Report I2016-2 Recommendation 14 Responses

Report I2016-2: Investigations of Improper Activities by State Agencies and Employees: Conflict of Interest, Violation of Post-Employment Ethics Restrictions, Waste of State Funds, Misuse of State Resources, and Incompatible Activities (Release Date: August 2016)

Case Number I2014-0934

Recommendation #14 To: Transportation, Department of

Initiate appropriate collection procedures and, if necessary, eviction procedures for tenants who are delinquent in the payment of rent, utilities, or late fees.

Agency Response From May 2017

In March 2017, Caltrans provided us with a copy of the city bill to confirm that the $3,640 credit was applied to its account in August 2016. In addition, Caltrans reported that it began legal action against another illegal occupant. The unlawful detainer paperwork was delayed because it had to verify the legal owner of the mobile home with the Department of Motor Vehicles and the Department of Housing and Community Development before it could serve the legal owner of the mobile home as well as the occupant in possession of the mobile home. Further, Caltrans reported that it sold the property on March 20, 2017. All tenants were either in good standing or had been evicted, with the exception of one tenant, at the time of the sale. From July 2016 to March 2017 Caltrans collected $116,474 for current rent and utilities, and overdue rent, late fees, and utilities.

California State Auditor's Assessment of Status: Resolved

Agency Response From December 2016

Caltrans reported that the program is still working on reconciling the delinquent tenants. In addition, Caltrans provided an email from a city employee that shows Caltrans was credited $3,640, which was applied to its August and September utility bills. Caltrans also provided a spreadsheet, although it did not have the most up-to-date information, that recorded the collection efforts it has made, including unlawful detainer filings. Further, Caltrans reported that it has a company in place that will read meters. The readings will be forwarded to a billing company that will provide tenants with utility statements.

California State Auditor's Assessment of Status: Partially Implemented

Agency Response From July 2016

Caltrans stated that it began an audit of all of the mobile home park tenant accounts and expected to complete its audit in late July 2016. In addition, Caltrans stated that as of June 2016, nine tenants have paid their delinquent rent and late fees for the previous 12 months, a time limitation mandated by civil procedures. Caltrans also stated that the city in which the mobile home park is located is reviewing its trash service bill to verify the correct billing amount. Further, Caltrans stated that it had entered into two contracts, one for meter reading and one for billing each tenant based on actual utility use, and that the sub-meters at the mobile home park were read in July 2016.

California State Auditor's Assessment of Status: Partially Implemented

All Recommendations in I2016-2