Kern County 2016-2017 - California Grand Jury Reports

F1: The District Staff consists of: a. District Manager, position filled b. Office Manager, position vacant c. Office Assistant, position filled d. Maintenance Supervisor, position filled e. Maintenance Worker, position filled f. Custodian, position filled g. Recreation Coordinator, position filled, seasonal

Related Recommendations (2)

R7: To address community concerns, the FPPUD should consult and work cooperatively with the Kern County Parks and Recreation Department, to research and develop solutions to the pond issue. (Findings 1 and 18) NOTES: • The Kern County Park and Recreation Department, Frazier Park Public Utility District and the Lake of the Woods Mutual Water Company should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 APPENDIX:

R20-30: pounds per square inch (psi) to as high as 130 psi (See Appendix B). F. Booster pumps are used to move water up to the storage tanks on an as needed basis. G. According to the June 30, 2014 Financial Audit Report for FPPUD: 1. Total non-operating revenue decreased $364,138 over the course of the year’s operations. 2. Total net operating and non-operating revenues decreased $989,190 over the course of the year’s operations. The decrease in 2014 is due primarily to the accounting of the $1,000,000 United States Department of Agriculture (USDA) grant-loan in 2013. 3. Total expenses increased $207,089 over the course of the year’s operations. 4. Future revenues have been pledged to repay $1,400,000 in water revenue bonds issued in December 2005, and $2,100,000 in water revenue bonds issued during May 2011. Proceeds from the sale of bonds provided financing for the improvement and expansion of the current water delivery system. The bonds are payable solely from all revenues through fiscal year ending 2051. 5. Total Assets $6,939,000 6. Total Water Sales $615,774 for both residential and commercial H. The annual principle and interest loan payment, totaling $105,000, was paid to the USDA by FPPUD on October 13, 2016. I. The FPPUD consists of a five member board. Currently there are four members with one vacancy created by the resignation of a board member. Three incumbent board members applied for re-election and were unopposed; therefore, an election was not held. FINDINGS: F1. The source of water for the FPPUD are three wells identified as: Well #4 and Well #6 located at 4001 Park Drive; Well #5 located at the end of Montana Trail; and two active springs known as Pine Canyon and Sam Young. Continuous chlorination is provided to all water produced from these active sources. The well water supply is drawn from aquifers located in a canyon surrounded by mountains. The springs are located uphill from the community, and secured to prevent possible contamination. The FPPUD has 12 water storage tanks (11 currently used) and booster pumps located throughout the community. F2. The FPPUD has been selling water to LOWMWC for approximately a year, to determine if the FPPUD’s system can meet the extra demand. Currently water is being trucked to Lake of the Woods from FPPUD. F3. The FPPUD’s “Lower Cuddy Creek Water Demand Study”, covering the communities of Frazier Park and Lake of the Woods to create a regional water entity, produced the following information: a. Combined total of 1,704 connections; peak hour demand ranges between 1,050 to 2,800 gpm b. For estimation purpose, an additional 300 connections could be added if the regional entity were to be created, bringing the total number of connections to 2,004. c. Annual water demand for the regional entity; 561 acre-feet with the additional 300 connections d. Combined maximum monthly average daily demand; 350-933 gpm e. Pumping records for the past six years for FPPUD system indicate that the maximum monthly daily pumping demand is 360 gpm. This was met by drawing water from wells, springs, and from storage tanks. f. The FPPUD has 2.1 million gallons of storage and pumps a maximum of 16.06 million gallons in a given month. g. Consulting civil engineers completed a study to form a regional water entity. This would include new pipelines to Lake of the Woods, additional storage tanks, and booster pumps, at a projected cost of $16 million. F4. Before the annexation process is completed, FPPUD will have to complete a new rate study. F5. The FPPUD is working to develop a Sustainable Groundwater Management Authority (SGMA) and the Financial Assistance Application Submittal Tool (FAAST) Planning Grant Application; a Memorandum of Understanding (MOU) with all parties involved will have to be completed. F6. In the July 2016 Monthly Manager’s Report: a. Water pumped - 10,384,200 gallons b. Water sold - 6,454,394 gallons c. With a lag (water loss) - 33.43% d. In June 2015 the lag - 20.34% e. Six year average lag (2009-2014) - approximately 20% F7. According to the consulting civil engineer, the difference between water pumped versus water sold is likely a combination of losses due to pipe breaks and metering inconsistencies. Other factors, as stated by the GM, are not accurately measuring water in the storage tanks and the variable nature of the two springs feeding into the water system. F8. Monthly bills from FPPUD may be difficult to read and understand by the water users: a. Meters are usually read monthly and are recorded to the nearest hundred cubic feet (CCF). b. Bills are calculated and charged in gallons of water used. c. Users must convert from CCF to gallons (one CCF is equal to 748 gallons) to understand their bills. d. The computer will estimate water usage when the meter cannot be read. F9. The FPPUD’s website is unable to accept online payments. F10. The FPPUD’s website is not kept up-to-date with current board agendas and approved minutes. F11. About two years ago, the FPPUD discovered an illegal tap was used to steal water from a main water line fed by one of the springs. F12. The FPPUD is using district staff to complete the process of adding Well #6 to the water system (See Appendix A). F13. The FPPUD board voted to increase water rates after the Rural Community Assistance Corporation completed and presented a rate study at the September 2016 board meeting: a. New base rate for ¾ inch service meter - $55 a month b. New usage fee - $2.60 per 1000 gallons c. The rate study will allow FPPUD to seek State funding - $16-20 million d. The rate study was funded by the State of California e. Under Proposition 218, rate increase hearings are scheduled F14. The Committee visited the October 20, 2016, FPPUD Board Meeting and observed the following: no salute to the flag, the meeting ran according to Robert’s Rules of Order, and District Policy. Agenda item #3, Public Comments, lasted over one hour due to discussion about the pond and other topics (See Appendix F, as an example). F15. The FPPUD board is working on updating the District Bylaws and Regulations, as well as the Board Member Conduct Policy. F16. All FPPUD board members have completed the required Ralph M. Brown Act and other leadership training. F17. The FPPUD Board will be appointing a new member to fill the vacant seat on the Board of Directors. F18. The consulting civil engineer stated that the pond in Frazier Park had several years of low water in the late 1970s and early 1980s due to drought conditions. Today the spring that feeds the pond is almost dry, therefore water inflow is less than outflow and evaporation. Well #4 and Well #6, which are located closest to the pond, draw water from an aquifer that is located about 250 feet deep and has been stable for years. The pond is fed by a spring. A solution to the dry pond is to line the bottom of the pond to stop percolation and limit the outflow (See Appendixes C, D, and E). COMMENTS: The Committee thanks the staff of Frazier Park Public Utility District and the consulting civil engineer for their cooperation and assistance. The Board Members expressed concern and passion for their job, and understand their responsibility for supplying sustainable drinking water to the community. Frazier Park residents have a concern about the pond in the Kern County Park. Many have the opinion that the drying up of the pond is due to pumping water from new Well #6 (See Appendixes C, D, and E); the FPPUD should address this concern. Citizens that are concerned about the pond may want to review the memorandum sent to the Kern County Board of Supervisors from the Kern County Parks and Recreation Department, dated November 15, 2016. Attached to the memorandum is the report titled “The General Overview of Frazier Mountain Park Pond” prepared by the supervising engineer. California’s drought has caused many changes in the ponds, lakes, and reservoirs throughout the State. RECOMMENDATIONS: R1. The Frazier Park Public Utility District should upgrade their website to provide for online payments. (Finding 9) R2. The FPPUD should keep the website updated with current board meeting agendas and minutes. (Finding 10) R3. The FPPUD should make the water bills user friendly. The meter readings and billing information should be consistent, either gallons or cubic feet, but not both. (Finding 8) R4. The FPPUD should better inform the public of all district activities. The use of the local newspaper, sending quarterly newsletters, website, and posting meeting agendas around the community (post office, library, etc.) would keep the community better informed. (Findings 2, 5, 10, 13, and 14) R5. The FPPUD should complete the feasibility study concerning the annexation of Lake of the Woods and the formation of a regional water system. The final decision must be made by a majority of affected eligible voters. (Findings 3 and 4) R6. The FPPUD should place and enforce a time limit on public comments during regular board meetings (See Appendix F, as an example). (Finding 14) R7. To address community concerns, the FPPUD should consult and work cooperatively with the Kern County Parks and Recreation Department, to research and develop solutions to the pond issue. (Findings 1 and 18) NOTES: • The Kern County Park and Recreation Department, Frazier Park Public Utility District and the Lake of the Woods Mutual Water Company should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 APPENDIX:

F2: The District website is not user friendly; more information is found on their Facebook page. As of February 6, 2017, the website is being updated with meeting agendas and minutes. It is now easier to follow and all Board agendas are current.

Related Recommendations (2)

R4: The FPPUD should better inform the public of all district activities. The use of the local newspaper, sending quarterly newsletters, website, and posting meeting agendas around the community (post office, library, etc.) would keep the community better informed. (Findings 2, 5, 10, 13, and 14)

R20-30: pounds per square inch (psi) to as high as 130 psi (See Appendix B). F. Booster pumps are used to move water up to the storage tanks on an as needed basis. G. According to the June 30, 2014 Financial Audit Report for FPPUD: 1. Total non-operating revenue decreased $364,138 over the course of the year’s operations. 2. Total net operating and non-operating revenues decreased $989,190 over the course of the year’s operations. The decrease in 2014 is due primarily to the accounting of the $1,000,000 United States Department of Agriculture (USDA) grant-loan in 2013. 3. Total expenses increased $207,089 over the course of the year’s operations. 4. Future revenues have been pledged to repay $1,400,000 in water revenue bonds issued in December 2005, and $2,100,000 in water revenue bonds issued during May 2011. Proceeds from the sale of bonds provided financing for the improvement and expansion of the current water delivery system. The bonds are payable solely from all revenues through fiscal year ending 2051. 5. Total Assets $6,939,000 6. Total Water Sales $615,774 for both residential and commercial H. The annual principle and interest loan payment, totaling $105,000, was paid to the USDA by FPPUD on October 13, 2016. I. The FPPUD consists of a five member board. Currently there are four members with one vacancy created by the resignation of a board member. Three incumbent board members applied for re-election and were unopposed; therefore, an election was not held. FINDINGS: F1. The source of water for the FPPUD are three wells identified as: Well #4 and Well #6 located at 4001 Park Drive; Well #5 located at the end of Montana Trail; and two active springs known as Pine Canyon and Sam Young. Continuous chlorination is provided to all water produced from these active sources. The well water supply is drawn from aquifers located in a canyon surrounded by mountains. The springs are located uphill from the community, and secured to prevent possible contamination. The FPPUD has 12 water storage tanks (11 currently used) and booster pumps located throughout the community. F2. The FPPUD has been selling water to LOWMWC for approximately a year, to determine if the FPPUD’s system can meet the extra demand. Currently water is being trucked to Lake of the Woods from FPPUD. F3. The FPPUD’s “Lower Cuddy Creek Water Demand Study”, covering the communities of Frazier Park and Lake of the Woods to create a regional water entity, produced the following information: a. Combined total of 1,704 connections; peak hour demand ranges between 1,050 to 2,800 gpm b. For estimation purpose, an additional 300 connections could be added if the regional entity were to be created, bringing the total number of connections to 2,004. c. Annual water demand for the regional entity; 561 acre-feet with the additional 300 connections d. Combined maximum monthly average daily demand; 350-933 gpm e. Pumping records for the past six years for FPPUD system indicate that the maximum monthly daily pumping demand is 360 gpm. This was met by drawing water from wells, springs, and from storage tanks. f. The FPPUD has 2.1 million gallons of storage and pumps a maximum of 16.06 million gallons in a given month. g. Consulting civil engineers completed a study to form a regional water entity. This would include new pipelines to Lake of the Woods, additional storage tanks, and booster pumps, at a projected cost of $16 million. F4. Before the annexation process is completed, FPPUD will have to complete a new rate study. F5. The FPPUD is working to develop a Sustainable Groundwater Management Authority (SGMA) and the Financial Assistance Application Submittal Tool (FAAST) Planning Grant Application; a Memorandum of Understanding (MOU) with all parties involved will have to be completed. F6. In the July 2016 Monthly Manager’s Report: a. Water pumped - 10,384,200 gallons b. Water sold - 6,454,394 gallons c. With a lag (water loss) - 33.43% d. In June 2015 the lag - 20.34% e. Six year average lag (2009-2014) - approximately 20% F7. According to the consulting civil engineer, the difference between water pumped versus water sold is likely a combination of losses due to pipe breaks and metering inconsistencies. Other factors, as stated by the GM, are not accurately measuring water in the storage tanks and the variable nature of the two springs feeding into the water system. F8. Monthly bills from FPPUD may be difficult to read and understand by the water users: a. Meters are usually read monthly and are recorded to the nearest hundred cubic feet (CCF). b. Bills are calculated and charged in gallons of water used. c. Users must convert from CCF to gallons (one CCF is equal to 748 gallons) to understand their bills. d. The computer will estimate water usage when the meter cannot be read. F9. The FPPUD’s website is unable to accept online payments. F10. The FPPUD’s website is not kept up-to-date with current board agendas and approved minutes. F11. About two years ago, the FPPUD discovered an illegal tap was used to steal water from a main water line fed by one of the springs. F12. The FPPUD is using district staff to complete the process of adding Well #6 to the water system (See Appendix A). F13. The FPPUD board voted to increase water rates after the Rural Community Assistance Corporation completed and presented a rate study at the September 2016 board meeting: a. New base rate for ¾ inch service meter - $55 a month b. New usage fee - $2.60 per 1000 gallons c. The rate study will allow FPPUD to seek State funding - $16-20 million d. The rate study was funded by the State of California e. Under Proposition 218, rate increase hearings are scheduled F14. The Committee visited the October 20, 2016, FPPUD Board Meeting and observed the following: no salute to the flag, the meeting ran according to Robert’s Rules of Order, and District Policy. Agenda item #3, Public Comments, lasted over one hour due to discussion about the pond and other topics (See Appendix F, as an example). F15. The FPPUD board is working on updating the District Bylaws and Regulations, as well as the Board Member Conduct Policy. F16. All FPPUD board members have completed the required Ralph M. Brown Act and other leadership training. F17. The FPPUD Board will be appointing a new member to fill the vacant seat on the Board of Directors. F18. The consulting civil engineer stated that the pond in Frazier Park had several years of low water in the late 1970s and early 1980s due to drought conditions. Today the spring that feeds the pond is almost dry, therefore water inflow is less than outflow and evaporation. Well #4 and Well #6, which are located closest to the pond, draw water from an aquifer that is located about 250 feet deep and has been stable for years. The pond is fed by a spring. A solution to the dry pond is to line the bottom of the pond to stop percolation and limit the outflow (See Appendixes C, D, and E). COMMENTS: The Committee thanks the staff of Frazier Park Public Utility District and the consulting civil engineer for their cooperation and assistance. The Board Members expressed concern and passion for their job, and understand their responsibility for supplying sustainable drinking water to the community. Frazier Park residents have a concern about the pond in the Kern County Park. Many have the opinion that the drying up of the pond is due to pumping water from new Well #6 (See Appendixes C, D, and E); the FPPUD should address this concern. Citizens that are concerned about the pond may want to review the memorandum sent to the Kern County Board of Supervisors from the Kern County Parks and Recreation Department, dated November 15, 2016. Attached to the memorandum is the report titled “The General Overview of Frazier Mountain Park Pond” prepared by the supervising engineer. California’s drought has caused many changes in the ponds, lakes, and reservoirs throughout the State. RECOMMENDATIONS: R1. The Frazier Park Public Utility District should upgrade their website to provide for online payments. (Finding 9) R2. The FPPUD should keep the website updated with current board meeting agendas and minutes. (Finding 10) R3. The FPPUD should make the water bills user friendly. The meter readings and billing information should be consistent, either gallons or cubic feet, but not both. (Finding 8) R4. The FPPUD should better inform the public of all district activities. The use of the local newspaper, sending quarterly newsletters, website, and posting meeting agendas around the community (post office, library, etc.) would keep the community better informed. (Findings 2, 5, 10, 13, and 14) R5. The FPPUD should complete the feasibility study concerning the annexation of Lake of the Woods and the formation of a regional water system. The final decision must be made by a majority of affected eligible voters. (Findings 3 and 4) R6. The FPPUD should place and enforce a time limit on public comments during regular board meetings (See Appendix F, as an example). (Finding 14) R7. To address community concerns, the FPPUD should consult and work cooperatively with the Kern County Parks and Recreation Department, to research and develop solutions to the pond issue. (Findings 1 and 18) NOTES: • The Kern County Park and Recreation Department, Frazier Park Public Utility District and the Lake of the Woods Mutual Water Company should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 APPENDIX:

F3: The Rental Fee Policy used for District facilities is found on the District website. Exceptions to the fees are granted by the Board, on a case by case basis.

Related Recommendations (3)

R2: Rental fees should be a set policy, so that all renters are treated equally. (Finding 3) NOTES: • The Bear Mountain Recreation and Parks District should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301

R5: The FPPUD should complete the feasibility study concerning the annexation of Lake of the Woods and the formation of a regional water system. The final decision must be made by a majority of affected eligible voters. (Findings 3 and 4)

R20-30: pounds per square inch (psi) to as high as 130 psi (See Appendix B). F. Booster pumps are used to move water up to the storage tanks on an as needed basis. G. According to the June 30, 2014 Financial Audit Report for FPPUD: 1. Total non-operating revenue decreased $364,138 over the course of the year’s operations. 2. Total net operating and non-operating revenues decreased $989,190 over the course of the year’s operations. The decrease in 2014 is due primarily to the accounting of the $1,000,000 United States Department of Agriculture (USDA) grant-loan in 2013. 3. Total expenses increased $207,089 over the course of the year’s operations. 4. Future revenues have been pledged to repay $1,400,000 in water revenue bonds issued in December 2005, and $2,100,000 in water revenue bonds issued during May 2011. Proceeds from the sale of bonds provided financing for the improvement and expansion of the current water delivery system. The bonds are payable solely from all revenues through fiscal year ending 2051. 5. Total Assets $6,939,000 6. Total Water Sales $615,774 for both residential and commercial H. The annual principle and interest loan payment, totaling $105,000, was paid to the USDA by FPPUD on October 13, 2016. I. The FPPUD consists of a five member board. Currently there are four members with one vacancy created by the resignation of a board member. Three incumbent board members applied for re-election and were unopposed; therefore, an election was not held. FINDINGS: F1. The source of water for the FPPUD are three wells identified as: Well #4 and Well #6 located at 4001 Park Drive; Well #5 located at the end of Montana Trail; and two active springs known as Pine Canyon and Sam Young. Continuous chlorination is provided to all water produced from these active sources. The well water supply is drawn from aquifers located in a canyon surrounded by mountains. The springs are located uphill from the community, and secured to prevent possible contamination. The FPPUD has 12 water storage tanks (11 currently used) and booster pumps located throughout the community. F2. The FPPUD has been selling water to LOWMWC for approximately a year, to determine if the FPPUD’s system can meet the extra demand. Currently water is being trucked to Lake of the Woods from FPPUD. F3. The FPPUD’s “Lower Cuddy Creek Water Demand Study”, covering the communities of Frazier Park and Lake of the Woods to create a regional water entity, produced the following information: a. Combined total of 1,704 connections; peak hour demand ranges between 1,050 to 2,800 gpm b. For estimation purpose, an additional 300 connections could be added if the regional entity were to be created, bringing the total number of connections to 2,004. c. Annual water demand for the regional entity; 561 acre-feet with the additional 300 connections d. Combined maximum monthly average daily demand; 350-933 gpm e. Pumping records for the past six years for FPPUD system indicate that the maximum monthly daily pumping demand is 360 gpm. This was met by drawing water from wells, springs, and from storage tanks. f. The FPPUD has 2.1 million gallons of storage and pumps a maximum of 16.06 million gallons in a given month. g. Consulting civil engineers completed a study to form a regional water entity. This would include new pipelines to Lake of the Woods, additional storage tanks, and booster pumps, at a projected cost of $16 million. F4. Before the annexation process is completed, FPPUD will have to complete a new rate study. F5. The FPPUD is working to develop a Sustainable Groundwater Management Authority (SGMA) and the Financial Assistance Application Submittal Tool (FAAST) Planning Grant Application; a Memorandum of Understanding (MOU) with all parties involved will have to be completed. F6. In the July 2016 Monthly Manager’s Report: a. Water pumped - 10,384,200 gallons b. Water sold - 6,454,394 gallons c. With a lag (water loss) - 33.43% d. In June 2015 the lag - 20.34% e. Six year average lag (2009-2014) - approximately 20% F7. According to the consulting civil engineer, the difference between water pumped versus water sold is likely a combination of losses due to pipe breaks and metering inconsistencies. Other factors, as stated by the GM, are not accurately measuring water in the storage tanks and the variable nature of the two springs feeding into the water system. F8. Monthly bills from FPPUD may be difficult to read and understand by the water users: a. Meters are usually read monthly and are recorded to the nearest hundred cubic feet (CCF). b. Bills are calculated and charged in gallons of water used. c. Users must convert from CCF to gallons (one CCF is equal to 748 gallons) to understand their bills. d. The computer will estimate water usage when the meter cannot be read. F9. The FPPUD’s website is unable to accept online payments. F10. The FPPUD’s website is not kept up-to-date with current board agendas and approved minutes. F11. About two years ago, the FPPUD discovered an illegal tap was used to steal water from a main water line fed by one of the springs. F12. The FPPUD is using district staff to complete the process of adding Well #6 to the water system (See Appendix A). F13. The FPPUD board voted to increase water rates after the Rural Community Assistance Corporation completed and presented a rate study at the September 2016 board meeting: a. New base rate for ¾ inch service meter - $55 a month b. New usage fee - $2.60 per 1000 gallons c. The rate study will allow FPPUD to seek State funding - $16-20 million d. The rate study was funded by the State of California e. Under Proposition 218, rate increase hearings are scheduled F14. The Committee visited the October 20, 2016, FPPUD Board Meeting and observed the following: no salute to the flag, the meeting ran according to Robert’s Rules of Order, and District Policy. Agenda item #3, Public Comments, lasted over one hour due to discussion about the pond and other topics (See Appendix F, as an example). F15. The FPPUD board is working on updating the District Bylaws and Regulations, as well as the Board Member Conduct Policy. F16. All FPPUD board members have completed the required Ralph M. Brown Act and other leadership training. F17. The FPPUD Board will be appointing a new member to fill the vacant seat on the Board of Directors. F18. The consulting civil engineer stated that the pond in Frazier Park had several years of low water in the late 1970s and early 1980s due to drought conditions. Today the spring that feeds the pond is almost dry, therefore water inflow is less than outflow and evaporation. Well #4 and Well #6, which are located closest to the pond, draw water from an aquifer that is located about 250 feet deep and has been stable for years. The pond is fed by a spring. A solution to the dry pond is to line the bottom of the pond to stop percolation and limit the outflow (See Appendixes C, D, and E). COMMENTS: The Committee thanks the staff of Frazier Park Public Utility District and the consulting civil engineer for their cooperation and assistance. The Board Members expressed concern and passion for their job, and understand their responsibility for supplying sustainable drinking water to the community. Frazier Park residents have a concern about the pond in the Kern County Park. Many have the opinion that the drying up of the pond is due to pumping water from new Well #6 (See Appendixes C, D, and E); the FPPUD should address this concern. Citizens that are concerned about the pond may want to review the memorandum sent to the Kern County Board of Supervisors from the Kern County Parks and Recreation Department, dated November 15, 2016. Attached to the memorandum is the report titled “The General Overview of Frazier Mountain Park Pond” prepared by the supervising engineer. California’s drought has caused many changes in the ponds, lakes, and reservoirs throughout the State. RECOMMENDATIONS: R1. The Frazier Park Public Utility District should upgrade their website to provide for online payments. (Finding 9) R2. The FPPUD should keep the website updated with current board meeting agendas and minutes. (Finding 10) R3. The FPPUD should make the water bills user friendly. The meter readings and billing information should be consistent, either gallons or cubic feet, but not both. (Finding 8) R4. The FPPUD should better inform the public of all district activities. The use of the local newspaper, sending quarterly newsletters, website, and posting meeting agendas around the community (post office, library, etc.) would keep the community better informed. (Findings 2, 5, 10, 13, and 14) R5. The FPPUD should complete the feasibility study concerning the annexation of Lake of the Woods and the formation of a regional water system. The final decision must be made by a majority of affected eligible voters. (Findings 3 and 4) R6. The FPPUD should place and enforce a time limit on public comments during regular board meetings (See Appendix F, as an example). (Finding 14) R7. To address community concerns, the FPPUD should consult and work cooperatively with the Kern County Parks and Recreation Department, to research and develop solutions to the pond issue. (Findings 1 and 18) NOTES: • The Kern County Park and Recreation Department, Frazier Park Public Utility District and the Lake of the Woods Mutual Water Company should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 APPENDIX:

F4: Information from the District is provided in both English and Spanish. An interpreter is present at Regular District Board Meetings and special events.

Related Recommendations (1)

R8: The District should review and update Board Policy regarding e-mails, process of handling information, posting agendas, and posting minutes to be in compliance with the Ralph M. Brown Act. (Findings 4, 5, 28, and 29)

F5: Seven candidates were vying for the four open board positions; four for full term and three for short term positions. A new Board Member was seated on the Board in December 2016.

F6: One incumbent District Board Member was also a candidate for the Arvin Union School District Board, but was not elected to that board.

F7: Residency of elected or appointed Board Members has been a subject of concern since 2012.

Related Recommendations (1)

R1: Residency should be a consideration when the District Board appoints a replacement member to the Board. (Finding 7)

F8: The 2016-2017 Budget has Total Revenues of $650,700; Total Expenditures of $631,449.

Related Recommendations (2)

R3: The FPPUD should make the water bills user friendly. The meter readings and billing information should be consistent, either gallons or cubic feet, but not both. (Finding 8)

R20-30: pounds per square inch (psi) to as high as 130 psi (See Appendix B). F. Booster pumps are used to move water up to the storage tanks on an as needed basis. G. According to the June 30, 2014 Financial Audit Report for FPPUD: 1. Total non-operating revenue decreased $364,138 over the course of the year’s operations. 2. Total net operating and non-operating revenues decreased $989,190 over the course of the year’s operations. The decrease in 2014 is due primarily to the accounting of the $1,000,000 United States Department of Agriculture (USDA) grant-loan in 2013. 3. Total expenses increased $207,089 over the course of the year’s operations. 4. Future revenues have been pledged to repay $1,400,000 in water revenue bonds issued in December 2005, and $2,100,000 in water revenue bonds issued during May 2011. Proceeds from the sale of bonds provided financing for the improvement and expansion of the current water delivery system. The bonds are payable solely from all revenues through fiscal year ending 2051. 5. Total Assets $6,939,000 6. Total Water Sales $615,774 for both residential and commercial H. The annual principle and interest loan payment, totaling $105,000, was paid to the USDA by FPPUD on October 13, 2016. I. The FPPUD consists of a five member board. Currently there are four members with one vacancy created by the resignation of a board member. Three incumbent board members applied for re-election and were unopposed; therefore, an election was not held. FINDINGS: F1. The source of water for the FPPUD are three wells identified as: Well #4 and Well #6 located at 4001 Park Drive; Well #5 located at the end of Montana Trail; and two active springs known as Pine Canyon and Sam Young. Continuous chlorination is provided to all water produced from these active sources. The well water supply is drawn from aquifers located in a canyon surrounded by mountains. The springs are located uphill from the community, and secured to prevent possible contamination. The FPPUD has 12 water storage tanks (11 currently used) and booster pumps located throughout the community. F2. The FPPUD has been selling water to LOWMWC for approximately a year, to determine if the FPPUD’s system can meet the extra demand. Currently water is being trucked to Lake of the Woods from FPPUD. F3. The FPPUD’s “Lower Cuddy Creek Water Demand Study”, covering the communities of Frazier Park and Lake of the Woods to create a regional water entity, produced the following information: a. Combined total of 1,704 connections; peak hour demand ranges between 1,050 to 2,800 gpm b. For estimation purpose, an additional 300 connections could be added if the regional entity were to be created, bringing the total number of connections to 2,004. c. Annual water demand for the regional entity; 561 acre-feet with the additional 300 connections d. Combined maximum monthly average daily demand; 350-933 gpm e. Pumping records for the past six years for FPPUD system indicate that the maximum monthly daily pumping demand is 360 gpm. This was met by drawing water from wells, springs, and from storage tanks. f. The FPPUD has 2.1 million gallons of storage and pumps a maximum of 16.06 million gallons in a given month. g. Consulting civil engineers completed a study to form a regional water entity. This would include new pipelines to Lake of the Woods, additional storage tanks, and booster pumps, at a projected cost of $16 million. F4. Before the annexation process is completed, FPPUD will have to complete a new rate study. F5. The FPPUD is working to develop a Sustainable Groundwater Management Authority (SGMA) and the Financial Assistance Application Submittal Tool (FAAST) Planning Grant Application; a Memorandum of Understanding (MOU) with all parties involved will have to be completed. F6. In the July 2016 Monthly Manager’s Report: a. Water pumped - 10,384,200 gallons b. Water sold - 6,454,394 gallons c. With a lag (water loss) - 33.43% d. In June 2015 the lag - 20.34% e. Six year average lag (2009-2014) - approximately 20% F7. According to the consulting civil engineer, the difference between water pumped versus water sold is likely a combination of losses due to pipe breaks and metering inconsistencies. Other factors, as stated by the GM, are not accurately measuring water in the storage tanks and the variable nature of the two springs feeding into the water system. F8. Monthly bills from FPPUD may be difficult to read and understand by the water users: a. Meters are usually read monthly and are recorded to the nearest hundred cubic feet (CCF). b. Bills are calculated and charged in gallons of water used. c. Users must convert from CCF to gallons (one CCF is equal to 748 gallons) to understand their bills. d. The computer will estimate water usage when the meter cannot be read. F9. The FPPUD’s website is unable to accept online payments. F10. The FPPUD’s website is not kept up-to-date with current board agendas and approved minutes. F11. About two years ago, the FPPUD discovered an illegal tap was used to steal water from a main water line fed by one of the springs. F12. The FPPUD is using district staff to complete the process of adding Well #6 to the water system (See Appendix A). F13. The FPPUD board voted to increase water rates after the Rural Community Assistance Corporation completed and presented a rate study at the September 2016 board meeting: a. New base rate for ¾ inch service meter - $55 a month b. New usage fee - $2.60 per 1000 gallons c. The rate study will allow FPPUD to seek State funding - $16-20 million d. The rate study was funded by the State of California e. Under Proposition 218, rate increase hearings are scheduled F14. The Committee visited the October 20, 2016, FPPUD Board Meeting and observed the following: no salute to the flag, the meeting ran according to Robert’s Rules of Order, and District Policy. Agenda item #3, Public Comments, lasted over one hour due to discussion about the pond and other topics (See Appendix F, as an example). F15. The FPPUD board is working on updating the District Bylaws and Regulations, as well as the Board Member Conduct Policy. F16. All FPPUD board members have completed the required Ralph M. Brown Act and other leadership training. F17. The FPPUD Board will be appointing a new member to fill the vacant seat on the Board of Directors. F18. The consulting civil engineer stated that the pond in Frazier Park had several years of low water in the late 1970s and early 1980s due to drought conditions. Today the spring that feeds the pond is almost dry, therefore water inflow is less than outflow and evaporation. Well #4 and Well #6, which are located closest to the pond, draw water from an aquifer that is located about 250 feet deep and has been stable for years. The pond is fed by a spring. A solution to the dry pond is to line the bottom of the pond to stop percolation and limit the outflow (See Appendixes C, D, and E). COMMENTS: The Committee thanks the staff of Frazier Park Public Utility District and the consulting civil engineer for their cooperation and assistance. The Board Members expressed concern and passion for their job, and understand their responsibility for supplying sustainable drinking water to the community. Frazier Park residents have a concern about the pond in the Kern County Park. Many have the opinion that the drying up of the pond is due to pumping water from new Well #6 (See Appendixes C, D, and E); the FPPUD should address this concern. Citizens that are concerned about the pond may want to review the memorandum sent to the Kern County Board of Supervisors from the Kern County Parks and Recreation Department, dated November 15, 2016. Attached to the memorandum is the report titled “The General Overview of Frazier Mountain Park Pond” prepared by the supervising engineer. California’s drought has caused many changes in the ponds, lakes, and reservoirs throughout the State. RECOMMENDATIONS: R1. The Frazier Park Public Utility District should upgrade their website to provide for online payments. (Finding 9) R2. The FPPUD should keep the website updated with current board meeting agendas and minutes. (Finding 10) R3. The FPPUD should make the water bills user friendly. The meter readings and billing information should be consistent, either gallons or cubic feet, but not both. (Finding 8) R4. The FPPUD should better inform the public of all district activities. The use of the local newspaper, sending quarterly newsletters, website, and posting meeting agendas around the community (post office, library, etc.) would keep the community better informed. (Findings 2, 5, 10, 13, and 14) R5. The FPPUD should complete the feasibility study concerning the annexation of Lake of the Woods and the formation of a regional water system. The final decision must be made by a majority of affected eligible voters. (Findings 3 and 4) R6. The FPPUD should place and enforce a time limit on public comments during regular board meetings (See Appendix F, as an example). (Finding 14) R7. To address community concerns, the FPPUD should consult and work cooperatively with the Kern County Parks and Recreation Department, to research and develop solutions to the pond issue. (Findings 1 and 18) NOTES: • The Kern County Park and Recreation Department, Frazier Park Public Utility District and the Lake of the Woods Mutual Water Company should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 APPENDIX:

F9: The District has not received grants (local, State, or Federal). The District is considering contracting for a grant writer.

Related Recommendations (1)

R20-30: pounds per square inch (psi) to as high as 130 psi (See Appendix B). F. Booster pumps are used to move water up to the storage tanks on an as needed basis. G. According to the June 30, 2014 Financial Audit Report for FPPUD: 1. Total non-operating revenue decreased $364,138 over the course of the year’s operations. 2. Total net operating and non-operating revenues decreased $989,190 over the course of the year’s operations. The decrease in 2014 is due primarily to the accounting of the $1,000,000 United States Department of Agriculture (USDA) grant-loan in 2013. 3. Total expenses increased $207,089 over the course of the year’s operations. 4. Future revenues have been pledged to repay $1,400,000 in water revenue bonds issued in December 2005, and $2,100,000 in water revenue bonds issued during May 2011. Proceeds from the sale of bonds provided financing for the improvement and expansion of the current water delivery system. The bonds are payable solely from all revenues through fiscal year ending 2051. 5. Total Assets $6,939,000 6. Total Water Sales $615,774 for both residential and commercial H. The annual principle and interest loan payment, totaling $105,000, was paid to the USDA by FPPUD on October 13, 2016. I. The FPPUD consists of a five member board. Currently there are four members with one vacancy created by the resignation of a board member. Three incumbent board members applied for re-election and were unopposed; therefore, an election was not held. FINDINGS: F1. The source of water for the FPPUD are three wells identified as: Well #4 and Well #6 located at 4001 Park Drive; Well #5 located at the end of Montana Trail; and two active springs known as Pine Canyon and Sam Young. Continuous chlorination is provided to all water produced from these active sources. The well water supply is drawn from aquifers located in a canyon surrounded by mountains. The springs are located uphill from the community, and secured to prevent possible contamination. The FPPUD has 12 water storage tanks (11 currently used) and booster pumps located throughout the community. F2. The FPPUD has been selling water to LOWMWC for approximately a year, to determine if the FPPUD’s system can meet the extra demand. Currently water is being trucked to Lake of the Woods from FPPUD. F3. The FPPUD’s “Lower Cuddy Creek Water Demand Study”, covering the communities of Frazier Park and Lake of the Woods to create a regional water entity, produced the following information: a. Combined total of 1,704 connections; peak hour demand ranges between 1,050 to 2,800 gpm b. For estimation purpose, an additional 300 connections could be added if the regional entity were to be created, bringing the total number of connections to 2,004. c. Annual water demand for the regional entity; 561 acre-feet with the additional 300 connections d. Combined maximum monthly average daily demand; 350-933 gpm e. Pumping records for the past six years for FPPUD system indicate that the maximum monthly daily pumping demand is 360 gpm. This was met by drawing water from wells, springs, and from storage tanks. f. The FPPUD has 2.1 million gallons of storage and pumps a maximum of 16.06 million gallons in a given month. g. Consulting civil engineers completed a study to form a regional water entity. This would include new pipelines to Lake of the Woods, additional storage tanks, and booster pumps, at a projected cost of $16 million. F4. Before the annexation process is completed, FPPUD will have to complete a new rate study. F5. The FPPUD is working to develop a Sustainable Groundwater Management Authority (SGMA) and the Financial Assistance Application Submittal Tool (FAAST) Planning Grant Application; a Memorandum of Understanding (MOU) with all parties involved will have to be completed. F6. In the July 2016 Monthly Manager’s Report: a. Water pumped - 10,384,200 gallons b. Water sold - 6,454,394 gallons c. With a lag (water loss) - 33.43% d. In June 2015 the lag - 20.34% e. Six year average lag (2009-2014) - approximately 20% F7. According to the consulting civil engineer, the difference between water pumped versus water sold is likely a combination of losses due to pipe breaks and metering inconsistencies. Other factors, as stated by the GM, are not accurately measuring water in the storage tanks and the variable nature of the two springs feeding into the water system. F8. Monthly bills from FPPUD may be difficult to read and understand by the water users: a. Meters are usually read monthly and are recorded to the nearest hundred cubic feet (CCF). b. Bills are calculated and charged in gallons of water used. c. Users must convert from CCF to gallons (one CCF is equal to 748 gallons) to understand their bills. d. The computer will estimate water usage when the meter cannot be read. F9. The FPPUD’s website is unable to accept online payments. F10. The FPPUD’s website is not kept up-to-date with current board agendas and approved minutes. F11. About two years ago, the FPPUD discovered an illegal tap was used to steal water from a main water line fed by one of the springs. F12. The FPPUD is using district staff to complete the process of adding Well #6 to the water system (See Appendix A). F13. The FPPUD board voted to increase water rates after the Rural Community Assistance Corporation completed and presented a rate study at the September 2016 board meeting: a. New base rate for ¾ inch service meter - $55 a month b. New usage fee - $2.60 per 1000 gallons c. The rate study will allow FPPUD to seek State funding - $16-20 million d. The rate study was funded by the State of California e. Under Proposition 218, rate increase hearings are scheduled F14. The Committee visited the October 20, 2016, FPPUD Board Meeting and observed the following: no salute to the flag, the meeting ran according to Robert’s Rules of Order, and District Policy. Agenda item #3, Public Comments, lasted over one hour due to discussion about the pond and other topics (See Appendix F, as an example). F15. The FPPUD board is working on updating the District Bylaws and Regulations, as well as the Board Member Conduct Policy. F16. All FPPUD board members have completed the required Ralph M. Brown Act and other leadership training. F17. The FPPUD Board will be appointing a new member to fill the vacant seat on the Board of Directors. F18. The consulting civil engineer stated that the pond in Frazier Park had several years of low water in the late 1970s and early 1980s due to drought conditions. Today the spring that feeds the pond is almost dry, therefore water inflow is less than outflow and evaporation. Well #4 and Well #6, which are located closest to the pond, draw water from an aquifer that is located about 250 feet deep and has been stable for years. The pond is fed by a spring. A solution to the dry pond is to line the bottom of the pond to stop percolation and limit the outflow (See Appendixes C, D, and E). COMMENTS: The Committee thanks the staff of Frazier Park Public Utility District and the consulting civil engineer for their cooperation and assistance. The Board Members expressed concern and passion for their job, and understand their responsibility for supplying sustainable drinking water to the community. Frazier Park residents have a concern about the pond in the Kern County Park. Many have the opinion that the drying up of the pond is due to pumping water from new Well #6 (See Appendixes C, D, and E); the FPPUD should address this concern. Citizens that are concerned about the pond may want to review the memorandum sent to the Kern County Board of Supervisors from the Kern County Parks and Recreation Department, dated November 15, 2016. Attached to the memorandum is the report titled “The General Overview of Frazier Mountain Park Pond” prepared by the supervising engineer. California’s drought has caused many changes in the ponds, lakes, and reservoirs throughout the State. RECOMMENDATIONS: R1. The Frazier Park Public Utility District should upgrade their website to provide for online payments. (Finding 9) R2. The FPPUD should keep the website updated with current board meeting agendas and minutes. (Finding 10) R3. The FPPUD should make the water bills user friendly. The meter readings and billing information should be consistent, either gallons or cubic feet, but not both. (Finding 8) R4. The FPPUD should better inform the public of all district activities. The use of the local newspaper, sending quarterly newsletters, website, and posting meeting agendas around the community (post office, library, etc.) would keep the community better informed. (Findings 2, 5, 10, 13, and 14) R5. The FPPUD should complete the feasibility study concerning the annexation of Lake of the Woods and the formation of a regional water system. The final decision must be made by a majority of affected eligible voters. (Findings 3 and 4) R6. The FPPUD should place and enforce a time limit on public comments during regular board meetings (See Appendix F, as an example). (Finding 14) R7. To address community concerns, the FPPUD should consult and work cooperatively with the Kern County Parks and Recreation Department, to research and develop solutions to the pond issue. (Findings 1 and 18) NOTES: • The Kern County Park and Recreation Department, Frazier Park Public Utility District and the Lake of the Woods Mutual Water Company should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 APPENDIX:

F10: In January 2017, four Board Members completed leadership, ethics, and Ralph M. Brown Act training. One Board Member is still receiving training.

Related Recommendations (1)

R20-30: pounds per square inch (psi) to as high as 130 psi (See Appendix B). F. Booster pumps are used to move water up to the storage tanks on an as needed basis. G. According to the June 30, 2014 Financial Audit Report for FPPUD: 1. Total non-operating revenue decreased $364,138 over the course of the year’s operations. 2. Total net operating and non-operating revenues decreased $989,190 over the course of the year’s operations. The decrease in 2014 is due primarily to the accounting of the $1,000,000 United States Department of Agriculture (USDA) grant-loan in 2013. 3. Total expenses increased $207,089 over the course of the year’s operations. 4. Future revenues have been pledged to repay $1,400,000 in water revenue bonds issued in December 2005, and $2,100,000 in water revenue bonds issued during May 2011. Proceeds from the sale of bonds provided financing for the improvement and expansion of the current water delivery system. The bonds are payable solely from all revenues through fiscal year ending 2051. 5. Total Assets $6,939,000 6. Total Water Sales $615,774 for both residential and commercial H. The annual principle and interest loan payment, totaling $105,000, was paid to the USDA by FPPUD on October 13, 2016. I. The FPPUD consists of a five member board. Currently there are four members with one vacancy created by the resignation of a board member. Three incumbent board members applied for re-election and were unopposed; therefore, an election was not held. FINDINGS: F1. The source of water for the FPPUD are three wells identified as: Well #4 and Well #6 located at 4001 Park Drive; Well #5 located at the end of Montana Trail; and two active springs known as Pine Canyon and Sam Young. Continuous chlorination is provided to all water produced from these active sources. The well water supply is drawn from aquifers located in a canyon surrounded by mountains. The springs are located uphill from the community, and secured to prevent possible contamination. The FPPUD has 12 water storage tanks (11 currently used) and booster pumps located throughout the community. F2. The FPPUD has been selling water to LOWMWC for approximately a year, to determine if the FPPUD’s system can meet the extra demand. Currently water is being trucked to Lake of the Woods from FPPUD. F3. The FPPUD’s “Lower Cuddy Creek Water Demand Study”, covering the communities of Frazier Park and Lake of the Woods to create a regional water entity, produced the following information: a. Combined total of 1,704 connections; peak hour demand ranges between 1,050 to 2,800 gpm b. For estimation purpose, an additional 300 connections could be added if the regional entity were to be created, bringing the total number of connections to 2,004. c. Annual water demand for the regional entity; 561 acre-feet with the additional 300 connections d. Combined maximum monthly average daily demand; 350-933 gpm e. Pumping records for the past six years for FPPUD system indicate that the maximum monthly daily pumping demand is 360 gpm. This was met by drawing water from wells, springs, and from storage tanks. f. The FPPUD has 2.1 million gallons of storage and pumps a maximum of 16.06 million gallons in a given month. g. Consulting civil engineers completed a study to form a regional water entity. This would include new pipelines to Lake of the Woods, additional storage tanks, and booster pumps, at a projected cost of $16 million. F4. Before the annexation process is completed, FPPUD will have to complete a new rate study. F5. The FPPUD is working to develop a Sustainable Groundwater Management Authority (SGMA) and the Financial Assistance Application Submittal Tool (FAAST) Planning Grant Application; a Memorandum of Understanding (MOU) with all parties involved will have to be completed. F6. In the July 2016 Monthly Manager’s Report: a. Water pumped - 10,384,200 gallons b. Water sold - 6,454,394 gallons c. With a lag (water loss) - 33.43% d. In June 2015 the lag - 20.34% e. Six year average lag (2009-2014) - approximately 20% F7. According to the consulting civil engineer, the difference between water pumped versus water sold is likely a combination of losses due to pipe breaks and metering inconsistencies. Other factors, as stated by the GM, are not accurately measuring water in the storage tanks and the variable nature of the two springs feeding into the water system. F8. Monthly bills from FPPUD may be difficult to read and understand by the water users: a. Meters are usually read monthly and are recorded to the nearest hundred cubic feet (CCF). b. Bills are calculated and charged in gallons of water used. c. Users must convert from CCF to gallons (one CCF is equal to 748 gallons) to understand their bills. d. The computer will estimate water usage when the meter cannot be read. F9. The FPPUD’s website is unable to accept online payments. F10. The FPPUD’s website is not kept up-to-date with current board agendas and approved minutes. F11. About two years ago, the FPPUD discovered an illegal tap was used to steal water from a main water line fed by one of the springs. F12. The FPPUD is using district staff to complete the process of adding Well #6 to the water system (See Appendix A). F13. The FPPUD board voted to increase water rates after the Rural Community Assistance Corporation completed and presented a rate study at the September 2016 board meeting: a. New base rate for ¾ inch service meter - $55 a month b. New usage fee - $2.60 per 1000 gallons c. The rate study will allow FPPUD to seek State funding - $16-20 million d. The rate study was funded by the State of California e. Under Proposition 218, rate increase hearings are scheduled F14. The Committee visited the October 20, 2016, FPPUD Board Meeting and observed the following: no salute to the flag, the meeting ran according to Robert’s Rules of Order, and District Policy. Agenda item #3, Public Comments, lasted over one hour due to discussion about the pond and other topics (See Appendix F, as an example). F15. The FPPUD board is working on updating the District Bylaws and Regulations, as well as the Board Member Conduct Policy. F16. All FPPUD board members have completed the required Ralph M. Brown Act and other leadership training. F17. The FPPUD Board will be appointing a new member to fill the vacant seat on the Board of Directors. F18. The consulting civil engineer stated that the pond in Frazier Park had several years of low water in the late 1970s and early 1980s due to drought conditions. Today the spring that feeds the pond is almost dry, therefore water inflow is less than outflow and evaporation. Well #4 and Well #6, which are located closest to the pond, draw water from an aquifer that is located about 250 feet deep and has been stable for years. The pond is fed by a spring. A solution to the dry pond is to line the bottom of the pond to stop percolation and limit the outflow (See Appendixes C, D, and E). COMMENTS: The Committee thanks the staff of Frazier Park Public Utility District and the consulting civil engineer for their cooperation and assistance. The Board Members expressed concern and passion for their job, and understand their responsibility for supplying sustainable drinking water to the community. Frazier Park residents have a concern about the pond in the Kern County Park. Many have the opinion that the drying up of the pond is due to pumping water from new Well #6 (See Appendixes C, D, and E); the FPPUD should address this concern. Citizens that are concerned about the pond may want to review the memorandum sent to the Kern County Board of Supervisors from the Kern County Parks and Recreation Department, dated November 15, 2016. Attached to the memorandum is the report titled “The General Overview of Frazier Mountain Park Pond” prepared by the supervising engineer. California’s drought has caused many changes in the ponds, lakes, and reservoirs throughout the State. RECOMMENDATIONS: R1. The Frazier Park Public Utility District should upgrade their website to provide for online payments. (Finding 9) R2. The FPPUD should keep the website updated with current board meeting agendas and minutes. (Finding 10) R3. The FPPUD should make the water bills user friendly. The meter readings and billing information should be consistent, either gallons or cubic feet, but not both. (Finding 8) R4. The FPPUD should better inform the public of all district activities. The use of the local newspaper, sending quarterly newsletters, website, and posting meeting agendas around the community (post office, library, etc.) would keep the community better informed. (Findings 2, 5, 10, 13, and 14) R5. The FPPUD should complete the feasibility study concerning the annexation of Lake of the Woods and the formation of a regional water system. The final decision must be made by a majority of affected eligible voters. (Findings 3 and 4) R6. The FPPUD should place and enforce a time limit on public comments during regular board meetings (See Appendix F, as an example). (Finding 14) R7. To address community concerns, the FPPUD should consult and work cooperatively with the Kern County Parks and Recreation Department, to research and develop solutions to the pond issue. (Findings 1 and 18) NOTES: • The Kern County Park and Recreation Department, Frazier Park Public Utility District and the Lake of the Woods Mutual Water Company should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 APPENDIX:

F11: A revised Employee Handbook has been adopted by the Board and signed by each employee.

F12: Day to day accounting and payroll are performed by the District Manager, and reviewed quarterly by an accounting firm.

F13: The Office Manager receives all funds, issues receipts, and places funds in the safe. The District Manager makes monthly deposits and reconciles the bank accounts.

F14: Invoices and bills are submitted to the Kern County Auditor/Controller/County Clerk’s Office for payment from property tax revenues.

Related Recommendations (2)

R6: The FPPUD should place and enforce a time limit on public comments during regular board meetings (See Appendix F, as an example). (Finding 14)

R20-30: pounds per square inch (psi) to as high as 130 psi (See Appendix B). F. Booster pumps are used to move water up to the storage tanks on an as needed basis. G. According to the June 30, 2014 Financial Audit Report for FPPUD: 1. Total non-operating revenue decreased $364,138 over the course of the year’s operations. 2. Total net operating and non-operating revenues decreased $989,190 over the course of the year’s operations. The decrease in 2014 is due primarily to the accounting of the $1,000,000 United States Department of Agriculture (USDA) grant-loan in 2013. 3. Total expenses increased $207,089 over the course of the year’s operations. 4. Future revenues have been pledged to repay $1,400,000 in water revenue bonds issued in December 2005, and $2,100,000 in water revenue bonds issued during May 2011. Proceeds from the sale of bonds provided financing for the improvement and expansion of the current water delivery system. The bonds are payable solely from all revenues through fiscal year ending 2051. 5. Total Assets $6,939,000 6. Total Water Sales $615,774 for both residential and commercial H. The annual principle and interest loan payment, totaling $105,000, was paid to the USDA by FPPUD on October 13, 2016. I. The FPPUD consists of a five member board. Currently there are four members with one vacancy created by the resignation of a board member. Three incumbent board members applied for re-election and were unopposed; therefore, an election was not held. FINDINGS: F1. The source of water for the FPPUD are three wells identified as: Well #4 and Well #6 located at 4001 Park Drive; Well #5 located at the end of Montana Trail; and two active springs known as Pine Canyon and Sam Young. Continuous chlorination is provided to all water produced from these active sources. The well water supply is drawn from aquifers located in a canyon surrounded by mountains. The springs are located uphill from the community, and secured to prevent possible contamination. The FPPUD has 12 water storage tanks (11 currently used) and booster pumps located throughout the community. F2. The FPPUD has been selling water to LOWMWC for approximately a year, to determine if the FPPUD’s system can meet the extra demand. Currently water is being trucked to Lake of the Woods from FPPUD. F3. The FPPUD’s “Lower Cuddy Creek Water Demand Study”, covering the communities of Frazier Park and Lake of the Woods to create a regional water entity, produced the following information: a. Combined total of 1,704 connections; peak hour demand ranges between 1,050 to 2,800 gpm b. For estimation purpose, an additional 300 connections could be added if the regional entity were to be created, bringing the total number of connections to 2,004. c. Annual water demand for the regional entity; 561 acre-feet with the additional 300 connections d. Combined maximum monthly average daily demand; 350-933 gpm e. Pumping records for the past six years for FPPUD system indicate that the maximum monthly daily pumping demand is 360 gpm. This was met by drawing water from wells, springs, and from storage tanks. f. The FPPUD has 2.1 million gallons of storage and pumps a maximum of 16.06 million gallons in a given month. g. Consulting civil engineers completed a study to form a regional water entity. This would include new pipelines to Lake of the Woods, additional storage tanks, and booster pumps, at a projected cost of $16 million. F4. Before the annexation process is completed, FPPUD will have to complete a new rate study. F5. The FPPUD is working to develop a Sustainable Groundwater Management Authority (SGMA) and the Financial Assistance Application Submittal Tool (FAAST) Planning Grant Application; a Memorandum of Understanding (MOU) with all parties involved will have to be completed. F6. In the July 2016 Monthly Manager’s Report: a. Water pumped - 10,384,200 gallons b. Water sold - 6,454,394 gallons c. With a lag (water loss) - 33.43% d. In June 2015 the lag - 20.34% e. Six year average lag (2009-2014) - approximately 20% F7. According to the consulting civil engineer, the difference between water pumped versus water sold is likely a combination of losses due to pipe breaks and metering inconsistencies. Other factors, as stated by the GM, are not accurately measuring water in the storage tanks and the variable nature of the two springs feeding into the water system. F8. Monthly bills from FPPUD may be difficult to read and understand by the water users: a. Meters are usually read monthly and are recorded to the nearest hundred cubic feet (CCF). b. Bills are calculated and charged in gallons of water used. c. Users must convert from CCF to gallons (one CCF is equal to 748 gallons) to understand their bills. d. The computer will estimate water usage when the meter cannot be read. F9. The FPPUD’s website is unable to accept online payments. F10. The FPPUD’s website is not kept up-to-date with current board agendas and approved minutes. F11. About two years ago, the FPPUD discovered an illegal tap was used to steal water from a main water line fed by one of the springs. F12. The FPPUD is using district staff to complete the process of adding Well #6 to the water system (See Appendix A). F13. The FPPUD board voted to increase water rates after the Rural Community Assistance Corporation completed and presented a rate study at the September 2016 board meeting: a. New base rate for ¾ inch service meter - $55 a month b. New usage fee - $2.60 per 1000 gallons c. The rate study will allow FPPUD to seek State funding - $16-20 million d. The rate study was funded by the State of California e. Under Proposition 218, rate increase hearings are scheduled F14. The Committee visited the October 20, 2016, FPPUD Board Meeting and observed the following: no salute to the flag, the meeting ran according to Robert’s Rules of Order, and District Policy. Agenda item #3, Public Comments, lasted over one hour due to discussion about the pond and other topics (See Appendix F, as an example). F15. The FPPUD board is working on updating the District Bylaws and Regulations, as well as the Board Member Conduct Policy. F16. All FPPUD board members have completed the required Ralph M. Brown Act and other leadership training. F17. The FPPUD Board will be appointing a new member to fill the vacant seat on the Board of Directors. F18. The consulting civil engineer stated that the pond in Frazier Park had several years of low water in the late 1970s and early 1980s due to drought conditions. Today the spring that feeds the pond is almost dry, therefore water inflow is less than outflow and evaporation. Well #4 and Well #6, which are located closest to the pond, draw water from an aquifer that is located about 250 feet deep and has been stable for years. The pond is fed by a spring. A solution to the dry pond is to line the bottom of the pond to stop percolation and limit the outflow (See Appendixes C, D, and E). COMMENTS: The Committee thanks the staff of Frazier Park Public Utility District and the consulting civil engineer for their cooperation and assistance. The Board Members expressed concern and passion for their job, and understand their responsibility for supplying sustainable drinking water to the community. Frazier Park residents have a concern about the pond in the Kern County Park. Many have the opinion that the drying up of the pond is due to pumping water from new Well #6 (See Appendixes C, D, and E); the FPPUD should address this concern. Citizens that are concerned about the pond may want to review the memorandum sent to the Kern County Board of Supervisors from the Kern County Parks and Recreation Department, dated November 15, 2016. Attached to the memorandum is the report titled “The General Overview of Frazier Mountain Park Pond” prepared by the supervising engineer. California’s drought has caused many changes in the ponds, lakes, and reservoirs throughout the State. RECOMMENDATIONS: R1. The Frazier Park Public Utility District should upgrade their website to provide for online payments. (Finding 9) R2. The FPPUD should keep the website updated with current board meeting agendas and minutes. (Finding 10) R3. The FPPUD should make the water bills user friendly. The meter readings and billing information should be consistent, either gallons or cubic feet, but not both. (Finding 8) R4. The FPPUD should better inform the public of all district activities. The use of the local newspaper, sending quarterly newsletters, website, and posting meeting agendas around the community (post office, library, etc.) would keep the community better informed. (Findings 2, 5, 10, 13, and 14) R5. The FPPUD should complete the feasibility study concerning the annexation of Lake of the Woods and the formation of a regional water system. The final decision must be made by a majority of affected eligible voters. (Findings 3 and 4) R6. The FPPUD should place and enforce a time limit on public comments during regular board meetings (See Appendix F, as an example). (Finding 14) R7. To address community concerns, the FPPUD should consult and work cooperatively with the Kern County Parks and Recreation Department, to research and develop solutions to the pond issue. (Findings 1 and 18) NOTES: • The Kern County Park and Recreation Department, Frazier Park Public Utility District and the Lake of the Woods Mutual Water Company should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 APPENDIX:

F15: District improvements under consideration include: solar panels for the pools, reroofing for the David Head Center and surrounding buildings, and annexation of a county park baseball field.

F16: The Committee attended the November 17, 2016, Regular District Board Meeting and observed the meeting which did not include the Flag Salute. COMMENTS: The Grand Jury appreciates the cooperation of the District’s Staff for providing information in a timely manner, and for the opportunity to meet. The Grand Jury acknowledges the improvements made in the last few months, and their future plans. The District has a major task in reviewing and updating all Board Policies and By-Laws.

F17: The FPPUD Board will be appointing a new member to fill the vacant seat on the Board of Directors.

F18: The consulting civil engineer stated that the pond in Frazier Park had several years of low water in the late 1970s and early 1980s due to drought conditions. Today the spring that feeds the pond is almost dry, therefore water inflow is less than outflow and evaporation. Well #4 and Well #6, which are located closest to the pond, draw water from an aquifer that is located about 250 feet deep and has been stable for years. The pond is fed by a spring. A solution to the dry pond is to line the bottom of the pond to stop percolation and limit the outflow (See Appendixes C, D, and E). COMMENTS: The Committee thanks the staff of Frazier Park Public Utility District and the consulting civil engineer for their cooperation and assistance. The Board Members expressed concern and passion for their job, and understand their responsibility for supplying sustainable drinking water to the community. Frazier Park residents have a concern about the pond in the Kern County Park. Many have the opinion that the drying up of the pond is due to pumping water from new Well #6 (See Appendixes C, D, and E); the FPPUD should address this concern. Citizens that are concerned about the pond may want to review the memorandum sent to the Kern County Board of Supervisors from the Kern County Parks and Recreation Department, dated November 15, 2016. Attached to the memorandum is the report titled “The General Overview of Frazier Mountain Park Pond” prepared by the supervising engineer. California’s drought has caused many changes in the ponds, lakes, and reservoirs throughout the State.

F19: The District’s liability risk insurance company hired a private investigation firm to locate the party(s) responsible for the loss of cash. After an intensive investigation, the insurance company resolved the claim by paying over $60,000 for the loss of funds to the District.

F20: Customer and public complaints were reported to the Delano Police Department for services not provided (headstones and benches).

F21: Minutes of the Special Meeting of the District’s Board, November 26, 2014, passed a motion to: “A. change the lock on the office door, B. make daily deposits, C. install a modern security system, D. place a safe within the vault with dual access, E. change the combination on our vault.”

F22: North Kern Cemetery District, Schedule of Finding for both June 30, 2014 and June 30, 2015, year end audits from Firm #3, contained the following: • -1, Preparation of Financial Statement Condition: “As is typical with most small government o entities, management is not able to produce its own financial statements in conformity with U.S. generally accepted accounting principles.”

F23: Receipts received by the Office Secretary are approximately 50% cash and 50% checks and credit cards.

F24: Beginning January 2017, the Office Secretary will receive the payments, generate a receipt on QuickBooks, attach the cash, check, or credit card receipt to the paper receipt, and insert the receipt with the payment into the slot on the locked safe, inside the vault. Starting March 1, 2017, “NO CASH” will be accepted for payments.

F25: The GM retrieves the payments from the safe and makes bank deposits.

F26: The Office Secretary answers the phone, greets all customers, answers questions, makes sales, receives payments, and addresses public concerns.

F27: The District has one of the least expensive pricing schedules in Kern County and California (See Appendix B). Only residents within the District, or family members of interred residents, can use the cemetery at the current rate. Non-residents are charged an additional $400 fee.

F28: The District uses Administrative Bulletin No. 20 of the Kern County Administrative Office, regarding reimbursement rates for the District Staff and Board Members while attending meetings and conferences. The District does NOT require receipts to substantiate claimed travel expenses, as per the reference to www.gsa.gov found in Bulletin No. 20. Some District Staff and Board Members stated that unspent funds belong to them.

F29: Possible Ralph M. Brown Act violations may have occurred. Copies of e- mails verified that all Board Members have received communications from the District legal counsel outside of a board meeting. On at least one occasion, the Chairman of the Board sent an e-mail to all other Board Members discussing District business.

Related Recommendations (1)

R9: To avoid conflict of interests, District Board members should be trained and informed on the recusal process. (Findings 29, 30, and 32) NOTES: • The Kern County Board of Supervisor, the Kern County Auditor/Controller/County Clerk, and the North Kern Cemetery District should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury. • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.co.kern.ca.us/grandjury. RESPONSE REQUIRED WITHIN 90 DAYS: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 APPENDICES:

F30: During the discussion and sale of District real estate to the City of Delano, the two city council members sitting on the District Board of Directors did not recuse themselves. This conduct may be a violation of the “conflict of interest” code for the two Board Members.

F31: The District Board Members did not: • perform annual evaluations and a review of the GM’s performance • demand that year end audits be performed in a timely manner • establish District policies on the duties and responsibilities of all employees • establish District policies to safeguard District’s cash and assets • assure that money dispensed for conference, travel, and conventions are properly accounted • place the public’s interest above their personal interest

F32: Some District Board Members are unaware or uninformed of state/county/district policies and procedures required to administer a cemetery district.

F33: The current GM has plans to make changes within the District. The goals include: a. Review and update the employee handbook b. Improve the grounds and landscaping; trim trees, plant grass, and develop more burial space c. Improve community relationships and public interest d. Work cohesively with the Board to keep them informed and work cooperatively e. Improve the internet service for the District (drop DSL; add a satellite dish) f. Review and update Board Policies on an ongoing basis (some are dated 1989, 1991, and 2004) g. Work closely and visit each employee daily to improve their work ethic h. Work on “THE DETAILS”

F34: During the Committee inspection of the Pomfret Memorial Pioneer Cemetery, the following was observed: a. There was a four foot chain link fence surrounding known marked graves, approximately ½ acres b. The entrance gate was locked with a pad lock c. Pecan trees were planted directly east of the fence d. A cell tower and more pecan trees were north of the fence e. Grass and weeds were around the fenced area f. The sign was in need of repair and hard to read g. Approximately ten graves were marked and had plastic flowers

F35: The District’s legal counsel had been in negotiations with the neighboring farmer regarding property boundaries. As of February 2017, no settlement had been reached. The District is in the process of obtaining a legal survey of the property in dispute, to determine ownership of the cemetery property. COMMENTS: The Committee has spent many hours investigating and researching the North Kern Cemetery District. The District Staff, Delano Police Department, and the Kern County Sheriff’s Office have been very cooperative. We thank everyone for their assistance and providing us with invaluable information. This report reflects many changes that must take place within the District in order to gain the confidence of the public. The missing money is public funds and the community is entitled to justice. The new General Manger should institute new policies and procedures. The District Board of Directors and the Kern County Board of Supervisors should take an active role to ensure that changes are implemented.

2016-2017

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