California Special District: Conference Edition

CA SPECIAL

DISTRICT Publication of the California Special Districts Association

Volume 9, Issue 4, July - August 2014

CSDA Annual Conference & Exhibitor Showcase

Palm Springs

CONFERENCE

EDITION

G

IS

T E R NOW

R

E

The leadership conference for special district officials and staff.

The Speed of Trust – Interview with Stephen M.R. Covey

Debuting the networks - part two

CSDA Annual Conference & Exhibitor Showcase

Palm Springs The Leadership Conference for Special District Officials and Staff September 29 – October 2, 2014 RENAISSANCE PALM SPRINGS HOTEL

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Volume 9, Issue 4 • July - August 2014

Contents

6

CSDA’s General Manager Leadership Summit Recapping the 2014 Conference Event

18

The Speed of Trust

Interview with Stephen M.R. Covey

5 Professional Development Build on leadership skills with landmark opportunites; Professional development calendar 16 In Brief New technology increases water measurement accuracy; Kids fishing derby reels in families; Park district receives land donation; Library features aviation section thanks to grant; District receives grant to enhance children’s area; Internship provides real-life learning for students; Costa Mesa Sanitary District celebrates 70 years of service

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Training your memory: What I’ve learned from english philosophers, wild parties and dead athletes

26 Solutions & Innovations What you need to know when you don’t have an HR department 28 Community Connections Citizen engagement: New uses of social media and the body politic 30 Legal Brief How to obtain, engage and effectively use legal counsel

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What’s So Special

Providing water in a thirsty climate Coachella Valley Water District

36 Managing Risk Developing your safety program 38 Money Matters Special districts and the SEC continuing disclosure initiative

Grassroots Action Update - page 12 CSDA Policy Priority: revenue, finance and taxation

32 SDLF Is your district destined for distinction?

Printed on recycled paper.

California Special District – July-August 2014

CA SPECIAL

DISTRICT © 2014. California Special Districts Association.

All rights reserved.

Officers

BOARD president’s message

Noelle Mattock, President El Dorado Hills Community Services District

The Opportunities Abound at the CSDA Annual Conference

Steve Perez, Vice President Rosamond Community Services District Vincent Ferrante, Secretary Moss Landing Harbor District William Nelson, Treasurer Orange County Cemetery District Stanley Caldwell, Past President Mt. View Sanitary District

Members of the Board Jim Acosta, Saticoy Sanitary District Elaine Freeman, Rancho Simi Recreation & Park District Jo MacKenzie, Vista Irrigation District Greg Orsini, McKinleyville Community Services District David Pierson, Sacremento Metropolitan Fire District Ginger Root, Country Club Sanitary 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 John Woolley, Manila Community Services District

CSDA Staff Neil McCormick, Chief Executive Officer Megan Hemming, Professional Development Director Cathrine Lemaire, Member Services Director Kyle Packham, Advocacy & Public Affairs Director Todd Winslow, Publications Director Emily Cha, Staff Assistant Nicole Dunn, Editor Sharon Foster, Professional Development Assistant Monica Greenberg, Business Development Specialist Dorothy Holzem, Legislative Representative Jess Lima, Legislative Assistant Christina Lokke, Legislative Representative Charlotte Lowe, Executive Assistant Jimmy MacDonald, Legislative Analyst Miryam M. Barajas, Public Affairs Specialist Koy Saeteurn, Receptionist James Wilfong, Senior Designer 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

Noelle Mattock

I

t’s hard to believe this year will be my sixth attending the CSDA Annual Conference. I was elected to the El Dorado Hills Community Services District in November 2008 and, although I had 13 years of professional experience in government relations and an educational background in public policy (Masters of Public Policy and Administration), I knew my new role as an elected official was different. I wanted to know better what I was supposed to do (and could do) and what I was supposed to avoid. So, I took my first class at CSDA within the first two months of being sworn in and immediately knew the Annual Conference was going to be the best possible way for me to learn more about the topics I was interested in, in one location, over just a few days.

With each conference I bring something back to my district. Through my time spent in the exhibit hall and learning about various electronic document storage systems, my district renewed our conversation about our document storage and are now moving toward a paperless system and getting our historical documents into electronic format.

Through breakout sessions I gained a better understanding of the Special District Risk Management Authority’s (SDRMA) services and how they help districts manage and track various trainings. I have also

I urge you to attend this year’s conference because there is no other conference offered where you can learn so much in this compact timeframe.

learned, through talking with other CSDA conference attendees, about their experiences of starting a 501(c)3 nonprofit to complement their organization.

From these conversations, the El Dorado Hills Community Services District is in the process of launching our very own non-profit to help fulfill the mission of our CSD. I urge you to attend this year’s conference because there is no other conference offered where you can learn so much in this compact timeframe. Even after all these years, I can expect to learn something I did not know before or gain a better understanding of something I thought I knew. Take a look through this issue, which offers just a sampling of what this year’s conference will have to offer.

I look forward to seeing you in Palm Springs, September 29 – October 2!

CSDA Annual Conference & Exhibitor Showcase

Palm Springs

A proud California Special Districts Alliance partner

4

Highlight

Build on your leadership skills with these landmark professional development opportunities CSDA serves the needs of both board members and staff with two upcoming educational opportunities.

The first is the So You Want to Be a General Manager? workshop, which will be held in Palm Springs prior to the CSDA Annual Conference on September 29. This session, led by Bill Chiat and Dr. Frank Benest, is geared toward emerging leaders from your special district staff. This practical career development workshop will cover the journey, roles and skill sets of a general manager, leadership practices, and how to develop positive relations with the board of directors, staff and peer agency executives.

Class size is limited, so register early! Registration is now open at www.csda.net.

The second opportunity, focused on the needs of special district board members and trustees, is the CSDA Special District Leadership Academy (SDLA) Conference.

The SDLA conference provides the knowledge base to perform essential governance responsibilities. The conference will be held November 16 – 19 in San Diego. First time attendees will be able to cover all four modules of the Special District Leadership Academy in just two and a half days. New this year, those who have already completed the Academy are welcome to participate in advanced coursework such as reading and understanding financial statements, rules of order, strategic planning and evaluating the general manager.

Registration opens soon, watch your mailbox and CSDA e-News for more information.

California Special District – July-August 2014

August August 6

WEBINAR

Improve Your Outreach Skills and Build Bridges

August 13

WEBINAR

Board Member and District Liability Issues

August 19

WEBINAR

The New Transparent District – Building Public Trust

August 21

WEBINAR

Understanding the Brown Act: Beyond the Basics

August 27

WEBINAR

Dos and Don’ts for Employee Performance Evaluations

September September 17

WEBINAR

Strategies for Excellent Customer Service

September 29 October 2

ANNUAL CONFERENCE

2014 Annual Conference and Exhibitor Showcase, Palm Springs

For complete program descriptions and information about registration and accommodations, visit us online at www.csda.net or call CSDA at (877) 924-2732.

Bythe

Numb3rs Palm Springs Cemetery District removed grass and annual flowers from 1,750 feet of curbside and replaced it with desert-friendly plants and a drip irrigation system to conserve water.

CSDA NEWS

Special District Leaders Gather for General Manager Leadership Summit Over 160 special district general managers and emerging leaders gathered in North Lake Tahoe this June to take part in the two-day General Manager Leadership Summit. Attendees benefitted from John Spence’s lively opening keynote presentation “Awesomely Simple,” covering the six key strategies for achieving excellence in your district. Breakout sessions that were tailored to the general manager position included: Crafting and Using Killer Key Message, Really Bad in a Good Way: Performance Evaluations, Employee Discipline and Effective Documentation, Crisis Mode: Practical Advice for Handling Board Disputes and more!

Attendees were able to network one on one and learn more about a variety of services for special districts from sponsors and tabletop exhibitors, including: Bank of the West, Burke, Williams Sorensen, LLP, BHI Management Consulting, California CAD Solutions, California Special Districts Alliance, California Special Districts Finance Corporation, Contractor Compliance and Monitoring, Inc., Digital Deployment, ESRI, Liebert Cassidy Whitmore, McMurchie Law, Meyers Nave, Mejorando Group, Open Spatial, PARS, Special District Risk Management Authority, Special District Leadership Foundation, Sunkay Associates, U.S. Communities and Wells Fargo.

Next year’s General Manager Leadership Summit heads back to Southern California at the Hyatt Regency Newport Beach, July 12 – 14, 2015. Make plans now to attend this one-of-a-kind professional development event!

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District Snapshots Western Municipal Water District

PHOTOS: Western’s signature event, Earth Night in the Garden, celebrates water efficiency and the environment. The family friendly event received top honors in the California Association of Public Information Official’s Dollar Stretcher category, which honors successful projects and programs that are developed with an emphasis on low costs.

Earth Night in the Garden also received a second place Award of Distinction in the Community and Special Events category.

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CSDA Membership Delivers More.

CSDA is proud of our ability to provide strong, respected representation of special districts at the state capitol.

We’re happy to bring quality education programs to your board members and staff. And we’re delighted to be the association you trust to get timely, valuable information to your inbox as well as to your mailbox.

Avantpage – Translation and interpretation services

But did you know your membership in CSDA can deliver even more to keep your agency running efficiently and effectively? We are constantly on the lookout to identify and partner with businesses that have a reputation for top-quality services, products and customer support.

These businesses have agreed to offer their services tailored to CSDA members. From pooled investment options to utility cost audits and more, CSDA’s ValueAdded Benefits deliver cost-effective solutions to meet your agency’s needs now and in the future.

California CAD Solutions – Digital mapping solutions

It’s just one more way CSDA membership delivers more.

Call Member Services at 877.924.2732 for information on any of these services:

Bank of the West – CSDA branded purchasing card program designed for special districts CalChamber – HR compliance products and services

CalTRUST – Pooled investment accounts eCivis – Grant research and management system Employee Relations – Employment background investigations, drug testing and employee hotline services PARS – Special Districts GASB 45 Trust Program Statewide Travel Program – Discounted airfares, car rentals and other travel services U.S. Communities -–Discounted purchasing forum for office supplies, technology products and more

CSDA members have access to exclusive programs delivered by our California Special Districts Alliance Partners: • CSDA Finance Corporation – visit www.csdafinance.net for tax-exempt municipal financing • Special District Risk Management Authority (SDRMA) – visit www.sdrma.org for cost-effective Workers’ Compensation, Property & Liability and Health Coverages

California Special District – July-August 2014

[A three part series]

Debuting the networks bay area Network

Mendocino 49

Lake 26

Colusa 24

Did you know?

Y

X

Yolo 42 Sonoma 48

Napa 11 Solano 26

Marin 36

Z

Contra Costa 45

San Francisco 1

Alameda 18

Network Delegates Vincent Ferrante Moss Landing Harbor District “As an elected official for Moss Landing Harbor District Board of Harbor Commissioners, elected in 2003, I aspire to improve and find best-practices to serve my district and all special districts. I currently serve the CSDA Board of Directors as board secretary. In addition, I chair the Alliance Executive Council and Professional Development Committee, X and am a member of the Fiscal and Member Services Committees.”

Y

Z

Sherry M. Sterrett Pleasant Hill Recreation and Park District “I serve as a trustee to the Pleasant Hill Recreation and Park District. Prior to that, I served on the Mt. Diablo School Board and the Pleasant Hill City Council. I am active with the Contra Costa County Chapter of CSDA. I have served two terms as president of the CSDA Board, and currently serve as vice-chair to the Education Committee. I look forward to hearing from you so that together we can serve special districts.”

Stanley Caldwell Mt. View Sanitary District “I enjoy my retirement time committed to serving as board member of Mt. View Sanitary District, and as my district’s representative to the LAFCo in Contra Costa County and the Contra Costa Special Districts Association (CCSDA). I serve as the CCSDA Member at Large and the newsletter editor. My service also includes CSDA Executive Committee as past-president, and several committees, including the Member Services Committees. and Professional Development Committees.”

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CSDA Affiliate Chapter - Alameda County Special Districts Association - Contra Costa Special Districts Association Special Districts 320 total independent special districts

Bay ARea Network Districts Air Cemetery CSD Drainage Fire Flood/WCD Healthcare Harbor Irrigation Improvement Mosquito Police/CSD Reclamation RCD Resort Recreation & Park Sanitation Transit PUD Water Wastewater

2 32 33 2 71 3 12 1 5 1 7 1 34 15 1 15 25 5 7 47 1

More about the networks!

As you may already have heard, CSDA’s regions are becoming networks. Designed by local leaders like you, each network links you to three delegates. Serving as your local delegate, the CSDA board members are your local point persons to facilitate and bring CSDA resources to aid in local challenges. We are proud to debut the Bay Area Network and Central Network. With this program, local leaders like you will have even more opportunities to coordinate and stay up-to-date on key local and state issues. Our goal is for District NetWorks to inspire and catalyze local action.

Get to know your District NetWorks delegates and get access to resources to meet your district’s needs. Learn more by visiting www.csda.net and clicking “About CSDA.”

Central Network

Mono

22

Mariposa

4

Madera

Merced

13

40

Did you know?

Y

X Fresno

80

Inyo

Kings

Tulare

26

81

24

Special Districts 374 total independent special districts

Z Kern

86

Network Delegates Vacant

X

Y

Z

Steve Perez Rosamond Community Services “I have spent the past 20 years representing local government in many capacities and have developed an acute understanding of the types of issues affecting special districts. I pride myself in being involved with my community since I was 16 years old—when I became my community’s youngest volunteer firefighter. My commitment to public service led me to serve 26 years with the Kern County Sheriff’s Office, and then to serve as a county supervisor for eight years. I am currently general manager of the Rosamond Community Services District.”

Tim Ruiz East Niles Community Services District “For over ten years I have served the East Niles Community Services District as general manager, overseeing the district’s public water and sewer system. I am a licensed civil engineer and certified Water Distribution and Water Treatment operator. Prior to my current occupation, I was an engineering consultant working on various water and sewer infrastructure projects. This experience provided valuable insight to the needs of various special districts and an understanding of the challenges districts encounter. I believe in providing resources to aid local control, continuing education programs for boards and grassroots tools for all special districts.”

California Special District – July-August 2014

sierra Network Districts Air Air Quality Cemetery Conservation CSD Fire Flood Control / Drainage PUD Healthcare Irrigation Library Levee Mosquito Memorial Police Reclamation RCD Recreation & Park Sanitary Transit Water

3 2 42 1 66 20 7 13 22 32 1 1 19 15 2 5 23 10 5 2 83

update

As the third edition in a year-long series featuring CSDA’s long-range policy priorities, this article focuses on revenue, finance and taxation and its impact on special districts.

CSDA’s policy goal aims to ensure adequate funding for special districts’ safe and reliable core local service delivery.

Protect special districts’ resources from the shift or diversion of revenues without the consent of the affected districts.

Promote the financial independence of special districts and afford them access to revenue opportunities equal to that of other types of local agencies.

Protecting $500 Million in Restored Property Taxes Prior to their dissolution in 2011, redevelopment agencies (RDAs) annually diverted over $500 million dollars in property taxes away from special districts. As former RDAs’ enforceable obligations are paid off, the residual revenue is being returned to the core services from which it was diverted.

The amount returned to special districts since the initial dissolution of RDAs totals $310 million (out of the nearly $4 billion returned to all affected local agencies). Now, special districts must protect this restored revenue by prudently investing it in infrastructure and defending against an onslaught of attempts to resurrect property tax diversions.

Working to preempt efforts to renew property tax diversions away from special districts, CSDA brought together a working group in 2013 that developed a RDA Internal Memorandum for CSDA members regarding the threats and opportunities surrounding the restoration of property taxes previously diverted by RDAs. CSDA has also successfully lobbied against multiple legislative measures that would reinstitute forms of property tax diversions, such as Assembly Bills 690 and 741 from last year.

Special Districts They all may be called Special Districts, but your specific needs are as diverse as California itself. With nearly 80 years of experience providing responsive and cost-effective legal services, Burke, Williams and Sorensen, LLP is dedicated to supporting the unique needs of your Special District.

no two are the same

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Law Offices Throughout California

800.333.4297 | bwslaw.com

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Many special districts continue to slowly climb out of the economic recession and overcome the loss of revenues while still maintaining satisfactory service levels.

This year, CSDA is focused on opposing an initiative to bring back a bigger, costlier version of RDA, called JEDI, as well as legislation that would authorize RDA successor agencies to spend 2011 “Mardi Gras” bonds, Senate Bill 1129 and Assembly Bill 2493. CSDA is also supporting passage of new local economic development proposals offering local agencies accountable, collaborative tools that prohibit property tax diversions without consent.

Special Districts Prudently Investing Restored Property Taxes Prudently investing restored property taxes in sorely needed core local infrastructure speaks louder than any words CSDA can use in its lobbying efforts. Special districts receiving restored property tax revenue are able to deliver immediate, recognizable value to the community through one-time capital infrastructure investments important to job creation and the needs of their local economies. Many have focused on sustainability and freeing up long-term budget capacity by investing in energy and water conservation measures and shifting to more renewable resources.

If your special district is receiving restored property taxes and you have yet to read CSDA’s RDA Internal Memorandum, please contact CSDA today and consider reviewing how your district invests this revenue. CSDA has also asked members to respond to a survey found on the CSDA Grassroots Action Center, so that CSDA can better protect special district revenue.

JEDI Resurrection of Local Property Tax Diversions Now eligible for signature gathering, “JEDI” is a statewide initiative proposal to establish a bigger, costlier version of RDAs throughout California. In order to qualify for the November, 2016 ballot, proponents must submit over 500,000 signatures by July 19, 2014.

CSDA has taken an oppose position on this proposal that would likely take over $6 billion directly from education, police, fire protection, water, parks and other core local services and infrastructure. CSDA members can find more information, including a fact sheet, online at the CSDA Grassroots Action Center.

2011 RDA “Mardi Gras” Bonds SB 1129 and AB 2493 seek to allow up to 39 RDA successor agencies of dissolved RDAs to spend up to $750 million in bond proceeds on projects that were not under contract before the June 28, 2011 RDA dissolution. Unfortunately, this would ultimately cost schools, counties, cities and special districts approximately $2 billion.

The cost of 2011 RDA bonds is particularly high due to what has been called the “Mardi Gras” reaction by former RDAs, where redevelopment officials responded to the Governor’s January 2011 proposal to eliminate RDAs by taking on bonded indebtedness at any cost. According to the Legislative Analyst’s Office, “RDAs issued more tax allocation bonds with interest rates exceeding 8 California Special District – July-August 2014

percent during the first six months of 2011 than they had in the previous ten years.”

While the intent of legislation to fund local projects in successor agencies is noteworthy, it is important to consider that it is not without cost. Each dollar in added debt repayment would be diverted away from the infrastructure and core local services provided by affected taxing entities.

An Accountable and Collaborative Local Economic Development Approach CSDA supports local economic development, and supports the establishment of new tools for local agencies to collaborate to address employment, crime, affordable housing and environmental conditions.

First and foremost, new economic development tools must require accountability and prohibit property tax diversions without the consent of affected local agencies. We should not create new funding gaps and future infrastructure deficiencies in our pursuit of addressing current gaps and deficiencies. Secondly, these tools should empower all local agencies responsible for core services, including special districts, with the opportunity to meaningfully participate in their usage.

AB 2280 meets these important criteria, offering local agencies a new powerful tool, called a Community Revitalization Investment Authority that allows consenting local agencies to invest property tax increment and other available funding in infrastructure and economic development projects and programs. CSDA supports this bill, and supports-in-concept, a proposal by Governor Jerry Brown that would create Enhanced Infrastructure Financing Districts.

Take Action: 1. Visit the Grassroots Action Center for the latest developments on Governance and Accountability policy issues at www.csda.net/grassroots.

2. Read CSDA’s RDA Internal Memorandum and review how your district invests property tax revenue. Contact CSDA for a copy today.

3. Complete CSDA’s RDA Survey at www.csda.net/grassroots.

4. Download “JEDI” Fact Sheet at www.csda.net/grassroots.

5. Support AB 2280; download a sample support letter at www.csda.net/grassroots.

?

Ask theExperts When is it necessary to report gifts and meals to the FPPC? What are the top rules board members need to know?

The Political Reform Act of 1974, enforced by the Fair Political Practices Commission (“FPPC”) restricts the ability of public officials from accepting gifts, meals and other perquisites of office. Adopted in the wake of Watergate, and continuously updated, public officials who fail to abide by the FPPC regulations by not reporting gifts and meals, when required, may find themselves stepping into a minefield of penalties and fines.

Local elected officials who file Form 700 are prohibited from receiving gifts totaling more than $440 in a calendar year from certain sources. A “gift” is any payment or other benefit provided that confers a personal benefit for which the official does not provide payment or services of equal or greater value. The general rule for determining the value of a gift is to apply the fair market value at the time the gift is received.

Do you have a question for any of our CSDA experts?

The limitation on accepting gifts from certain sources does not prevent acceptance of a birthday gift from a childhood friend, but would prevent a local official from accepting a dinner for two and a bottle of wine from the local developer who is applying for approvals from the official’s district. Essentially, if the donor has no established relationship with the official or lobbies, or does business in front of the agency, a local official should avoid acceptance of gifts exceeding $440 from the donor.

If so, send your question to Nicole Dunn, editor, at nicoled@csda.net.

C

SD

A • 201

DON

M I S’ T HIG HLIG S HT

Meals pose a unique problem to public officials; keeping track of meals, and the portion of the meal consumed by each individual requires attention to detail. For example, if a local elected official attends dinner with six people from Development Company A, the local official’s portion of the dinner is his/her share. If the bill totals $1,400, but the local official had a Caesar salad and glass of wine, his/her reportable interest would only be the value of his/her dinner, including tax and tip. While the concept seems simple enough, and the local official may have only received a $100 gift during this meal, the gift limit is cumulative for the calendar year. Furthermore, it is often times easier to split the value of the meal equally which will result in an improper meal valuation.

At first glance it appears difficult to exceed the $440 gift limit, but the reality is that each gift counts and each dollar matters. If a local official exceeds the gift limit of $440, the penalty is usually a fine left to the discretion of the FPPC. As with all rules, there are exceptions on both valuation and the limits on gifts. Wedding gifts are governed under separate rules, and bona fide acts of kindness have no value under the gift rules. Local officials should be cautious of the value of gifts and the donor of gifts in order to avoid tripping over the gift rules. When it doubt, calling the FPPC for guidance on whether to accept a gift and how to report a gift is always a sound option to the cautious local official.

Krysten E. Hicks is an associate with Meyers Nave. She works with local governments including special districts and serves on the CSDA legislative committee. She can be reached at 916-556-1531.

4

Conference Highlight: Tuesday, September 30, 3:30 – 4:30 p.m.

Board Member Compensation Rules: Salaries, Healthcare, PERS & Expense Reimbursements

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MOVERS & SHAKERS Recognizing Imperial Irrigation District’s exceptional veteran hiring practices, the Employment Development Department and its local Veterans Employment Committee jointly named the district veteran employer of the year. The district will also receive state recognition from the California Employer Advisory Council.

Jesse Lawson, general manager of Indian Valley Community Services District, has been recognized as Wastewater Operator of the Year by the California Rural Water Association.

George Ouzounian has been named Trustee of the Year by the California Association of Public Cemeteries.

Ouzounian serves as trustee for the Visalia Cemetery District and has been a trustee since 2008.

William Hasencamp has been appointed to the Colorado River Basin Salinity Control Forum and the Colorado River Basin Salinity Control Advisory Council. Hasencamp serves as manager of Colorado River resources at the Metropolitan Water District of Southern California.

Beverli A. Marshall, business services manager with West County Wastewater District, has been appointed to the Mt. View Sanitary District board. Marshall replaces Randy Williams, who retired.

The Placer County Water Agency won a statewide award from the California Municipal Utilities Association for an innovative program that uses advanced geographic information systems (GIS) mapping technology to identify high-use water areas and notify customers of their usage.

The Mosquito and Vector Management District of Santa Barbara County announces the appointment of David Chang as general manager. Chang brings 33 years of pest management and regulatory compliance experience to the district.

California Special District – July-August 2014

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!

Western Municipal Water District received four awards from the California Association of Public Information Officials (CAPIO). Western’s signature event, Earth Night in the Garden, received top honors in CAPIO’s Dollar Stretcher category, which honors successful projects and programs that are developed with an emphasis on low costs.

Earth Night in the Garden also received a second place Award of Distinction in the Community and Special Events category.

In addition, the District’s On Tap customer newsletter received a first place Award of Excellence in the newsletter category, and The Splash employee newsletter received a third place Award of Merit in the online employee newsletter category.

The Government Finance Officers Association notified Nipomo Community Services District that the district’s annual financial report for 2012-2013 qualified for the Association’s Achievement of Excellence in Financial Reporting. The association also specifically recognized district finance director and 22-year Lisa Bognuda district employee, Lisa Bognuda with an Award of Financial Reporting Achievement for her instrumental role in the district achieving a level of accounting excellence.

Bythe

Numb3rs 2 billion gallons of wastewater is recycled by the Coachella Valley Water District each year.

In Brief Kids Fishing Derby Reels in Families

New Technology Increases Water Measurement Accuracy Due to new state regulations, Turlock Irrigation District has begun fitting its canal gates with high-tech devices that constantly measure water flow. The devices will help the district get more accurate readings on how much water is flowing through the gates. Older devices took one measurement during irrigation and could be off by as much as 20 percent. The technology upgrade is due to the Water Conservation Act of 2009, which allows a margin of error of up to 12 percent for existing meters and five percent if certified by a laboratory or 10 percent if certified elsewhere. TID’s new meters measures with a margin of error of just 2.5 percent. Each gate meter uses 32 ultrasonic beams to measure the water going through the opening. Other area water districts, including Modesto Irrigation District and Oakdale Irrigation District, will have to upgrade their systems too, and are currently evaluating the costs.

This summer, Paradise Recreation and Park District hosted its annual Kids Fishing Derby at its aquatic park. The derby gives children – from preschool age to the age of 15 – the chance to catch their own fish and win prizes. The small pond located at the center was stocked with over 1,000 pounds of fish, provided by donations from the Butte County Fish and Game Commission and private donors. The event was well attended, with the pond lined by youths throwing their lines in the water hoping to get a bite.

Park District Receives Land Donation Easy Bay Recreation and Park District recently received a large land donation – approximately 300 acres – from a local family. The Patterson family, long-time Bay Area residents – donated the last piece of their land holdings to the park district. The gift is the most valuable piece of property acquired by the district in its history and is a beautiful area full of willows and pickleweed near the San Francisco Bay. The deal took over 14 years to complete due to the various parties – developers, neighbors, family members, etc. – who had interest in the land. Ultimately, the donation worked out and now surrounding communities can look forward to trails, hiking paths, educational panels and an organic farm on the open space.

Library Features Aviation Section Thanks to Grant Thanks to a grant provided by the Tahoe Truckee Airport District, the Truckee Library now features a section of children’s books related to aviation and space. The library section features fiction and non-fiction books praised by the Smithsonian’s Air and Space magazine as some of the best children’s books about flight and space exploration. The suggested age range of the books is three to 14.

Topics range from mouse astronauts and space aliens to the first black paratroopers and individuals who remotely operate rovers on Mars.

Each of the 33 books purchased through the airport district grant includes a donation bookplate indicating the book was made available using funds from the district.

Sources: Costa Mesa Sanitary District, Cucamonga Valley Water District, Modesto Bee, Paradise Post, San Francisco Gate, Santa Clara County Library District, Tahoe Daily Tribune

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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.

District Receives Grant to Enhance Children’s Area

Internship Provides Real-Life Learning for Students

The Santa Clara County Library District (SCCLD) was awarded an Early Learning with Families (ELF 2.0) grant for its efforts to further promote play in early education and enhance library services to the very youngest of its community members. The $6,600 ELF 2.0 grant will be used to purchase supplies and equipment for each of the eight SCCLD community libraries to support the development of literacy rich environments.

“We welcome additional funding for these important early childhood programs that complement our library services,” said President Mike Wasserman, County of Santa Clara Board of Supervisors and Delegate for the County Library District Joint Powers Authority.

“Focusing on early education and development is an investment that will make our communities stronger.” Foundations for these developmental milestones are established during the first five years of life. Success and growth in these areas are closely linked to a child’s earliest experiences with words, books and stories.

The brain of a child between zero and five is continuously forming new neural connections – as many as 700 per second, according to the Early Learning with Families California initiative (ELF 2.0). These connections form the foundation for early learning, readiness for school and ultimately increase their potential for educational and career success in later years.

The Cucamonga Valley Water District (CVWD) has embarked on a unique partnership with San Bernardino Valley College (SBVC). Together, the two entities have initiated a student intern program.

The non-paid internship program earns students one school credit for each 60 hours volunteered with CVWD. Each internship session lasts 18-weeks and enables participants to learn about the various aspects of the water utility industry. The CVWD Internship Program was developed as an applied field training course to augment the Water Supply Technology Program offered at SBVC. Interns use the classroom knowledge they gain at SBVC and apply it to their internship at CVWD, rotating through various divisions including Water Maintenance, Sewer Maintenance, Field Service, Engineering, Production, and Treatment.

“The children’s areas are among the busiest spaces in our libraries. Story times are often filled to capacity and our special programs earmarked towards the very youngest child are always extremely well received,” said Gail Mason, SCCLD library services manager for collection development and reading services.

“Our libraries are helping parents and caregivers prepare their children for the future by offering high-quality, early learning experiences through a variety of activities.”

California Special District – July-August 2014

The program will be offered twice a year.

Many participants work full-time elsewhere and are looking to enter the water industry.

This program affords them the opportunity to earn their internship hours through flexible scheduling, including weekdays, weekends, evenings, and days off, while still working at their current job. “I have been attending SBVC for over a year, taking classes through the Water Supply Technology Program and learning everything I can about the water industry,” commented David Carraway, a second year student at SBVC. “Having the opportunity to work with CVWD in the field, with employees who have been on the job for 10, 20, or 30 years, has allowed me put into action what I have learned in the classroom. This internship has really helped me connect my classroom knowledge with the real-world environment.”

Costa Mesa Sanitary District Celebrates 70 Years of Service Costa Mesa Sanitary District (CMSD) recently celebrated 70 years of service. CMSD was formed in 1944 to address concerns with a growing population and the need for landfill access and waste disposal services for the increasing size of the community. Seventy years later, the district provides trash and wastewater collection services for a population of approximately 116,700 residents of Costa Mesa and parts of Newport Beach.

In addition, the district offers programs that improve the quality of life for residents and protect the environment. The district even has a GoCMSD Smart Phone App that allows residents to connect directly with the district and report any issues.

The speed of trust

Interview with Stephen M.R. Covey Stephen M. R. Covey knows leadership.

He is a cofounder of CoveyLink and the FranklinCovey Global Speed of Trust Practice.

He tours the country speaking on leadership, trust and ethics. He is the former CEO of Covey Leadership Center, which, under his stewardship, became the largest leadership development company in the world. And he helped lead the strategy that propelled his father’s book, Dr. Stephen R. Covey’s The 7 Habits of Highly Effective People, to be one of the two most influential business books of the twentieth century, according to CEO Magazine.

What Covey also knows is the importance of trust in successful leadership. According to Covey, without a solid foundation of trust, strong leadership isn’t possible. In fact, according to Covey, nothing is as fast as the speed of trust in leading an organization to success.

California Special District asked Stephen M. R. Covey why trust is so important and how special districts – and those leading special districts – can cultivate trust with their own staff as well as the public.

How important is the role of trust in being a successful leader?

Stephen M.R. Covey

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It’s absolutely vital. Look at this way, the very first job of any leaders is to inspire trust. The second job of any leader is to extend trust – to give it. Trust is really at the heart of being a successful leader. I make the argument that, today, the ability to establish, grow, extend and

You can measure trust through anonymous surveying and that can tell you a whole lot, but it’s deeply important to measure not just the trust levels but also the behaviors and credibility components that build or destroy the trust.

sometimes, where needed, restore trust with all stakeholders, is the number one competency of leadership needed today. Why? Because trust affects every other competency. When you start with trust, your ability to do everything else goes up. You can do it better, faster, for less cost, with greater energy, and greater happiness and fun along the way. When there’s no trust, everything will be taxed; it will take you longer, it will cost you more to get anything done and with less energy, less commitment, less fun, joy and happiness. So trust is really vital to effective leadership. Leadership expert Warren Bennis once said, “Leadership without mutual trust is a contradiction in terms.” We are not leading if we aren’t creating trust.

Can trust be quantitatively measured?

In fact it can. Think about it. Trust is a perception.

And you can measure perception. You can do it with anonymous surveys. The key is that we get not only a measurement of the level of trust that exists, but also why it is what it is. It’s one thing to know there is a low-trust, medium-trust or hightrust culture, it’s another thing to know why and understand: is it a matter of character? A matter of competence? Is it our behavior? You can measure trust through anonymous surveying and that can tell you a whole lot, but it’s deeply important to measure not just the trust levels but also the behaviors and credibility components that build or destroy the trust. So that way we know not just what the level of trust is, but what we can do to increase the trust.

For special districts, as public agencies, the public trust is imperative. What are ways agencies can earn and demonstrate they are worthy of trust?

What profit is to the private sector, trust is to the public sector. It’s your deliverable. That trust means not just that you’re honest, but also that you deliver.

There are two halves to this: you have to have character and you have to have competence. If you have character but no competence—if you’re honest but don’t deliver—you won’t sustain the trust. If you have competence but no character— you deliver but you run people over in the process—you won’t sustain the trust. continued on page 20

How can leaders get results in a way that inspires trust?

How we do what we do makes all the difference. And the means by which we do them are critical. It’s important to get results, but if you get results in a way that diminishes trust—by cutting corners or being unethical or running people over in the process or destroying relationships—then your ability to get results the next time goes down.

And there’s always a next time for leaders. But if you get results in a way that inspires trust by your behavior, then your ability to get results the next time has just gone up. So how you do what you do makes all the difference, and the key to that is behavior. Our behavior is so vital, and I really believe that how we achieve the results is as important as the results themselves.

“The best way to find yourself is to lose yourself in the service of others.” - Mohandas Gandhi You serve others and LCW is honored to serve you.

Proudly representing California’s Special Districts for nearly 35 years in all areas of: Employment Law, Labor Relations, Contracts, Construction, Litigation, Retirement, Wage & Hour and Preventative Training

To learn how we can help your District, visit: www.lcwlegal.com CalPublicAgencyLaborEmploymentBlog.com |

California Special District – July-August 2014

@LCWLegal

Stephen M.R. Covey [continued] How agencies can demonstrate they are worthy of the trust is by starting with their own credibility. There is a character side of credibility and a competence side. In fact, I go one level down and say there are four cores of credibility—two of which belong to character, two of which belong to competence.

I’ll use the metaphor of a tree. The first core belongs to credibility, and that is integrity. Integrity is the roots of a tree—the starting point. The second core of credibility is intent. That refers to your motive and agenda. If your motive cares about people and those you are working with as a leader, and your agenda is seeking mutual benefit—win/win—you’ll build the trust. But if you’re self-serving, you’re going to have a hard time staying trusted. The intent is the trunk of the tree.

The next two cores of credibility flow from competence.

Capability is the third core—the branches of the tree.

Capability is referring to your talents, your abilities, your skills and expertise, and your knowledge. The key question here is, are you relevant? If you are, you’ll be trusted. If you lose that relevancy, you’ll lose the trust— the trust of your own people inside the special district or the trust of the public at large. Finally, the fourth core of credibility is results—the fruit of the tree. That is your performance, past and present. Why does that matter? Because people project upon you your future performance based on what they’ve seen. And when they see a track record of results, that gives them confidence.

So those four cores of credibility give people a great foundation upon which they know that the agency can be trusted.

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Conference Highlight: Tuesday, September 30 - 9:00 – 10:45 a.m.

Opening Keynote: Leading at the Speed of Trust Stephen M.R. Covey

You teach that trust is a hard-edged economic driver. Why? Simply because trust always affects two measurable outcomes: speed and cost. Here’s the formula: when the trust goes down in any organization, you will find the speed will go down with it. Everything will take longer to do. The cost will go up. Why? Because of all the steps you have to take to compensate for that lack of trust. Whether it be verifying, validating, dealing with redundancy, excessive policies and regulations that are put in place in lower trust environments, etc. This is what we call a low-trust tax. Thankfully, the converse is equally true. When trust goes up in the relationship, the speed goes up and the cost comes down. That is a hightrust dividend. And those economics of trust play out at every level—in relationships, on teams, in organizations, and with the public.

And that is what I’m referring to when I refer to the Speed of Trust. There are economics to trust.

Economics are vital not just for for-profit business, but for special districts, other government entities, education and so on, because they all have budgets and a need for speed and cost.

How can a person or an organization improve at engendering trust?

I’ve just given the foundation, which is to start with your credibility. Those four cores of credibility are a great starting point, for an individual leader and a team. The second thing I would add would be our behavior. Building on top of our credibility, add behavior. Behavior is how we do what we do.

How we go about it. My book, The Speed of Trust, identifies 13 behaviors that are common in hightrust leaders, teams and organizations. These are straightforward behaviors such as “talk straight,” “create transparency,” “clarify expectations,” “practice accountability,” “listen first,” and “extend trust.”

Too often we do the opposite of these behaviors— instead of talking straight, someone might lie—or, more often, we do the counterfeit. Instead of talking straight, people might spin. The counterfeit behavior so often trips us up. Behave in a way that grows trust.

Focusing on these 13 high-leverage behaviors will help a leader do that.

So credibility is the starting point, add to it behavior— in particularly extending trust. It’s ironic that one of the best ways to create trust is simply to give trust. The reason that’s so is that there’s a reciprocity to trust.

When you give it, people receive it and they tend to return it. But when you withhold it, they withhold it.

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The Speed of Trust One reason why in many organizations today employers don’t trust management, is simply because the management doesn’t trust the employees. The same thing can happen with the public.

To quote Abraham Lincoln: “The people, when rightly and fully trusted, will return the trust.”

What is the The Speed of Trust Transformation Process™?

That is a process of saying how can we use these ideas—the speed of trust, and the importance of credibility and behavior— and help leaders, teams and organizations actually get good at this so they can build a high-trust culture.

With a high-trust culture, you will be able to get better results faster at less cost with greater energy and more fun along the way. So the process is basically giving a language for trust so people can talk about it, a framework for trust so they can think about it, and a process for actually applying and implementing and getting good at this.

The Speed of Trust Transformation Process™ is, rather than just giving a speech or a training—which is important but by itself insufficient—creating a process to help people to implement, apply, learn, grow, improve, be accountable and move the needle on creating trust. It’s making trust a process, not just an event. And we lay out a language, a framework and a process for doing that.

In The Speed of Trust, Stephen M. R. Covey articulates why trust has become the key leadership competency of the new global economy. He informs readers how to inspire lasting trust in their personal and professional relationships, and in so doing, to create unparalleled success and sustainable prosperity in every dimension of life. He shows business, government, and education leaders how to quickly and permanently gain the trust of their clients, coworkers, partners, and constituents. Covey convincingly makes the case that trust is a measurable accelerator to performance and that when trust goes up, speed also goes up while cost comes down, producing what Covey calls a “trust dividend.”

Communicate on Point

What will attendees learn from you at your keynote session “Leading at the Speed of Trust,” at the upcoming CSDA Annual Conference and Exhibitor Showcase?

Persist through challenge

I hope to accomplish three things. First, I want to make an economic case for trust. Show how trust is not just a nice-tohave social virtue, but it’s really a hard-edged economic driver.

Especially for not for profits because these economics are so vital in a world in which we’re all being required to do more for less. Second, I’ll make a leadership case for trust and show how trust is really the #1 competency of leadership needed today.

Why? Because it affects every other competency. And I’ll show how if you get good at trust as a leader, it will make you better at everything else that you need to do.

Commit to Excellence

Finally, I’m going to show how trust is a learnable competency.

It’s something we can learn, get better at, improve and move the needle on. The ability to create trust, grow it, expand it and in some cases even restore it when it’s been lost. We’ll discuss the importance of credibility and behavior as the building blocks for how leaders, teams and organizations can grow trust.

I want people to walk out not just with new insights on trust but also knowing what they can do as a leader to build and increase trust.

California Special District – July-August 2014

Persuade with Integrity

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Training your memory:

What I’ve learned from english philosophers, wild parties and dead athletes

By Bob Gray, CSP, HoF

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easily remember the names of people, the main points of a presentation, and many other items that you may currently think are impossible to remember. Developing your memory’s power isn’t difficult to do, but it does require consistent practice. On October 1 in Palm Springs, I’ll show you how.

Bacon’s words ring true today, over 500 years after they were written. But today, knowledge without application is merely random knowledge without a purpose.

Knowledge coupled with application, is powerful stuff indeed. You have an untapped memory with the ability to retain far more knowledge than you ever imagined. And training your memory enhances your power and success – professionally and personally.

I have used the power of memory training since I was a seven year-old kid, when I discovered my first memory technique in a magic book. It blew me away that within minutes, I was able to memorize a list of 20 random objects. With a little ingenuity, I adapted the systems to help me in school and have continually used them, culminating in a 30-year career helping others to work more effectively and efficiently through the powers of a trained memory.

Most people agree that a trained memory can make us more successful. But knowing this fact renders you no power…unless you act on that knowledge. If you apply yourself to learning memory systems, the mental power you attain has an enduring effect in your career and will spill over into all areas of your life. You will be better equipped to

I first capitalized on this power when I worked in the fitness industry. In the mid-1980s, I spent five years managing a squash and fitness club. Upon entering this industry, I decided I would not let the chance to relate better with all my members slip through my fingers. I knew that using memory systems could help.

n 1597, Sir Francis Bacon wrote, “for also knowledge itself is power,” more commonly paraphrased today as “knowledge is power.”

I was a seven year-old kid, when I discovered my first memory technique in a magic book. It blew me away that within minutes, I was able to memorize a list of 20 random objects. With a little ingenuity, I adapted the systems to help me in school and have continually used them, culminating in a 30-year career helping others to work more effectively and efficiently through the powers of a trained memory.

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One of the things making the fitness industry unique among service industries is the amount of personal interaction between members and staff. Unlike the automobile industry, where a customer comes into contact with the business once every few years, or the fast food trade, where people make frequent, but rapid, contact with an all but anonymous server behind the counter, fitness clubs offer room for continuous and developing exchanges between members and employees. At their best, these relationships can become lasting friendships.

When interaction is at such a high level, personal knowledge and sincerity can be a club representative’s greatest ally.

Being able to talk casually about the specifics of the business and socially about the lives and general interests of the members help build customer satisfaction, referrals, trust and retention.

Within a short while, not only was I able to recall the names of every member to whom I had sold a membership, but I remembered many personal details: their spouses’ and children’s names, their favorite hobbies, sports teams and the fitness goals they had set. Any time I ran into them at the club, or even on the street, I had a wealth of material to draw on. My relationships grew increasingly stronger because I was never at a loss for something personal and authentic to say when I bumped into one of them.

When interaction is at such a high level, personal knowledge and sincerity can be a club representative’s greatest ally.

Being able to talk casually about the specifics of the business and socially about the lives and general interests of the members help build customer satisfaction, referrals, trust and retention.

techniques, which allow anyone in any business to work more effectively.

The techniques I used in the fitness industry are the same techniques I will share with you on October 1 in Palm Springs. Coincidentally they were invented for another group of fitness conscious people a long time ago. The results, however, were much more gory.

In ancient Greece lived a poet by the name of Simonides. Poets back then were like professional speakers today.

They were usually hired to provide the after dinner entertainment mixed with plenty of good advice. On one occasion Simonides was hired to entertain at a party given for a wrestler. The wrestler had just won big at the Olympics and was throwing the ancient equivalent of an athletics banquet to celebrate.

After his stint at the lectern, and as the party started to degenerate, Simonides got a call to the door. There were a couple of guys who wanted to talk to him. No sooner had he stepped

I began teaching the memory techniques I was using to other members of my sales team. In a year, client retention went up 13 percent. I shared my techniques at a fitness conference and that was where my speaking career began. It’s these same systems and

California Special District – July-August 2014

continued on page 24

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Training your memory [continued from page 23] outside, than the ceiling collapsed, killing everyone inside. While traumatic, another problem still remained. The bodies had been so mutilated by the disaster, that no one could identify who had been there. Simonides, however, had memorized his audience, and by revisiting the spots where they sat, (place memory) was able to recall all of the attendees. This got him thinking. If he could use a system for memorizing dead athletes, why not other things? Maybe even living athletes!

Over the centuries, newer and more advanced systems would develop and be adapted for more modern needs. Today, in most industries,

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businesses and associations, as with CSDA, direct contact with constituents, staff and board members is the nature of doing business. Without a firm hold on the basics, such as financial data, laws and regulations, business models, and most importantly, the people with whom you come in contact, vital time, trust and efficiency are lost.

important as our lives become more inundated with information.

Memory, like your physical body, needs proper training and a regular workout to operate at peak efficiency. The ancient Greeks, who invented athletics, told us that.

Sir Francis Bacon wrote about it.

It’s just as timely and powerful in 2014…and perhaps even more

Bob Gray has been delivering conference keynotes and memory development workshops for almost 30 years. He is a C.S.P. (Certified Speaking Professional); the highest earned designation in the speaking profession, a Guinness Record Holder and in 2006 was inducted into the Speaking Hall of Fame. His many TV appearances include the ABC Today Show, Ripley’s Believe It Or Not and The Steve Harvey Show.

Funny, unique and interactive in his entertaining presentations, Bob reveals the untapped potential in each of us.

His empowering systems and their many applications in the business world give participants immediate ‘walk away’ value. www.memoryedge.com

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Conference Effective PublicHighlight: Outreach

Serving Local Government and California Public Agencies for Over 30 Years.

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Wednesday, October 1 Practical Strategic 9:00 –Planning 10:45 a.m.

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Conference Keynote: Bob Gray

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BUSINESS AFFILIATE special acknowledgements

Atkinson, Andelson, Loya, Ruud & Romo Legal www.aalrr.com

HdL Coren & Cone Property tax consulting www.hdlcompanies.com

Burke, Williams & Sorensen, LLP Consulting, Legal www.bwslaw.com

Meyers Nave Legal www.meyersnave.com

California CAD Solutions, Inc. Construction, Technology www.calcad.com

PARS Benefits, Retirements www.pars.org

CPS HR Consulting Consulting, HR, Recruiting, Training www.cps.ca.gov

Special District Risk Management Authority Risk management coverages www.sdrma.org

CSDA Finance Corporation Tax-exempt financing www.csdafinance.net Hanson Bridgett LLP Legal www.hansonbridgett.com

Thank you to our diamond and gold level business affiliates for their generous support.

highlight

CalTRUST Passes $2 Billion Milestone In April - Assets Up Over 33 Percent In Past Year CalTRUST, a local agency investment pool endorsed by CSDA, closed the month of April with over $2.06 billion in assets, an all-time high. Of those total assets, nearly a third are from special districts.

CalTRUST provides special districts and other local agencies with three account options: money market, short-term and medium-term. Agencies can select the account option that matches their investment timeline and cash flow needs and easily reallocate among those accounts as needs change.

The strong and steady growth in CalTRUST assets is testimony to the program’s flexibility, transparency and ease of use. It reflects the increasing recognition on the part of local agencies of CalTRUST’s impressive track record of performance and reliability.

For more information, visit www.CalTRUST.org.

California Special District – July-August 2014

[Solutions & Innovations]

What you need to know when you don’t have an HR department

By David Kahn, Tim Yeung, Renne Sloan Holtzman Sakai LLP

Small business owners in California often struggle with understanding and applying California’s confusing labyrinth of employment laws, where failure to comply can have serious consequences. Special districts often find themselves in the same position, especially smaller ones without an in-house human resources (HR) department.

In fact, special districts are in a tougher position since they have to comply with not only California’s general employment laws, but also specific ones that apply only to public entities. So how does a special district without an HR department handle these challenges? Initially, it is important to be aware of some of the common pitfalls that can trap a public employer in California.

changes to the terms and conditions of employment.

Recently, the Public Employment Relations Board, which enforces the MMBA, has been expanding the list of subjects and circumstances where bargaining with the union is required. Failure to properly bargain a subject may result in PERB ordering an agency to undo any change. For example, PERB recently held that although a decision to lay off employees is a management right, the employer must still bargain effects such as the timing of the layoff. If the employer and union cannot reach agreement on the “effects,” the parties must participate in fact-finding, according to PERB. And during the fact-finding process, PERB’s position is that the employer may not implement the layoffs. Obviously, where a layoff decision is based on an employer’s finances, the extra delay caused

by PERB’s new requirements can cause even more hardship. It’s therefore critical for special districts that are unionized to understand how to fulfill their bargaining obligations under the MMBA.

Understanding When You Have to “Meet and Confer” with the Union

Understanding “Just Cause” and “Progressive Discipline”

Special districts are subject to the Meyers-MiliasBrown Act (MMBA), which allows for the unionization of local government employees. Once there is a union in place, an employer must “meet and confer” or bargain with the union over any

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Conference Highlight: Tuesday, September 30 - 11:00 a.m. – 12:15 p.m.

What You Need to Know When You Don’t Have an HR Department

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Most employees of special districts are subject to a “merit” or “civil service” system. This means that most employees may only be disciplined for “just cause.” In addition, terminating an employee generally requires a history of “progressive discipline.” In contrast, most private sector employees are “at-will” which means they can be terminated, with some exceptions, for any reason or no reason at all. The result is that disciplining or terminating a public employee can be a long and sometimes difficult process. To successfully navigate this process, it is critical that managers understand the requirements of just cause and progressive discipline. For example, while most public employers have a requirement for an annual performance review, enforcement is often lax or non-existent.

Thus, it is not uncommon to have employees who have gone years without a performance review.

The problem with this situation is that when a performance issue arises, there may be insufficient warning to the employee of the problem. Without a history of “progressive discipline” any disciplinary action against the employee may be overturned.

HR Programs That Bring Extra Value to CSDA Membership CSDA members can take advantage of special programs and discounts offered by two popular HR resource providers. Employee Relations provides special districts and other local agencies with pre-screening employment background investigations, drug testing and employee hotline services to help reduce liability for negligent hire or negligent retention of employees. Visit www.erelations.com for more information.

CalChamber, one of the most popular HR compliance resources in the state, offers CSDA members a 10 percent discount on employee posters and other materials. To access this member benefit, visit www.calchamberstore.com and use code CSDAR at checkout.

Understanding reasonable accommodation and leave laws Perhaps the most confusing of California’s employment laws are those dealing with the duty to accommodate an employee with a disability and/or to provide the employee time off. In addition to the several California laws that are applicable, there are also federal laws. Occasionally the requirements are identical, but often they are not. Furthermore, the law often places the burden to initiate the reasonable accommodation process on the employer based on information it knows about the employee. This process is cumbersome and difficult to navigate even with experienced HR personnel. Without HR, it is downright treacherous. This is one area where special districts without an HR department should consider seeking outside guidance when situations arise.

Responding to complaints of discrimination and harassment California law prohibits discrimination and harassment based on protected categories such as race, sex, religion, sexual orientation and other traits. If discrimination or harassment exists, California law requires that an employer promptly and effectively take action to stop it.

Often times, an employer will become aware of alleged discrimination and harassment from a complaint by an employee. But what are the employer’s obligations upon receiving a complaint? The employer should in almost all circumstances investigate the complaint. Depending on the situation, the investigation could be very informal. In other circumstances, it may be advisable for an employer to hire an outside investigator. This is especially true if the complaint is against a high-level official or where a conflict of interest might otherwise exist. Failure to recognize and distinguish these different types of situations can subject the employer to liability.

These four areas are some of the common areas where employment problems can arise for special districts. The authors intend to cover these areas and a few others in a session titled, “What You Need to Know When You Don’t Have an HR Department” at the CSDA Annual Conference and Exhibitor Showcase in September. The session will focus on some of the more complex and difficult problems that may arise in these areas.

California Special District – July-August 2014

David Kahn and Tim Yeung area partners with Renne Sloan Holtzman Sakai LLP (Public Law Group™). Mr. Kahn practices government law and serves as general counsel to a special district. Mr. Yeung represents numerous public employers in all aspects of labor and employment law. The Public Law Group is looking forward to presenting on the topic What You Need to Know When You Don’t Have an HR Department at the Annual Conference of the California Special Districts Association in September 2014.

We are an independent Wealth Management Group specializing in the implementation and investment management of 457(b) Deferred Compensation Plans for Government and Special Districts located throughout California. .  Has your District’s 457(b) plan been amended to allow the latest features such as the ROTH 457(b)?  Does your current 457(b) plan offer a wide range of investment options?  Is your District meeting your fiduciary responsibilities that require you to “select and monitor” the investment options being offered to your employees?  Have you done a comparative cost analysis of your 457(b) plan? You might be surprised how easy it is to negotiate a lower cost structure.  Does your current investment provider provide unbiased 457(b) plan participant education about your District’s plan and investments as well as financial planning to determine if the District’s employees are on track to meet their financial objectives?

Call For A Free Comprehensive Evaluation Of Your District’s Current 457(b) Deferred Compensation Plan Richard Maxey, CFP® : (916) 709-7798 Securities offered through Securities America, Inc., member FINRA and SIPC. Advisory services offered through Securities America Advisors, Inc., an SEC Registered Investment Advisory firm. Physical Address:1375 Exposition Blvd., Suite 201, Sacramento, CA 95815. Richard Maxey, CERTIFIED FINANCIAL PLANNERTM—California Life Insurance License #0B34213. Direct Number: (916) 709-7798. The Securities America Companies, M2 Wealth Management, and the California Special Districts Association are not affiliated. Securities America Financial Representatives do not give legal or tax advice-you should always consult a qualified professional for such services.

[Community Connections]

Citizen engagement: New uses of social media and the body politic

By John E. Brown, Best Best & Krieger LLP

This year marks the 25th anniversary of the invention of the World Wide Web, and local governments are looking to leverage widespread use of social media to better reach constituents, promote civic engagement, increase safety, and solicit citizen feedback. Social media methods that increase opportunities for online interaction among users provide greater potential for improving government. However, they also pose greater risks and challenges to regulate.

Browsing the Internet has become a daily activity for most of the world, and using social media is the most popular online activity with an estimated 22 percent of all Internet activity being attributed to sites like Facebook, Twitter, LinkedIn, Google+, YouTube, Instagram, Tumblr and Pinterest.

The Pew Research Center’s Internet Project found that 73 percent of online adults were using at least one social

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Citizen Engagement: New Uses of Social Media and the Body Politic

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networking site in 2013. This number has been on the rise since social media became a dominant force when Facebook launched in 2004. While Facebook is still the leading platform, the social media presence of the average user is diversifying. Forty-two percent of online adults are now on multiple networking sites, and the majority check their profiles at least once a day.

A 2013 study by the International City/County Management Association (ICMA) estimates that 84 percent of local governments have a social media presence. The specific uses of social media by local governments are widespread, but generally fall into three categories: information, consultation or deliberation. The information approach allows governments to provide one-way communication from the agency to the public. Consultation-based social media solicits feedback from the public and gives the entity an opportunity to respond. Finally, the deliberation approach allows the public to interact online and share views, ideas and recommendations for the public agency.

The beneficial uses of social media for government entities are vast. The use of this technology in recent years has led to increased transparency from the online posting of meeting agendas and minutes, improved citizen safety from natural disaster notification systems and police department crime feeds, heightened civic engagement from new forms of publicizing events and soliciting feedback, increased government efficiency and decreased public agency costs.

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.

In January 2014, Congressman Paul Cook of Apple Valley hosted a Twitter Town Hall to engage and connect with constituents in California’s 8th congressional district. Citizens were encouraged to ask questions and share opinions using the hashtag “#AskCook.”

Uses of social media like this allow public officials to engage with new constituencies and provide an instant channel between local residents and the government.

The City of Oakland recently found another use for Twitter in government. Oakland has taken to blasting its thousands of Twitter followers with real-time crime updates. Twitter posts advise citizens of areas with active criminal activity and solicit citizen assistance to apprehend suspects. Citizens enjoy the opportunity to write back with questions or concerns and have even helped dispense justice by reporting suspects who matched descriptions tweeted by the Oakland Police Department.

developing another app called “Where’s My School Bus,” which aims to connect parents with public schools to foster trust between them.

Special districts have also taken to social media to inform customers and stakeholders about news, events and conservation initiatives. Hi-Desert Water District uses Facebook and Twitter to publicize meetings, answer questions about the pending sewer project in the area, notify citizens about interruptions in water service and share tips for conservation.

Elsinore Valley Municipal Water District (EVMWD) has used “Elsinore Eddie,” the mascot for the district’s water conservation campaign, to connect with citizens.

Eddie is on Facebook, Twitter and YouTube posting regularly about water system repairs, tips for cutting water costs and conservation ideas. Residents in EVMWD’s 96-square mile service area were enticed to “friend” or “follow” Eddie with the promise of a new low-flow showerhead in return. These social media efforts have helped EVMWD achieve a 15 percent reduction in water consumption by customers.

Boston has launched one of the most proactive uses of social media to date with its mobile app, Citizens Connect. The app is a web-based companion to the city’s existing 311 reporting hotline. Citizens Connect allows users to upload photographs of problems, such as potholes or downed power lines, so the city can act promptly to correct the issues. The app was also designed to increase civic engagement and transparency by providing online forums and easily accessible city reports. Boston is currently

California Special District – July-August 2014

While the advantages of social media use are numerous, use is not without downsides and legal risks. The posting of meeting information and hosting of online citizen forums with elected officials can increase transparency, but it can also put governments at risk for violation of open meeting laws.

Providing an avenue for citizens to share concerns online can pave the way for increased activism, but can also open a public entity to First Amendment concerns in deciding how to regulate and police its forums. The mass creation of digital archives through social media platforms can create a helpful paper trail, but also raises complicated issues related to privacy and public records disclosure. continued on page 34

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Legal Brief How to Obtain, Engage, and Effectively Use Legal Counsel

By Jason S. Rosenberg & Rich Pio Roda

Special districts continue to provide high quality and efficient service to the public. With the stagnant or reduced revenues that have been typical over the last several years, the task has become more challenging. Unfortunately, reduced budget flexibility does not correlate with reduced legal needs. At the upcoming CSDA Annual Conference, we will discuss, through best practices and examples, how special districts of all sizes can procure and maximize use of legal services to protect assets and achieve the districts’ goals. This article will briefly introduce the upcoming CSDA Annual Conference presentation on how to effectively obtain, engage and use legal counsel in a manner that will best serve your district’s needs.

The necessary first step in effective use of legal counsel is the accurate identification of the district’s legal needs. This includes analyzing specific legal needs against operational needs, and the district’s budget.

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Conference Highlight: Thursday, October 2, 8:30 – 10:00 a.m.

The range of law firms that provide legal services to special districts is vast, and the rates charged and quality of representation vary depending on many factors, including locale, complexity of the issues, and size of the firm . Districts that have a clear idea of their specific legal needs will be able to easily identify the type of legal counsel that will meet their objectives, such as a need for representation in an eminent domain action, a LAFCo proceeding, or a construction defect case, to name a few.

However, for those districts that have broader needs, or are proactively seeking to manage legal issues, determine its future legal needs. For example, are there similar legal needs that come up on a recurring basis? Is there a big capital project on the horizon? Or is there a desire to proactively improve overall organizational efficiency and risk management?

Once a district’s legal needs are identified, then a district can move towards hiring the proper legal counsel, as well as determining whether general counsel or special counsel services are the best fit. Some districts utilize a general counsel model, whether by hiring a lawyer or law firm, or hiring an in-house attorney to manage legal issues as they arise and handle risk management. Other districts utilize a counsel-as-you-go model, issuing RFPs or relying upon staff to recommend the legal professional appropriate for the issue at hand.

How to Obtain, Engage and Effectively Use Your General and/or Special Counsel

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Once a district retains legal counsel, effective use of that counsel requires a clear understanding of the district’s expectations and communication of those expectations. Critical o this communication is the ability to state what the budget for given tasks should be.

California law grants special districts the authority to hire legal counsel.

For example, the principal act for community services districts provides as follows, “A district shall have and may exercise all rights and powers, expressed and implied, necessary to carry out the purposes and intent of this division, including, but not limited to, the following powers…to engage counsel and other professional services.” (Cal. Gov. Code 61060, subd. (g).) Although state law allows special districts to engage in legal counsel, special districts need to be cognizant of any applicable local laws regarding how outside consultants must be hired. Also, additional regulations could apply based on the type of funds that would be utilized for legal services.

For example, some federal funding sources require compliance with federal procurement regulations.

Thus, before you begin the process of seeking to hire legal counsel, confirm what regulations apply.

Also, if you can specifically identify the type or nature of legal services you need to retain, using a Request for Proposal (RFP) process may provide you with the most options at competitive rates.

After successfully identifying the type and extent of legal services, a district’s process of actually engaging with legal counsel has a set of regulations that must be followed. The general rule of the Ralph M. Brown Act requires that any action of the legislative body occur at an open and public meeting. This means that there must be an agenda item that adequately describes the action to be taken.

However, when considering hiring legal counsel, special districts can rely on the closed session provisions for public employment and labor negotiations to consider the appointment, employment, or dismissal of a public employee as well as discuss terms and provisions of an agreement. (Cal. Gov. Code §54957, 54957.6.) This holds even if counsel will be an outside firm, and not a district employee. In addition to its ability to hold closed sessions regarding the appointment of legal counsel, a special district could also utilize the creation of an ad-hoc committee to negotiate with potential legal counsel, with ultimate approval occurring by the full board of directors in an open meeting. With both of these tools available, it is still necessary to have a clear idea of the district’s overall objectives in the hiring of legal counsel so that those goals can be effectively communicated and implemented into the negotiation process. In addition to big picture goals, the contact negotiation process must also factor in whether or not the district intends to pay a retainer or hourly, and whether the district is looking for general or specific services, as the form of the contract and terms will vary depending on desired outcomes.

Once a district retains legal counsel, effective use of that counsel requires a clear understanding of the district’s expectations and communication of those expectations.

Critical to this communication is the ability to state what the budget for given tasks should be. Effective legal counsel should be able to provide reasonable estimates of the time a given task or action would take, and should communicate that to the district. However, if a budget is not clear to the district, the board or its representative should try to be proactive in seeking this information and having clarity on what the legal costs will be. The district could also consider adopting a policy where work that would require more than a set number of hours would require some form of prior approval. This also prevents the problem of one staff member or board member requesting extensive legal work without of the approval of the board.

Lastly, when utilizing legal counsel, special districts should also be cognizant of ethical considerations by which district counsel is bound. A public attorney is bound by the Rules of Professional Conduct, which state, “…the client is the organization itself,

California Special District – July-August 2014

acting through its highest authorized officer, employee, body or constituent overseeing the particular engagement…”

(Rules of Professional Conduct, § 3-600(A); see also, Roberts v City of Palmdale (1993) 5 Cal.4th 363.) Accordingly, the organization by and through the board is the attorney’s client, and not individual board members. This means that, although there may be attorneyclient privileged communications between individual board members and counsel, only the entire board can waive the privilege as to whether to disclose those communications.

Also, communications between counsel and individual staff or board members of the district are not protected from disclosure to the board. However, the applicable principal act may further inform this relationship and the duties that flow to legal counsel. For example, the Public Utility District Act (Cal Pub. Util. §§ 15501 et seq.) does not mention attorneys, whereas the Municipal Utility District Act (Cal Pub. Util. §§ 11501 et seq.) states that the attorney shall give advice as required by the Board. (Cal Pub. Util. § 11939.) The statute goes on to state that, the attorney shall, “be the legal adviser of the general manager and other district officers…” (Cal Pub. Util. § 11939.)

In this situation, the client would be more than the organization itself, and duties of confidentiality would extend equally to those named positions. Keeping all of these concepts in mind while engaging with legal counsel will help a district utilize its resources in an effective manner and will help to best achieve the district’s objectives.

Is your district destined for distinction?

In a time where proper fiscal management and responsibility in public agencies is paramount and the task of governing these agencies becomes even more complex, regulated and costly, it has become increasingly important to demonstrate to constituents that districts have sound fiscal management policies and practices in place.

The Special District Leadership Foundation (SDLF) District of Distinction (DOD) accreditation is designed as a way for districts to highlight these areas of achievement.

By earning the District of Distinction accreditation, you demonstrate that your district: • Understands and respects the responsibilities inherent in providing essential public services.

• Has clean financial audits and operates in a fiscally responsible and transparent manner.

• Is conscious of the ever-changing operating environment by having current and relevant policies and procedures in place that conform to all statutes and regulations under state law.

• Places an emphasis on continuing education by having each of the district’s board members and executive staff complete ethics, harassment prevention and governance training.

• Focuses on having sound policies in the areas of governance, board conduct, district finances, transparency and reserves.

There are currently 20 Districts of Distinction.

In order to earn the accreditation, districts must demonstrate they undergo regular financial audits, have no major deficiencies, and apply any recommendations to future years. Districts must demonstrate that their operations conform to all state statutes and regulations under state law as reflected in policies and procedures manual. Districts must further show that all directors/trustees, and the general manager and executive staff have received training in governance as well as compliance with AB 1234 Ethics Training and AB 1825 Harassment Prevention Training. Finally, districts must have completed the SDLF District Transparency Certificate of Excellence.

The accreditation is valid for a two year period and application fees are based on a district’s annual operating budget. Districts of Distinction earn a plaque honoring their accomplishment and the right to use the program’s seal on district materials. SDLF will also write and issue press releases and notify legislators on a district’s behalf.

To download an application, please visit www.sdlf.org or call (916) 231-2939.

Recognitions

Districts of Distinction Accreditation

SDLF is now on Facebook!

“Like” us at www.facebook.com/sdlfca.

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• Three Valleys Municipal Water District – April 2014 • Town of Discovery Bay Community Services District – April 2014

Staff

CSDA Appointees

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

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

David Aranda, SDA, North of the River Municipal Water District Sandy Raffelson, Herlong Public Utility 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

Recognitions

District Transparency Certificate of Excellence • Ironhouse Sanitary District – April 2014 • Grizzly Flats Community Services District – April 2014 • Town of Discovery Bay Community Services District – April 2014 • Leucadia Wastewater District – May 2014 • Sweetwater Authority – May 2014

Recognition in Special District Governance • Cynthia Ward, Orange County Cemetery District – April 2014 • Leslie Keane, Orange County Cemetery District – April 2014 • Lee Mason, Ambrose Recreation & Park District – April 2014 • Orange County Cemetery District, Silver Recognition – April 2014 • Town of Discovery Bay Community Services District, Silver Recognition – April 2014 • Ed Gray – May 2014

Special District Leadership Foundation Programs promoting good governance.

up for the

Challenge?

Prove your commitment to transparency

District Transparency Certificate of Excellence A stand-alone program of SDLF, made available to districts that apply and meet certain requirements. It is also a required component of the District of Distinction Accreditation.

This program promotes transparency in the operations and governance of specials districts to the public.

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

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 California’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.

California Special District – July-August 2014

Citizen Engagement [continued from page 29] If public entities wish to use social media to interface with citizens, they should exercise care to ensure that a proper social media policy is in place. The Center for Technology in Government recently reviewed government social media policies and identified eight essential elements that every government entity should address in its policy.

According to the center, each policy should include specifics regarding: 1. Employee access to social media sites 2. Management and maintenance of content 3. Acceptable use 4. Employee conduct on social media 5. Content

6. Security 7. Legal issues related to social media, including freedom of speech, freedom of information, public disclosure, equal accessibility, copyright protection and privacy 8. Citizen conduct permitted on the sites The creation and continued attention to a policy that includes these elements will help mitigate risks and reduce liability for government entities embracing social media.

While the use of social media by governments is on the rise, the specific ramifications of its use are still being weighed. Entities

looking to expand their use of social media should not only have a policy in place but should also carefully monitor the feedback and interaction with constituents to ensure that the intended result is, in fact, being met.

John E. Brown is a partner of the law firm of Best Best & Krieger LLP. Mr. Brown is a public lawyer and has represented as general and special counsel a variety of California public agencies including cities, redevelopment agencies, special districts and school districts. He can be reached at john. brown@bbklaw.com.

Best Best & Krieger associate Cambria Smith and summer associate Alexandra Andreen assisted with the writing of this article.

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anaging Risk

Developing your safety program

SDRMA partners with TargetSolutions to assist our member agencies with a no-cost. web-based training system that allows members to develop an internal safety program aimed at reducing losses and providing online training to board members and staff. One of our members, McKinleyville Community Service District in Northern California is responsible for more than 5,300 active water services and 4,400 sewer connections and uses TargetSolutions platform extensively.

With 28 employees using TargetSolutions, the District has logged more than 500 training hours (online courses and Custom Activities) and utilized 34 different credentials to track everything from Water and Wastewater continuing education to ethics awareness and in-house training events. For McKinleyville, it’s TargetSolutions’ three “Cs” that

standout most: Customization of Credentials, Continuing Education and Customer Service. These three factors have led to huge success, according to Lead man Erik Jones.

Credentials Management Approximately 25 percent of McKinleyville’s employees require certifications in water distribution, water treatment, wastewater treatment, backflow prevention, and playground safety inspection.

“Prior to TargetSolutions, credential tracking consisted of unorganized spreadsheets,” Jones said. “Now, we are able to consolidate all information into one area within the platform. It’s now simple to check and see if all employees are current.” Generating reports to pinpoint employee training records and monitor compliance is more efficient with TargetSolutions, Jones said. Whether it is first aid training, HAZWOPER training, or anything else, TargetSolutions’ credentialtracking application streamlines the process.

Continuing Education With McKinleyville being isolated along Humboldt County’s coast, training opportunities are far less frequent than in larger metropolitan areas. The ability to utilize TargetSolutions’ extensive course library featuring more than 60 CEUs for water operators to help meet mandatory CEUs is crucial to this special district. Jones said the district also finds value

A proud California Special Districts Alliance partner.

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in TargetSolutions’ online safety training courses, including driver safety, sexual harassment awareness, and more. Online training in tandem with job-specific learning tracks ensures employees are on track for certification. Supervisors can print certificates to deliver to the State and supervisors can scan certificates directly into an employee’s credential for recordkeeping. “TargetSolutions saves us money and time,” Jones said. “With online training available 24/7, this is a huge cost savings for us. We really appreciate the flexibility that TargetSolutions provides us in meeting our training needs.”

“With online training available 24/7, this is a huge cost savings for us. We really appreciate the flexibility that TargetSolutions provides us in meeting our training needs.

Client Services TargetSolutions is focused on helping SDRMA members like McKinleyville improve efficiencies.

Through monthly webinars or general inquiries, friendly representatives are ready to assist, which helps McKinleyville get the most out of the platform. “We’ve dealt with other vendors before and haven’t gotten the kind of friendly response that TargetSolutions gives,”

Officers

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

Terry Burkhart, Bighorn-Desert View Water Agency Ed Gray, Chino Valley Independent Fire District Sandy Raffleson, Herlong Public Utility District Michael Scheafer, Costa Mesa Sanitary District

Jones said. “They are responsive and very willing to help. With the ability to track all manner of training and certifications, TargetSolutions gives small, isolated districts like ours the same resources available to more metropolitan organizations.”

Legal Updates It is a well-known fact that the California court system ‘giveth and taketh away’ when it comes to statutory requirements and immunities that can adversely affect a public agency. Here are some recent California court decisions that may affect your local agency.

Ninth Circuit Rules Privately-Led Prayers Opening City Government Meetings That Mention Jesus Do Not Violate First Amendment In Rubin v. City of Lancaster, published March 26, 2013, the Ninth Circuit Court of Appeals rejected a First Amendment challenge to a city’s practice of inviting clergy from the community to lead prayers at the opening of city council meetings. The plaintiffs argued that a majority of the prayer leaders were Christian, as were the council members, and that a prayer had mentioned Jesus. After reviewing the history of case law on the subject, the court concluded that in light of the safeguards the city took (inviting prayer leaders without regard to their religion, and asking that they not attempt to proselytize or criticize other religions), neither the invocation of Jesus nor the fact that most of the speakers were Christian (a consequence of the city’s demographics) amounted

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.

to unconstitutional establishment of religion. In so ruling, it joined a divide between federal circuits on the subject. It also ruled that the prayers did not violate the California Constitution.

Dirt Strip along Street in Residential Area Is Recreational Trail for Purpose of Immunity Statute In Montenegro v. City of Bradbury, published April 25, 2013, the Second District Court of Appeal, Division Four, affirmed summary judgment in the city defendant’s favor against the plaintiff, who fell over a protruding tree trunk while walking along a dirt pathway adjoining a street in a residential area. The pathway is approximately half a mile long, seven-and-a-half feet wide, and was designed for and used by bicyclists, walkers, joggers, and horseback riders. The plaintiff contended that the area was essentially a sidewalk for pedestrian safety, since it ran alongside a street, was elevated by a curb, was in a residential area, was not in a natural condition, and was maintained by a landscaping company. The appellate court affirmed the trial court’s conclusion that Government Code section 831.4’s immunity for the condition of trails used for hiking, animal riding, and

California Special District – July-August 2014

SDRMA Staff

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

vehicular riding applied, since the path was designed for and used for those purposes. It held the city absolutely immune for the physical condition of the path.

Design Immunity Defense Fails Absent Evidence of Discretionary Approval In Martinez v. County of Ventura, published April 8, 2014, the Second District Court of Appeal, Division Six, reversed a defense jury verdict based on the defense of design immunity, concluding the evidence was insufficient as a matter of law to support the jury’s finding that the immunity applied. The plaintiff was injured when his motorcycle struck a berm abutting a raised drain -- a “top-hat drain system.” He alleged the top-hat drain system was a continued on page 46

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Money Matters Special districts and the SEC continuing disclosure initiative

By Jeff Stava, Esq., Nossaman LLP

For many years the Securities and Exchange Commission (the “SEC”) was concerned that purchasers of municipal bonds in the secondary market did not have access to updated information on the issuer or the security for such obligations (unlike on the corporate side, where regular filings are a requirement). Since the SEC does not have regulatory jurisdiction over public agencies, beginning in 1994 it required that before an investment bank could underwrite a municipal bond offering it had to enter into an agreement whereby the issuer would provide certain information to a central repository, where it could be accessed by purchasers in later years. In other words, the SEC began to indirectly regulate municipal transactions by regulating the purchasers of such obligations.

The continuing disclosure obligation (the “CDO”) of the public agency typically requires an annual filing, by a certain date, of its audit, along with a report containing updated information relating to the security for the bonds, and more frequent reports of certain material events affecting the bond issue (such as a rating change). If an agency is issuing new obligations, it is required to disclose any material failures to comply with its CDO over the past five years.

For many years, an agency’s failure to comply with its CDO were a non-event, with the market in many cases not caring about the filings, and many issuers and underwriters did not making a sufficient effort to determine

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Officers

James Acosta, President, Saticoy Sanitary District Jo MacKenzie, Vice President, Vista Irrigation District Scott Dowell, Secretary, Chico Area Recreation and Park District Paul Hughes, Treasurer, South Tahoe Public Utilities District

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

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

CSDAFC Staff

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

Members of the Board

Leslie Keane, Orange County Cemetery District John Martin, Tehachapi-Cummings County Water District Steve Perez, Rosamond Community Services District

compliance. However, over the past few years that attitude has changed (not surprisingly, given the disruption in financial markets during the recession), and the SEC has taken a renewed interest in ensuring compliance.

Since it still does not have regulatory jurisdiction over public agencies, it has focused on utilizing the antifraud provisions in the securities acts, in particular where an agency has mistakenly or negligently stated in an official statement that it was in compliance, when in fact it wasn’t. In 2013, for the first time the SEC charged an agency and its underwriter for violation of the anti-fraud provisions for material misstatements about compliance with the agency’s CDO. In that case, the agency stated that it was in compliance with its CDO for the prior five years, when it in fact had never filed the required information. The underwriter received a fine in excess of $500,000, and the agency agreed to certain administrative changes regarding its procedures for compliance. What the SEC and many in the industry have discovered is that such material non-compliance is much more common than previously expected. With the development of the Electronic Municipal Market Access (“EMMA”) online reporting system becoming available in 2010, it has become much easier to check compliance (or lack thereof).

Municipalities Continuing Disclosure Cooperative Initiative To combat non-compliance with CDOs, in March 2014 the SEC announced its Municipalities Continuing Disclosure Cooperative Initiative (the “Initiative”), by which the SEC “will recommend favorable settlement terms to issuers … involved in the offer or sale of municipal securities … as well as underwriters of such offerings if they self-report to the Division possible violations involving materially inaccurate statements relating to prior compliance with the continuing disclosure obligations.” This Initiative is available through September 9, 2014.

California Special District – July-August 2014

As the California Debt and Investment Advisory Commission recently posted, “the SEC has adopted a carrot-and-stick approach to the problem.

The carrot is the [Initiative], …[which] offers municipal securities issuers … an opportunity to investigate and report their past failure to comply with CDAs and any false claims of compliance that they have made in their bond offering documents, in return for relatively expedited and benign settlements with the SEC, on the condition that new administrative protocols, staffing and other resources are instituted and implemented to assure continued compliance in the future. The stick applies to bond issuers … who fail to participate in the program and are later determined by the SEC to have failed to comply and/or misled bond investors about their compliance: the SEC will impose much more severe settlement terms in such cases, with monetary penalties that exceed any “cost of doing business” and that would likely result in lasting damage to institutional and individual reputations and career prospects.”

The Initiative effectively requires up to a ten year look-back on compliance with a CDO (or five years back from its earliest bond issue within the past five years). If an agency has been in material compliance with its CDO, or has disclosed lack of compliance in its official statements, then it does not have a need to be concerned with the Initiative. However, it should have high confidence in these facts before ignoring the Initiative. It is also important to note that the Initiative does not cover individual officers or employees of an agency, who may have personal liability to the SEC if they are determined to have violated federal securities laws. continued on page 44

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Building Your Financing Dream Team

[What’s so special]

Providing water in a thirsty climate Coachella Valley Water District

Coachella Valley Water District was formed in 1918 to protect and conserve local water sources. Since then, the district has grown into a multi-faceted agency that delivers irrigation and drinking water, collects and recycles wastewater, provides regional storm water protection, replenishes the groundwater basin and promotes water conservation. It does all of this in a desert climate, with a population that continues to grow.

The district is able to use different technologies to meet the needs of its constituents.

California Special District asked CVWD General Manager Jim Barrett about the challenges the district faces in providing water, how it meets those challenges and what attendees of the preconference tour will get to experience.

What services does Coachella Valley Water District provide?

CVWD began by protecting and managing the region’s extensive groundwater supply. Regional flood protection was assimilated in the 1930s. Agricultural irrigation water deliveries and drainage began in the late 1940s and early 1950s. Domestic water deliveries, sanitation and recycled water were added in the 1960s.

CVWD is one of only two agencies in California with an entitlement to Colorado River water and rights to State Water Project (SWP) water. Conservation policies and programs have been in place since the agency was established and have grown substantially.

Given the climate of your service area, what are some of the unique challenges CVWD faces in providing those services?

Jim Barrett, General Manager

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Protection of the quantity and quality of groundwater supplies is the driving force in CVWD operations. The two primary industries in the area, agriculture and recreation, are heavy water consumers. Prior to the recession the region was among the fastest growing areas in the county with respect to new housing and that is expected to resume to some extent with economic recovery.

Coachella Valley Water District Established: Size: Population: Budget:

1918 Approximately 1,000 square miles The Coachella Valley’s population exceeds 450,000 people $320 million

How do you meet those challenges?

The Coachella Valley Water Management Plan is an exceptional blueprint for tackling water-related challenges. Wherever possible, nonpotable water is provided or its use encouraged for nonpotable purposes such as irrigation. Most agriculture uses Colorado River water and efforts continue to wean farming off of groundwater. The number of golf courses using recycled/imported water is growing and there is a tremendous “push” to hasten their conversion away from groundwater; local legislation requires golf courses and other large landscaping to be irrigated with nonpotable water. Conservation programs have helped reduce domestic water use by more than 15 percent in less than a decade. While efforts are underway to determine the most efficient, effective ways to treat groundwater so that it meets all state drinking water standards, lawmakers are being asked to establish reasonable timelines for compliance.

What are your groundwater replenishment facilities? How do they work and what do they do?

CVWD operates or cooperates in the operation of three groundwater replenishment facilities, one in western Coachella Valley dating back to the 1970s.

The two others are more recent and one targets the area served by Mission Springs Water District while the second is in the east valley. Colorado River water is diverted into all three, where it seeps into the ground and is added to the aquifer located beneath most of the Coachella Valley. Replenishment raises groundwater tables and reverses aquifer overdraft.

This process ensures that the aquifer does not lose its capacity to store groundwater, protects groundwater quality and alleviates subsidence in the valley, which is subject to considerable seismic activity.

CVWD resides in a desert climate home to many beautifully landscaped golf courses. How does the district meet the water needs of its residents and still irrigate businesses like these golf courses with such low rainfall every year?

Except for the growing number of golf courses that utilize recycled/imported water that is delivered by CVWD, courses are responsible for pumping their own groundwater. Any entity that pumps more than

California Special District – July-August 2014

Location:

Website:

Most of the Coachella Valley, primarily in Riverside County with boundaries that extend into Imperial and San Diego counties www.cvwd.org

25 acre-feet (325,851 gallons per acrefoot), however, pays a Replenishment Assessment Charge (RAC). RAC funds are used to offset the cost of imported water, either SWP water in the west valley or Colorado River water in the east. SWP water is considerably higher in cost than Colorado River water so the RAC is higher in the west ($110.26/$98.73 per acre-foot) than in the east ($52 per acre-foot). CVWD assesses itself a RAC for the water it pumps, a portion of which appears on domestic water bills.

What will tour attendees have the opportunity to see and learn about during the Water Awareness pre-conference tour in September?

Tour attendees will have the opportunity to see what it takes for the Coachella Valley Water District to effectively and efficiently manage local water supplies, especially groundwater and combatting aquifer overdraft. Participants will visit the Coachella Valley’s newest groundwater replenishment facility and learn how the process works in the region. In addition to a glimpse at the history of the district

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and water use in the valley, Tour attendees will receive an overview of the multitude of services provided to residents, businesses and visitors to the Coachella Valley. The importance of imported water, specifically Colorado River water, to protecting and preserving groundwater will be explained, along with a review of agricultural water use in the region.

How CVWD ensures domestic water quality will be examined along with a review of the growing importance of recycled water in providing irrigation customers with alternatives to the use of groundwater.

How often do you host these tours and who attends? What is the benefit of these tours?

Tours normally are scheduled twice a year and when special circumstances arrive. Local elected representatives and others in government, media, educators, community and business leaders and members of the general public with a strong interest in water and water-related topics are among those who attend.

Conference Highlight: Monday, September 29, 10:00 a.m. – 3:00 p.m.

Pre-Conference Tour: Water Awareness Tour

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California Special District – July-August 2014

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Money matters [continued from page 39] Additionally, the Initiative effectively puts issuers and their underwriters at odds, since if one-self-reports a possible material omission or misstatement and the other doesn’t by the deadline, it simplifies the SEC’s ability to prosecute the non-reporting party.

It is essential that issuer’s and their underwriters communicate regarding any self-reporting efforts, to ensure consistency.

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California Special District – July-August 2014

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Managing risk [continued from page 37] dangerous condition of public property. The defendant asserted design immunity, based on the county’s road maintenance engineer’s testimony that he “probably” approved the design of the drain. But the evidence established that the installation of the drain system was a maintenance project, for which no engineering design plans were prepared; the systems were built “in the field” without plans or any scientific or engineering analysis.

The maintenance workers built and installed the drains in the field as they saw the need for them.

To prove design immunity, the entity must show that the design was approved in advance by the public entity’s legislative body, or by another body or employee exercising discretionary authority to give approval; or where the plan or design is prepared in conformity with standards previously so approved. The appellate court ruled that there was no evidence that the county or an employee approved the top-hat drain system before it was installed. There was no design for the drain systems in advance of construction, the court ruled, so there was nothing to approve. Further, even if there had been a design to approve, the county presented no evidence that the person whom the law authorized to approve the design -- the county road commissioner -- had delegated authority to the engineer who approved the drains; or that the commissioner had the authority to delegate that power. The public entity must show a basis in law for delegation of authority. The court rejected the theory that discretionary approval may be implied from repeated use of the design for 25 years.

Lawsuits Alleging Intentional Misconduct by Public Officials Are Subject to the Government Claims Act In Gong v. City of Rosemead, published May 20, 2014, the Second District Court of Appeal, Division Five, affirmed dismissal after demurrer of a lawsuit against a city for the alleged intentional misconduct of the city’s former mayor. The plaintiff, a developer, alleged that the mayor extracted thousands of dollars in “loans” from the developer without repayment, retaliated against her by preventing approval of her project when she refused to pay more and refused his sexual overtures, assaulted her, and threatened her life. The basis for the demurrer was that the timely claims for damages that the plaintiff submitted concerned only delays on and failure to approve the development project. They did not fairly reflect the allegations of intentional misconduct that formed the basis for the lawsuit.

The plaintiff argued that Government Code section 815.3 exempts from the Government Claims Act lawsuits alleging intentional misconduct by elected officials. The

46

court rejected this interpretation. It ruled that the statute merely requires that plaintiffs look first to an elected official defendant found liable for intentional misconduct to satisfy the judgment against the official, and only afterward look to the entity for additional compensation.

Lawsuits alleging intentional misconduct are subject to the Government Claims Act’s procedural requirements and immunities. The court also ruled that the plaintiff’s lawsuit against the public entity for promissory estoppel in regard to the development failed, because Government Code section 818.4 immunizes public entities from liability regarding discretionary permitting decisions.

Public Entity May Not Contract to Indemnify Employee against Suit Brought on Entity’s Behalf against Employee for Alleged Criminal Conduct Committed in Bad Faith and with Malice In City of Bell v. Superior Court (Rizzo), published October 4, 2013, the Second District Court of Appeal, Division Three, addressed whether Government Code section 996.6 permits public entities to enter into defense and indemnity contracts with its employees that would provide a defense against the city’s own lawsuit (or a lawsuit brought by the Attorney General on the city’s behalf) against the employee for alleged corruption. The court answered the question in the negative. Government Code section 995.8 prevents a public entity from providing its employee a defense to a criminal action unless the public entity determines that the defense would be in the best interests of the public entity and that the public employee had acted in good faith and without malice. Section 996.6 provides that an employee’s or former employee’s rights under the Government Code are in addition to, and not in lieu of, any rights he may have under a contract or other enactment providing for his defense. The court concluded that under this statute, if an employee has a contractual right to defense (such as his own insurance policy), the entity cannot escape a statutory duty to defend him on the ground that the employee has another source of defense. The statute does not permit the public entity to enter into a defense or indemnity contract that would exceed the entity’s statutory powers. Since under section 995.8 the entity has no power to contract to defend or indemnify an employee it is suing (or is sued on the entity’s behalf) for corruption, section 996.6 does not permit it to do so. * Reprinted from: Pollak, Vida & Fisher’s “Weblawg” of Important Developments in California Public Entity Tort Liability. Edited by Daniel P. Barer, Partner, Pollak, Vida & Fisher, 2014.

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