Special Districts Committee Richard McCREEDY Mike Elliott Johnny Otero Chairperson Mission Statement According to Penal

Comments 79

• CO1
  The FPPUD Board will be appointing a new member to fill the vacant seat on the Board of Directors. 2016-2017 Kern County Grand Jury
• CO2
  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.
• CO3
  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.
• CO4
  Customer and public complaints were reported to the Delano Police Department for services not provided (headstones and benches).
• CO5
  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.”
• CO6
  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: 2016-2017 Kern County Grand Jury  -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.”
• CO7
  Receipts received by the Office Secretary are approximately 50% cash and 50% checks and credit cards.
• CO8
  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.
• CO9
  The GM retrieves the payments from the safe and makes bank deposits. 2016-2017 Kern County Grand Jury
• CO10
  The Office Secretary answers the phone, greets all customers, answers questions, makes sales, receives payments, and addresses public concerns.
• CO11
  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.
• CO12
  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.
• CO13
  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.
• CO14
  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.
• CO15
  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
• CO16
  Some District Board Members are unaware or uninformed of state/county/district policies and procedures required to administer a cemetery district.
• CO17
  The current GM has plans to make changes within the District. The goals include: a. Review and update the employee handbook 2016-2017 Kern County Grand Jury 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”
• CO18
  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
• CO19
  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.
• CO20
  Approximately 900 residents 2. 401 water connections
• CO21
  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.
• CO22
  Annual water demand 117 acre-feet
• CO23
  Non-metered system [must be metered prior to annexation]
• CO24
  Average daily demand is 73 gallons per minute (gpm) C. Frazier Park Public Utility District includes:
• CO25
  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. 2016-2017 Kern County Grand Jury 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. 2016-2017 Kern County Grand Jury 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. 2016-2017 Kern County Grand Jury 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.
• CO26
  Describe your major source of water.
• CO27
  Do you receive any State or Federal water?
• CO28
  What are the other sources of water that can or may be used?
• CO29
  Desert Lake Community Services District
• CO30
  East Niles Community Services District
• CO31
  Edgemont Acres Mutual Water Company
• CO32
  Frazier Park Utility District
• CO33
  Golden Hills Community Services District
• CO34
  Greenfield County Water District
• CO35
  Indian Wells Valley Water District
• CO36
  Inyokern Community Service District
• CO37
  Krista Mutual Water Company
• CO38
  Lake Isabella Community Services District
• CO39
  Lake of the Woods Mutual Water Company
• CO40
  Lamont Public Utility District
• CO41
  Lost Hills Utility District
• CO42
  Mettler County Water District
• CO43
  Mil Potrero Mutual Water Company
• CO44
  Mojave Public Utility District
• CO45
  Oildale Mutual Water Company
• CO46
  Quail Valley Water District
• CO47
  Rand Communities Water District
• CO48
  Stallion Springs Community Services District
• CO49
  West Kern Water District The Pacific Institute is a global water think tank that provides science-based leadership with an active outreach to influence local, national, and international efforts in developing sustainable water policies. The Pacific Institute Report, September 18, 2014, stated: “SUMMARY: Water metering in California is an important tool to help customers understand their water use in order to use the resource more efficiently. Coupled with effective pricing structures, water meters can send a price signal to customers to reduce excessive or wasteful use. Water meters can help water utilities manage the system more effectively and identify leaks. While most California utilities have installed water meters, more than 219,000 customers remain unmetered. For those who have not completed their installation program, additional water savings can be realized by expediting meter installation before the 2025 deadline, reducing vulnerability to drought and other water supply constraints.” 2016-2017 Kern County Grand Jury FINDINGS: F1. Five survey responses indicated Flat Rates are still in use. Rates ranged between a low of $23.51 to a high of $75.00, with an average flat rate of $50.40 per month.  California Water Service did not return a survey, however, according to the Pacific Institute Report, September 18, 2014, “34% of the Bakersfield water that they supply is unmetered.” F2. The survey collected water rates and information for the 2015-2016 fiscal year. Most surveys that indicated meters were in use, and the following was summarized:  Eight districts and/or companies use tiered meter rates  Cost per 100 cubic-feet (CCF), for the first CCF on a ¾ inch connection fees are: Low $ 0.72 o High $ 4.99 o Average $ 2.22 o F3. According to the 2011 Study of California Water Usage, the average California family of four will use 360 gallons of water per day. This is approximately 14.5 CCF per month or 10,800 gallons of water. Using this information, an approximate monthly water bill would be: Connection Fee + Usage Rate = Monthly Bill Bear Valley Community Services District $25.53+ $41.26 = $ 66.79 Boron Community Water District $43.00+ $18.38 = $ 61.38 Buttonwillow County Water District $24.65(Flat rate) = $ 24.65 City of Bakersfield (city limits) $ 9.88+ $13.63 = $ 23.51 City of Bakersfield (unincorporated) $12.85+ $17.26 = $ 30.11 City of Delano (flat rate) $68.16(Flat rate) = $ 68.16 City of Delano (metered tier) $24.72+ $21.92 = $ 46.64 City of McFarland $13.07+ $19.26 = $ 32.33 City of Shafter $32.14+ $ 6.27 = $ 38.41 City of Tehachapi (zone A) $21.50+ $20.20 = $ 41.70 City of Tehachapi (zone B) $21.50+ $25.38 = $ 46.88 City of Wasco $28.25+ $47.76 = $ 76.01 2016-2017 Kern County Grand Jury Desert Lake Community Services District $17.00+ $58.00 = $ 75.00 East Niles Community Services District $31.10+ $14.79 = $ 45.89 Edgemont Acres Mutual Water Company $75.00(Flat rate) = $ 75.00 Frazier Park Utility District (old rate) $39.59+ $17.28 = $ 56.87 Frazier Park Utility District (new rate 2017) $39.59+ $28.08 = $ 67.67 Golden Hills Community Services District $21.66+ $39.30 = $ 60.96 Greenfield County Water District $23.29+ $10.44 = $ 33.73 Indian Wells Valley Water District $36.96+ $12.33 = $ 49.29 Inyokern Community Service District $27.47+ $12.33 = $ 39.80 Krista Mutual Water Company $55.00(Flat rate) = $ 55.00 Lake Isabella Community Services District $23.05+ $45.97 = $ 69.02 Lake of the Woods Mutual Water Company $50.00(Flat rate) = $ 50.00 Lamont Public Utility District $26.86+ $ 5.95 = $ 32.81 Lost Hills Utility District $30.00+ $37.80 = $ 67.80 Mettler County Water District $30.75+ $00.00 = $ 30.75 Mil Potrero Mutual Water Company (quarterly billed) $37.60+ $29.00 = $ 66.60 Mojave Public Utility District $21.50+ $14.69 = $ 36.19 Oildale Mutual Water Company $33.90+ $00.00 = $ 33.90 Oildale Mutual Water Company (flat rate) $37.75+ $00.00 = $ 37.75 Quail Valley Water District $77.66+$72.36 = $150.02 Rand Communities Water District $46.00+ $162.75 = $208.75 Stallion Springs Community Services District $ 8.78+ $49.30 = $ 58.08 West Kern Water District $17.30+ $16.74 = $ 34.04 2016-2017 Kern County Grand Jury  Depending on the water district or company: Low $ 23.51 o High $ 208.75 o Average $ 56.16 o  The above estimated monthly water bills were calculated by the Committee, actual bills will vary. Some surveys used cubic feet (CF), some hundred cubic feet (CCF) (HCF), some gallons (Gal), and some hundred gallons (CG) of water for billing purposes. F4. Some Grand Jurors shared their personal monthly water bill from different areas of Kern County. This information illustrates the vast differences in the actual monthly water bills. Water bills varied according to single and multiple resident usages. Below are actual water bills, showing water usage, water rates, and the TOTAL BILL for a month with all fees, taxes, credits, and surcharges:  Juror A California Water Service – Bakersfield City o  6 CCF or 4,488 Gallons for the month  Connection Fee $ 9.98  6.00 CCF at $0.94/CCF $ 5.64  Total Bill (fees, credits, taxes, surcharges) $ 15.62  Juror B California Water Service o  16 CCF or 11,568 Gallons for the month  Connection Fee $ 15.33  13.00 CCF at $1.72 $ 23.30  3.00 CCF at $1.9429 $ 5.83  Total bill (fees, credits, taxes, surcharges) $ 47.58  Juror C California Water Service – Lake Isabella o  10 CCF or 7,480 Gallons for the month  Connection Fee $ 64.34  10.00 CCF at $9.1334 $ 91.33  Drought surcharge 4.00 CCF at $2.26 $ 9.04  Total bill (fees, credits, taxes, surcharges) $118.80  Juror D California Water Service – Bakersfield City o  55 CCF or 41,140 Gallons for the month  Connection Fee $ 15.06  55.00 CCF at $0.94 $ 51.70  Total bill (fees, credits, taxes, surcharges) $ 66.76  Juror E California Water Service o  24 CCF or 17,952 Gallons for the month  Connection Fee $ 15.33  13.00 CCF at $1.792 $ 23.30  11.00 CCF at $1.9429 $ 21.37  Total bill (fees, credits, taxes, surcharges) $ 64.42 2016-2017 Kern County Grand Jury  Juror F Bakersfield City Water Service o  12 CCF or 8,976 Gallons  Connection Fee $ 9.88  12.00 CCF at $0.94 $ 11.28  Total bill (fees, credits, taxes, surcharges) $ 21.16  Juror G Oildale Mutual Water Company o  Flat Rate  Total bill (fees, credits, taxes, surcharges) $ 37.75  Juror H California Water Service – Bakersfield City o  5 CCF or 3,740 Gallons  Connection Fee $ 9.98  5.00 CCF at $0.94 $ 4.70  Total bill (fees, credits, taxes, surcharges) $ 14.58  Juror I California Water Service – Bakersfield City o  7 CCF or 8,976 Gallons  Connection Fee $ 15.65  7.00 CCF at $1.828 $ 12.79  Total bill (fees, credits, taxes, surcharges) $ 30.22  Juror J California Water Service o  44 CCF or 32,912 Gallons  Connection Fee $ 15.23  13.00 CCF at $1.792 $ 23.30  21.00 CCF at $1.9429 $ 40.80  10.00 CCF at $2.2635 $ 22.64  Total bill (fees, credits, taxes, surcharges) $109.87 F5. The sources of water used to provide potable water in Kern County primarily comes from aquifers. Some entities utilize the State Water Project, the Kern Water Agency, or the Antelope Valley East Kern Water Agency. In 2006, the California Supreme Court ruled that Proposition 218 applies to local water, refuse and sewer charges.  A local jurisdiction cannot charge one group of customers more in order to subsidize the fees of another group  Requires each entity to complete a water rate survey before a rate change can be proposed  Amended the California Constitution by adding Articles XIII, C, and XIII, D, to require local governments to obtain the approval of property owners in a local ballot measure before levying a new or increased tax assessment on those property owners 2016-2017 Kern County Grand Jury Below are the sources of water and the last water rate survey by District or Company:  Bear Valley Community Services District: Water source: Wells and State Water Project o Last rate review: December 2013 o  Boron Community Water District Water source: Wells and Antelope Valley East Kern Water o Agency Last rate review: November 2013 o  Buttonwillow County Water District Water source: Wells o Last rate review: 2014 o  City of Bakersfield Water source: Wells o Last rate review: June 2016 o  City of Delano Water source: Wells o Last rate review: April 2013 o  City of McFarland Water source: Wells o Last rate review: No response o  City of Shafter Water source: Wells o Last rate review: In progress o  City of Tehachapi Water source: Wells and State Water Project for banking o Last rate review: December 2015 o  City of Wasco Water source: Wells o Last rate review: 2016 o  Desert Lake Community Services District Water source: Antelope Valley East Kern Water Agency o Last rate review: April 2015 o  East Niles Community Services District Water source: State water from Kern County Water Agency, o Kern River, and Friant-Kern Canal Last rate review: September 2016 o 2016-2017 Kern County Grand Jury  Edgemont Acres Mutual Water Company Water source: Wells and Antelope Valley East Kern Water o Agency Last rate review: January 2016 o  Frazier Park Utility District Water source: Wells o Last rate review: 2016 o  Golden Hills Community Services District Water source: Wells and State Water Project- City of o Tehachapi Last rate review: In progress o  Greenfield County Water District Water source: Wells o Last rate review: January 2016 o  Indian Wells Valley Water District Water sources: Wells o Last rate review: March 2015 o  Inyokern Community Service District Dissolved February 2015 o  Krista Mutual Water Company Water source: Well o Last rate review: June 2016 o  Lake Isabella Community Services District Water source: Purchase from ECW Company o Last rate review: June 2014 o  Lake of the Woods Mutual Water Company Water source: Wells and trucking in water o Last rate review: December 2016 o  Lamont Public Utility District Water source: Wells o Last rate review: No response o  Lost Hills Utility District Water source: Wells and State Water Project o Last rate review: April 2016 o 2016-2017 Kern County Grand Jury  Mettler County Water District Water source: Wells o Last rate review: In progress o  Mil Potrero Mutual Water Company Water source: Wells o Last rate review: April 2016 o  Mojave Public Utility District Water source: Wells and Antelope Valley East Kern Water o Agency Last rate review: October 2013 o  Oildale Mutual Water Company Water source: Wells and North of the River Water District o Last rate review: January 2012 o  Quail Valley Water District Water source: Wells o Last rate review: In progress o  Rand Communities Water District Water source: Wells o Last rate review: December 2012 o  Stallion Springs Community Services District Water source: Wells and State Water Project o Last rate review: 2010 o  West Kern Water District Water source: Wells and State Water Project o Last rate review: 2010 o 2016-2017 Kern County Grand Jury COMMENTS: The Committee would like to thank the staff from all of the responding water districts and companies for their cooperation. Anyone wanting to know more about their own water rates should contact their provider. NOTES: • 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. • Person wishing to make comments or responses to this report should be directed to: PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301 CC: FOREPERSON KERN COUNTY GRAND JURY 1415 TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 2016-2017 Kern County Grand Jury APPENDIX A 2016-2017 Kern County Grand Jury Kern County Residential Water Rates Survey
• CO50
  Bear Valley Community Services District
• CO51
  Boron Community Water District
• CO52
  Buttonwillow County Water District
• CO53
  How often are the meters read?
• CO54
  How many flat rate (unmetered) connections?
• CO55
  Describe your plan to meet State mandate (SB229) that requires metered water by 2025.
• CO56
  Name your public water district, city water system, or private company selling retail water.
• CO57
  How many metered residential water connections do you serve?
• CO58
  How are the meters read?
• CO59
  Describe the number and size of water storage tanks in use.
• CO60
  Approximately how many miles of main lines and branch pipes are within your residential retail system?
• CO61
  What is the annual average percentage water loss (unsold water)?
• CO62
  Approximately how many square miles is your service area?
• CO63
  What are the residential monthly service water rates: a. 5/8” service charge b. ¾” service charge c. 1” service charge d. 1 ½” service charge 2016-2017 Kern County Grand Jury e. 2” service charge f. 4” service charge g. Other sizes
• CO64
  Indicate the date of the last water rate review.
• CO65
  What is the charge per CCF and/or gallon for metered water?
• CO66
  Please provide the tiered rates if applicable.
• CO67
  What are the late charges and when are they applied?
• CO68
  What is the new residential connection fee? a. 5/8” b. ¾” c. 1” d. 1 ½” e. 2” f. 4” g. Other sizes
• CO69
  How often are meters replaced?
• CO70
  What is the cost per new meter? Please return survey to Kern County Grand Jury no later than December 15, 2016. Kern County Grand Jury 1415 Truxtun Avenue, Suite 600 Bakersfield, CA 93301 Fax: 661-321-0761 Email: [email protected] 2016-2017 Kern County Grand Jury LEBEC COUNTY WATER DISTRICT SUMMARY: As with most special districts in Kern County, the Lebec County Water District (District) has limited capital reserves to operate a district office with 3 employees. Meeting the
• CO71
  The Lebec County Water District should post a copy of this report where it will be available for public review.
• CO72
  Persons wishing to receive an email notification of newly released reports may sign up at: www.co.kern.ca.us/grandjury.
• CO73
  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: FOREPERSON KERN COUNTY GRAND JURY 1415 TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 2016-2017 Kern County Grand Jury APPENDIX: Appendix A 2016-2017 Kern County Grand Jury 2016-2017 Kern County Grand Jury
• CO74
  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.
• CO75
  Section 31040, “A district may take any property necessary to carry out the business of the district by grant, purchase, gift, devise, condemnation, or lease with or without the privilege of purchase.” 2016-2017 Kern County Grand Jury
• CO76
  Section 31041, “A district may hold, use, enjoy, lease or dispose of property within or without the district necessary to the full exercise of its powers.”
• CO77
  Section 31045, “A district may, on terms and conditions agreed upon by the board of directors of the municipal water district formed pursuant to the Municipal Water District Act of 1911:” “(a) Transfer, sell, lease, or convey to the municipal water o district any works, land, or structures within any improvement district formed pursuant to any of the provisions of this division.” C. Within the boundaries of the District; private wells and Pinon Valley Water Company also supply water for a small number of residents. D. The District supplies potable water with no fire hydrants. All new private wells must be permitted and approved by the District. E. Within the District boundaries, the District owns Lot 197 of Tract 3312, comprised of five acres. This is the site for the Mountain Valley Water System which has five connections, including three active connections in the Mountain Valley Home Owners Association (HOA). This system is a small tank that is not connected to the Quail Valley East or West Water Systems. The District pays the HOA a $120 association fee per year. FINDINGS: F1. On September 24, 2016, the District Board adopted RESOLUTION NO. 05-2016, declaring Lot 30 of Tract 3312 as surplus, while simultaneously authorizing the sale of the same property. a. “NOW, THEREFORE, BE IT RESOLVED AND ORDERED, The Board of Directors of Quail Valley Water District declares Lot 30 of Tract 3312, unincorporated area of Kern County, California, to be surplus property of Quail Valley Water District; and FURTHER, accepts the offer of [name deleted] to purchase Lot 30 of Tract 3312 for the sum of $2,500.00.” b. “Vote was, AYES: five, NOES: None” F2. The District Manager bought lot 30 to qualify to run for election to the Board of the Mountain Valley Home Owners Association. F3. The District Manager uses personal finances and equipment to subsidize the District’s financial situation. The DM loaned the District $10,000, which was repaid in January of 2017. The DM sold a 1985 Ford C700 truck to District for $500, with an option to repurchase at the same price. The District employees use the DM’s tools and equipment for repairing the District’s water system. 2016-2017 Kern County Grand Jury The DM uses a personal vehicle for meter reading, inspections, and other District travel, and requests mileage reimbursement. F4. There are currently 58 active water metered connections within the District. F5. The District employs a full-time District Manager, a half-time District Secretary, and a part-time field employee. F6.District Board meetings are held on the last Saturday of the month, with no scheduled meetings in November and December due to the holidays. Board Members are not compensated for meetings. The flag salute is not a part of the meeting. F7. The meters are read manually once a month. The District offers monthly invoices by email, and also accepts payments by credit card through the use of QuickBooks. F8. The District has not yet considered forming a Strategic Plan for its Sustainable Groundwater Management (SGM) Program. F9. The District has entered into an agreement with the “California State Water Resources Control Board under the provisions of the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006, under Public Resources Code, §75022,” for a $5.8 million grant, (reimbursement on approval) to meet the State Water Quality Standards. Eight miles of new pipe will be added to the East and West Water System connections, and a water treatment plant will be added to remove iron and manganese from the water. The project will also allow three wells to exceed the State Water Standards for arsenic, fluoride and antimony to be placed in stand-by service mode. To date, approximately $600,000 of the $5.8 million grant has been spent. The District has a $1 million line of credit to pay the construction costs while waiting for reimbursement. The contract for the Grant was executed on December 8, 2015, for a term of three years. Phases 2, 3, and 4 have yet to go to bid. The engineering firm is working on the final design and bid documents. F10. The Grant requires the District to have an annual year-end audit at a cost of $5,500 per year. F11. The District Board Policies and Procedures are still under review for modifications. These policies have not been adopted by the Board. F12. On November 21, 2016, the Board received the Basic Financial Statements and Supplementary Information, Year Ended June 30, 2016, from their Certified Public Accountant. To date, neither the District Board, nor the DM, or the Kern County Auditor-Controller-County Clerk has addressed the 2016-2017 Kern County Grand Jury Management Discussion and Analysis, or the Notes to Financial Statements of the financial report. F13. On the date of the Grand Jury inspection, the connection fee for water service was $6,500. Starting April 1, 2017, the connection fee will return to the former rate of $9,500, of which $7,000 is allocated to the Capital Investment Fund for the District. F14. The Total Revenue for 2016 was $113,052, a decrease of $18,839 from the prior year (down 14.3%). F15. The current water rate for a 5/8 X 3/4 inch metered connection is $77.60 per month and $4.99 per 100 cubic-feet (748 gallons). Compared to other water districts, this rate is one of highest for Kern County (See Appendix A). COMMENTS: The Committee thanks the District Manager and District Secretary for their assistance and cooperation. The Committee understands that the District has a large service area with few connections, which drives the cost of water higher than most districts. When the $5.8 million grant is completed, the District will be better able to serve the community.
• CO78
  The Kern County Auditor-Controller-County Clerk and the Quail Valley Water District should post a copy of this report where it will be available for public review.
• CO79
  The South Fork Mosquito Abatement District should post a copy of this report where it will be available for public review.