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Question 2 -- The Commission is Doing Better But Still Acts Above the Law

Why does the Commission Ignore the Clear Language and Intent of State Law? Who Knows? The Shadow Knows...

2 -- State Law Regarding Budgets and Meetings

ARTICLE TOPICS:

An Interesting Exchange Between Bruce Kittess and the Commission

Budgets

State Laws Regarding Budgets & Meetings
 

There are several issues to discuss on this page. If the Commission for the Reconstruction of the Virginia & Truckee Railway Tourist Railroad had never tried to get $10 million more from Carson City, no one would be paying attention to this stuff.

WHO IS IN CHARGE OF THE BUDGET?

To start, I think it's a fair question to ask, " who is in charge of the budget?" You would think that either a staff member or the Treasurer, Ron Allen, would be on top of this. Yet, after voting last year not to ratify bills unless a budget report was made available to the Commissioners, the Commission has repeatedly done just that. Bonnie Weber has complained about this and others have agreed. There is always a new excuse.

What's more scary is an exchange that happened at the July 2008 meeting. While you may have to do more research to understand the entire situation, this exchange between Bonnie Weber and Ron Allen is telling:
Commissioner Weber spoke up again to ask, “I am very confused, I have no idea from having a verbal report of what our balance is and how much money we have, and I feel it's so important. I don't mean to give Ron a hard time, can he tell us with this being paid how much money will be left in the account?”
Ron Allen said, “at this moment no, there's no way I can.” Weber: “Approximately?” Allen gave an answer and then said “but that's not going to be an accurate amount.”
(from renorailfans.com July 2008 meeting report, see agenda Item 7, Ratifying Bills For Payment)

BRUCE KITTESS EXPRESSES HIS CONCERNS, TREASURER SAYS "I CAN'T ADDRESS THAT"

At a previous meeting Ron Allen was asked about the entire budget. Bruce Kittess of Carson City was asking questions and the following exchange happened:
Bruce K. got up to say that Allen was discussing cashflow, said “those of us in Carson City who are being asked to vote on an issue for another $10 million, we want to know about the project, from the start to the finish. How much can we plan, what's the adjustments, how much is it going to cost to finish. We're interested in the project financing, no so much your cashflow.” Going on, Bruce said, “I've looked at your financial statements, it's about a business, your assets and liabilities, that's interesting; we're interested in the project costs from start to finish.”

Allen replies, “actually I can't address that, I'm the treasurer, I'm not the engineer. That's up to Mr. Dorr.” He referred Bruce to Ken Dorr.

Bruce replied, “That's the project manager, that's the numbers we're interested in, the project. What if there is no more $10 million dollars, there is no more money? We heard you say you can get across the freeway, we want to know what we're going to get for the $37 million.”
(from renorailfans.com June 2008 meeting report, see agenda Item 7, Treasurer's Report)

RON ALLEN IS SMUG AND WRONG, A BAD COMBINATION

See the renorailfans.com September meeting report, Commissioner's Comments for a full treatment of this subject. Briefly, Ron Allen tried to use a letter from the Nevada Attorney General's office to clear the Commission of all wrongdoing. Actually, what happened was, the AG said the Commission was not posting minutes fast enough, but since the error had been corrected, no action would be taken.

This excerpt is from the September meeting report:
WHY RON ALLEN THINKS HE SMELLS LIKE A ROSE AND OTHER LEGAL THEORIES
Treasurer Ron Allen's comment was most notable. “This was a letter is response to complaints about some of the Commission's practices.” He went on, “It does validate ... sometimes it appears to certain people that we're not doing a satisfactory job in a satisfactory manner, and this vindicates us of that.”

COMMISSION IGNORES FUNDING MECHANISM AND ROTATING MEETING REQUIREMENT

The rest of this page is a long excerpt from the above-referenced September, 2008 meeting report, starting with Ron Allen's comments:
  1. COMMISSIONER COMMENTS

John Flanagan, Commissioner from Storey County (Virginia City) mentioned that a proposal was in the works to put windmills along several miles of ridgeline above Virginia City, Gold Hill and Silver City.

WHY RON ALLEN THINKS HE SMELLS LIKE A ROSE AND OTHER LEGAL THEORIES

Ron Allen's comment was most notable. “This was a letter is response to complaints about some of the Commission's practices.” He went on, “It does validate ... sometimes it appears to certain people that we're not doing a satisfactory job in a satisfactory manner, and this vindicates us of that.”

Please note that a complaint letter about SOME of the practices is being used by Ron Allen to vindicate all their practices. Read on for detail, but realize this was a challenge to press the Commission where their practices don't meet with legal requirements. Because this project has received Federal funding, legal requirements include Federal Law and the Code of Federal Regulations. A letter from the STATE AG doesn't vindicate the Commission on CFR requirements.

Back to Ron Allen, complaints had gone to the Attorney General's Office regarding maybe 3 of 20 or 30 items where the Commission allegedly violates government law. The Attorney General wrote a letter to the Commission stating they were closing their file. The letter only addressed minor issues about how the agendas are written. I have not seen this letter yet.

In a conversation with the AG's office this morning (9/10/08) I was told that the AG doesn't have oversight over the Commission because it's a local agency. The AG rep I spoke to said if the public is not happy with the Commission they have to sue them directly in court. The AG made clear that the letter did not represent an approval of all Commission actions, just that nothing the Commission did wrong came under the jurisdiction of the Nevada State Attorney General.

While Ron Allen claimed the AG letter “vindicated” the Commission, the AG said it did no such thing!

LAWBREAKING 1 – HOW TO KEEP THE MEETINGS IN CARSON CITY

I can give two examples where the Commission ignores/breaks state law. The enabling law says the Commission SHALL rotate their meetings among the represented counties, yet every meeting is in Carson City. Here's the part of the law:

Sec. 5. Meetings; limitation of liability of Commissioners.

3. The governing bodies shall each make available an appropriate meeting room and provide adequate clerical staff and equipment to provide adequate notice of the meeting and to produce minutes and audio recordings or transcripts of the meeting and any other assistance necessary to allow the Commission to comply with the provisions of chapter 241 of NRS.

4. The Commission shall alternate the location of its meetings among the facilities provided pursuant to subsection 3.

I was told by a Commission member that if the meetings had to rotate they might only do quarterly meetings, not monthly meetings. GOOD! Perhaps if they only met quarterly they'd have to be more focused on serving the public, or at least they have less opportunity to waste taxpayer dollars.

LAWBREAKING 2 – HOW TO IGNORE THE LAW, LOSE FUNDING AND BE LESS ACCOUNTABLE

Next is a part of the law that says the Commission shall allocate costs among represented bodies by determining the allocation of benefits among the five counties represented:

Sec. 9. Budget; funding of costs; Commission not entitled to distribution of revenue from supplemental city-county relief tax.

1. The Commission shall adopt a budget for its operation and for each project it proposes for presentation to the governing bodies. Each budget must be accompanied by a proposed allocation of the net cost of the budget among the governing bodies which must be based upon the benefit of the Commission or project to the jurisdiction of the governing body or another equally appropriate indicator.

2. Upon final determination and allocation of the costs by agreement of the governing bodies, each governing body shall include its portion of the costs in its budget for the purposes of chapter 354 of NRS and shall fund its share... (by various methods – ed note)

This part of the law is a dead letter. According to the Commission, the budgets have never included the proportionality/allocation estimate called for in Sec 9, Subsection 1&2. On one hand the Commission might say, the “bad” counties like Washoe and Lyon aren't willing to significantly fund the project, so why should they bother figuring out the proportionality.

On the other hand, since the Commission has never shown or proved the benefit to Washoe and Lyon County, why should they be expected to provide funding.

According to the law if this proportionality report WAS included with the budget the “bad” Counties would have to pony up.

In summary, the Commission is too lazy to do a proportionality report as required by law. The Counties would be legally required to pay up according to their share of the benefits. This doesn't happen, thus the Commission blames the evil counties for not paying their fair (unspecified) share.

The worst effect of this “lawbreaking” is that budgets are passed and plans are made without the counties being on the hook to pay for them. And we still wonder why the costs are out of control? There's no incentive to look at ways of saving money.

You can look these up at the Nevada Legislature's page for V&T Special Act.