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7. 1. E. - Page 1 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />September 23, 2013 <br />SUBJECT <br />Response to July 18, 2013 Civil Grand Jury Report entitled "San Mateo County Special <br />Districts: Who is Really in Charge of the Taxpayer's Money? The Mosquito District <br />Embezzlement: Is it the Tip of the Iceberg?" <br />RECOMMENDATION <br />Approve by motion the issuance of the attached letter responding to the July 18, 2013 <br />Civil Grand Jury Report and authorize the Mayor to sign and send the letter in response. <br />BACKGROUND <br />On July 18, 2013, the San Mateo County Civil Grand Jury (Grand Jury) filed a report <br />regarding its investigation of a recent case of embezzlement by two employees of the <br />Mosquito and Vector Control Abatement District (District). The Grand Jury reviewed <br />documents, surveyed special districts and conducted interviews and tours and came to <br />the conclusion that the District's Board of Trustees and Manager did not institute proper <br />management practices or exercise sufficient oversight to prevent or more quickly detect <br />the embezzlement. The Superior Court has stated that the City Council, along with <br />other jurisdictions served by the District, must submit a response to the report's findings <br />and recommendations no later than October 16, 2013 and that the response must be <br />approved by the City Council at a public meeting. <br />ANALYSIS <br />The Grand Jury report produced 14 findings and 11 recommendations. Staff has <br />reviewed the report, considered the findings and recommendations and prepared a <br />letter of response for the Mayor's signature. As stated in the letter, the City is <br />supportive of improvements in the District's oversight and management practices in <br />order to better safeguard the public's resources and trust in the District and the <br />effectiveness of this important service to our community. <br />Of the Grand Jury report's 11 recommendations, two are directed to city and town <br />councils. The City agrees with both of these recommendations. <br />R10. Appoint a council member to the District Board if a representative cannot be <br />found after vetting applicants <br />