Jurupa Community Services District

Jurupa Community Services District (JCSD) managed the sale of The Limonite Property in the timeline as follows: • 08/27/2001 JARPD’s letter formally expressed interest to JCSD in obtaining the Limonite Property for park use. • 09/12/2001 JCSD’s letter replied to JARPD to the effect that if and when the Limonite Property became available, such notification would be provided, as required by California Government Code (GC) §54222. • 11/24/2003 JCSD Board Minutes reveal a unanimous vote declaring the Limonite Property surplus to the district’s needs. JARPD was not advised of this decision, as required by GC §25526, 25528, 25530, and 25531. JCSD did not comply with these provisions. • 03/23/2004 JCSD received an appraisal valuing the Limonite Property at $1,040,000. The appraisal stated, “It is the appraiser’s estimation that both the marketing and exposure time for the Subject Properties would be 12 months or less if placed on the open market in today’s market conditions at the concluded values.” • The Riverside County Economic Development Agency provides expert assistance to agencies having surplus real estate to dispose of. The district did not utilize these services, instead, employed a Ventura, California–based appraisal company. • 05/06/2005 an outside buyer tendered a written offer for the property for $1,200,000. At no time, between the Limonite Property being declared surplus and receipt of the offer to purchase, was public notification made of the availability of the property, as required by GC §54222. 2 • 05/09/2005 At the regularly scheduled JCSD Board Meeting, the minutes show no mention of the availability of the Limonite Property or of the offer to purchase it. • 05/13/2005 JCSD posted notification of a Special Board Meeting to be held the following Monday, May 16, 2005, for the purpose of considering an offer to purchase the Limonite Property. No explanation was given for calling a Special Meeting over the weekend, as opposed to considering the matter at the next regular meeting, one week later. Witnesses testifying concerning the Special Meeting claimed not to remember the reason for the urgency of the meeting. • 05/16/2005 Minutes of the Special Board Meeting reflect the attendance of four of the five directors. Minutes also reflect the absence of the District’s Legal Counsel. A motion to accept the offer to purchase the Limonite Property passed unanimously. The meeting was concluded in about 15 minutes. • 05/15/2006 The land sale transaction culminated with the filing of the Grant Deed transferring title to the new owners.

JCSD does not have a Policy and Procedures Manual. Our investigation revealed the following: a. Evidence was received concerning personal use of JCSD credit cards, by district management personnel, in the purchase of clothing and meals. b. Contracts were written with a firm owned by a relative of a district official for billing and printing. The contracts were awarded without competitive bidding, as required by California Public Contract Code §22030-

California State Department of Health and Services (DHS) sent JCSD a Notice of Violation on February 10, 2006, stating that its weekly nitrate sampling requirements had not been met. On April 28, 2006, JCSD received another Notice of Violation from DHS citing the sampling deficiency and ordered Well #17 to be shut down. The public was not initially notified of potable water contamination.