DATE: September 12, 2000
TO: Board of Supervisors
SUBJECT: ACTIONS TO RESTORE PUBLIC CONFIDENCE IN, AND COUNTY CONTROLS OVER THE TREASURER/TAX COLLECTOR DEPARTMENT
Summary: On August 8, 2000, following a thorough investigation, the Chief Administrative Officer determined that Bart Hartman, the Treasurer/Tax Collector for the County of San Diego, had engaged in a pattern of sexual harassment. The investigation also disclosed that Mr. Hartman had neglected his duties, shown very poor judgment, wasted County resources, and created turmoil within his department. The Board of Supervisors sent Mr. Hartman a letter condemning his actions as a betrayal of the public trust, and asking him to resign from office. To date, Mr. Hartman has declined to step down.
A sub-committee of this Board was formed to review what, if any, actions we could take in response to Mr. Hartman's betrayal of the public trust, including his neglect of duties and demonstrated poor judgment. Having reviewed the matter with the Chief Administrative Officer and counsel, the sub-committee recommends that the following actions be taken by this Board.
Recommendations: 1. Adopt the Resolution Censuring the Conduct of Bart Hartman, Treasurer/Tax Collector for the County of San Diego, calling for, among other things, his resignation and his repayment to the County taxpayers of the $100,000 paid as the result of his actions.
2. Adopt the Resolution amending this Board's Delegation of Investment Authority and the County Treasurer's Pooled Money Fund Investment Policy for the year 2000.
3. Approve the introduction (first reading) of the ordinance; read title and waive further reading of the ordinance (majority vote):
AN ORDINANCE AMENDING THE COMPENSATION ORDINANCE RELATING TO THE REDUCTION OF THE SALARY RANGE OF A CLASSIFICATION IN THE TREASURER/TAX COLLECTOR'S DEPARTMENT AND REQUIRING THE CHIEF ADMINISTRATIVE OFFICER'S APPROVAL OF ALL SALARY ADJUSTMENTS FOR UNCLASSIFIED SERVICE EMPLOYEES IN THE TREASURER/TAX COLLECTOR'S DEPARTMENT.
Submit ordinance for further Board consideration and adoption (second reading) on September 19, 2000.
4. Approve the introduction (first reading) of the ordinance; read title and waive further reading of the ordinance (majority vote):
AN ORDINANCE AMENDING THE COUNTY ADMINISTRATIVE CODE RELATING TO THE ESTABLISHMENT OF TRAVEL RESTRICTIONS ON THE TREASURER/TAX COLLECTOR'S DEPARTMENT.
Submit ordinance for further Board consideration and adoption (second reading) on September 19, 2000.
Fiscal Impact: BACKGROUND: Immediately after Mr. Hartman assumed office, he promoted Ms. Corpuz to the position of Chief Deputy Tax Collector at a salary in excess of $100,000. In early June 2000, Ms. Corpuz filed a complaint with the Office of Internal Affairs (OIA), alleging that Mr. Hartman had sexually harassed her and had created a hostile work environment. OIA conducted an investigation into the allegations, reviewing hundreds of pages of e-mail communications and interviewing approximately one dozen witnesses. As a result of that investigation, on August 8, 2000, the Chief Administrative Officer determined that, over the course of approximately one year, Mr. Hartman had engaged in a pattern of sexually harassing Ms. Corpuz. The investigation also disclosed that Mr. Hartman spent an unconscionable amount of County time and resources engaging in his relentless personal pursuit of Ms. Corpuz, while neglecting the duties entrusted to him, and creating waste, turmoil and mismanagement within his department.
On August 8, 2000, the Chief Administrative Officer and this Board each sent Mr. Hartman letters condemning his conduct. This Board asked Mr. Hartman to resign from office, which he has refused to do, despite additional requests from the public and the media. The Chief Administrative Officer also asked Mr. Hartman to report what actions he has taken to ensure that similar acts do not recur within his department, which report has not been received.
The Board recognized that, due to Mr. Hartman's status as an elected official, its powers over him are very limited. (In 1996, the electorate rejected a proposed Charter amendment which would have made the Treasurer/Tax Collector an appointive rather than elective office, in which case this Board would have had direct authority over Mr. Hartman.) Despite its limited powers, the Board felt a duty to exercise its general authority to oversee Mr. Hartman's official conduct, particularly as it relates to the collection, safekeeping and management of public funds. The Board also felt an obligation to do all within its powers to restore the public trust which Mr. Hartman had betrayed. To that end, this Board appointed a sub-committee to review Mr. Hartman's actions and report concerning what, if any actions, it could take in response to them.
The sub-committee has reviewed with the Chief Administrative Officer and counsel Mr. Hartman's conduct and this Board's powers over him. We also have been assured that the County Pooled Money Fund is sound, and that members of the Treasurer's Pool Oversight Committee believe that this Board's delegation of investment authority to the Treasurer/Tax Collector for the year 2000 should remain in place. Nonetheless, the sub-committee recommends that the Board take the following additional actions in an effort to do all that it can to restore the public trust betrayed by Mr. Hartman.
1. Mr. Hartman should resign from office immediately.
The Board should call once again for Mr. Hartman to resign his office immediately. The investigation into Ms. Corpuz's complaint disclosed not only that Mr. Hartman engaged in sexual harassment, but also that he lacks judgment, abuses his power, neglects his duties, mismanages County resources, and creates turmoil within his department. Despite this Board's August 8th request that Mr. Hartman resign, and similar requests made by the public and the media, Mr. Hartman refuses to step down. Only by his resignation may public trust in the important functions performed by the Treasurer/Tax Collector be fully restored.
2. Mr. Hartman should repay the $100,000 spent from County coffers to compensate Ms. Corpuz for his actions.
As a result of Mr. Hartman's treatment of Ms. Corpuz, the County paid her the sum of $100,000. Mr. Hartman should repay these funds to the County taxpayers who elected him to serve their interests, but whose interests he betrayed.
3. Absent his resignation, the Board should impose additional internal controls and oversight concerning management of the County Pooled Money Fund.
As stated, the sub-committee has received assurance from the Chief Financial Officer and the Treasurer's Pool Oversight Committee that the County Pooled Money Fund remains sound, despite Mr. Hartman's actions. Members of the Treasurer's Pool Oversight Committee have expressed the view that this Board should not rescind its delegation of investment authority to the Treasurer/Tax Collector for the year 2000.
Upon review, the sub-committee agrees that rescinding the delegation of investment authority as to County funds at this time would have a deleterious effect on other depositors and Pool investments. However, as a condition of continued delegation of investment authority, the Board can and should adopt certain additional internal controls to ensure that public funds within the Pool are safeguarded to the maximum extent practicable. These additional safeguards include a requirement that the Treasurer/Tax Collector consult with and seek the concurrence of the Chief Financial Officer regarding investment decisions; if concurrence is not possible, the Chief Financial Officer shall report to this Board and the Chief Administrative Officer the nature of the non-concurrence and the reasons for disagreement. These controls are proposed as amendments to the Board's Delegation of Investment Authority and the Investment Policy.
4. This Board should impose greater restraints on Mr. Hartman's ability to set salaries for individuals appointed to and serving in highly paid positions within the unclassified service.
As noted in the Chief Administrative Officer's letter dated August 8, 2000, elected officials like Mr. Hartman have broad discretion to appoint staff and set salaries within ranges established by this Board through the Compensation Ordinance. However, this discretion is not unfettered and must not be abused. Investigation of Ms. Corpuz's complaint raised questions as to whether Mr. Hartman has abused his discretion by appointing under-qualified persons to exceptionally high salaries.
The sub-committee recommends that the Board adopt amendments to the Compensation Ordinance (1) reducing the salary range for Class No. 0231 from $65,000 - $105,560 to $65,000 - $87,048; and (2) requiring that the Chief Administrative Officer approve all
salary adjustments recommended by the Treasurer/Tax Collector for employees appointed to and serving in unclassified positions in the Department of the Treasurer/Tax Collector.
5. The Board should impose greater controls on the ability of Mr. Hartman and his staff to travel on County business at taxpayers' expense.
Investigation of Ms. Corpuz's complaint also brought to light that Mr. Hartman appears to have exercised poor judgment regarding business travel at taxpayers' expense. Mr. Hartman also appears to have sought and received County reimbursement for telephone charges not wholly related to business. As a result, the sub-committee recommends that the Board adopt amendments to the County's Administrative Code requiring that the Board pre-approve all travel out of state or in excess of twenty-four hours to be taken by the Treasurer/Tax Collector or his staff.
6. If Mr. Hartman continues to refuse to resign from office, he should provide this Board with a written report detailing those measures he has taken to ensure that similar actions do not recur within his department.
As noted above, on August 8, 2000, the Chief Administrative Officer asked Mr. Hartman to provide a report detailing what measures he has taken to ensure that similar actions do not recur within his department. The Chief Administrative Officer and the Director of Human Resources have asked Mr. Hartman to submit himself and his staff to sexual harassment training. To date, Mr. Hartman has not responded to these requests.
This Board continues to feel strongly that only Mr. Hartman's resignation will restore the public's confidence in the duties and responsibilities of the Treasurer/Tax Collector's office. However, absent his resignation, Mr. Hartman should provide a written report to this Board no later than the meeting of September 26, 2000, including at minimum the information previously requested.
Respectfully Submitted,
DIANNE JACOB RON ROBERTS
CHAIRWOMAN JACOB AND VICE CHAIRMAN ROBERTS
NONE
On January 4, 1999, Bart Hartman assumed office as the duly elected Treasurer/Tax Collector of the County of San Diego. At that time, he took an oath to uphold all state and federal laws. He also was entrusted with certain solemn duties to collect, deposit, safeguard and manage billions of dollars in public funds that come through the County Treasury annually. In anticipation of his faithful performance of those duties, by resolution on December 14, 1999 (18), this Board delegated to Mr. Hartman for the year 2000 investment authority over funds held in the County Pooled Money Fund, which includes funds of numerous public agencies, and approved the San Diego County Treasurer Investment Policy to govern that delegation of authority.
Chairwoman
Vice Chairman
