Water District to endure audit,
cost to be borne by ratepayers
by Jay O'Brien
As a result of the Sacramento Bee editorial on September 8,
2003, complying with a request from Senator Deborah Ortiz, State
Controller Steve Westly will conduct an "in-depth audit" of the Rio
Linda/Elverta Community Water District (RLECWD). The RLECWD costs to
facilitate the Ortiz audit are estimated at $4,000.
The Bee editorial cited RLECWD Director Mary Harris' perceived
difficulties in "questioning the wisdom of some staff raises and
digging in to how some former general managers ended up with health
insurance."
Ortiz, in her October 1, 2003 letter to Westly, asked that in-depth
audits be conducted on five water districts in California. Ortiz'
letter said this request was a result of "serious concerns" raised
about these districts by "Constituents, the media and grand juries."
The five districts included in Ortiz' request to Westly are as follows:
- West Basin Municipal Water District, identified by The
Beachwood Voice for paying for speech classes and travel expenses for
Board members, including national black forum attendance in Washington
and identified by The Los Angeles Times for board members charged with
extortion from contractors.
- Otay Water District, identified by The Star News as seeking
an injunction against a Board member and by The San Diego Union-Tribune
as the object of a LAFCO review of hiring practices, auditor
malfeasance and management.
- Sacramento Suburban, identified by The Sacramento Bee for
travel and credit card problems.
- Fair Oaks Water District, identified by The Sacramento Bee
for golfing expenses.
- Rio Linda/Elverta Community Water District, reviewed by the
Sacramento County Grand Jury, who issued no specific recommendations
for RLECWD.
Ortiz' staff member Sylvia Ruiz confirmed that Ortiz received no
letters from RLECWD constituents and that the grand jury issued no
recommendations for RLECWD. Ruiz identified the Bee editorial citing
RLECWD Director Mary Harris as what brought RLECWD "onto Senator Ortiz'
radar" and caused RLECWD to be included in the audit request to the
State Controller. Ruiz stated that the only constituent inquiries
received by Ortiz about RLECWD were two calls asking about the
District's "open meeting" practices.
The Bee editorial also cited the similar experiences of an El Dorado
Irrigation District (EID) director. Ortiz, however, did not ask for an
audit of the EID.
Ruiz cited the now completed "in-depth audit" of the Sacramento
Suburban Water District (SSWD), confirming that SSWD was obliged to use
40 hours of staff time and pay its auditor approximately $3000 to
comply with Ortiz' requested audit. Ruiz did not offer any
reimbursement possibility for the expected RLECWD expenses to
facilitate the in-depth audit Ortiz has requested. Ruiz said that the
State General Fund would cover the Controller's expenses.
Ruiz said that Senator Ortiz holds general concerns, not specific to
RLECWD, about Special District retained earnings, pension provisions
and ethics training for Directors. Ortiz hopes to resolve these issues
in the future through legislation.
RLECWD General Manager Dave Andres estimates RLECWD's expected costs to
support the audit to be similar to those encountered by SSWD. Andres
says the unexpected, not budgeted, costs of the in-depth audit
requested by Senator Deborah Ortiz may exceed $4,000. The costs of the
Ortiz requested RLECWD audit, about one dollar per customer, will be
borne entirely by the RLECWD ratepayers.