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HomeMy WebLinkAbout2016-09-07 e-packet@6:00Wednesday, September 7, 2016 6:00 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Hall, City Manager's Conference Room 400 Grand Avenue, South San Francisco, CA Special City Council Special Meeting Agenda September 7, 2016Special City Council Special Meeting Agenda NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, September 7, 2016, at 6:00 p.m., in the City Hall Conference Room, 400 Grand Avenue, South San Francisco, California. Purpose of the meeting: Call to Order. Roll Call. Public Comments – comments are limited to items on the Special Meeting Agenda. Agenda Review. Report regarding Board and Commission interviews and appointments to the Cultural Arts Commission and San Mateo County Flood Control District. (Krista Martinelli, City Clerk). 1. a. Interview Applicants for Multiple Positions 6:00 p.m.: Alvin Zachariah (Cultural Arts Commission; San Mateo County Flood Control District) 6:10 p.m.: Kurpita Bogdan (Cultural Arts Commission, Housing Authority Tenant Commissioner Seat; Library Board) b. Interview Applicants for Cultural Arts Commission 6:20 p.m.: James Bertoldi 6:30 p.m.: Lenita Boldenweck 6:40 p.m.: PaulaClaudine Hobson- Coard 6:50 p.m.: Shane Looper 7:00 p.m.: Amethyst Monce 7:10 p.m.: Jessica Madrid Nickle 7:20 p.m.: Dominador Ofrecio 7:30 p.m.: Jacqueline Pettinari 7:40 p.m.: Florida Ventura 7:50 p.m.: Cassandra Woo Previously interviewed applicants Bogdan and Zachariah. c. Interview applicants for multiple positions (continued) and consideration of acceptance of late application. 8:00 p.m.: Elena Gekker (Cultural Arts Commission; Housing Authority) d. Discussion and consideration of appointment of applicants to the Cultural Arts Commission. Council may appoint nine (9) applicants to respective terms expiring June 13, 2020. Applicants: Bertoldi, Bogdan, Boldenweck, Gekker, Hobson-Coard, Looper, Monce, Madrid Nickle, Ofrecio, Pettinari, Ventura, Woo and Zachariah. Page 2 City of South San Francisco Printed on 9/21/2016 September 7, 2016Special City Council Special Meeting Agenda e. Discussion and consideration of appointment of applicant to the San Mateo County Flood Control District. Council may appoint one (1) applicant to a term expiring March 31, 2020. Applicant: Zachariah. Proclamation for National Preparedness Month accepted by Ken Anderson, Sr., Emergency Services Manager. (Mark Addiego, Mayor) 2. Report regarding the San Mateo County Civil Grand Jury Report on Sanitary Districts and the City of South San Francisco’s recommended response. (Brian Schumacker, Water Quality Control Plant Superintendent) 3. Report regarding the League of California Cities resolution to prioritize traffic safety, confirming Councilmember Garbarino as the appointed member of the General Resolutions Committee to vote on behalf of the City of South San Francisco, and confirming the candidates on the Peninsula Division Executive Committee ballot. (Marian Lee, Assistant City Manager) 4. Adjournment. Page 3 City of South San Francisco Printed on 9/21/2016 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:16-643,Version:1 Report regarding Board and Commission interviews and appointments to the Cultural Arts Commission and San Mateo County Flood Control District.(Krista Martinelli, City Clerk). RECOMMENDATION It is recommended that the City Council consider the attached citizen applications for appointment to the open seats on the Cultural Arts Commission,Housing Authority,Library Board and San Mateo County Flood Control District and that City Council interview each citizen.It is further recommended that upon completion of interviews,Council move to appoint individuals to the Cultural Arts Commission and San Mateo County Flood Control District on September 7,2016.Appointments to the Conference Center Authority,Housing Authority and Library Board should be made on September 21, 2016 after all of the applicants have had an opportunity to interview. BACKGROUND/DISCUSSION Pursuant to Resolution No.27-2009,the City Council holds biannual recruitments/meetings for the purpose of considering appointments to Boards and Commissions.In July 2016,due to expiration of terms and resignations,the City Clerk’s Office initiated recruitment for several Boards and Commissions.The application deadline was August 26,2016 at 5:00 p.m.Due to a technical issue one application that was faxed prior to the deadline was received after the deadline. This application was submitted by Elena Gekker and is being presented for consideration in the City Council’s discretion. On September 7,2016,Council will interview applicants for the Cultural Arts Commission and San Mateo County Flood Control District.Appointments to these Commissions are also scheduled for September 7th.For efficiency purposes,on September 7th,applicant Kurpita Bogdan,who applied to the Cultural Arts Commission,will also be interviewed on his applications to the Housing Authority Tenant Commissioner Seat and Library Board.In City Council’s discretion, applicant Elena Gekker can be interviewed for the Cultural Arts Commission and Housing Authority on this same evening.Appointments to the Housing Authority and Library Board are scheduled to be made on September 21,2016 after Council has the opportunity to interview the complete applicant pool for these positions. Summary of Open Seats ·Cultural Arts Commission:The terms of all nine (9)Cultural Arts Commissioners expired on June 13, 2016.Eight (8)of the incumbents have reapplied for their respective positions.Nine (9)applicants may be appointed to respective terms expiring June 13, 2020. ·Housing Authority Tenant Seat:Tenant Commissioner Heden’s term expired on March 31,2016. Commissioner Heden has reapplied for her seat.One (1)applicant may be appointed to a term expiring March 31, 2018. ·Library Board:Trustee Lambertson’s Term expired on June 30,2016.Trustee Lambertson has reapplied for her seat. One (1) applicant may be appointed to a term expiring June 30, 2019. ·San Mateo County Flood Control District:Commissioner Bonanno’s term expired March 31,2016.City of South San Francisco Printed on 9/1/2016Page 1 of 3 powered by Legistar™ File #:16-643,Version:1 ·San Mateo County Flood Control District:Commissioner Bonanno’s term expired March 31,2016. Commissioner Bonanno has not reapplied.One (1)applicant may be appointed to a term expiring March 31, 2020. Summary of Meeting Times, Term Lengths/Limits and Agency Purpose The Cultural Arts Commission meets on the third Thursday of every month at 7:00 p.m.in the Betty Weber Room of the Municipal Services Building located at 33 Arroyo Drive in South San Francisco.Commissioners are appointed to four (4)year terms and are limited to three (3)consecutive terms.The Commission encourages and promotes cultural arts activities within the community and acts as an advisory body to the City Council on matters pertaining to the arts and cultural affairs. The Housing Authority meets the second Monday of the month at 6:00 p.m.at 350 C Street.Non-Tenant Commissioners serve a four-year term.The Housing Authority’s services include developing,operating and maintaining housing projects and examining affordable housing issues,including unmet housing needs of low income residents. The Library Board meets on the fourth Tuesday of every month at 6:00 p.m.at the Main Library.Trustees are appointed to a three (3)year term with a limit of appointment to four (4)consecutive terms.The Library Board works in conjunction with the Library Director to develop a plan of service,evaluate and advise Council and staff on the need for services and programs and adopt policies as necessary for the administration of the Library. The San Mateo County Flood Control District (“SMCFCD”)meets quarterly on the second Tuesday of the last month in the quarter at 3:00 p.m.at South San Francisco City Hall.Members are appointed to a four (4)year term. The SMCFCD oversees financing of flood control projects in San Mateo County. Applications Received The City Clerk’s Office has confirmed the applicants listed below are electors and/or business representatives (where applicable) of the City of South San Francisco. Cultural Arts Commission (1 vacancy): ·James Bertoldi* ·Kurpita Bogdan ·Lenita Boldenwick* ·Elena Gekker (Consideration of application in City Council’s discretion) ·PaulaClaudine Hobson-Coard* ·Shane Looper* ·Amethyst Monce* ·Jessica Madrid Nickle* ·Dominador Ofrecio ·Jacqueline Pettinari* ·Florida Ventura City of South San Francisco Printed on 9/1/2016Page 2 of 3 powered by Legistar™ File #:16-643,Version:1 Cultural Arts Commission (continued) (8 term expirations, 1 vacancy): ·Cassandra Woo* ·Alvin Zachariah Housing Authority Tenant Seat (1 term expiration): ·Kurpita Bogdan ·Eloise Heden* Library Board (1 term expiration) ·Kurpita Bogdan ·Anthony Estrada Jr. ·Valerie Lambertson* ·Christopher Ramirez ·Steven Yee San Mateo County Flood Control District (1 vacancy) ·Alvin Zachariah * Denotes incumbent(s) Interview Questions Council’s standard interview questions for new applicants and incumbents will be distributed at the meeting. CONCLUSION Upon review of the applications and completion of interviews, Council may consider and entertain respective motions to appoint applicants to fill the seats on the Cultural Arts Commission and San Mateo County Flood Control District. Remaining interviews and prospective appointments to the Conference Center Authority, Housing Authority and Library Board are scheduled for September 21, 2016. Attachments: ·1 - 13 Applications ·14 - 15 Ballots City of South San Francisco Printed on 9/1/2016Page 3 of 3 powered by Legistar™ CITY COUNCIL SPECIAL MEETING SEPTEMBER 7, 2016 VOTING BALLOT CULTURAL ARTS COMMISSION VOTE FOR NINE(9) “*” denotes incumbents Applicant Please markyour vote James Bertoldi* Kurpita Bogdan Lenita Boldenweck* Elena Gekker PaulaClaudine Hobson- Coard* Shane Looper* Jessica Madrid Nickle* Amethyst Monce* Dominador Ofrecio Jacqueline Pettinari* Florida Ventura Cassandra Woo* Alvin Zachariah Signed: CITY COUNCIL SPECIAL MEETING SEPTEMBER 7, 2016 VOTING BALLOT SAN MATEO COUNTY FLOOD CONTROL DISTRICT VOTE FOR ONE (1) Applicant Please markyour vote Alvin Zachariah Signed: City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:16-538,Version:1 Proclamation for National Preparedness Month accepted by Ken Anderson, Sr., Emergency Services Manager.(Mark Addiego, Mayor) City of South San Francisco Printed on 9/1/2016Page 1 of 1 powered by Legistar™ Dated: August 24, 2016 NATIONAL PREPAREDNESS MONTH SEPTEMBER 2016 WHEREAS, this year’s theme is: “Don’t Wait. Communicate. Make Your Emergency Plan Today” begins in September with a continuing emphasis on preparedness for youth, older adults, and people with disabilities and others with access and functional needs; and WHEREAS, National Preparedness Month serves as a reminder that we all must take action to prepare, now and throughout the year, for the types of emergencies that could affect us where we live, work, and also where we visit; and WHEREAS, National Preparedness Month creates an important opportunity for every member of the City of South San Francisco community to prepare their homes, businesses, and neighborhoods for any type of emergency including natural or human caused disasters; and WHEREAS, investing in preparing ourselves, our families, homes, and businesses can reduce injuries, fatalities and economic devastation in our community and in our nation; and WHEREAS, the time and effort invested now to prepare will help you and your family navigate through, and successfully recover from what can occur at any moment; and WHEREAS, in September, people from cities and towns from all corners of our Nation will join with us to make a plan and participate in this important opportunity to increase their own preparedness. During National Preparedness Month, let us all renew our commitment to ready ourselves, our families, and our communities for any challenge. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL that September 2016 is recognized as "NATIONAL PREPAREDNESS MONTH” ________________________________ Mark Addiego, Mayor ________________________________ Pradeep Gupta, Vice Mayor ________________________________ Richard Garbarino, Councilmember ________________________________ Karyl Matsumoto, Councilmember ________________________________ Liza Normandy, Councilmember City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:16-730,Version:2 Report regarding the San Mateo County Civil Grand Jury Report on Sanitary Districts and the City of South San Francisco’s recommended response.(Brian Schumacker, Water Quality Control Plant Superintendent) RECOMMENDATION It is recommended that the City Council review the Civil Grand Jury Report entitled,"San Mateo County’s Cottage Industry of Sanitary Districts"and approve by motion the response to the Civil Grand Jury with any changes as directed by City Council. BACKGROUND/DISCUSSION The 2015-2016 San Mateo County Civil Grand Jury filed a report on June 29,2016 entitled,“San Mateo County’s Cottage Industry of Sanitary Districts”which contains one recommendation (R4 on page 48 of the Grand Jury Report) pertaining to the City of South San Francisco. The recommendation advised to “Form a committee of Board members (Westborough Water District),Council members (Daly City,South San Francisco)and staff from each to discuss the assumption of services provided by Westborough Water District into Daly City and/or South San Francisco.Evaluate alternatives and determine the benefits to ratepayers.Issue a report with recommendations and a plan by September 30,2017.Work with California Water Service Company on this initiative.” Staff has reviewed the recommendation and has prepared a response letter for City Council’s consideration (Attachment 2). In general,the response letter indicates the City of South San Francisco’s position is not in alignment with the recommendation to assume the services currently being provided by Westborough Water District because: 1.The City of South San Francisco does not provide potable water service to its residents or businesses, and is not a water utility. 2.Wastewater collection and treatment in the Westborough area would require significant capital expenditures and infrastructure expansion. 3.Regulatory agencies would likely not approve Westborough's wastewater addition to the South San Francisco-San Bruno Water Quality Control Plant (SSF-SB WQCP)because of the San Francisco Bay’s assimilative capacity limitations. The City of South San Francisco does not provide drinking water service to its residents or businesses.Potable water service is provided mostly by California Water Service and in some areas by the Westborough Water District.At this time,staff does not recommend that the City become a water utility and assuming this function from the Westborough Water District. City of South San Francisco Printed on 9/1/2016Page 1 of 2 powered by Legistar™ File #:16-730,Version:2 The City of South San Francisco,in partnership with the City of San Bruno,owns and operates the SSF-SB WQCP.There are no existing pipelines for conveying Westborough's wastewater to the SSF-SB WQCP.A multi-million dollar capital infrastructure project would have to be completed to install and connect many miles of transmission piping to the SSF-SB WQCP and to increase its treatment capacity.Connection and annual service fees would be assessed on the 3,790 connections in Westborough to cover these costs.Staff believes these endeavors would not be fiscally sound. Wastewater from the Westborough Water District is currently treated by the North San Mateo County Sanitation District in Daly City,who is an ocean discharger.The SSF-SB WQCP is a bay discharger,and from a regulatory standpoint,the San Francisco Bay Basin Plan limits the amount of new pollutants that are allowed to be discharged into San Francisco Bay.Even though the SSF-SB WQCP remains in compliance with rigid National Pollutant Discharge Elimination System (NPDES)discharge requirements,allowing additional wastewater quantities to be piped to the SSF-SB WQCP may increase trace pollutants that contribute to cumulative loadings into San Francisco Bay.It is likely that an extensive receiving water study would be required by the San Francisco Regional Water Quality Control Board in order to even consider adding Westborough’s flows to the SSF-SB WQCP.These undertakings would also not be economically practical. It is very likely that little or no financial benefit to the Westborough Water District rate payers would be realized given capital costs, associated fees and regulatory limitations. FUNDING There would be no fiscal impact associated with responding to the Grand Jury.Future funding considerations will be brought to the City Council in conjunction with implementation of any future recommendations from the Grand Jury. CONCLUSION Staff will incorporate any changes to the draft response to the Grand Jury as directed by the City Council and prepare the final letter for the Mayor’s signature.Staff will submit the response before the September 27,2016 deadline established by the Grand Jury. Attachments: 1.SMC Civil Grand Jury Report 2.Draft Response Letter to the Grand Jury Report 3.Map of Independent San Mateo County Sanitary Districts City of South San Francisco Printed on 9/1/2016Page 2 of 2 powered by Legistar™ 2015-2016 San Mateo County Civil Grand Jury 1 SAN MATEO COUNTY’S COTTAGE INDUSTRY OF SANITARY DISTRICTS Issue | Executive Summary | Introduction | Glossary | Background | Discussion | Findings Recommendations | Requests for Responses | Methodology | Bibliography | Appendixes | Responses ISSUE The 2015-2016 Grand Jury conducted an extensive investigation of a subset of the County’s sewage collection agencies—six independent special districts—and determined that having many small agencies presents problems in the areas of public accountability, fiscal responsibility, and operational competence. EXECUTIVE SUMMARY The Grand Jury sought to determine whether the multiplicity of agencies focused on sewage collection and treatment is efficient and beneficial for San Mateo County residents. Its conclusion is that it is emphatically not. San Mateo’s cottage industry of sanitary districts fails in three important ways—public accountability, fiscal responsibility, and operational competence. The Grand Jury had neither the resources nor the time to conduct an investigation of all 45 agencies involved in sewage collection and treatment in the County. Instead, it focused on the six independent districts, those with elected boards. • Bayshore Sanitary District • East Palo Alto Sanitary District • Granada Community Services District • Montara Water and Sanitary District • Westborough Water District • West Bay Sanitary District The findings and recommendations are based on these six. The Grand Jury hopes that this research will encourage additional discussion and analysis within the County on the challenges identified. Many other County services that are provided to the residents are conducted by similar uncoordinated, fragmented entities, including water, drainage (for storm water), highway lighting, and fire and police services. Public Accountability Although the board members of each of the six independent sanitary districts are theoretically accountable to the voters who elect them, in reality, the districts operate with virtually no public oversight and the “elections” are nominal at best. Information about the districts is incomplete, and the cost of service is obscured by the way it is calculated and billed. Their elected boards do little to enhance accountability due to the electoral benefit of incumbency. Most elections are not even contested. When they are, voter turnout is low. It is questionable whether most County residents are able to identify their sewer system provider. 2015-2016 San Mateo County Civil Grand Jury 2 Fiscal Responsibility The Grand Jury found no evidence of financial improprieties but many opportunities for overspending. Sewer rates are rising rapidly in most districts. Rates in San Mateo County are generally higher than other Bay Area urban areas. Five of the six districts investigated by the Grand Jury rely on property tax, although the intent of property tax is to provide funds for services that cannot be allocated to a specific user, such as fire or parks. The districts studied by the Grand Jury receive funds for collection and treatment, but operationally they manage only sewage collection. A major portion of their budget is transferred to the treatment plants, over which they may have some influence but not control. There is much redundancy in having so many disparate districts—the Grand Jury identified overlap in board costs, audit, legal, and other functions. Operational Competence Operational competence is difficult to judge. There is no “gold standard” of performance for sanitary districts. Countywide, the sanitary districts (whether County-operated, city-operated, or independent special districts) as a whole perform poorly on the primary performance metric (sewer overflows) compared to their urban neighbors. More specifically, the six independent districts, which are the focus of this report, are so small that some have no employees at all, relying only on contractors. Many of the districts’ senior staff interviewed by the Grand Jury seemed to be unaware of the technologies that have emerged in the last 20 years to improve the reliability and safety of collection systems. Their systems are old, yet plans to maintain and upgrade them are lacking. As the region’s sewage management infrastructure ages, and capital investments become imperative, these districts put citizens at risk of sharply increasing rates. The districts seem to be ill prepared to handle large-scale emergencies impacting their systems, whether that is an earthquake, landslide, or flood. There was no evidence that the districts plan for emergencies more serious than a call from the public about odors or a sewer spill. Recommendations The Grand Jury’s highest priority recommendations include: • The Boards of Bayshore Sanitary District, East Palo Alto Sanitary District, Granada Community Services District, Montara Water & Sanitary District, West Bay Sanitary District, and Westborough Water District: − Form committees with neighboring cities and sanitary districts to develop plans for the consolidation and/or assumption of services provided by the district. • Recognizing that this is likely to take some time, the Grand Jury recommends that in the meantime, the Boards of the six independent sanitary districts: − Improve information visibility on their websites. Implement and publish performance management metrics. 2015-2016 San Mateo County Civil Grand Jury 3 − Adjust rates over the next five years so that all costs are recovered from ratepayers, and the reliance on property tax is eliminated. − Mail notices to ratepayers annually with an explanation of the amount of sewer service charges being billed and the rationale. Include a notification of the elected nature of the board, the role of board members, and the process for becoming a candidate. − Establish term limits for the members of their boards of directors. − Phase out all benefits for board directors over a period of time not to exceed three years. − Evaluate the benefit of changing the timing of board director elections to November of even years. − Develop plans for coordinating resources in the event of a local or regional emergency. • San Mateo Local Area Formation Commission (LAFCo) − Initiate a service review of the Westborough Water District to examine whether its operations might be more efficient and effective if they were consolidated with another entity’s operations. The Grand Jury would have liked to recommend actions to address the County’s bigger problem of lack of comprehensive oversight for its sewer collection and treatment systems. However, the very lack of oversight makes it impossible to make any such recommendations. 2015-2016 San Mateo County Civil Grand Jury 4 TABLE OF CONTENTS ISSUE ................................................................................................................................. 1 EXECUTIVE SUMMARY .............................................................................................. 1 Public Accountability ...................................................................................................... 1 Fiscal Responsibility ....................................................................................................... 2 Operational Competence ................................................................................................ 2 Recommendations ........................................................................................................... 2 INTRODUCTION............................................................................................................. 8 GLOSSARY....................................................................................................................... 8 Specific Agencies ............................................................................................................ 9 BACKGROUND ............................................................................................................... 9 The Basics of Wastewater and Sewage ........................................................................... 9 Sewage Management: San Mateo County .................................................................... 10 Special Districts: Purpose and Dissolution .................................................................. 12 Urban Sewage Management ......................................................................................... 13 Service Area and History of Independent Sanitary Districts ........................................ 16 Sanitary Districts’ Contribution to Sewage Management ............................................ 19 Sanitary District Comparisons ..................................................................................... 20 Prior Grand Jury and LAFCo Studies of Sanitary Districts......................................... 21 DISCUSSION .................................................................................................................. 22 Public Accountability .................................................................................................... 22 Information Transparency ......................................................................................... 22 Visibility of Rates ..................................................................................................... 24 Board Tenure ............................................................................................................ 25 Public Profile ............................................................................................................ 27 Fiscal Responsibility ..................................................................................................... 27 Property Tax Subsidies ............................................................................................. 28 High and Rising Rates .............................................................................................. 30 Handling of Treatment Costs .................................................................................... 31 Rationalizing Collection and Administration Expenses ........................................... 32 Board Compensation ................................................................................................. 34 Redundant Activities ................................................................................................. 37 Operational Competence .............................................................................................. 39 No Gold Standard ..................................................................................................... 39 Age of Pipelines ........................................................................................................ 39 Sanitary Sewer Overflows ........................................................................................ 40 Dependence on Contractors ...................................................................................... 42 Use of Technologies ................................................................................................. 44 Emergency Preparedness .......................................................................................... 46 FINDINGS ....................................................................................................................... 46 RECOMMENDATIONS ................................................................................................ 47 REQUEST FOR RESPONSES ...................................................................................... 49 2015-2016 San Mateo County Civil Grand Jury 5 METHODOLOGY ......................................................................................................... 50 Documents..................................................................................................................... 50 Interviews ...................................................................................................................... 50 Site Visits ....................................................................................................................... 50 BIBLIOGRAPHY ........................................................................................................... 51 Bayshore Sanitary District ............................................................................................ 51 East Palo Alto Sanitary District ................................................................................... 51 Granada Sanitary District ............................................................................................ 52 Montara Water and Sanitary District ........................................................................... 53 West Bay Sanitary District ............................................................................................ 54 Westborough Water District ......................................................................................... 55 Election Results ............................................................................................................. 55 Bay Area Sewer Agencies ............................................................................................. 57 Other ............................................................................................................................. 58 APPENDIX A: SEWER PROVIDERS IN SAN MATEO COUNTY ........................ 60 APPENDIX B: URBAN SEWER MANAGEMENT AGENCIES ............................. 62 System Characteristics of Major Bay Area Sewer Providers ....................................... 62 Sanitary Sewer Overflows by Major Bay Area Sewer Providers ................................. 64 Sanitary Sewer Overflows per Hundred Miles of Pipeline ........................................... 64 APPENDIX C: WASTEWATER TREATMENT PLANTS SERVING INDEPENDENT SANITARY DISTRICTS ............................................................................................... 65 APPENDIX D: SEWAGE SYSTEM CHARACTERISTICS BY DISTRICT .......... 66 APPENDIX E: SANITARY SEWER OVERFLOWS BY DISTRICT BY YEAR ... 68 APPENDIX F: AGE PROFILE OF DISTRICT PIPELINES .................................... 69 APPENDIX G: SANITARY DISTRICT BUDGETS .................................................. 70 Budget for FY 2015-2016.............................................................................................. 70 Budget for FY 2014-2015.............................................................................................. 72 Budget for Bayshore Sanitary District .......................................................................... 74 Budget for Westborough Water District ....................................................................... 75 Budget for Montara Water and Sanitary District ......................................................... 76 Budget for Granada Community Services District ....................................................... 77 Budget for East Palo Alto Sanitary District ................................................................. 78 Budget for West Bay Sanitary District .......................................................................... 79 APPENDIX H: SANITARY DISTRICT BUDGET ANALYSIS FY 2015-2016 ...... 80 APPENDIX I: SANITARY DISTRICT SEWER RATES .......................................... 81 Payment Method and Calculation ................................................................................ 81 Sewer Rates and Growth—Independent Districts......................................................... 82 Sewer Rates and Growth—County-Managed Districts ................................................ 84 Sewer Rates and Growth—Combined ........................................................................... 85 2015-2016 San Mateo County Civil Grand Jury 6 APPENDIX J: BOARD COSTS FOR SANITARY DISTRICTS .............................. 86 APPENDIX K: DIRECTOR TENURE BY DISTRICT ............................................. 87 APPENDIX L: REFERENCES TO “DISASTER” OR “EMERGENCY” IN BOARD MEETING MINUTES.................................................................................................... 90 2015-2016 San Mateo County Civil Grand Jury 7 LIST OF TABLES Table 1: System Characteristics of Major Bay Area Sewer Providers ............................. 13 Table 2: Sanitary Sewer Overflows per Hundred Miles of Pipeline by Bay Area Sewer Providers ................................................................................................................................... 14 Table 3: District Establishment Date, Communities Served, and Other Areas of Responsibility ................................................................................................................................... 18 Table 4: Treatment Plants Serving Independent Districts ................................................ 20 Table 5: Population, Connections, Pipe Length, and Budgeted Revenue for Independent Districts ................................................................................................................................... 21 Table 6: Key Information Availability on District Websites ............................................ 23 Table 7: Contested and Uncontested Elections in Sanitary Districts ................................ 26 Table 8: Turnout for 2013 Sanitary District Elections ...................................................... 26 Table 9: Length of Service of Board Directors ................................................................. 27 Table 10: Sanitary Sewer Rates and Growth .................................................................... 31 Table 11: Board of Director Benefits by District .............................................................. 36 Table 12: Cost Impact of Multiple Small Districts ........................................................... 37 Table 13: Sanitary Sewer Overflows by District .............................................................. 40 Table 14: Use of Contractors by Function in Independent Sanitary Districts .................. 43 Table 15: Use of Operational and Planning & Control Technologies by District ............ 45 LIST OF FIGURES Figure 1: Sewage Treatment Laterals and Mains ............................................................... 9 Figure 2: Map of Entities in San Mateo County Handling Sewage .................................. 11 Figure 3: Sanitary Sewer Overflows by Year for West Bay Sanitary District ................. 15 Figure 4: Map of Independent Sanitary Districts in San Mateo County........................... 17 Figure 5: Sewage Mains and Wastewater Treatment ....................................................... 19 Figure 6: Miles of Pipeline by District ............................................................................. 20 Figure 7: Property Tax Bill Reflecting Sanitary Sewer Charge ....................................... 25 Figure 8: Property Tax Contribution to Total Revenue .................................................... 28 Figure 9: Impact of Property Tax in Reducing Sewer Rate .............................................. 30 Figure 10: Treatment Expense and Capital’s Share of Revenue ...................................... 32 Figure 11: Operating Expense Split between Collection and Administration/Finance .... 33 Figure 12: Collection Expense per Mile of Pipeline ......................................................... 34 Figure 13: Meeting Compensation for Directors .............................................................. 35 Figure 14: Annual Board Compensation per Director ...................................................... 36 Figure 15: Economies of Scale in Professional Services .................................................. 37 Figure 16: Pipeline Age by District .................................................................................. 40 Figure 17: Sanitary Sewer Overflows by Year ................................................................. 41 Figure 18: Sanitary Sewer Overflows per Mile of Pipe .................................................... 42 2015-2016 San Mateo County Civil Grand Jury 8 INTRODUCTION This report addresses the proliferation of sewer providers in San Mateo County. It is organized into three main sections—background, discussion, and findings and recommendations. In addition, there are sections that cover the glossary of frequently used terms, describe the methodology, list the many source materials used by the Grand Jury (bibliography), and contain data referenced in the report (the appendices). GLOSSARY • Collection: The gathering of sanitary waste from a point of connection to the point where it enters treatment. • Connection: The point where private pipes carrying sanitary waste merge into the public system of pipelines. • Effective Utility Management. A process for water and wastewater utilities to identify and address management needs. It includes metrics within 10 categories such as product quality, customer satisfaction, financial viability, and operational resiliency. The United States Environmental Protection Agency and six associations representing the United States water and wastewater sectors developed it.1 • Forced Main: Pipes through which sanitary waste is pumped. They are typically required in hilly areas where sewage must be pumped uphill. • Gravity Pipe: Pipes in which sanitary waste flows by gravity. • Lateral Pipe: The pipe from a sanitary waste generator (such as a single family residence) to a public connection. • Linear Asset Management Plan: A dynamic planning tool that uses a numerical risk model to assign a risk score to every pipe segment. The plan is used to prioritize maintenance and refurbishment activities.2 • Sanitary Sewer Charge: The cost to ratepayers for the collection and treatment of the sewage they generate. • Sanitary Sewer Overflow (SSO): A condition in which untreated sewage is discharged from a sanitary sewer into the environment prior to reaching sewage treatment facilities.3 • Supervisory Control and Data Acquisition (SCADA): A system for remote monitoring and control that operates with coded signals over communication channels.4 • Treatment: The processing of sanitary waste, separating solids from water. 1 The six associations are: the American Public Works Association, the American Water Works Association, the Association of Metropolitan Water Agencies, the National Association of Clean Water Agencies, the National Association of Water Companies, and the Water Environment Federation. WaterEUM, About the Effective Utility Management Collaborative Effort. http://www.watereum.org. 2 V. W. Housen, Linear Asset Management Plan, West Bay Sanitary District, February 2016, p. 1-1. 3 https://en.wikipedia.org/wiki/Sanitary_sewer_overflow. 4 Wikipedia entry for SCADA, https://en.wikipedia.org/wiki/SCADA. 2015-2016 San Mateo County Civil Grand Jury 9 Specific Agencies • California Association of Sanitation Agencies (CASA) • California Special Districts Association (CSDA) • California Water Environment Association (CWEA) • Local Agency Formation Commission (LAFCo) BACKGROUND The Basics of Wastewater and Sewage Wastewater is water whose quality has been adversely affected by human activity.5 Wastewater can originate from homes, industries, commercial activity, agriculture, surface runoff, storm water, or infiltration of fresh water into sewage systems. The wastewater that originates from homes and businesses is commonly called sewage and is carried in sanitary sewer pipes. Sewage is collected from its source and then travels to a treatment plant. This distinction between collection and treatment is important for understanding the activities of sanitary districts. Along the way, sewage first passes through indoor plumbing, before it flows into private building laterals as shown in Figure 1. In most cases, there is a cleanout close to the property line. This cleanout typically represents the border between what the homeowner (for example) is responsible for and where the sewage enters the public sewer main. Figure 1: Sewage Treatment Laterals and Mains Source: City of Eureka, Wastewater Collection, Accessed May 6, 2016. http://ci.eureka.ca.gov/depts/pw/wastewater/default.asp. 5 Wikipedia entry for wastewater. https://en.wikipedia.org/wiki/Wastewater. 2015-2016 San Mateo County Civil Grand Jury 10 Sewage flows through sewer mains (often called pipes or pipelines) by gravity or pumping. Gravity does not work if the sewage must flow uphill to reach the treatment plant. In these cases, pumps are required, along with forced mains, which are pipes that are under pressure because their contents are moving uphill. Because the primary job of sanitary districts is pipe maintenance, this report will often speak of the length of pipe, which will mean both gravity and forced mains unless specified otherwise. Eventually the sewage reaches a treatment plant. Along the way, the sewer mains pick up wastewater from other homes, businesses, and factories. This report will use the term sewage to refer to the primary wastewater streams produced in San Mateo County. Sewage Management: San Mateo County The collection of sewage in San Mateo County is handled by 36 agencies (including County and city sewage collection systems in addition to the six independent sanitary districts).6 This is largely a legacy of the County’s origins as a rural backwater to San Francisco. Few of these agencies treat the waste; instead, there are nine treatment plants operated by cities or joint powers agencies, with whom the districts contract to provide this service. The four major types of districts handling sewage collection are visible in the map (see Figure 2). The County-managed districts are in yellow, and the independent districts in green. The city- operated systems are shown in pink, and the subsidiary districts are in orange. 6 See Appendix A: Sewer Providers in San Mateo County. 2015-2016 San Mateo County Civil Grand Jury 11 Figure 2: Map of Entities in San Mateo County Handling Sewage Source: San Mateo Local Agency Formation Commission. 2015-2016 San Mateo County Civil Grand Jury 12 Special Districts: Purpose and Dissolution According to LAFCo of San Mateo County, “A special district is an agency of the State formed under general law or a special legislative act to provide governmental services such as sewer, water, fire protection, recreation, healthcare, police protection, mosquito and vector control, and other services. There are three main types of special districts: • County-governed special districts are administered by the Board of Supervisors and are operated by the County of San Mateo. • Independent special districts have locally elected board members and their own employees. • Subsidiary special districts are governed by their respective city councils.”7 San Mateo County has sanitary districts that fall into all three types. There are ten County- governed special districts, the largest being the Fair Oaks Sewer Maintenance District. There are six independent special districts, the focus of this report. There are also subsidiary special districts governed by city councils, such as North San Mateo County Sanitation District. The number of districts and the complexity of the relationships among them make it difficult to grasp their scope, activities, and performance. The process for dissolving a district is authorized by State law and processed by LAFCo accordingly. LAFCo can initiate dissolution and consolidation as can the County, a city, a special district, school district, registered voters, or landowners. LAFCo operates “in the context of State policies that favor multipurpose agencies or regional agencies over several layers of limited purpose agencies, particularly in urban areas.”8 LAFCo must first assess the district’s sphere of influence.9 If LAFCo determines that the district has a zero sphere of influence, other cities or districts are in a position to take over the responsibilities of the district, to the benefit of the County’s residents. Once LAFCo has declared that a district has a zero sphere of influence, it has the authority to initiate proposals that include dissolution or consolidation. Dissolution of any special district is a complex undertaking. Entities that can assume the activities of the dissolving district must be identified. The political will to take on the challenge of proponents of the district must be present. Methodologies must be developed to apportion any property tax previously allocated to the district. These obstacles mean that not all LAFCo recommendations to consolidate or dissolve districts lead to changes. 7 San Mateo Local Area Formation Commission, Special Districts in San Mateo County, Accessed May 1, 2016. http://lafco.smcgov.org/special-districts-san-mateo-county. 8 Martha Poyatos, Executive Officer, San Mateo LAFCo, Letter re Municipal Service Review and Sphere of Influence Update for the East Palo Alto Sanitary District, February 17, 2009, p. 2. 9 “A sphere of influence is a planning boundary outside of an agency’s legal boundary (such as the city limit line) that designates the agency’s probable future boundary and service area. Factors considered in a sphere of influence review focus on the current and future land use, the current and future need and capacity for service, and any relevant communities of interest.” Source: California Association of Local Agency Formation Commissions, “What Is LAFCo.” http://www.calafco.org/about.htm. 2015-2016 San Mateo County Civil Grand Jury 13 Urban Sewage Management Most urban areas in California have a single large sewage collection and treatment provider (see Table 1). For example, San Francisco, San Jose, and Oakland each have a single agency that handles both sewage collection and treatment. In total population and miles of sewer mains San Mateo County is similar to San Jose and San Francisco. However, a large, centrally managed agency is not only the norm for individual big cities. The Central Contra Costa County Sanitary District covers 13 East Bay cities from Martinez to San Ramon. Table 1: System Characteristics of Major Bay Area Sewer Providers Population Forced Mains (Miles) Gravity Mains (Miles) Residential Rate ($ / Year)a San Mateo County 765,135 104.4 1,898 $902b San Jose City 998,537 13.0 2,268 $405 Central Contra Costa 476,400 23.0 1,519 $471 San Franciscoc 864,816 1,000 $187 Oakland 406,253 0.2 920 $705 Sources: See Appendix B: Urban Sewer Management Agencies. Notes: aThese rates came from the respective sewer providers’ websites. They do not include other potential forms of income or revenue such as property taxes, bond income, or permit fees. bCounty and independent districts only; excludes rates charged by cities. This is the average rate ranging from $360 for Harbor Industrial Sewer Maintenance District to $1,595 for Burlingame Hills Sewer Maintenance District. cData on Forced Mains not available. The complexity of discussing rates in San Mateo County will be covered later in this report. Nonetheless, the rates charged to residences in San Mateo County appear to be higher than those charged by other large urban areas. San Mateo County agencies lag on the primary measure of sewer system performance, known as the sanitary sewer overflow (SSO).10 A sanitary sewer overflow occurs when untreated sewage is discharged from a sewer pipe into the environment prior to reaching sewage treatment facilities. Frequent causes of SSOs include: • Blockage of sewer lines • Infiltration of storm water into sewer lines during heavy rainfall • Malfunction of pumping station lifts or electrical power failure • Broken sewer lines 11 10 See Appendix E: Sanitary Sewer Overflows by District by Year. 11 Wikipedia entry for sanitary sewer overflow. https://en.wikipedia.org/wiki/Sanitary_sewer_overflow. 2015-2016 San Mateo County Civil Grand Jury 14 SSOs vary in severity depending on the volume of material released and whether the untreated sewage reached a water source. SSOs by law must be reported to the California Environmental Protection Agency, State Water Resources Control Board.12 Overflows contaminate drinking water and cause thousands of cases of gastrointestinal illness in the United States each year,13 resulting in beach closures, swimming restrictions, prohibitions on shellfish harvesting, and fish kills. Countywide, the sanitary districts in San Mateo County collectively have significantly more sanitary sewer overflows than the other large urban areas in the San Francisco Bay Area (see Table 2). They have twice as many as San Jose, and nearly three times as many as Central Contra Costa Sanitary District. San Mateo County agencies have no centralized oversight over sewer management, so have no obvious method to address this problem. Table 2: Sanitary Sewer Overflows per Hundred Miles of Pipeline by Bay Area Sewer Providers 2013 2014 2015 Average As %age of SMC San Mateo County 9.3 11.9 7.7 9.6 100% San Jose City 5.5 4.4 3.2 4.4 45% Central Contra Costa 3.0 3.2 2.8 3.0 31% Oakland 9.1 10.8 9.3 9.7 101% Sources: See Appendix B: Urban Sewer Management Agencies. Note: San Francisco operates a combined sewer and storm water system and is therefore not required to report sanitary sewer overflows to the State Water Resources Control Board. The high level of overflows in San Mateo County is not the inevitable result of aging infrastructure, although that is a risk factor for overflows. Professional and proactive management of the infrastructure is critical. A good illustration of this can be found at West Bay Sanitary District, where 58% of its pipelines were installed before 1960 and 24% were installed before 1940.14 Its performance on sanitary sewer overflows in the late 2000s was poor. Experienced management, proactive assessment of its system, thoughtful prioritization of its capital projects, use of new technologies, and programs to reduce blockages have reduced SSOs from the rate of 50 to 60 per year to 5 to 15 (see Figure 3).15 12 “To provide a consistent, statewide regulatory approach to address SSOs, the State Water Resources Control Board (State Water Board) adopted Statewide General Waste Discharge Requirements (WDRs) for Sanitary Sewer Systems, Water Quality Order No. 2006-0003 (Sanitary Sewer Systems WDR) on May 2, 2006. The Sanitary Sewer Systems WDR requires public agencies that own or operate sanitary sewer systems to develop and implement sewer system management plans and report all SSOs to the State Water Board’s online SSO database.” Source: State of California Environmental Protection Agency, State Water Resources Control Board, Sanitary Sewer Overflow Reduction Program. http://www.waterboards.ca.gov/water_issues/programs/sso/index.shtml. 13 Wikipedia entry for sanitary sewer overflow. https://en.wikipedia.org/wiki/Sanitary_sewer_overflow. 14 See Appendix F: Age Profile of District Pipelines. 15 Officials from West Bay Sanitary District: interview by the Grand Jury. 2015-2016 San Mateo County Civil Grand Jury 15 Figure 3: Sanitary Sewer Overflows by Year for West Bay Sanitary District Source: Appendix E: Sanitary Sewer Overflows by District by Year. Note: West Bay reported 68 SSOs in 2007 in a data submission to the Grand Jury, although the California Water Board recorded only 46. There can be adverse consequences to mismanaging sewer systems. On April 10, 2008, the U.S. Environmental Protection Agency “issued enforcement actions requiring nine sewage collection systems in the Sausalito and Mill Valley areas of southern Marin County, Calif., to address chronic sewage spills, improve sewer maintenance and implement long-term programs to renew aging sewer pipes.”16 In 2011, the U.S. Environmental Protection Agency announced the settlement of a case against seven municipalities in the East Bay Municipal Utility District. According to a news release issued on March 15, 2011, “the seven municipalities . . . have cooperatively agreed to update aging infrastructure and collection systems that have been major contributors to overflows.”17 This initiative eventually resulted in a consent decree issued in June 2014, requiring the affected communities to spend $300 million over a 22-year period to upgrade their sewer collection and treatment facilities.18 Closer to home, the City of San Mateo, Hillsborough, and the Crystal Springs County Sanitation District were ordered “to cease and desist discharging waste from their respective sanitary sewer systems in violation of requirements” by the California Regional Water Quality Control Board in 16 United States Environmental Protection Agency, News Releases from Region 9, US EPA Orders Marin County Sewage Collection Systems to Address Chronic Sewage Spills, April 8, 2008. https://yosemite.epa.gov/opa/admpress.nsf/0/503212C4814C8FF585257427006B9568. 17 United States Environmental Protection Agency, News Releases from Region 9, Bay Area Municipalities Ordered to Protect San Francisco Bay from Sewer Discharges, March 15, 2011. https://yosemite.epa.gov/opa/admpress.nsf/0/c221b52e5e4823d58525785300718f88?OpenDocument. 18 City of Oakland, Landmark Clean Water Agreement, Regional East Bay Sewer Consent Decree 2014, Accessed May 1, 2016. http://www2.oaklandnet.com/Government/o/PWA/s/Sewer/ConsentDecree/index.htm. 01020304050607080 2007 2008 2009 2010 2011 2012 2013 2014 2015 2015-2016 San Mateo County Civil Grand Jury 16 2009.19 San Mateo’s Daily Journal reported in its March 14, 2016, issue that the cost of the associated overhaul is $770 million over 10 years.20 This translates to a cost of $5,923 per person in the affected area.21 Service Area and History of Independent Sanitary Districts The Bayshore Sanitary District is at the north end of the County, with Westborough nearby (see Figure 4). Montara and Granada border each other on the coast side of the County. Similarly, West Bay and East Palo Alto adjoin each other, at the south end of the County. 19 California Regional Water Quality Control Board, San Francisco Bay Region, Cease and Desist Order No. R2- 2009-0020, March 11, 2009, p. 1. http://www.waterboards.ca.gov/rwqcb2/board_decisions/adopted_orders/2009/R2-2009-0020.pdf. 20 Samantha Weigel, “Sewer Overhaul to Cost $770M, San Mateo Launching Improvement Program for Thousands of Customers,” Daily Journal, March 14, 2016. 21 The population served by San Mateo’s sewer system is 130,000 according to the San Mateo Sewer System Management Plan, dated December 7, 2015, p. 4. http://www.cityofsanmateo.org/DocumentCenter/View/47516. Dividing $770,000,000 by 130,000 yields $5,923 per person. A more accurate calculation would use number of connections rather than population to estimate the cost to households of this capital plan, but connection data was not available through website research. 2015-2016 San Mateo County Civil Grand Jury 17 Figure 4: Map of Independent Sanitary Districts in San Mateo County Source: San Mateo County Local Agency Formation Commission. 2015-2016 San Mateo County Civil Grand Jury 18 The six independent sanitary districts have a long history (see Table 3). They were established over the course of six decades in response to population growth in San Mateo County. For example, a subdivision developer in South San Francisco founded the most recently established district, Westborough, in 1961. Some districts are responsible for more than just collecting sewage. Montara and Westborough also provide drinking water, while Granada recently added parks and recreation to its scope. Three of the districts provide garbage collection services within their districts. These other missions have little synergy with the core mission of sewage collection, although they do allow the sharing of some costs, such as board expenses. Table 3: District Establishment Date, Communities Served, and Other Areas of Responsibility District Date Founded Communities Served Other Areas of Responsibility West Bay Sanitary District 1902 City of Menlo Park, Atherton, and Portola Valley, and areas of East Palo Alto, Woodside and unincorporated San Mateo and Santa Clara counties Solid Wastea Bayshore Sanitary District 1925 Portions of Daly City and Brisbane None East Palo Alto Sanitary District 1939 City of East Palo Alto and portion of Menlo Park None Granada Community Services District 1958 Unincorporated areas of El Granada, Princeton, Princeton-by-the-Sea, Clipper Ridge, and Miramar; northern portion of the City of Half Moon Bay Solid Waste, Parks & Recreation (since 2014) Montara Water & Sanitary District 1958 Montara, Moss Beach Solid Waste, Water (since 2003) Westborough Water District 1961 South San Francisco west of 280 to Skyline Boulevard and South of King Drive in Daly City to San Bruno Water Source: District websites. Note: aSolid waste includes the pickup and disposal of trash, recyclables, and compostable materials. This activity is typically subcontracted via multi-year contracts. 2015-2016 San Mateo County Civil Grand Jury 19 Sanitary Districts’ Contribution to Sewage Management All the independent districts are responsible for the collection but not the treatment of sewage. In Figure 5 below, they are responsible for the red line labeled “Sewer Main.” Customers are responsible for the black “Customer Collection Line” and orange “Lateral.” Figure 5: Sewage Mains and Wastewater Treatment Source: Hi-Desert Water District, Wastewater Reclamation Project, http://protectgroundwater.org/wp- content/uploads/2014/01/Wastewater-treatment-system-graphic.jpg. Sewage in San Mateo County discharges either into the Bay or into the Pacific Ocean. The districts rely on different treatment plants for waste treatment depending on their location (see Table 4). Bayshore, East Palo Alto, and Westborough Districts rely on neighboring cities’ waste treatment plants (San Francisco, Palo Alto, and Daly City respectively). Granada and Montara Districts, along with the City of Half Moon Bay, own the Sewer Authority Mid- Coastside (SAM) treatment plant. West Bay, along with the Cities of Belmont, San Carlos, and Redwood City, has a similar arrangement, owning but not operating Silicon Valley Clean Water treatment plant. Districts that share ownership also share a portion of the treatment plants’ capital costs to cover both replacements and improvements. The treatment plants are typically governed by boards composed of members from the city councils or independent sanitary districts that own them. Managing its relationship with its treatment plant is a high priority to the independent districts, as it is to the city-managed districts that do not operate their own treatment plants.22 This is true partly because a significant component of their budget is allocated to treatment, as will be described later. It is also true because the plans and programs of the treatment plants can end up impacting sewage collection. 22 The County of San Mateo, as operator of ten sewer districts, is not party to any of the treatment plant Joint Powers Agreements. The County purchases capacity from nearby cities and pays to wheel the effluent through the city sewer mains. Sewer Main 2015-2016 San Mateo County Civil Grand Jury 20 Table 4: Treatment Plants Serving Independent Districts Treatment Plant Independent District Other Cities Served by Treatment Plant San Francisco Public Utilities Commission Southeast Treatment Plant Bayshore San Francisco North San Mateo County Sanitation District, which contracts with City of Daly City Wastewater Treatment Plant Westborough Daly City Sewer Authority Mid-Coastside (SAM) Granada, Montara Half Moon Bay Silicon Valley Clean Water West Bay Belmont, Redwood City, San Carlos Regional Water Quality Control Plant (Palo Alto) East Palo Alto Los Altos, Los Altos Hills, Mountain View, Palo Alto, Stanford Source: See Appendix C: Wastewater Treatment Plants Serving Independent Sanitary Districts. Sanitary District Comparisons The independent districts oversee small collection systems (see Figure 6). The six districts include about 15% of the County’s population and manage 343 miles of pipeline, or approximately 17% of the County’s total. West Bay’s system is significantly larger than the remaining five districts’ systems taken altogether. Figure 6: Miles of Pipeline by District Source: See Appendix D: Sewage System Characteristics by District. 0.0 25.0 50.0 75.0 100.0 125.0 150.0 175.0 200.0BayshoreWestboroughMontaraGranadaEast Palo AltoWest Bay 2015-2016 San Mateo County Civil Grand Jury 21 It is tempting to discount these districts as being inconsequential. Their budgets however are substantial (see Table 5). Table 5: Population, Connections, Pipe Length, and Budgeted Revenue for Independent Districts Bayshore West- borough Montara Granada East Palo Alto West Bay Population (#) 4,513 14,050 6,012 6,000 29,000 55,000 Connections (#) 1,456 3,790 1,937 2,560 3,864 20,000 Pipeline (Miles) 16.0 20.7 29.5 34.0 35.0 208.0 2015-16 Budgeted Revenue (Million $) $1.280 $2.523 $2.690 $2.524 $4.915 $23.750 Sources: See Appendix D: Sewage System Characteristics by District and Appendix G: Sanitary District Budgets. For the rest of this report, the districts will be listed on the basis of their size as measured by the length of pipelines they operate—with Bayshore the smallest, followed by Westborough, Montara, Granada, East Palo Alto, and West Bay. Prior Grand Jury and LAFCo Studies of Sanitary Districts The San Mateo County Grand Jury has investigated only one of these districts in the last 15 years. The 2002-2003 Grand Jury released a report with the results of an investigation into the East Palo Alto Sanitary District. One of the main recommendations was that the district be merged with another district, specifically West Bay Sanitary District. The East Palo Alto Sanitary District disagreed; consolidation did not happen. LAFCo conducts municipal service reviews of districts on a periodic basis. Its recent studies include: • September 16, 2015: North County Cities and Special Districts, including Bayshore Sanitary District − “Reaffirm a zero sphere of influence for the Bayshore Sanitary District, indicating the District should be dissolved and the Cities of Brisbane and Daly City would become ‘successor agencies.’” 23 • February 17, 2009: East Palo Alto Sanitary District − “The LAFCo adopted sphere of influence designation for the EPASD is for dissolution and annexation of the territory to WBSD.” 24 23 San Mateo County Local Agency Formation Commission, North County Cities & Special Districts, Municipal Service Review and Sphere of Influence Study, September 16, 2015, p 79. http://lafco.smcgov.org/sites/lafco.smcgov.org/files/documents/files/North%20County%20MSR%20-%209-16-15_3.pdf. 24 Martha Poyatos, Executive Officer, San Mateo County Local Agency Formation Commission, Municipal Service Review and Sphere of Influence Update for the East Palo Alto Sanitary District, February 17, 2009, p. 17. http://lafco.smcgov.org/sites/lafco.smcgov.org/files/documents/files/msrepasdfinalwithattachments_0.pdf. 2015-2016 San Mateo County Civil Grand Jury 22 • February 12, 2009: West Bay Sanitary District − “Based on information in the municipal service review and absence of significant changes since the sphere was adopted that merit amendment to the sphere of influence, it is recommended that the WBSD sphere be reaffirmed as adopted in 1985.”25 • October 7, 2008: City of Half Moon Bay and Unincorporated Midcoast, including Granada Sanitary District and Montara Water and Sanitary District − LAFCO recommended “a single regional water and sewer district to serve the unincorporated and incorporated study area delineated by the urban/rural boundary.”26 It assigned spheres of consolidation to Montara Water and Sanitary District, Granada Sanitary District (as it was named then), and Coastside County Water District. These sphere designations would allow for consolidation of Montara Water and Sanitary District with Granada Sanitary District, and formation of the Midcoast Community Services District to add Park and Recreation to existing services of water, sewer, and solid waste disposal. In summary, LAFCo recommended the consolidation of Granada Sanitary District and Montara Water and Sanitary District in October 2008, and the dissolution of Bayshore and East Palo Alto Sanitary Districts in 2009. DISCUSSION The Grand Jury’s analysis focused on three issues: public accountability, fiscal responsibility, and operational competence. Public Accountability Information Transparency Seeking data from the independent sanitary districts for comparative purposes is challenging. Each district has its own website, and the layouts differ. The most basic data—meeting minutes, budgets, rates, financial audits, and sewer system management plans—is often missing or outdated. Table 6 highlights the gaps (shaded) in core information for each of the six districts studied. For example, the Grand Jury would expect the minutes of each board meeting to be reviewed and approved at the following board meeting, and then posted within days thereafter (the “Goal” for Meeting Minutes). In late April, the Grand Jury checked the websites of each independent 25 San Mateo County Local Agency Formation Commission, Municipal Service Review and Sphere of Influence Update, West Bay Sanitary District, February 12, 2009, p. 17. http://lafco.smcgov.org/sites/lafco.smcgov.org/files/documents/files/MSRwestbaysanitaryfebruary_0.pdf. 26 Martha Poyatos, Executive Officer, San Mateo County Local Agency Formation Commission, Sphere of Influence Update, City of Half Moon Bay and Unincorporated Midcoast, October 7, 2008, p. 12. http://lafco.smcgov.org/sites/lafco.smcgov.org/files/documents/files/2008_10_08_lafco_soicoastsideoct7wattachme nts_1.pdf. 2015-2016 San Mateo County Civil Grand Jury 23 district and learned that only Westborough and West Bay had minutes for the March meeting posted. East Palo Alto and Bayshore had minutes from the February meeting posted, while Granada’s dated from the January meeting. Montara’s minutes are embedded in the Agenda Packets for meetings, which requires searching Agenda Packets to find whether minutes for a prior meeting have been included. Relative to the “Goal” of having meeting minutes posted through March 2016, only Westborough and West Bay met the standard. The State Water Resources Control Board Order No. 2006-0003-DWQ requires Sewer System Management Plans. In spite of this order, only two districts had readily available documents on their website.27 Table 6: Key Information Availability on District Websites Times Goala Bayshore West- borough Montara Granada East Palo Alto West Bay Meeting Minutes Through March 2016 No Yes No No No Yes Minute History 2010 On Yes Yes Nob No Yes Yes Budget 2015-2016 Yes Yes Yes Yes Yes Yes Rates Yes No Yes Yes No Yes Yes Rate History 2010 On No No No No No Yes Financial Audit 2015 Yes Yes Yes No No Yes Sewer System Management Plan 2011 On Yes No No No No Yes Performance Metrics 2014- 2015 No No No No No Yes Sewer System Overflows Current No No No No No No Sources: District websites as of April 29, 2016. Notes: Some districts updated their websites after April 29, 2016 following Grand Jury queries regarding information availability. aGoal established by Grand Jury based on timely information availability. bMontara’s minutes are embedded in agenda packets, requiring a search through multiple packets to locate a specific meeting’s minutes. 27 State Water Resources Control Board, Order No. 2006-2003-DWQ, Statewide General Waste Discharge Requirements for Sanitary Sewer Systems, May 2, 2006, p. 2. 2015-2016 San Mateo County Civil Grand Jury 24 The information that is available is structured differently. Each district has its own methodology for preparing and presenting budgets even though the activities of each are roughly comparable. The Grand Jury developed a process to convert each of the six district’s budgets to a common and therefore comparable format that was then confirmed with each district.28 Visibility of Rates Sewer rates are difficult to compile, even for residential single-family dwellings: 29 • Districts have the freedom to develop a unique rate structure. For example, Bayshore, Westborough, and Montara have a rate per unit of water consumed during winter months. Each customer pays a unique amount.30 These districts may lose revenue from water conservation efforts and trends towards drought tolerant gardens that reduce water usage but have limited impact on sewage collection and treatment costs. • The other districts (Granada, East Palo Alto, and West Bay) establish a fixed rate for each type of user (single family residential, multi-family residential, restaurant, etc.). As a result of these differences, it is nearly impossible to compare the average customer’s bill between Granada and Montara, two neighboring districts. • Historical information on average customer bills is very difficult to locate, especially for those who charge based on water consumption. In addition, residents of the independent districts are billed through a line item on their property tax statement, which means that many people are unaware of the cost of their sewer service (see Figure 7). This West Bay Sanitary District customer has a $973 charge for “West Bay Sani Dist” on its 2015-2016 tax bill. 28 See Appendix G: Sanitary District Budgets. 29 See Appendix I: Sanitary District Sewer Rates. 30 For ease of comparison, this report uses the term rate to refer to both the fixed annual charge as well as the average customer bill calculated from water usage. 2015-2016 San Mateo County Civil Grand Jury 25 Figure 7: Property Tax Bill Reflecting Sanitary Sewer Charge Source: Grand Juror Board Tenure The districts state that having elected board members gives them an important link to the community.31 Unfortunately, based on the general trend of uncontested elections, the communities in which they operate appear to have little interest in the elections (see Table 7). Uncontested elections are those in which the number of candidates are the same or less than the number of openings. These elections are not placed on the ballot, and the candidates are automatically approved. Contested elections are those in which the contest is placed on the ballot and the public votes. Sixty-five percent of elections in the last eight election cycles were uncontested for the independent sanitary districts. 31 Officials from independent sanitary districts: interviews by the Grand Jury. 2015-2016 San Mateo County Civil Grand Jury 26 Two of the districts, Bayshore and Westborough, have not had contested elections since 2000. West Bay has not had a contested election in over 10 years. This suggests that public participation in the selection is minimal. The only district with regularly contested ballots is East Palo Alto. Table 7: Contested and Uncontested Elections in Sanitary Districts District 2001 2003 2005 2007 2009 2011 2013 2015 Bayshore Westborough Montara Granada East Palo Alto West Bay Uncontested Contested Deferreda Source: Data provided by the San Mateo County Elections website, shapethefuture.org as well as Elections division staff. See Appendix K: Director Tenure by District for detailed sources. Note: aGranada and Montara chose to change their election years to even-numbered years, so deferred 2015 elections to 2016. Even in those instances where elections are contested, the turnout is low. Turnout for the most recently contested elections, in 2013, was less than a quarter of the registered voters (see Table 8). Table 8: Turnout for 2013 Sanitary District Elections Percentage of Registered Voters Montara 25.9% Granada 24.0% East Palo Alto 14.1% Source: San Mateo County Elections website, shapethefuture.org. There is an important danger resulting from this. Ratepayers are responsible to support rates that allow for necessary capital improvements. In a small district, with few active voters, it is possible for a very few people to influence decisions on topics such as rates. In the last elections in 2013 in Montara and Granada, the winners were separated from the losers by 111 and 15 votes respectively.32 With these conditions, board turnover is low. The average tenure of the board members on all six boards is over 10 years (see Table 9). Since the membership term is four years on all boards, this means that the average board member is serving on his or her third term. There is value in having experience on any board, but there is also the risk of resistance to new ideas. 32 San Mateo County, Statement of Vote, San Mateo County Consolidated Municipal, School, and Special District Election, November 5, 2013. https://www.shapethefuture.org/elections/results/2013/nov/official/Nov2013SOV.pdf. 2015-2016 San Mateo County Civil Grand Jury 27 Table 9: Length of Service of Board Directors Average Length of Service in Years Longest Length of Service in Years Bayshore 16.6 23.3 Westborough 13.8 26.6 Montara 8.6 12.6 Granada 9.7 18.6 East Palo Alto 9.0 12.6 West Bay 6.8 16.6 Source: See Appendix K: Director Tenure by District. Note: Measured as of June 30, 2016. Public Profile Districts have minimal interaction with the public compared to, for example, water districts. Bills are not established based on a metering of sewage, so customers have few reasons to question the billed amount. Customers do not start and stop sewer service as they do with other utilities. Customers do not have drought-related sewer budgets. A survey commissioned by the East Palo Alto Sanitary District in 2012 illustrates the point. They learned that 38% of residential respondents stated they were familiar with the district. However, only two thirds of these realized that it provides sewer services.33 Only eight out of 500 residential property owners surveyed and none of the 100 commercial property owners surveyed knew the district sewer rate.34 The Grand Jury suspects that East Palo Alto is not unique and that most independent sanitary district customers could not name their sanitary sewer provider. Fiscal Responsibility The districts receive revenue from four primary sources: • Property Tax: Five of the six independent districts receive property tax. • Sewer Service Charges: These charges are paid through a line item on property tax bills. • Permit and Connection Fees: The districts collect modest amounts of money in permit and connection fees .35 Developers and others connecting to the system for the first time or upgrading a connection pay these fees. • Interest on Reserves: The districts collect minimal amounts of interest on the money they hold in their reserves. 33 Jatelo Productions, East Palo Alto Sanitary District Public Relations Plan, November 7, 2013, p. 104. http://www.epasd.com/home/showdocument?id=324. 34 Ibid., p. 110. 35 Bayshore, Montara, and West Bay budgeted between $5,000 and $50,000 in permit fees in FY 2015-2016. All districts except Westborough collected connection fees in the $14,000 to $50,000 range except Montara, which budgeted for over $300,000 in FY 2015-2016. Montara recently expanded opportunities for new sewer connections, which is what is driving this unusually large amount. See Appendix G for detail. 2015-2016 San Mateo County Civil Grand Jury 28 This report focuses on Property Tax and Sewer Service Charges, since they constitute more than 80% of the total income of the independent sanitary districts. Property Tax Subsidies The contribution of property tax to the districts’ revenue is meaningful, particularly for Bayshore and Granada (see Figure 8). All independent districts except West Bay were funded through property tax prior to the passage of Proposition 13. As a result, they continue to receive a share of the property tax collected by San Mateo County from all County residents. Although it received property taxes in earlier years, West Bay did not receive property tax funding in fiscal year 1977-1978, and as a result of Proposition 13 and its subsequent enabling legislation, the district continues not to receive any property taxes.36 Figure 8: Property Tax Contribution to Total Revenue Source: See Appendix H: Sanitary District Budget Analysis FY 2015-2016. Notes: Granada’s relatively large portion of revenue due to Permit & Connection Fees is a result of a repayment of monies advanced to the Assessment District. Montara’s large portion is due to the processing of a backlog of connection requests. 36 The County Controller’s Office was unable to determine the reason that West Bay received no property tax in 1977-1978 although it confirmed that it had received property tax in some prior years. 0%20%40%60%80%100%Bayshore Westborough Montara Granada East Palo Alto West Bay Sewer Service ChargesProperty TaxPermit & ConnectionFeesInterest on Reserves 2015-2016 San Mateo County Civil Grand Jury 29 One of the goals of Proposition 13 was to eliminate property tax for government-provided services for which the customer could be charged directly. California Government Code Section 16270 states: The Legislature finds and declares that many special districts have the ability to raise revenue through user charges and fees and that their ability to raise revenue directly from the property tax for district operations has been eliminated by Article XIIIA of the California Constitution. It is the intent of the Legislature that such districts rely on user fees and charges for raising revenue due to the lack of the availability of property tax revenues after the 1978-79 fiscal year. Such districts are encouraged to begin the transition to user fees and charges during the 1978-79 fiscal year.37 Almost 40 years later, five of the independent sanitary districts continue to rely heavily on property tax revenue while also collecting sewer service charges. Their budgets for FY 2015- 2016 include $1,733,000 for property tax receipts.38 In 2013, Granada Sanitary District took a small step towards reducing its heavy reliance on property tax by adding Parks and Recreation to its scope, becoming the Granada Community Services District. The resolution applying for its reorganization, contained the following statement: “WHEREAS, the District receives property tax as well as sewer and garbage fees and it is currently intended that Park and Recreation services would initially be funded with a portion of the property tax the District receives . . .”39 If the five districts did not receive a share of the 1% property tax, their rates would be more comparable with districts such as West Bay (see Figure 9). Without the property tax, the five districts’ ratepayers would pay more and County taxpayers’ tax would be allocated elsewhere. 37 California Government Code Section 16270, http://www.leginfo.ca.gov/cgi- bin/displaycode?section=gov&group=16001-17000&file=16270-16271. 38 See Appendix G: Sanitary District Budgets. 39 Granada Sanitary District, Resolution No. 2013-003, Resolution of Application for a Reorganization of the Granada Sanitary District into a Community Services District. http://granada.ca.gov/wp- content/uploads/2014/02/2013-04-18_RESOLUTION_for_LAFCO_Application.pdf. 2015-2016 San Mateo County Civil Grand Jury 30 Figure 9: Impact of Property Tax in Reducing Sewer Rate Source: See Appendix H: Sanitary District Budget Analysis FY 2015-2016. Note: The impact of the property tax is calculated by dividing the total property tax by the number of customers in the district. This is an approximation of the impact of the tax since not all customers are subject to the same rate structure. High and Rising Rates Sewer Service Charges are the primary source of revenue for the independent sanitary districts, ranging from 51% for Granada to 96% for West Bay. Sewer Service Charges come from rates paid by users. As indicated earlier, the rates in San Mateo County for the 10 County-run and six independent districts are greater than those for comparable urban areas in the Bay Area.40 Those rates range from $187 to $705, while independent sanitary district rates range from $402 to $973 (see Table 10). Rates for the County-run districts have averaged 25% growth in the last five years (from 2010-2011 to 2015-2016). During the same period, the average of the independent sanitary districts was 20%. The consumer price index for the San Francisco Bay Area grew approximately 14% during the same period. 40 As noted earlier, the rates do not include other potential revenue sources such as property taxes. $- $200.00 $400.00 $600.00 $800.00 $1,000.00 $1,200.00 Average Residential Rate Property Tax/Customer 2015-2016 San Mateo County Civil Grand Jury 31 Table 10: Sanitary Sewer Rates and Growth Name 2015-2016 % Growth 2011 to 2016 Bayshore Sanitary District $613 0% Westborough Water District $512 29% Montara Water & Sanitary District $810 11% Granada Community Services District $402 10% East Palo Alto Sanitary District $575 19% West Bay Sanitary District $973 50% Average Rate and Growth of Independent Districts $648 20% Average Rate and Growth of County-Managed Districts $1,072 25% Consumer Price Index, San Francisco Bay Area 14% Source: Appendix I: Sanitary District Sewer Rates. Rate increases are subject to Proposition 218, which requires that sanitary districts hold a public hearing, mail advance notice of the hearing, and conduct a ballot protest proceeding before any proposed rate increase.41 This means that districts must have ratepayer support to increase rates, even in cases where rate increases are required to allow agencies to comply with state mandates to avoid sanitary sewer overflows. Ratepayer protest is more likely in smaller systems with lower numbers of ratepayers.42 The challenge for ratepayers is judging whether the rate they are being charged is appropriate or not. The fact that the rate is rising rapidly could be due to the district’s failure to raise rates in earlier years by deferring capital improvements, or to the tightening of State regulatory oversight requiring new capital investments, among other possibilities. Low rates are not necessarily a sign of prudent fiscal management. Handling of Treatment Costs The sanitary districts collect revenue for the treatment of sewage as well as the collection of sewage, even though they do not manage the sewage treatment plants. Between one third and two thirds of all revenues received by these districts go towards treatment expense and capital, as shown in Figure 10. Treatment expense is the annual cost to process sewage. Treatment capital is the money to fund capital improvement projects, such as the replacement of equipment or construction of new facilities. For example, treatment expense and capital is 47% of West Bay’s budget, leaving 53% for maintenance and capital improvement of its sewage collection system. 41 California Special Districts Association, Proposition 218 Guide for Special Districts, 2013. p. 19. 42 Official from San Mateo LAFCo: interview by the Grand Jury. 2015-2016 San Mateo County Civil Grand Jury 32 Figure 10: Treatment Expense and Capital’s Share of Revenue Source: See Appendix H: Sanitary District Budget Analysis FY 2015-2016. The wide discrepancy in percentage of revenue allocated to treatment is due to many reasons— the varying costs of the treatment plants used, the nature of the contracts negotiated with the treatment plants, the amount of capital investment currently underway at the treatment plants, and the individual district’s budgeting practices. This arrangement further separates the ratepayer from the agency spending the ratepayer’s money. It makes it difficult to judge whether the rates are fair across the County, and whether the money is well spent. In any case, it introduces additional players to the decisions involved in managing sewage treatment plants, and that in itself may add little value. Rationalizing Collection and Administration Expenses After treatment costs are removed, the districts are left with the costs associated with administering the district and maintaining the sewer pipes. The wide differences in how expenses are allocated between Collection and Administration/Finance are difficult to explain (see Figure 11). • The methodology for allocating costs between Collection and Administration/Finance is neither well defined nor consistent across districts. • Districts with both water and sewage responsibilities (such as Montara and Westborough) tend to have a lower proportion of Administration and Finance because these costs are shared. • Westborough does not report its revenue and expenses separately between its water and sewage responsibilities, so its split was estimated. It is difficult to understand how Westborough can set rates for sewer services without separate cost accounting for water and sewer services. 0%20%40%60%80%100%BayshoreWestboroughMontaraGranadaEast Palo AltoWest Bay 2015-2016 San Mateo County Civil Grand Jury 33 • East Palo Alto’s emphasis on community engagement and involvement may be a factor in why such a high percentage of its non-treatment operating expenses (80%) are for Administration and Finance.43 Figure 11: Operating Expense Split between Collection and Administration/Finance Source: See Appendix H: Sanitary District Budget Analysis FY 2015-2016. Note: West Bay does not consider treatment costs to be operating costs, unlike the other districts. It classifies them as non-operating costs. For comparative purposes, the Grand Jury categorized them in this report as operating costs. Collection expense per mile of pipeline varies from $7,165 for Westborough to $18,619 for Montara (see Figure 12).44 The Grand Jury was unable to determine the reasons for the differences. 43 In addition to the Public Relations study cited earlier (Jatelo Productions, East Palo Alto Sanitary District Public Relations Plan), East Palo Alto is the only district whose board calendar includes regular public relations committee meetings. 44 See Appendix D: Sewage System Characteristics by District; see Appendix G: Sanitary District Budgets for FY 2015-2016; see Appendix H: Sanitary District Budgets for FY 2014-2015. 0%20%40%60%80%100%BayshoreWestboroughMontaraGranadaEast Palo AltoWest Bay Administration &FinanceCollection 2015-2016 San Mateo County Civil Grand Jury 34 Figure 12: Collection Expense per Mile of Pipeline Source: See Appendix H: Sanitary District Budget Analysis FY 2015-2016. Note: Calculated as collection costs divided by miles of gravity and forced main pipelines. Board Compensation Board compensation differs dramatically between districts (see Figure 13). The per-diem rate for meeting attendance varies from $75 for Montara’s directors to $293 for East Palo Alto’s. Most districts hold monthly board meetings; Montara’s and West Bay’s boards meet twice per month. East Palo Alto is the only district with standing committee meetings scheduled on days other than regular board meetings.45 Government codes dictate the allowable compensation for board members of special districts. Sanitary districts’ compensation is covered by California Health and Safety Code Section 6489, which sets $100 as the maximum allowable compensation per day.46 Community services districts and water districts have the same limit. The law allows for an adjustment of 5% per year following a public hearing.47 Bayshore, East Palo Alto, and West Bay have been generous in taking advantage of these provisions to raise board director compensation. 45 Based on meeting schedules posted on district websites. 46 California Health and Safety Code, Section 6489. http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=HSC&sectionNum=6489. 47 California Water Code, Section 20200-20207, http://www.leginfo.ca.gov/cgi- bin/displaycode?section=wat&group=20001-21000&file=20200-20207. $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 2015-2016 San Mateo County Civil Grand Jury 35 Figure 13: Meeting Compensation for Directors Source: See Appendix J: Board Costs for Sanitary Districts. The difference in compensation practices is even starker when you compare annual total compensation planned in the FY 2015-2016 budgets (see Figure 14). East Palo Alto’s board members receive an average of $18,000 in compensation and other benefits per year, while West Bay’s receive only $11,000 in spite of it being a much larger district. Three of the districts have responsibility for a major mission other than sewage (Granada, Montara, and Westborough). In these cases, their board costs reflect a portion of the total costs, which is why they are lower than Bayshore’s, East Palo Alto’s, and West Bay’s.48 48 All districts except Westborough provide separate budgets for their sewage management responsibilities. Westborough’s management assisted the Grand Jury with an estimate of its sewage-related budget. $0$50$100$150$200$250$300$350 2015-2016 San Mateo County Civil Grand Jury 36 Figure 14: Annual Board Compensation per Director Source: See Appendix J: Board Costs for Sanitary Districts. While most districts do not provide benefits to their directors other than a meeting stipend, Bayshore and East Palo Alto offer substantial benefits (see Table 11). These benefits are generous given the very occasional responsibilities of board members. Table 11: Board of Director Benefits by District District Benefit Bayshore Dental, Life Insurance for Directors and Spouse / Partner or Children Westborough None Montara None Granada None East Palo Alto Dental, Vision, Health West Bay None Source: See Appendix J: Board Costs for Sanitary Districts. Note: FY 2015-2016. $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 2015-2016 San Mateo County Civil Grand Jury 37 Redundant Activities The six districts budget for items that duplicate work done by other districts. This duplication of costs can be redundant and costly to the taxpayer (see Figure 15). Figure 15: Economies of Scale in Professional Services If the districts were consolidated with other entities, the board costs associated with sewer services would be eliminated. Similarly, audit costs would be eliminated for the districts if they were consolidated. The audit costs for the receiving entities may go up slightly, especially during the year of consolidation, but the incremental costs would be small. A portion of legal and engineering fees would continue to be required in the event of consolidations because of the unique characteristics of each district being eliminated. However, the common work of staying apprised of current legal and regulatory requirements, attending district meetings, and preparing district documents (such as Sewer System Management Plans) could be reduced, perhaps dramatically. The costs involved are not insignificant. For example, board costs total over $225,000 per year (see Table 12). The total cost of professional services is nearly $1,000,000, much of which would be eliminated by consolidation. Table 12: Cost Impact of Multiple Small Districts Expense Type Bayshore West- borough Montara Granada East Palo Alto West Bay Totals Board $35,000 $24,416 $17,000 $5,300 $91,800 $55,404 $228,920 Legal $30,000 $15,900 $24,500 $60,000 $36,000 $160,000 $326,400 Audit $10,500 $8,758 $13,000 $12,000 $20,043 $15,000 $79,301 Engineering $55,000 $9,150 $52,000 $20,000 $85,000 $130,000 $351,150 Total $130,500 $58,224 $106,500 $97,300 $232,843 $360,404 $985,771 Source: Input from individual districts as well as published budgets. See Appendix G: Sanitary District Budgets. Note: Data for FY 2015-2016. The Grand Jury did not investigate the contracts for the professional services firms supporting the sanitary districts. Longevity is highly valued by the districts. The legal counsel in each of the Board Audit Legal, Engineering 100% Degree of Redundancy 0% 2015-2016 San Mateo County Civil Grand Jury 38 six has been in place at least 10 years,49 with Westborough’s counsel serving for over 30 years. Such long-term relationships raise questions about the competitiveness of the fees paid to these firms, since they appear to be rarely, if ever, subject to a standard procurement bidding process. Other economies of scale could be realized in general management and office administration. There may be opportunities in collection activities as well, with economies of scale in workforce and equipment utilization. West Bay provides a good example. When Los Altos Hills contracted with West Bay for sewer collection services, West Bay’s network expanded by 54 miles, or about 27%. It added two people on a base of 28 full-time equivalent staff, or only 7%.50 Scale is a challenge for benchmarking of administrative and finance processes. The minutes of the Granada board meeting from January 21, 2016, record an exchange between director David Seaton, elected in 2013, and director Leonard Woren, elected in 1997: “Consideration of Potential Cost Sharing Opportunities among Sewer Authority Mid- Coastside (SAM) Member Agencies. Director Seaton requested this Item for discussion as he feels overhead costs of Coastside agencies providing sewer related services are greater than necessary for the population. He suggested a long-term approach aimed at cost sharing if not consolidation. The Board held a discussion. ACTION: Director Woren moved to table the Item indefinitely until Director Seaton is able [sic] provide specific line-item expenses with the estimated cost saving calculations he foresees by cost sharing.”51 This generally negative attitude to the potential for improvement through sharing of best practices, mutual benchmarking, and other cooperative efforts was clearly visible in the leadership of the five smallest districts interviewed.52 49 Officials from independent sanitary districts: interviews by the Grand Jury. 50 Ibid. 51 Minutes of Granada Sanitary District Board of Directors Regular Meeting, dated January 21, 2016, p. 2. 52 Officials from independent sanitary districts (excluding West Bay): interviews by the Grand Jury. 2015-2016 San Mateo County Civil Grand Jury 39 Operational Competence No Gold Standard The core operating responsibility of the sanitary districts is sewage collection, which translates to the maintenance of the pipes that connect customers’ homes and businesses to the treatment plant. These responsibilities also include connecting new customers to the sewage system or modifying existing customers’ connections. The sanitary districts have a modest role to play in terms of customer service. They field calls from customers regarding sewage leakages and sewer line blockages. They receive requests for permits for new or upgraded connections. Customers themselves must coordinate with building and public works departments to replace or upgrade laterals and cleanouts. Only one of the districts, West Bay, tracks any metrics related to its interactions with customers, although all districts claimed to have excellent customer service.53 The Grand Jury was unable to determine whether a “gold standard” of performance exists for sewage collection. When we asked management of each of the districts who they viewed as the “gold standard” in the Bay Area, we received interesting results: • Bayshore cited itself. • East Palo Alto, Granada, and Montara cited West Bay. • The biggest district, West Bay, cited Central Contra Costa Sanitary, West Valley Sanitary District, and Union Sanitary in Fremont. Only East Palo Alto and West Bay appeared to be actively involved in the primary professional association for sewage system management, the California Water Environment Association. As a result, even among the districts themselves, there is no objective basis for evaluating the performance of the sanitary districts. Age of Pipelines The sewage infrastructure of the six independent sanitary districts is old, with over 43% laid before 1960.54 Older pipe is more susceptible to problems due to root intrusion, land settling, inaccurate maps, and other causes. Because of these problems, older pipe can be more expensive to maintain. Most of these older pipes are clay or concrete, which typically last 50 to 60 years. 55 53 Officials from the independent sanitary districts: interviews by the Grand Jury. 54 See Appendix F: Age Profile of District Pipelines. 55 Most sewer pipe laid before 1980 was clay or concrete. Pipe Rehab Specialists, How Long Do Sewer Pipes Last?, accessed May 1, 2016. http://www.piperehabspecialists.com/how-long-do-sewer-pipes-last/. 2015-2016 San Mateo County Civil Grand Jury 40 Approximately half the pipes in East Palo Alto and West Bay are over 50 years old and therefore approaching end of life (see Figure 16). Figure 16: Pipeline Age by District Source: See Appendix F: Age Profile of District Pipelines. Note: Montara data estimated for 1940-1959 and 1960-1979 by dividing pipe aged between 1940-1979 by two. Sanitary Sewer Overflows San Mateo County’s independent sanitary districts contribute less than 10% of the sanitary sewer overflows in the County (see Table 13). With approximately 17% of the County’s total pipeline length, they are doing relatively better as a group than the other sewer providers in the County. Table 13: Sanitary Sewer Overflows by District 2013 2014 2015 San Mateo County 186 238 155 Percentage from Independent Districts 10% 9% 9% Bayshore 1 2 1 Westborough 1 0 0 Montara 1 4 7 Granada 5 2 1 East Palo Alto 0 0 0 West Bay 10 14 5 Source: See Appendix E: Sanitary Sewer Overflows by District by Year. From 2011 to 2015, the most noticeable change in performance by any district is West Bay’s dramatic improvement (see Figure 17). West Bay’s current general manager, a public works executive with more than 30 years of experience in wastewater management, joined the district in 2010 and made reduction in SSOs a major priority. Montara struggles to prevent overflows in 0%10%20%30%40%50%60%70% 2000-Present1980-19991960-19791940-19591920-19391900-1919 2015-2016 San Mateo County Civil Grand Jury 41 its hilly environment with many pump stations. East Palo Alto reported having no SSOs in the last five years, while Westborough reported only one, and that in 2013. Figure 17: Sanitary Sewer Overflows by Year Source: See Appendix E: Sanitary Sewer Overflows by District by Year. Note: Some data points are not visible due to overlap. For example, Bayshore’s values for 2014 and 2015 are equal to Granada’s, so its line is hidden behind Granada’s. Similarly, East Palo Alto’s and Westborough’s values are identical in all years except 2013, so the East Palo Alto values are only visible in that year. SSOs per mile of pipe show that the two biggest districts (West Bay and East Palo Alto) are lower than the state average for SSOs per mile of pipe, in spite of the age of their pipes (see Figure 18). It is difficult to assess precisely why this is the case other than to note the experience and professionalism of their leadership and employees, as well as West Bay’s deployment of technologies such as cured-in-place pipe and linear asset management planning.56 Bayshore and Montara SSOs were high relative to County and state averages in 2014, with that trend continuing for Montara into 2015. 56 Cured-in-place pipe is a “jointless, seamless, pipe-within-a-pipe with the capability to rehabilitate pipes.” It is one of several trenchless rehabilitation methods used to repair existing pipelines. Source: Wikipedia entry for cured-in- place pipe. https://en.wikipedia.org/wiki/Cured-in-place_pipe. Linear asset planning is a method for prioritizing pipeline repair or replacement based on multiple factors. 0246810121416 2011 2012 2013 2014 2015BayshoreEast Palo Alto GranadaMontaraWestboroughWest Bay 2015-2016 San Mateo County Civil Grand Jury 42 Figure 18: Sanitary Sewer Overflows per Mile of Pipe Source: See Appendix E: Sanitary Sewer Overflows by District by Year. Notes: East Palo Alto and Westborough reported no Sanitary Sewer Overflows in 2014 and 2015. Dependence on Contractors With the exception of West Bay, the sanitary districts are so small that they cannot justify hiring and retaining their own staff, so they hire outside contractors to manage their responsibilities. The functions performed by contractors are highlighted in Table 14. 00.050.10.150.20.250.3 20142015 2015-2016 San Mateo County Civil Grand Jury 43 Table 14: Use of Contractors by Function in Independent Sanitary Districts Responsibility Bayshore West- borough Montara Granada EPA West Bay Number of Full-Time Equivalent Employees 0 1a 2 2 9 28 District Administration General Manager N/A Employee Employee Dudek & Associatesb Contractorc Employee District Clerk Contractord Employee N//A Employee N/A N/A Legal Meyers Nave Hanson Bridgett LLP Law Offices of David E. Schricker Wittwer Parkin LLP Best Best & Krieger LLP Atchison, Barisone, Condotti & Kovacevich Finance & Accounting Accountant Contractord Chavan & Associates, LLP Maze & Associates Employee Jeanpierre, Wegem, Alabi & Co. LLP CPAs Employee Sewer Service Rates TBD TBD Bartle Wells Associates TBD Bartle Wells Associates HF&H Consultants , LLC Auditore Fechter & Co., CPAs Charles Z. Fedak Vavernick, Trine & Day Fechter & Co, CPAs Maze & Associates Chavan & Associates, LLP Engineering Thomas E. Yeager, formerly of Kennedy / Jenks Pakpour Consulting Nute Engineering Kennedy / Jenks Consultants Freyer & Laureta Inc. Employee Collections (Maintenance) Collection Systems Main- tenance Service North San Mateo County Sanitation District Sewer Authority Mid- Coastside (SAM) Sewer Authority Mid- Coastside (SAM) Employee Employee Permit Processing Contractor Employee / Contractor Employee Employee Employee Employee Treatment SFPUC Southeast Treatment Plant North San Mateo County Sanitation District Treatment Plant Sewer Authority Mid- Coastside (SAM) Sewer Authority Mid- Coastside (SAM) Palo Alto Regional Water Quality Control Plant Silicon Valley Clean Water Sources: Representative from Bayshore: interview by the Grand Jury, February 23, 2016. Representative from Westborough: interview by the Grand Jury, February 29, 2016. Representative from Montara: interview by the Grand Jury, February 22, 2016. Representative from Granada: interview by the Grand Jury, February 22, 2016. Representative from East Palo Alto: interview by the Grand Jury, February 25, 2016. Representative from West Bay: interview by the Grand Jury, February 23, 2016. Notes: aWestborough has three employees involved in sewer management, but each also supports its mission of providing fresh water. Management judged that it had the equivalent of one employee managing its sewage responsibilities, spread across General Management, the District Clerk, and permit processing. 2015-2016 San Mateo County Civil Grand Jury 44 bChuck Duffy serves approximately 30 hours per month. According to Granada district staff, he serves as general manager for two other sanitary districts located in southern California. cKaren Maxey, independent contractor and former employee. dJoann Landi, independent contractor. eAuditors are always independent contractors. Some of the same contractors work in several districts. For example, Fechter provides audit services for Bayshore and Granada. Westborough and West Bay use Chavan & Associates for financial services. Kennedy/Jenks Consulting is the source of engineering for Bayshore and Granada. Use of Technologies Based on the Grand Jury’s research, the five smallest independent districts are using few of the current technologies available to manage their collection systems (see Table 15).57 The newer technologies offer ways to prevent problems that older approaches based on the fix-it-when-it- breaks approach did not. This can have near-term implications such as increased risk of sanitary sewer overflows. A bigger concern is that without taking steps to proactively preserve, rehabilitate, and replace pipelines now, districts will face increased costs in the future. The recent publicity (mentioned earlier in this report) about unplanned, multi-hundred million dollar investments to replace worn-out collection and treatment systems attests to this.58 During interviews, it became clear that many of the independent sanitary district leaders were unaware of developments in sewage management that may be applicable to them. They rarely if ever attend industry conferences,59 do not appear to require employees or contractors’ employees to participate in certification programs, and do not actively benchmark their performance. 57 Officials from the independent sanitary districts: interviews by the Grand Jury. 58 See Section titled “Urban Sewage Management.” 59 Only Montara and West Bay leadership reported regular attendance at conferences directly related to sanitary waste management, such as California Association of Sanitation Agencies and California Water Environment Association. All districts attended at least occasional meetings at the California Special Districts Association. 2015-2016 San Mateo County Civil Grand Jury 45 Table 15: Use of Operational and Planning & Control Technologies by District In Use Bayshore West- borough Montara Granada EPA West Bay Operational Performance Camera Yes No Yes Yes No Yes Sonar Technology No No No No No No Root Foaming No Yes No No No Yes Trenchless / Slip Line Technology Yes No Yes Yes No Yes Operator Certifications No Yes No Yes No Yes Planning & Control Technologies Linear Asset Management Plan (LAMP) No No Yes No No Yes Effective Utility Management No No Yes No No Yes SCADA Systems No Yes Yes No No Yes Planned Bayshore West- borough Montara Granada EPA West Bay Operational Performance Camera Yes Yes Yes Yes Yes Yes Sonar Technology No No No No No No Root Foaming No Yes No No No Yes Trenchless / Slip Line Technology Yes Yes Yes Yes No Yes Operator Certifications No Yes No Yes No Yes Planning & Control Technologies Linear Asset Management Plan (LAMP) No No No No No Yes Effective Utility Management No No No No No Yes SCADA Systems No Yes Yes No No Yes Change in use Source: Sanitary District interviews. Technology is not the only factor that leads to good performance. The Grand Jury learned that good performance is a function of the base condition of the infrastructure, the quality and skill of leadership and staff, work standards, the tools and technology available to perform the work, and the funds allocated to capital investment. There are likely other factors, as well. 2015-2016 San Mateo County Civil Grand Jury 46 Emergency Preparedness A review of urban sewage management websites turns up evaluations of the emergency- preparedness of their systems. San Francisco has a comprehensive Sewer System Improvement Program, whose initial goal is to “provide a compliant, reliable, resilient, and flexible system that can respond to catastrophic events.”60 The associated level of service is to “ensure treatment of flows within 72 hours of a major earthquake.”61 San Jose updated its Sewer System Management Plan in 2014, with multiple references to emergency management.62 As mentioned earlier, the State Water Control Board requires Sewer System Management Plans of all districts, and yet only two of San Mateo’s independent districts have plans that are easy to locate on their websites. Emergency preparedness is a key required component of these plans. The Grand Jury reviewed the meeting minutes of the six districts for the last 12 months, from approximately April 2015 through March 2016. There was no evidence of any discussion regarding emergency preparedness in any of the sets of minutes.63 FINDINGS F1. From 2013-2015, San Mateo County sewer agencies had more than twice as many sanitary sewer overflows as San Jose and three times as many as Central Contra Costa Sanitary District. F2. Independent district websites have gaps in information regarding historical rates, sewer system management plans, and sanitary sewer overflows. Meeting minutes and financial audits are frequently out of date. F3. The use of the annual property tax statement for billing purposes makes the cost of sewer services less visible to residents. F4. Elections for sanitary district board membership are rarely contested, and when they are, voter turnout is low. The average tenure of board members is over 10 years. F5. Five of the six districts receive countywide property taxes, which means that residents’ fees are not paying the full cost of sewer services. F6. Sewer rates from 2010-2011 to 2015-2016 increased faster than the consumer price index. The six districts acknowledged that this trend is likely to continue given the age of pipelines in the County and the cost of maintenance to and replacement of those pipelines. F7. Funds for treatment plants pass from ratepayers through the independent sanitary districts to the treatment plants; the sanitary districts add little value. F8. The total budget for operating the boards of the six districts studied is over $225,000. East Palo Alto’s average annual compensation for directors is $18,000, 66% higher than the 60 San Francisco Water Power Sewer, SSIP Goals & Level of Service. http://sfwater.org/index.aspx?page=668. 61 Ibid. 62 City of San Jose, Sewer System Management Plan, Document No. 1131790, October 2014, p. 8. 63 See Appendix L: References to “Disaster” or “Emergency” in Board Meeting Minutes. 2015-2016 San Mateo County Civil Grand Jury 47 next highest (and much larger) district, West Bay. Bayshore and East Palo Alto offer employee-type benefits to directors including dental insurance. F9. The pipelines of the six districts are aging, with almost half having been laid over 50 years ago. These pipes are approaching end of life. F10. There are many wholly or partially redundant activities across the six independent districts, including board costs, financial audits, legal services, and engineering. F11. Most of the independent sanitary districts rely almost entirely on contractors to fulfill their responsibilities. F12. In many cases, district leadership is unfamiliar with the existing and emerging technologies for improving sewer system performance while reducing costs. F13. The proliferation of sanitary districts within San Mateo County makes it challenging to coordinate an emergency response. The districts themselves have not reviewed or discussed emergency/disaster planning within their boards in the past year. RECOMMENDATIONS The Grand Jury recommends that the Board of the Bayshore Sanitary District and the City Councils of Brisbane and Daly City do the following: R1. Form a committee of Board members (Bayshore Sanitary District), Council members (Brisbane, Daly City), and staff from each to discuss the assumption of services provided by Bayshore Sanitary District into Brisbane and/or Daly City. Evaluate alternatives and determine the benefits to ratepayers. Issue a report with recommendations and a plan by September 30, 2017. The Grand Jury recommends that Boards of the East Palo Alto Sanitary District and West Bay Sanitary District and the City Council of East Palo Alto do the following: R2. Form a committee of Board members (East Palo Alto Sanitary District, West Bay Sanitary District), Council members (East Palo Alto), and staff from each to discuss the assumption of services provided by East Palo Alto Sanitary District into either West Bay Sanitary District or the City of East Palo Alto. Evaluate alternatives and determine the benefits to ratepayers. Issue a report with recommendations and a plan by September 30, 2017. The Grand Jury recommends that the Boards of Granada Community Services District and Montara Water and Sanitary District and the City Council of Half Moon Bay do the following: R3. Form a committee of Board members (Granada Community Services District, Montara Water and Sanitary District), Council members (Half Moon 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. 2015-2016 San Mateo County Civil Grand Jury 48 The Grand Jury recommends that the Board of the Westborough Water District and the City Councils of Daly City and South San Francisco do the following: R4. Form a committee of Board members (Westborough Water District), Council members (Daly City, South San Francisco), and staff from each to discuss the assumption of services provided by Westborough Water District into Daly City and/or South San Francisco. Evaluate alternatives and determine the benefits to ratepayers. Issue a report with recommendations and a plan by September 30, 2017. Work with California Water Service Company on this initiative. The Grand Jury recommends that the Boards of Bayshore 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: R5. 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. R6. Implement and publish performance management metrics including but not limited to the Effective Utility Management framework, beginning with Fiscal Year 2016-2017. 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. 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. R9. 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. R10. Establish term limits for the members of their boards of directors by June 30, 2017. R11. 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. R12. 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. R13. Develop plans for coordinating resources in the event of a local or regional emergency by June 30, 2017. 2015-2016 San Mateo County Civil Grand Jury 49 The Grand Jury recommends that the Boards of Bayshore Sanitary District, East Palo Alto Sanitary District, West Bay Sanitary District, and Westborough Water District do the following: R14. Evaluate the benefit of changing the timing of board director elections to November of even years, when federal and state elections generate greater turnout.64 The Grand Jury recommends that the Board of the Westborough Water District do the following: R15. Develop, publish, and track separate budgets for sewer and water services, beginning with Fiscal Year 2016-2017. The Grand Jury recommends that the Boards of the Bayshore Sanitary District, Montara Water and Sanitary District, and Westborough Water District do the following: R16. 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 Grand Jury recommends that the Boards of the Bayshore Sanitary District and East Palo Alto Sanitary District do the following: R17. Reduce the daily compensation of board directors to $100 per day by December 31, 2017. Phase out all benefits for board directors over a period of time not to exceed three years. The Grand Jury recommends that the San Mateo County Local Agency Formation Commission do the following: R18. 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. REQUEST FOR RESPONSES Pursuant to Penal Code Section 933.05, the Grand Jury requests responses as follows: From the following entities: • San Mateo County Local Agency Formation Commission: R18 From the following governing bodies:65 • Bayshore Sanitary District: R1, R5-R13, R14, R16, R17 • East Palo Alto Sanitary District: R2, R5-R13, R14, R17 • Granada Community Services District: R3, R5-R13 • Montara Water & Sanitary District: R3, R5-R13, R16 64 Granada Community Services District and Montara Water and Sanitary District have already made the decision to transition director elections to even-numbered years, beginning in 2016. 65 Each district should respond to the Finding and Recommendation in light of its particular circumstances and performance, and not reply on behalf of all independent districts. 2015-2016 San Mateo County Civil Grand Jury 50 • West Bay Sanitary District: R2, R5-R13, R14 • Westborough Water District : R4, R5-R13, R14, R15, R16 • City of Brisbane: R1 • City of Daly City: R1, R4 • City of East Palo Alto: R2 • City of Half Moon Bay: R3 • City of South San Francisco: R4 The governing bodies identified above should be aware that the comment or response of the governing body must be conducted subject to the notice, agenda and open meeting requirements of the Brown Act. METHODOLOGY Documents • The Grand Jury gathered information from each of the six independent sanitary districts in four steps: − Step 1: The Grand Jury conducted Internet research on each district, including its budgets, meeting minutes, and Sanitary Sewer Management Plans. The Jury also reviewed election records and performance statistics gathered by the State of California Water Resources Board. − Step 2: The Grand Jury requested information from each district on its budget, along with collection system information. − Step 3: The Grand Jury requested information from each district on its budgeting practices and pipeline ages. It also asked that each district review its data as analyzed by the Grand Jury and confirm the data was correct. − Step 4: The Grand Jury requested additional information on rates and technology deployment. It also asked each district to once again verify the data used to describe its district in the report. Interviews Reports issued by the Civil Grand Jury do not identify individuals interviewed. Penal Code Section 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 Civil Grand Jury. The Grand Jury interviewed leadership at each of the six independent sanitary districts as well as LAFCo of San Mateo County. Site Visits • Bayshore Sanitary District 2015-2016 San Mateo County Civil Grand Jury 51 BIBLIOGRAPHY Bayshore Sanitary District Bayshore Sanitary District. Annual Budget Fiscal Year 2015-2016. Adopted July 23, 2015. Accessed March 17, 2016. http://bayshoresanitary.com/about/2000s/FY%202015- 16%20Budget%20001.pdf. Bayshore Sanitary District. Financial Statements and Supplementary Information for the Year Ended June 30, 2015 with Independent Auditor’s Report. 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Granada Sanitary District, Resolution No. 2013-003, Resolution of Application for a Reorganization of the Granada Sanitary District into a Community Services District. April 18, 2013. http://granada.ca.gov/wp-content/uploads/2014/02/2013-04- 18_RESOLUTION_for_LAFCO_Application.pdf. Poyatos, Martha, Executive Officer, San Mateo County Local Agency Formation Commission. Impartial Analysis for June 3, 2014 Ballot Measure for Reorganization of the Granada Sanitary District into a Community Services District and Adding the Service of Park and Recreation (LAFCo File No. 13‐05). March 12, 2014. Accessed March 17, 2016. http://lafco.smcgov.org/sites/lafco.smcgov.org/files/events/3-12-14%20- %20LAFCo%20Impartial%20Analysis%20for%20June%203%2C%202014%20Ballot%20Meas ure.pdf. 2015-2016 San Mateo County Civil Grand Jury 53 Poyatos, Martha, Executive Officer, San Mateo County Local Agency Formation Commission. Sphere of Influence Update, City of Half Moon Bay and Unincorporated Midcoast. 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Undated. http://mwsd.montara.org/assets/uploads/documents/rates-and-fees/Fiscal%20year%202014- 2015%20budget%20Summary.pdf. Montara Water and Sanitary District. Capital Improvement Program, 2014-15, Sewer System. July 21, 2014. http://mwsd.montara.org/assets/uploads/documents/rates-and-fees/CIPs%2014- 15_Sewer_System.pdf. Montara Water and Sanitary District. Fiscal Year 2015-2016 Budget Executive Summary. Undated. http://mwsd.montara.org/assets/uploads/documents/rates-and-fees/MWSD_2015- 16_adopted_budget.pdf. Montara Water and Sanitary District. Ordinance No. 177, Ordinance of the Montara Water and Sanitary District Restating and Amending Master Fee Schedule. June 4, 2015. http://mwsd.montara.org/assets/uploads/documents/rates-and- fees/MWSDFeesSkedOrd17715.9.16.pdf. Nute Engineering, Montara Water and Sanitary District. Sewer System Management Plan, Resolution 1583, Update Prepared August 2014. http://mwsd.montara.org/assets/uploads/documents/legal- regulatory/2014%20MWSD%20SSMP%20FINAL%20Elements%20I-XI.pdf. Poyatos, Martha, Executive Officer, San Mateo County Local Agency Formation Commission. Sphere of Influence Update, City of Half Moon Bay and Unincorporated Midcoast. October 7, 2008. 2015-2016 San Mateo County Civil Grand Jury 54 http://lafco.smcgov.org/sites/lafco.smcgov.org/files/documents/files/2008_10_08_lafco_soicoast sideoct7wattachments_1.pdf. Rauch Communication Consultants, Inc., Montara Water and Sanitary District. 2015 Strategic Plan. Undated. http://mwsd.montara.org/assets/uploads/documents/service/21_MWSD_Strategic.Plan+Cover.Po st.Board.1.pdf. Sewer Authority Mid-Coastside. An Agreement Creating the Sewer Authority Mid-Coastside. Consolidated and updated as of October 10, 2011. http://www.samcleanswater.org/destiny/consolidated_jpa.pdf. West Bay Sanitary District Chavan & Associates LLP, West Bay Sanitary District. Financial Statements and Independent Auditor’s Report, June 30, 2015. October 19, 2015. https://westbaysanitary.org/wp- content/uploads/2015/06/2014-15-WBSD-Audited-Financials-CALLP-FINAL.pdf. HF&H Consultants, LLC, West Bay Sanitary District. Sewer Rate Study, Final Report, April 22, 2015. April 22, 2015. http://westbaysanitary.org/wsbd- prod/resources/1400/WBSD_FINALReport_22April2015.pdf. San Mateo County Local Agency Formation Commission. Municipal Service Review and Sphere of Influence Update, West Bay Sanitary District. February 12, 2009. Accessed March 17, 2016. http://lafco.smcgov.org/sites/lafco.smcgov.org/files/documents/files/MSRwestbaysanitaryfebruar y_0.pdf. Silicon Valley Clean Water. Commission Overview. Accessed March 18, 2016. http://www.svcw.org/about/sitePages/overview.aspx. V. W. Housen & Associates, West Bay Sanitary District. Linear Asset Management Plan (LAMP), February 2016. Draft dated February 7, 2016. West Bay Sanitary District. General Fund and Capital Asset Fund Budgets & Reserves, FY 2015-16, Approved June 10, 2015. June 10, 2015. https://westbaysanitary.org/wp- content/uploads/2015/06/FY2015-16-Budget-Approved.pdf. West Bay Sanitary District. Performance Measurement Report, Performance Measurements for the West Bay Sanitary District Using the “Effective Utility Management” Framework, Includes Data and Analysis for Calendar Year 2014. Undated. https://westbaysanitary.org/wsbd- prod/resources/1381/MASTER_WBSD_2014-PMR_FINAL.pdf. 2015-2016 San Mateo County Civil Grand Jury 55 Westborough Water District Charles Z. Fedak and Company, Westborough Water District. Management Report, June 30, 2014. December 1, 2014. http://www.westboroughwater.com/Documents/WWD%20Financial%20Statements%20MR%20 2014.pdf. North San Mateo County Sanitation District, City of Daly City. Wastewater Treatment and Disposal. Accessed March 18, 2016. http://www.dalycity.org/City_Hall/Departments/wwr/Divisions/waste_treatment.htm. Westborough County Water District. Resolution No. 355, Establishing and Consolidating Reserve Funds and Providing for Appropriations and Contributions to Such Funds. June 27, 1979. Attachment to email from Darryl Barrow, General Manager, Westborough Water District, March 8, 2016. Westborough Water District. Annual Financial Report for the Fiscal Years Ended June 30, 2014 and 2013. Undated. http://www.westboroughwater.com/Documents/WWD%20Financial%20Statements%202014.pd f. Westborough Water District. Policy on Director’s Compensation and Expense Reimbursement. Adopted October 16, 2008. http://www.westboroughwater.com/Documents/Policy%20on%20Director%20Reimbursement.p df. Westborough Water District. Rate and Fee Schedule, Adopted and Restated as of September 11, 2014 by Resolution No. 585. September 11, 2014. http://www.westboroughwater.com/Documents/Rate%20and%20Fee%20Schedule091114.pdf. Westborough Water District. Statement of Income and Expense, Adopted June 12, 2014. June 12, 2014. http://www.westboroughwater.com/Documents/ADOPTEDBUDGET20142015.pdf. Westborough Water District. Statement of Income and Expense, Adopted June 18, 2015. June 18, 2015. http://www.westboroughwater.com/Documents/ADOPTEDBUDGET20152016.pdf. Election Results League of Women Voters of California, Smart Voter. Special Districts Contests for San Mateo County, CA, November 6, 2001. Accessed March 4, 2016. http://www.smartvoter.org/2001/11/06/ca/sm/special_districts.html. League of Women Voters of California, Smart Voter. Special Districts Contests for San Mateo County, CA, November 4, 2003. Accessed March 4, 2016. http://www.smartvoter.org/2003/11/04/ca/sm/special_districts.html. 2015-2016 San Mateo County Civil Grand Jury 56 League of Women Voters of California, Smart Voter. 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Statement of Vote, San Mateo County Consolidated Municipal, School, and Special District Election, November 8, 2011. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2011/nov2011/final/SOV_Nov2011.pdf. San Mateo County. Statement of Vote, San Mateo County Consolidated Municipal, School, and Special District Election, November 5, 2013. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2013/nov/official/Nov2013SOV.pdf. San Mateo County. Statement of Vote, San Mateo County Consolidated Municipal, School, and Special District Election, November 3, 2015. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2015/nov/official/SOV.pdf. Bay Area Sewer Agencies California Environmental Protection Agency, State Water Resources Control Board. Water Conservation Portal - Conservation Reporting, Factsheet: February by the Numbers. Accessed May 2, 2016. http://www.waterboards.ca.gov/water_issues/programs/conservation_portal/conservation_reporti ng.shtml. California Regional Water Quality Control Board, San Francisco Bay Region. Cease and Desist Order No. R2-2009-0020. March 11, 2009. http://www.waterboards.ca.gov/rwqcb2/board_decisions/adopted_orders/2009/R2-2009- 0020.pdf. Central Contra Costa Sanitary District. Service Area & Statistics. Accessed May 1, 2016. http://www.centralsan.org/index.cfm?navid=65. Central Contra Costa Sanitary District. Financial Information. Accessed May 1, 2016. http://centralsan.org/index.cfm?navid=78. City of Oakland. Landmark Clean Water Agreement, Regional East Bay Sewer Consent Decree 2014. Accessed May 1, 2016. http://www2.oaklandnet.com/Government/o/PWA/s/Sewer/ConsentDecree/index.htm. City of Oakland, Public Works. Sanitary Sewer System, Flyer 2016 Sewer Service Charge Website - One Page (1-4-16) Final.pdf. Accessed May 2, 2016. http://www2.oaklandnet.com/Government/o/PWA/s/Sewer/index.htm. City of San Jose. Sanitary Sewer Service & Use Charges. Accessed May 1, 2016. https://www.sanjoseca.gov/index.aspx?nid=1661. City of San Mateo. Sewer System Management Plan. December 7, 2015. http://www.cityofsanmateo.org/DocumentCenter/View/47516. 2015-2016 San Mateo County Civil Grand Jury 58 East Bay Municipal Utilities District. Wastewater Rate Schedule – Effective July 1, 2015. Accessed May 2, 2016. http://www.ebmud.com/wastewater/rates-and-charges/#single-family. San Francisco Water Power Sewer. About the Wastewater Enterprise. Accessed May 2, 2016. http://www.sfwater.org/index.aspx?page=392. San Francisco Water Power Sewer. Proposed FY 2015-2018 Water and Sewer Rates. Accessed May 2, 2016. http://sfwater.org/modules/showdocument.aspx?documentid=5031. San Francisco Water Power Sewer. SSIP Goals & Level of Service. http://sfwater.org/index.aspx?page=668. San Mateo County Public Works. Sewer Service Rate Information. Accessed March 11, 2016. http://publicworks.smcgov.org/sewer-service-rate-information. United States Census Bureau. American Fact Finder. Accessed May 1, 2016. http://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml United States Environmental Protection Agency. News Releases from Region 9, Bay Area Municipalities Ordered to Protect San Francisco Bay from Sewer Discharges. March 15, 2011. https://yosemite.epa.gov/opa/admpress.nsf/0/c221b52e5e4823d58525785300718f88?OpenDocu ment. United States Environmental Protection Agency. News Releases from Region 9, US EPA orders Marin County sewage collection systems to address chronic sewage spills. April 8, 2008. https://yosemite.epa.gov/opa/admpress.nsf/0/503212C4814C8FF585257427006B9568. Weigel, Samantha. “Sewer Overhaul to Cost $770M, San Mateo Launching Improvement Program for Thousands of Customers,” The Daily Journal. March 14, 2016 Other California Association of Local Agency Formation Commissions. “What Is LAFCo.” Accessed March 18, 2016. http://www.calafco.org/about.htm. City of Eureka. Wastewater Collection. Accessed May 6, 2016. http://ci.eureka.ca.gov/depts/pw/wastewater/default.asp. Elledge, David G. Demystifying the California Property Tax Apportionment System, A Step-by- Step Guide Through the AB 8 Process. March 2006. Heberger, Matthew, Heather Cooley, Pablo Herrera, and Peter Gleick, Pacific Institute. San Francisco Bay Wastewater Treatment Plants Vulnerable to a 100-Year Coastal Flood with a 1.4- Meter Sea-Level Rise. February 26, 2009. http://pacinst.org/wp- content/uploads/sites/21/2009/02/Fig25_WWTP_SF.pdf. Hi-Desert Water District. Wastewater Reclamation Project. http://protectgroundwater.org/wp- content/uploads/2014/01/Sewage-treatment-system-graphic.jpg. 2015-2016 San Mateo County Civil Grand Jury 59 Minnesota Pollution Control Agency. “Design Flow and Loading Determination Guidelines for Wastewater Treatment Plants.” Water/Wastewater Technical Review and Guidance/#5.20. November 2001. https://www.pca.state.mn.us/sites/default/files/wq-wwtp5-20.doc. Pipe Rehab Specialists. How Long Do Sewer Pipes Last? Accessed May 1, 2016. http://www.piperehabspecialists.com/how-long-do-sewer-pipes-last/. San Mateo County Local Agency Formation Commission. Special Districts in San Mateo County. Accessed March 4, 2016. http://lafco.smcgov.org/special-districts-san-mateo- county?f[0]=search_api_multi_aggregation_8%3ASewer/Sanitation. State of California Environmental Protection Agency, Water Resources Control Board, California Integrated Water Quality System Project (CIWQS). SSO Report Form. Accessed March 17, 2016. https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/PublicReportSSOServlet. State of California Environmental Protection Agency, Water Resources Control Board. Sanitary Sewer Overflow Reduction Program. Accessed March 18, 2016. http://www.waterboards.ca.gov/water_issues/programs/sso/index.shtml. WaterEUM. About the Effective Utility Management Collaborative Effort. Accessed May 2, 2016. http://www.watereum.org/about/. 2015-2016 San Mateo County Civil Grand Jury 60 APPENDIX A: SEWER PROVIDERS IN SAN MATEO COUNTY Sewage Collection (36) Independent (6) Bayshore Sanitary District East Palo Alto Sanitary District Granada Community Services District Montara Water and Sanitary District Westborough Water District West Bay Sanitary District County Managed (10) Burlingame Hills Sewer Maintenance District Crystal Springs County Sanitation District Devonshire County Sanitation District Edgewood Sewer Maintenance District Emerald Lake Heights Sewer Maintenance District Fair Oaks Sewer Maintenance District Harbor Industrial Sewer Maintenance District Kensington Square Sewer Maintenance District Oak Knoll Sewer Maintenance District Scenic Heights County Sanitation District City Managed (13) Belmont Collection System Brisbane City Collection System Burlingame City Collection System Foster City Collection System Half Moon Bay Collection System Hillsborough (Town of) Collection System Millbrae City Collection System Pacifica (Calera Creek Water Recycling Plant Collection System) Redwood City Collection System San Bruno City Collection System San Carlos City Collection System San Mateo Collection System South San Francisco City Collection System Subsidiary Districts (2) Guadalupe Valley Municipal Improvement District North San Mateo County Sanitation District Unique Systems (5) San Francisco International Airport Mel Leong Treatment Plant - Industrial Wastewater & Sanitary Waste Collection Systems Sewer Authority Mid-Coastside Collection System Silicon Valley Clean Water Collection System 2015-2016 San Mateo County Civil Grand Jury 61 SLAC National Accelerator Laboratory Collection System Tower Road Complex Collection System Wastewater Treatment (9) Burlingame Wastewater Treatment Facility (operated by Veolia Water) Calera Creek Water Recycling Plant Daly City Wastewater Treatment Plant Millbrae Water Pollution Control Plant San Francisco International Airport Mel Leong Treatment Plant San Mateo Wastewater Treatment Plant Sewer Authority Mid-Coastside (SAM) Silicon Valley Clean Water (formerly South Bayside System Authority) South San Francisco Water Quality Control Plant Sources: California Environmental Protection Agency, Water Resources Control Board, California Integrated Water Quality System Project (CIWQS). SSO Report Form. Accessed March 17, 2016. https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/PublicReportSSOServlet. San Mateo Local Agency Formation Commission. Special Districts in San Mateo County. Accessed March 4, 2016. http://lafco.smcgov.org/special-districts-san-mateo- county?f[0]=search_api_multi_aggregation_8%3ASewer/Sanitation. 2015-2016 San Mateo County Civil Grand Jury 62 APPENDIX B: URBAN SEWER MANAGEMENT AGENCIES System Characteristics of Major Bay Area Sewer Providers Population Area (Sq. Miles) Forced Main (Miles) Gravity Main (Miles) Residential Rate ($/Year) San Mateo County 765,135 448.0 104.4 1,898 $902a San Jose City Collection System 998,537 176.6 13.0 2,268 $405 Central Contra Costa Sanitary District 476,400 144.0 23.0 1,519 $471 San Francisco Public Utilities Commissionb 864,816 46.9 1,000 $187 Oakland City Collection System 406,253 55.8 0.2 920 $705 Sources: San Mateo County Population: US Census Bureau, estimate as of 7/1/15; http://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?src=bkmk Area: Land only; https://en.wikipedia.org/wiki/San_Mateo_County,_California Pipeline Length: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/PublicReportSSOServlet Rate: Average of 10 county-managed and 6 independent district rates for 2015-2016. See Appendix I: Sanitary District Sewer Rates. San Jose Population: U.S. Census Bureau, estimate as of 1/1/13; https://www.google.com/search?client=safari&rls=en&q=area+of+san+jose+ca&ie=UTF-8&oe=UTF-8#q=population+of+san+jose+ca Area: Land only; https://en.wikipedia.org/wiki/San_Jose,_California Pipeline Length: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/PublicReportSSOServlet Rate: https://www.sanjoseca.gov/index.aspx?nid=1661 Central Contra Costa Population, Area: http://www.centralsan.org/index.cfm?navid=65 Pipeline Length: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/PublicReportSSOServlet Rate: http://centralsan.org/index.cfm?navid=78 San Francisco Population: https://en.wikipedia.org/wiki/San_Francisco Area: Land only; https://en.wikipedia.org/wiki/San_Francisco. Pipeline Length: Estimates report vary from 900 – 1000; http://www.sfwater.org/index.aspx?page=392. Rate: Estimated from average household size (2.63) times average per capita monthly water consumption (1.72 CCF) times $9.06 for the first four CCF per month. A CCF is a hundred cubic feet of water, or 748 gallons. Household Size: http://www.sfwater.org/index.aspx?page=392. Water Consumption: 2015-2016 San Mateo County Civil Grand Jury 63 Factsheet: January by the Numbers, California EPA, California State Water Resources Control Board, http://www.waterboards.ca.gov/water_issues/programs/conservation_portal/conservation_reporting.shtml. Rate: http://sfwater.org/modules/showdocument.aspx?documentid=5031. Oakland Population as of 1/1/2013: https://www.google.com/search?client=safari&rls=en&q=area+of+san+jose+ca&ie=UTF-8&oe=UTF-8#q=population+of+oakland+california Area: Land only; https://en.wikipedia.org/wiki/Oakland,_California Pipeline Length: https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/PublicReportSSOServlet Rate: Collection: Flyer 2016 Sewer Service Charge Website - One Page (1-4-16) Final.pdf; http://www2.oaklandnet.com/Government/o/PWA/s/Sewer/index.htm Treatment: http://www.ebmud.com/wastewater/rates-and-charges/#single-family. Notes: aCounty and independent districts only; excludes rates charged by cities. This is average rate ranging from $360 for Harbor Industrial Sewer Maintenance District to $1,595 for Burlingame Hills Sewer Maintenance District. bData on Forced Mains not available. 2015-2016 San Mateo County Civil Grand Jury 64 Sanitary Sewer Overflows by Major Bay Area Sewer Providers Sanitary Sewer Overflowsa 2013 2014 2015 Average As %age of SMC San Mateo County 186 238 155 193 100% San Jose City 125 101 74 100 52% Central Contra Costa 46 49 43 46 24% Oakland 91 108 93 97 50% Source: State of California Environmental Protection Agency, Water Resources Control Board, California Integrated Water Quality System Project (CIWQS). SSO Report Form. Accessed March 17, 2016. https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/PublicReportSSOServlet. Note: aSan Francisco is not required to report Sanitary Sewer Overflows to the State Water Resources Control Board because it operates what is known as a combined sewer system, which includes sewage and storm water. Sanitary Sewer Overflows per Hundred Miles of Pipeline Sanitary Sewer Overflows / Hundred Miles 2013 2014 2015 Average As %age of SMC San Mateo County 9.3 11.9 7.7 9.6 100% San Jose City 5.5 4.4 3.2 4.4 45% Central Contra Costa 3.0 3.2 2.8 3.0 31% Oakland 9.1 10.8 9.3 9.7 101% Sources: Previous tables: System Characteristics of Major Bay Area Sewer Providers and Sanitary Sewer Overflows by Major Bay Area Sewer Providers. 2015-2016 San Mateo County Civil Grand Jury 65 APPENDIX C: WASTEWATER TREATMENT PLANTS SERVING INDEPENDENT SANITARY DISTRICTS Name Governance Bay- shore Westborough Monta- ra Grana- da East Palo Alto West Bay Other Entities Served SFPUC Southeast Treatment Plant 5 Directors, appointed by SF Mayor  San Francisco Regional Water Quality Control Plant (Palo Alto) Part of Palo Alto Public Works Department  Los Altos, Los Altos Hills, Mountain View, Palo Alto, Stanford Sewer Authority Mid- Coastside (SAM) 6 Directors, 2 each from City of Half Moon Bay, Granada CSD, and Montara SD   City of Half Moon Bay North San Mateo County Sanitation District, which contracts with City of Daly City Wastewater Treatment Plant Part of City of Daly City Water and Wastewater Resources Department  Daly City Silicon Valley Clean Water 4 Directors, 1 each from Belmont, Redwood City, San Carlos, and West Bay Sanitary District  Belmont, Redwood City, San Carlos Sources: City of Palo Alto Public Works-Watershed Protection Group. Clean Bay 2016 Pollution Prevention Plan, Palo Alto Regional Water Quality Control Plant. Undated. http://www.cityofpaloalto.org/civicax/filebank/documents/51362. North San Mateo County Sanitation District, City of Daly City. Sewage Treatment and Disposal. Accessed March 18, 2016. http://www.dalycity.org/city_hall/departments/wwr/divisions/waste_treatment.htm. San Francisco Public Utilities Commission, Sewer System Improvement Program. San Francisco's Sewage Treatment Facilities. Updated 6/14. http://www.sfwater.org/modules/showdocument.aspx?documentid=5801. Sewer Authority Mid-Coastside. An Agreement Creating the Sewer Authority Mid-Coastside. Consolidated and updated as of October 10, 2011. http://www.samcleanswater.org/destiny/consolidated_jpa.pdf. Silicon Valley Clean Water. Commission Overview. Accessed March 18, 2016. http://www.svcw.org/about/sitePages/overview.aspx. 2015-2016 San Mateo County Civil Grand Jury 66 APPENDIX D: SEWAGE SYSTEM CHARACTERISTICS BY DISTRICT Topic Unit of Measure Bayshore West- borough Montara Granada East Palo Alto West Bay Sanitary System Connections Population Served Number of People 4,513 14,050 6,012 6,000 29,000 55,000 Residential Customers - Single Family Number of Units 1,588 3,730 1,556 2,260 3,327 14,092 Residential Customers - Multi- Family Number of Units 22 14 57 101 3,510 4,499 Non-Residential Customers Number of Units 129 46 351 199 229 610 Connections Number 1,456 3,790 1,937 2,560 3,864 20,000 Equivalent Dwelling Units (EDU) Number of Units 2,163 N/A N/A 3,215 7,720 19,201 Sewer System Data Gravity Main Pipes Miles 15.0 20.2 23.7 34.0 35.0 200.0 Forced Main Pipes Miles 1.0 0.5 5.8 0.0 0.0 8.0 Pump Stations Number 1 3 41 1 0 12 Effluent Flow Rates Ave. Dry Weather (ADW) Flowa Thousand Gallons Per Day 265.0 672.7 390.0 401.0 1,400.0 3,470.0 Ave. Wet Weather (AWW) Flowb Thousand Gallons Per Day 328.2 721.1 950.0 463.0 5,000.0 9,000.0 2015-2016 San Mateo County Civil Grand Jury 67 Source: Sanitary Districts data input to Grand Jury, February-March 2016. Notes: aAverage Dry Weather Flow (ADW): The average flow of effluent, measured in thousands of gallons per day, when the ground water is at or near normal and a runoff condition is not occurring. bAverage Wet Weather Flow (AWW): The average flow of effluent during wet weather, measured in thousands of gallons per day. This is typically higher than ADW because of the infiltration of storm runoff into the wastewater system. 2015-2016 San Mateo County Civil Grand Jury 68 APPENDIX E: SANITARY SEWER OVERFLOWS BY DISTRICT BY YEAR Total Number of SSO Locations 2007 2008 2009 2010 2011 2012 2013 2014 2015 Bayshore 2 1 0 0 1 1 1 2 1 Westborough 2 1 1 0 0 0 1 0 0 Montara 1 15 11 8 4 5 1 4 7 Granada 3 5 2 5 2 3 5 2 1 East Palo Alto 1 1 2 0 0 0 0 0 0 West Bay 68 55 49 41 15 12 10 14 5 Source: State of California Environmental Protection Agency, Water Resources Control Board, California Integrated Water Quality System Project (CIWQS). SSO Report Form. Accessed March 17, 2016. https://ciwqs.waterboards.ca.gov/ciwqs/readOnly/PublicReportSSOServlet. Note: Bayshore amended the Water Resources Control Board value for 2007 (from 1 to 2). West Bay amended the Water Resources Control Board values for 2007 (from 46 to 68) and 2010 (from 40 to 41). 2015-2016 San Mateo County Civil Grand Jury 69 APPENDIX F: AGE PROFILE OF DISTRICT PIPELINES Pipeline Age Profile Bayshore Westborough Montaraa Granada East Palo Alto West Bay Weighted Average As %age of Total 2000-Present 11% 30% 12% 3% 16% 11% 12% 1980-1999 60% 20% 20% 26% 15% 16% 20% 1960-1979 25% 50% 34% 65% 25% 15% 25% 1940-1959 4% 0% 34% 0% 44% 34% 28% 1920-1939 0% 0% 0% 6% 0% 19% 12% 1900-1919 0% 0% 0% 0% 0% 5% 3% Pre-1960 Pipe 4% 0% 34% 6% 44% 58% 43% Source: District data input to Grand Jury, February-March 2016. Note: aMontara data did not identify pipeline age for the years before 1980. Although Montara Water and Sanitary District was formed in 1958, its roots go back to 1907 according to its website (http://mwsd.montara.org/about/history). The Grand Jury assumed, therefore, that 50% of its pre-1980 pipe was installed between 1940 and 1959, and that the remaining 50% was installed between 1960 and 1979. 2015-2016 San Mateo County Civil Grand Jury 70 APPENDIX G: SANITARY DISTRICT BUDGETS Budget for FY 2015-2016 Bayshore West- borough Montara Granada East Palo Alto West Bay Operating Income Permit & Inspection Fees $5,000 $0 $19,000 $0 $0 $50,000 Property Tax Receipts $200,000 $185,000 $230,000 $800,000 $318,000 $0 Sewer Service Charges $1,022,700 $2,313,257 $2,035,943 $1,293,000 $4,500,000 $22,899,707 Other Revenue $0 $0 $47,000 $55,500 $26,000 $624,614 Total Operating Revenue $1,227,700 $2,498,257 $2,331,943 $2,148,500 $4,844,000 $23,574,321 Operating Expenses Administration & Finance $130,600 $130,760 $466,958 $432,500 $2,025,600 $5,176,446 Collection $189,800 $148,323 $549,260 $379,083 $496,900 $2,893,195 Treatment $840,000 $1,900,012 $707,892 $1,019,855 $1,513,000 $5,881,095 Total Operating Expenses $1,160,400 $2,179,095 $1,724,110 $1,831,438 $4,035,500 $13,950,736 Net Cash Flow From Operations $67,300 $319,162 $607,833 $317,062 $808,500 $9,623,585 Investment Income Interest Income $12,000 $10,735 $11,281 $6,200 $52,540 $125,000 Total Investment Income $12,000 $10,735 $11,281 $6,200 $52,540 $125,000 Investment Expenses Collection Capital Projects $311,500 $0 $685,483 $572,000 $715,000 $8,059,500 Treatment Capital Projects $0 $0 $160,666 $210,045 $0 $5,343,044 Total Investment Expenses $311,500 $0 $846,149 $782,045 $715,000 $13,402,544 Net Cash Flow Used by Investments $(299,500) $10,735 $(834,868) $(775,845) $(662,460) $(13,277,544) 2015-2016 San Mateo County Civil Grand Jury 71 Bayshore West- borough Montara Granada East Palo Alto West Bay Financing Income Connection Fees $40,000 $0 $325,604 $14,100 $18,000 $50,000 Other Financing Income $0 $0 $20,692 $355,000 $0 $1,000 Total Financing Income $40,000 $0 $346,296 $369,100 $18,000 $51,000 Financing Expenses Loan Interest Expense $0 $0 $46,812 $0 $0 $0 Loan Principal Expense $0 $0 $65,025 $0 $159,000 $0 Total Financing Expense $0 $0 $111,837 $0 $159,000 $0 Net Cash Flow From Financing $40,000 $0 $234,459 $369,100 $(141,000) $51,000 Overall Projected Cash Flow $(192,200) $329,897 $7,424 $(89,683) $5,040 $(3,602,959) Sources: Bayshore Sanitary District. Annual Budget Fiscal Year 2015-2016. Adopted July 23, 2015. Accessed March 17, 2016. http://bayshoresanitary.com/about/2000s/FY%202015-16%20Budget%20001.pdf. East Palo Alto Sanitary District. Approved Budget FY 2015-2016. Accessed March 17, 2016. http://www.epasd.com/home/showdocument?id=538. Granada Community Services District. Fiscal Year 2015/16 Budget. Undated. http://granada.ca.gov/wp-content/uploads/2014/02/GSD_FY_2015-16_Budget.pdf. Montara Water and Sanitary District. Fiscal Year 2015-2016 Budget Executive Summary. Undated. http://mwsd.montara.org/assets/uploads/documents/rates-and- fees/MWSD_2015-16_adopted_budget.pdf. Westborough Water District. Statement of Income and Expense, Adopted June 18, 2015. June 18, 2015. http://www.westboroughwater.com/Documents/ADOPTEDBUDGET20152016.pdf. West Bay Sanitary District. General Fund and Capital Asset Fund Budgets & Reserves, FY 2015-16, Approved June 10, 2015. June 10, 2015. https://westbaysanitary.org/wp-content/uploads/2015/06/FY2015-16-Budget-Approved.pdf. Note: District budgets were reformatted to a Grand Jury-designed standard format for comparison across districts. Each district was given an opportunity to review the reformatting and to make adjustments to capture its data as accurately as possible. 2015-2016 San Mateo County Civil Grand Jury 72 Budget for FY 2014-2015 Bayshore Westborough Montara Granada East Palo Alto West Bay Operating Income Permit and Inspection Fees $2,000 $0 $14,000 $0 $0 $50,000 Property Tax Receipts $150,000 $179,000 $225,000 $750,000 $318,000 $0 Sewer Service Charges $1,045,000 $2,154,281 $2,181,853 $1,273,000 $4,366,000 $20,909,847 Other Revenue $0 $0 $46,000 $60,900 $30,000 $48,000 Total Operating Revenue $1,197,000 $2,357,181 $2,466,853 $2,083,900 $4,714,000 $21,007,847 Operating Expenses Administration & Finance $117,000 $124,295 $416,538 $427,900 $1,980,000 $4,713,532 Collection $183,100 $150,840 $490,613 $354,561 $410,400 $2,749,220 Treatment Facility $800,000 $1,771,730 $624,021 $1,082,555 $1,375,000 $5,350,000 Total Operating Expenses $1,100,100 $2,046,865 $1,531,172 $1,865,016 $3,765,400 $12,812,752 Net Cash Flow From Operations $96,900 $286,416 $935,681 $218,884 $948,600 $8,195,095 Investment Income Interest Income $13,000 $10,117 $31,974 $7,000 $54,000 $125,000 Total Investment Income $13,000 $10,117 $31,974 $7,000 $54,000 $125,000 Investment Expenses Collection Capital Projects $170,000 $79,000 $821,923 $370,000 $576,000 $7,212,500 Treatment Capital Projects $0 $0 $63,360 $156,500 $0 $4,136,382 Total Investment Expenses $170,000 $79,000 $885,283 $526,500 $576,000 $11,348,882 Net Cash Flow Used by Investments $(157,000) $(68,883) $(853,309) $(519,500) $(522,000) $(11,223,882) Financing Income 2015-2016 San Mateo County Civil Grand Jury 73 Bayshore Westborough Montara Granada East Palo Alto West Bay Connection Fees $10,000 $0 $228,488 $14,100 $18,000 $50,000 Other Financing Income $0 $0 $0 $135,000 $0 $1,000 Total Financing Income $10,000 $0 $228,488 $149,100 $18,000 $51,000 Financing Expenses Loan Interest Expense $0 $0 $108,915 $0 $0 $0 Loan Principal Expense $0 $0 $0 $0 $444,600 $0 Total Financing Expense $0 $0 $108,915 $0 $444,600 $0 Net Cash Flow From Financing $10,000 $0 $119,573 $149,100 $(426,600) $51,000 Overall Projected Cash Flow $(50,100) $217,533 $201,945 $(151,516) $0 $(2,977,787) Sources: Bayshore Sanitary District. Fiscal Year 2014-2015 Budget. July 24, 2014. Accessed March 17, 2016. http://bayshoresanitary.com/about/2000s/FY%202014- 2015.pdf. East Palo Alto Sanitary District. Approved Budget FY 2014-2015. Accessed March 17, 2016. http://38.106.4.240/Home/ShowDocument?id=446. Granada Sanitary District. Fiscal Year 2014/15 Sewer District Budget. Undated. http://granada.ca.gov/wp-content/uploads/2014/02/GSD_FY_2014- 15_Budget.pdf. Montara Water and Sanitary District. Budget FY 2014-2015. Undated. http://mwsd.montara.org/assets/uploads/documents/rates-and- fees/Fiscal%20year%202014-2015%20budget%20Summary.pdf. Westborough Water District. Statement of Income and Expense, Adopted June 12, 2014. June 12, 2014. http://www.westboroughwater.com/Documents/ADOPTEDBUDGET20142015.pdf. West Bay Sanitary District. General Fund and Capital Asset Fund Budgets & Reserves, FY 2015-16, Approved June 10, 2015. June 10, 2015. https://westbaysanitary.org/wp-content/uploads/2015/06/FY2015-16-Budget-Approved.pdf. Note: District budgets were reformatted to a Grand Jury-designed standard format for comparison across districts. Each district was given an opportunity to review the reformatting and to make adjustments to capture its data as accurately as possible. 2015-2016 San Mateo County Civil Grand Jury 74 Budget for Bayshore Sanitary District 2015-2016 San Mateo County Civil Grand Jury 75 Budget for Westborough Water District 2015-2016 San Mateo County Civil Grand Jury 76 Budget for Montara Water and Sanitary District 2015-2016 San Mateo County Civil Grand Jury 77 Budget for Granada Community Services District 2015-2016 San Mateo County Civil Grand Jury 78 Budget for East Palo Alto Sanitary District 2015-2016 San Mateo County Civil Grand Jury 79 Budget for West Bay Sanitary District 2015-2016 San Mateo County Civil Grand Jury 80 APPENDIX H: SANITARY DISTRICT BUDGET ANALYSIS FY 2015-2016 Bayshore West- borough Montara Granada East Palo Alto West Bay All Revenue $1,279,700 $2,508,992 $2,689,520 $2,523,800 $4,914,540 $23,750,321 Treatment Capital & Expense $840,000 $1,900,012 $868,558 $1,229,900 $2,228,000 $11,224,139 Treatment as % of Revenue 66% 76% 32% 49% 31% 47% As % of Revenue Sewer Service Charges 80% 92% 76% 51% 92% 96% Property Tax 16% 7% 9% 32% 6% 0% Permit & Connection Fees 4% 0% 14% 15% 0% 0% Interest & Other 1% 0% 2% 2% 2% 3% Rate Analysis Average Residential Rate $613 $512 $810 $402 $575 $973 Property Tax $200,000 $185,000 $230,000 $800,000 $318,000 $0 # of Customers 1,739 3,790 1,964 2,560 7,066 19,201 Property Tax/Customer $115 $49 $117 $313 $45 $0 Rate w/o Property Tax Benefit $728 $561 $927 $715 $620 $973 Operating Expense Analysis Miles of Sewer Pipe 16.0 20.7 29.5 34.0 35.0 208.0 Collection Cost/Mile $11,863 $7,165 $18,619 $11,148 $14,197 $13,910 Sources: See Appendix D: Sewage System Characteristics by District. See Appendix G: Sanitary District Budgets. See Appendix I: Sanitary District Sewer Rates. 2015-2016 San Mateo County Civil Grand Jury 81 APPENDIX I: SANITARY DISTRICT SEWER RATES Payment Method and Calculation Type Name How Paid How Calculated Independent Bayshore Sanitary District Property Tax Bill Water Consumptiona Independent Westborough Water District Property Tax Bill Water Consumption Independent Montara Water & Sanitary District Property Tax Bill Water Consumption Independent Granada Community Services District Property Tax Bill Fixed Rateb Independent East Palo Alto Sanitary District Property Tax Bill Fixed Rate Independent West Bay Sanitary District Property Tax Bill Fixed Rate SMC County Burlingame Hills Sewer Maintenance Property Tax Bill Fixed Rate SMC County Crystal Springs County Sanitation Property Tax Bill Fixed Rate SMC County Devonshire County Sanitary Property Tax Bill Fixed Rate SMC County Edgewood Sewer Maintenance Property Tax Bill Fixed Rate SMC County Emerald Lake Heights Sewer Maintenance-Zone 1 Property Tax Bill Fixed Rate SMC County Emerald Lake Heights Sewer Maintenance-Zone 2 Property Tax Bill Fixed Rate SMC County Fair Oaks Sewer Maintenance Property Tax Bill Fixed Rate SMC County Harbor Industrial Sewer Maintenance Property Tax Bill Fixed Rate SMC County Kensington Square Sewer Maintenance Property Tax Bill Fixed Rate SMC County Oak Knoll Sewer Maintenance Property Tax Bill Fixed Rate SMC County Scenic Heights County Sanitation Property Tax Bill Fixed Rate Notes: aDistricts with water consumption-based rates provided an average residential rate. Each single-family residence is charged based on water consumption during winter months. bFixed rate: All single-family residences are charged a fixed rate set annually. 2015-2016 San Mateo County Civil Grand Jury 82 Sewer Rates and Growth—Independent Districts Name 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 % Growth 2011 to 2016 Bayshore Sanitary District $613 $613 $613 $613 $613 $613 $613 100% Westborough Water District $397 $396 $391 $413 $465 $512 $516 129% Montara Water & Sanitary District $728 $711 $741 $763 $904 $810 $751 111% Granada Community Services District $365 $383 $402 $402 $402 $402 $402 110% East Palo Alto Sanitary District $485 $520 $520 $520 $550 $575 $575 119% West Bay Sanitary District $650 $690 $752 $820 $893 $973 $1,031 150% Average Rate and Growth $540 $552 $570 $589 $638 $648 $648 120% Sources: 2015-2016: Provided by Sanitary Districts. Bayshore Data submitted by district. Based on 200 gallons per day for an average family. Westborough Data submitted by district; based on total units in January and February of each year divided by number of customers times the applicable rate. Montara Data submitted by district; average bill based on average water consumed times the applicable rate. Granada 2014-2015: Bay Area Clean Water Agencies, Sewer Rate Survey 2015. http://bacwa.org/wp-content/uploads/2016/01/BACWA-Sewer-Rate-Survey- May-2015.pdf 2013-2014: Granada Sanitary District, Fiscal Year 2013/14 Budget. http://granada.ca.gov/wp-content/uploads/2014/02/GSD_FY_2013-14_Budget.pdf. 2012-2013: Granada Sanitary District, Basic Financial Statements and Supplemental Information, Years Ended June 30, 2013 and 2012. http://granada.ca.gov/wp-content/uploads/2014/02/GSD_FY_2012-13_Audit.pdf. 2010-2011; 2011-2012: Granada Sanitary District, Basic Financial Statements and Supplemental Information, Years Ended June 30, 2012 and 2011. http://granada.ca.gov/wp-content/uploads/2014/02/GSD_FY_2011-12_Audit.pdf. East Palo Alto 2013-2014; 2014-2015: East Palo Alto Sanitary District, Agenda Packet July 27, 2014, Resolution 1129. http://www.epasd.com/home/showdocument?id=84. 2012-2013: East Palo Alto Sanitary District, Agenda Packet May 18, 2013, Resolution 1086, http://www.epasd.com/home/showdocument?id=262. 2011-2012: East Palo Alto Sanitary District, Minutes, June 7, 2012, Resolution 1065, http://38.106.4.240/home/showdocument?id=112. 2010-2011: East Palo Alto Sanitary District, Agenda Packet, April 5, 2012, Audit for Fiscal Year End June 30, 2011, http://www.epasd.com/home/showdocument?id=240. 2015-2016 San Mateo County Civil Grand Jury 83 West Bay HF&H Consultants, LLC, West Bay Sanitary District. Sewer Rate Study, Final Report, April 22, 2015. April 22, 2015. http://westbaysanitary.org/wsbd- prod/resources/1400/WBSD_FINALReport_22April2015.pdf. 2015-2016 San Mateo County Civil Grand Jury 84 Sewer Rates and Growth—County-Managed Districts Name 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 % Growth 2011-2016 Burlingame Hills Sewer Maintenance $1,150 $1,595 $1,595 $1,595 $1,595 $1,595 Not Available 139% Crystal Springs County Sanitation $1,200 $1,200 $1,350 $1,350 $1,350 $1,350 Not Available 113% Devonshire County Sanitary $900 $1,000 $1,025 $1,050 $1,075 $1,100 $1,125 122% Edgewood Sewer Maintenance $900 $950 $1,025 $1,100 $1,175 $1,250 $1,325 139% Emerald Lake Heights Sewer Maintenance-Zone 1 $1,100 $1,130 $1,160 $1,190 $1,220 $1,250 $1,280 114% Emerald Lake Heights Sewer Maintenance-Zone 2 $770 $810 $850 $890 $930 $970 $1,010 126% Fair Oaks Sewer Maintenance $420 $470 $500 $530 $560 $590 $620 140% Harbor Industrial Sewer Maintenance $310 $320 $330 $340 $350 $360 $370 116% Kensington Square Sewer Maintenance $900 $975 $1,015 $1,055 $1,095 $1,135 $1,175 126% Oak Knoll Sewer Maintenance $800 $900 $930 $960 $990 $1,020 $1,050 128% Scenic Heights County Sanitation $950 $1,050 $1,080 $1,110 $1,140 $1,170 $1,200 123% Average Rate and Growth $855 $945 $987 $1,015 $1,044 $1,072 $1,017 125% Source: San Mateo County Public Works. Sewer Service Rate Information. Accessed March 11, 2016. http://publicworks.smcgov.org/sewer-service-rate-information. County of San Mateo, Inter-Departmental Correspondence, Department of Public Works, Executive Summary - Adoption of Proposed Sewer Service Rates and Fiscal Year 2011-12 Sewer Service Charges Report for the Ten County Sewer/Sanitation Districts Governed by the Board of Supervisors, July 11, 2011, http://publicworks.smcgov.org/sites/publicworks.smcgov.org/files/SSC%202011%20BOS%2020110726.pdf. 2015-2016 San Mateo County Civil Grand Jury 85 Sewer Rates and Growth—Combined Name 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 % Growth 2011-2016 Combined Average Rate and Growth (Independent and County-Managed Districts $743 $807 $840 $865 $900 $922 $870 124% Consumer Price Index, San Francisco Area, Annual Rate as of June 2.40% 2.60% 2.60% 3.0% 2.30% 114% Source: United States Department of Labor, Bureau of Labor Statistics, Western Information Office, Consumer Price Index, San Francisco Area-February 2016. http://www.bls.gov/regions/west/news-release/consumerpriceindex_sanfrancisco.htm. 2015-2016 San Mateo County Civil Grand Jury 86 APPENDIX J: BOARD COSTS FOR SANITARY DISTRICTS FY 2015-2016 Bayshore West- borough Montara Granada East Palo Alto West Bay Regular Meeting Compensation $190 $100 $75 $145 $293 $207 Regular Meeting Frequencya Monthly Monthly Twice Monthly Monthly Monthly Twice Monthly Board Expenses Directors' Fees $15,000 $5,250 $3,300 $11,000 $56,000 $34,404 Memberships $3,000 $15,816 $5,000 $15,000 $12,000 Meetings and Travel $5,000 $3,350 $1,000 $14,000 $9,000 Other $12,000 $2,000 $6,800 $0 Total Board Expenses $35,000 $24,416 $5,300 $17,000 $91,800 $55,404 Expense/Director $7,000 $4,883 $1,060 $3,400 $18,360 $11,081 Benefits Dental, Life Insurance for Directors and Spouse/Partner or Children None None None Dental, Vision, Health None Professional Membershipsb CASA, CSDA, USA BAWSCA, SSF CoC ACWA, CSDA None CASA, CSDA CASA, CSDA, CoC CASA Source: District data input to Grand Jury, February-March 2016. Notes: aExcludes committee meetings bAssociation of California Water Agency ACWA Bay Area Clean Water Agencies BACWA Bay Area Water Supply & Conservation Agency BAWSCA California Association of Sanitation Agencies CASA California Special Districts Association CSDA Chamber of Commerce CoC Underground Service Alert USA 2015-2016 San Mateo County Civil Grand Jury 87 APPENDIX K: DIRECTOR TENURE BY DISTRICT District & Directors Date 1st Appointed / Elected Years of Service Next Up Bayshore Iris Gallagher 12/7/93 22.5 2017 Walter Quinteros 2/25/93 23.3 2019 Norman Rizzi 1/24/02 14.4 2019 Mae Swanbeck 9/22/05 10.8 2019 Kenneth Tonna 8/26/04 11.8 2017 Average Tenure 16.6 Westborough David J. Irwin 1/12/12 4.4 2019 William O. Lopez 12/11/08 7.5 2019 Janet G. Medina 8/12/04 11.8 2019 Tom Chambers 11/4/97 18.6 2017 Perry H. Bautista 11/7/89 26.6 2017 Average Tenure 13.8 Montara Jim Harvey 11/4/03 12.6 2018 Dwight Wilson 11/5/13 2.6 2018 Bill Huber 11/5/13 2.6 2018 Kathryn Slater-Carter 11/4/03 12.6 2016 Scott Boyd 11/4/03 12.6 2016 Average Tenure 8.6 2015-2016 San Mateo County Civil Grand Jury 88 District & Directors Date 1st Appointed / Elected Years of Service Next Up Granada Leonard Woren 11/4/97 18.6 2018 Matthew Clark 11/4/03 12.6 2016 Jim Blanchard 8/29/13 2.8 2016 David Seaton 11/5/13 2.6 2018 Ric Lohman 6/17/04 12.0 2018 Average Tenure 9.7 East Palo Alto Glenda Savage-Johnson 11/6/07 8.6 2019 Betsy Yanez 11/6/07 8.6 2019 Joan Sykes-Miessi 11/4/03 12.6 2017 Goro Mitchell 11/6/07 8.6 2019 Dennis Scherzer 11/3/09 6.6 2017 Average Tenure 9.0 West Bay Edward Moritz 8/1/09 6.8 2017 Fran Dehn 8/1/08 7.8 2019 David Walker 11/1/99 16.6 2019 Roy Thiele-Sardina 11/5/13 2.6 2017 George Otte 5/9/16 0.1 2017 Average Tenure 6.8 Sources: League of Women Voters of California, Smart Voter. Special Districts Contests for San Mateo County, CA, November 6, 2001. Accessed March 4, 2016. http://www.smartvoter.org/2001/11/06/ca/sm/special_districts.html. League of Women Voters of California, Smart Voter. Special Districts Contests for San Mateo County, CA, November 4, 2003. Accessed March 4, 2016. http://www.smartvoter.org/2003/11/04/ca/sm/special_districts.html. League of Women Voters of California, Smart Voter. Special Districts Contests for San Mateo County, CA, November 8, 2005. Accessed March 4, 2016. http://www.smartvoter.org/2005/11/08/ca/sm/special_district.html. League of Women Voters of California, Smart Voter. Special Districts Contests for San Mateo County, CA, November 3, 2009. Accessed March 4, 2016. http://www.smartvoter.org/2009/11/03/ca/sm/special_district.html. League of Women Voters of California, Smart Voter. Special Districts Contests for San Mateo County, CA, November 8, 2011. Accessed March 4, 2016. http://www.smartvoter.org/2011/11/08/ca/sm/special_district.html. 2015-2016 San Mateo County Civil Grand Jury 89 San Mateo County. Official Election Results, San Mateo County Consolidated Municipal, School, and Special District Election, November 6, 2001. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2001/nov2001/Official.pdf. San Mateo County. Official Election Results, San Mateo County Consolidated Municipal, School, and Special District Election, November 4, 2003. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2003/nov2003/Master%20Summary%20Report.pdf. San Mateo County. Official Election Results, San Mateo County Consolidated Special Statewide Election, November 8, 2005. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2005/nov2005/Master%20Summary%20Report.pdf. San Mateo County. Official Election Results, San Mateo County Consolidated Municipal, School, and Special Election, November 6, 2007. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2007/nov2007/Tally/112707/nov07_final_fusion.pdf. San Mateo County. Roster of Candidates – Local Offices, Consolidated Municipal, School, and Special District Election, November 6, 2007. Attachment to email from Lucas Morrison, San Mateo County Registration & Elections Division, March 14, 2016. San Mateo County. Statement of Vote, San Mateo County Consolidated Municipal, School, and Special District Election, November 6, 2007. Attachment to email from Lucas Morrison, San Mateo County Registration & Elections Division, March 14, 2016. San Mateo County. Statement of Vote, San Mateo County Consolidated Municipal, School, and Special District Election, November 3, 2009. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2009/nov2009/final/nov32009SOV.pdf. San Mateo County. Statement of Vote, San Mateo County Consolidated Municipal, School, and Special District Election, November 8, 2011. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2011/nov2011/final/SOV_Nov2011.pdf. San Mateo County. Roster of Candidates, San Mateo County Consolidated Municipal, School, and Special District Election, November 5, 2013. Accessed March 4, 2016. https://www.shapethefuture.org/elections/2013/nov/documents/candidaterosterweb.pdf. San Mateo County. Statement of Vote, San Mateo County Consolidated Municipal, School, and Special District Election, November 5, 2013. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2013/nov/official/Nov2013SOV.pdf. San Mateo County. Roster of Candidates, San Mateo County Consolidated Municipal, School, and Special District Election, November 3, 2015. Accessed March 4, 2016. https://www.shapethefuture.org/elections/2015/nov_mailedballot/documents/candidaterosterweb.pdf. San Mateo County. Statement of Vote, San Mateo County Consolidated Municipal, School, and Special District Election, November 3, 2015. Accessed March 4, 2016. https://www.shapethefuture.org/elections/results/2015/nov/official/SOV.pdf. Note: All districts provided additional detail such as dates of appointment not available from voting records. 2015-2016 San Mateo County Civil Grand Jury 90 APPENDIX L: REFERENCES TO “DISASTER” OR “EMERGENCY” IN BOARD MEETING MINUTES The Grand Jury reviewed the most recent 12 months of minutes from each of the six independent districts. We searched each document for the following words: “disaster,” “emergency,” and “emergencies.” The following records the actual text including these words in the minutes of the districts. None of the minutes record discussions regarding emergency preparedness or response. The emergencies referred to in the minutes refer to localized sewer blockages or overflows. Bayshore 4/23/15 The Maintenance Director said that he has not heard from the Daly City Water/Wastewater Department with regard to providing emergency and preventive maintenance to the District. There was one emergency generator alarm; however no problem was found. 5/28/15 None 6/16/15 None 6/25/15 In light of this information, Mr. Yeager wrote them a letter and explained that the District will not provide emergency service again. 7/23/15 Since the District's emergency alarm system uses a phone line, it was felt that AT&T is more reliable. 8/27/15 Broken link 9/17/15 None 10/22/15 Broken link 11/19/15 Daly City Library site. President Gallagher was notified of an emergency meeting on December 3. He explained what the District had in mind as it plans for the future, i.e., outsourcing the routine, preventive and emergency services for the collection system. 12/17/15 None 1/28/16 Mr. Landi provided the South San Francisco Public Works/City Engineer with information to help him evaluate the possibility of providing preventive and emergency service for the District. They are meeting next week. 2/25/16 None 3/24/16 None Source: Bayshore Sanitary District, Public Meetings, Minutes on Dates Listed Above. http://bayshoresanitary.com/meetings/index.html. Westborough 4/9/15 None 5/14/15 None 6/18/15 None 7/9/15 None 8/13/15 None 2015-2016 San Mateo County Civil Grand Jury 91 Westborough 9/10/15 Engineer Pakpour reported some of the benefits were the State would cover a larger portion of disaster losses, if the District is included in a Hazard Mitigation Grant Program, Pre-Disaster Mitigation, Flood Mitigation Assistance and Severe Repetitive Loss Grant Programs. 10/8/15 None 11/12/15 None 11/21/15 The Board of Directors met to hold a hands on training session on how to restore water service in the event of a major disaster. 12/10/15 None 1/14/16 None 2/11/16 Broken link 3/12/16 None Source: Westborough Water District, Board Meeting Schedule, Minutes on Dates Listed Above, http://www.westboroughwater.com/board_meetings.htm. Montara 3/5/15 None 3/19/15 None 4/2/15 None 5/7/15 None 5/21/15 References to emergency related to water services 6/4/15 References to emergency related to water services 7/16/15 References to emergency related to water services 8/6/15 None 9/3/15 None 10/1/15 None 10/15/15 None 11/5/15 None 12/3/15 None 1/7/16 None 2/4/16 None 3/3/16 None 3/17/16 Review and possible action concerning sewer emergency repair on Cedar Street Source: Montara Water District, Board Meetings, selected pages provided by Montara. Montara minutes are embedded in Agenda Packets, making them time consuming to locate. Granada 3/19/15 None 4/23/15 None 5/21/15 None 6/18/15 None 7/23/15 None 2015-2016 San Mateo County Civil Grand Jury 92 9/3/15 None 10/15/15 None 11/19/15 None 12/17/15 Broken link 1/21/16 None Source: Granada Community Services District, Agendas/Minutes, Minutes on Dates Listed Above, http://granada.ca.gov/agendaminutes/. East Palo Alto 2/5/15 None 3/5/15 None 4/9/15 None 5/7/15 None 6/4/15 None 6/18/15 None 7/2/15 None 8/6/15 He asked for a report on the current policy on units not on the rolls, what are the rights on private property in the event of an emergency, and what is done in the event of a known extra unit where access is denied. 9/3/15 None 10/1/15 None 11/5/15 None 12/10/15 None 1/7/16 None Source: East Palo Alto Sanitary District, About EPSD, Board Meetings Agendas and Minutes, Minutes on Dates Listed Above, http://www.epasd.com/about-epasd/board-of-directors/agendas-and-minutes. West Bay 4/22/15 None 5/6/15 None 5/27/15 None 6/10/15 None 6/24/15 None 7/15/15 None 7/29/15 None 8/3/15 None 8/12/15 None 8/26/15 None 9/15/15 None 10/14/15 None 10/28/15 None 11/4/15 None 11/24/15 None 12/9/15 None 2015-2016 San Mateo County Civil Grand Jury 93 West Bay 1/13/16 None 1/27/16 None 2/10/16 Responded to emergency pump station call due to power failure. 2/24/16 None 3/9/16 None 3/23/16 None 4/13/16 None Source: West Bay Sanitary District, About Us, Agenda & Minutes, Minutes on Dates Listed Above, https://westbaysanitary.org/about-us/agenda-minutes/. Issued: June 29, 2016 Page 1 of 3 September 7, 2016 Hon. Joseph C. Scott Judge of the Superior Court c/o Charlene Kresevich Hall of Justice 400 County Center, 2nd Floor Redwood City, CA 94063-1655 Subject: CITY OF SOUTH SAN FRANCISCO’S RESPONSE TO THE 2015-16 SAN MATEO COUNTY CIVIL GRAND JURY REPORT TITLED "SAN MATEO COUNTY’S COTTAGE INDUSTRY OF SANITARY DISTRICTS" Honorable Judge Scott, This letter was approved by the City Council of the City of South San Francisco at its public meeting on September 7, 2016. Below is the City of South San Francisco’s response to the 2015-2016 San Mateo County Civil Grand Jury Report entitled "San Mateo County’s Cottage Industry of Sanitary Districts" Specifically, the Grand Jury recommends that the Board of the Westborough Water District and the City Councils of Daly City and South San Francisco do the following: R4. Form a committee of Board members (Westborough Water District), Council members (Daly City, South San Francisco), and staff from each to discuss the assumption of services provided by Westborough Water District into Daly City and/or South San Francisco. Evaluate alternatives and determine the benefits to ratepayers. Issue a report with recommendations and a plan by September 30, 2017. Work with California Water Service Company on this initiative. City Response: Staff from the City of South San Francisco, the City of Daly City and the Westborough Water District have met and thoroughly studied the Grand Jury recommendation that Daly City and/or South San Francisco assume the services provided by Westborough Water District. At this time the City of South San Francisco declines to further evaluate the suggestion that the City of South San Francisco assume the services currently provided by the Westborough Water District. The boundaries of the Westborough Water District cover a portion of the City of South San Francisco, and a small area of Daly City. Sanitary sewer services for the Westborough Water District are provided by the City of Daly City-North San Mateo County Sanitation District. The Westborough Water District also provides potable water service to approximately 4,000 residential, commercial and irrigation service connections, with water being supplied from the City and County of San Francisco Water Department. The City of South San Francisco does not provide water service to its residents or businesses anywhere in the City, as this is largely provided by California Water Service, and to a lesser Page 2 of 3 degree by Westborough Water District. At this time the City of South San Francisco, as a policy decision, does not desire to become a water utility and thus has no interest in assuming this function from the Westborough Water District. The City of South San Francisco, in partnership with the City of San Bruno, does operate and maintain an outstanding wastewater treatment facility. This facility is serviced by a well maintained system of sanitary sewer lines and sanitary sewage pump stations in that portion of South San Francisco closest to the treatment facility. The geographic area served by the Westborough Water District is located in the part of South San Francisco that is furthest from the South San Francisco-San Bruno Water Quality Control Plant (SSF-SB WQCP). There are no existing large diameter sewer pipelines suitable for conveying Westborough's sewage to the SSF- SB WQCP. The costs of connecting the Westborough Water District sanitary sewers to the South San Francisco sanitary sewer system are economically prohibitive. Capital costs associated with this project would include, at a minimum, the addition of many miles of large-diameter sewer piping to convey sewage from the Westborough area to the SSF-SB WQCP and, a treatment capacity upgrade to the existing treatment plant. The multi-million dollar capital cost of the project would have to be financed with debt service. If South San Francisco were to become the sanitary sewer treatment provider for that area currently served by the Westborough Water District, a connection fee would be assessed on Westborough’s connections. In addition, the City of South San Francisco, in its operation of the SSF-SB WQCP, would also collect annual sewer service fees from the residents of Westborough. Given the expected capital costs, and associated connection and annual fees, little financial benefit is seen for the rate payer currently in the Westborough Water District. Additionally, it is unlikely that the State Water Resources Control Board (SWRCB) would approve Westborough's sewage addition to the SSF-SB WQCP because of the San Francisco Bay’s assimilative capacity limitations. These limitations are reflected in the San Francisco Bay Basin Plan which limits the amount of new pollutants that are allowed to be discharged into San Francisco Bay. Even though treatment plants such as the SSF-SB WQCP are operated in compliance with stringent National Pollutant Discharge Elimination System (NPDES) discharge requirements, the effluents from these plants still may contain trace pollutants that may contribute to the overall deterioration the eco system in San Francisco Bay. Lastly, to gain SWRCB approval, receiving water studies must be conducted that then must conclude that the addition of Westborough’s sewage to the SSF-SB WQCP treatment plant would not pose any adverse impacts to San Francisco Bay. Prior to making a final decision on whether or not to allow this additional discharge into the Bay, public hearings would be held to more fully vet the issue, at which, staff anticipates a substantial opposition from environmental protection groups. For the above reasons, the City of South San Francisco does not agree with the Grand Jury recommendation R4. Page 3 of 3 If you have any questions, please contact the City of South San Francisco City Manager, Mike Futrell, at (650) 877-8500. Sincerely, Mark Addiego Mayor, City of South San Francisco 2015-2016 San Mateo County Civil Grand Jury17 Figure 4:Map of Independent Sanitary Districts in San Mateo County Source: San Mateo County Local Agency Formation Commission. City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:16-747,Version:1 Report regarding the League of California Cities resolution to prioritize traffic safety,confirming Councilmember Garbarino as the appointed member of the General Resolutions Committee to vote on behalf of the City of South San Francisco,and confirming the candidates on the Peninsula Division Executive Committee ballot.(Marian Lee,Assistant City Manager) RECOMMENDATION It is recommended that the City Council discuss the League of California Cities (LOCC)support for the adoption and implementation of initiatives to prioritize traffic safety throughout California and the 2016-2017 Peninsula Division Executive Committee Officer ballot and provide direction to staff. BACKGROUND/DISCUSSION Initiatives to Prioritize Traffic Safety The LOCC’s 2016 Annual Conference General Resolutions Committee is scheduled to meet on Thursday,October 6, 2016 at 1:00 p.m.in Long Beach.At that time,the General Resolutions Committee will consider and make recommendations on one proposed resolution committing the LOCC to support transportation safety policies like Vision Zero and Toward Zero Deaths. Vision Zero and Toward Zero Deaths are transportation safety policies that have been adopted a growing number of U.S. cities to reduce the number of traffic fatalities,a widespread problem in America today.The overall goal of the LOCC resolution is to: ·Encourage implementation of projects and programs that prioritize safety; ·Help California elevate the health and safety of its residents; and ·Position LOCC as a leader in national efforts to promote a culture of safe mobility for all. Please see Attachment 1 for more information about the LOCC resolution.This packet of information was provided by the LOCC. Councilmember Richard Garbarino has been appointed to the 2016 Annual Conference General Resolutions Committee. Based on discussion and direction from City Council,Councilmember Garbarino as a member of the committee,will vote on behalf of South San Francisco accordingly. 2016-2017 Peninsula Division Executive Committee Officers Ballot The election for the Executive Committee for the Peninsula Division of the League of California Cities will be held on Friday,October 7,2016 at the Division’s Annual Breakfast meeting during the LOCC Annual Conference in Long Beach, CA. Each city is entitled to one vote for each office on the attached ballot.The completed ballot should be mailed back to the League of Cities by Thursday,September 15,2016 or can be delivered in person at the Annual Breakfast event on Friday, October 7, 2016. Please refer to Attachment 2 for ballot information provided by the LOCC. City of South San Francisco Printed on 9/1/2016Page 1 of 2 powered by Legistar™ File #:16-747,Version:1 Based on discussion and direction from City Council, the ballot will be appropriately completed and submitted. FUNDING There is no budget impact. CONCLUSION It is recommended that the City Council of South San Francisco take the following actions: ·Consider the LOCC’s proposed resolution to support Vision Zero/Toward Zero Deaths strategies,and other transportation safety programs; ·If in favor of the resolution,direct staff to prepare a letter of support from the Mayor addressed to the President of the LOCC; ·Confirm that Councilmember Richard Garbarino,as the appointed member of the General Resolutions Committee, will register and attend the General Resolutions Committee meeting to vote; and ·Review and confirm the offices on the ballot that will receive a vote from the City of South San Francisco. Attachments: 1.League of California Cities Annual Conference Resolutions Packet 2.2016-17 Peninsula Division Executive Committee Officers Ballot City of South San Francisco Printed on 9/1/2016Page 2 of 2 powered by Legistar™