Statement of Meetings Attended & Claim for Directors Compensation*

R1

1 Directors should review their by-laws every four years to assure compliance with applicable laws, ethical practices, and appropriate behavior. CHWD Response: Agree CHWD Board of Directors and Officers Policy Series 2000 and Board of Directors Meetings Policy Series 3000 include requirements regarding standards of conduct and ethical behavior. These policies are reviewed and amended as necessary periodically. Management will recommend that these policies be amended to provide for review at an interval not to exceed four years.

R2

1 All ISDs should encourage education and training, but should not make direct monetary (cash) awards for educational achievement. CHWD Response: Agree CHWD Education Assistance Program Policy No. 4410 encourages employees to participate in educational and training programs. The District provides financial assistance for off-duty education in the form of reimbursement for actual documented expenses up to specified dollar limits and only after completion of a study course with a minimum final grade of a "C" or equivalent. Direct economic rewards such as bonuses or one-time cash payments for educational achievement are not provided.

R3

1 All ISDs should adopt pension and OPEB plans that are fair, affordable and sustainable. CHWD Response: Agree A pension plan for CHWD employees is provided through the California Public Employee Retirement System. CHWD's CalPERS plan with a 2% at 55 (highest 12 months) retirement benefit formula was adopted in February 2001. Management will recommend that the Board of Directors evaluate providing a CalPERS plan with a 2% at 55 (highest 36 months) retirement benefit formula for new hires. CHWD Insurance Benefits for Retirees Policy No. 4831 provides OPEB benefits for retirees with a minimum length of service of 20 years. Four retirees and one surviving spouse currently receive this benefit and nine current employees meet the minimum 20-year qualifying requirement. The District's current financial participation under this Policy is dependent upon the length of employment with the District as follows: Length of Employment Maximum Monthly District Participation 20.00 years $287.00 25.00 years $323.00 30.00 years $359.00 The District has in place an Employment Related Benefits Reserve to fund this benefit.

R4

1 Every ISD in Sacramento County should establish and adhere to a goal of minimizing no-bid purchasing. Essentially all purchases except utilities and emergency construction should be by contracts awarded to the lowest responsive responsible bidders. CHWD Response: Agree, with qualifications CHWD Purchasing and Procurement Policy No. 6500 outlines purchasing objectives, levels and procedures for general purchases, consultant services, public works projects, petty cash purchases, emergency purchases and single source purchases with a goal to acquire the best value and competitive pricing from various suppliers, contractors and consultants. Requiring all purchases except utilities and emergency construction to be awarded to the lowest responsive responsible bidders can be problematic and not cost-effective with respect to small general and petty cash purchases and the personnel time necessary to solicit prices. Such a requirement also can pose issues with selection of qualification-based professional service providers (engineers, architects, management consultants, legal counsel, etc.)

R5

1 All ISDs must complete and file the required annual Independent Financial Audit. CHWD Response: Agree CHWD conducts an Independent Financial Audit annually and files copies with the State Controller's Office and the County of Sacramento Auditor- Controller's Office. Copies of the annual audit are also made available on CHWD's website.