Received September 29, 2021 Oct - 5 2021 W The Honorable Michael Fagalde Mariposa Superior Court Presiding Judge*

YACSD infrastructure is 50 years old and needs to be replaced. The quantity of water the wells were producing was far less than what the district claimed. YACSD BOD response: While the YACSD infrastructure will need replacing and / or remediation, "...the American Water Works Association (AWWA) estimates average life expectancy for AC pipe... [o]n the West Coast...at 65-105 years..." (Stenstedt, 2019, Leveraging AI section.). The YACSD Board has been discussing the depreciation of assets during the prior two budgeting cycles and continues to move towards definitive ways of undertaking a capital improvement plan. The YACSD BOD cannot respond to the allegation that "the [District] wells were underproducing far less than what the District claimed", as the source of this claim is undocumented in the MCCGJ report.

Offers from SilverTip developers that included installing new wells, and infrastructure to provide high quality water were rejected by YACSD BOD. YACSD BOD response: The YACSD BOD evaluated this offer and attempted to enter into discussions with the Developer to move the YACSD wells to Forest Service land and was rebuffed. The YACSD water is pristine and requires no treatment. There is no question that the pristine quality of the water will be degraded by the development. The amount of water that the development is projected to use in one month is as much or more than that used by the YACSD in an entire year. There is no way to assure that deeper wells placed by the developer will not impact water production by YACSD wells.

The YASCD BOD is understaffed. YACSD BOD response: The YACSD BOD agrees that the decline of candidates meeting the residency requirements stipulated in its by-laws and willing to serve is an ongoing challenge. The Honorable Michael Fagalde September 29, 2021

There is a lack of transparency between the board of directors and homeowners, specifically regarding the litigation and proposed settlements with SilverTip developers. YACSD BOD response: The YACSD BOD disagrees. The MCCGJ has based this finding on allegations by unnamed individuals. To our knowledge, the MCCGJ has not solicited testimony from property owners in support of the YACSD BOD, making the finding unbalanced. Allegations are not automatically true.

YACSD Directors have left the district saddled with a $514,000 obligation to repurchase their aging water system from Umpqua Bank. YACSD BOD response: The original loan amount was $355,000. The YACSD BOD already authorized an additional payment of $50,000 towards the principle, reducing the amount of interest owed. Securing water access is one of the Board's main functions. The use of the term "saddled" is inflammatory against the YACSD BOD. The YACSD BOD was only able to guarantee the rights for the YACSD to have future access to water through the court system, and that did require funding. It is important to remember that YACSD BOD members are also YACSD customers, subject to the same water rates and fees as everyone else in the District. Board members themselves literally live with the decisions they make. The characterization that the YACSD "repurchase[d] their aging water system" is false. The YACSD has maintained unbroken ownership of the water system. The YACSD entered into an Installment Purchase contract with Umpqua Bank. Repayment of the loan is by a pledge of future net revenues. The YACSD BOD agrees that the pipeline is closer to the end of its life than the beginning, but the YACSD water tanks are less than 5 years old.

There have been numerous allegations of California Proposition 26, California Proposition 218, Government Code §1090, and Brown Act violations by YACSD Directors, especially in relation to the Conveyance Agreement and Installment Purchase Contract. YACSD BOD response: The YACSD BOD disagrees with this finding, which the MCCGJ based upon anonymous "numerous" allegations. How many are "numerous"? More than two? Allegations are not automatically true. The YACSD BOD provided the MCCGI with the same documentation provided to the public concerning the legality and transparency of transactions.

Ethics training is required every two years in accordance with AB1234. According to the YACSD website, all board members are overdue in attending this mandatory training. YACSD BOD response: All Board members are in compliance (https://yosemitealpinecsd.specialdistrict.org/manditory-ethics-training-certificates).

For fiscal years 2018-2019 and 2019-2020, YACSD is the only entity within Mariposa County on the State Controller's "Failure to File" list for Financial Transactions Report (FTR). YACSD BOD response: This has been completed.

If built as planned, the SilverTip resort would have increased the number of overnight lodging and therefore, the county's TOT. and the second control of the second control of the second control of the second control of the second control of the second control of the second control of the second control of the second control of the second control o The Honorable Michael Fagalde September 29, 2021 YACSD BOD response: The finding implies that the YACSD BOD is responsible for the SilverTip project not proceeding as Mariposa County had hoped. This is perplexing, as the conditional use permit was issued by the Mariposa County Board of Supervisors in 2003. The SilverTip Developer defaulted on his 5.6 million dollar loan in 2010, declared bankruptcy, and the SilverTip property was put up for auction (Grossi, 2011.) That action certainly slowed development. It also called into question the integrity of the Developer to negotiate in good faith with the YACSD BOD. How is it remotely conceivable that this multi-million dollar corporation reached the point of insolvency because of a tiny CSD defending its water rights?

The EIR reports regarding water quality, and quantity found SilverTip wells would be drawing water from a source isolated from YACSD wells. Likewise, according to analysis, treated effluent from Silver Tip would not contaminate YACSD wells. YACSD BOD response: "The amount of water in the rocks surrounding a hard rock well is small. Groundwater levels and the well's yield can decline dramatically during the summers of dry years. (California Department of Water Resources [CDWR], 2011, How Much Water is Stored section)." "Hard rock wells require a source of recharge and a large quantity of water in storage" (CDWR, 2011, How Much Water Will My Well section). Drilling must be done at a very specific point in a major fracture zone containing plenty of water and water must be continually recharged. A neighboring well can interfere with one's well, depending on connections between rock fractures. Interference between neighboring wells is difficult or impossible to predict in advance (CDWR, 2011, How Do I Know I Have section). On of its response, the Central Valley Region California Regional Water Quality Control Board ([RWQCB], 2007) notes that the map presented by the Developer of effluent spray field areas "is not of the scale to definitively show the individual areas and was not intended to indicate that any of the wells on the property would be within the spray field areas." The responsibility of verification that the YACSD wells would not be contaminated by effluent was deferred to a future Title 22 Use Area Management Plan. "Connection of the aquifers is deemed likely" (RWQCB, 2007, , paragraph 2). Degradation of aquifer is "assumed" (RWQCB, 2007, , paragraph 3.) Because of the lack of documentation concerning the construction of the YACSD wells, an adverse impact of treated effluent on those wells was "unlikely" (RWQCB, 2007, , paragraph 4). Groundwater or surface water "should not be unreasonably degraded" (RWQCB, 2007, , Response to comments 13 and 14). "Degradation is allowable if deemed in the best interest of the people of the state (RWQCB, 2007, , Response to comments 13 and 14.) In their Statement of Overriding Considerations the Mariposa County Board of Supervisors found that not all of the project's environmental impacts can be mitigated, but that the project will generate "substantial revenues" (2003, Attachment "C"). Environmental degradation is apparently acceptable, when none of the persons with authority concerning the development plans for the SilverTip project, will have to live with the degradation of their own drinking water. The Honorable Michael Fagalde September 29, 2021

MCCGJ believes there have been Brown Act violations by the YACSD BOD. YACSD BOD response: The YACSD BOD has adhered to the Brown Act. The MCCGJ report has not presented evidence of Brown Act violations.

Comprehensive water testing has not been done since 2002. YACSD BOD response: This is a misleading statement, implying that the YACSD is out of compliance. The MCCGJ report itself affirms that the YACSD is in compliance with water testing regulations (2021, p. 50, paragraph 3.)

YACSD bylaws state that they do not follow the letter of the law. YACSD BOD response: The YACSD bylaws were thoughtfully composed and reviewed by Counsel. Over the past 20 years at least 8 different persons have served on the BOD. Their lengths of service have varied. Some terms have overlapped, and others have not. The notion that this variable group of persons crafted a document to be deceptive with an intent to violate the law is illogical.

YACSD is so small that they are unable to staff all positions, as required by state law. YACSD BOD response: The BOD will investigate contracting with a Manager as a part of the 2022-2023. 2023-2024 budgeting process, which will be completed by June 30, 2022.

The district's bookkeeping, and confidential records are kept on a personal computer. YACSD BOD response: Records are now backed-up to a thumb drive. Additionally, the BOD is investigating cost-effective options for Cloud-based record keeping.

The current District 5 Board Supervisor has never been invited to, nor attended a YACSD BOD meeting. YACSD BOD response: All YACSD BOD meetings are legally-noticed. With the exception of legally-noticed closed sessions, they have always been open to all members of the public. While it is not the responsibility of the YACSD BOD to assure that a member of the Mariposa County Board of Supervisors attends YACSD BOD meetings, a specific invitation to the current supervisor has been given, including placing him on the YACSD email list so that he receives all communications sent to YACSD customers. Response to Recommendations