Independent Special Districts

Five independent special districts have never held public competitive governing board elections since at least 1970. Historically, when a vacancy occurs on the district’s board, or when a board member resigns near the end of his or her term, the board appoints a successor to serve out the remainder of the term. The newly appointed board member then becomes the incumbent, with all advantages of incumbency. If no one other than the newly appointed incumbent runs for the vacated office, the incumbent is then appointed and no election is held. The following independent special districts have held no recorded public competitive board member elections since their formation: • Ojai Water Conservation District • Oxnard Drainage District No. 1 • Oxnard Drainage District No. 2 • Pleasant Valley County Water District • Saticoy Sanitary District (Ref-07)

Five independent special district boards are not elected by the public but appointed by local elected officials who have no further authority over them. • Bardsdale Cemetery District • Ranch Simi Cemetery District • Fox Canyon Groundwater Management Agency • Piru Public Cemetery District • Ventura Port District (Ref-07)

Seventeen independent special districts have not held public competitive board elections since the year indicated: • Hidden Valley Municipal Water District – 1960 • Montalvo Community Services District – 1994 • Camrosa Water District – 2006 • Meiners Oaks Water District – 2008 • Triunfo County Sanitation District – 2010 • Fillmore-Piru Memorial District – 2010 • Rancho Simi Recreation and Park District – 2012 • Blanchard/Santa Paula Library District – 2012 Independent Special Districts 3 • Bell Canyon Community Services District – 2014 • Camarillo Health Care District – 2014 • Conejo Recreation & Park District – 2014 • United Water Conservation District – 2014 • Pleasant Valley Recreation and Park District – 2014 • Channel Islands Beach Community Services District – 2016 • Calleguas Municipal Water District – 2016 • Casitas Municipal Water District – 2016 • Ojai Valley Sanitary District – 2016 (Ref-07)

There are no reserve policies or practices listed on the websites of all County independent special districts under the jurisdiction of LAFCO. Many independent special districts list their reserves in their financial reports. The Little Hoover Commission stated that hundreds of independent special districts have banked multimillion-dollar reserves that are unpublicized and unnoticed in regional or statewide infrastructure planning. (Ref-01)

State law mandates four requirements for any local agency with a website: • Agendas must be posted 72 hours before a meeting occurs. • Annual compensation reports, or a link to the State Controller’s website that contains the report, must be posted. • Financial transaction reports, or a link to the State Controller’s website that contains the report, must be posted. • Enterprise system catalogs must be posted. (Ref-04)

According to the Little Hoover Commission, it is important for independent special districts to communicate to their public in order to know which districts receive their property tax dollars, how to participate in their district’s public processes, and how to pick the best board members to run their districts from an often-obscure list of potential candidates. Recent technological developments have allowed many independent special districts to use websites to accomplish this. (Ref-04)

Six independent special districts in the County do not provide public access to a website. • Fillmore-Piru Memorial District • Hidden Valley Municipal Water District • Oxnard Drainage District No. 1 • Oxnard Drainage District No. 2 4 Independent Special Districts • Piru Public Cemetery District • Pleasant Valley County Water District

The State Controller recommends the following key components for a website: • Name, location, contact information, services provided • Governance structure of the district, including election information and the process for constituents to run for board positions • Compensation details: total staff compensation, including salary, pensions, and benefits, or a link to this information on the State Controller’s website • Budget, including annual revenues and the sources of such revenues, fees, property taxes and other assessments, bond debt, expenditures, and reserve amounts • Reserve fund policy • Geographic area served • Most recent Municipal Service Review, most recent annual financial report provided to the State Controller’s office, or a link to this information on the State Controller’s website • Link to the Local Agency Formation Commission and any State agency providing oversight (Ref-04, Ref-07) Conclusions C-01. The Grand Jury concluded there is a lack of transparency and accountability when there is: • An absence of competitive elections • No general publication of elections other than in County election materials • An election giving the electoral advantage of incumbency to a person who has been appointed solely to fill out the remaining months of another’s term The Grand Jury concluded that these practices, while legal under present election codes, are not conducive to the best interest of the public or the interest of the special districts themselves. (FA-01, FA-03) C-02. The Grand Jury concluded that the absence of publicly available reserve policies and practices does not serve the public interest. (FA-04, FA-08) C-03. The Grand Jury concluded the independent special districts should better articulate the need for and the size of their reserves by adopting explicit Independent Special Districts 5 policies for reserve funds. These policies should be readily available for public review. (FA-04, FA-08) C-04. The Grand Jury concluded that the absence of websites or the lack of public information on existing websites defining the policies, practices, and missions of independent special districts is not in the public interest nor does it promote public accountability. (FA-01, FA-02, FA-04, FA-05) Recommendations R-01. The Grand Jury recommends all independent special districts in the County reach out and communicate with the public on opportunities to serve on boards. Elections should be broadly publicized, along with a description of the nature and mission of the districts. (C-01, C-04) R-02. The Grand Jury recommends independent special district boards discontinue the practice of appointing new board members a few months prior to a public election, giving incumbent status to a virtually new board member. (C-01) R-03. The Grand Jury recommends that all independent special districts have a published policy for reserve funds, including the size and purpose of reserves and how they are invested. These policies should be readily available for public review. (C-02, C-03, C-04) R-04. The Grand Jury recommends every independent special district in the County have a website. Key components should include: • Name, location, contact information, and services provided • Governance structure of the district, including election information and the process for constituents to run for board positions • Compensation details including staff salaries, pensions, and benefits, or a link to this information on the State Controller’s website • Annual revenues and the sources of such revenues, including fees, property taxes and other assessments, bond debt, expenditures, and reserve amounts • Reserve fund policy • Geographic area served • Most recent Municipal Service Review, and the most recent annual financial report provided to the State Controller or a link to this information on the State Controller’s website • Link to LAFCO (C-02, C-03) 6 Independent Special Districts Responses Responses Required From: Ojai Water Conservation District (C-01, C-04, R-01, R-02, R-03, R-04) Oxnard Drainage District No. 1 (C-01, C-04, R-01, R-02, R-03, R-04) Oxnard Drainage District No. 2 (C-01, C-04, R-01, R-02, R-03, R-04) Pleasant Valley County Water District (C-01, C-04, R-01, R-02, R-03, R-04) Saticoy Sanitary District (C-01, C-04, R-01, R-02, R-03, R-04) Bardsdale Cemetery District (C-01, R-04) Rancho Simi Cemetery District (C-01, R-04) Fox Canyon Groundwater Management Agency (C-01, R-04) Piru Public Cemetery District (C-01, R-04) Ventura Port District (C-01, R-04) Hidden Valley Municipal Water District (C-02, C-03, R-04) Montalvo Community Services District (C-02, C-03, R-04) Camrosa Water District (C-02, C-03, R-04) Meiners Oaks Water District (C-02, C-03, R-04) Triunfo County Sanitation District (C-02, C-03, R-04) Fillmore-Piru Memorial District (C-02, C-03, R-04) Rancho Simi Recreation and Park District (C-02, C-03, R-04) Blanchard/Santa Paula Library District (C-02, C-03, R-04) Bell Canyon Community Services District (C-02, C-03, R-04) Camarillo Health Care District (C-02, C-03, R-04) Conejo Recreation & Park District (C-02, C-03, R-04) United Water Conservation District (C-02, C-03, R-04) Pleasant Valley Recreation and Park District (C-02, C-03, R-04) Channel Islands Beach Community Services District (C-02, C-03, R-04) Calleguas Municipal Water District (C-02, C-03, R-04) Casitas Municipal Water District (C-02, C-03, R-04) Ojai Valley Sanitary District (C-02, C-03, R-04) Requested From: Ventura Local Agency Formation Commission (C-01, C-02, C-03, C-04, R-01, R-02, R-03, R-04) References Ref-01. Little Hoover Commission, Special Districts: Relics of the Past or Resources for the Future?, May 2000.pg.i. http://www.lhc.ca.gov/report/special-districts-relics-past-or-resources- future Accessed April 12, 2018 Ref-02. California State Controller’s Office, Counties Financial Data.,https://counties.bythenumbers.sco.ca.gov/#!/year/2016/revenue/ 0/entity_name?vis=barChart Independent Special Districts 7 Accessed April 11, 2018 Ref-03. California State Controller’s Office, Counties Financial Data, https://counties.bythenumbers.sco.ca.gov/#!/year/2016/operating/0/en tity_name?vis=barChart Accessed April 11, 2018 Ref-04. Little Hoover Commission, Special Districts: Improving Oversight and Transparency, Report pg.5,#239,August 2017 http://www.lhc.ca.gov/sites/lhc.ca.gov/files/Reports/239/Report 239.pdf Accessed April 11, 2018 Ref-05. 1998-1999 Ventura County Grand Jury, Special Districts: Final Report: https://www.ventura.org/grand-jury/ Accessed April 11, 2018 Ref-06. Ventura Local Area Formation Commission Website, http://www.ventura.lafco.ca.gov Accessed April 11, 2018 Ref-07. Jason Quinlin, Ventura County Election Division, October 18, 2017. http://www.lhc.ca.gov/sites/lhc.ca.gov/files/Reports/239/Report Accessed April 11, 2018 Ref-08. Pedro Nava, Letter from the Chair, Little Hoover Commission, http://www.lhc.ca.gov/sites/lhc.ca.gov/files/Reports/239/Report.pdf Accessed April 11, 2018 Ref-09. “Guidelines for Reserves for Special Districts”, 2nd. Edition, California Special District Association https://www.csda.net/home Accessed April 11, 2018 Attachments Att-01. California State Controller’s Chart of Ventura County Special District Revenues by Special District Att-02. State Controller’s Office Data, Special Districts Financial Transactions Report: Fiscal Year 2013-14 Ventura County List of Independent Special Districts 8 Independent Special Districts Glossary TERM DEFINITION Commission Little Hoover Commission Attachment 01 California State Controller’s Chart of Ventura County Special District Revenues by Special District 10 Independent Special Districts Independent Special Districts 11 Attachment 02 State Controller’s Office Data Special Districts Financial Transactions Report Fiscal Year 2013-14 Ventura County List of Independent Special Districts 12 Independent Special Districts SCO_LAFCO FY 2014 07/29/15 California State Controller's Office List includes only independent special districts Ventura Bardsdale Cemetery District Cemetery - 178,310 2,829 Ventura Beach Erosion Authority For Clean Oceans and Nourishment Resource Conservation - 103,516 103,208 Ventura Bell Canyon Community Services District Waste Disposal Enterprise - 464,992 - 4,043 Ventura Black Gold Cooperative Library System Library Services - 1,356,114 - Ventura Blanchard/Santa Paula Public Library District Library Services - 929,989 119,150 Ventura Calleguas Municipal Water District Water Enterprise 147,829,496 7,895,811 - 288,173 Ventura Camrosa Water District Waste Disposal Enterprise 3,140,580 47,319 - Ventura Camrosa Water District Water Enterprise 15,709,479 1,492,882 - 4,405 Ventura Casitas Municipal Water Water Enterprise 14,923,271 3,100,620 - 76,841 Ventura Channel Islands Beach Community Services District Waste Disposal Enterprise 2,361,577 9,223 - Ventura Channel Islands Beach Community Services District Water Enterprise 1,689,332 61,632 - Ventura Coastal Schools Employee Benefits Organization Self Insurance - - 44,458,554 - Ventura Conejo Recreation and Park District Recreation and Park - - 22,706,394 3,049,907 Ventura Conejo Valley Open Space Conservation Agency Resource Conservation - - 1,268,900 1,188,474 Ventura El Rancho Simi Cemetery District Cemetery - 145,921 544 Ventura Fillmore-Piru Memorial District Memorial - - 201,247 178 Ventura Fox Canyon Groundwater Management Agency Water Enterprise - 1,304,731 - Ventura Gold Coast Transit Transit Enterprise 18,531,482 - 14,557,083 Ventura Hidden Valley Municipal Water District Water Enterprise - 8,115 - Ventura Meiners Oaks County Water District Water Enterprise 1,294,909 130,556 - 1,074 Ventura Montalvo Community Services District Waste Disposal Enterprise 397,066 276,058 - 2,376 Ventura Ojai Basin Groundwater Management Agency Water Enterprise 86,045 567 - Ventura Ojai Valley Sanitary District (Ventura) Waste Disposal Enterprise 8,261,529 935,280 - 5,170 Ventura Ojai Water Conservation District Flood Control and Water Conservation - 8,013 70 Ventura Oxnard Drainage District No. 1 (Ventura) Drainage and Drainage Maintenance - 48,241 - Ventura Oxnard Drainage District No. 2 (Ventura) Drainage and Drainage Maintenance - 163,234 - Ventura Oxnard Harbor District Harbor and Port Enterprise 14,045,832 248,034 - Ventura Piru Cemetery District Cemetery - 44,491 423 Ventura Pleasant Valley County Water District Water Enterprise 3,610,070 409,349 - 24,875 Ventura Pleasant Valley Recreation and Park District Recreation and Park - 7,921,243 153,761 Ventura Port Hueneme Water Agency Water Enterprise 4,480,306 48,197 - Ventura Rancho Simi Recreation and Park District Recreation and Park - 21,109,995 1,332,246 Ventura Saticoy Sanitary District (Ventura) Waste Disposal Enterprise 403,743 42,638 - 320 Ventura Teen Center Services Authority Recreation and Park - 204,298 - Ventura Triunfo County Sanitation District (Ventura) Waste Disposal Enterprise 9,669,902 26,272 - Ventura Triunfo County Sanitation District (Ventura) Water Enterprise 6,592,267 153,881 - Ventura United Water Conservation District Flood Control and Water Conservation - 14,691,843 197,963 Ventura United Water Conservation District Recreation and Park -- 109,068 - Ventura United Water Conservation District Water Enterprise 8,105,955 1,502,683 - Ventura Ventura County Air Pollution Control Air Pollution Control - 11,336,081 8,033,315 Ventura Ventura County Fast Action School Transit (VCFAST) Governmental Services - 114,876 114,724 Ventura Ventura County Regional Energy Alliance (VCREA) Governmental Services - 221,994 - Ventura Ventura County Resource Conservation Resource Conservation - 654,147 636,162 Ventura Ventura County Schools Business Services Governmental Services - 1,021,705 - Ventura Ventura County Schools Self-Funding Authority Self Insurance - 24,367,649 - Ventura Ventura County Transportation Commission Transit Enterprise 9,117,919 - 6,843,264 Ventura Ventura Port District Harbor and Port Enterprise 7,144,257 3,021,873 - 1,949,287 Ventura Ventura Region Sanitation District Waste Disposal Enterprise 20,033,901 473,154 - Ventura Ventura River County Water District Water Enterprise 2,088,552 35,136 - 272 Independent Special Districts 13