Working Title 1: Working Title 2 (Case No. xx20) The Eastern San Joaquin Groundwater Authority: a Rubik’s Cube of Water

2.1 The Eastern San Joaquin Groundwater Authority has provided no public information events on the status of the adoption and implementation of the Groundwater Sustainability Plan since July 2021, leaving the public largely unaware of what the Eastern San Joaquin Groundwater Authority is doing regarding groundwater sustainability and the associated effects and costs of Groundwater Sustainability Plan implementation.

1.1 The Memorandum of Agreement with Cal Water benefits the County and its taxpayers by reducing the cost allocation paid by the County and incorporates Cal Water’s expertise and support into the Groundwater Sustainability Plan development and implementation.

3.1 The minutes of Board and Steering Committee meetings are difficult to locate on the Eastern San Joaquin Groundwater Authority website and sometimes are not posted for months or at all, resulting in frustration for interested parties and a lack of transparency.

1 San Joaquin County and Cal Water allowed their Memorandum of Agreement to automatically terminate in December 2021 and failed to renew it until November 2022, which undermines public confidence in the County’s governance and due diligence in tracking all legal agreements.

San Joaquin County and Cal Water allowed their Memorandum of Agreement to automatically terminate in December 2021 and failed to renew it until November 2022, which undermines public confidence in the County’s governance and due diligence in tracking all legal agreements.

The Eastern San Joaquin Groundwater Authority has insufficient staff support, which negatively impacts its ability to operate efficiently and can result in staff burnout and possible administrative delays and errors.

The Eastern San Joaquin Groundwater Authority has provided no public information events on the status of the adoption and implementation of the Groundwater Sustainability Plan since July 2021, leaving the public largely unaware of what the Eastern San Joaquin Groundwater Authority is doing regarding groundwater sustainability and the associated effects and costs of Groundwater Sustainability Plan implementation.

The Eastern San Joaquin Groundwater Authority developed but never formally approved or adopted an engagement and public outreach plan, and although the Department of Water Resources is now funding a consultant firm to work with the Board of Directors to develop one, public communications and engagement efforts so far have been limited and ineffective.

The Eastern San Joaquin Groundwater Authority’s efforts to identify and engage with people who are members of disadvantaged communities have been limited, potentially excluding members of these communities from learning about and having a voice in groundwater sustainability plans.

Informational materials used to communicate with and inform residents of the subbasin have been in English and Spanish only, thus leaving subbasin residents who speak and read other languages potentially uninformed about the Eastern San Joaquin Groundwater Authority and its activities.

The Memorandum of Agreement with Cal Water benefits the County and its taxpayers by reducing the cost allocation paid by the County and incorporates Cal Water’s expertise and support into the Groundwater Sustainability Plan development and implementation.

Zone 2 property fees are collected by the County within the Cal Water‐County GSA boundaries. Therefore, it is reasonable and equitable that Cal Water‐County GSA receives the same reduction to its member cost allocation as all other County Groundwater Sustainability Agencies to reflect the property fees paid into the Zone 2 fund. 2.2 Transparency and Ease of Access to Financial Information During its investigation, the Grand Jury requested, received, and reviewed the following financial data: Zone 2 Fund Reports (2016‐2022), ESJGWA Fund Reports (2018‐2022), Countywide annual audits (2014‐2021), Chart of Accounts, Vendor Payments (2015‐2022), ESJGWA and Zone 2 projected and actual budgets, and annual County proposed budget reports prepared for the Board of Supervisors. In addition, Grand Jury members reviewed the County’s OpenGov Financial Data Transparency Portal. The Grand Jury also heard testimony from County officials familiar with ESJGWA financial processes. The San Joaquin County Public Works Department provides accounting services for the ESJGWA and develops budgets for approval by the ESJGWA Board and the County Board of Supervisors (JPA, Article 4.10). The Grand Jury found the annual proposed budgets on the County Administrator’s Office (CAO) Budget public website to be an excellent overview of both Zone 2 and ESJGWA origination, purpose, and fiscal year planning. Revenues collected for Zone 2 and the ESJGWA are held separately in the County Treasury (JPA, Article 5.7). The Zone 2 fund is not audited separately from the District, and the County Auditor‐Controller’s Office does not prepare a separate financial statement. The Flood Control & Water Conservation District posts on its website the annual Engineer’s reports for the beneficial use Zones 9 and 10. These reports include services provided, the budget to provide the services, and the criteria. However, according to witness testimony, the District does not post an annual report for Zone 2 accountability. ESJGWA is audited annually in accordance with JPA Article 5.8 and is included in the “County of San Joaquin, California” annual audit, which is conducted by an independent auditor. Within this audit, the ESJGWA is labeled a “Nonmajor Special District Governed by the Board of Supervisors.” Audits reviewed by the Grand Jury from 2014 to 2021 include ESJGWA from 2017 on, with a brief description of “Eastern San Joaquin Groundwater Authority… established in 2017.” However, from 2018 to 2021, the balance sheet column heading lists the ESJGWA as the “Eastern San Joaquin Ground Water Banking Authority,” which is a different agency established prior to the ESJGWA, and which terminated in 2022. A review of preceding audits does not include any Eastern San Joaquin authorities. The Grand Jury also received ESJGWA fund reports (labeled “21451”) from the Auditor‐Controller’s Office and compared fund balances. The Grand Jury noted that year‐end balances between the audits and the fund reports differ, as summarized in Table 1. Table 1. Differences Between County Audited Year‐End Balances and the 21451 Fund Report Audit Combining Balance Sheet 2022 2021 2020 2019 2018 – 386,618 (641,657) (483,152) 474,139 Audit Combining Statement of Revenues, Expenditures – 369,813 (641,657) (483,152) 275,982 ESJGWA 21451 Fund Report 2022 2021 2020 2019 2018 370,409 380,025 (553,577) (328,783) 442,117 Neither the County nor ESJGWA provides easy access to ESJGWA financial information. The County’s OpenGov Financial Data Transparency Portal can be utilized to examine how Zone 2 funds are used, but the Grand Jury found it very difficult to locate and access this information. The Zone 2 budget link leads to a page with only minimal information. More information regarding Zone 2 and projects is available elsewhere on the District’s website, but it is difficult to find that information. Similarly, the ESJGWA’s website does not provide a convenient link to ESJGWA budgets or financial information. That information can only be found by searching through agenda meeting packets of the Board and the Steering Committee. Even so, budget information presented at a meeting might not be included in the packets. For example, on February 8, 2023, the Steering Committee considered a draft budget proposal, but the proposal was not included in the meeting packet available to the public. The Grand Jury requested and received a copy of the proposed budget presentation, but it was not clear how the public would know to request that information. Findings

Important Eastern San Joaquin Groundwater Authority financial information is not readily available on the Eastern San Joaquin Groundwater Authority website, effectively depriving the public access to this information.

Important Zone 2 financial information is not readily available on the San Joaquin County Flood Control & Water Conservation District’s website, therefore does not meet the public’s need for transparency.

The Eastern San Joaquin Groundwater Authority is included in the annual San Joaquin County independent audit, but the audited fund balance differs from the fund balance report, calling into question the data included in the reported financials.

The independent auditor lists and discusses the Eastern San Joaquin Groundwater Authority in the “Summary of Significant Accounting Policies.” The balance sheet column heading listing the previous Ground Water Banking Authority (GBA) is incorrect, lessening public confidence in the audit. 24

The Eastern San Joaquin Groundwater Authority website does not provide the State‐ required Financial Transaction Report or a link to the State Controller’s website, which decreases transparency.

The Eastern San Joaquin Groundwater Authority website does not list the Board compensation report or a link to the State Controller’s website, reducing transparency.

The Eastern San Joaquin Groundwater Authority website does not provide an Enterprise System Catalog, which violates public records and transparency reporting requirements.

The Eastern San Joaquin Groundwater Authority website does not meet the accessibility requirements established by Government Code Section 7405, which could make it difficult for 26 some members of the public to access the site and could expose the Eastern San Joaquin Groundwater Authority to legal action.

The Eastern San Joaquin Groundwater Authority website is not updated in a timely manner, causing frustration for site visitors and the appearance of a lack of transparency.

The Eastern San Joaquin Groundwater Authority Board routinely holds its meetings at times that differ from those stated in its Bylaws and on its website. Together with cancellations and a reduction in the number of Board meetings, this creates confusion and reduces opportunities for public engagement.

The Eastern San Joaquin Groundwater Authority Technical Advisory Committee is a de facto standing committee but does not follow noticing and transparency requirements for its meetings, violating the Brown Act and giving the public no insight or input into its activities.

The Eastern San Joaquin Groundwater Authority does not identify the individuals who serve on the Board of Directors on either its website or its agendas, making it difficult for the public to ascertain who governs the Eastern San Joaquin Groundwater Authority and who from each Groundwater Sustainability Agency sits on their Board.

The minutes of Board and Steering Committee meetings are difficult to locate on the Eastern San Joaquin Groundwater Authority website and sometimes are not posted for months or at all, resulting in frustration for interested parties and a lack of transparency.