Palo Verde Resource Conservation District

The McCoy Wash Flood Improvement District (McCoy Improvement) was established in December 1987 as part of PVRCD. On December 9, 1991, the district was split into two separate special districts by resolution of the PVRCD board of directors without obtaining the approval of LAFCO. This was done to accommodate McCoy Flood Control District (McCoy District) to establish the power to assess Blythe citizens within McCoy Wash area for construction of the dam. Arrangements were established with the County to collect these funds. The PVRCD does not have the authority to establish the McCoy District as a special district. The PVRCD, under provision of Division 9 of the California Public Resources Code, does have the authority to form an improvement district for constructing, both in or for the improvement district, one or more flood prevention improvements, including structural and land treatment measures. The PVRCD resolution reads as follows: RESOLUTION OF THE BOARD OF DIRECTORS OF PALO VERDE RESOURCE CONSERVATION DISTRICT Whereas Palo Verde Resource Conservation District (PVRCD) has sponsored the creation of the McCoy Wash Flood Control District (McCoy), and furthermore that McCoy is now a separate Special District with a directorship concurrent to that of PVRCD and furthermore, that McCoy receives property tax revenues that are for the sole benefit of McCoy. Herewith be it resolved the Riverside County Auditor-Controller’s Office is requested to establish a Trust type “fund” for McCoy (request attached) for the purpose of properly segregating McCoy revenues and expenses from those of PVRCD. This document was signed by the President and Secretary/Treasurer, who are also the current President and Secretary/Treasurer.

The PVRCD has not submitted an audited financial statement to the Controller or the County Auditor-Controller’s office since 2007. Government Code §26909 requires a financial report be filed annually with the Controller and with the County Auditor-Controller within 12 months of the fiscal year. The PVRCD has received a letter of non-compliance from the County Auditor-Controller’s office giving the district until December 21, 2015, to comply. To date the PVRCD has ignored the County Auditor- Controller’s request. 3

The duties of the PVRCD board of directors have been performed in an inconsistent manner. The PVRCD Secretary/Treasurer stated: The Supervisors have the ability to provide significant relief, contingent on moving all funds into the “county financial system,’ and gaining Supervisors” approval. This action would remove us from AUDIT to REVIEW status. The PVRCD has not in the past nine years requested this action. The California Association of Resource Conservation Districts and various list servers are used to find potential funding sources. The PVRCD had chosen not to perform any service that could provide an income to the district such as requesting grants and loans from both state and federal sources. They had not requested assistance from the California Department of Conservation, Division of Land Resource Protection, RCD Assistance Program. They have no policies and procedures in place, do not have a budget, and they do not have regularly scheduled meetings. The directors have the ultimate fiscal responsibility for the district’s financial management.

Documents provided by the board of PVRCD have shown evidence of incompatibility of office, pursuant to California Government Code §1099(a) which states: A public officer, including, but not limited to, an appointed or elected member of a governmental board, commission, committee, or other body, shall not simultaneously hold two public offices that are incompatible. California Government Code §1099 says that offices are incompatible when any of the following circumstances are present: