Ed and Beatriz Fernandez, Home Garden residents for three years, say they are tired of what they say is a dysfunction of the community service district. Three years ago, when they attended the meeting, they saw the board members bickering at each other over whether to provide a legally blind board member all documents to be voted at least 72 hours before the meeting.

On Thursday, they saw it again: Board member Daniel Ruff requesting documents in advance and the rest of the board expressing reluctance, even annoyance at his request.

"The board needs to do their job. The board isn't doing their job," Ed Fernandez said.

His wife, Beatriz, said, "Something was wrong since the first time we attended the meeting three years ago, and I remember we didn't like what we heard. The same issue has come up over and over since then. It upsets me. It's disrespectful. It's discrimination."

That's one of many issues the board is grappling with in light of the blistering grand jury report issued last month that alleged numerous procedural violations. The Fernandezes were among those who are concerned about what the grand jury had to say about the district.

Anticipating the board would discuss responses to the grand jury report, two dozen residents and community advocates, many of them unhappy, packed into the district's tiny boardroom on Second Place Thursday.

In an emotionally charged meeting, some demanded changes, asking the board to follow the law and improve its acceptability to rate payers. Some offered up help. Some sought answers to questions. And others just came to listen.

The meeting was marked with disagreement from the beginning.

Ruff, a board member, urged that the board should follow the state open meeting law and the government code that regulates the quasi-governmental board operation. According to the grand jury report, the community service district must adopt a budget, hire a treasurer and general manager and comply with the Brown Act, the state's open meeting law.

Other board members say doing what the grand jury recommends means higher rates for water, sewer and garbage pickup services.

The economically disadvantaged residents of Home Garden -- a community of 1,700 which is among the poorest in Kings County -- currently pay about $80 a month for garbage, sewer, water and streetlights.

"If it wasn't for a lot of pro bono work by (legal counsel Dan Fadenrecht) and us, the board won't function. It would go broke. If we do what the grand jury wants, somebody is going to pay for it," said board member Charles Lemmon. "Guess who's going to pay for it? It ain't going to be me."

Ruff disagreed.

"We sit in here meeting after meeting trying to find economic, financial or personal reasons that we just cannot follow the law. It's incumbent upon us to follow the law. Regardless of what we say about it, the law says if we don't follow it, we can be subject to penalties. We must follow the law."

A handful of unidentified residents spoke up and said they are willing to shoulder a rate hike if that guarantees better transparency and accountability.

Even an accountant who has audited the district called for a change.

Joe Scalia, an accountant with M. Green & Co., showed up to Thursday's meeting and warned the district of its lack of competent financial record-keeping, budget process and personnel training, saying "This day was going to come."

"I'm here today because I'm getting phone calls from the residents who say there's no checks and balances here," said Scalia. "When I did perform the audit, it was one of the toughest audits I'd ever done."

Scalia offered help to train personnel to take charge of the bookkeeping and said, "I told you three years ago that this day would come. I told your board would be liable for the lack of accountability.... People are just asking for accountability."

Currently, the district has no bylaws. Legal counsel Dan Fadenrecht wears the hats of the general manager and the treasurer. According to the grand jury, the board has neither adopted nor operated under a budget.

In 2007, an embezzlement by an employee became an issue. When a board member requested information, Fadenrecht refused to give it to him citing "a personnel matter," according to the grand jury report, which also revealed that the employee was hired in violation of the district's own policy regarding nepotism.

Fadenreht said changes are "inevitable" but said they don't have to be drastic.

"You have to use common sense when you try to apply the rules," Fadenrecht said.

He is skeptical of the wisdom of hiring a full-time manager. He said the district has been operating without a manager since 1959 and "it has worked well."

"If you hire a manager or a treasurer, we have to pay a prevailing wage and benefits," Fadenrecht said. "It's a two-edged sword. If it works without doing it and doesn't do any harm or doesn't cost any extra money, the board needs to decide whether to strictly comply or do what common sense dictates."

The reporter can be reached at 583-2429.

(July 18, 2008)