Score: +11 (11/1/0)
Mendocino County Grand Jury • 2018-2019

Ukiah Valley Sanitation District Change and Transparency Needed June 19, 2019

Published: June 19, 2019 8 pages
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Findings and Recommendations 14 findings

F1
The lawsuit settlement between the City and District left unresolved issues resulting in current arbitration, and continued duplication of services and costs.
Related Recommendations (1)
R1
the City and District work together to find a way to manage the overall sewer system as a single entity equitably and efficiently for all ratepayers,
F2
There is only one sewage collection and treatment system which serves both the City and District.
No recommendations for this finding
F3
The City and District being jointly responsible for the single sanitation system has led to significant needless expense.
Related Recommendations (1)
R1
the City and District work together to find a way to manage the overall sewer system as a single entity equitably and efficiently for all ratepayers,
F4
Due to limited staffing and high turnover, the District has not demonstrated the capability to responsibly manage its business and financial affairs. Failure to provide audited financial reports for five years (2014-2018) further demonstrates this lack of capability.
No recommendations for this finding
F5
In the absence of staffing continuity with technical and financial expertise, the District has used expensive attorneys and consultants to conduct day-to-day business and negotiations with the City. 6
No recommendations for this finding
F6
The District claims the funds paid to them by the City are for damages. This is misleading. Of the $16,415,296 paid, $11,431,986 were from existing District reserves held by the City on the District’s behalf.
No recommendations for this finding
F7
To avoid further legal expense, the City agreed to pay the District $4,984,310 over five years. This amount is substantially less than the legal costs of the lawsuit to the District. The difference will be paid by the District’s ratepayers.
No recommendations for this finding
F8
The City’s settlement and legal expenses will be borne by the City’s ratepayers.
No recommendations for this finding
F9
The City no longer holds any of the District’s reserves.
No recommendations for this finding
F10
The District’s claim that it can save over $1.5 million per year by assuming responsibility for the billing, maintenance and sewage treatment for its ratepayers is not supported by any documentation.
Related Recommendations (1)
R3
the District provide specific details to ratepayers for its claims that it can save over $1.5 million per year by assuming billing, maintenance and sewage treatment responsibilities with a detailed feasibility and cost analysis, 7
F11
Future changes allowed in the settlement could trigger redundant expenses to be borne by all ratepayers. These include detachment of the overlap areas by the City and the District’s assumption of their billing, maintenance, and sewage treatment.
No recommendations for this finding
F12
The MOU/JPA proposed by the City is intended to provide a cost effective solution to the ongoing disputes between the City and the District by operating as a single system with the same rate structure applying to all customers.
Related Recommendations (1)
R2
the District enter into negotiations with the City regarding the proposed MOU/JPA,
F13
The District has violated the intent of the Brown Act which has reduced transparency for District ratepayers.
Related Recommendations (1)
R4
the District Board must act in accordance with the Brown Act which promotes transparency and public participation.
F14
The $23 million combined legal costs and lost opportunities to refinance the bond will be borne by the City and District ratepayers.
No recommendations for this finding

Agency Responses 2

Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.

No Responses Found 1

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Ukiah Valley Sanitation District (Mendocino) Special District