Directors Expenses

SCVWD Members of the Board expenses have gotten scrutiny of bothe San Francisco KNBC and the Mercury News.  The compensation for SCVWD Board members set by the "LAFCO OF SANTA CLARA COUNTY 2011 COUNTYWIDE WATER SERVICE REVIEW". LAFCO is defined as, " Local Agency Formation Commissions, or "LAFCo," operating in each county. The following is an excerpt from a description of the history, legal position and evolution of LAFCo in California.

RESPONSIBILITIES

LAFCos are responsible for coordinating logical and timely changes in local governmental boundaries, conducting special studies that review ways to reorganize, simplify, and streamline governmental structure and preparing a sphere of influence for each city and special district within each county.

The Commission's efforts are directed toward seeing that services are provided efficiently and economically while agricultural and open-space lands are protected. To better inform itself and the community as it seeks to exercise its charge, each LAFCo must conduct service reviews to evaluate the provision of municipal services within each county.

The varied expenses and justifications used by SCVWD Board members motivated me to look at some of the background legislation currently, in place that might apply.The following is an excerpt from the most recent LAFCo Report 2010, on the Santa Clara Valley Water District, click for original source:


Directors receive meeting fees of $286.03 per meeting up to ten meetings per month in accordance with District Ordinance 10-02 pursuant to Chapter 2, Division 10 of the California Water Code. Directors receive actual and necessary expense reimbursement in accordance with Board Governance Process Policy GP-10 Cost of Governance. In addition, Directors receive $2,500 per Director per year for actual and necessary expenses in accordance with District Ordinance 02-01, Resolution No. 02-44.  Board  members  are eligible for medical, dental, vision and life insurance benefits.  Former Board Members, elected to terms that began prior to January 1, 1995, are eligible for continuation of the District’s health benefits based on years of service.  


It should be noted the last update to the Policy was made on 8/21/2012. The board members expense policy has been changed several times over the past 4 years. It appears to have evolved from a $2500.00/year, to an expense and travel package comparable to a California State employee, to something somewhat better. The changes have been made by the board members and approved by the board members.

Reference LAFco 2011 report, page 65


Directors receive meeting fees of $286.03 per meeting up to ten meetings per month in 
accordance with District Ordinance 10-02 pursuant to Chapter 2, Division 10 of the 
California Water Code. Directors receive actual and necessary expense reimbursement in 
accordance with Board Governance Process Policy GP-10 Cost of Governance. In addition, 
Directors receive $2,500 per Director per year for actual and necessary expenses in 
accordance with District Ordinance 02-01, Resolution No. 02-44.  Board  members  are 
eligible for medical, dental, vision and life insurance benefits.  Former Board Members, 
elected to terms that began prior to January 1, 1995, are eligible for continuation of the 
District’s health benefits based on years of service.  


It appears SCVWD Board Members receive the following:

1. $286.03 per SCVWD meeting and meeting directly related to SCVWD business. With Prior Board Approval other meetings may be compensated. My review of the last several years of Board meeting minutes didn't show any diretor requests for meeting approvals.
2. There is apparently an annual $2500.00 expense payment per director, this is mentioned but so far it's been unable to confirm. This is noted in the LAFco 2011 report.
3. Mileage is paid for attendance to SCVWD and Approved meetings, at 55 cents/mile..
4. In accordance with LAFCo and SCVWD Policies travel is paid in accordance with California State Government employee standards. Except that Board Members may request exceptions to the standards from, "yes from the SCVWD Board, I hope they abstain from the vote". 
5. As of the August 21, 2012 update the policy was extended to cover computers, communications equipment/services, memberships, etc. Allegations of possible misuse of directors charges were raised by SF KNBC, in several interviews. The interviews occurred in September 2012. Many of the "Questionable charges" were made in 2011 and earlier than August 2012. The question that needs to be raised, "When were the expanded expenses coverage approved and was it retroactive?
6. In addition to the expense issue it should be kept in mind that the SCVWD Directors receive a benifits package including: medical, dental, optical, etc.

They appear to be the highest paid County Water District Directors in the Bay Area, possibly the State of California, as well as having a generous expense plan and extensive benefits. As LAFCo says "... seeing that services are provided efficiently and economically....", should be part of their job requirements.