Sacramento County Grand Jury • 2009-2010

sacgrandjury.org Sacramento County

Published: June 30, 2010 196 pages Consolidated Report
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Findings 8 findings

F1
0 Based on data supplied bycity employees, a consultant’s draft report estimated that the city’s annual cost of potential violations is more than $5 million. The present worth cost of one-time projects and recurring costs over the last three years is in excess of $21 million. The mayor and members of city council received copies of this report in July2008. No action was taken.
F2
0 Once the city manager and the assistant city manager over the Department of Utilities (DOU) learned that there were potential and substantial Proposition 218 violations, theyhad a duty to pursue the issue and determine the existence and extent of any actual violations. Theyfailed their duty.
F3
0 For years DOU has supplied water to cityparks at a reduced rate of only 15 % of the usual rate of providing water to other metered users.11 The grand juryis of the opinion that this is a violation of Proposition 218, which limits fees or charges to ratepayers for property related services. Providing water at reduced rates to the Department of Parks and Recreation (DPR) is not a property related service to ratepayers. The April 2009 agreement between DOU and DPR provides for this violation to be corrected over a 15 year period. The grand juryfinds this timeline to be too lengthy. In Bighorn-Desert View Water Agency(2006), the California Supreme Court held that consumption based rates are “fees” or charges” for property related services and are subject to Propositions 218. 13
F4
0 The cityhas shifted the cost of providing city services from the general fund to the enterprise funds of DOU. The city improperly uses DOU labor and equipment, without reimbursement, to provide services to other city departments, sports facilities and city buildings.
F5
0 Forthe last several years DOU was directed to allocate $1 million to payfor capital improvements related to private economic development projects. The citydropped the allocation from the FY 2010 budget.
F6
0 The grand juryfound a lack of accountability, absence of transparencyand failure of responsibilitybyindividuals who hold positions of public trust in Sacramento City government.
F7
0 On numerous occasions board members have violated the Brown Act and their own regulations regarding public meetings.
F8
0 Without major changes in governance, management, and resource utilization the RLECWD is unable to satisfactorilycorrect its problems and provide high qualitywater utilityservices to its present service area and the remainder of the district area.

Recommendations 8

Conclusions 40