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Extracted from Consolidated Report
This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.
Tulare County Grand Jury
• 2019-2020
TTuullaarree CCoouunnttyy CCiivviill GGrraanndd JJuurryy FFiinnaall RReeppoorrtt 22001199--22002200 Facts: 1. Tulare
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings 6 findings
F1
Page 26
The PMD has written policies and procedures in place for the acquisition and disposition of real estate.
F2
Page 26
The PMD maintains a database of Tulare County properties that are: • owner/occupied properties • properties occupied as a tenant • properties leased out as a landlord
F3
Page 26
There is a process, which requires the Tulare County Board of Supervisors’ approval, for the sale, purchase and lease of real estate. Many of the procedures are dictated by the State of California.
F4
Page 26
The PMD follows a process to retain the services of a real estate brokerage firm on an exclusive basis to represent them in the acquisition and disposition of real estate. The brokerage firm is retained for one year, with the option to extend the contract for another year. TTuullaarree CCoouunnttyy CCiivviill GGrraanndd JJuurryy FFiinnaall RReeppoorrtt 22001199--22002200
F5
Page 27
The PMD’s website is outdated and lacking basic information such as: key people, available properties, forms and current Requests for Proposal. RECOMMENDTIONS:
F6
Page 29
GCSD has a process to add delinquent accounts to property tax rolls for collection. FINDINGS: F1. Only 2 properties have been foreclosed upon by LTRID and PID in the last 25 years. F2. The legal process required to foreclose on delinquent accounts adds an administrative burden to LTRID and PID. F3. 85% of GCSD’s accounts are paid prior to going on the tax rolls. F4. The lack of cash flow due to delinquent accounts has created annual operational problems for GCSD.
Recommendations 2
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R1Page 27That the PMD continue to refine their Real Estate Policy and Procedures Manual.
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R2Page 27That the PMD enhance their website to include: key people, available properties that are for sale and for lease and current Requests for Proposals. REQUIRED RESPONSES: 1. General Services Agency Director: Findings F1-F4, Recommendations R1-R2 2. Property Management Division Director: Findings F1-F4, Recommendations R1-R2 ***Disclaimer*** Grand Jury reports are based on documentary evidence and the testimony of sworn or admonished witnesses, not on conjecture or opinion. However, the Grand Jury is precluded by law from disclosing such evidence except upon specific approval of the Presiding Judge of the Superior Court, or another judge appointed by the Presiding Judge (Penal Code Section 911, 924.1 (a) and 929). Similarly, the Grand Jury is precluded by law from disclosing the identity of witnesses except upon an order of the court for narrowly defined purposes (Penal Code Section 924.2 and 929). TTuullaarree CCoouunnttyy CCiivviill GGrraanndd JJuurryy FFiinnaall RReeppoorrtt 22001199--22002200 “MORE MONEY ON TIME” DELINQUENT ACCOUNTS IN SPECIAL DISTRICTS BACKGROUND: Irrigation districts within the lower San Joaquin Valley are in business to provide water resources to agricultural enterprises. The Lower Tule River Irrigation District (LTRID) and Pixley Irrigation District (PID) provide supplemental water to about 150,000 acres in the Tipton area in the Central Valley of California. The LTRID and the PID were both incorporated in the 1950’s with offices located in Tipton, California. The estimated annual revenue for LTRID is $15.4 million while PID is estimated to generate approximately $1.2 million. Community Services Districts (CSD) are governing bodies that can be formed by residents of unincorporated areas to ensure that basic service needs are met. They provide water, sewer, police and fire services, garbage collection, recreation, landscaping, street lighting, mosquito abatement, graffiti abatement, library services and more. Goshen Community Services District (GCSD) provides sewer service in the Goshen area. It was formed in 1958 and in Fiscal Year 2018/2019 had revenues of $1.5 million. REASON FOR INVESTIGATION: On August 2, 2019 LTRID and PID published a PUBLIC NOTICE in newspapers throughout the County which identified accounts which were delinquent. This action prompted the Tulare County Civil Grand Jury (TCCGJ) to initiate an investigation into Special Districts with delinquent accounts and how they are collected. METHOD OF INVESTIGATION: 1. Conducted interviews 2. Reviewed relevant documents and data 3. Analyzed delinquent account data from 40 districts FACTS: 1. For the fiscal year July 1, 2018, to June 30, 2019, the TCCGJ reviewed the accounts of those districts with the highest delinquent accounts reported. 2. The highest delinquent irrigation districts accounts reviewed were LTRID’s at $1.4 million and PID’s at $261,000. TTuullaarree CCoouunnttyy CCiivviill GGrraanndd JJuurryy FFiinnaall RReeppoorrtt 22001199--22002200 3. On October 31, 2019, GCSD had 368 delinquent accounts owing approximately $237,884 which was the highest owed to a Community Services District. 4. Irrigations Districts have the legal authority to foreclose on properties that have been in delinquency for 5 years. 5. In 1993 the Tulare County Board of Supervisors sold Goshen’s water rights to the California Water Services Company. Therefore, GCSD has been rendered the only CSD that does not provide water services to its customers. 6. GCSD has a process to add delinquent accounts to property tax rolls for collection.