Meeting Minutes

Recommendations 17

• R2
  (R2): EPASD doesnot believe consolidation with West Bay Sanitary Districtand/or the City of East Palo Alto will,improve ratesor the efficiency in which services our provided as discussed in greater detail above. As such, we humbly decline partldpatlon in the discussions mentioned in R2 and the recommendation will not be implemented.
• R3

  Page 153
  Form a committee of Board members (Granada Community Services District, Montara Water and Sanitary District), Council members (HalfMoon Bay), and staff from each to plan the consolidation or assumption of services provided by these two districts. Evaluate alternatives and determine the benefits to ratepayers. Issue a report with recommendations and a plan by September 30,2017. GCSD Response: GCSD has formed such a committee and requested a meeting with Montara Water and Sanitary District as required by LAFCO. MWSD's board declined to discuss this with GCSD. There are understandable reasons why consolidation or assumption of services would not be prudent at this time. Virtually none of the constituents of the above-named agencies have any interest in such consolidation, and in GCSD's case, since GCSD has by far the lowest rates of the three agencies, it would result in an increase in rates to GCSD's ratepayers while providing no benefit to them and at the same time losing local control. Additionally, GCSD has its own voter-approved bond funding and repayment assessment district. Most of these districts have multiple different functions, different assessment areas, different reserves, and different fees. All consolidation plans ignore the high costs to implement a consolidation. When and if this changes in the future GCSD will be willing to discuss consolidation or other approaches. The Grand Jury recommends that the Boards ofBayshore Sanitary District, East Palo Alto Sanitary District, Granada Community Services District, Montara Water & Sanitary District, West Bay Sanitary District, and Westborough Water District do the following:
• R4

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  N.A. The Grand Jury recommends that the Boards of Bayshore Sanitary District, East Palo Alto Sanitary District, Granada Community Services District, Montara Water and Sanitary District, West Bay Sanitary District, and Westborough Water District do the following: Grand Jury Recommendation RS. Improve information visibility on their website [sic], including key system characteristics, rates and rate history, sewer system management plans, sanitary sewer overflows, and board membercompensation. Keysystem characteristics would include population served, number of connections, number of miles of pipe (gravity, forced Maine), number of pump stations and number of pumps, average dry weatherflow, and average wet weather flow. Ensure all information is up-to-date. Refresh website by September 30, 2016. MWSD Response: The recommendation has not yet been implemented, but MWSD has already begun this work. The District notes that much of this information is already on its website, but it will ensure that all of it is and is easy to find. What's more, the District recently contracted with opengov.org to Hon. Joseph C. Scott, Judge of the SuperiorCourt September 2, 2016 increase transparency by enabling the public to explore budget and transactional data online to gain trust and learn how their tax and rate dollars are spent. Work to transition financial information to this web-based transparency system is underway. Grand Jury Recommendation R6. Implement and publish performance management metrics including but not limited to the Effective Utility Managementframework, beginning with fiscal Year 2016-2017. MWSD Response: MWSD agrees. The District already includes metrics within its strategic planning, operational and capital improvement plans. However, the District concurs that a consolidated set of metrics would be beneficial and will develop a custom set of metrics that serve its needs. The District will reference the Effective Utility Management framework in developing its metrics. Grand Jury Recommendation R7. Adjust rates over the next five years, so that all costs are recovered from ratepayers, and the reliance on property tax is eliminated. Transition property tax revenues to neighboring cities to be used for community benefit. MWSD Response: This recommendation will not be implemented. In characterizing district property tax allocations under Proposition 13 (Cal. Const. Art. A §i) as a "subsidv," (GJR, p28), the Grand Jury loses sight of the fact that the tax revenue is put to district purposes benefitting taxpayers, including those within the districts. While eliminating the districts' property tax allocations would result in their share being "allocated elsewhere" (GJR, p. 29L the Grand Jury provides no suggestion as to what would be a better use than wastewater collection, treatment and disposal - functions that are essential to the public health, welfare and safety. Notably, no misuse of the revenue is claimed. Grand Jury Recommendation R8. Mail notices to ratepayers at least annually with an explanation of the dollar amount of sewer service charges being billed, and the rationale. Provide information on the prior five years' rates for comparison purposes. Display the portion of the rate that is related to collection activities, and the portion allocated to treatment. Mail notices approximately 30 days before the mailing of the property tax bills. Initiate mailings by November 2016. MWSD Response: This recommendation will be implemented in an upcoming newsletter. MWSD plans to consolidate the requested information in R8 and R9 into a single annual report with other useful information, publish it on its website and notify customers of its availability through its regular mailings. Grand Jury Recommendation R9. Notify ratepayers annually of the elected nature of board, role and compensation of Board members, and process for becoming a candidate. Encourage active participation by ratepayers. This notification may be included in the mailing that explains the rationale for rates. Initiate notification by November 2016 MWSD Response: This recommendation will be implemented in an upcoming newsletter. MWSD plans to consolidate the requested information in R8 and R9 into a single annual report with other useful information, publish it on its website and notify customers of its availability through its regular mailings. Grand Jury Recommendation RiO. Establish term limits for the members of their boards of directors by June 30,2017. Hon. Joseph C. Scott, Judge of the Superior Court September 2, 2016 MWSD Response: This recommendation will not be implemented. As described under FlO above, MWSD has an above average record of contested elections and an average tenure of just over 10 years for Board members. It is noteworthy that many directors comment that it can take a couple of years to become educated in the complexities of the organization and to be working at full capacity. The District has enjoyed the benefits of Directors with high dedication and enough tenure to be very effective in their District work. The last election was contested and two new directors were elected . The upcoming election is also contested. MWSD does not see the need for or benefit to term limits. To the contrary, term limits would artificially eliminate very dedicated and effective directors from serving the community. Grand Jury Recommendation RH. Establish a procurement process for professional services to include formal evaluation of existing service providers, issuance of Request for Proposals, regular reviews of existing providers, and a structured negotiation process by March 31, 2017 MWSD Response: This recommendation will be implemented. MWSD concurs that clear, fair and cost­ effective procurement processes are important, and maintains a number of procurement policies and procedures. MWSD will review and update its procurement policies with assistance of legal counsel, as appropriate in light of the recommendations. Grand Jury Recommendation R12. Demonstrate active participation in professional organizations focused on the work ofsanitary districts, such as California Water Environment Association, by June 30, 2017. Require CWEA certification of district operators, including contractors, by June 30, 2017. MWSD Response: The features of this recommendation are already in effect. MWSD already participates in numerous professional organizations, including: Association of California Water Agencies (ACWA), California Association of Sanitary Agencies (CASAl, Underground Service Alert (USA), California Special Districts Association (CSDA), California Groundwater Association (CGA), and other relevant professional associations. These facts are not recognized in
• R5

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  Improve information visibility on their website, including key system characteristics, rates and rate history, sewer system management plans, sanitary sewer overflows, and board member compensation. Key system characteristics would include population served, number of connections, number of miles of pipe (gravity, forced main), number of pump stations and number of pumps, average dry weather flow, and average wet weather flow. Ensure all information is up to date. Refresh website by September 30, 2016. GCSD Response: GCSD will be carrying out this recommendation, although September 30, 2016 is too short a time frame to accomplish all of this, particularly in light of launching its parks and recreation function. The District has already updated its website for items mentioned in the Report such as minutes, financial reports, and audits. Avenue Alhambra, 3 r d Floor ~ P. o. Box 335 - EI Granada, California 94018 Telephone: (650) 726-7093 ~ Facsimile: (650) 726-7099 - E-mail: [email protected] Grand Jury Response Letter September 21, 2016 Page Six
• R6

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  Implement and publish performance management metrics including but not limited to the Effective Utility Management framework, beginning with Fiscal Year 2016­ 2017. GCSD Response: Internal performance management metrics are in place. Moving forward, the District will look to preparing a more formal set of performance metrics, possibly in conjunction with its Sewer System Management Plan.
• R7

  Page 154
  Adjust rates over the next five years so that all costs are recovered from ratepayers, and the reliance on property tax is eliminated. Transition property tax revenues to neighboring cities to be used for community benefit. GCSD Response: GCSD is already in the process of transitioning a portion or all property tax revenue to park and recreation services on an as-needed basis. Additionally, the thought that GCSD ratepayers would agree to transfer property taxes paid by them to a neighboring city to fund city operations is impractical, legally unauthorized, unrealistic, and unreasonable. Furthermore, since these property taxes are paid exclusively by GCSD residents, it is difficult to understand why those taxpayers would want their property taxes be transferred to neighboring cities for the city's operations? Note that as part of the LAFCO approval, a portion of the property taxes utilized for parks and recreation which are collected in that portion of GCSD which overlaps City territory is paid annually to the City of Half Moon Bay for their park and recreation purposes.
• R8

  Page 154
  Mail notices to ratepayers at least annually with an explanation of the dollar amount of sewer service charges being billed and the rationale. Provide information on the prior five years' rates for comparison purposes. Display the portion of the rate that is related to collection activities, and the portion allocated to treatment. Mail notices approximately 30 days before the mailing of the property tax bills. Initiate mailings by November 2016. GCSD Response: GCSD will consider this. Placing the information on the GCSD Website may be preferable because it costs thousands of dollars to mail a newsletter and few of our ratepayers read the newsletters. Also, we're unsure exactly what ratepayers would utilize this information for. Constituents have previously complained that GCSD is wasting their money by mailing information to them.
• R9

  Page 154
  Notify ratepayers annually of elected nature of Board, role and compensation of Board members, and process for becoming a candidate. Encourage active participation by ratepayers. This notification may be included in the mailing that explains the rationale for rates. Initiate notification by November 2016. GCSD Response. See response to Recommendation 8. GCSD will place this information on the District's web site. Avenue Alhambra. 3 r d Floor - P. o. Box 335 - EI Granada, California 94018 Telephone: (650) 726-7093 - Facsimile: (650) 726-7099 - E-mail: gsdsanitary@comcasLnet Grand Jury Response Letter September 21, 2016 Page Seven RIO. Establish term limits for the members of their boards of directors by June 30,2017. GCSD Response: GCSD is concerned that this is likely to result in difficulties filling vacancies with qualified people. There is a benefit to having directors with some experience on the board because the learning curve is relatively steep given the fact that there are only 12 meetings per year. The election system is currently open to all District residents who would like to run for a spot on the board, and since there have been 7 contested elections in the past 10 elections, it appears the democratic process is working in GCSD. Rll. Establish a procurement process for professional services to include formal evaluation of existing service providers, issuance of Request for Proposals, regular reviews of existing providers, and a structured negotiation process by March 31, 2017. GCSD Response: The procurement process for all services, including professional services has been drafted and is planned for adoption prior to year-end. Evaluation and review of existing service providers has generally been ongoing, but will be formalized by March 31, 2017 as part of this process.
• R10

  Page 148
  (RiO): EPASD is not supportive of term limits because critical Institutional knowledge is lost when term limits are implemented and therefore this recommendation will not be implemented.
• R11

  Page 148
  (Rll): EPASD supports this recommendation and already has in place a rigorous bidding process with internal controls.
• R12

  Page 155
  Demonstrate active participation in professional organizations focused on the work of sanitary districts, such as California Water Environment Association, by June 30,2017. Require CWEA certification of district operators, including contractors, by June 30, 2017. GCSD Response: GCSD is a member of CASA and the CSDA. GCSD does not employ or contract for operators, therefore certification is not applicable. The District General Manager is also active in the Southern California Alliance of Publicly Owned Treatment Works , and his firm is heavily involved with the AWWA, the CWEA, and the APWA.
• R13

  Page 155
  Develop plans for coordinating resources in the event of a local or regional emergency by June 30, 2017. GCSD Response: GCSD is a participating member of Coastside Emergency Coordinator's group headed by the Coastside San Mateo County Sheriffs Homeland Security Division and Office of Emergency Services. In addition, SAM coordinates emergency planning among all its member agencies, including GCSD. We appreciate the opportunity to respond to the Grand Jury Report and to provide our input in this process. Sincerely, GRANADA COMMUNITY SERVICES DISTRICT ~~4~~ Matthew Clark Board President 504 Avenue Alhambra, 3 r d Floor - P. o. Box 335 - EI Granada, California 94018 Telephone: (650) 726-7093 - Facsimile: (650) 726-7099 - E-mail: [email protected] CITY COUNCIL 2016 ivlARK ADDIEGO, ~\'lA YOR PRADEEP GUIYf A, PHD , VICE ivlAYOR
• R14

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  and will determine whether to comply with them by December 29, 2016. The Westborough Water District does not agree with, and will not implement, Recommendations
• R15

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  Develop, publish, and track separate budgets for sewer and water services, beginning with Fiscal Year 2016-2017. The recommendation will not be implemented because it is not warranted or is not reasonable. A copy of the District's Annual Financial Reports for the last 5 years can be found on the District's website under BudgetlFinance. The Annual Financial Reports specifically detail the separation of revenue, expense, assets, depreciation, connection fees, and reserves for water and sewer. In addition, the District has made every reasonable effort to provide information to the public and, upon the recommendation of the Grand Jury, has obtained a District Transparency Certificate of Excellence by the Special District Leadership Foundation. In order to obtain the certificate the District had to meet certain criteria for transparency of District budgets. Moreover, the District has never had any request or complaints whatsoever from a customer requesting information from the District that couldn't be found in our Annual Financial Reports.
• R16

  Page 169
  Explore the feasibility of establishing a flat rate for capital improvements separate from the water usage rate. Report back at a public meeting by December 31, 2016. The recommendation will not be implemented because it is not warranted or is not reasonable. There is no justification in the Grand Jury's report for establishing a flat rate for capital improvement separate from the water usage rate. Changing the District's rate structure from a usage-based rate would require the District to perform a costly rate study and may require renegotiation ofour agreement with the North San Mateo County Sanitation District. Currently, new development is required to pay fees toward capital improvements. Other improvements that benefit the entirety of this small district are paid out of reserves. Without some explanation or discussion as to the reasons for this recomm endation, the District is unabl e to respond further.
• R17

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  N.A. RiB. N.A. Errors in Tables , Table 14: "Use of Contractors by Function in Independent Sanitary Districts" shows no District Clerk for MWSD. MWSD has a full time employed District Clerk who is exclusive to the sewer function. , Table 15 "Use of Operational and Planning & Control Technologies by District" shows a "No" under Operator Certification. All operators working in the Montara System are State certified. Effective Utility Management is shown as not utilized, which is incorrect. , Append ix K: Director Tenure by District incorrectly shows Jim Harvey, Kathryn Slater-Carter, andScott BoydasBoardmemberssince2003. JimHarveyhasserved since 2002, Scott Boydsince 1998, and Kathryn Slater-Carter since 1995. CITY COUNCIL MOTION September 20, 2016 City Council approved the following regular City Council Consent Item: Motion #: 16-099 Agenda Item #: 4B Subject• City Council to consider and approve the City response to the 2015-2016 San Mateo County' s Civil Grand Jury Report Regarding the Cottage Industry of Sanitary Districts in the County. The Grand Jury recommends that Boards ofthe East Palo Alto Sanitary District and West Bay Sanitary District and the City Council ofEast Palo Alto do the following: For a committee ofBoard members (East Palo Alto Sanitary District, West Bay Sanitary District), Council members (East Palo Alto), and stafffrom each to discuss the assumption ofservices provided by East Palo Alto Sanitary District into either West Bay Sanitary District or the City ofEast Palo Alto. Evaluate alternatives and determine the benefits to ratepayers. Issue a report with recommendations and a plan by September 30, 2017. Agenda Item #413 was moved by Councilmember Carlos Romero and seconded by Councilmember Ruben Abrica. Vote as Follows: Ayes: ROMERO. ABRICA, RUTHERFORD, MOODY GAUTHIER Noes: Absent: Abstain: I, Terrie Gillen, Deputy City Clerk, certify that the City Council approved the City's response by motion at the regular City Council meeting ofSeptember 20, 2016. 4\ L - TERRIE GILLEN, Date Deputy City Clerk E'PASJJ C2S";j~~,~;=~:~~~~~,~:!t~J!;~7:"- SOARDOF DIRECTORS' 901 WeeksStreet Glenda Savage, President EastPaloAlto,CA 94303 . , Bethzabe Yallez, VicePresident Phone: (650)325-9021 Joan Sykes-Miessi, Secretary Fax: (650) 325-5173 Goro Mitchell, Director www.epasd.com Dennis Scherzer, Director Karen Maxey, Interim General Manailer September 27,,2016 Members 2015-2016 SMCountyCivil Grand Jury C/O Hon. Joseph C. Scott SuperiorCourt, CountyofSan Mateo Hallof Justice 400County Center Redwood City,CA 94063-1655 .DearGrand Jury Members: This missive is the.East Palo Alto Sanitary District Governing Board approved response to your report titled: "San'MateoCounty'sCottageIndustryofSanitaryDistricts,"filedon June29,2016. First,wewould like to commend the Grand Jury members and staff for a job well done. The report is truly a well­ researched andwrittendocumentwith very usefulconclusionsandrecommendations. Ourdistrictdoes notfully concurwith allof.therecommendationsandfindingsofthereport. Thepurposeofthisletteris to humblyenhancethe Reportwith informationthatmaynot have been knownto theReport'sauthors. Please see the information below: I. Well EducatedandTrainedGoverningBoardProduces Benefitsforthe District All EPASD Board Members have received training certificates in areas of board management, district finance, districtoperations,human resources, environmental managementorboardleadershipwithinthe last12 months. Recently, Board Membershavetakenunpaid leadership roleson behalf ofthe District. For example, a I Board Member with an environmental science background engaged in efforts that have impacted technology usage in ,a multlmllllon dollar upgrade at the regional water treatment plant. This included dozens unpaid hours invested by the Board Membertoproduce a full report including charts and diagrams on alternative treatment methods that could save ratepayers millions of dollars in capital and operating cost in the future. In addition, two Board Members with demographic and social justice backgrounds, successfully challenged a regional water agency's definition of low-income resulting in a grant to the District of over $400,000. A Board Member with a survey research background has designed and implemented a mail survey to assess the impacts of our newsletter. This Board Member will be analyzing the results and produce a written report pro bono. II. The Gold Standard The Report mentioned that among special districts and municipalities in San Mateo County, there is no "Gold Standard," related to sewage spills and overflows. We would like you to consider EPASD ~s the gold standard. We have had no punitive regulatory action taken against the District in the last decade related to spills or overflows. III. FiscalAccountability We are happy that the Grand Jury found that our district had rock solid fiscal propriety. This is not by accident. EPASD usesa third partyaccountingserviceandchangesauditorsevery twoyears. Allauditsin the last decade have been stellar. We also use a firm to inform our long term budgeting. In the last two years; we have produced a new accounting policies and procedures manual which employs our FinanceCommittee to reconcile bank statements; an unprecedented process to help ensure financial accountability. EPASD has not raised annual sewage rates 3 of 5 years and has maintained fund reserves for the last 10 years. The rate increases were only taken because of obligations t~ fund capital improvements at the regional water treatment facility. The Board-has in 2009 lowered its meeting stipend rate by 15 percent and has only taken two annual cost of living increases in the last five years. The Board has also set limits on the number of professional trainings that can be attended by Board Member in a 12 month period. IV. Consolidation Our friends at the City of East Palo Alto meet with EPASD on a regular basis via our Intergovernmental Committee Meetings. In these meetings, staff, Board Members and City Council Members meet to share informationandfindwaysto collaborateandcoordinate operations. Thishasresulted inaMemorandum of Understanding to share information on development and other projects as well as the recent sharing of environmental permits between the agencies. The City of East Palo Alto has one utility (municipal water' which is managed by a third party private firm. Given this precedent by the City of not managing its utility, the City may not have the capacity or want to manage sewer services. Similar, there may not beanet costsavingsto ratepayers ifathird partyfor-profitentitymanagedsewerservicesatthe City. In addition, West BaySanitary District has some ofthe highest rates in the County, consolidation in this case _ may increase Sanitary Sewer charges for our ratepayers. V. Transparencv, Community Education and Engagement In,the last five years EPASD has embarked on an effort to engage ratepayers and the community. We completedaservicearea-widedoor-to-doorsurveyofall householdsto determinethe bestwayto engage . and educate the community to our work. Subsequently, a Public Relations Report was produced with recommendationsinformedbythecommunityto performoutreach. Anadhoccommitteewasformed to provide input into the first two projects recommended by the PR Report: 1) an updated and highly interactivewebsiteand2laquarterlynewsletter. Wearecurrently, engagedinasurveyprocessto assess thefruition ofthenewsletterand waysto improveit. VI. SewerSystem Infrastructure I EPASD has completed the filming of all of its sewer lines, assessed and prioritized segments for non replacement and repair. We have plans and monies set aside to replace our sip line and. a-separate: $500,000 ayearcapitalimprovement plan. VII. Review of District Benefits The EPASD Human Resources, Management and Organization Committee recently undertook a· compensation studyto ensurethat wageandbenefit levelswerecongruentwith other special districts. Subsequently, the committee isreviewingof Districtbenefits.Ievelsto ensurethe long-termfinancial stabilityofthe District. VIII.FindingsoftheGrandJury ,/ We cannot fully agree with all of the Findings (F-l through F13) because we have not independently '. verifiedthe data. IX. Recommendations of the GrandJury Recommendation2(R2): EPASDdoesnot believeconsolidationwith West BaySanitaryDistrictand/orthe Cityof EastPalo Altowill,improveratesorthe efficiency inwhich services our providedas discussed in greater detail above. As such, we humbly decline partldpatlon in the discussions mentioned in R2 and the recommendation will not be implemented.
• R18

  Page 97
  Initiate a service review of the Westborough Water District to examine whether its operations might be more efficiently and effectively run if they were consolidated with another entity’s operations. Response: The recommendation will be implemented. LAFCo will include a municipal service review and sphere of influence update for the Westborough Water District in the 2017 calendar year in conjunction with a municipal service review and sphere update for the City of South San Francisco. Respectfully submitted, Martha Poyatos Executive Officer CC: General Managers, Independent Sanitary Districts P.O. Box 370131 8888 Cabrillo Hwy Montara Water Montara, CA 94037-0131 and Sanitary District t: 650.728.3545 • f: 650.728.8556 email: [email protected] Serving the Commumly of Montara and Moss Beach web: mwsd.montara.org September 2, 2016 Hon. Joseph C. Scott Judge of the Superior Court c/o Charlene Kresevich Hall of Justice 400 County Ctr.; 2nd Floor Redwood City, CA94063-1655 Re: Responseof Montara Water and Sanitary District ("MWSD") to 2015-2016 Civil Grand Jury Report Regarding Sanitary Districts This letter is MWSD's response to the Civil Grand Jury Report entitled, "San Mateo County's Cottage Industry of Sanitary Districts" distributed by the Court Executive Officer under letter dated June 29, 2016 ("GJR"). MWSD's governing Board approved this response at a public meeting on September 1,2016. MWSD appreciates the extensive time and effort the Grand Jury devoted to its review of the six independent special districts in the County that provide sanitary sewer service. The wastewater industry is highly regulated, operationally complex and replete with technical requirements that are not readily understood outside the industry. The Grand Jury is to be commended for undertaking the challenge presented by its review. Although responses only to findings and recommendations are required (Pen. C. §933(c)), we discuss additional portions of the GJR pertaining to MWSD that render corresponding findings inaccurate or do not support the findings or recommendations. For example, the GJR noted that 45 agencies in the County are " ... involved in sewage collection and treatment..." (GJR p.l), yet the Grand Jury limited its review to six special districts. We are concerned that this small sample and narrow focus on a few agencies limits the accuracy of the generalized conclusions found in the GJR. Nonetheless, we concur with many comments and conclusions found in the GJR and appreciate that they provide useful third party insight into our District and industry. We will take action on those as noted below in our responses to the Findings and Recommendations. We respectfully offer additional information for accuracy, especially regarding public accountability, fiscal responsibility, and operational competence as they relate to our District as discussed below. PUBLIC ACCOUNTABILITY. Contrary to the GJR's assertion that sanitary districts have minimal interaction with the public compared to water districts (GJR p. 27), MWSD has a consistent and robust record of public interaction. For example: MWSD provides outreach through newsletters; invites the public and local officials to attend grand openings of new facilities, such as its Alta Vista water reservoirs; maintains an up-to-date website, distributes press releases, sends bi-monthly bill stuffers; and places signs in public areas for special notices. Development of MWSD's Strategic Plan included two Board public planning workshops that were attended by members of the public as well as a community meeting convened specifically to obtain public input, which drew some 70 citizens. Hon. Joseph C. Scott, Judge of the Superior Court Page2 September 2, 2016 What's more, members of the public regularly participate in Board meetings and the District's Board meetings are televised and available online. Being a small community, citizens call or talk in person with Directors and staff on a regular basis about their questions and concerns. Several District Directors also participate in the Next Door online forums in their neighborhoods. Even though the services we provide are limited to sanitary, water and solid waste matters, many in our community perceive MWSD as the only form of local government that represents them and their interests. We believe this representation is valuable, even when we cannot act on it. The Grand Jury Report, itself, acknowledges that having elected board members gives the public an important link to their community (GJR p. 25; see, also fn. 31). An example of this occurred in 2001, when Montara and Moss Beach residents wanted local control of their water supply, and voted 81 percent in favor of taxing themselves nearly $1,000 per year so that the District could take over water service from an out-of-area, for-profit operator. (see: http://smartvoter.org/2001/11/06/ca/sm/meas/V1) FISCAL ACCOUNTABILITY. MWSD takes numerous actions to ensure fiscal accountability: 1) incorporates financial and rate planning in the annual strategic planning process; 2) maintains long-term capital improvement and financial plans; 3) worked to ensure its sanitary rates are rising below the rate of inflation; 4) has never received anything but an unqualified opinion over the presentation of its annual audited financial statements; and 5) notes that there is no evidence of financial impropriety in the GJR or elsewhere. Nonetheless, in response to the GJR, the District will increase its communication to the public about finances and rates as indicated in our response to Grand Jury Recommendations numbers eight and nine. OPERATIONAL COMPETENCE. The GJR challenges the operational competence of MWSD and other Districts . This is puzzling given the facts. The GJR claims District operators are not certified, but in fact every one of them is certified. The GJR claims the District is not familiar with a number of current technologies and planning methods, yet the District is familiar with every one listed in the Report and utilizes all that are cost-effective and beneficial to the MWSD system. The GJR claims that the District staff and Board do not participate in professional organizations, yet both Directors and staff are engaged in leadership positions in professional organizations. Additionally, the GJR does not appear to recognize the collection system maintenance program used by MWSD. City of Half Moon Bay, Granada Community Services District and MWSD collaborate to receive contracted sewer collection services through our ownership in Sewer Authority Mid-Coastside (SAM)­ thereby obtaining an economy of scale, levels of expertise and access to more advanced equipment than each District could obtain on its own. This is laudable and is in line with best practices that promote collaboration and regional partnerships. Asnoted at the beginningof this letter, MWSDappreciates the time and effortof the GrandJury in undertaking the task of reviewing independent sewerage districts in San Mateo County. Our responses contained in this letter underscore our commitment to serving our customers well. Very truly yours, ;;.~ }~"'\./ :' -: Jim Harvey, President, MWSD Board cc: General Manager, Sewer Authority Mid-Coastside; General Manager. Granada Community Services District; City Manager, City of Half Moon Bay; Sanitary Engineer, Montara Water and Sanitary District; Legal Counsel, Montara Water and Sanitary Distr ict Hon. Joseph C.Scott, Judge of the Superior Court September 2, 2016