Calaveras County Civil Grand Jury Calaveras County Water District Still Waters Run Deep

R1

Calaveras County Civil Grand Jury recommends that, by December 31, 2024, Calaveras County Water District follow their own policy and recalculate the base and usage rates so that the smaller meter customers are not subsidizing the larger meter customers. Required Response Calaveras County Water District Board of Directors Invited Response None.

R1a

Calaveras County Civil Grand Jury recommends that the Calaveras County Board of Supervisors request that the California State Controller conduct a review of CCWD’s internal control system to determine the adequacy of CCWD’s controls for conducting its operations, preparing financial reports, safeguarding of assets, and ensuring proper use of public funds. Government Code Section 12422.5 authorizes the State Controller to “audit any local agency for purposes of determining whether the agency’s internal controls are adequate to detect and prevent financial errors and fraud.” Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Board of Supervisors

R2

Calaveras County Civil Grand Jury recommends that, by December 31, 2024, Calaveras County Water District publish a correction to the statement made in their community presentations. Required Response Calaveras County Water District Board of Directors Invited Response None.

R2a

Calaveras County Civil Grand Jury recommends that the Calaveras County Board of Supervisors request that the California State Controller conduct a review of CCWD’s internal control system to determine the adequacy of CCWD’s controls for conducting its operations, preparing financial reports, safeguarding of assets, and ensuring proper use of public funds. Government Code Section 12422.5 authorizes the State Controller to “audit any local agency for purposes of determining whether the agency’s internal controls are adequate to detect and prevent financial errors and fraud.” Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Board of Supervisors

R3

Calaveras County Civil Grand Jury recommends that the management of Calaveras County Water District, by December 31, 2024, re-evaluate the effectiveness of the Lease To-Own Program by initiating a study that compares the cost of leasing and subsequently returning vehicles, versus the ownership of vehicles throughout a reasonably expected useful lifespan. Required Response Calaveras County Water District Board of Directors Invited Response None.

R3a

Calaveras County Civil Grand Jury recommends that the Calaveras County Board of Supervisors request that the California State Controller conduct a review of CCWD’s internal control system to determine the adequacy of CCWD’s controls for conducting its operations, preparing financial reports, safeguarding of assets, and ensuring proper use of public funds. Government Code Section 12422.5 authorizes the State Controller to “audit any local agency for purposes of determining whether the agency’s internal controls are adequate to detect and prevent financial errors and fraud.” Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Water District Director of Operations Calaveras County Board of Supervisors

R4

Calaveras County Civil Grand Jury recommends that, by December 31, 2024, all Calaveras County Water District vehicles be used by personnel only within the scope of their job descriptions during business hours with exceptions of after-hours by on-call and emergency response personnel. Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Board of Supervisors

R4a

Calaveras County Civil Grand Jury recommends that the Calaveras County Board of Supervisors request that the California State Controller conduct a review of CCWD’s internal control system to determine the adequacy of CCWD’s controls for conducting its operations, preparing financial reports, safeguarding of assets, and ensuring proper use of public funds. Government Code Section 12422.5 authorizes the State Controller to “audit any local agency for purposes of determining whether the agency’s internal controls are adequate to detect and prevent financial errors and fraud.” Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Board of Supervisors

R5

Calaveras County Civil Grand Jury recommends that, by December 31, 2024, Calaveras County Water District contract with an information technology firm that has the expertise to identify and provide an action plan to resolve the current system integration issues. Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Water District Business Services Manager Calaveras County Water District General Manager Calaveras County Board of Supervisors

R5a

Calaveras County Civil Grand Jury recommends that the Calaveras County Board of Supervisors request that the California State Controller conduct a review of CCWD’s internal control system to determine the adequacy of CCWD’s controls for conducting its operations, preparing financial reports, safeguarding of assets, and ensuring proper use of public funds. Government Code Section 12422.5 authorizes the State Controller to “audit any local agency for purposes of determining whether the agency’s internal controls are adequate to detect and prevent financial errors and fraud.” Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Water District Business Services Manager Calaveras County Water District General Manager Calaveras County Board of Supervisors

R5b

Calaveras County Civil Grand Jury recommends that, by December 31, 2024, a process and timeline be created for the migration of other standalone applications at Calaveras County Water District into their Enterprise Resource Planning platform. Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Water District Business Services Manager Calaveras County Water District General Manager

R6

Calaveras County Grand Jury recommends that, by December 31, 2024, an outside human resource consultant be contracted to address the root of workplace culture issues with all Calaveras County Water District management and employees. Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Water District Human Resources Manager

R7a

Calaveras County Grand Jury recommends that all employees in a supervisory level position review the District employee performance evaluation policy and comply with that policy by December 31, 2024. Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Water District Human Resources Manager Calaveras County Water District General Manager

R7b

Calaveras County Civil Grand Jury recommends that, by December 31, 2024, the Calaveras County Water District Human Resources Department document and enforce the execution of regularly scheduled employee performance reviews. Required Response Calaveras County Water District Board of Directors Invited Response Calaveras County Water District Human Resources Manager Reports issued by the Grand Jury do not identify individuals interviewed. 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. REFERENCE SOURCES NOTICE OF PUBLIC HEARING ON PROPOSED INCREASED RATES AND CHARGES FOR WATER AND WASTEWATER SERVICES. posted July 24, 2023 https://ccwd.org/wp-content/uploads/2023/07/Final-Prop-218-Notice.pdf CCWD website as of April 2024 Bi-Monthly Water Base Rate Charges by Meter Size effective in 2018 -2022 https://ccwd.org/wp-content/uploads/2020/01/CCWD-Water-and-Wastewater- Rates_Approved-May-2018.pdf CCWD website as of April 2024 Bi-Monthly Water Base rate Charges by Meter Size effective 2023-2027 https://ccwd.org/wp-content/uploads/2023/10/Rate-Ordinance-Exhibit-1-Adopted-9-13.pdf https://ccwd.org/rate-study-23-28/ CCWD website as of April 2024 Calaveras County Water District – 2023 Cost-of-Service Study pg6 Posted on 9-25-23 https://ccwd.org/wp-content/uploads/2023/10/Calaveras-County-Water-District-2023-Cost- of-Service-Study-9-25-2023.pdf CCWD Website as of April 2024 Presentation-Reasons for the Rate Increase (CCWD Workshop-Presentation-Full) https://ccwd.org/rate-study-23-28/ California Special Districts Association https://csda.net/home Parker, Mike - Pros & Cons of Leasing vs. Buying a Vehicle – Hearst Newspaper – Chron Newsletters Molnar, Dani – Lease or Buy? 05/05/2013 Acima Leasing - What Does Lease-to-Own Mean – April 12, 2022 Microsoft Bing, Copilot - Leasing, Buying, Conclusion Truck Leasing 101: What is an Equity Lease – Wilmar client portal Merchants Fleet Leasing https://www.merchantsfleet.com/ Kagan, Julia & James, Margaret - Open-End Lease: What it is, How it Works – 05/26/2021 FleetNet America Lease vs. Buy: A Decision Guide and Cost Analysis for Fleets – 11/13/ 2017 Enterprise Fleet Management website https://www.efleets.com/ Hackett, Trenda. B. – Employer-provided and company-owned vehicles – The Tax Adviser 11/01/2022 Vines, Joan & Sharara, Norma – Taxation of Employees’ Personal Use of Company Vehicles – 11/11/2021 BDO USA Toni Hoy – Fiduciary Responsibility: A Complete Guide with Examples – March 21, 2023 California Constitution Article XIII C & D California Government Codes 53755, 53756 California Labor Code 1102.5 Calaveras County Board Resolution 2003-67 Various Agendas, Agenda Packages, and Minutes from past Calaveras County Water District Board Meetings