water Districts: a New Era in Public Involvement*

Water Districts' procedures for the selection of professional consultants' contracts are somewhat lax and in some instances non-existent, thereby creating a perception of bias in the selection of candidates, especially in the selection of board members from other member agencies to provide professional services. YLWD disagrees with this Finding YLWD has a resolution (Resolution No. 07-11) in place for the acquisition and procurement of goods and services. Section 4 of the resolution clearly defines procedures for engaging professional and non-professional services and contracts, including but not limited to legal services, engineering consultants and auditors. The policy establishes four approval stages, which define authorization levels and the quantity of competitive bids or quotes required for the selection process. While this 1717 E. Miraloma Avenue Placentia, CA 92870 714-701-3000 714-701-3058 Fax سئ resolution was adopted in 2007, it is YLWD's intent to review, update and revise the policy with the assistance of the agency's financial auditor by November 2009.

Some board members are conducting their professional practices with member agencies and use their elected positions to promote their competitiveness. YLWD disagrees with this Finding While board members of YLWD are employed in the private sector, their activities and business relationships are not areas of concern for YLWD. Board members of YLWD generally err on the side of caution by recusing themselves from participating in discussions or abstaining from voting on action items or approving payment warrants if a direct or perceived conflict of interest potentially exists.

Codes of ethics among districts are quite varied. Some are very comprehensive and some do not exist other than to reference state law. YLWD agrees with this Finding Each public agency is required to adopt a conflict-of-interest policy as required by the State and compliance established by the Orange County Board of Supervisors. An agency may optionally adopt an ethics policy above and beyond what is legally required. YLWD adopted a revised conflict-of-interest policy in July 2009 as requested and recommended by the Orange County Board of Supervisors. YLWD is in the process of developing and implementing a comprehensive and detailed ethics policy as a supplement to the conflict-of-interest policy. This effort should be completed with adoption anticipated by February 2010.

Water board meetings are frequently scheduled for times that discourage public attendance. YLWD disagrees with this Finding Public attendance and participation is encouraged by YLWD. While YLWD regular board meetings are generally held the 2nd and 4th Thursday of every month at 8:30 a.m., YLWD has conducted, and continues to conduct evening meetings in cases where an increase of public attendance is anticipated. For example, following the Freeway Complex Fire event in 2008, YLWD conducted evening board meetings for seven months due to the temporary increase of public attendance. Soon thereafter, attendance subsided and board meetings reverted to mornings. Additionally, in September 2009, a public hearing for a general water rate increase has been set for an evening meeting due to an anticipated increased attendance. Every community is unique and diverse with their various issues and should be addressed and YLWD believes that low public attendance at board acknowledged accordingly. meetings sends the message of that the public is content with the day-to-day management of the agency. On occasion, however, issues or events arise that require YLWD to recognize those events as "the exception to the rule" and accommodate those events accordingly. It should also be noted that meetings not held during normal District business hours may result in additional overtime labor costs for non-exempt District staff.

An unusually high percentage of water board directors were originally appointed, not elected to their position. YLWD disagrees partially with this Finding The appointment process is in place to resolve vacancy issues that unexpectedly occur on a governing board and to avoid a costly special election, which is estimated to range between $165,000 and $186,000 for YLWD according to the Orange County Registrar of Voters. The Grand Jury report viewed appointments for some agencies as "managing the process". YLWD disagrees with this characterization. If a board member is replaced by means of the appointment process, it is the very same political body, elected by the people, that makes the appointment. Board members are elected by the people to represent and make decisions on their behalf with respect to agency business. The election process provides an opportunity for the people to retain or to elect another candidate to replace the appointed representative during a following election. Furthermore, the election process also provides an opportunity to elect another candidate other than the board members who made the initial appointment of another board member. And finally, the system also allows and provides for a recall election of any board member prior to a general election if the residents are unhappy with any or all of their representatives. Since 1958, 25 elections have taken place. Of the 20 board members who have served since 1958, nine were appointed.

Some board members hold multiple elected positions that under certain circumstances could create an appearance of a conflict of interest unless the person recuses himself on an issue-by-issue basis. YLWD agrees partially with this Finding While no board member of YLWD holds multiple elected positions, YLWD agrees that the appearance and perception of a conflict may exist if multiple elected offices were held. It is in this aspect that YLWD agrees with the Finding. In February 2010, YLWD will be adopting and implementing an ethics policy that will address, among other items the holding of multiple offices and the potential incompatibilities thereof.

There are no time limits for how long individuals can serve on any water district board in Orange County. YLWD agrees with this Finding There are no term limits in existence for YLWD board members. Generally, if the public is content with their elected representatives and the manner in which the agency is managed, board members are typically re-elected by their constituents or are un- opposed during the election process. During the 25 elections since 1958, six did not occur for YLWD since the board members subject to re-election were un-opposed. As a result, these same board members were re-appointed to the Board for another term. Recommendations The following are YLWD's responses to the Grand Jury Recommendations R.1 – R.6: