Response to Grand Jury Report Del Paso Manor Water District

R1

The DPMWD should publish and distribute a district-wide report, to meet its public transparency obligations, disclosing the extent of the District's immediate and longer-term water quality, delivery, and fire flow infrastructure improvement needs, and the resulting cost impact to water district ratepayers. This report should be the subject of a Special Board Meeting as well. The Grand Jury recommends that this work should begin immediately and be completed Response to R 1. This recommendation will be implemented, as proposed. Del Paso Manor Water District's ("DPMWD" or "the District") new Board of Directors and General Manager have been working on this Recommendation and will fully comply with it. For example, by the end of November 2021, DPMWD repaired or resolved almost all of the items on the list of maintenance and safety concerns prepared by Sacramento Suburban Water District ("SSWD") in summer 2020. DPMWD also made an agreement with SSWD on December 10, 2021 to automate all three tie-ins to their water system. This means water can flow either direction automatically, based on the system's pressures or needs, and increase fire flow on the west, north, and east sides of the District. It is expected that the automation of the interties will be completed by SSWD sometime in spring 2022. Additionally, DPMWD is refurbishing Well Nos. 2 and 4, and intends to update Well No. 7 so it can be used fulltime instead of for just fire flow or excess demand. The District is further investigating options to remove Well No. 3 from standby. Standby means it will only be used for emergencies like fire. District staff has determined that this well could be used with full safety if two activated carbon filters are used, because activated carbon removes the contaminants. The activated carbon in the filters will need to be renewed approximately every five years. DPMWD is seeking a grant or other financing (Prop. 218 rate increase) because the steel-encased filters are expensive, and DPMWD does not presently have the funds to restore the well to full use. The work identified in the 2009 Master Plan and later addressed in the Draft HydroScience Strategic Water Solutions ("HydroScience") Technical Memorandum, dated May 26, 2021 ("Technical Memorandum" or "Memorandum") will also need to be prioritized by the Board of Directors and implemented, based on acute needs. To fund these improvements, the District will need to conduct a Proposition 218 rate hearing and raise rates. The District further anticipates that a completed report disclosing the extent of the District's immediate and longer-term water quality, delivery, and fire flow infrastructure improvement needs will be available to the public no later than May 2022. Following that, the District will retain a professional consultant to assist with the Proposition 218 process. 2167065.6 14685-004 1

R2

The DPMWD should address the findings and recommendations of the May 2021 HydroScience Strategic Water Solutions Technical Memorandum, originally authorized by the DPMWD as a Proposed Update to its 2009 Water District Master Plan; formal public involvement should be documented to meet the requirements of the Brown Act. This process should begin immediately and be completed Response to R 2. This recommendation has been implemented. On December 10, 2021, DPMWD held a special meeting and open to the public (see Exhibit 5) to discuss the conclusions and recommendations of the Draft Technical Memorandum, attached hereto as Exhibit 6. HydroScience staff was in attendance to respond to questions and provide explanations for the information in the Draft Technical Memorandum. The following conclusions and direction were made at that meeting: 1.(cid:3) HydroScience staff underscored that the Draft Technical Memorandum is intended to supplement, not supplant or override, any conclusions or recommendations included in the 2009 Master Plan. The information in the Memorandum merely updates certain information in the 2009 Master Plan using the limited data that was provided to HydroScience at the time it was awarded the contract for its services. HydroScience was never provided surface water surveys or condition assessments of any of the District's wells, and the firm was given incomplete flow data. The limited data restricted the level of detail and analysis HydroScience could offer in the Memorandum. 2.(cid:3) HydroScience staff suggested that preparing a conditions assessment of the District's wells would be especially beneficial. The General Manager confirmed that video surveys are scheduled for certain wells and additional evaluations are being scheduled for other wells. 3.(cid:3) In response to questions from the Board regarding Table 1-1 of the Draft Memorandum, HydroScience staff explained a.) Project Priority No. 1 "Pipe Replacement Projects 2-10" is recommended in order to achieve the required flow for the District's existing fire hydrants; and b.) Project Priority No. 5 "Install 15 Additional Fire Hydrants" is recommended to reduce the distance between the District's fire hydrants. Standards typically set by the Fire Marshal dictate that fire hydrants should be no more than 500 feet apart. The installation of an additional 15 fire hydrants would ensure compliance with that standard. 4.(cid:3) The Board of Directors requested that HydroScience recalculate and confirm the total amount of water delivered to residential and commercial/industrial/institutional customers in Section 1.2 "Water Demands and Planning Criteria." 5.(cid:3) The Board of Directors requested that HydroScience deliver the hydraulic modelling files used in preparation of the Memorandum to the District. 6.(cid:3) Upon recommendation of the General Manager, the Board of Directors agreed that the Draft Technical Memorandum could potentially be used to support an anticipated Proposition 218 2167065.6 14685-004 2 rate-setting proceeding if it was revised to include discussion on the following items: a.) residential backyard mains; b.) surface water; and c.) size and position of a plume under Well No. 8. HydroScience agreed to provide these modifications to the Memorandum. 7.(cid:3) The Board of Directors agreed that the General Manager should provide HydroScience with any additional information or existing reports that would aid the firm in completing the requested Memorandum modifications. 8.(cid:3) The Board of Directors agreed that the future District Engineer, after appointed following the RFP process, should review and evaluate the modified Draft Technical Memorandum to further inform DPMWD's future decisions related to the Memorandum's findings and recommendations.

R3

A Municipal Service Review should be performed by LAFCO to study and analyze information about the Water District's governance structures and efficiencies. The Grand Jury also recommends that DPMWD fully cooperate with LAFCO to initiate this process by January 31, 2022 for completion of a new Municipal Service Review by June 30, 2022. Response to R3. This recommendation will be implemented as proposed. DPMWD discussed conducting a new Municipal Service Review ("MSR") with the Executive Director of LAFCO, and respectfully requests an extended timeline to implement the Recommendation as proposed. LAFCO submitted a response to the Grand Jury Report on December 1, 2021, including Recommendation 3, requesting the same extension. A copy of that letter is attached as Exhibit 7. Given the new Board of Directors, new General Manager, and new legal counsel, the number of initiatives already underway to improve the condition of Well Nos. 2, 4, and 7, DPMWD suggested that the MSR be delayed for at least six months to allow the new team to execute these important improvements.

R4

The DPMWD should notify ratepayers in the required timeframe for any Notice of Violation, including when a water sampling test result exceeds the water Maximum Contaminant Level, along with its corrective actions. The DPMWD Board of Directors and staff should be trained on the public notification requirements and procedures. A new section in the DPMWD Policy Manual should be added to address these public notification requirements. The Grand Jury recommends that the DPMWD complete this training by January 31, 2022, and the Policy Manual should be updated accordingly by March 31, 2022. Response to R4. This recommendation will be implemented as proposed. DPMWD has a "Water Quality Emergency Notification Plan" posted in the office and maintained for many years. It will be updated on or before March 31, 2022. The notification requirement is based on the tier of the violation. For example, even a minor coliform violation can have a 30-day notice requirement, while another violation could have a 15-day requirement. 2167065.6 14685-004 3 The District has an existing Emergency Response Plan, last updated on July 6, 2017. Since only 618 out of a little less than 1,800 customers agreed to provide their emails and/or telephone numbers for emergency contacting, the first notification of an important issue is by bullhorn driving through the DPMWD boundaries. The entire District can now be covered in under an hour. The process is then repeated. Over the years, this has proven to be an efficient and effective means of urgent communication. DPMWD can then use paper notices and/or door hangers to either supplement the bullhorn, or as actual notice for less urgent issues. While DPMWD does not presently have a mechanism for communicating with individual ratepayers without making one-on-one calls, DPMWD will look into systems that would allow this to occur for emergency communications. For example, it will contact Sacramento County and SSWD to see if there are opportunities for the District to utilize their communication channels for emergency communications. The General Manager conducted a training for Directors and staff at a duly noticed special meeting on January 27, 2022 that included guidance on public notification for these emergency notices and other information that is publicly disseminated. DPMWD will review and update its process and make any appropriate changes to the Policy Manuel

R5

The DPMWD should prepare its 2021 Consumer Confidence Report and all subsequent annual reports to fully comply with the requirements issued by the State of California. The DPMWD should request that its draft 2021 Consumer Confidence Report be reviewed by DDW to ensure that it meets all of the State requirements before its final release. The review of this draft public document should be completed in May 2022. Response to R5. This recommendation will be implemented as proposed. The District has historically retained a consultant to assist with its Consumer Confidence Report. The District will commit to retaining a professional consultant to again assist with the preparation and submission of its 2021 Consumer Confidence Report to ensure compliance before submitting the report for Division of Drinking Water review.

R6

The DPMWD board meeting agendas and minutes should be reviewed by their legal counsel to ensure that the documents have clear and unambiguous descriptions. The Grand Jury recommends that reviews begin immediately and continue for every meeting. Response to R6. This recommendation will be implemented for the foreseeable future, and until such time that staff is adequately prepared and trained to draft and review meeting agendas and minutes. Until his resignation in or about November 2019, DPMWD meeting agendas and minutes were reviewed and approved by long-term counsel, Adam Brown. There is no indication that the agendas or minutes during his long service to DPMWD were deficient or failed to comply with the Brown Act. 2167065.6 14685-004 4 Subsequent to Mr. Brown's resignation, the law firm of White Brenner served as general counsel. Barbara Brenner of that firm was responsible for the review of and approval of meeting agendas and minutes. At its November 18, 2021 meeting, the Board of Directors approved a legal services contract with Kronick, Moskovitz, Tiedemann & Girard ("Kronick") to serve as DPMWD's General Counsel. During the very brief period before the termination of White Brenner and retention of Kronick, the agendas were reviewed by Regional Government Services. The agendas and minutes of the meetings are now reviewed by counsel again. The District's new counsel has created agenda and staff report templates for staff use. These templates require sufficient description to provide the public with actual notice of each agenda item and demonstrate a marked improvement from the District's past practices. The District anticipates that counsel will continue to review the agendas and minutes for the foreseeable future, but reserves the right to have staff shoulder this responsibility once there is confidence in their ability to do so, and in order to preserve District resources and conserve costs.

R7

The DPMWD board members and staff should attend annual and detailed Brown Act training sessions with an emphasis on developing unambiguous agenda descriptions. That Brown Act training could include participation in the California Special District Association's Certificate of Excellence Program for District Transparency. The Grand Jury recommends that the Board of Directors conduct its first training session by January 31, 2022, particularly as more than half of the Board members are new. Response to R7. This recommendation will be implemented, as described below. DPMWD will endeavor to have each Director participate in CSDA's Certificate of Excellence Program for District Transparency; however, the program takes three years of compliance with the requirements to earn the certificate, therefore this will be an ongoing effort. Prior to 2019, the previous Board of Directors and General Manager had nearly completed all requirements for the Certificate; however, DPMWD's participation was terminated by the 2019 Board of Directors and management. DPMWD must now start over. Brown Act training for all Directors and staff was conducted by the General Counsel on January 27, 2022 at a duly notice special meeting. As part of its bi-annual ethics training, Board members will also receive supplemental training on the Brown Act when they obtain their AB 1234 certificate.