Sacramento County Grand Jury • 2009-2010 • Agency Response

San Juan Water District Response to Findings and Recomemndations

Published: August 18, 2010 5 pages
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Findings and Recommendations 5 findings

F1 Page 1
through 5, and their associated recommendations. Attached please find San Juan Water District’s responses to findings and
Related Recommendations (1)
R1
Page 2
1 Directors should review their by-laws every four years to assure compliance with applicable laws, ethical practices, and appropriate behavior. Response: The District has adopted general District policies that include requirements related to ethical and appropriate behavior, as well as Board Rules for Proceedings. The District periodically reviews and revises the policies. The District will revise the policies to include a review every four years, starting with 2011.
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0 Some ISDs grant monetary awards for education and training; many have inadequate evaluation of employees’ degrees and certificates.
Related Recommendations (1)
R2
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1 All ISDs should encourage education and training, but should not make direct monetary (cash) awards for educational achievement. Response: The District has a policy to provide training opportunities for District employees so that job openings can be filled from within, whenever possible. The District does not provide direct cash awards for educational achievement. The District does provide for promotions and merit increases as appropriate for educational achievement and certifications.
F3 Page 3
0 ISD pension awards and Other Post Employment Benefits (OPEB) have increased markedly in the last decade. Some of these awards are unfair and unsustainable.
Related Recommendations (1)
R3
Page 3
1 All ISDs should adopt pension and OPEB plans that are fair, affordable and sustainable. Response: The District has a two-tiered pension and two-tiered OPEB plan. The District’s first tier includes: • 3% at 60 PERS retirement plan based on the highest year compensation • five-year vesting schedule for health benefits after retirement (the only OPEB provided by the District) The second tier, adopted in 2009, includes: • 3% at 60 PERS retirement plan based on 36 month average compensation • A 10 to 20-year ramped vesting for health benefits after retirement (the only OPEB provided by the District) The District is funding its actuarial required contribution each year to fully fund the OPEB liability within 20 years.
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0 The majority of the ISDs surveyed in this study are neglecting their fiduciary responsibility to taxpayers and ratepayers by excessive use of no-bid purchasing.
Related Recommendations (1)
R4
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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. Response: The District, as a community services district, is required to bid all purchases greater than $15,000, unless special conditions exist. The District follows this requirement in the vast majority of purchasing. When a specific requirement exists, such as existing equipment, the District is careful to have open communication and discussions during open session at a regularly scheduled board meeting and state the exact reasoning behind any negotiated purchasing.
F5 Page 4
0 ISDs have not consistently conducted and reported required Independent Financial Audit Reports and management audits.
Related Recommendations (1)
R5
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1 All ISDs must complete and file the required annual Independent Financial audit. Response: The District hires an independent auditor to conduct the required annual independent financial audit. The District files the annual audits with the State Controller and the County of Sacramento and the County of Placer.