California Special District: Conference Preview by California Special Districts Association

California Volume 8, Issue 4, July - August 2013

Publication of the California Special Districts Association

In this Issue

Conference preview

President’s message [4] Real heroes don’t wear spandex [18] Solutions and innovations [22] What’s so special [38]

It’s Your Ship Interview with Mike Abrashoff

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[Contents]

Volume 8, Issue 4 July - August 2013

It’s Your Ship: Interview with Mike Abrashoff

Look for this icon throughout the issue to learn more about content at our upcoming conference!

Real Heroes Don’t Wear Spandex

#CSDACONF2013

Printed on recycled paper.

Departments 6

CSDA News CSDA’s Special District Leadership Academy Conference; Save the dates; Chapter presidents dinner brings together leaders in Sacramento In Brief Water district releases children’s book; Library district launches tech toolbar; District sponsors high school students in solar cup; Residents vote to join mosquito district; Equipment to save pets’ lives; New helipad; Fire-safe landscaping California Special District – July-August 2013

Solutions & Innovations Cellular antennas on special district property: The opportunity and the risk Community Connections Getting to yes: Gaining voter and community approval for your district funding needs Legal Brief Hiring retired annuitants: The impact of PEPRA of 2013

SDLF $20,000 available to special districts through new SDLF Educational Allowance Fund

Managing Risk Dangerous conditions of public property and third-party conduct

Money Matters Is there a cost to doing nothing?

What’s So Special Waste not, want not

Officers Stanley Caldwell, President Mt. View Sanitary District Pete Kampa, Vice President Tuolumne Utilities District Noelle Mattock, Secretary El Dorado Hills Community Services District Ginger Root, Treasurer Country Club Sanitary District Jo MacKenzie, Past President Vista Irrigation District Stanley Caldwell Board President

Members of the Board Jim Acosta, Saticoy Sanitary District David Edwards, East Quincy Services District Steve Esselman, North of the River Municipal Water District Vince Ferrante, Moss Landing Harbor District Elaine Freeman, Rancho Simi Recreation & Park District William Nelson, Orange County Cemetery District Greg Orsini, McKinleyville Community Services District Steve Perez, Rosamond Community Services District Timothy Ruiz, P.E., East Niles Community Services District Phil Schoefer, Western Shasta Resource Conservation District Sherry Sterrett, Pleasant Hill Recreation and Park District Elaine Sullivan, Leucadia Wastewater District Kathy Tiegs, Cucamonga Valley Water District

CSDA Staff Neil McCormick, Executive Director Megan Hemming, Professional Development Director Cathrine Lemaire, Member Services Director Kyle Packham, Advocacy & Public Affairs Director Todd Winslow, Publications Director Emily Cha, Receptionist George Cordero, Legislative Intern Nicole Dunn, Editor Sharon Foster, Professional Development Assistant Ralph Heim, Legislative Representative Dorothy Holzem, Legislative Representative Jess Lima, Staff Assistant Christina Lokke, Legislative Representative Charlotte Lowe, Executive Assistant Jimmy MacDonald, Legislative Analyst Jacqueline McEvilly, Member Services Intern Miryam M. Barajas, Public Affairs Specialist James Wilfong, Senior Designer Travis Wills, Member Services Coordinator Rick Wood, Finance Manager For editorial inquiries, contact Nicole Dunn at 877.924.2732 or nicoled@csda.net. For advertising inquiries, contact Diana Granger, Granger Marketing Works, at (530) 642-0111 or granger@cwo.com. 1112 I Street, Suite 200 Sacramento, CA 95814 t: 916.442.7887 f: 916.442.7889 toll-free: 877.924.2732 www.csda.net

president’s message

Get educated and enlightened at this year’s annual conference! It’s hard to believe we are halfway through 2013 already. It’s time to plan for attendance at the CSDA Annual Conference and Exhibitor Showcase, to be held in Monterey, on September 16-19. This is the one conference special district leaders can’t afford to miss! In this issue we will preview and highlight some of the exciting and informative things we have coming to this year’s Annual Conference.

The event will be both fun and educational for representatives of the state’s special districts. CSDA has already lined up prestigious keynote speakers to entertain, enlighten and educate. Bringing together exhibitors, board members and general managers from districts across California, this conference is the most comprehensive gathering of resources for special districts.

Today’s leaders are confronted with challenges and opportunities that have never been more dynamic or complex. The CSDA Annual Conference helps special district leaders effectively understand and manage these issues to become more effective leaders. The Annual Conference offers a uniquely cost-effective way to obtain reliable, timely and practical guidance on the latest strategies, tools and techniques in the major areas of focus for special districts.

Further enhancing this year’s program is, of course, the location. The beautiful Marriott in Monterey, California is in the heart of one of the most beautiful parts of our state. CSDA, taking full advantage of the conference’s surroundings, is offering various events outside of the convention The most important part of attending CSDA’s halls. This year we again have a wide Annual Conference is the valuable information variety of sessions and activities for our you take home to your district. The ideas and strategies you learn through sessions, workshops, members to participate in. You can go golfing at the CSDA Golf Tournament speakers and exhibitors can be implemented (Blackhorse Golf Course), go on a safari in your own district. The conference provides of the Moss Landing Harbor District a communication network among its member districts, serving as a forum for timely discussion or take part in the Monterey Regional Waste Management District tour. of relevant local and statewide special district issues. The conference is an outstanding place to build connections and network with other I look forward to seeing you at the CSDA special districts throughout the state. Annual Conference in September!

A proud California Special Districts Alliance partner

For complete program descriptions and information about registration and accommodations, visit the Education section of the CSDA website at www.csda.net or call CSDA at (877) 924-2732.

Professional Development Calendar

August S

August Aug

Understanding the Brown Act: Core Components and Updates - WEBINAR

11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

september Special District Leadership Academy: Governance Foundations, Monterey - September 16 CSDA Annual Conference and Exhibitor Showcase, Monterey - September 16-19

10 11 12 13 14

15 16 17 18 19 20 21

October Oct

september

Must Have Communication Protocols for Board and Staff - WEBINAR

22 23 24 25 26 27 28 29 30

Oct

Best Practices in Agenda Preparation and Taking/Recording Minutes - WEBINAR

Oct

Board Secretary/Clerk Foundations, Southern CA

Oct

Staying in Compliance: Understanding Fundamental Special District Laws, Southern, CA

Records Retention and Management - WEBINAR

13 14 15 16 17 18 19

17 18

Oct

october S

M 7

10 11 12

20 21 22 23 24 25 26 27 28 29 30 31

California Special District â&#x20AC;&#x201C; July-August 2013

CSDA NEWS CSDA’s Special District Leadership Academy Why Attend CSDA’s Special District Leadership Academy Conference? Local boards are the reason - and really the only reason - why local control is local. Special district boards are the voices of the community. The truth is that every elected or appointed public official needs to worry about governance. Governance is what boards do. It is what we bring to the table. Governance is taking the wishes, needs and desires of the community and transforming them into policies that govern the district. Survival of special districts depends in large part on how well boards do their jobs. Whether you are new to a board of directors or someone who has served for many years, the Special District Leadership Academy Conference provides essential tools and information to effectively govern your district! Attendees will learn: • Working as a team: Roles of the board and staff in your district. • Attributes and characteristics of highly effective boards. • How culture, norms, values and operating style influence the district. • Specific jobs the board must perform. • How individual values, skills and knowledge help to shape how effective boards operate. • The importance of moving from “I” to “We” as the governance team.

District Snapshots PHOTO 1: Monterey Peninsula Airport District’s Art Gallery, located inside the airport’s terminal PHOTO 2: CSDA Member Services Director Cathrine Lemaire with staff from Monterey Peninsula Regional Park District during a site visit. 6

• The board’s role in setting direction for the district; establishing and supporting the structure of the district; holding the district accountable on behalf of the community and serving as community leaders. • The board’s role in finance and fiscal accountability.

NEW! Special District Leadership Academy Conference Now you can complete all four modules of CSDA’s groundbreaking and curriculumbased continuing education program, the Special District Leadership Academy, in just two and half days in the beautiful Napa Valley, November 17-20, 2013. Visit www.csda.net for registration information. Room reservations are now available at the Napa Valley Marriott Hotel & Spa by calling 800-228-9290 and asking for the CSDA Leadership Academy rate of $149 single/ double. (Rooms may sell out quickly.)

All room reservations must be accompanied by a one night room and tax deposit, guaranteed with a major credit card. Hotel will not hold any reservations unless secured by this deposit. The first night room and tax deposit becomes non-refundable if a reservation is cancelled after the cut-off date.

2014 Save the Dates! Be sure to mark your calendars and make plans to attend the following conferences: February 27 – 28, 2014 CSDA’s Board Secretary/Clerk Conference will take place at the Embassy Suites Napa Valley. Room reservations are currently available at the CSDA room rate of only $139 plus tax single or double occupancy by calling 1-800-HILTONS and asking for the CSDA rate. Tuesday, March 18, 2014 SDRMA Safety/Claims Education Day will be held in Sacramento at the Hilton Sacramento Arden West. Room reservations are currently available at the SDRMA rate of $112 plus tax single or double occupancy by calling 800-344-4321.

May 20 – 21, 2014 Special Districts Legislative Days will return to the Sacramento Convention Center. Sleeping rooms are available at the Hyatt Regency Sacramento at the CSDA rate of $149 plus tax single or double occupancy by calling 1-888-4211442 and asking for the California Special Districts Association rate. September 29 – October 2, 2014 CSDA’s 2014 Annual Conference & Exhibitor Showcase heads to Palm Springs. Room reservation information will be available soon!

Room rates are subject to change, availability and hotel regulations. Watch your CSDA e-News and mailbox for more news on these and other conferences and events as it becomes available.

Chapter Presidents Dinner Brings Leaders together In May, CSDA coordinated a Chapter Presidents Dinner in conjunction with Special Districts Legislative Days (SDLD) in Sacramento. An invitation was extended to the presidents of affiliated chapters as well as the leaders of unaffiliated local special district associations to give them a chance to network with other district leaders and CSDA legislative staff. The dinner was attended by representatives from Contra Costa, Kern, Sacramento, San Bernardino, San Diego, Santa Barbara and Ventura counties, Gold Country Region, and the Independent Special Districts of Orange County (ISDOC). In addition, affiliated chapters were invited to send their president or designated representative to SDLD at no charge. CSDA now has six chapters that have adopted the formal affiliation agreement with the state association. Other groups still have the agreement under consideration.

Meyers Nave provides the full scope of legal services to cities, successor agencies and special districts throughout California in 15 distinct areas of law, which are municipal and special districts law; climate change and green initiatives; crisis management; economic development, real estate and affordable housing; education law; eminent domain; environmental law; labor and employment; land use; litigation; municipal debt restructuring; public contracts; public finance; public power and telecommunications; and transportation and infrastructure. Our commitment to professional excellence and our deep roots in California’s communities enable us to consistently achieve exceptional results for our clients.

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California Special District – July-August 2013

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WWW.MEYERSNAVE.COM 800.464.3559 continued on page 8

What CSDA is watching Through active lobbying efforts, including providing committee testimony, and coalition advocacy, CSDA ensures that special districts’ local perspective is heard during the state legislative process. Special districts can join CSDA’s advocacy efforts by taking official positions on specific bills or issues that significantly impact the delivery of core local services. Keep an eye out for CSDA Legislative Alert emails, which include tools to join statewide efforts, or visit www.csda.net for more information. To find a current comprehensive list of every bill CSDA tracks, download Legislative Committee documents, request a meeting with your legislators, and access many other resources, visit www.csda.net and log in to the Legislative Access Services page, located under Legislative Resources. Below is a sample of key bills now pending before the Legislature: Assembly Bill 543 (Campos): CEQA Document Translation Requires a lead agency to translate specified California Environmental Quality Act (CEQA) notices and the summaries of any negative declaration, mitigated negative declaration, or environmental impact report for projects proposed to be located at or near communities with at least 25 percent non-English speakers. CSDA Position: Oppose AB 683 (Mullin): Local Community Health and Safety Empowers local agencies to more effectively protect the health and safety of the communities they serve by authorizing agencies to assess delinquent fines or penalties against a property, if the fines or penalties are related to a violation of an ordinance occurring on the real property that constitutes a threat to public health or safety. CSDA Position: Support AB 850 (Nazarian): Rate Reduction Bonds Allows joint powers authorities (JPAs) formed by municipal water utilities to issue rate reduction bonds to fund mandated water capital projects. This new tool could result in interest savings, lower debt service and lower local borrowing costs, which will reduce future utility rate increases. CSDA Position: Support AB (Alejo): Community Revitalization Investment Authorities Offers a new tool to special districts and other local agencies to invest property tax increment and other available funding to improve infrastructure in disadvantaged communities, and clearly prohibits the shifting of revenue from local agencies without their consent. CSDA Position: Support AB 1140 (Daly): Prevailing Wage Increases Applies changes to the prevailing wage rate upon projects already bid, contracted or commenced. This new mandate not only abrogates legal contracts, it undermines the very financial feasibility of a project. Without accurate estimates of wage and related expenses, agencies would face significant financial uncertainties on public works projects. CSDA Position: Oppose 8

AB 1333 (Hernandez): Prevailing Wage Contract Review Creates unwarranted requirements for annually renewable, or “evergreen,” contracts with private contractors valued at more than $250,000. Specifically, it would require a local legislative body to open up the evergreen contract every three years to verify that the private contractor provides prevailing wage to its employees. CSDA Position: Oppose Senate Bill 184 (Committee on Governance & Finance): Interagency Intercept Collections Program Gives special districts the same statutory authority that cities and counties have to request that the State Controller withhold state payments, such as income tax returns, to collect debts owed to special districts. Currently special districts may only participate to collect unpaid bridge and high-occupancy vehicle lane tolls. CSDA Position: Sponsor SB 556 (Corbett): Contracting Liability Prohibits contractors, or their employees, that perform labor or services for a public entity from displaying a logo on their uniform or vehicle that could be interpreted as implying that the labor or services are being provided by employees of the public agency, unless specific disclosure requirements are followed. This creates unnecessary new costs for service contracts and could create further confusion for the public. CSDA Position: Oppose SCA 11 (Hancock): 55% Local Revenue Threshold Places a proposition on the 2014 General Election Ballot to allow California’s electorate to decide whether special districts, cities and counties may choose to pursue local special taxes with 55 percent approval from their local voters. Under current law, special taxes require a two-thirds majority vote while general taxes that can be used for any purpose, only require a 50 percent vote. CSDA Position: Support

California Special District â&#x20AC;&#x201C; July-August 2013

Ask theExperts

Mandate reimbursement

What are the most common statemandated programs still eligible for reimbursement by special districts? Open Meetings Act/Brown Act Reform – Although suspended by the 2012-2013 State Budget Act, special districts may still file their Brown Act Agenda compliance costs for FY 20112012, if they have not already done so. The last chance to file expires in February 2014. Local Government Employee Relations – For special districts with Employee Bargaining Units, costs related to Public Employment Relations Board (PERB) actions. This includes the cost associated with using a lawyer/law firm to represent the district in the PERB actions. The most common and costly PERB actions are Unfair Labor Practice charges. California Public Records Act – Provides local government agencies an opportunity to be reimbursed for costs incurred due to the expansion of the California Public Records Act (CPRA), which occurred in July 2001 and January 2002. As a result, special districts can seek reimbursement of costs dating back to Fiscal Year 2001-2002 and will be able to file 12 years of claims. The anticipated deadline for these 12 years of claims is late-February 2014.

Conference Highlight Tuesday, September 17, 11:00 a.m. – 12:00 p.m.

Mandate Reimbursements: What’s Still Available and When Will You Get Paid?

My district has filed claims in the past. Will the State ever pay us? In accordance with the California State Constitution, Article XIII B, Sections 6, the State of California must pay claims filed by local agencies for state mandated costs. Additionally, if the State of California is slow to pay, interest will accrue on the unpaid amounts (Government Code section 17561.5). As the State’s economic outlook improves, the likeliness of payment increases. With an improving economy, interest rates will increase (from their recent historic lows) and the State’s cost to defer payment will dramatically increase. Thus, creating an urgency for the State to pay the debt in this area. According to the State Controller’s Office, the State owes cities, counties, special districts, school and college districts about $6.4 billion for multiple years of deferrals during the recession. In the Fiscal Year 2013-2014 State Budget Act Summary, the governor is forecasting a reduction of this debt to $3.1 billion for State Mandates for FY 2016-2017.

Are all types of special districts eligible to file SB 90/State Mandated Cost Claims? Recently, the Commission on State Mandates (COSM) has implied the only type of special districts eligible to file State Mandated Cost Reimbursement Claims are subject to the tax and spend limitations of articles XIII A and XIII B of the California Constitution, and only when the costs in question can be recovered solely from “proceeds of taxes,” or tax revenues. The COSM is using a 1991 court decision County of Fresno v. State of California (1991) as justification for this interpretation. It is interesting to note that more than two decades have elapsed since the County of Fresno decision, and the COSM is only now relying on this decision to reduce the number of special districts eligible to claim. CSDA has challenged COSM’s interpretation and application of the County of Fresno case. Andy Nichols, President Nichols Consulting http://www.nichols-consulting.com/

MOVERS & SHAKERS Western Municipal Water District (WMWD) announces Derek Kawaii has been appointed director of engineering for the district. Kawaii has worked as the district’s principal engineer for the past seven years and brings almost 30 years of engineering experience total to the position. WMWD also announces General Manager John Rossi as recipient of the Excellence in Water Leadership Award from the Association of California Water Agencies (ACWA). Says Tim Quinn, ACWA executive director, “Rossi was selected for his long history of leadership, problem-solving and numerous other contributions to California water.”

movers and shakers Does your district have an individual recently appointed as general manager or a top staff position? Have you recently elected a new board president? Have any district personnel been appointed to other community boards or positions? Email your district’s movers and shakers to Nicole Dunn, communication specialist, at Nicoled@csda.net and we will include them in our next issue!

South Coast Water District announces Betty Burnett as district general manager. Burnett has served as the district’s interim general manager since October 2012. She fills the position vacated when former general manager Mike Dunbar retired. Pleasant Valley Recreation and Park District announces Daryl Wagar as general manager. Wagar is filling the position left by Dan LaBrado, who retired.

Alamo-Lafayette Cemetery District announces Board Chairman Primo E. Facchini was voted Citizen of the Year by the Walnut Chamber of Commerce. Tim Barry, general manager of Livermore Area Recreation and Park District, recently became a Certified Park and Recreation Professional (CPRP). The CPRP is granted by the National Certification Board and National Recreation and Park Association. It is Tim Barry given to individuals in the industry who meet eligibility requirements – including a combination of higher education and/or work experience and who successfully complete the national CPRP exam. Kathleen Jurasky, manager of Palm Springs Cemetery District, was elected president of the California Association of Public Cemeteries. The association promotes the development of public cemetery districts and their governance through interactive communication, education and legislative advocacy.

California Special District – July-August 2013

Mt. View Sanitary District (MVSD) was named as the 2012 winner of the John Muir Conservation Award. This award is given for outstanding achievement by a non-profit organization or public agency that promotes environmental protection, or demonstrated significant achievement or leadership in the advancement of environmental protection or conservation. Camarillo Health Care District CEO Jane Rozanski has been appointed by Governor Jerry Brown to the California Commission on Aging. Says Assembly Member Jeff Gorell, “For decades (Rozanski) has dedicated herself to improving health care in the community, experience which will be tremendously valuable in helping the State of California serve the needs of senior citizens.” The California Park and Recreation Society recently bestowed a Fellowship Award in the Professional Service award series to East Bay Regional Park District’s Carol Severin for lifetime significant contributions to the California parks and recreation profession.

In Brief Water District Releases Children’s Book Eastern Municipal Water District (EMWD) recently announced the release of its latest studentproduced children’s book, which focuses on the role that recycled water plays within the local community. “Professor Purrkis Ponders Purple Pipes” is the sixth book authored by area middle school students as part of EMWD’s award-winning “Write Off” contest. The program encourages students to create books for grade school students that focus on water quality and conservation. EMWD partners with Rancho California Water District to present the annual contest. “Professor Purrkis” was written and illustrated by Temecula Middle School students Iliana Reyes and Alyssa Rossi. Roughly 350 students from eight different schools participated in the “Write Off” contest in 2012-13. In the book, three students – Otis Turtle, Claire Bear and Presley Peacock – are given a homework assignment to create a poster about recycled water. To learn more, the trio seek the assistance of Professor Purrkis, who helps the students understand the process of turning wastewater into recycled water that can be used for beneficial purposes. “Professor Purrkis” is available for download for the iPad, Kindle Fire and Nook Color from www.emwd.org/ebooks.

Library District Launches Tech Toolbar In response to the increased use of technology to access library services, Santa Clara County Library District has launched a Tech Toolbar at its Cupertino Library. The Tech Toolbar is a meet and greet station staffed by volunteers who know and can answer questions about the latest e-readers and tablets and the library’s e-books and digital resources. The Tech Toolbar features a display of the latest tablet computers and e-readers and is staffed by individuals who can train library patrons on how to use them. All of the devices at the Toolbar are compatible with the library district’s large e-book collections. The district hopes to expand the Tech Toolbar program to its other libraries. It launched the Toolbar as a pilot program at the Cupertino Library due to the library’s high-tech reputation and high circulation.

Water Districts Sponsor High School Students in Solar Cup In May, the 11th annual Solar Cup competition was held at Lake Skinner in Temecula, CA. The event brings 40 high schools from throughout Southern California together to race their solar-powered boats across the lake. This year, Cucamonga Valley Water District and Inland Empire Utilities Agency sponsored the Los Osos High School students who participated. The Solar Cup allows students to learn the practical application of engineering, science, math, problem-solving and management and conservation of environmental resources. Students spend eight months building their solarpowered boat, attending technical workshops, submitting technical reports and producing a conservation brochure or 30 second public service announcement. Each year the districts sponsor one high school team in its service area to participate in the Solar Cup. The districts support the team in its planning and preparation for the contest.

Sources: Cucamonga Valley Water District, Eastern Municipal Water District, Inland Valley Daily Bulletin, KSEE 24 News, San Jose, Mercury News, Riverside PressEnterprise, The Sacramento Bee

Got news?

California Special District wants to hear about newsworthy people, projects, events and accomplishments in your district. To submit a news item for In Brief, contact Nicole Dunn at nicoled@csda.net or (877) 924-2732.

Residents Vote to Join Mosquito District The residents of Riverside, California have approved a proposal to join the Northwest Mosquito and Vector Control District. The vote means the entire city of Riverside will be served by the district. Previously only a quarter of the city fell within the district’s service area. In response to the vote, the district will be hiring four full-time positions to serve the additional 50 square miles added to the district. Riverside city officials are pleased with the results of the vote. Says Ward 1 Councilman Mike Gardner, “The district has the ability to deal with a wide range of problems. And it’s about $10 a year. You know, if you had to call a beekeeper, it could cost you a few hundred dollars.” Adds Ward 2 Councilman Andy Melendez, “[The district staff and officials] are the experts. They can do a more comprehensive job than the city.”

Equipment Received to Save Pets’ Lives

District Displays Fire-Safe Landscaping

Sacramento Metropolitan Fire District recently received a unique donation to aid in its life-saving efforts. Invisible Fence Brand made a donation to the district of 78 oxygen masks specifically designed for animals, including cats, dogs, gerbils and even snakes. More than 40,000 pets die in house fires each year in the United States and now, with the use of these masks, the number of house fire-related pet deaths could go down in the district’s service area. “To save a life – that’s the most important thing we do every day,” says Fire Captain Christopher Quinn. “The fact is, when you show up at a house fire and everybody’s out but yet a pet perishes, we still feel that we want to do more.” Each mask comes in three sizes and includes tubing to hook them up to oxygen tanks and leashes. They are the same masks used by veterinarians in animal hospitals.

Rancho Cucamonga Fire District is located in an area of California at risk of wildfires. To help educate residents on one aspect of protecting their homes, the district landscaped a local fire station with fire-safe plants. As part of the Wildland-Urban Interface Fire Safety Education Project, the landscaping at the station is intended to demonstrate best practices for homes in the area – which is a known high-fire-hazard area. The landscaping consists of stones, mulch and low-lying native plants. According to the district, when such items are used around a home, they can create defensible space to keep flames away from the structure. Says Fire Chief Mike Bell, “This will help homeowners better defend themselves and help us to defend them should a fire burn through the area like it did in 2003, during the Grand Prix fire.”

Helipad Improves Trauma Treatment in Central California A helipad at Kaweah Delta Health Care District’s hospital is now fully operational. The helipad will be used to get treatment faster to individuals with traumas needing immediate attention. Kaweah Delta staff have received months of intensive training to receive patients brought to the hospital by helicopter. According to Dr. Nichole Meissner, director of trauma for Kaweah Delta, “The helipad’s installation will have far reaching effects for the region. It will help trauma victims get treatment faster and treatment in the first hour has a significant impact on survival, especially when it comes to trauma.” The helipad was funded through donations from the community via the Kaweah Delta Hospital Foundation. The foundation raises money that goes specifically to raising the quality of patient care at Kaweah Delta.

California Special District – July-August 2013

It’s Your Ship

Interview with Mike Abrashoff, author and former Navy Commander Mike Abrashoff is a former Navy Commander. At the age of 36, Abrashoff was selected to become Commander of the U.S.S. Benfold, making him at the time the most junior commanding officer in the Pacific Fleet. When he arrived on the U.S.S. Benfold, he discovered major challenges with the ship and its crew. The crew was experiencing staggeringly low morale and, as a result, performance was at a low. Over time, under Abrashoff’s leadership, the U.S.S. Benfold became regarded as the finest ship in the Pacific Fleet, winning the presitigous Spokane Trophy for having the highest degree of combat readiness. It was through Abrashoff’s dedication and innovative leadership style that the extraordinary turnaround of the ship was made possible. California Special District asked Abrashoff to explain how he was able to achieve so much on the U.S.S. Benfold, how he leads and advice he has for leaders in any organization.

When you were selected to become Commander of the U.S.S. Benfold, you faced a number of challenges. What were some of those challenges? The challenges included low retention, high accident rate, poor morale and poor performance results.

What is The Leadership Roadmap? While on the ship, I didn’t know I was creating the Leadership Roadmap at the time. I created it after I left the ship and went back and looked at everything we did and the sequence in which we did it. And then over the years as we used it and looked at other companies that had the same results and had pretty much the same process. The Roadmap is a very simple process of first focusing on yourself and not expecting anyone to improve if you aren’t going to improve. That’s the first thing I did on my ship: I couldn’t ask my crew to change if I wasn’t willing to be out in front modeling the change. Mike Abrashoff Retired Navy Commander

Leadership is inspiring and motivating people. And leadership is about envisioning what the future is going to hold and developing a game plan to get you there so that you do stay safe in tough times.

Once I focused on myself, then I focused on my team, which was the second step, and made sure they had the training and education and motivation and understanding of why it is important to be the best. Step number three was engaging and aligning – making sure everyone on the ship knew what the mission was, where we were headed, why we had to work together as a team, and why we had to collaborate better. Step four was continuous improvement and not accepting the status quo, but creating a culture by which we are constantly sharing best practices and continuously improving every aspect of our operation.

What did your time on the U.S.S. Benfold teach you about leadership? That leaders are made and not born. That everybody can continuously improve their leadership skills and those that do are the ones that get the best results because they focus on their team and engaging them. These days it is all about employee engagement and how people take ownership for their results. That is something I’ve learned throughout my career and not something I was born with.

You have said, “The most important thing that a captain can do is to see the ship through the eyes of the crew.” Why is this so important? Because then you can communicate to them in their own language why it is important to set high expectations and do the things that we do. What I found was my crew was multi-cultural, multigenerational and each group speaks their own language. The more time I could communicate to them in their own language where we were going, why it was in our best interest to do so, and why it was in their best interest, the better buy-in I got. And I could only get that viewpoint by putting myself in their shoes.

Running a navy ship and running a business sound like two very different things, but they can actually be quite similar. Based on your experience, what are some of those similarities? We’re in the people industry. My ship cost $1.2 billion to build and by all rights it should have been

California Special District – July-August 2013

near the top in performance but it wasn’t and it’s because the people weren’t engaged. So you can have all the technology in the world but if your people aren’t engaged or taking ownership, you’re not going to be as good as you can be. Most every other business I can think of depends on the people on the front line. That is every organization’s competitive advantage - their people. And those who understand that and maximize it get the best results and stay safe in tough economic times.

Explain the difference between leadership and management. Leadership is inspiring and motivating people. And leadership is about envisioning what the future is going to hold and developing a game plan to get you there so that you do stay safe in tough times. Management is just getting through every day and

managing budgets and processes but missing out on the people time.

One key issue facing special districts in California is preparing a next generation of workers. We are seeing an entire generation of employees retiring and being replaced with a new generation that holds a different set of priorities and values. What advice do you have for districts facing this incoming generation of workers? What I found during my time on the U.S.S. Benfold was we had good, hard-working people in the military and assigned to our ship, but many of them never had role models to show them what was expected of them in organizations and why they needed to be the best every day. So what I tried to do was be that role model for them and to not demean them in any continued on page 16

Conference Highlight Tuesday, September 17, 9:00 – 10:45 a.m.

It’s Your Ship

Mike Abrashoff interview [continued] way but rather inform, teach and mentor them. People bemoan the next generation. You know what? They’re just as good as the current generation or the generation before us but because of the explosion of information available to them on the Internet, they are now more inquisitive. And they want to know why they have to do things instead of just being told to do them. What I’ve found is the more time I could spend telling them the “why,” try to be a role model for them, and not demean or berate them if they didn’t get it right away, the better buy-in I got. It was a constant process of coaching them and saying, “This is why we have high standards,” and “This is why it is in your best interest,” and “I’m going to give you the training you need to be successful.”

They came along and had just as much pride as the older generations did. But it is unfair and incorrect to categorize them as they don’t want to work hard. I didn’t find that at all – it is just we have to give them a reason why they want to come to work and work hard.

What are the top three lessons you learned during your time on the U.S.S. Benfold that you carry with you today? The first is if I don’t get the results I’m looking for, I don’t blame my people first. And instead I look inward and see what I could have done differently to generate a better outcome. The second is diversity of thought, of creativity, of gender, and of race is a great thing. How we blend that all together and make it work for us makes us a better, richer organization. And finally I would say leading with a sense of humility. I call that excellence without arrogance. The key is to be a humble leader.

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California Special District – July-August 2013

Real Heroes Don’t Wear Spandex By Charles Marshall, Motivational Speaker and Author

hen I was growing up, I read comic books filled with caped heroes that flew the skies rescuing people in distress. Then I grew up a bit more, and transferred that hero-worship to

sports stars, rock stars, and movie stars. When I grew even older, I came to realize that the real heroes in my life looked a lot different than the ones I had first admired.

Who would you say has made the biggest contribution to your success? I’ll bet it isn’t a celebrity, movie star, or professional athlete. I’ll bet it’s someone who has quietly influenced your life by giving of themselves to help direct your path or smooth the way before you. You don’t need to magically morph into Superman to be a hero, but neither do you need to become Florence Nightingale or Mother Teresa to make a difference in the world. You only need to intentionally, positively impact the lives of those in your immediate circle of influence. I shudder to think where I might have wound up if not for the investment of kindhearted people along the way. People who have no idea how much they meant to my success. People who were fulfilling their mission of making a contribution. People like my junior high band instructor, Mr. Mullins.

Conference Highlight wednesday, september 18, 9:00 – 10:45 a.m.

The Character Question: How Character Impacts Business and Community

I may not have been the biggest loser in junior high school, but I was close to it. The fact that my family was dirt poor didn’t help my social status at all.

At the age where kids are suddenly becoming aware of so much, including what one another is wearing, I was sporting handme-down clothes...from my older sisters. I know you think I’m kidding, but my older brother had moved away from home by that time, so the only hand-me-downs that were available for me were from my older sisters. Fortunately, I’m not talking sundresses and high heels, but there were plenty instances when I wore my older sisters’ crew-neck pullovers, and once, at my mother’s insistence, I even tried wearing my sister’s lightprint jeans. “Nobody will even notice!” my mother insisted. They did notice and, well, let’s just say I know firsthand that getting caught wearing your sister’s pants will not make you more popular at school. At least not the good kind of popular. On the rare occasion when I did get new clothes, they were always purchased at Kmart. “Attention Kmart shoppers! We are now running a special on dorky middle school boy’s clothing on aisle three!”

You don’t need to magically morph into Superman to be a hero, but neither do you need to become Florence Nightingale or Mother Teresa to make a difference in the world.

And the beat goes on When our principal announced band tryouts in junior high, I was one of the first ones in line. After passing a basic tonality test, I and about ninety or so other kids had to endure six weeks of music theory class before we could try out for the instrument that we wanted to play. I tried out for the drums and performed horribly. I still wanted to be in the band, though, so the band instructor, Mr. Mullins, suggested that I play a school-supplied instrument such as a tuba or a baritone, since my family couldn’t afford to buy an instrument for me. I reluctantly agreed to play the baritone and faithfully hauled that thing in its musty, old case back and forth to school every day. I even practiced regularly, even though I had no passion for it.

When I got home after my tryout, my mother was standing at the door waiting for me. “What on earth did you do?” she asked.

I made it all the way through sixth grade playing the baritone, but a month into my seventh-grade year, I knew I couldn’t hack it anymore. My dream was to play the drums, and if I couldn’t play the drums, well, I didn’t want to play anything.

Although I didn’t know what she was talking about, I figured I must have screwed up pretty royally for her to be as worked up as she was.

I mustered up the courage and went to speak to Mr. Mullins. I told him about my frustrations and I told him about my dream to play the drums. I don’t know if he agreed to allow me a second chance to try out on the drums out of pity or if he was just doing his job, but I do know that I’ll be forever grateful that he did.

Mom would practically bolt down the aisle. Everything a nerd could want: flimsy jeans with bright yellow outer-stitching that were two sizes too short, polyester print shirts and Adidas knock-off tennis shoes that were made out of plastic. That’s right. Plastic. I kid you not. After two weeks on the playground, your tennis shoes were cracking like an old garden hose. You couldn’t fix them because the duct tape just peeled right off.

California Special District – July-August 2013

“I don’t know, Mama,” I replied, “What’s wrong?” “Wrong?” my mother asked, surprised. “Nothing’s wrong. I just got off the phone talking to Mr. Mullins, and he went on and on continued on page 20

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Real heroes don’t wear spandex [continued from page 19] about how you were born to play the drums. He said we need to get you started playing right away!” A mixture of surprise, pleasure, and relief swept over me. And also anxiety. I knew we had no money and that buying a drum wasn’t likely. A new drum would cost well over $100 but it may as well have been a thousand, because we didn’t have it. Period. But the way my mother was carrying on about the things Mr. Mullins had said about me… well, maybe, just maybe. My mom must have done quite a sales job on my dad because before you could say “Buddy Rich,” I was standing at the counter at Werlein’s Music in downtown Jackson, Mississippi. My parents had made an arrangement with the store to buy a brand, spanking new Ludwig concert snare drum, with practice pad, size 2B drums sticks, and a case for somewhere in the neighborhood of $125. They came up with a bit of money to put down on the purchase and then agreed to pay something like five or ten dollars a month.

Two or three weeks later, I was first chair of the drum section. Suddenly at school I was no longer just a geek. I was a geek that played the drums! Kids still made fun of me, but now I had a niche and had a place in the order of things. It bolstered my self-esteem, and since Mr. Mullins had believed in me, I dared to believe in myself, if only just a tiny bit. I can’t tell you how playing the drums helped me get through those tough years. I can’t tell you how Mr. Mullins’s belief in me jump-started my belief in myself. I would certainly continue to have trouble at school, but just one person taking the time to invest in my life had altered my outlook and prospects.

With thanks to Paul Harvey, the rest of the story I have traveled all over the country and told this story probably hundreds of times. Not long ago I asked my wife if I had ever mentioned Mr. Mullins’s speech difficulties.

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“No,” she answered. “I don’t think so. What do you mean by ‘speech difficulties?’” “Mr. Mullins had a stuttering problem,” I said. “Really? How bad was it?” my wife wanted to know. “Well, it was kind of bad,” I said. “He had a real tough time having a normal conversation. The stuttering showed up mostly when he was talking to adults, but it still happened when he was directing band. Sometimes he would get frustrated at students talking to each other instead of listening to him or not paying attention to his directing, and it would manifest itself in a big way. When we had band concerts, he would either have a student announce the program, or maybe another faculty

member would do it, but he would rarely, if ever, speak to an audience himself.” “Wow,” my wife said, taking it all in. “No, you never mentioned that to me.” A moment passed and then she said, “Wow, that seems pretty important. Why is it that you never told me about Mr. Mullins’s speech impediment?” I thought about that for a moment and then replied, “Because it just never seemed that important.” When I think about the enormous way Mr. Mullins impacted my life– the way he invested in me, believed in me, and thus helped shape the person that I am today– any external characteristic such how tall he was, what kind of glasses he wore, or the way he spoke doesn’t make one bit of difference to me. All that matters to me is

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California Special District – July-August 2013

that somebody cared enough to reach out and plant a seed of belief in a little, nerdy, junior-high school kid. And that nerdy kid remembers that investment to this day. Whose life are you investing in? Do you make a conscious effort to reach out and offer your support and belief to those around you? You might not ever have an article written about you or have your contributions mentioned publicly. But you will be a hero to those individuals you help, and your acts of kindness will be remembered. © 2013 Charles Marshall. Charles Marshall is a nationally known humorous motivational speaker and author. Visit his website at www.charlesmarshall.net or contact him via email at info@MPowerResources.com.

[Solutions & Innovations]

Cellular antennas on special district property: The opportunity and the risk By Gail A. Karish and Matthew K. Schettenhelm, Best Best & Krieger LLP

You

licensed your special-district property to wireless communications companies that installed antennas and other communications facilities. You had the space. They were willing to pay for it. It just made sense. Didn’t it? Now you’re not sure. The operators seem to be on your property too much—in main corridors, in sensitive areas, everywhere. You pay staff overtime just to give them access. One company went bankrupt and now pays you nothing. Another pays rent that is a fraction of what it pays the special district across town. One surprised you by adding a large, protruding antenna, earning you frequent calls from nearby residents. Another attached a competitor’s antenna but paid you nothing more. They all hint that the Federal Communications Commission may limit your authority. You are not in the telecommunications business. It wasn’t supposed to be this difficult. The good news: it doesn’t have to be. Special districts can license space to wireless communications companies and obtain much-needed revenue while avoiding these headaches. It just requires some basic planning and negotiation up front. Here are six tips that will help you license your special district space successfully. 1. Don’t guess at the price. An operator’s initial rent offer will often be low. Remember that the company views your property as a gold mine that allows it to sell advanced telephone and broadband service for decades. Finding this space is often difficult. But if there is a chance to grab it at a low rate for a long term, the operators won’t miss it.

Conference Highlight

The lesson here is obvious: Do not sign a contract until you know the market rates. Also be sure that the contract includes escalator clauses that increase the payments over time. Think carefully about the term: A deal that automatically renews for decades may not reflect market changes. You should further add meaningful penalties, including those that address the operator’s failure to pay its rent on a timely basis. 2. Define the provider’s access and responsibilities. Special district property often consists of sensitive areas. You cannot allow just anyone to access it. Some special districts have also had difficulty with operators demanding access at irregular hours, which requires the special district to pay staff and security overtime. Address these issues up front. Your agreement should spell out what equipment the operator may place, where it may place it, and how and when it may access it. If any of these issues will impose burdens on you, you should require the company to propose and honor a solution. For example, if you require escorted access, address how. Reserve the right to require the operator to move its facilities later, at its own expense, should the district need the space for expansion or changes. Also be sure that you only grant rights that you control: if using an access road requires the operator to reach an agreement with a third party, be clear that this right is not one that you can grant. 3. Limit “co-location” rights. The operator will likely want to swap out antennas and add new ones over time. It may also try to host antennas owned by its competitors. This process is known as “colocation” or collocation. Limit the co-location that you permit automatically. Each time that an operator adds a new antenna or other facility to your property, it gains new benefits but imposes new burdens on you. You should reserve the right to approve the addition, and should be compensated for it.

tuesday, September 16, 3:15 – 4:30 P.m.

Cellular Antennas on Special District Property: The Opportunity and the Risk

4. Understand and confront any regulatory threats. You may be told that federal law and FCC rules limit how you can control your property. You should

Share your Solutions & Innovations Do you have a new program, process or facility that increases efficiency, reduces costs, improves service or otherwise helps make your community a better place to live? California Special District wants to know about it! Contact Nicole Dunn at nicoled@csda.net or (877) 924-2732.

understand the issue, and consider confronting it with the FCC directly.

special districts to present your views on this issue.

Last year, Congress passed a statute at the center of the issue. The statute states that a state or local government “may not deny, and shall approve, any eligible facilities request for a modification of an existing wireless tower or base station that does not substantially change the physical dimensions of such tower or base station.”

5. Anticipate changes. You should also be prepared for the possibility that the operator with whom you contract may not hold the deal for the entire term. If an operator enters bankruptcy, for example, you could find that you receive no payments for an extended period. Carefully crafting the initial agreement can avoid this. Likewise, consider reserving the right to approve any transfer of the license to another entity. You may not want just anyone operating on your property.

An “eligible facilities request” is any request to modify an existing tower or base station that involves “(A) collocation of new transmission equipment; (B) removal of transmission equipment; or (C) replacement of transmission equipment.” Unfortunately, Congress left almost all of the statute’s key terms undefined. For example, it did not define “wireless tower,” “base station,” or “substantially change the physical dimensions.” In early 2013, the FCC released non-binding “guidance” interpreting the statute. Drawing on the statute’s uncertainty, an operator could argue that you must accept many additions to the operator’s existing facilities, even when you would prefer to keep them off your property. We disagree. You have a strong argument that Congress meant only to address zoning/regulatory authority, not to restrict your fundamental property rights. The contrary view raises a serious constitutional issue. Importantly, the FCC is expected to launch a rulemaking this year to re-visit its guidance and to clarify the statute’s scope. We expect that the wireless industry will view this as an opportunity to aggressively lobby the FCC for a reading that broadly promotes its interests. To counter this, it may be important for you and other

California Special District – July-August 2013

6. Preserve the right to terminate the deal. Sometimes it just doesn’t work. A strong termination clause will allow you to end the agreement if the operator does not honor its commitments. You should also require the operator to remove its equipment or compensate you for such removal.

In short, licensing special district property to wireless operators does make sense—just do it the right way. Be sure to address issues up front to avoid problems down the road. Gail A. Karish is an attorney in Best Best & Krieger LLP’s Ontario office where she advises local governments and numerous municipal utility clients on a wide range of cable and telecommunications law matters. This includes franchising and contract negotiations with cable, media and telecommunications companies, local, state and federal regulatory compliance, such as wireless zoning and pole attachments, interlocal cooperation and governance issues, network acquisitions, expansions, and service agreements. She can be reached at Gail.Karish@bbklaw.com Matthew K. Schettenhelm is an attorney in BB&K’s Washington, D.C. office where his practice focuses on assisting local governments and other clients with appellate litigation and telecommunications matters. He has developed wireless facility, right-of-way and cable ordinances for local governments, and has assisted with the negotiation and drafting of agreements regarding cable franchising, municipal Wi-Fi and 700 MHz public safety communications. He can be reached at Matthew.Schettenhelm@bbklaw.com.

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[Community Connections]

Getting to yes: Gaining voter and community approval for your district funding needs By Catherine Lew, President/CEO, The Lew Edwards Group

Are

you considering approaching your community to financially support your operations or infrastructure through a voter measure or property owner ballot? If so, the statistics for success can be sobering. Many special district measures are parcel taxes or bond measures that require a two-thirds vote approval from voters—a tough bar to clear in today’s tax-sensitive, recovering economy. Passage rates for special district bonds or parcel taxes have ranged from onethird to 44 percent of those measures attempted during recent election cycles. Whether your district is considering a voter ballot measure, Prop. 218 rate increase, or property owner mail ballot, approaching your community at the right time with the right message is critically important to its ultimate success. I believe the majority of unsuccessful campaigns or 218 projects are undertaken by agencies that don’t make adequate use of professional expertise or comprehensive polling data. As a result, while many of these measures address core, essential services or the infrastructure your districts provide –fire protection, libraries, water/sewer and other programs - they also fail at the ballot or in the court of public opinion because of insufficient planning or weak messaging. In our experience, however, a well-planned effort can make your district successful by being proactive and identifying possible risks and addressing them prior to an election, board vote or mail ballot.

Conference Highlight wednesday, september 18, 1:45 – 2:45 P.m.

Getting to YES: Gaining Voter & Community Approval to Fund Critical Projects

When asking your community or board for financial support or rate increases, a methodical planning effort is necessary well ahead of your target vote. As our successful strategies typically involve a number of professionals such as a pollster, engineering and/or balloting firms and district staff – typically the general manager, district legal counsel and finance director – a strong lead project manager/communications consultant typically plays a critical role in coordinating all efforts and strategies from the initiation of the process. If your district is pursuing a voter or property owner ballot, a community survey is typically conducted by a polling firm to ensure that all potential election scenarios and their unique advantages/disadvantages are fully evaluated, ensuring that the right election with the right set of demographics is selected by your district. Conducting a survey also ensures that all relevant issues are fully vetted – including reaction to your proposal, issues that may affect your viability and ways to describe your proposal that are easy for your audience to understand and support. In a voter election, this includes assessing whether a higher turnout (e.g., gubernatorial or presidential) election is advantageous, or whether a lower turnout

Share your community connections Is your district interacting with the community in a new and original way? California Special District wants to know about it! Contact Nicole Dunn at nicoled@csda.net or (877) 924-2732.

(primary or special) election is better for your district. Larger percentages of Democrats and younger voters typically participate in higher turnout elections, which is helpful if your measure requires a two-thirds passage rate. Conversely, larger numbers of seniors/retirees participate in lower turnout elections, which can be a mixed bag. While voters age 65+ are more fiscally conservative, they are also more likely to rely on emergency room, fire or paramedic services, which some special districts provide. Therefore, the fiscal conservatism of these voters must be weighed against their higher propensity to support those types of services. In a property owner mail ballot election, the survey can identify unique challenges and opportunities among residential property owners, which can help in refining your message. For example, in some jurisdictions men are more likely to be the actual named property owner receiving the ballot. There are often differences between how each gender reacts to a given fact or message about why your proposal is important. If your district is a large one, there may also be geographic or neighborhood differences between how property owners respond to your proposal. This is the type of information that is helpful for our agencies to analyze and understand when evaluating the chances of future success.

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Another essential aspect of a successful planning effort is the importance of an effective message. A clear, easy-to-understand and disciplined message is critical! When approaching voters or property owners, no information should be provided “by accident”—our community surveys are designed to evaluate all facts and possible informational messages in advance of their use. This will ensure facts or statements appearing on your district’s website, Facebook page, Twitter feed, district newsletter, informational or campaign mailing will resonate with your audience at the percentages necessary for passage. For example, the phrase “maintaining rapid 9-1-1 response times” may resonate with 72 percent of your voters, while “funding district operations” may only resonate with 45 percent of your voters— important information to be aware of if planning for a two-thirds requirement measure. Many districts and their elected directors are accustomed to providing very detailed and positive information about their district’s successes and accomplishments. While this is helpful as a long-term practice, the truth is, in today’s busy 24/7 communications environment, the simpler and more anecdotal continued on page 30

California Special District – July-August 2013

www.kmtg.com Sacramento | Bakersfield | Roseville | San Luis Obispo | Walnut Creek

Legal Brief HIRING RETIRED ANNUITANTS – THE IMPACT OF PEPRA–2013 By Steve M. Berliner, Liebert Cassidy Whitmore

Employees’ Retirement Law without regard to these restrictions. On the other hand, a CalPERS retiree must comply with these rules if working post-retirement for the same or another CalPERS contracting agency. This article will focus on the restrictions applicable to CalPERS retirees.

The California Public Employees’ Pension Reform Act of 2013 (“PEPRA”) added new restrictions to the already complex set of criteria to employ individuals retired and receiving benefits from the same retirement system that the employer provides. The specific PEPRA section addressing postretirement work is Government Code section 7522.56. The restrictions this article discusses are generally inapplicable when the retiree is receiving retirement benefits from one system and working post-retirement for an agency that provides retirement benefits from another system. For example, a retiree from a CalPERS contracting agency can work post-retirement for an agency that provides benefits under the County

Most retirees want to avoid reinstatement to active membership in the retirement system, in order to earn salary and continue to receive their retirement benefits. Under Government Code section 21220, CalPERS retirees working in violation of the post-retirement work restrictions face severe consequences. They include reinstatement retroactively (up to three years or to the start of the unlawful post-retirement work, whichever is less); paying back the benefits received during that time, not receiving additional retirement benefits until the employee re-retires, paying the equivalent of employee contributions on post-retirement earnings and paying administrative fees to CalPERS if the retiree is determined to be at fault. The employer will have to pay the equivalent of employer contributions on the retiree’s post-retirement earnings with that employer and administrative penalties to CalPERS if determined to be at fault.

The Rules Given the penalties, compliance is critical. The most important issues are discussed below.

Waiting Periods

Conference Highlight

1. 180 Day Waiting Period PEPRA requires a 180 day waiting period from the date of retirement before the retiree can begin postretirement work. Before PEPRA, most retirees could retire on one day and start their post-retirement work the next. There are limited exceptions to this waiting period, however. First, public safety officer and firefighter retirees who are performing safety duties post-retirement are not subject to the waiting period. Second, non-safety employees will not be subject to this waiting period where the governing body certifies

thursday, september 19, 8:30 – 10:00 a.m.

Hiring Retired Annuitants: The Impact of the PEPRA of 2013

that the appointment is necessary to fill a critically needed position. The appointment must be made by the governing body in a public meeting (not on the consent calendar). Neither exception will apply, however, if the retiree received an early retirement incentive prior to retiring. 2. 60 Day Bona-Fide Separation A less well known, but equally significant waiting period applies independently from the 180 day waiting period. However, the 60 day “Bona-Fide Separation In Service” rule only applies where the retiree is below “normal retirement age.” Normal retirement age is the highest age of any benefit formula that will be used to calculate the retiree’s benefits. For example, if the employee retires from an agency that provides the 2 percent @ 55 retirement formula and has not worked anywhere else, 55 is the normal retirement age. However, the last agency’s formula is not controlling. If, for example, part of the retiree’s benefit will be calculated at the 2 percent @ 60 formula (from service with a different employer), 60 is the normal retirement age. In this example, if the retiree retires at 57, he/she is below normal retirement age given the higher 60 year threshold. Retirees must confirm their normal retirement age for purposes of this rule. If a retiree is under normal retirement age, the retiree must have (1) a 60 day break between retirement and the start of post-retirement work; and (2) no prior agreement with the employer to return to work. If either factor is not met, the post-retirement work is unlawful and the penalties described earlier can be assessed. The agreement to return to work need not be formal or in writing. Any prior informal agreement will also violate the rule.

12 Month Waiting Period Another little known restriction makes a retiree ineligible for post-retirement work

California Special District – July-August 2013

for 12 months if, during retirement, the retiree receives unemployment benefits as a result of losing a post-retirement appointment. Limitations On Length Of Appointment And Hours The maximum length of a post-retirement appointment remains a gray area. Both before and after PEPRA, the appointment was limited to the period of an “emergency to prevent stoppage of public business” or because “the retired person has skills needed to perform work of limited duration.” Neither allows a retiree to be appointed permanently. Moreover, throughout 2012, various changes were made in the law and PEPRA simply added to the confusion. Until further guidance is given, for the vast majority of appointments, the most cautious route would be to appoint retirees to perform “extra help” duties, which CalPERS describes as elimination of backlog, special projects and work the employer’s permanent employees cannot perform. The retiree should not be appointed to fill a vacant position, but instead should be appointed to a temporary annuitant or other similarly titled classification. PEPRA continues the earlier limitation on post-retirement employment to 960 hours in a fiscal year (July 1-June 30 for CalPERS contracting agencies). There is no mechanism to request to work additional hours. continued on page 42

We are proud to advise California Special Districts in all types of Labor & Employment and Business & Facilities matters:

- Employment Law - Retirement - Labor Relations - Negotiation - Litigation - Wage & Hour - Contracts - Purchasing Agreements - Construction For more information, stop by our booth at the 2013 CSDA Annual Conference, or visit

www.lcwlegal.com CalPublicAgencyLaborEmploymentBlog.com | @LCWLegal Los Angeles | San Francisco | Fresno | San Diego

$20,000 available to special districts through new SDLF Educational Allowance Fund The Special District Leadership Foundation has created the 2013 Educational Allowance Fund for special district staff and elected officials. Are you unable to attend CSDA professional development events and programs due to limited budgets? The Special District Leadership Foundation, an independent, nonprofit 501c3, formed to promote good governance and best practices among California’s special districts, has created the new 2013 Educational Allowance Fund to provide up to $20,000 in scholarships to special districts with annual operating budgets of under $5 million. Applicants must submit a scholarship application along with a brief description of why they believe it would be beneficial to receive the scholarship, along with any special circumstances or items for consideration by the scholarship committee. Priority will be given to first time attendees at any of the events and programs listed. The funds do not cover any travel, meals or lodging. Educational Allowance Funds can only be used for the fees associated with the following qualifying CSDA and SDLF events and programs: • CSDA General Manager Leadership Summit • CSDA’s Annual Conference & Exhibitor Showcase • Special District Leadership Academy (SDLA) Conference or SDLA workshops • CSDA webinars • Special District Administrator (SDA) study materials, exam and/or application fees.

CSDA Appointees

Stanley Caldwell, Mt. View Sanitary District Jo MacKenzie, Vista Irrigation District Sherry Sterrett, Pleasant Hill Recreation & Park District

SDRMA Appointees Special District Leadership Foundation 1112 I Street, Suite 200 Sacramento, CA 95814 www.sdlf.org

Staff

Applications will be reviewed by a three-member panel of the SDLF board and awarded on a case by case basis. Scholarship funds are limited to $1,500 per district per year and are available to districts with annual operating budgets of less than $5 million. Scholarship recipients must register and pay for the activity and submit receipts to the Special District Leadership Foundation for reimbursement upon completion. We hope you and members of your Board of Directors and staff will consider applying for these funds. Please contact info@sdlf.org or call 916-231-2939 for additional information.

Congratulations to those who completed the following SDLF programs: District of Distinction

• Chico Area Recreation & Park District (reaccreditation) – April 2013 • San Jacinto Valley Cemetery District (reaccreditation) – April 2013 Transparency Certificate of Excellence

• Chico Area Recreation & Park District – April 2013 • San Jacinto Valley Cemetery District – April 2013 • Stege Sanitary District – May 2013 • Elk Grove Water District – May 2013 • Pine Cove Water District – May 2013

Neil McCormick, Administrator Megan Hemming, Program Manager Charlotte Lowe, Program Assistant Rick Wood, Finance Manager

David Aranda, SDA, North of the River Municipal Water District Muril Clift, Cambria Community Services District Jean Bracy, SDA, Mojave Desert Air Quality Management District

Public Member Appointees

Katie Kolitsos, Chief Consultant, Assembly Local Government Committee April Manatt, April Manatt Consulting Geoffrey Neill, California State Association of Counties

Special District Leadership Foundation Programs promoting good governance.

SHOWCASE YOUR DISTRICTâ&#x20AC;&#x2122;S COMMITMENT TO TRANSPARENCY

District Transparency Certificate of Excellence

The District Transparency Certificate of Excellence is a standalone program of SDLF and made available to districts that apply and meet certain requirements. It is also a required component of the District of Distinction Accreditation. This program was created in an effort to promote transparency in the operations and governance of specials districts to the public and to provide special districts with an opportunity to showcase their efforts in transparency.

For more information and an application, visit www.sdlf.org or call 916.231.2939.

Get your district certificate today!

Are you up for the Challenge? Prove your commitment to transparency

SDLF is supported by

The Special District Leadership Foundation (SDLF) is a an independent, non-profit organization formed to promote good governance and best practices among Californiaâ&#x20AC;&#x2122;s special districts through certification, accreditation and other recognition programs.The SDLF and its activities are supported through the California Special Districts Association and Special District Risk Management Authority.

Getting to yes [continued from page 25]

the message, the better. And, only sharing positive news will dilute the urgency of your needs when seeking community support for your proposal. Our successful clients also share their fiscal/service delivery challenges and their needs in telling a story about why they need help from the community. Informational mailings that are solely focused on your proposal and why you need community support, are a “must” for any district pursuing a voter or property owner measure.

Those of you from districts planning a Prop. 218 rate increase, which requires a protest hearing and vote of your elected Board, can eliminate some of the action steps suggested above. But again, in today’s recovering economy, constituents can be very sensitive to rate increases and elected boards will consider those reactions in making rate decisions. Unfortunately, we have found that just a handful of opponents speaking or protesting is enough to make some Boards gunshy about implementing a proposed increase. Counter-intuitively, we find that a proactive, communityengaged approach to inform the community of your proposal will actually help to minimize opposition or unpleasant surprise at the board meeting/public hearing where rate increases are considered.

CSDA’s Business Affiliates CSDA gratefully relies on the generous support of all Business Affiliates

Gold level

CSDA Finance Corporation www.csdafinance.net Meyers Nave www.meyersnave.com Special District Risk Management Authority www.sdrma.org

Burke, Williams & Sorensen, LLP www.bwslaw.com California CAD Solutions, Inc. www.calcad.com CPS HR Consulting www.cps.ca.gov HdL Coren & Cone www.hdlcompanies.com MCE Corporation www.mce-corp.com PARS www.pars.org

Diamond level

For more information about all CSDA Business Affiliates, see the Buyer’s Guide at www.csda.net. To learn more about becoming a CSDA Business Affiliate or participating at a higher level, contact our office at 877.924.2732.

Some districts make the mistake of failing to communicate with their public, believing that these increases should be pro forma. However, in the absence of a focused, clear message, potential critics and naysayers can frame your proposal in a negative light. Being proactive allows your district to describe your proposal and define it in the manner most compelling and appropriate for you. Catherine Lew is the President/CEO of The Lew Edwards Group, a firm specializing in preparing public agencies for difficult tax, bond or revenue measures, enacting more than $30 Billion with a 94 percent success rate. Catherine Lew’s panel will be presenting at the upcoming Annual Conference on Wednesday, September 18th at 1:45 pm. To reach Ms. Lew, call 510-594-0224 x 216, email catherine@lewedwardsgroup.com, or visit www.lewedwardsgroup.com

A special thank you to:

California Special Districts Alliance Bringing the best in resources, products and services to all special districts.

Services & Benefits

Coverage protection

Financing

• Advocacy

• Property/Liability

• Infrastructure Improvements

• Education

• Workers’ Compensation

• Buildings, Land & Equipment

• Cost Saving Programs

• Health Benefits

• Refinancing

877.924.2732

800.537.7790

877.924.2732

www.csda.net

www.sdrma.org

www.csdafinance.net

anaging Risk

Dangerous conditions of public property and third-party conduct: The alleged condition must cause the conduct, not just the injury Reprinted From Low, Ball & Lynch Weekly Law Resume™, January 10, 2013.

Plaintiffs have sued public entities alleging that a ‘dangerous condition of public property’ contributed to the cause of accident/injury. In a case heard in December of 2012, the California Court of Appeal, Second Appellate District has made a ruling regarding the ‘dangerous condition’ theory under California Government Code §835: §835. Except as provided by statute, a public entity is liable for injury caused by a dangerous condition of its property if the plaintiff establishes that the property was in a dangerous condition at the time of the injury, that the injury was proximately caused by the dangerous condition, that the dangerous condition created a reasonably foreseeable risk of the kind of injury which was incurred, and that either: (a) A negligent or wrongful act or omission of an employee of the public entity within the scope of his employment created the dangerous condition; or (b) The public entity had actual or constructive notice of the dangerous condition under Section 835.2 a sufficient time prior to the injury to have taken measures to protect against the dangerous condition.

Cordova v. City of Los Angeles California Court of Appeal, Second Appellate District (December 20, 2012) Plaintiffs injured by the negligent or criminal acts of others often allege that a dangerous condition of public property contributed to their injuries. In this case, the Court of Appeal addressed the whether a public entity’s liability requires that the condition of its property contribute to the existence or extent of the injuries in any manner, or whether that condition must specifically contribute to the third-party’s negligent or criminal conduct. On August 27, 2008, at approximately 10:30 p.m., Cristyn Cordova was driving westbound with four passengers on the inside lane of Colorado Boulevard in Los Angeles. To the left of Cordova’s vehicle was a grassy median divider with semi-regularly placed magnolia trees. To its right was a vehicle driven by Rostislav Shnayder. Both Cordova and Shnayder were likely traveling above 65 mph in this 35 mph zone. As Cordova approached Hermosa Avenue, Shnayder’s car veered into hers, pushing it into the grassy median, where it struck a magnolia tree and crumpled. Cordova, her unborn baby, and three passengers were killed in the impact; one was seriously injured. Shnayder was arrested at the scene and later convicted of vehicular manslaughter. Cordova’s parents sued the City of Los Angeles for wrongful death based on an alleged dangerous condition of public property (Government Code § 835). They alleged that Colorado Boulevard was in a dangerous condition due to the lack of “clear zones” – i.e., areas of roadway left unobstructed – as well as due to the presence of the magnolia tree and other features. The City filed a motion for summary judgment, asserting that the center median of Colorado Boulevard was safe when used in a reasonably foreseeable manner; the median was not damaged, deteriorated, defective or latently hazardous; and the accident that resulting in the deaths and injury was the result of third-party criminal conduct. The City submitted evidence showing that the 85th percentile speed on that portion of Colorado Boulevard was between 35 and 40 mph. It also submitted evidence showing that the width of the median and the location of the tree on it complied with both its own Bureau of Engineering Street Design Manual as well as American Association of State Highway and Transportation Officials (AASHTO) guidelines. Specifically, there was seven feet of clearance from the magnolia tree to the inner edge of the painted traffic lane in which Cordova was driving, and the median had a standard, six inch curb face. In addition, the City showed that, of the prior collisions arising from the 32,500 daily vehicle crossings, none involved the median trees or fatalities.

A proud California Special Districts Alliance partner.

Officers

David Aranda, President, North of the River Municipal Water District Jerry Ledbetter, Vice President, Alameda County Water District Muril Clift, Secretary, Cambria Community Services District Special District Risk Management Authority 1112 I Street, Suite 300 Sacramento, CA 95814 tel: 800.537.7790 www.sdrma.org

Members of the Board

Jean Bracy, Mojave Desert Air Quality Management District Terry Burkhart, Bighorn-Desert View Water Agency Ed Gray, Chino Valley Independent Fire District Sandy Raffleson, Herlong Public Utility District

In their opposition to summary judgment, the Cordovas submitted evidence of eight “scars” on magnolia trees, possibly indicating prior collisions, as well a 1979 U.S. Department of Transportation study indicating that trees are the second most commonly struck fixed objects on roadways. In addition, they presented evidence of numerous sideswipe collisions on that stretch of Colorado Boulevard. Accordingly, the Cordovas argued, it was foreseeable that a catastrophic collision would occur if appropriate safety measures were not taken. The trial court granted the City’s motion for summary judgment, noting that, if the Cordovas’ theory were accepted, boulders, mailboxes and all other items by the side of a road would have to be removed. It also did not find any causal connection between the tree and the accident; instead, only Shnayder’s conduct caused the collision. The Court of Appeal affirmed. It reviewed a number of prior decisions involving allegations of a dangerous condition of public property in conjunction with wrongful third-party conduct. Under those decisions, a public entity may be liable even where the immediate cause of injury is a third party’s negligent or criminal act, “if some physical characteristic of the property exposes its users to increased danger” from the third-party conduct. Public-entity liability may lie where a feature of the property increases or intensifies the risk to users from third-party conduct. However, the third-party conduct alone does not constitute a “dangerous condition” under § 835; instead, the defect in the property must have some causal relationship to the conduct that injures the plaintiff. Property is not “dangerous” under that statute if it is

California Special District – July-August 2013

Consultants

Lauren Brant, Public Financial Management Ann Siprelle, Best Best & Krieger, LLP David McMurchie, McMurchie Law John Alltop, Bickmore Risk Services & Consulting Charice Huntley, River City Bank James Marta, CPA, Auditor Karl Snearer, Apex Insurance Agency Doug Wozniak, Alliant Insurance Services, Inc.

SDRMA Staff

Gregory S. Hall, ARM, Chief Executive Officer C. Paul Frydendal, CPA, Chief Financial Officer Dennis Timoney, ARM, Chief Risk Officer Barbara Tyler, CCLA, Claims/Loss Prevention Manager Nicole Rushing, Finance Manager Ellen Doughty, Manager of Member Services Karen Lafferty, AIC, Senior Claims Examiner Shawn Vang, Accounting Technician Wendy Tucker, Member Services Specialist II Alana Batzianis, Health Benefits Specialist II Rachel Saldana, Administrative Assistant

safe when used with due care and the risk of harm is created only when foreseeable users fail to exercise due care. Applying these principles, the Cordova court held that the plaintiffs could not show that the magnolia tree contributed to Shnayder’s criminally negligent driving. It stated that “[t]here is nothing about Colorado Boulevard that would cause a person driving at or near the speed limit to suddenly veer into the magnolia tree.” In addition, the plaintiffs did not contend that the view of the median was obstructed, that the tree was a surprise obstacle, or that the median and trees caused cars to travel at an unsafe speed. The court thus affirmed the judgment in the City’s favor. COMMENT The Cordova decision is strongly favorable to public entities defending cases under Government Code § 835. Its significance lies in its clear definition and application of the necessary causal relationship between public property and third-party conduct. Plaintiffs often attempt to defeat summary judgment – sometimes successfully – by arguing that a condition of public property “increased or intensified” the risk to them by, for example, preventing them from seeing or avoiding the negligent or criminal third-party or, as in Cordova, by increasing the severity of the injuries resulting from the third-party conduct. As the Cordova decision makes clear, however, the property can only be considered dangerous when it allows, enables or facilitates the thirdparty conduct in the first place.

Please contact SDRMA Chief Risk Officer, Dennis Timoney at 800.537.7790 or email Dennis at dtimoney@sdrma.org.

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Accounting, Auditing, Consulting and Tax

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Money Matters OPEB – Is there a cost to doing nothing? By Mitch Barker, Executive Vice President, PARS

The Cost of Time If districts do not make pre-funded contributions into irrevocable trusts, then the obligations continue to grow as employees age and medical costs inflate. Thanks to GASB 45, financial statements must now disclose these liabilities. According to the accounting board’s perspective, simply setting aside money in reserves is not considered an asset to offset liabilities. Financial statements and actuarial valuations divulge these numbers to governing boards year after year.

California special districts by now have grown accustomed to obtaining GASB 45-imposed actuarial valuations to quantify their long-term retiree health care liabilities (on a two or three year cycle depending on a district’s size). But what have districts done with these documents? According to a 2012 CSDA Survey of Administrative Salary and Benefits, just under half of responding special districts reported Other Post Employment Benefits or “OPEB” obligations. It is estimated that nearly 300 special districts have taken the next step to prefund their liabilities within an irrevocable trust. Still others have OPEB monies sitting outside a trust in low interest rate reserves or funds. And a number of districts remain in the “pay-as-you-go” mode, citing budgetary demands or other constraints. Is there a cost for not taking actions based on an actuarial valuation? There definitely can be a price to pay, especially now as the economy improves, the stock market grows, healthcare costs continue to rise and the baby boomer retirement flood has begun.

CSDA F C

A proud California Special Districts Alliance partner.

By offering benefits and not setting aside funds to pay for future liabilities, entities will have to pay considerably more to meet their obligations in the future. The alternative -- pre-funding benefits -- not only avoids this problem but also results in investment earnings that supplement funding contributions to lower long-term costs.

The Cost of Investing By law, placing funds into an irrevocable, exclusive benefit trust permits diversification of investments. An actuary can increase the discount rate assumption from, say, three to four percent for fixed income only investing up to six to eight percent for equity-exposed investing. As a rule of thumb, for every one percent increase in discount rate achieved, an employer can lower its liability cost about 10-15 percent. In an established pension, investment earnings can pay up to 70 percent of the cost of the benefit. Of the 43 districts in the CSDA-endorsed PARS OPEB trust, all are in portfolios with a mix of fixed income and equities – 81 percent are in seven different pre-established investment portfolios with strategic ranges between five percent to 70 percent equities, while the remainder have customized investment strategies. The most popular portfolios for special districts are what is termed “Moderate”

Officers

Jo MacKenzie, President, Vista Irrigation District James Acosta, Vice President, Saticoy Sanitary District Scott Dowell, Secretary, Chico Area Recreation and Park District

CSDA F C

CSDA Finance Corporation 1112 I Street, Suite 200 Sacramento, CA 95814 tel: 877.924.CSDA www.csdafinance.net

Members of the Board

Scott Dowell, Chico Area Recreation and Park District Paul Hughes, South Tahoe Public Utilities District Leslie Keane, Orange County Cemetery District John Martin, Tehachapi-Cummings County Water District Larry Peterson, Rancho Simi Recreation and Park District

approach (30 percent of districts), with a target 50/50 percent split of equities to fixed income and a “Balanced” approach (19 percent of districts) with a target 60/40 percent split of equities to fixed income. The portfolios have experienced strong returns for five years - well beyond returns from treasury funds, even though that period encompassed the unprecedented financial and stock market collapse in the fall of 2008. The stock market has made its way out of a deep recession, a historically strong time to enter into equities. These districts investing now will have an advantage over those who wait until much later.

The Cost of Debt Rating agencies may not be rushing to downgrade ratings as GASB 45 reveals retiree health liabilities, but unfunded pension and retiree health obligations are viewed by bond analysts as similar to debt. As more governments address retiree health liabilities each year, rating agencies may compare those governments that have acted with others that have not. Fitch Ratings sees OPEB as an even more volatile liability than pensions because of medical care costs and other factors that are not as predictable as pensions. A 2007 Fitch report stated: “…the looming OPEB liability for many governments, if not confronted over a reasonable time, will eventually manifest itself as a monumental

California Special District – July-August 2013

Consultants

David McMurchie, McMurchie Law Josephine Libunao, BNY Mellon Trust Co., NA William Morton, Municipal Finance Corporation Saul Rosenbaum, Prager & Co., LLC Jeff Stava, Nossaman, LLP

budget challenge. Various actions, including taking more moderate and gradual measures, implemented over the near term will prevent the need for more drastic solutions and problems over the long run.”

The Cost to Employees and Taxpayers Like pensions, OPEB liabilities are promised benefits that accrue over an employee’s career and are paid out after retirement. Pre-funding creates a pool of assets to support future benefits that public employees expect to receive. It locks the money away so it cannot be used by the employer and labor for other purposes. In contrast, a pay-as-you-go approach shifts OPEB costs from one generation of employees and taxpayers to the next. Jeffrey Meyer, Finance Director, from Calaveras County Water District stated at the inception of funding a few years ago: “By placing our ARC in an irrevocable continued on page 36

CSDAFC Staff

Neil McCormick, Administrator Cathrine Lemaire, Program Manager Charlotte Lowe, Executive Assistant Rick Wood, Finance Manager

CSDA Finance Corporation Recently Closed Financings Fresno Westside Mosquito Abatement District Building Construction $1,500,000 Pleasant Hill Recreation & Park District Furnishings $300,000 Saratoga Fire Protection District Refinancing $2,100,000 Twain Harte Community Services District Fire Truck $363,732 Call 877.924.2732 or visit www.csdafinance.net.

Conference Highlight wednesday, september 17, 1:45 – 2:45 P.m.

Why You Can’t Afford NOT to Prefund OPEB!

Money matters [continued from page 35] trust, not only is the district compliant with GASB 45, but…we are maximizing our ability to ensure that we will be able to fund OPEB when our employees retire.” The CSDA Survey of Administrative Salary and Benefits shows promising signs for the future. Many districts are clearly taking steps to respond properly to their actuarial valuations. In fact, the survey indicates that the majority of districts are pre-funding in some way. But are they doing it in the right way? There are lost opportunity costs for those districts that do not effectively plan for and invest their OPEB obligations. The good news is that the GASB 45 era has just begun and there is still time and opportunity to catch up. Mitch Barker, Executive Vice President, PARS (Public Agency Retirement Services), mbarker@pars.org, (800) 540-6369 ext.116

CSDA Finance Corporation Aids in Replacement of Aging Infrastructure Three years ago, with the help of the CSDA Finance Corporation, Del Paso Manor Water District was able to issue $6.5 million in revenue bonds to begin replacement of an aging infrastructure. The district has eight wells with seven of them between 55 and 60 years old and their first concern was replacing some of the wells to assure a reliable water supply. At the end of 2011 the district completed replacement of their oldest well. They are now in the process of replacing a well located behind their office facility, originally drilled in 1956.

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SDA C

e l c 3 1 a n 0 u 2 nn ere itor A onf hib se C Ex ca & howerey S ont M

September 16-19, 2013

Monterey Marriott Hotel & Monterey Conference Center conference.csda.net

California Special District â&#x20AC;&#x201C; July-August 2013

[What’s so special]

Waste not, want not

Monterey Regional Waste Management District Monterey Regional Waste Management District (MRWMD) goes above and beyond simply providing waste management services. Over the years, they have strived to make the most of the waste the district takes in. From their Last Chance Mercantile, which allows residents to donate used goods instead of throwing them away, to their anaerobic digester, which reuses waste in a whole new way, MRWMD takes their mission of managing waste to a whole new level. California Special District asked MRWMD to explain its various innovative programs and provide a glimpse of what conference attendees who sign up for this pre-conference tour will get to experience. What core services does your district provide to the public?

William Merry, General Manager

Our mission is to provide the highest quality, costefficient, integrated waste management services while preserving our environment and protecting public health through the reduction, reuse, recycling and safe disposal of our waste-stream. Over the course of 62 years, the district’s programs and facilities have responded to community needs and state and federal mandates. Our complimentary or “integrated” programs are designed to make it easy to reduce, reuse, recycle. The question we hear most frequently from tour participants is: “Why aren’t all landfills like yours?”

What is the Last Chance Mercantile? How does it fit in with your district’s mission?

Conference Highlight monday, september 16, pre-conference tour

Monterey Regional Waste Management District Tour

The “Last Chance” is the magical place where one person’s trash becomes another’s treasure. Having a reuse store at the entrance to the landfill makes it easy for customers to donate reusable goods rather than throw them away. District staff also salvage reusable items from the trucks that tip their loads in the Materials Recovery Facility. As a result, this is the “Last Chance” for these items to get reused and the store inventory is one-of-akind and always changing. Over the years, this program is probably what the MRWMD is best known for in the local community. The Last Chance Mercantile pays for itself by generating over $700,000 annually in revenues,

Monterey Regional Waste Management District Established: 1951 Size: 110 employees Population: 175,000

Budget: $18,745,000 Location: The Monterey Peninsula Website: www.mrmwd.org

employs ten staff, through reuse sales and providing low cost materials to customers. Although it sounds like an obvious way to promote reuse, the Last Chance Mercantile is the only thrift store located at a landfill that we know of in the U.S.

What is an anaerobic digester? How does it work? The anaerobic digester (AD) takes the aerobic compost process that happens naturally in nature and encloses it so that decomposition rapidly takes place in the absence of oxygen. The process is managed so that the organic materials release methane gas which is consumed in an engine generator to produce electricity during a 21 day process. In a nutshell, the AD system harvests the energy value of hard to manage organics, like food scraps from restaurants, and the resulting “digestate” is then fully composted outdoors to produce a finished compost, which is then sold to nearby farms to help grow more food.

MRWMD makes and sells green gardening products. Explain what these are and why they are good for the environment. We receive tens of thousands of tons of “green waste” landscape trimmings, brush and grass clippings each year. These materials are composted at the district to produce high quality compost and soil amendment. This 100 percent recycled compost is in turn available for sale to the local community to go right back into the gardens and landscapes that produced the green waste in the first place. This is probably the best example of “closed loop” recycling where the cycle can be replicated over and over.

What is the Small Planet School Education Program? This is our outreach and education program for local school kids that began more than 20 years ago. Today, we offer tours that conclude with a zero waste lunch in our Small Planet garden to thousands of elementary, high school and college students each school year. In addition, district staff offer classroom presentations on a range of topics related to the “3Rs” (reduce, reuse, recycle) and also school assemblies.

What can attendees of the CSDA Annual Conference and Exhibitor Showcase look forward to if they sign up for this preconference tour? Tour participants can look forward to seeing a waste management facility that has been recognized as the “Best in North America.” See the “integrated” facilities that provide essential community infrastructure for the Greater Monterey Peninsula region for reducing, reusing, recycling and safely disposing of waste including: the legendary Last Chance Mercantile reuse store, Materials Recovery Facility recycling center, the first-in-the-U.S. SmartFerm Anaerobic Digestion composter, hazardous materials collection facility, landfill gas renewable energy plant, and the Monterey Peninsula Landfill where our falconer and his birds reside to chase away hungry seagulls.

How will this digester benefit the public? The AD is a state-of-the-art compost process that has been recognized in California and elsewhere as the “next frontier” in organics management. This pilot project will allow the district to fully evaluate the potential of AD for future district programs. The local restaurant community has been the driving force behind getting food scraps collected and composted. In the short term, this program gives them the satisfaction of knowing that their food residue is being utilized to produce renewable energy and compost. The opportunity to pilot test this technology, without paying the $2 million in capital up front to buy the system, will help inform the decision making that will guide district programs well into the future. In that sense it is an invaluable learning experience.

California Special District – July-August 2013

Looking for budget balancing tools? More than 600 public agencies have chosen PARS for retirement solutions that help save money such as: • OPEB pre-funding trust to reduce liabilities • Social Security alternatives for part-timers to save 79% • Leave conversion plans to reduce large payouts at the end 800.540.6369 x 116; mbarker@pars.org www.pars.org ©2013 Public Agency Retirement Services (PARS). All rights reserved.

[Business Directory]

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California Special District – July-August 2013

Utility Service Co., Inc. has proudly served the potable and industrial water industries for over 50 years. Today’s Utility Service Group provides comprehensive condition assessments, rehabilitation services and sustainable asset management solutions throughout the whole water cycle. N. CA. Counties | Kevin Barnes | 916-342-2886 kbarnes@utilityservice.com S. CA. Counties | Keith Myers | 916-869-4464 kmyers@utilityservice.com utilityservice.com

Legal brief [continued from page 27] Limitations On Compensation PEPRA continues previous limitations on compensation for retirees. All retirees must be paid hourly, at no less than the minimum, nor more than the maximum, paid to other employees performing similar work. If employees are normally paid a salary, the monthly salary shall be divided by 173.333 to equal an hourly rate. Retirees may not receive any benefits. The Independent Contractor Trap CalPERS uses the â&#x20AC;&#x153;common law employeeâ&#x20AC;? test. The test requires an analysis of the circumstances under which work is to be performed. The most significant factor is the control test. If the employer controls the work performed on a day to day basis, the worker likely is an employee subject to these rules. It does not

matter if the retiree/employee is called a â&#x20AC;&#x153;consultantâ&#x20AC;? or â&#x20AC;&#x153;independent contractor.â&#x20AC;? Titles have little relevance to the analysis. Similarly, signing a consultant agreement or getting paid on an invoice are not determinative. Any attempt to avoid post-retirement work rules on this basis is risky and legal counsel should review the facts prior to beginning the relationship to avoid possible reinstatement. Restrictions on post-retirement work continue to tighten. Retirees and employers need to keep up to date on the changes to these rules to avoid the significant penalties that will apply to an unintended reinstatement. Steve Berliner is a partner with Liebert Cassidy Whitmoreâ&#x20AC;&#x2122;s Los Angeles office. Steve has an expertise in advising and defending public agencies regarding the laws and regulations of public employee retirement plans, such as PERS, as well as on retiree health insurance issues.

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