Report 2021-104 All Recommendation Responses

Report 2021-104: Metropolitan Water District of Southern California: Its Leadership Has Failed to Promote Transparency or Ensure a Fair and Equitable Workplace (Release Date: April 2022)

Recommendation for Legislative Action

To ensure that the issues we discuss in this report are finally addressed, the Legislature should amend state law to include one or more mechanisms by which it can revoke or limit MWD's authority over key personnel and ethics processes in the event that MWD again fails to take corrective action.

Description of Legislative Action

As of April 7, 2023, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 1-Year Status: No Action Taken

Description of Legislative Action

As of October 26, 2022, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 6-Month Status: No Action Taken

Description of Legislative Action

As of August 30, 2022, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 60-Day Status: No Action Taken

As of August 30, 2022, the Legislature has not taken action to address this specific recommendation.

Recommendation for Legislative Action

To ensure that MWD does not again fail to implement our recommendations, the Legislature should adopt legislation requiring MWD to formally adopt procedures for hiring and promoting employees. In doing so, it should direct MWD to ensure that those procedures include specific guidance to human resources staff and hiring managers on when competitive hiring processes are required, as well as on evaluating and scoring applicants and documenting those reviews. Finally, the Legislature should require MWD to make those procedures available to all MWD staff and applicants and to train relevant staff on following those procedures.

Description of Legislative Action

As of April 7, 2023, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 1-Year Status: No Action Taken

Description of Legislative Action

As of October 26, 2022, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 6-Month Status: No Action Taken

Description of Legislative Action

As of August 30, 2022, the Legislature has not taken action to address this specific recommendation.

California State Auditor's Assessment of 60-Day Status: No Action Taken

As of August 30, 2022, the Legislature has not taken action to address this specific recommendation.

Recommendation for Legislative Action

To ensure that MWD's ethics officer has the authority to independently investigate allegations of ethics violations, the Legislature should amend the requirements in existing state law to include the following:

- Establish MWD's ethics officer as the sole authority for interpreting MWD's ethics rules when conducting investigations into alleged ethics violations.
- Grant MWD's ethics officer the authority to contract with outside legal counsel for the purpose of receiving independent legal advice.
- Require any employee within MWD, including board members, to provide to the ethics officer any documents requested as part of an ongoing investigation without waiving any privileges that may apply.
- Prohibit any employee within MWD, including board members, from interfering in any way in an investigation.

Description of Legislative Action

As of April 7, 2023, the Legislature has not taken additional action to address this specific recommendation.

California State Auditor's Assessment of 1-Year Status: No Action Taken

Description of Legislative Action

As of October 26, 2022, the Legislature has not taken additional action to address this specific recommendation.

SB 480 (Stern, 2021) would have required the Metropolitan Water District of Southern California to establish and operate an office of ethics and adopt rules relating to inappropriate conduct, including ethics violations. This bill died on August 24, 2022.

California State Auditor's Assessment of 6-Month Status: Legislation Proposed But Not Enacted

Description of Legislative Action

SB 480 (Stern, 2021) would require the Metropolitan Water District of Southern California to establish and operate an office of ethics and adopt rules relating to inappropriate conduct, including ethics violations. This bill died on August 24, 2022.

California State Auditor's Assessment of 60-Day Status: Legislation Introduced

Recommendation #4 To: Metropolitan Water District of Southern California

To ensure that it is complying with state and federal laws as well as best practices, by October 2022 MWD should update its EEO policy to:

- Include a robust definition and examples of retaliation.

- Include information about an employee's right to file a complaint directly with the California Department of Fair Employment and Housing (DFEH) or the U.S. Equal Employment Opportunity Commission (EEOC).

- Make explicit reference to written investigatory procedures and describe where employees can obtain a copy of those procedures.

- Ensure that the policy accurately reflects all other requirements in state and federal law. In order to do so, MWD should establish a process for regularly reviewing the policy to determine whether changes are needed.

60-Day Agency Response

Metropolitan updated its EEO policies (H-07 and H-13) to ensure compliance with state and federal laws as well as best practices. The policies include clear definitions and examples of retaliation, information on employees' rights regarding where and how to file complaints, a description of investigatory procedures and where employees can access the procedures and additional resources. Metropolitan will regularly review the policies and update as needed.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

MWD provided copies of its revised policies, which include the required information and a commitment to review the policies at least annually.

Recommendation #5 To: Metropolitan Water District of Southern California

To ensure that it has effective and up-to-date policies on related personnel matters, by October 2022 MWD should review and update its sexual harassment policy as needed and develop an official policy defining and prohibiting abusive conduct.

6-Month Agency Response

Metropolitan reviewed and updated its sexual harassment policy (Policy H-13) and its abusive conduct & workplace violence prevention policy (Policy H-04).

California State Auditor's Assessment of 6-Month Status: Fully Implemented

MWD provided an updated version of its workplace violence prevention policy that defines and prohibits abusive conduct.

60-Day Agency Response

Metropolitan reviewed and updated its sexual harassment policy (Policy H-13) which is fully implemented. Based on feedback from its bargaining units, abusive conduct will be a separate operating policy, rather than being included in the EEO or Sexual Harassment policy. The abusive conduct policy is currently in development.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #6 To: Metropolitan Water District of Southern California

To better position itself to handle all EEO responsibilities required by state and federal law and best practices, by October 2022 MWD should implement the following improvements to its EEO office:

- Create and fill additional positions that are commensurate with the workload of the EEO office, including additional staff to handle investigations, training, and compliance.

- Assign formal, written responsibilities for specific staff within the office.

- Structure the EEO office in such a manner that it can operate independently, with minimal potential threats to impartiality.

6-Month Agency Response

Metropolitan's EEO Office now reports directly to the General Manager. Metropolitan created and hired new Chief EEO Officer, Deputy Chief EEO Officer, and Chief EEO Investigator positions to manage the work of the EEO Office. The EEO Officer expanded the EEO Office and developed a new investigator job description series to enhance Metropolitan's internal review capabilities. The new job descriptions enable the EEO Office to oversee and conduct complex investigations that would otherwise be conducted by external investigators. To provide independence and impartiality, the investigator positions are unrepresented and exempt.

EEO policies state that the GM has authorized the EEO Officer to be the governing authority for EEO matters.

The last key position (Chief EEO Investigator) was created and the EEO Office hired two employees for this position. Both employees started in the Chief EEO Investigator position in September 2022. A Principal EEO Analyst was selected and is scheduled to start on October 31, 2022. An EEO Compliance Coordinator position is budgeted in the FY 2022/23 budget.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

MWD provided evidence of additional hires to its EEO Office. While the office is not yet fully staffed, it is significantly better staffed than during our review. Further, MWD provided documentation related to staff's responsibilities, which cover the function of the office generally and the specific tasks referenced in the recommendation.

60-Day Agency Response

Metropolitan's EEO Office now reports directly to the General Manager. Metropolitan created and hired new Chief EEO Officer and EEO Section Manager positions to manage the work of the EEO Office. The EEO Officer expanded the EEO Office from six budgeted positions to eight positions and developed a new investigator job description series to enhance Metropolitan's internal review capabilities. The new job descriptions will enable the EEO Office to oversee and conduct complex investigations that would otherwise be conducted by external investigators. To provide independence and impartiality, the investigator positions are proposed to be unrepresented and exempt.

EEO policies indicate that the GM has authorized the EEO Officer to be the governing authority for EEO matters.

New job descriptions and overall EEO organizational structure require Metropolitan to meet and confer with its bargaining units. The first meeting was held on June 17, 2022 and the next meeting is scheduled on June 22, 2022.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

MWD provided a proposed organizational chart, as well as job descriptions for two key positions and documentation that it has filled those positions. We will reevaluate this recommendation in October 2022 to assess MWD's further progress.

Recommendation #7 To: Metropolitan Water District of Southern California

To ensure timely response to EEO complaints, by October 2022 MWD should update its investigation procedures to include time frames that match DFEH best practices for responding to, investigating, and closing EEO complaints and should adhere to those time frames. MWD should report to its board quarterly on how many EEO complaints have been received and investigated, including how many of those investigations surpassed the time frames in MWD's procedures.

1-Year Agency Response

Metropolitan fully implemented the recommendation to update its investigation procedures and improve EEO complaint response, tracking and reporting. EEO is now using a new and improved case management system, iSight. Report tool trainings were held for EEO staff in March 2023. Quarterly reports to the Board, which include how many EEO complaints have been received and investigated, started in October 2022. The April report to the Board covers January-March 2023.

Since establishing the 90 business-day timeline on October 18, 2022, we have received 40 complaints into the EEO Office. Of those, 23 have been closed, 13 are currently under investigation, and four are in the process of intake assessment. Two of these have exceeded the 90-day timeline established. Both instances had extenuating circumstances.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

MWD provided revised investigation procedures that address various gaps we identified in its prior procedures with respect to DFEH best practices. In addition, MWD reported to its board in April 2023 that of 23 cases it had closed since October 2022, only one had exceeded the 90-day time frame in its procedures. MWD should continue to strive to adhere not only to the overall time frame, but also the individual components of its new procedures, and in so doing, assess the reasonableness of those time frames the resources it needs to perform the procedures effectively and consistently.

6-Month Agency Response

Metropolitan updated its EEO policies (H-07 and H-13), which state that all investigations must be promptly addressed.

The EEO Complaint and Investigative Procedures (EEO Procedures) were developed and the deadlines for responding to, investigating and closing EEO complaints are included.

Metropolitan implemented a new system to manage investigations, which will make reporting to the Board on a quarterly basis administratively efficient and accurate.

California State Auditor's Assessment of 6-Month Status: Pending

This recommendation was fully implemented at the one-year agency response.

60-Day Agency Response

Metropolitan updated its EEO policies (H-07 and H-13), which state that all investigations must be promptly addressed.

Metropolitan is implementing a new system to manage investigations with a new case management vendor, i-Sight. This system will make reporting to the Board on a quarterly basis administratively efficient and accurate.

California State Auditor's Assessment of 60-Day Status: Pending

MWD's revised EEO and sexual harassment policies do not contain time frames for responding to, investigating, and closing EEO complaints. We will evaluate this recommendation in October 2022 to assess whether MWD has implemented such time frames and the reporting practices included in the recommendation.

Recommendation #8 To: Metropolitan Water District of Southern California

To avoid future instances in which EEO complaints go unaddressed, by June 2022 MWD should develop written procedures that specify how non-EEO staff who receive complaints from employees should handle referrals of EEO complaints to the EEO office, and MWD should train staff on those procedures.

60-Day Agency Response

Metropolitan developed written procedures on the proper handling of EEO complaints and referrals which have been included in updated H-07 (Equal Employment Opportunity) and H-13 (Sexual Harassment Prohibition) policies. The updated policies were presented to the Board on April 26, 2022 at its Organization, Personnel and Technology Committee meeting.

A two-hour training, including the review of the newly established procedures which explain how to refer complaints to the EEO Office, was held on June 16, 2022 for all managers.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

MWD's revised EEO and sexual harassment policies direct all managers to refer allegations of policy violations to the EEO office. MWD also provided evidence that it informed all staff of their responsibilities, as well as a separate document requiring that all EEO complaints referred to the EEO office be memorialized via email and entered into an EEO database.

Recommendation #9 To: Metropolitan Water District of Southern California

To ensure that the EEO office has appropriate jurisdiction over EEO complaints, by June 2022 MWD should develop written procedures for handling potential threats to impartiality in investigations. These procedures should contain explicit conditions in which a party other than the EEO office, such as the ethics office or the general counsel's office, plays a lead role in an EEO complaint.

60-Day Agency Response

Metropolitan developed written procedures for investigations to protect impartiality. The procedures are included in the updated H-07 (Equal Employment Opportunity) and H-13 (Sexual Harassment Prohibition) policies, which were presented to its Board on April 26, 2022 at the Organization, Personnel and Technology Committee meeting.

The EEO policy specifically lists the circumstances in which a party other than the EEO office plays a lead role in an EEO complaint.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

MWD's updated EEO and sexual harassment policies specify the circumstances in which a real or perceived threat to impartiality means the EEO office should not investigate complaints. The policies define some such threats and appropriately give the EEO officer (as opposed to another party) the responsibility for assessing whether such threats exist in other situations. In all such instances, the policy names the ethics office as the party responsible for conducting the investigations. As such, if MWD follows this new policy, the EEO and ethics offices are the only parties that should be administering or overseeing investigations into employee complaints.

Recommendation #10 To: Metropolitan Water District of Southern California

To ensure that all EEO complaints and their outcomes are recorded accurately and promptly, by October 2022 MWD should implement an electronic recordkeeping system that will allow for accurate and complete tracking of EEO complaints in a single location. MWD also should designate an individual to be responsible for logging, tracking, and updating EEO complaint records.

6-Month Agency Response

Metropolitan implemented an electronic recordkeeping system, which went live in October 2022. The case management system records accurate complaints and provides complete tracking of EEO complaints in a single location. This system will make reporting to the Board on a quarterly basis administratively efficient and accurate.

The Deputy Chief EEO Officer is responsible for logging, tracking, and updating EEO complaint records, as shown in the updated job description.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

MWD provided evidence that it has procured an electronic record keeping system for its EEO Office and confirmed that it is using that system to track the nature and status of EEO complaints. We also confirmed that the Chief Deputy EEO Officer's formal responsibilities include logging, tracking, and updating EEO complaint records.

Although we have not directly observed MWD's use of this system, if it uses it appropriately, it will address the issues with its EEO records that we found during our audit. Another use of the system we will continue to evaluate is MWD's reporting to its board, discussed under recommendation #7.

60-Day Agency Response

Metropolitan has started implementing an electronic recordkeeping system, with a new case management vendor, iSight, that will allow for accurate and complete tracking of EEO complaints in a single location. This system will make reporting to the Board on a quarterly basis administratively efficient and accurate.

Metropolitan has designated the EEO Section Manager to be responsible for logging, tracking, and updating EEO complaint records.

California State Auditor's Assessment of 60-Day Status: Pending

MWD provided a timeline for implementing its recordkeeping system, but it did not present evidence substantiating additional progress or its designation of the EEO Section Manager as responsible for logging, tracking, and updating complaints. We will reevaluate the status of this recommendation in October 2022 to assess what formal steps MWD has taken.

Recommendation #11 To: Metropolitan Water District of Southern California

To help ensure equity and consistency in its disciplinary process, by October 2022 MWD should implement a written, formal process that outlines the steps that it must follow and the factors it must consider when deciding whether and how to issue discipline. MWD should also develop a recordkeeping policy that documents the disciplinary process so that it can demonstrate that its process is thorough and consistent.

6-Month Agency Response

In order to ensure equity and consistency in its disciplinary process, Metropolitan implemented disciplinary procedures. Employees have been notified about the disciplinary process and their rights under that process.

The Employee Relations unit is also implementing a new case management system that tracks all cases including the level of discipline.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

MWD provided newly adopted procedures that document a formal approach to conducting and determining discipline, including the key step of comparing similar cases in order to ensure equity in the discipline issued. The procedures also require MWD staff to document the rationale for the discipline it administers or for deciding not to issue discipline. Finally, the procedures include a recordkeeping policy. If followed, these processes will help address the inconsistencies and apparent threats to fairness we identified during our audit.

60-Day Agency Response

In order to ensure equity and consistency in its disciplinary process, Metropolitan has established an internal process called "EEO Roundtable," which requires Employee Relations and EEO staff to meet with interested parties to determine the appropriate level of discipline with specific details documented for record keeping purposes.

The Employee Relations unit is also implementing iSight, a new case management vendor, that tracks all cases including the specifics for level of discipline. In the meantime, this information will be tracked in paper form and stored in the disciplinary file.

California State Auditor's Assessment of 60-Day Status: Pending

MWD did not provide documentation substantiating the steps it refers to in its response beyond the timeline referenced in our evaluation of Recommendation #10. We will reevaluate the status of this recommendation in October 2022 to assess what formal steps MWD has taken.

Recommendation #12 To: Metropolitan Water District of Southern California

To prevent and address mistreatment of complainants and potential violations of its retaliation policy, by October 2022 MWD should do the following:

- Develop written procedures for identifying and intervening in potential retaliation while EEO investigations are ongoing.

- Dedicate a person to follow up with complainants after EEO investigations to ensure that incidents involving potential retaliation are not occurring, as well as track these follow-up discussions.

6-Month Agency Response

Metropolitan developed the EEO Complaint and Investigative Procedures, which includes the process for identifying and intervening in potential retaliation while EEO investigations are ongoing, guidance for reporting retaliation, monthly communication with involved parties during an investigation, and post investigation follow-up communication. These are also included in the H-07 (Equal Employment Opportunity) policy.

The Deputy Chief EEO Officer is responsible for ensuring following up with complainants during and after EEO investigations to determine whether or not incidents involving potential retaliation are occurring.

The EEO Procedures include guidance for reporting retaliation, monthly communication with involved parties during an investigation, and post investigation follow-up communication with complainants.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

We reviewed MWD's revised procedures and the job description of the Deputy Chief EEO Officer to confirm that they contain the required elements of the recommendation.

60-Day Agency Response

Metropolitan is developing written procedures for identifying and intervening in potential retaliation while EEO investigations are ongoing. These are included in the H-07 policy and further guidelines will be outlined in EEO investigation procedures.

The new EEO Section Manager is responsible for following up with complainants after EEO investigations to ensure that incidents involving potential retaliation are not occurring, as well as tracking these follow-up discussions.

California State Auditor's Assessment of 60-Day Status: Pending

The job description MWD provided for the EEO Section Manager does not address responsibilities for following up with EEO complainants to address potential retaliation. We informed MWD of this and will reevaluate this recommendation's status in October 2022.

Recommendation #13 To: Metropolitan Water District of Southern California

To ensure that the board is informed of how often EEO matters are being settled and by what means, by October 2022 MWD should:

- Amend its administrative code to require that all personnel-related settlements that invoke confidentiality or have any financial impact—including paid and reinstated leave—be reported quarterly to the board's Legal and Claims Committee, regardless of settlement type.

- Develop a written policy that outlines mandatory information required when reporting settlements. This reporting on each settlement should include whether EEO issues were implicated, whether the employee is still employed by MWD, the existence and type of any financial or confidentiality terms, and whether MWD has taken any corrective action in response to the alleged issues.

- Implement centralized recordkeeping procedures for all employee settlement agreements, including a means of confidentially indicating the existence of such settlements in the EEO complaint database, its personnel database, or some other central repository.

6-Month Agency Response

Metropolitan amended its administrative code to require all personnel-related settlements that invoke confidentiality or have any financial impact, including paid and reinstated leave, be reported quarterly to the Board regardless of settlement type. (Board Letter 7-12 dated October 11, 2022 and Board Letter 7-8 dated September 14, 2022.)

Metropolitan established a written policy within the administrative code that outlines mandatory information required when reporting settlements. It states that each settlement should include whether EEO issues were implicated, whether the employee is still employed by Metropolitan, the existence and type of any financial or confidentiality terms, and whether Metropolitan has taken any corrective action in response to the alleged issues.

Metropolitan implemented a centralized online database system and a process for compiling information on all employee settlements for quarterly reports to the Board.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

After working with our office on proposed changes to its administrative code regarding the reporting of settlements, MWD provided evidence that the code has been updated to fully address our recommendation. MWD also provided the written policy it describes in its response. If followed, the policy and new code will provide increased transparency and accountability in MWD's handling of EEO-related personnel issues.

60-Day Agency Response

Metropolitan is reviewing and updating its administrative code and to require all personnel-related settlements that invoke confidentiality or have any financial impact—including paid and reinstated leave—be reported quarterly to the Board regardless of settlement type.

Metropolitan is currently drafting an amendment to the administrative code that outlines the mandatory information required when reporting settlements.

Metropolitan is currently evaluating options for a centralized online database, which will be managed by human resources.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #14 To: Metropolitan Water District of Southern California

To ensure fairness and accountability in the hiring process, by October 2022 MWD should adopt and publish comprehensive formal hiring procedures that include the following elements.

- A documented process for screening applications based on defined criteria.

- Clear instructions for justifying hiring decisions, with examples of appropriate justifications.

- Document retention requirements for human resources staff and hiring managers that align with the steps of the hiring process required in MWD's hiring procedures.

1-Year Agency Response

Metropolitan fully implemented the recommendation to establish comprehensive formal hiring procedures to ensure fairness and accountability in the hiring process. In October 2022, Metropolitan adopted and published documented Recruitment Procedures, EEO Concurrence Process, and revisions to Operating Policy H-10 (Recruitment and Selection) and submitted the related documents to the State Auditor. These documents make up the comprehensive formal hiring procedures and were created/revised in collaboration with the bargaining units. The DEI Office is partnering with Recruitment in outreach efforts to assist and advise on outreach strategies to help create diverse applicant pools.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

MWD developed formal hiring procedures that specify requirements related to screening candidates, that include examples for appropriate hiring decision justifications, and that outline specific roles and responsibilities for parties administering a recruitment and hiring process. If it adheres to these formal procedures, MWD will better ensure a transparent and fair process.

6-Month Agency Response

To ensure fairness and accountability in the hiring process, Metropolitan adopted a recruitment policy (H-10) and comprehensive formal hiring procedures based on best practices. The new procedures include a documented process for screening applications based on defined criteria, clear instructions for justifying hiring decisions with examples of appropriate justifications, and documented requirements for human resources staff and hiring managers that align with the steps of the hiring process.

California State Auditor's Assessment of 6-Month Status: Pending

This recommendation was fully addressed at the one-year agency response.

60-Day Agency Response

To ensure fairness and accountability in the hiring process, Metropolitan has dedicated resources and established a schedule to review, adopt and publish comprehensive formal hiring procedures and centralize all current documents pertaining to recruitment into a comprehensive document.

The draft document is expected to be shared with Metropolitan's bargaining units and presented to its Board within the next few months.

In addition, Metropolitan recently hired its inaugural Chief DE&I Officer. Collaborating with the Human Resources Department to create and refine equity-focused leadership development curriculum and educational opportunities, and to provide career advancement pathways for people of color, women, and LGBTQ+ staff as well as focus on inclusive recruitment and retention strategies.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #15 To: Metropolitan Water District of Southern California

To promote consistency in the hiring process, by April 2023 MWD should formally train hiring managers and human resources staff on their roles and responsibilities.

1-Year Agency Response

Metropolitan fully implemented the recommendation to train hiring managers and HR staff on their roles and responsibilities to promote consistency in the hiring process. After adopting formal hiring procedures in October, during the week of March 20, 2023, a total of 276 hiring managers and human resources staff were trained on their roles and responsibilities. This will be an annual training for hiring managers and human resources staff. Additionally, this training will be provided to new managers and human resources staff upon their hire into one of these roles.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

MWD provided us its presentation materials for the March 2023 training it references in its response, along with evidence that it tracked staff attendance. The training identifies that promoting consistency in MWD's hiring process as one of its purposes, and includes content relevant to MWD's process generally as well as its new written hiring procedures in particular.

6-Month Agency Response

Metropolitan adopted comprehensive formal hiring procedures in October 2022 and has started to develop training for hiring managers and human resources staff.

Training is scheduled to be completed by April 2023.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

Metropolitan is developing a comprehensive formal hiring procedure, scheduled to be completed later this year. Training will be provided to all managers and human resources staff once the comprehensive formal hiring procedure document is finalized.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #16 To: Metropolitan Water District of Southern California

To prevent bias in hiring, by October 2022 MWD should reinstate the EEO office's role in the hiring process and develop formal procedures describing that role.

6-Month Agency Response

In an effort to ensure equality of opportunity for all Metropolitan employees or applicants for employment, Metropolitan reinstated EEO Office participation in the recruitment and selection process.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

MWD provided written procedures, effective October 2022, that officially reinstate and describe the role of its EEO office in recruitment and hiring processes. The procedures indicate that the EEO office will participate in hiring processes as it deems necessary or as its workload allows. Although it may be reasonable for the EEO office to play a more or less involved role depending on the nature of the recruitment or other considerations, MWD will be more likely to succeed in addressing the issues we found if it demonstrates a consistent commitment to carrying out the actions described in the procedures.

60-Day Agency Response

Metropolitan's human resources is working with its EEO Office to formalize procedures to prevent bias in its hiring process.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #17 To: Metropolitan Water District of Southern California

To better analyze its workforce demographics and identify potential barriers to employment, by April 2023 MWD should develop formal procedures for analyzing employee demographics and taking appropriate action based on those data. As part of this process, MWD should report to its board on the results of these analyses and actions.

1-Year Agency Response

Metropolitan fully implemented the recommendation to develop formal procedures for analyzing and acting upon employee demographics data to better analyze its workforce demographics and identify and address potential barriers to employment. The formal procedures were also socialized with various internal stakeholders, including Metropolitan's Diversity Council, in order to solicit broad feedback on any improvements or changes needed. We will continue to evolve our workforce analytics practice in alignment with this procedure and report findings and actions taken to the Board on an annual basis. Workforce demographics were presented to the Board on December 12, 2022 and will be reported again to the Board later this year.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

MWD provided us with written monitoring and evaluation procedures that expand upon its existing utilization analyses by examining, on a quarterly basis, demographic statistics in hiring, transfers, promotions, terminations, and more. The procedures also direct MWD staff to prepare a report based on its analysis of this data, to be discussed with human resources and presented to MWD's board annually.

6-Month Agency Response

To better analyze its workforce demographics and identify potential barriers to employment, Metropolitan developed formal procedures to evaluate employee demographics and take appropriate actions as needed based on data.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

MWD provided a draft version of the procedures that will govern its approach to analyzing employee demographics. We will continue assessing the status of this recommendation as MWD finalizes those procedures and begins reporting to its board on this matter.

60-Day Agency Response

To better analyze its workforce demographics and identify potential barriers to employment, Metropolitan is planning to initiate development of formal procedures for analyzing employee demographics and taking appropriate action based on those data.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #18 To: Metropolitan Water District of Southern California

To ensure that responsible parties have the information they need to make improvements, by June 2022 MWD should annually share the results of its demographic analyses with its various management groups as well as its recruitment staff.

60-Day Agency Response

To ensure that responsible parties have the information they need to make improvements, Non-Discrimination Plan (NDP) analyses results were shared with all Metropolitan managers and recruitment staff via email on June 16, 2022. This analysis will be shared annually.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

MWD provided examples of reporting it provided to its management groups and human resources personnel, which includes information about the demographic analyses and considerations about both the hiring and recruiting processes at MWD. As we indicate in the report, analyzing this data and improving its hiring processes overall are also important aspects of MWD's efforts to address its apparent lack of workforce diversity.

Recommendation #19 To: Metropolitan Water District of Southern California

To ensure that its ethics office is independent, as required by state law, by October 2022 MWD should revise its administrative code to:

- Prohibit interested parties from participating in the office's investigation process, except when necessary to provide information or otherwise respond to allegations.

- Establish the best practices highlighted in this report for protecting the independence of the ethics office, such as ensuring that the ethics officer has sole authority to interpret MWD's ethics rules and that the ethics office can obtain advice from outside legal counsel.

6-Month Agency Response

The Board of Directors adopted amendments to Metropolitan's Administrative Code that address ethics-related recommendations in the state audit report, (Board Letter 7-8, dated August 16, 2022.) The updated Administrative Code expressly:

-Prohibits Metropolitan directors, officers, and employees from participating in ethics investigations except when necessary to provide information or otherwise respond to allegations.

-Prohibits Metropolitan directors, officers, and employees from interfering in ethics investigations.

-Establishes the Ethics Officer as the sole authority for interpreting Metropolitan's ethics rules.

-Grants the Ethics Officer authority to obtain independent legal counsel.

-Authorizes the Ethics Officer unrestricted access to information without waiver of privileges.

Additionally, the Board of Directors amended the Administrative Code to clarify the role of the Legal Department in contracts administered by the Ethics Office. (Board Letter 7-12, dated October 11, 2022.)

California State Auditor's Assessment of 6-Month Status: Fully Implemented

We verified that MWD made the changes to its administrative code that it describes in its response.

60-Day Agency Response

At Metropolitan's May 2022 Audit and Ethics Committee meeting, Ethics Office staff presented an overview of the State Audit findings and recommendations relating to the Ethics Office and an implementation plan for addressing the audit recommendations.

Since the May 2022 meeting, Ethics staff has been reviewing Metropolitan's Administrative Code and identifying provisions that will require amendments to comport with the audit recommendations. Based on this review, staff is drafting proposed revisions to existing ethics-related provisions in the Administrative Code as well as new provisions to add to the Code.

California State Auditor's Assessment of 60-Day Status: Pending

Recommendation #20 To: Metropolitan Water District of Southern California

To better protect those employees required to reside in employee housing from the issues threatening the safety and habitability of this housing, by October 2022 MWD should:

- Improve the detail and consistency of its current procedures for responding to maintenance requests. These enhanced procedures should detail when MWD will handle a request on its own and when it will address a request as part of a larger effort, and they should establish clear and reasonable time frames for each scenario.

- Establish procedures for more reliably tracking the length of time it takes to respond to housing issues and regularly report its performance on these issues to the board, including any measures it has taken to improve this performance.

- Develop a contingency plan for comprehensively addressing its long-term issues with housing—such as installing prefabricated homes or renovating existing units—in case its current plan for replacing employee housing is delayed.

6-Month Agency Response

Metropolitan established the Desert Housing and Recreation Commission, a collaborative effort of the Office of the General Manager, management, employee bargaining unit, and residents to identify high priority issues and immediate enhancements. The General Manager designated a staff person who visits desert sites weekly to help resolve issues. Metropolitan continues to renovate houses and enhance the residential experience while final design for the District Housing and Property Improvement Program is completed.

Metropolitan established procedures to ensure that residential work requests are completed timely. Work requests may be submitted via an electronic form or mobile application. Metropolitan established a priority matrix that defines five priority levels and the estimated completion timelines.

The Board unanimously approved final design of the District Housing and Property Improvement Program (board letter 7-11, dated September 13, 2022) adding $8.5M to an existing contract. Metropolitan's Board is scheduled to consider awarding a construction contract for the new housing and other facilities in September 2023. If the September 2023 construction award is delayed, a contingency plan will be activated.

Metropolitan will continue to refurbish existing houses. Sixteen houses were refurbished during the 12 months ending September 2022. Additional manufactured homes will be used to replace houses that cannot be refurbished. Options and alternatives to accelerate the delivery of new houses will continue to be developed.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

MWD provided written procedures that detail how and with what level of priority it will respond to housing maintenance requests. These procedures also establish time frames for responding to requests and tracking MWD's performance in doing so. MWD also provided its initial report to a committee of its board on the number of total and backlogged requests, which took place in December 2022. Finally, MWD created a contingency plan that it also reported to a committee of its board. Although high-level, that plan specifies the number of alternative housing units MWD would need at each site and indicates that it would be triggered by a delay in the expected timing of a September 2023 construction contract. It is our expectation that MWD and its board will continue to assess the need for the actions outlined in the plan, as well as the specifics contains, as it moves forward with its planned replacement of existing housing.

60-Day Agency Response

To improve the safety and habitability of its district housing, Metropolitan updated its workorder workflow process to include a Communication Plan which describes how and when residents will be updated during the planning, scheduling and completion of work. Residents will be notified if their request is either: a) not approved b) included in a larger, village-wide effort c) exceeds the State of California Public Contracting code threshold and requires formal bidding. The workorder priority matrix will clearly define expected timelines for completion for different workorder scenarios.

Metropolitan's Real Property Management Group conducted resident check-in conversations with all residents to provide updates and seek feedback regarding the Housing and Recreation Management and Housing and Property Improvement Project.

Metropolitan's senior management is conducting onsite Townhall meetings at all villages in June 2022 and meeting with tenants and bargaining units. The purpose of the Townhall meetings is to provide updates and seek feedback from residents regarding housing/recreation management and housing and property improvements. Meetings were held on June 8, 2022 and are scheduled on June 22, 2022.

Informational materials were provided to ensure employees understand how to use the new Resident Portal mobile app to submit service tickets and receive communication updates from Real Property staff.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

MWD provided a draft of its updated procedures for responding to employee maintenance requests, which introduce specific timeframes for completing required work as well as the notification requirements MWD mentions in its response. Full implementation of this recommendation will require MWD to also develop criteria for what requests will be handled as part of larger housing projects and for reporting on its handling of maintenance requests to its board. It will also require MWD to establish a contingency plan for its planned replacement of employee housing units.

Recommendation #21 To: Metropolitan Water District of Southern California

To better protect the safety of its employees, by June 2022 MWD should revise its safety policies to establish a minimum level of collaboration between safety representatives and management, such as establishing requirements for regular meetings and requiring managers to attend safety committee meetings.

60-Day Agency Response

Metropolitan adopted a new procedure, HSE 101.4 Safety Communications, on June 15, 2022, which requires greater collaboration and meetings between safety representatives and management. Managers are required to attend safety committee meetings.

In recognition of National Safety Month, safety awareness events are being held at Metropolitan facilities throughout the month of June 2022. The events have included facility tours, safety presentations, and vendor product demonstrations.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

MWD provided the new procedure, which establishes minimum levels of collaboration between safety representative and management, including during weekly planning and monthly committee meetings.

Recommendation #22 To: Metropolitan Water District of Southern California

To better ensure the effective handling of safety complaints and the protection of workers who make them, by October 2022 MWD should enhance its written policies to formally define retaliation and include specific steps responsible parties should take when performing the duties laid out in policy, such as protecting employees from retaliation.

6-Month Agency Response

Metropolitan safety staff revised Safety Policy HSEM 101.4-Safety Communications to incorporate retaliation policy improvements, which were adopted by the Board on August 16, 2022, including the definitions of retaliation and manager's mandatory requirement to report retaliation to the Ethics Office.

The Ethics Officer also proposed, and the Board of Directors adopted, amendments to Metropolitan's Administrative Code including section 7128: "Retaliation, Whistleblower, and Witness Protections." Section 7128 now includes a definition of retaliation and expanded protections for employees who report workplace safety concerns. The updated policy became effective August 16, 2022.

On September 7, 2022, the Ethics Office, in coordination with Metropolitan safety staff, began a series of live training webinars on safety-related retaliation in the workplace. Employees are required to complete a training session.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

To better ensure the effective handling of safety complaints and the protection of workers who make them, Metropolitan updated its safety manual with information about the district's retaliation policy, how to report safety-related retaliation to its Ethics Office or through an anonymous hotline, and the requirement for managers to report allegations of retaliation to the Ethics Office.

Metropolitan's Ethics Office staff is currently drafting updates to the retaliation policy consistent with the State Auditors' feedback.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

As part of the new procedure referenced under Recommendation #21, MWD more clearly delineated the processes for reporting safety concerns and the responsibilities of various parties to report and receive allegations of safety-related retaliation. We will reevaluate the status of this recommendation when MWD completes revisions to its broader retaliation policy and procedures.

All Recommendations in 2021-104

Agency responses received are posted verbatim.