The County of Mendocino’s chief executive acknowledged Wednesday that the County’s criminally charged former Payroll Manager worked long hours to single handedly prepare a payroll for 1,200 public employees.
CEO Darcie Antle testified that Paula June Kennedy, facing trial for felony misappropriation of public funds along with suspended Auditor Chamise Cubbison, managed to meet payroll demands despite years of coping with a flawed computerized processing system called MUNIS that required the user to have knowledge of 1,000 or more pay codes.
“It was exhausting work for a single person. The hours she was putting in was alarming to all of us,” said Antle.
Antle said when Kennedy completed one payroll, she had to “turn around and start the next one.”
Antle was called to testify by special Prosecutor Traci Carrillo of Sonoma County, who was hired by District Attorney David Eyster to try the contentious case after his own role began to be publicly questioned.
Antle’s testimony came during the first day of a long-delayed preliminary hearing for Kennedy and suspended Auditor Chamise Cubbison that finally got under way Wednesday in Mendocino County Superior Court.
Carrillo spent the day with Antle and Cherie Johnson, the County Deputy CEO in charge of Human Resources, attempting to set the stage for her effort to show criminal misconduct on the part of Cubbison and Kennedy as alleged. It was slow going, and often bogged down in questions surrounding County policies versus law.
Cubbison and Kennedy each face a single felony count of misappropriation of public funds filed by Eyster, who in October 2022 formally accused Cubbison of allowing Kennedy to use an obscure pay code to collect about $68,000 in extra pay over a three-year-period during the Covid pandemic.
Clouding the case has been allegations that Eyster has been waging a politically-inspired vendetta against Cubbison after quarreling with her in past years for challenging his own office expenses.
In an extraordinary move, Eyster in 2021 blocked Cubbison’s appointment to serve as interim Auditor when former Auditor Lloyd Weer retired early.
Unknown to the public at the time, Eyster also outlined a three-step plan to consolidate the Auditor-Controller and Treasurer-Tax Collector officers, and eventually do away with elected officials to lead them in favor of a new county Finance Director under the control of the County Board of Supervisors. The plan was implemented over stiff opposition from senior county finance employees including Cubbison, Weer and retired Treasurer-Tax Collector Shari Schapmire, and civic groups like the Mendocino County Farm Bureau.
On Wednesday, County CEO Antle and Cherie Johnson, the Deputy CEO in charge of the county’s Human Resources Department, were the first two witnesses among the five who are expected to testify during the scheduled two-day hearing.
Judge Ann Moorman will decide at its conclusion whether the case will go to trial or be dismissed as sought by defense attorneys acting on behalf of Cubbison and Kennedy.
Antle and Johnson agreed that County administrators did not question if Kennedy had performed the work covered by the extra pay.
“No doubt,” said Johnson. She outlined a series of merit pay raises for Kennedy over the year, including one for extraordinary merit during the Covid pandemic.
At issue, however, is who if anyone told Kennedy to use to the “470” pay code which both administrators testified are typically used in worker comp cases. Normally, the Board of Supervisors must authorize extra pay. Only amounts under $1,000 can be processed internally, which Kennedy and Cubbison are accused of doing.
Johnson’s testimony also confirmed that former Auditor Lloyd Weer actively engaged in efforts with the CEO’s Office to secure extra help and salary reclassifications for Kennedy during the period in question. Weer has denied directly authorizing Kennedy to use the disputed pay code to compensate herself but he agrees her workload had been a chronic issue among him, Cubbison and County administrators.
Former CEO Carmel Angelo wanted to slice the payroll function from the Auditor’s Office because of concerns that only one person – Kennedy – knew how to meet the demands.
Kennedy and Cubbison both resisted the efforts, however. They did not believe the growing number of Deputy CEOs Angelo was putting in place had the experience or know how to make the County’s admittedly flawed system work.
Antle acknowledged that after Cubbison was locked out of her office and Kennedy’s remote at home office equipment was seized, the county had to bring in outside help to meet payroll demands.
Antle, however, said there is now a checks and balance system in place requiring she and acting auditor Sara Pierce to review and approve every payroll before money is paid to County employees.
“I was doing that out in the hallway today before coming in to testify,” said Antle.
The preliminary hearing resumes at 10 a.m. Thursday.
This whole thing is an expensive joke. Moorman should dismiss all charges against Cubbison and Kennedy with prejudice!
I agree. However, this is not a joke to the two women the District Attorney charged. This issue is about more than a $2500.00 bar and food tab at the Broiler Steak House. To the District Attorney, $2500.00 is pocket change. No, this is not really about money. This is about destroying someone the DA truly hates or fears.
Sadly, Ms. Kennedy the recipient of the $67,000.00 in extra pay, which was legally earned is nothing more than collateral damage., Straight up!
With the presumed incestuous nature of a small-town, judicial system, it seems it would be awkward if not unlikely for a Judge to overrule a well-known multi-term District Attorney.
The judicial community considers itself an elite club. Outsiders need not apply…
Ask around,
Laz
Laz is correct. The mere fact that this dressed up vendetta has taken two years to get to its prelim, bouncing around the superior court from one laughably overpaid palsy-walsys to the next, as it meandered to its jive preliminary hearing this week, tells you all you need to know about Mendo’s justice system. I’d be astounded if Moorman tosses it.
“When elephants fight it is the grass that gets trampled.” It sounds like initially Cubbison and Kennedy got caught in a larger power triangle fight between the CEO, Auditor-Controller and District Attorney. The fight was over payroll, with the CEO and Auditor-Controller vying for control, and the BOS being unaware of the brewing problem or ineffective at mediating or resolving the dispute as a body. The DA then inserted himself and his own grievance into the fray, sounds like maybe at the request of the CEO or certainly in coordination with the CEO and some members of the BOS, but apparently not the BOS as a body in open session. At some point in time, the fight became or was originally always about consolidating the financial offices and placing them under the exclusive control of the CEO and BOS. Then a big oops was made in the AC Office, using a 470 payroll code to pay Kennedy for work she was performing. Maybe she meant to enter code 288, or 329. Whatever happened, happened without formal approval, probably because the BOS and CEO would have likely denied the pay, thereby imploding the payroll system as Kennedy would likely leave suddenly and hire an attorney. Cubbison did what should be done, trying to involve County Counsel in the issue for a resolution, but apparently that went nowhere. With the CEO aligned with the DA, they employ the shaky financial investigative services of the Sheriff-Coroner, but instead of following where the evidence leads to, it appears the investigation just highlights the 470 oops and concluded without thorough examination. Instead of correcting the oops and working together like adults, the oops is seen as a tool in the broader power struggle. Cubbison is elected and becomes one of the elephants and the Auditor-Controller becomes the proverbial odd man out with the consolidation already underway. Traditional allies like the Treasurer no longer exist, and County Counsel is not helpful. The Auditor-Controller is arrested and ousted without pay or a hearing all based on an oops, exposing the County to needless additional litigation. Emails mysteriously disappear despite reports that the system is backed up daily and physical hard drives are transported to an alternate site or sites for just such a catastrophic event. In the end there’s really no clear winner. The BOS, CEO and DA get what they wanted, but at a huge potential cost to the taxpayer and the reputation of their offices.