Kern County Grand Jury • 2021-2022

Report: Rand Water District

Published: December 15, 2021 14 pages
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Findings and Recommendations 10 findings

F1
The District has made progress to meet the 2018-2019 Kern County Grand Jury Report to avoid entering into receivership.
Related Recommendations (1)
R1
The District should continue the progress they have diligently worked for to better serve the communities. (Findings F1, F2, and F3)
F2
It appears the District is in a better financial position.
Related Recommendations (1)
R1
The District should continue the progress they have diligently worked for to better serve the communities. (Findings F1, F2, and F3)
F3
The District could benefit by joining the California Special Districts Association (CSDA) for assistance on the governance of the District.
No recommendations for this finding
F4
The official minutes have not indicated a formal recusal from any Board Members.
Related Recommendations (1)
R3
The minutes of Board Meetings should reflect that the recused left the area during the discussion or action. (Finding F4)
F5
The Board Member with a family connection has not been formally recused from any discussion regarding the litigation. This lends to the appearance of impropriety.
Related Recommendations (1)
R2
The Board Member, with family ties to the litigant, should publicly recuse from any discussion or action by the Board on the litigation before any more discussions. (Finding F5)
F6
The water loss indicated by the monthly reports appear to be substantial and is impacting the financial viability of the District. Hopefully, the new construction will reduce the water loss in the transmission line. Town site loss needs to be addressed also.
No recommendations for this finding
F7
Because of administrative and engineering delays, the District will need to request an extension of the construction completion date.
Related Recommendations (1)
R4
The District should seek assistance from project management to request, within the next 60 days, a final date extension so no penalty fees are assessed. (Finding F7)
F8
The District will be severely impacted financially if the rate increase is reversed:  Any income derived from the rate increase could be required to be refunded to customers.  The District could struggle to remain financially viable. o A question was asked and answered in the Rate Study Questions and Answer portion of the Proposition 218 hearing. Comment: The previous manager left the District with a large monetary surplus. Response: Currently, the District does have some money in the bank; however, this money will not last if the District continues to run at a yearly deficit, in fact, by FY 2025, there will be a negative balance if no action was taken.
No recommendations for this finding
F9
To minimize what appears to be a misrepresentation of information throughout the communities, the District could include an “information newsletter” when monthly statements are issued. Some of the issues to cover could include:  Progress on the system upgrade  Financial information  Board actions which could affect the customers  A positive message from the Board President  Reminder of upcoming Board Meetings
Related Recommendations (1)
R5
The District should open some form of communication within the next two billing cycles to the customers to show progress and transparency. (Findings F9 and F10) NOTES: • The Rand Communities Water District should post a copy of this report where it will be available for public review. • Persons wishing to receive an email notification of newly released reports may sign up at: www.kerncounty.com/grandjury • Present and past Kern County Grand Jury Final Reports and Responses can be accessed on the Kern County Grand Jury website: www.kerncounty.com/grandjury RESPONSES ARE REQUIRED PURSUANT TO CAL. PENAL CODE § 933, SUBD. (C) AND 933.05 WITHIN 90 DAYS TO:  PRESIDING JUDGE KERN COUNTY SUPERIOR COURT 1415 TRUXTUN AVENUE, SUITE 212 BAKERSFIELD, CA 93301  TRUXTUN AVENUE, SUITE 600 BAKERSFIELD, CA 93301 Reports issued by the Grand Jury do not identify individuals interviewed. Cal. Penal Code § 929 requires that reports of the Grand Jury not contain the name of any person or facts leading to the identity of any person who provides information to the Grand Jury. APPENDIX:
F10
A change in the Board Meeting time to an earlier hour in the evening or, a Saturday morning time, may encourage greater public participation. COMMENTS: The Grand Jury was pleased to see the progress this District has made between the previous report and now. The District welcomed the Grand Jury and was helpful in acquiring the information needed.
No recommendations for this finding

Comments 3