Received Aug 1 4 2018 Arnold Larochelle Mathews Vanconas & Zirbel Llp Ventura County*

988.1937 WWW,ATOZLAW,COM *Certified Specialist, Estate Planning, Trust & Probate Law State Bar of California, Board of Legal Specialization Ventura County Grand Jury August 10, 2018 SUMMARY OF OWCD IMPLEMENTED ACTIONS: In accordance with the R-04 list of eight recommended items that should be added to the existing OWCD internet website, the information identified in Recommendations R-04.1[name, location, contact information and services provided] and R-04.6 [geographic area service] are already on OWCD's website and have been for several years. RECOMMENDATIONS YET TO BE IMPLEMENTED BY OWCD: Recommendations R-01 [public outreach regarding possible OWCD board service], R-02 [discontinue practice, if any, appointing new board members a few months prior to a scheduled election], R-03 [publish compensation details], R-04.2 [governance structure, including governing board election information and the process for running for a board seat], R-04.3 [compensation details], R-04.7 [most recent Municipal Service Review and annual financial report supplied to State Controller or alternatively a link to the State Controller's website] and R-04.8 [link to the Ventura County Local Agency Formation Commission] will be implemented within the next 90- 120 days because they involve additional consideration and action by the OWCD Board and staff. Regarding Recommendations R-04.4 and R-04.5, please know that OWCD is a water conservation district formed and authorized pursuant Water Code §§74000 to 76501. OWCD thus has the statutory authority to generate revenue through groundwater charges, to raise revenue through bonds and assessments and to accumulate such funds in reserve for district programs and activities consistent with its statutory charter. OWCD, however, has not and does not undertake any large-scale surface water or groundwater projects or initiatives that would necessitate raising large amounts of working revenue and capital. Instead, OWCD mainly focuses its attention on ensuring that any surface water flows are properly diverted into the settling ponds along San Antonio Creek for Ojai Valley Groundwater Basin recharge. Therefore, OWCD does not maintain a reserve fund which would necessitate a detailed reserve fund policies and procedure as advocated by the Final Report. OWCD's main source of revenue is a nominal annual charge on the County Property Tax Bill for those parcel owners in the OWCD jurisdiction. This revenue or income amount is reported to the OWCD Board of Directors monthly. As of July 13, 2018, the OWCD balance of funds equaled $30,477.75. OWCD Board of Directors will consider asking the Grand Jury if there is a de minimis exception to these two Recommendations given OWCD's particular position. OWCD reserves the right to return to the Grand Jury if it finds that one or more of these recommendations should not be implemented because they are not warranted or not reasonable. Ventura County Grand Jury August 10, 2018 Grand Jury 800 South Victoria Avenue Ventura, CA 93009 county of ventura (805) 477-1600 Fax: (805) 658-4523 grandjury.countyofventura.org Response to Grand Jury Report Form Report Title: Independent Special Districts Report Date: April 26, 2018 OWDC Board Chairperson Title: Response by: Jim Finch FINDINGS / CONCLUSIONS C-04 I (we) agree with the findings / conclusions numbered: I (we) disagree wholly or partially with the Findings / Conclusions numbered: C-01 (Attach a statement specifying any portions of the Findings / Conclusions that are disputed; include an explanation of the reasons.) RECOMMENDATIONS Recommendations numbered R-04.1, R-04.6 have been implemented. (Attach a summary describing the implemented actions and date completed.) R-04.2, R-04.7 and R-04.8 Recommendations number R-01, R-02, R-03, have not yet been implemented, but will be implemented in the future. (Attach a time frame for the implementation.) Recommendations numbered R-04.4, R-04.5 require further analysis. will not be implemented because they are Recommendations numbered not warranted or are not reasonable. Signed: Date: Number of pages attached: