Mystic Mine Road Community Services District Dysfunctional District

Upon review of the District's By-Laws, the Jury detennined there has been no progress in updating them since the report by the 20 12-2013 Jury Disagree The Board reviewed and revised the By-Laws in January and February, and the new By-Laws were approved by the Board and posted March 25,2014.

Alternate audit procedures allowed in §26909(a)(S) ofthe California Government Code may help reduce costs of regular audits. Agree

The District did not properly report to the Jury when asked about the fund balance held by the office of the Nevada County Auditor-Controller Agree

The District is remiss in its duty to use a competitive bidding process to attempt to control maintenance and repair costs. Thus, the District does not have a way of knowing whether they are getting fair value for their money. Partially Disagree The District has a long history of using competitive bidding for maintenance and repair work. It bas also used multi-year contracts in order to be cost-effective. However, over the past two years the District has been lax in consistently obtaining bids. It has relied on a handful of proven contractors instead of bidding every road maintenance job. Recommenda tions