Wednesday, August 5, 2015

[Alameda County] Grand Jury Criticizes Zone 7 Over Transparency Issues


Zone 7 Water Agency allegedly lacked transparency and may have committed "infractions" of the Brown Act in its 4784-acre acquisition of Patterson Ranch land for use as a public watershed adjacent to state reservoir Lake Del Valle. This conclusion was reached by the Alameda County Grand Jury in its 2014-15 report.
The grand jury makes no criminal allegations, unlike the county criminal grand jury. However, one of its duties focuses on the "good government" function of listening to citizens' complaints about governmental agencies. One such complaint was made against Zone 7.
Citizens' complaints are made anonymously; all testimony is secret; and grand jurors would be committing a criminal act if they were to divulge the identity of any source that they interviewed, said Rob Warren, the deputy district attorney who supervises the grand jury.
The report, issued June 29, says that it does not question the $18.6 million price that Zone 7 paid for the land, which was held in private ownership. However, the report objects to what it calls the lack of a public process in discussing such issues as where in the budget the money should come from, how funding $2.7 million of it from developer drainage fees is justified, and why it is important to acquire watershed land. The case for these should have been made publicly and open to public comment, says the report.
Zone 7 general manager Jill Duerig told The Independent, "We are reviewing (the report). We don't necessarily agree with their characterization, and we will be responding."
The report has several recommendations for Zone 7. In additoin, the grand jury wants to see the responses in the agency's reply, which is due Sept. 29.
One recommendation relates to providing ample time and opportunity for public comment and participation before taking action, a reference to the grand jury's comments about the Patterson Ranch land.
Reporting out of closed sessions the decisions, actions and the individual votes by each board member must also be done. The report says that records show that there were closed session items concerning Patterson Ranch discussed eight times between the Feb. 20, 2013 and and Sept. 18, 2013 meetings. There were no reports about Patterson Ranch at those eight meetings, says the grand jury.
Zone 7 should also be more transparent by making archived video or audio recordings of public meetings available on its website, according to the grand jury report.
From time to time during the past year or so, Zone 7 board members have briefly mentioned televising the meetings and archiving them. However, they were looking for an inexpensive way to do so.
The Zone 7 administration committee was scheduled to meet on July 8, after the Independent's deadline, to discuss the possibility of posting meetings on-line. According to the board packet, which compares methods and costs, an inexpensive first step would be to shoot videos and post them within 48 hours on Youtube.
A look at the Feb. 20, 2013 meeting agenda posted on-line shows that it listed property negotiations as scheduled to occur in closed session. The Henry H. Patterson Trust was the only name listed on that item with a potential publicly recognizable connection to Patterson Ranch. Price and terms of payment were discussed, but there was no mention of the property itself or its location.
The grand jury report said that under the Brown Act, the listing should have been under the open meeting portion of the agenda, and should have been discussed publicly.
Also, the board's action was not reported out to the public after the closed session, says the report. The Feb. 20, 2013 meeting minutes confirm that point. (All Zone 7 minutes, agendas and staff reports are available at http://www.zone7water.com/about-us/board-of-directors/board-meetings.)
The report says that there also was an agreement with the East Bay Regional Park District (EBRPD), which was announced by general manager Jill Duerig under her regular reporting spot on the agenda at the board's meeting April 17, 2013. Until then, the public was not aware of the agreement, says the grand jury.
April 17 occurred one day after the MOU was slated to go into effect on April 16, 2013. There was no prior comment, says the grand jury.
The minutes confirm Duerig's verbal report on April 17. They quote Duerig as saying that the EBRPD authorized its general manager to negotiate and execute an MOU with Zone 7 "as previously discussed with the board," an apparent reference to the Zone 7 board discussing the matter at some time. There is no reference in the minutes about when or where the Zone 7 board discussed it, or voted to approve the agreement.
The report has no quarrel concerning the price, or terms of payment. However, in buying a large piece of property at the highest purchase price in its history, there should have been "meaningful public participation."
The apparent lack of transparency violates three of the eight Zone 7 policies, says the report. One is that Zone 7 meeting and communications will be open and public, except when the Brown Act authorizes otherwise." The grand jury concludes that Zone 7 was not consistent with policy, by not discussing the acquisition publicly.
Also, Zone 7 policy says the agency will practice the highest ethical standards and have open, honest communication "at all levels of the organization at all times." The grand jury contends that there was no chance for pubic scrutiny in the 2013-14 budget to show how allocations were made for acquiring Patterson Ranch property.
In addition, the Zone 7 board "appeared to be rushing to insert a watershed management solution into its Capital Improvement Program strategic planning priorities, after the property was acquired," says the report.
The third principle Zone 7 violated was that it will operate in a "productive, cost-effective, transparent and efficient manner to ensure sound financial stability," the report states.
July 9, 2015
The Independent

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