A recent Grand Jury Report entitled "A Saga of Mismanagement and Water Problems" was released, revealing unsafe water conditions, lack of compliance with public information laws, failure to act on prior safety compliance orders, questionable fiscal integrity and accountability, and disturbing mismanagement and leadership conflicts. As the Sacramento County Grand Jury requires response from the district by July 6, Mary R. Harris, President of the Rio Linda/Elverta Water District has issued the following statement:
"As Rio Linda Elverta Community Water District's newly elected Board President of one year, we inherited quite a challenging set of circumstances that honestly seemed insurmountable. Past practices and a lack of oversight and accountability of the prior administration left this water district’s finances at serious risk.
Based on the significance of the Grand Jury’s report and moving beyond past District practices, we are taking the necessary steps to restructure and revitalize our distribution infrastructure as we reorganize our policies and business practices to deliver safe and reliable water to our customers. Mismanagement with the prior four year rate increase slated for capital improvement was put in the general fund, and not using the money for capital improvements is unacceptable. The water surcharge is exclusively dedicated to funding $7.5 million dollars for the Compliance Order 01-09-07 - Capital Improvements. It is with a great deal of humbled acknowledgement and ambition that we are committed to rectify the ongoing struggles we have experienced over the years by taking the recommendations of the Grand Jury and addressing them one by one.
Staff will be directed accordingly as we align ourselves with new objectives and oversight to meet the needs of the community as quickly as is humanly possible.”
Financially
· The District has balanced the budget. The District has ended the 2008/2009 Fiscal Year with a $35,000 savings.
· The District has reduced expenditures and this year the District will have another year of a balanced budget.
· Board Members should develop a good understanding of the financial statements and issues.
· The District has properly gone through the state-required financial disclosures and rate setting processes to establish a new funding structure. This surcharge will allow the District to borrow state or private resources for Capital Improvements. The water surcharge is exclusively dedicated to funding $7.5 million dollars for the Compliance Order 01-09-07- Capital Improvements.
Capital Improvements
· The District has spent approximately $60,000 on a Fire Hydrant replacement project which provides fire safety for the Rio Linda / Elverta community.
· The District has set up a fund balance to identify what has happened over the last few years with the funds borrowed or reserves from the past.
· The District will be working with the accounting firm Marcia Fritz & Company to improve the District accounting so that the processes meet the state Special District accounting processes.
Labor
· The District has negotiated an agreement with the Teamsters Union Local 150. While this agreement is still going through the process of meet and confers and PERB, it is by far an improved written agreement for management, the employees, and the Union. This written agreement can build improvement for labor negotiations in the future.
Wells #15, #16 & #17
· The land for Well site #15 is acquired. The Environmental Statements have been approved. The District is moving forward in good order to complete Well #15, #16 and #17. The goal is to secure funding from the state so that in the near future, the State Compliance Order can be relieved. This will help the District add connections and collect capacity fees from developers.
· The District has done a notable job of identifying urgent needs of the District’s infrastructure. For example, mold issues, electrical issues, and District parking for those who are disabled.