING THE
TENANTS.
THERE'S NO EQUITY FAIRNESS OR
DUE PROCESS IN THIS MANNER AND
APPROACH.
IN ORDER TO GET THE REAL A FULL
PICTURE OUR VOICES AND
HISTORICAL EVENTS AND FACTS MUST
BE INCLUDED TO BALANCE OUT THE
RESULTS.
ANYTHING SHORT OF THIS IS ON
DEMOCRATIC AND CAPRICIOUS.
FIRST AND FOREMOST WE WOULD LIKE
TO KNOW THE LINCOLN THEATRE AS
PART OF ITS TENDENCY CONTRIBUTED
MORE THAN TWENTY TWO MILLION
DOLLARS. TO RENOVATE AN AGING
AND UNDER UTILIZED THEATER WHICH
WAS ORIGINALLY BUILT AT THE VOTE
SOME IN.
NINETEEN FIFTY SEVEN WITH THOSE
PRIVATE FUNDS CONTRIBUTED THE
BUILDING WAS TRANSFORMED INTO A
MODERN MULTI USE STATE OF THE
ART TWELVE HUNDRED SEAT
PERFORMING ARTS CENTER.
SINCE THAT MAJOR RENOVATION
WE'VE CONTRIBUTED MORE THAN FIVE
HUNDRED THOUSAND IN ADDITIONAL
IMPROVEMENTS AND SIGNIFICANT
REPAIRS TO THE BUILDING.
OUR CURRENT STRATEGIC PLAN ALSO
INCLUDE THING AND WE ARE
pAN EXCELLENT SHAPE.
AS YOU CAN UNDERSTAND SUCH
SIGNIFICANT FINANCIAL INVESTMENT
IN REAL PROPERTY IS NOT POSSIBLE
WITH A SHORT TERM LEASE OR
OPERATING AGREEMENT.
WE NEED TO TELL OUR FOUNDERS AND
OUR PATRONS AT LINCOLN THEATRE
WILL BE AROUND LONG ENOUGH TO
SEE A RETURN ON ITS INVESTMENT.
WHEN THE AUDITOR'S APPRAISER
NOTED THAT REASONABLE MARKET
RENT FOR THE THEATER IS ONE
POINT THREE SIX MILLION PER YEAR?
THE AUDITOR FAILED TO NOTE THAT
THE VALUE UNDERLYING THAT LARGE
RENTAL AMOUNT WAS CREATED BY
LINCOLN THEATRE WHEN IT
CONTRIBUTED THE MONEY TO
RENOVATE AND MAINTAIN THE
PROPERTY.
IN EFFECT IT IS EXACTLY WHAT
LINCOLN THEATRE HAS ALREADY PAID
TO OCCUPY THE PROPERTY.
ANOTHER FINDING BY THE AUDITOR
WAS THAT ARE OPERATING AGREEMENT
DID NOT ALIGNED WITH THE
INTERESTS OF THE VETERANS SOME
RESIDENTS.
SPECIFICALLY THE REPORT MENTIONS
THAT LINCOLN THEATRE DOES NOT
PROVIDE FREE OR DISCOUNTED
TICKETS FOR TO OUR PERFORMANCES.
OUR ORIGINAL AGREEMENT AS NOTED
PREVIOUSLY PROVIDED A LARGE
ALLOTMENT OF FREE TICKETS TO
VETERANS SOME RESIDENTS BUT
CALVET INSISTED ON RENEGOTIATING
THE AGREEMENT TO REPLACE A FREE
TICKET PROGRAM.
IN EXCHANGE FOR AN INCREASE IN
RENT WHICH DOUBLED.
THE ASSUMPTION OF RESPONSIBILITY
FOR CERTAIN EQUIPMENT AND
SYSTEMS INTEGRAL TO THE BUILDING
AND FURTHER GIFTING OF ASSETS
FROM LINCOLN THEATRE TO CAL.
IN EFFECT CALVET WAS MOVING SOME
OF ITS FINANCIAL RESPONSIBILITY
BACK TO THE RESIDENTS OF THE
VETERANS --
CURRENTLY THE VETERANS HOME
ACTIVITIES OFFICE ADJOURNMENTS
HOW MANY TICKETS RESIDENTS WANT
FREAK SHOW AND PURCHASES THOSE
TICKETS OUT OF M. W. R. FUND.
WE ALSOPROVIDE LIMITED OF FREE
TICKETS TO THE RESIDENTS OF THE
VETERANS HOME ON OUR OWN BEHALF
AND WOULD BE WILLING TO REVISIT
THIS MODIFICATION IN OUR
OPERATING AGREEMENT.
WITH CALVET.
WE SUPPORT GETTING AS MANY
VETERANS HOME RESIDENTS TO THE
LINCOLN THEATRE IT'S POSSIBLE
IT'S OUR MISSION TO PROVIDE
ACCESS TO THE ARTS IN OUR
COMMUNITY ESPECIALLY TO VETERANS.
THE VETERAN THE VETERANS HOME
RESIDENTS STAGE MANY ACTIVITIES
AT THE THEATER. FOR EXAMPLE THE
THEATER HAS HOSTED A BLACK
HISTORY MONTH PRESENTATION.
BOOK SIGNINGS BALLROOM DANCES IN
TOWN HALL STYLE MEETINGS WITH
VETERANS AND THEIR ELECTED
OFFICIALS.
WHICH YOU GUYS WERE WERE
GRACIOUS ENOUGH TO ATTEND.
THAT RECENTLY THE VETERANS HOME
USE THE THEATER TO DO A STATE OF
THE HOME PRESENTATION FOR THE
VETERANS AS WELL.
WE DO NOT CHARGE MARKET RATES IF
ANYTHING AT ALL FOR THESE
VETERAN LET ACTIVITIES.
WE DO OUR BEST TO ALIGN THE
ACTIVITIES OF THE LINCOLN
THEATER WITH THOSE OF THE
VETERANS HOME IN AN EFFORT TO
CONTINUE OUR HEALTH IN
COLLABORATIVE RELATIONSHIP.
OUR OTHER ACTIVITIES INTEGRATE
THE VETERANS HOME WITH THE NAPA
VALLEY AS A WHOLE.
THERE ARE MANY LOCAL RESIDENTS
WHO WOULD NEVER HAVE VISITED THE
VETERANS HOME IF IT HAD NOT BEEN
FOR THE ACTIVITIES OF LINCOLN
THEATRE.
WE SERVE OVER FIFTY EIGHT
THOUSAND PATRONS AND OFFER A
HUNDRED FIFTY LIVE PERFORMING
ARTS EVENTS PER YEAR.
WE OFFER CHILDREN'S CONCERTS
OVER EIGHTEEN HUNDRED CHILDREN
PER YEAR. FOUR HUNDRED
PRESCHOOLERS RECEIVE FREE ARTS
AND MUSIC CLASSES EVERY WEEK WE
PROVIDE COMMUNICANTS ARTS THAT
BRING. SEVENTEEN HUNDRED
ATTENDEES PER YEAR DEAR PROGRAMS
OF CLASSICAL AND POPULAR MUSIC.
WE OFFER YOUNG ARTISTS THE
OPPORTUNITY TO PERFORM IN A
STATE OF THE ART PERFORMANCE
VENUE INCLUDING STUDENTS FROM
JUSTIN SIENA NAPA INVENTED HIGH
SCHOOLS.
AS WELL AS AN APPLE VALUE
SOMETHING.
WE OFFER FREE AND DISCOUNTED
RENTAL AND ORGANIZATIONAL
SUPPORT TOO MANY NONPROFIT
ORGANIZATIONS WHO HOST EVENTS AT
THE THEATER EACH YEAR.
WE ALSO HELP SUSTAIN ART AND
CULTURE IN NAPA VALLEY WE HAVE
SEVERAL MAJOR ANNUAL EVENTS
INCLUDING VESSEL NAPA VALLEY
LIVE IN THE VINEYARDS NAPOLI
FILM FESTIVAL.
ENOUGH I JUST GOT AWAY IN MUSIC
IN THE VINEYARDS.
WE ALSO SERVE AS THE HOME TO
SYMPHONY NAPA VALLEY.
ORGANIZATIONAL RESTRUCTURE TO
PROVIDE THE ONGOING SUPPORT
REQUIRED THE LEADER IN THE ARTS
AND CULTURE SECTOR OF NAPA
VALLEY WE HAVE A STRONG BOARD OF
DIRECTORS A CONSERVATIVE
MANAGEMENT STYLE DEDICATED STAFF
AND MANY VOLUNTEERS.
WE LOOK FORWARD TO SERVING THE
STATE OF CALIFORNIA AND NAPA
VALLEY COMMUNITY FOR YEARS TO
COME.
PLEASE COME JOIN US AND SPENT
SOME TIME IN THE THEATER YOU
WILL BE GLAD YOU DID SINCERELY
FRIENDS OF LINCOLN THEATRE PORT
DIRECTOR.
THANKS FOR PUBLIC COMMENT AND
OUT OF MANAGING THE TOBY.
ADDITIONAL DISCUSSIONS BETWEEN
THE THEATER CAL VETS AND THE
LEGISLATORS ARE REPRESENT AREA I
KNOW THE BOARD DOES BOTH OF THAT
AND JUST TO CLARIFY THERE WAS
NOT A BANKRUPTCY FILED --
IN TWO THOUSAND TWELVE THERE WAS
A PETITION TO DISSOLVE THE
ORGANIZATION WHEN IT WAS
DETERMINED THAT THE FINANCES
WE'RE NOT GOING TO BE ABLE TO
SUPPORT THE ONGOING OPERATION.
AND THAT PETITION FOR
DISSOLUTION WAS RESCINDED.
BECAUSE WE WERE ABLE TO
RENEGOTIATE WITH CAL THAT. TO
MAKE THE AGREEMENT SUSTAINABLE
AS WELL AS GETTING SOME
ADDITIONAL FUNDING.
BUT IT WASN'T A BANKRUPTCY THANK
YOU REPUBLICAN.
MY NAME IS JAMES MUSSON I'VE
BEEN RESIDING IN INDEPENDENT
LIVING AT THE ULTRA VETERANS
HOME FOR CLOSE TO FIFTEEN YEARS.
AND I HAD MOVED IN BEFORE THE
RENOVATION OF THE CONTAINER WAS
COMPLETED.
I WANTED TO CONCUR WITH SOME OF
THE REMARKS MADE BY MY COLLEAGUE
GOOD WITH MARK.
THERE IS NOT ENOUGH.
INPUT.
BY THE VETERANS RESIDING AT THE
HOME.
IN THE DECISION MAKING PROCESS.
WANTED TO QUOTE A SHORT PHRASE
FROM THE REPORT.
BEST INTERESTS OF THE HOME.
WHO MAKES THAT DECISION?
HOW IS THAT DECISION MADE?
LIKE TO POINT OUT THAT THE
ADMINISTRATOR AT THE ON FULL
HOME.
RESIDES AT THE HOME.
SO HE SHOULD HAVE AN IMPORTANT.
INPUT. TO THE SECRETARY IN
DETERMINING THE BEST INTEREST OF
THE HOME.
BUT IN PUTTING THAT INPUT TO THE
SECRETARY.
THAT ADMINISTRATORS SHOULD HAVE
A TOWN HALL OR OTHER MEANS OF
GETTING THE INPUT FROM THE
VETERANS SO THEY KNOW WHAT THE
VETERANS OPINION AND FEELINGS
ARE.
THANK YOU VERY MUCH.
THANK YOU. FOR YOUR COMMENTS ON
BUT ONE ONE OF THE COMMON SHOOT
ME.
ON DECEMBER EIGHTH TWENTY
FIFTEEN CHAIRMAN NAVA THE LITTLE
HOOVER COMMISSION.
SENT A LETTER TO THE GOVERNOR
AND THE LEAD LEGISLATORS.
THAT BETTER COULD HAVE BEEN
WRITTEN TODAY THAT LETTER SAID
IMMEDIATE ACTION WAS NEEDED. TO
ADDRESS THE INFRASTRUCTURE
PROBLEMS AT THE HOME.
AND HERE AT THE HOME IN YOUNG
FEEL.
WE'RE STILL WAITING.
THANK.
THANK YOU.
YES GOOD THERE'S ADDITIONAL
PUBLIC COMMENT HEARING AND
SEEING --
NINE WILL RETURN BACK TO MEMBERS
OF THE HELLO MISTER WITH THE TI
QUALITY.
WANT TO THANK THE AUDITOR DHS
CAL THAT'S FOR YOUR TESTIMONY
HERE TODAY I THINK --
YOU HEARD A LOT OF ISSUES OF
GRIEVANCES FROM MEMBERS OF EACH
OF THE COMMITTEES BUT ALSO THE
MEMBERS THAT REPRESENT THE AREA
AS WELL --
I'M LOOKING FORWARD TO SEEING
THE PROGRESS BEING MADE I THINK
I HEARD --
FROM EACH OF THE AGENCIES
AFFECTED.
THEIR WILLINGNESS TO MOVE
FORWARD AND TO ADDRESS THESE
ISSUES AND CORRECT THE SYSTEMIC.
ISSUES WE'VE SEEN IN.
WHETHER IT'S A TWENTY THIRTEEN
EARNED THE AUDIT BEFORE THAT
SOME OF THE SYSTEMIC PROBLEMS
THAT WE'VE IDENTIFIED.
I KNOW --
THE AUDITOR'S IDENTIFIED ALSO A
SIXTY DAY A SIX MONTH ON A ONE
YEAR CHECK IN FROM THE
RECOMMENDATIONS.
I AM HOPING THAT I WILL HEAR
FROM HER THAT EACH OF THE
AGENCIES AFFECTED WILL BE --
COOPERATING WITH HER MOVING TO
AND ALSO THE ISSUES RAISED IN
THE RECOMMENDATIONS --
I'M -- I
THINK I I SEE NODS SO I'M
ASSUMING THAT YOU GUYS ARE
WILLING TO WORK WITH THE AUTHOR
ON THAT BUT LET ME MOVE --
TO CENTER ACTUALLY DO HAVE SOME
CLOSING REMARKS.
THANK YOU MISTER CHAIR I'D LIKE
TO THANK OUR OUR COLLEAGUES FROM
THE ASSEMBLY THE SENATE --
FOR BEING HERE AND BEING FROM
PATIENT WITH --
THE AUDIENCE AND EVERYONE OF US
AND ESPECIALLY LIKE TO THANK YOU
GENTLEMEN AS WELL YOUR STAFF --
THE AUDIT YOU DID A GREAT JOB BY
I WAS VERY IMPRESSED WITH THAT
IT IT REALLY OPENED UP MY EYES
THE DOORS SAID WE ALL NEED TO
LOOK THROUGH --
BUT MISTER SECRETARY ONE OF THE
THINGS THAT THAT I YOU HAD
MENTIONED.
IT WAS MY UNDERSTANDING THAT IF
A VETERAN LIVE TO FAR AWAY FROM --
FROM A VETERANS HOSPITAL.
THAT -- YOU
LOOK INTO THAT I THINK THAT ARE
YOU NOT WITHIN FORTY MILES I
THINK THE LIMIT FORTY MILE YOU
SHOULD SHOW CENTER I I HAVE TO
BE CAREFUL TO SEPARATE OURSELVES
FROM THE FEDERAL VA.
AND YOU'RE REFERENCING THE THE
THE RECENT ADAPTATION OF THE
CHOICE ACT CALLED THE MISSION
ACT.
WHICH WILL GIVE.
OF THOSE VETERANS IN THE UNITED
STATES.
WHO HAVE ACCESS TO CARE AT A VA
HOSPITAL THE OPPORTUNITY SHOULD
THEY BE OUT OF --
OUT OF RANGE IF YOU WILL OR
WITHIN AND THEY CAN'T GET AN
APPOINTMENT AT A FEDERAL Vì
ã WITHIN SEVEN OR TEN DAYS.
THEY WILL BE GIVEN THE OPTION TO
GO SEE CARE IN THE COMMUNITY IF
APPROVED BY THEIR VA HOSPITAL.
THE ONLY MINOR IMPEDIMENT TO
THAT HAPPENING IS THEY HAVE TO
FIGURE OUT A FUNDING MECHANISM
FOR THAT YET OKAY WELL PLEASE
LOOK INTO THAT BECAUSE I THINK
THAT WOULD.
SOLVE THE PROBLEM IMMEDIATELY I
KNOW THAT --
WHEN I SERVED --
AND IN MY POSITIONS AND
REPRESENTING VETERANS AND I WAS
DOWN IN TEXAS SOMEWHERE AND
WE'RE ABLE TO DO THAT.
AND THE VETERANS WERE ABLE TO GO
TO THE LOCAL HOT SO PLEASE LOOK
INTO THAT THE OTHER THING I'D
JUST LIKE TO COMPLIMENT YOU FOR
STANDING UP IN OWNING.
THE SITUATION AND ACCEPTING THE
AUDIT AND AND READY TO WORK WITH
THEM AND BEFORE I SIGN OFF I
WOULD LIKE TO ACKNOWLEDGE
SENATOR BILL DODD.
AND ASSEMBLY WOMAN CURRY FOR
YOUR REPRESENTATION IN YOUR
AREAS AND I KNOW THAT --
YOU'VE BEEN THERE SEVERAL TIMES
AND I CAN APPRECIATE.
WHAT YOU'RE SAYING AND AS A
MAYOR OF A CITY THAT SOMETIMES
WE HAVE AN ENTITY THAT COMES TO
OUR CITY?
AND WE TRY TO BE BUSINESS
FRIENDLY AND AND I THINK OF WILL.
REALIZE THAT ALL OF US WHO
SERVED OUR GREAT COUNTRY --
LOOK TO YOU AND ALL OF YOU TO TO
ACKNOWLEDGE THE MEN AND WOMEN
WHO SERVED IF WE CAN COME
TOGETHER TO FIND THAT --
HAPPY MEDIUM BECAUSE OBVIOUSLY
THERE'S ISSUES TO ADDRESS BUT
THESE ARE BUSINESS ISSUES YOU
KNOW THE LEASES AND SO ON AND I
THINK WE CAN WORK THAT OUT OVER
TIME.
I'D LIKE YOU TO CONSIDER MISTER
SECRETARY ESTABLISH THAT.
THE OTHER THING IS --
TO LOOK AT THE INTERNAL AUDITS --
AS A MEDICAL DOCTOR OF WHAT'S
GOING ON UP AND DOWN THE STATE
OF CALIFORNIA IN ADVISE SOME OF
THE OTHER.
ADMINISTRATORS TO DO SOME
INTERNAL AUDITING SHOW --
WE'RE NOT LOOKING AT ISSUES
PERTAINING TO THE CARE AND
MAINTENANCE OF OUR VETERANS AND
THESE THINGS ARE.
ARE TANGIBLE WHO CAN WORK ON IT
WOULD TAKE CARE OF THEM --
BUT WHEN WE'RE TALKING ABOUT THE
CARE THE VETERANS WE WANT TO BE
SURE WERE PROACTIVE.
SO I THANK YOU FOR COMING BEFORE
US AND I APPRECIATE YOUR SERVICE.
TO OUR MEN AND WOMEN IN UNIFORM
AND I CERTAINLY WOULD LIKE --
TO GET OUT TO YOU KNOW IT'S
FILLED IN WHEN YOU GET OUT --
CAN FOR TO THAT TOO THANK YOU
GET.
RIGHT.
THANK YOU THANK YOU AND WE WILL
ALL GO AHEAD AND CONCLUDE THE
JOINT LEGISLATIVE OVERSIGHT
HEARING.
THANKS FOR ALL YOUR TESTIMONY
WE'RE LOOKING FORWARD TO SEEING
THOSE RECOMMENDATIONS PUT INTO
ACTION.
THIS MEETING IS ADJOURNED