Score: +1
(1/0/0)
Santa Barbara County Grand Jury
• 2015-2016
Cuyama Community Services District Operating Under Difficult Circumstances
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings and Recommendations 15 findings
F1
The meeting minutes are far too detailed and are not submitted to and approved by the Cuyama Community Services District Board of Directors in a timely manner.
Related Recommendations (1)
R1
That the Cuyama Community Services District Board of Directors require that the minutes be succinct and submitted for acceptance at the next scheduled meeting.
F2
Neither the Board of Directors nor key employees have ever attended ethics training courses. The Board of Directors has the authority to mandate ethics training for key employees.
Related Recommendations (1)
R2
That the Cuyama Community Services District Board of Directors include biennial ethics training within the job descriptions of key employees including the Manager of Water/Sewer Operations and the Controller.
F3
No job descriptions exist for Assistant Operator, Relief Secretary, Maintenance Worker, and Assistant Maintenance Worker.
Related Recommendations (1)
R3
That the Cuyama Community Services District Board of Directors ensure job descriptions are prepared for all employees.
F4
Job descriptions for Manager for Water/Sewer Operations and Controller have not been updated for several years.
Related Recommendations (2)
R4a
That the Cuyama Community Services District Board of Directors require the existing but obsolete job description for Manager for Water/Sewer Operations be updated to include licensing requirements, professional qualifications, and response time expectations, at a minimum.
R4b
That the Cuyama Community Services District Board of Directors require the existing but obsolete job description for the Controller be updated.
F5
The Cuyama Community Services District Personnel Policy Manual has no policy addressing conflicts of interest such as nepotism.
Related Recommendations (1)
R5
That the Cuyama Community Services District Board of Directors add a policy on conflicts of interest such as nepotism to its Personnel Practices Manual.
F6
The Board of Directors has failed to follow its policy set forth in the Personnel Policy Manual Section XIV, Part 2 and allowed “Offensive, abusive, or persistent discourteous treatment of the public or fellow employees”.
Related Recommendations (1)
R6
That the Cuyama Community Services District Board of Directors enforce Section XIV (Disciplinary Actions Against Employees) Part 2 of its Personnel Policy Manual.
F7
The Cuyama Community Services District Board of Directors has no succession plan for the positions of Manager for Water/Sewer Operations or Controller.
Related Recommendations (1)
R7
That the Cuyama Community Services District Board of Directors establish an orderly succession plan for the positions of Manager for Water/Sewer Operations and Controller.
F8
Required annual personnel performance reviews have not been conducted in accordance with Section XXIII of the Cuyama Community Services District’s Personnel Policy Manual.
Related Recommendations (1)
R8
That the Cuyama Community Services District Board of Directors and Manager for Water/Sewer Operations conduct annual performance reviews of all employees.
F9
The Cuyama Community Services District Board of Directors has not enforced its delinquent account enforcement policy, CCSD Water Policy, Article 10 - Discontinuance of Service, 1-1003, Non-payment of Bills.
Related Recommendations (1)
R9
That the Cuyama Community Services District Board of Directors enforce its delinquent accounts collection policy.
F10
That the Cuyama Community Services District will need to increase its revenues to remain financially viable.
Related Recommendations (1)
R10
That the Cuyama Community Services District Board of Directors implement the rate increases recommended in the October 2015 CCSD Water and Wastewater Rate Study by the Rural Community Assistance Corporation.
F11
The public needs to be informed of the need for and implementation of future water and wastewater rate increases.
Related Recommendations (1)
R11
That the Cuyama Community Services District Board of Directors initiate a public education program regarding the need for water and wastewater rate increases.
F12
That the existing telephone system does not adequately support teleconferencing.
Related Recommendations (1)
R12
That the Cuyama Community Services District Board of Directors ensure an adequate teleconferencing system is available.
F13
The Cuyama Community Services District Board of Directors has not enforced CCSD Policy 91- 1 regarding the personal use of District owned vehicles.
Related Recommendations (1)
R13
That the Cuyama Community Services District Board of Directors enforce its existing policy regarding the personal use of District owned vehicles.
F14
The Cuyama Community Services District Board of Directors does not receive any compensation.
Related Recommendations (1)
R14
That the Cuyama Community Services District Board of Directors consider compensating board members.
F15
The heavy workload for the Controller position impacts the timely completion of some required functions.
Related Recommendations (1)
R15
That the Cuyama Community Services District Board of Directors make more frequent use of the Relief Secretary to reduce the workload of the Controller.
Conclusions 16
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CL1That the Cuyama Community Services District will need to increase its revenues to remain financially viable.
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CL2The meeting minutes are far too detailed and are not submitted to and approved by the Cuyama Community Services District Board of Directors in a timely manner. 2015-16 Santa Barbara County Grand Jury 9 CUYAMA COMMUNITY SERVICES DISTRICT__ ___
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CL3Neither the Board of Directors nor key employees have ever attended ethics training courses. The Board of Directors has the authority to mandate ethics training for key employees.
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CL4No job descriptions exist for Assistant Operator, Relief Secretary, Maintenance Worker, and Assistant Maintenance Worker.
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CL5Job descriptions for Manager for Water/Sewer Operations and Controller have not been updated for several years.
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CL6The Cuyama Community Services District Personnel Policy Manual has no policy addressing conflicts of interest such as nepotism.
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CL7Required annual personnel performance reviews have not been conducted in accordance with Section XXIII of the Cuyama Community Services District’s Personnel Policy Manual.
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CL8The Board of Directors has failed to follow its policy set forth in the Personnel Policy Manual Section XIV, Part 2 and allowed “Offensive, abusive, or persistent discourteous treatment of the public or fellow employees”. 2015-16 Santa Barbara County Grand Jury 10 CUYAMA COMMUNITY SERVICES DISTRICT__ ___
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CL9That the existing telephone system does not adequately support teleconferencing.
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CL10The Cuyama Community Services District Board of Directors has not enforced CCSD Policy 91- 1 regarding the personal use of District owned vehicles.
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CL11The Cuyama Community Services District Board of Directors has no succession plan for the positions of Manager for Water/Sewer Operations or Controller.
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CL12The Cuyama Community Services District Board of Directors has not enforced its delinquent account enforcement policy, CCSD Water Policy, Article 10 - Discontinuance of Service, 1-1003, Non-payment of Bills.
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CL13The public needs to be informed of the need for and implementation of future water and wastewater rate increases.
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CL14The Cuyama Community Services District Board of Directors does not receive any compensation.
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CL15The heavy workload for the Controller position impacts the timely completion of some required functions.
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CL16New Cuyama has evolved from an "oil town" founded in the early 1950s by one company into the sparsely populated "outback" community seen today. Over the past four decades, water and sewer services have been provided efficiently and economically to the residents of the town by the Cuyama Community Services District. New regulations, the reality of serving less than 300 connections, and generally low household incomes have been challenges the district has addressed quite well. This is to be commended. However, the investigation by the 2015 - 2016 Santa Barbara County Grand Jury found that there are a number of areas in which the district is not performing adequately. Many of the issues which need to be addressed by the Board of Directors of the Cuyama Community Services District involve enforcing policies that already exist in their Personnel Policy Manual and elsewhere. These include the enforcement of their policies on: discontinuance of service, the personal use of district owned vehicles, and the prohibition of offensive, abusive, or persistent discourteous treatment of the public or fellow employees. The Board of Directors must also reevaluate their staffing needs and develop a succession plan to replace key employees. Lastly, the Board of Directors needs to follow the Rural Community Assistance Corporation’s recommendations to raise water and wastewater rates as stated in its October 2015 study. To assure the legal and financial viability of the Cuyama Community Services District and its employees, the Board of Directors must address and correct these and all other deficiencies detailed in this report. FINDINGS AND RECOMMENDATIONS Finding 1 The meeting minutes are far too detailed and are not submitted to and approved by the Cuyama Community Services District Board of Directors in a timely manner. 2015-16 Santa Barbara County Grand Jury 9 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ Recommendation 1 That the Cuyama Community Services District Board of Directors require that the minutes be succinct and submitted for acceptance at the next scheduled meeting. Finding 2 Neither the Board of Directors nor key employees have ever attended ethics training courses. The Board of Directors has the authority to mandate ethics training for key employees. Recommendation 2 That the Cuyama Community Services District Board of Directors include biennial ethics training within the job descriptions of key employees including the Manager of Water/Sewer Operations and the Controller. Finding 3 No job descriptions exist for Assistant Operator, Relief Secretary, Maintenance Worker, and Assistant Maintenance Worker. Recommendation 3 That the Cuyama Community Services District Board of Directors ensure job descriptions are prepared for all employees. Finding 4 Job descriptions for Manager for Water/Sewer Operations and Controller have not been updated for several years. Recommendation 4a That the Cuyama Community Services District Board of Directors require the existing but obsolete job description for Manager for Water/Sewer Operations be updated to include licensing requirements, professional qualifications, and response time expectations, at a minimum. Recommendation 4b That the Cuyama Community Services District Board of Directors require the existing but obsolete job description for the Controller be updated. Finding 5 The Cuyama Community Services District Personnel Policy Manual has no policy addressing conflicts of interest such as nepotism. Recommendation 5 That the Cuyama Community Services District Board of Directors add a policy on conflicts of interest such as nepotism to its Personnel Practices Manual. Finding 6 The Board of Directors has failed to follow its policy set forth in the Personnel Policy Manual Section XIV, Part 2 and allowed “Offensive, abusive, or persistent discourteous treatment of the public or fellow employees”. 2015-16 Santa Barbara County Grand Jury 10 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ Recommendation 6 That the Cuyama Community Services District Board of Directors enforce Section XIV (Disciplinary Actions Against Employees) Part 2 of its Personnel Policy Manual. Finding 7 The Cuyama Community Services District Board of Directors has no succession plan for the positions of Manager for Water/Sewer Operations or Controller. Recommendation 7 That the Cuyama Community Services District Board of Directors establish an orderly succession plan for the positions of Manager for Water/Sewer Operations and Controller. Finding 8 Required annual personnel performance reviews have not been conducted in accordance with Section XXIII of the Cuyama Community Services District’s Personnel Policy Manual. Recommendation 8 That the Cuyama Community Services District Board of Directors and Manager for Water/Sewer Operations conduct annual performance reviews of all employees. Finding 9 The Cuyama Community Services District Board of Directors has not enforced its delinquent account enforcement policy, CCSD Water Policy, Article 10 - Discontinuance of Service, 1-1003, Non-payment of Bills. Recommendation 9 That the Cuyama Community Services District Board of Directors enforce its delinquent accounts collection policy. Finding 10 That the Cuyama Community Services District will need to increase its revenues to remain financially viable. Recommendation 10 That the Cuyama Community Services District Board of Directors implement the rate increases recommended in the October 2015 CCSD Water and Wastewater Rate Study by the Rural Community Assistance Corporation. Finding 11 The public needs to be informed of the need for and implementation of future water and wastewater rate increases. Recommendation 11 That the Cuyama Community Services District Board of Directors initiate a public education program regarding the need for water and wastewater rate increases. 2015-16 Santa Barbara County Grand Jury 11 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ Finding 12 That the existing telephone system does not adequately support teleconferencing. Recommendation 12 That the Cuyama Community Services District Board of Directors ensure an adequate teleconferencing system is available. Finding 13 The Cuyama Community Services District Board of Directors has not enforced CCSD Policy 91- 1 regarding the personal use of District owned vehicles. Recommendation 13 That the Cuyama Community Services District Board of Directors enforce its existing policy regarding the personal use of District owned vehicles. Finding 14 The Cuyama Community Services District Board of Directors does not receive any compensation. Recommendation 14 That the Cuyama Community Services District Board of Directors consider compensating board members. Finding 15 The heavy workload for the Controller position impacts the timely completion of some required functions. Recommendation 15 That the Cuyama Community Services District Board of Directors make more frequent use of the Relief Secretary to reduce the workload of the Controller. REQUEST FOR RESPONSE Pursuant to California Penal Code Section 933 and 933.05, the Jury requests each entity or individual named below to respond to the enumerated findings and recommendations within the specified statutory time limit: Cuyama Community Services District Board of Directors– 90 days Findings 1 through 15 Recommendations 1 through 15 The Santa Barbara County Board of Supervisors – No Response Required 2015-16 Santa Barbara County Grand Jury 12 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ APPENDICES APPENDIX A Job Descriptions APPENDIX B Personnel Policy Manual APPENDIX C Resignation Letters of Board Members and Formal Complaint APPENDIX D Work Environment Data APPENDIX E CCSD Policies 2015-16 Santa Barbara County Grand Jury 13 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ APPENDIX A Job Descriptions 2015-16 Santa Barbara County Grand Jury 14 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 15 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 16 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ APPENDIX B Personnel Policy Manual 2015-16 Santa Barbara County Grand Jury 17 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 18 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 19 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 20 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 21 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ APPENDIX C Resignation Letters of Board Members and Formal Complaint 2015-16 Santa Barbara County Grand Jury 22 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 23 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 24 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 25 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 26 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ APPENDIX D Work Environment Data The following are excerpts from meeting minutes and opinions from interviews conducted by the Jury: a. … becomes disrespectful and disruptive when the discussion does not go their way. b. …no employee should be subjected to the hostile work environment and verbal abuse… c. …that part of the manual dealing with verbal abuse [Section XIV. Disciplinary Actions 2.] has been violated d. Board members have observed verbal abuse. e. Some board members have resigned due to the hostile environment at board meetings. f. … an atmosphere of intimidation exists in the office and staff will not call 911 when necessary… g. …a community services district crippled by intimidation…. h. …became utterly and completely irrational… i. …the board is an inconvenience… j. …a former board member interrupts board meetings and yells… k. The minutes from the November 19, 2015 Board meeting, when a formal complaint was filed, include the following: “At this time, XXXXXXXXXX addressed the Board and gave her reason for attending the board meeting. She reported that she came to hear the Board’s plan in response to the employee complaint. XXXXXXX informed the current Board Members and guests that she had previously served on the Board of Directors and was aware of the XXXXXXXXX prior conduct. She stated that she left the Board because of her own personal experiences with XXXXXXXX. XXXXXXX proceeded to encourage the Board to do the right thing in response to the complaint, and she expressed the need for accountability.” 2015-16 Santa Barbara County Grand Jury 27 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ APPENDIX E CCSD Policies 2015-16 Santa Barbara County Grand Jury 28 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 29 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ 2015-16 Santa Barbara County Grand Jury 30
Observations 1
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OB1Board of Directors The governing Body of the CCSD is a five person board elected by the citizens of New Cuyama. One director resigned in July 2015 and it took approximately six months to fill the vacancy. The Jury was informed that directors can attend board meetings by phone if they are out of town. However, the existing telephone system is dated and teleconferencing is not easily accomplished. Directors receive no compensation even though CA government code §53232.1 says they may. Of the sixteen water, sewer, and community service districts in Santa Barbara County surveyed by the Jury, from data on the California State Controller’s website3, the CCSD is one of only four that does not compensate its board of directors for their service. All board directors, both past and present, interviewed by the Jury seemed to take their jobs seriously and to care greatly about the proper functioning of the water and sewer systems entrusted to them. During its investigation, however, the Jury found that the board was not fulfilling its responsibilities such as setting policy, enforcing that policy, and giving appropriate direction and supervision to the full time staff. In particular these include: Job Descriptions Personnel Policy Manual 3 www.publicpay.ca.gov 2015-16 Santa Barbara County Grand Jury 3 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ Policy Enforcement Performance Reviews Personal Use of District Vehicle Staffing Issues Work Environment Financial Management Job Descriptions Four positions have no job description at all. The four are the Assistant Operator, the Maintenance Worker, the Assistant Maintenance Worker, and the Relief Secretary. The lack of a job description for the Assistant Operator position, sometimes called Manager’s Helper, is particularly problematic, as it is filled by the Manager’s son. The Jury determined that over the years there have been questions as to the responsibilities and work schedule for this position4. As early as 2011, a board member resigned over questions involving the proper documentation of timesheets for this position. In February of 2015, the issue was resolved by changing the Assistant Operator position from hourly to salaried, with a 35 hour per week work requirement. However, because no written job description exists for the Assistant Operator position, the Jury could not confirm or deny whether the qualifications, certifications and responsibilities for this position were being met. In order to completely understand their responsibilities, roles and work schedule, all employees need and deserve to have a written job description. The job descriptions for the two full time staff have not been updated in many years. The job description for the Manager is 24 years old and does not specify important responsibilities such as response time for repairs, professional licenses required by the State, ongoing training and/or continuing education requirements (See Appendix A). When the Secretary/Bookkeeper position was upgraded in 2009, the job title was changed to Controller. The job description (see Appendix A) was modified to clarify that this position includes financial responsibilities and special projects. It also specified that this position reports directly to the BOD. In practice, the Controller continues to report to the Manager, which has been problematical. Personnel Policy Manual Although parts of the Personnel Policy Manual (PPM) have been updated, the Jury found that the BOD has not updated the entire PPM in several years. It does not reflect changes in the law that have occurred since it was first issued. Some topics, such as requiring ethics training for employees, are not included at all. Because the CCSD BOD members do not accept compensation or expense reimbursement, they are not required, according to Government Codes §53232, and §53234 et seq to attend ethics training courses. The training course covers subjects such as conflict of interest and nepotism, both of which are alleged to have occurred in the CCSD. The BOD has the authority to require such training for key CCSD personnel. CCSD records and 4 Board of Directors meeting minutes, June 15, 2011. 2015-16 Santa Barbara County Grand Jury 4 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ personnel interviews indicate that neither the Manager nor the Controller have ever received such training. The Jury recommends that the ethics training be incorporated in the job descriptions for these personnel. An ethics training course that satisfies the legal requirements is available online, at no cost from the California Fair Political Practices Commission5. Policy Enforcement The job of elected directors is to set policy for their agency, and give direction to the staff to carry out the district’s policy. The staff’s job is then to implement the board’s policies and priorities. When a breakdown occurs in this operating process, it is the directors’ responsibility to address the problem. The CCSD PPM, in Section XIV, Disciplinary Actions Against Employees 1, (see Appendix B) sets forth District policy regarding employee discipline. The BOD has not enforced this policy. In particular, according to CCSD meeting minutes in 2013 and again in 2014, an employee was instructed to enforce District policy (Enforcement Policy, Article 10 Section 1-1003, (see Appendix E) with regard to denial of water service to delinquent accounts. The Jury was informed that the employee refused to accept the BOD’s direction in this matter. Instead, the employee ignored the CCSD policy and BOD directions and attempted to address the problem by working out payment plans with the delinquent account holders. The employee in this case did not have the authority to work out individual payment plans with District water customers. The CCSD averages approximately $11,000 in overdue monthly accounts receivable. The BOD did not enforce their PPM policy regarding insubordination. The BOD needs to enforce its written policies and disciplinary procedures. Performance Reviews The Jury determined that full time staff members have never received performance reviews either from the Manager or the Board of Directors, as required by the CCSD’s PPM, Section XXIII (see Appendix B). In addition, the Jury noted that the PPM does not require annual performance reviews for at least two salaried positions. The PPM needs to be updated and all annual performance reviews must be given as required. Personal Use of District Vehicle Employees have approval to use the District vehicle whenever on District business. This includes local trips and travel to Bakersfield and/or Taft, as long as District business is being conducted. However, the Jury has been told that instances have occurred when the District vehicle has been used solely for personal business in violation of CCSD Policy 91-1 (see Appendix E). This Policy allows occasional and incidental use of the District vehicle for personal business while on District business, but does not allow personal use of a CCSD vehicle, solely for personal business. This is also a violation of the PPM, Section XIV Disciplinary Actions Against Employees, 6. Dishonesty or misuse of public property (see Appendix B). The BOD failed to enforce its own policy. All employees should understand and follow the specifics of the CCSD Policy 91-1 Regarding the Use of District Vehicles. 5 http://www.localethics.fppc.ca.gov/login.aspx 2015-16 Santa Barbara County Grand Jury 5 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ Staffing Issues The current Controller has worked at CCSD for 20 years and was promoted into this position from secretary/bookkeeper in 2009. The Controller has many diverse responsibilities. These include providing financial functions and preparing meeting minutes and preparing grant applications. The Controller reports to the BOD on paper only. In reality the Controller reports to the Manager. Difficulties may be caused by the conflict in the structure of the district, whereby the job description instructs the Controller to report to the BOD, but the Controller has been told to report to the Manager. Reporting to two different supervisors can lead to uncertainty in job priorities for the employee. Because of the heavy workload for this position, some important functions have not been kept up to date. For example, minutes from board meetings are not completed and have not been approved by the board in a timely manner. In many instances, they have been several months late. The meeting minutes are far too detailed; which increases workload for the staff and delays their approval. As a result, rather than being a tool the BOD can use as a status reminder during their monthly meetings, minutes approval delays have become a point of continuing controversy. On occasion, the Relief Secretary works in the office so that the Controller can bring the minutes up to date. The Jury recommends that this practice be employed more often. The Manager’s son works as the Assistant Operator although there is no job description for this position. In this capacity he reports to his father. In 2011, a board member resigned over questions involving the proper documentation of time sheets for this position. Hired initially as an hourly worker in 1999, the Assistant Operator was switched to salaried status in 2015 (still without a job description) to address this. It is unusual within a government agency to have a relative work for and report directly to another relative. Despite an employee’s best intentions to serve the community, supervising a relative and the desire to help family members can lead to perceived or actual unethical decisions that may put the agency at financial risk and cause poor employee morale. Concerns of special treatment or perceived special treatment due to nepotism typically preclude such a work arrangement. Most government agencies have policies concerning the issue of relatives working together or supervising each other. The CCSD PPM does not address this issue. The Jury recommends that the CCSD BOD add a policy addressing conflict of interest / nepotism to its PPM. Work Environment A serious board failure discovered by the Jury was that the BOD tolerated a work environment contrary to its own policy to exist. In Section XIV. Disciplinary Actions Against Employees, the CCSD’s PPM states: “A permanent employee may be suspended, demoted, or dismissed for one or more of the following causes: … … 2. Offensive, abusive, or persistent discourteous treatment of the public or fellow 2015-16 Santa Barbara County Grand Jury 6 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ employees.” (See Appendix B) In the opinion of numerous people interviewed by the Jury, raised voices and abusive and hostile language have been used repeatedly at public board meetings and during the work day. Examples of information on this matter from meeting minutes, tape recordings of board meetings, interviews, and BOD resignation letters (see Appendix C) have indicated that the work environment is disruptive and colleagues are disrespectful to each other. When the discussion gets heated, there is an atmosphere of intimidation, voices are raised, and 9-1-1 has been called. The CCSD PPM, Section XIV, 2., has been violated. Unfortunately, the result of this offensive behavior is that board members have resigned. Appendix D provides more opinions of this behavior. The CCSD BOD has not done an adequate job in managing employee relations. The working environment and board meetings can best be described as tense. Board members have observed and were made aware of the working conditions, yet did not take disciplinary action. It is unacceptable that the BOD failed to act on this matter for many years. Most recently at the Board meeting on November 19, 2015, a formal complaint was filed by the Controller concerning the working environment (see Appendix C). At the time this report was written, the Jury was unaware of any resolution. A widely-held belief expressed by Board members was that a strained atmosphere existed between the BOD and an employee. This strained atmosphere has led to the resignation of more than one director (see Appendix C) and may be a contributing factor to CCSD’s difficulty in attracting candidates to fill out the board. This could have a detrimental effect on the smooth operations of a vital community service. Financial Management The CCSD has been successful in applying for and receiving capital improvement grants from State and Federal agencies. This success is due, in large part, to Cuyama’s designation as a severely disadvantaged community6. The median household income in 2009 was $32,999/year. The combined sewage collection and water fees are about $140/month, placing them near the midpoint of fees charged by similar entities countywide. “Similar entities” in this context, are smaller service districts that struggle to provide water or sewer service to a limited customer base. Changes in legislated requirements, certification requirements, and workforce attrition will inevitably affect district finances. The results of an October 2015 independent Water and Wastewater Study7 done by the Rural Community Assistance Corporation and funded by the State Water Resources Control Board and Health and Human Services, determined that the CCSD will need to increase both its water and wastewater rates in order to remain fiscally solvent over the next 5 years. Rate increases are needed to ensure that the CCSD has the ability to obtain sufficient funds to develop, construct, operate, maintain, and manage its water and wastewater systems on a continuing basis, in full compliance with federal, state and local requirements. At a minimum, the rate study recommended a 2% annual inflation rate increase for each utility. An additional 29% increase in 6 RCAC Median Household Income Survey, March 2009 7 CCSD Water and Wastewater Rate Study, October 2015 2015-16 Santa Barbara County Grand Jury 7 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ the base water rate was also recommended. A customer education and information plan needs to be implemented to prepare the customers for the higher bills. The following items are some of the bullet points made in the rate study: “ The ability of the current rate structure to generate adequate revenue will depend on maintaining a vigorous collection and shut-off policy to keep delinquent accounts at a minimum.” “ In order to achieve and maintain long term viability, water and wastewater systems should review rates annually or no less than a minimum of every two years. Keeping track of customer seasonal and annual water demands will help determine operational needs, budget forecasts and rate adjustments.” “ CCSD should begin the process of adjusting rates to the recommended amounts immediately.” The Jury concurs with the study’s recommendations. CCSD Succession Planning The current Manager has worked at CCSD for almost 25 years under a job description written and agreed to in May 1991. He has current Distribution Level 1 and Treatment Level 2 Water Certificates and a Grade 2 Wastewater Treatment Plant Operator’s Certificate from the State of California that allow him to manage both the water and sewer operations. The Manager is responsible for all operational aspects of both the water and wastewater treatment facilities. In other words, he is responsible for keeping the water running and making sure all testing and reporting requirements are met. Except for one occasion in Feb/Mar 2011 when the water to the town was shut down due to a valve problem, all of the people interviewed by the jury indicated that the most important function of the CCSD, keeping the water flowing, has been accomplished successfully. The long-time CCSD Manager has submitted a letter stating his intent to retire February 1, 2016.8 The elected CCSD BOD will need to address the succession issue. Finding a qualified successor, with the appropriate certifications, at a salary level the CCSD can afford, will create a new set of financial issues. Because the outgoing Manager retired from an oil company with a pension and benefits, he has been willing to work for less than the market rate for a person of his qualifications and experience. The community will need to understand the need for service fees increasing to support a compensation package that will attract competent, qualified, and loyal employees. Helpful, professional guides9 are available to aid the BOD in its succession planning. State and County government personnel, grant providers, and private water and sewer experts are known to the BOD and should be consulted. The present Manager has proposed that the Assistant Operator succeed him10. This is not considered a solution because the Assistant Operator does not have the requisite licenses. Public employment decisions should be based solely on merit. Qualifications such as education, 8 At the Board of Directors Meeting on February 1, 2016, attended by Jury members, it was decided that the Manager will remain on staff from February 1 to February 29, 2016 to assist in the transition to his successor. 9 http://www.bcwaternews.com 10 Board of Directors meeting minutes, June 15, 2011. 2015-16 Santa Barbara County Grand Jury 8 ___________CUYAMA COMMUNITY SERVICES DISTRICT__ ___ skills and experience a candidate can bring to the position should be the main criteria for employment. The search for the new manager should be all about finding the best qualified individual to serve the CCSD. The Grand Jury is pleased to note that the CCSD BOD held special meetings beginning in November 2015 and appears to recognize the seriousness of the succession issue. In addition, the Jury notes that the BOD has interviewed several people and may be close to filling the position of Manager for Water/Sewer Operations. In the future, the succession plan should include the position of Controller. Finally, the succession plan should be supported by the current management team to ensure a smooth transition of the District for the good of the community.
Agency Responses 1
Government agencies' official responses to this report's findings and recommendations. Click on a response to see the structured breakdown.