California Special District: Elections

CA SPECIAL

DISTRICT Publication of the California Special Districts Association

Interview with Stephen Abbors, MROSD

Volume 9, Issue 5, Sept - Oct 2014

- Movers and Shakers - Debuting the Networks - Grassroots Action Update

This issue will focus on:

Elections

Offering Creative Legal Solutions for Special Districts for More Than 70 Years

BUILDING STRONG COMMUNITIES. Nossaman is a full service public agency law firm based in California. Our strategic partnerships with public, private, and governmental agencies provides us a unique perspective on the law. We know the land. The law. The courts. And the lawmakers.

Nossaman proudly serves as CSDA Bond Counsel, and also provides counsel to special districts in areas such as Municipal Finance, Public Agency Law, Water, Environmental, Land Use, Infrastructure, Employment, Insurance Recovery, Public Policy, and Eminent Domain.

You define success. Together, we make it happen.

MAKING IT HAPPEN.

LOS ANGELES I SAN FRANCISCO I ORANGE COUNTY I SACRAMENTO I WASHINGTON, DC I AUSTIN I ARLINGTON

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Volume 9, Issue 5 • September - October 2014

CONTENTS

6

CSDA News

16

Coaching program; blog; online special districts map

Getting the vote for open space

Interview with MidPeninsula Regional Open Space District

5 Professional Development Special District Leadership Academy Conference; Professional development calendar 14 In Brief Recycled water fill station open and free to customers; Mojave Desert AWMD student solar cook-off; Healthcare district offers therapy; LiDAR to improve open space and resource management; Harbor more accessible to visitors; Internship prepares students to save lives

20

At-large voting and the rising tide of VRA claims

38

What’s So Special

Popeye loves mussels

Sonoma County Water Agency

24 Solutions & Innovations Help wanted: Seeking candidates for a board vacancy

34 Managing Risk Strive for lowest possible experience modification

26 Community Connections A quiet intervention changes students’ lives

36 Money Matters The state budget and what it means for you

28 Legal Brief Developing defensible special assessments under Proposition 218 30 SDLF Get engaged with the Special District Leadership Foundation

?

Ask the Experts - pg. 12

For advisory committees, must a district put out an agenda or take minutes? If the answer is no, does the secretary have to be present to take notes?

Printed on recycled paper.

California Special District – September-October 2014

CA SPECIAL

DISTRICT © 2014. California Special Districts Association.

All rights reserved.

Officers Noelle Mattock, President El Dorado Hills Community Services District 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 Cassandra Strawn, Member Services Specialist 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

CEO’S MESSAGE

Newly Elected?

Governance Training Can Make a Big Difference

Does

your district have individuals who were recently elected to your board? A critical first step into leading the district is to make sure they have a full understanding of their responsibilities and role as a director/trustee in a special district.

Most board members I know didn’t pursue the position for fame or fortune, but rather to contribute in making a difference in their district and community. One of the first things we talk about in CSDA’s Special District Leadership Academy: Governance Foundations module is the concept of moving from “I” to “we” in decision making. The fact is an individual board member simply doesn’t have the authority alone to make a decision on behalf of the entire district. That’s what boards are for and why they exist.

We often get the question of what makes an effective board member, so here are just a few thoughts to consider: • They keep the needs of the community as their primary focus.

• They do not represent one group, one agenda, one program.

• They stay focused on the strategic goals, vision and mission of the district.

• They do not get distracted by day-to-day work/issues in the district that they employ staff to handle (micromanagement).

• They govern with dignity and understand the implications of demeanor and behavior.

• They stay focused on policy issues and decisions.

A proud California Special Districts Alliance partner

4

Neil McCormick

Ultimately, governance is the process of transforming the needs, wishes and desires of the community into policies that provide a common focus for action and staff implementation.

Governance and being a board member aren’t easy. It takes a lot of work, focus and dedication.

Understanding how to be an effective part of the governance team is crucial to the success of the district.

One of the first things we talk about in CSDA’s Special District Leadership Academy: Governance Foundations module is the concept of moving from “I” to “we” in decision making.

CSDA’s Special District Leadership Academy modules and conferences are a great place to learn more about this important topic and you can find information on upcoming trainings at www.csda.net. Whether newly elected or a veteran board member, governance training can make a significant difference. Remember, working as a team can be so much more powerful and productive than working as an individual.

HIGHLIGHT

CSDA’s Special District Leadership Academy Due to unforeseen construction at the Embassy Suites San Diego the Special District Leadership Academy Conference, November 16-19, 2014, will now be held at the Embassy Suites Anaheim – South.

Please see visit www.csda.net for additional hotel information.

Experience the best in governance education at the upcoming SDLA Conference CSDA will be hosting the Special District Leadership Academy Conference again this year, November 16-19 in Anaheim. Attendees can complete all four modules of the Special District Leadership Academy during the course of this two day conference.

Have you already completed the Special District Leadership Academy?

Now you can participate in advanced courses for experienced board members. Whether you’re new to the board or someone who has served for many years, this conference provides essential tools and information to effectively govern your district.

Scheduled breakout session options for those who have already completed the Academy include: Governance Best Practices for Experienced Board Members, Board Ethics and Conflict of Interest Issues, AB1234 Ethics in Public Service, AB 1825 Harassment Prevention Training, The Brown Act: The Top Ten Issues Boards Face, Form 700 Filing: Getting it Right, Building the Trust – Board and GM Relationships, Board Governance Guidelines, Property Tax Essentials for Board Members – Increasing Your Finance IQ, Avoiding Conflict in Board Work and more!

Don’t forget - we want all of your board members on the same page when it comes to governance so when you send more - you save more!

For example, the first attendee from your CSDA member district pays $600 at the early registration price; each additional attendee from the same CSDA member district pays only $400 at the early registration price. Registration includes two and half days of valuable education, two receptions and two lunches. Space for this conference is limited so don’t miss out, register online today at www.csda.net!

California Special District – September-October 2014

October October 9

WEBINAR

Now is Not the Time to Panic: Emergency Preparedness

November November 13

WEBINAR

Required Ethics Compliance Training - AB 1234

November 16-19

CONFERENCE

Special District Leadership Academy Conference, San Diego

December December 10

WEBINAR

Must Have Communication Protocols for Board and Staff

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

20,000 pounds of hazardous waste was collected at the Household Hazardous Waste Collection event hosted in part

by Costa Mesa Sanitary District

CSDA NEWS

SPECIAL DISTRICT COACHING PROGRAM LAUNCHED

NEW BLOG GIVES YOU INSIDE ACCESS

CSDA, together with Cal-ICMA, has launched a special district coaching program for CSDA members. The Coaches Corner is housed in the Career Center of the CSDA website and offers a variety of senior manager volunteer coaches who are willing to offer one-on-one periodic or ongoing advice. Coaches include leaders from a variety of districts throughout the state. You are able to view a brief biography of the coach and request a match using our convenient online form. It’s easy, free and confidential. While you are in the Career Center you can also check out the Career Compass Anthology, a monthly column focused on career issues for local government professional staff.

CSDA is pleased to offer the CSDA Blog based on a 2013 survey concluding that members want legislative and public policy updates and information. By subscribing to blog updates that satisfy your level of appetite, such as real-time, daily or weekly delivery, you can access the latest Capitol action on issues affecting special districts, including pensions, state mandates, new public works requirements, and more.

Coaches like Rick Howard, SDA, General Manager of the Town of Discovery Bay Community Services District, welcome the opportunity to help emerging leaders of special districts. “I’ve been in local government for almost 30 years, and in that time, so many wonderful people have helped guide me and assist me throughout my career. The CSDA Coaching Program is a way for me to pay back and use my experiences in helping up and coming professionals make that next career decision.”

Special district coaches will meet face to face with emerging leaders for the first time at the CSDA Annual Conference & Exhibitor Showcase “So You Want to Be a General Manager?” workshop on September 29. The workshop, sponsored in part by the Special District Leadership Foundation, is a full day of practical career development for senior executives and emerging leaders in special districts.

Questions or interested in serving as a coach?

Email Megan Hemming at meganh@csda.net.

You can also access CSDA’s daily blog post that compiles news on special districts from papers across California. Called the District Daily Press, this blog feature includes legal news, grand jury reports, effective community engagement stories, district recognitions and all of the other issues special districts care about.

Find the CSDA Blog at www.csda.net/advocacy/blog.

PUTTING SPECIAL DISTRICTS ON THE MAP More than 2,100 agencies are now featured in the first-ever comprehensive, online map of California’s special districts. CSDA, in collaboration with California CAD Solutions, launched the map nearly two years ago and has continued to gather special district boundary files and other data to post online.

The map has caught the attention of organizations such as the State Water Resources Control Board, California Forward and numerous universities, recognizing it as a unique and valuable public resource.

If you haven’t checked out the map lately, we invite you to visit www.csda.net/special-districts/map and explore the new features and data available there. The map is interactive and searchable by district type, county, legislative district and zip code. If your district’s data is incorrect or your boundary lines are missing, just click on the map’s feedback link and let us know how we can correct it.

The Special District Mapping Project is supported in part by contributions of the California Special Districts Alliance, a partnership between CSDA, the CSDA Finance Corporation and the Special District Risk Management Authority (SDRMA).

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CSDA

C

SD

A • 201 4

Than You k SP O NSO R

Annual Conference & Exhibitor Showcase

Palm Springs Champion

• California Special Districts Alliance • CSDA Finance Corporation • Special District Leadership Foundation • Special District Risk Management Authority

Advocate • Meyers Nave

*As of 7/25/14, see your onsite guide for a complete listing

Supporter

• Bank of the West • BHI Management Consulting • Liebert Cassidy Whitmore • McMurchie Law

Friend

• Best Best & Krieger LLP • Brandis Tallman LLC • BNY Mellon • CH2M HILL • PARS • Renne Sloan Holtzman Sakai LLP • US Communities

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S

[A three part series]

Debuting the networks San Mateo

COASTAL NETWORK

Santa Clara

29

Santa Cruz

21

26

San Benito

X

6

Did you know?

Monterey

49

CSDA AFFILIATE CHAPTER San Luis Obispo

37

- San Luis Obispo County - Santa Barbara County Chapter of CSDA - Santa Clara County Special Districts - Ventura County Special Districts Association

Y

Santa Barbara

36

SPECIAL DISTRICTS Z

Ventura

31

NETWORK DELEGATES Jim Acosta Saticoy Sanitary District “I am currently the president of the Saticoy Sanitary District and have previously worked as the director for the Ventura Regional Sanitation District and the Triunfo Sanitary District. I am proud of the many accomplishments that CSDA has had during my time on the board and enjoy working in conjunction with the rest of the directors in increasing membership numbers and offering X incentives for small districts to join.”

Y

Z

Elaine Freeman Rancho Simi Recreation and Park District “It is my belief that special districts are the best providers of local services and that is why I have been involved in local government for over a decade. I currently serve as vice president of the Ventura County Special Districts Association and as a board member on the LAFCO Commission. I am also owner of Urban Strategies, a land use and government policy consulting firm recognized as business of the year by Simi Valley Chamber of Commerce.”

Kathleen Tiegs Cucamonga Valley Water District “My experience on the Cucamonga Valley Water District Board of Directors has provided me with a solid foundation of special district knowledge. In April 2011, I was honored by State Assembly Member Mike Morrell as the 63rd Assembly District Woman of the Year. I am the immediate past president of the Association of San Bernardino County Special Districts. My participation has allowed me to develop a network of colleagues in a variety of different agencies, with a common goal of serving our constituents needs.

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232 total independent special districts

COASTAL NETWORK DISTRICTS Airport 2 Air Pollution Control 3 Cemetery 30 Community Services 32 Drainage 3 Fire 31 Healthcare 9 Harbor 6 Hazard Abatement 2 Library 1 Mosquito 3 Memorial 5 Municipal Improvement 3 Open Space 1 Police 1 Reclamation 2 Resource Conservation 11 Recreation & Park 14 Sanitary 21 Transit 6 Waste 2 Water 37 Water Conservation 6 Water Pollution Control 1

MORE ABOUT THE NETWORKS!

2014 has been an exciting year at CSDA with the unveiling of District NetWorks. The program transforms CSDA’s six former regions into networks, where local leaders like you can collaborate and stay informed on key local and state issues.

This issue debuts the Coastal Network and Southern Network (previously referred to as Regions five and six, respectively). In each network, members have access to three delegates—Members of the CSDA Board of Directors—who can link you and your district to CSDA resources to aid in local challenges.

If you missed previous issues debuting the Northern, Sierra, Bay Area and Central Network, you can find more information about District NetWorks on our website, under “About CSDA.”

SOUTHERN NETWORK

X San Bernardino

58

Did you know?

Los Angeles

54

CSDA AFFILIATE CHAPTER Orange

Y

28

San Diego

64

- Independent Special Districts of Orange County (ISDOC) - San Diego Chapter of CSDA

Riverside

62

Z

Imperial

16

NETWORK DELEGATES Elaine Sullivan Leucadia Wastewater District (LWD) “It has been my privilege to serve on the CSDA Board of Directors since 2013. For over 26 years I have served as both president and as a member on various committees with the Leucadia Wastewater and the Encina Wastewater Authority’s Board of Directors.

My public service experience also includes serving on the California Water Reuse Finance Authority Board, CSDA San Diego Chapter Scholarship Committee and the Carlsbad Chamber of Commerce Ambassador Committee. I have a passion for serving X CSDA members and continuing the goals of special districts throughout the state.”

Y

Z

Bill Nelson Orange County Cemetery District “I have served for more than ten years on the Orange Country Cemetery District Board of Trustees. Currently I am chair of the board and its finance committee, where I developed an investment strategy that has already yielded an additional $1 million interest income.

I have worked diligently to strengthen the District’s financial status and was instrumental in the District’s recent designation as a District of Distinction and receipt of the District Transparency Certificate of Excellence. I am committed to building on CSDA’s present foundation of educational programs and legislative advocacy.”

Jo MacKenzie Vista Irrigation District “During my tenure on the CSDA Board of Directors, special districts have continued to gain recognition as the third leg of local government. During my year as president of CSDA, I was recognized as Special District Official of the year by PublicCEO. I am dedicated to building on the present foundation of educational programs and public outreach. I was elected to the Vista Irrigation District (VID) in 1992 and I am one of the principal negotiators for the San Luis Rey Water Rights Settlement Agreement between VID, five tribal bands, the City of Escondido and the federal government. In addition, I presently serve as Alternate LAFCO Commissioner representing special districts after serving 14 years on the San Diego LAFCO Special District Advisory Committee.”

California Special District – September-October 2014

SPECIAL DISTRICTS 276 total independent special districts

SOUTHERN NETWORK DISTRICTS Airport 3 Air Quality 2 Cemetery 18 Community Services 39 Fire 20 Healthcare 16 Harbor 1 Irrigation 10 Library 7 Mosquito 11 Public Utility 3 Resource Conservation 14 Recreation & Park 14 Sanitary 10 Storm Drain 1 Transit 7 Waste 1 Water 99

UPDATE

As the fourth edition in a year-long series featuring CSDA’s long-range policy priorities, this article focuses on Infrastructure, Innovation and Investment and its impact on special districts.

CSDA’s long range policy goal is to “Encourage prudent planning for investment and maintenance of innovative longterm infrastructure. Support the development of fiscal tools and incentives to assist special districts in their efforts to meet California’s changing demands, ensuring the efficient and effective delivery of core local services.”

During the Great Recession, infrastructure funding was often neglected. Now, with an improving economy, for the first time in seven years the state closed the fiscal year (FY) with a multi-billion dollar surplus, reviving opportunities for infrastructure investment such as the statewide water bond.

Revamp of Compliance Monitoring Unit and Labor Compliance Program Along with new infrastructure revenues, the Legislature has implemented new public works regulations for awarding agencies.

Senate Bill 854, a budget trailer bill signed by the governor, requires awarding agencies to provide notice to the Department of Industrial Relations of all public works projects within five days of the award.

Agencies must file electronically using the department’s PWC-100 form.

It requires contractors and subcontractors to annually register with the Department of Industrial Relations and pay a $300 fee in order to bid for and work on public works projects. The registration fee will help fund a new program for the department’s monitoring and enforcement of prevailing wage laws.

Awarding agencies can only use registered contractors and subcontractors on projects with bids due after March 1, 2015 or awarded on or after April 1, 2015. All bid invitations and documents must include a notice of the registration requirements.

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- Booker T. Washington

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

10

Proposition 1 – Water Bond Update California’s worst drought in 200 years magnified the shortcomings of our current water infrastructure. With more than 50 years since Californians approved construction of the State Water Project, our state’s needs are outgrowing its infrastructure, prompting a bi-partisan deal to back a new $7.5 billion statewide water bond.

Continuing to exercise fiscal prudence, Governor Brown urged the Legislature to replace the $11.1 billion bond slated for the November election, with a smaller bond.

Through a hard-earned compromise between Republicans, who called for $3 billion in storage projects, and Governor Brown, who initially offered $2 billion, the Legislature passed a $7.5 billion package with $2.7 billion in water storage.

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

Legislators and the governor also strengthened provisions within the new bond measure that ensure it will neither help nor hinder the separate and distinct Delta Tunnel project. This “Delta neutral” feature earned the support of Senator Lois Wolk and other Delta legislators. Ultimately, the bond passed unanimously in the State Senate and received just two “no” votes in the Assembly.

Now dubbed, Proposition 1, the $7.5 billion bond will replace the original $11.1 billion bond that the Legislature approved in 2009, but delayed in 2010 and again in 2012.

In addition to funding water storage, the bond package includes: Regional Water Reliability - $810 million • Integrated regional water management $510 million.

• Stormwater capture $200 million.

• Water conservation $100 million.

Safe Drinking Water - $520 million • Provide clean, safe and reliable drinking water to all Californians. With minimum to leverage federal funds for safe drinking water and clean water programs and for disadvantaged communities.

• Small Community Wastewater Program $260 million.

• Drinking water public infrastructure $260 million.

Water Recycling - $725 million • Statewide water recycling projects and activities.

Groundwater Sustainability - $900 million • Prevent and reduce groundwater contaminants $800 million.

• Provide sustainable groundwater management planning and implementation $100 million.

Watershed Protection, Watershed Ecosystem Restoration, State Settlements - $1.495 billion • Conservancies $327.5 million.

• Wildlife Conservation Board $200 million.

• Department of Fish and Wildlife $285 million.

• Department of Fish and Wildlife $87.5 million.

• Rivers and creeks $120 million.

In light of the many bond proposals circulated in recent years, the CSDA’s Legislative Committee drafted CSDA bond policy principles. At time of print, CSDA’s Board of Directors was in the process of approving these principles, as well as a position on Proposition 1.

California Special District – July-August 2014

Also on the November ballot, Prop 46, sponsored by the Consumer Attorneys of California, seeks to increase the award limits for medical malpractice lawsuits under the Medical Injury Compensation Reform Act (MICRA). The passage of this measure could significantly increase costs for employers, including special districts and other public agencies, by diverting limited resources to even higher healthcare costs. CSDA has adopted an OPPOSE position.

Proposition 46 – Medical Lawsuit Awards This measure seeks to increase the noneconomic, also known as pain and suffering, award limits for medical malpractice lawsuits under MICRA from $250,000 to $1.1 million per case, with annual adjustments for inflation thereafter.

Enacted in 1975, MICRA addressed medical liability insurance costs that were closing the doors of community clinics, health centers, and doctors’ offices. Before MICRA was enacted, many physicians, particularly those in rural areas or in high-risk specialties such as obstetrics and neurosurgery, stopped medical practice in California because they were unable to obtain medical liability insurance or simply could not afford it.

States with lower medical malpractice premiums, like California, according to the Journal of the American Medical Association, tend to have more doctors per capita. The MICRA protections have also meant medical malpractice victims receive more award money and receive it sooner.

Unfortunately, Prop 46 places these protections and services at risk by opening the door for more medical malpractice lawsuits, driving costs for employers, including special districts, and diverting limited resources that could otherwise be invested in infrastructure and core local services.

CSDA adopted an oppose position to Prop 46, joining a diverse coalition of stakeholders who support preserving access to healthcare and limiting crippling malpractice lawsuits that could make workers’ compensation coverage and employee health benefits even more costly to provide.

TAKE ACTION: To the get the latest on ballot measures impacting special districts, please visit the Grassroots Action Center at www.csda.net.

?

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

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

Ask theExperts For advisory committees, must a district put out an agenda or take minutes? If the answer is no, does the secretary have to be present to take notes?

As a general rule, all board committee meetings should comply with the Brown Act unless there is a compelling reason why they cannot. That means an agenda is posted and some form of notes or minutes are taken by the board secretary or a designee. That said, the use of non-Brown Act advisory, or “Ad-hoc” committees of the district board of directors can be very helpful in performing research and evaluating options for one-time issues that cannot easily be scheduled or conducted in a typical Brown Act compliant committee meeting. For non-Brown Act advisory committee meetings, no agenda or minutes are required; but I strongly suggest them as discussed below.

An appropriate advisory committee example would be a committee of two board members who have a relationship with the local city mayor and city manager and the district is considering the use of city property as a future park. To get the city mayor and manager, and

committee and district manager together with 72 hours advance notice is tough enough, but there is nowhere on site to post an agenda, and you will be doing a walking tour over hill and dale so even if you could post an agenda on a tree, the public would have difficulty finding you on the site. Plus, you are just talking preliminary suitability - not negotiating the transaction.

Your committee is saving the board time and adding different viewpoints to the issue to help the board make an informed decision when they consider the deal in a regular board meeting. Non-Brown Act advisory committees do not have any authority to act or make decisions on behalf of the board. They serve only for the issue they are assigned, make a report and are dissolved.

As a matter of meeting management, I develop an agenda and distribute to the meeting attendees to make sure we cover all the topics for which the meetings were scheduled.

In addition, the agenda then can serve as the template for your meeting notes (not official minutes approved by the board, but distributed to them for disclosure). I make sure notes are taken, either by myself, a member of the committee or other district staff so that there is a record to help us develop our recommendation to the full board.

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12

Our communities have an increasing expectation of transparency and accountability in their special district. Any non-Brown Act compliant meeting of a committee will usually raise public concern.

When an advisory committee is determined necessary and beneficial, make sure that when its work is done, a clear and complete committee report and recommendation is prepared and publicly discussed at a full board meeting - even if the committee’s recommendation is to do nothing!

Kampa Community Solutions was founded by Peter J. Kampa, a 20 year veteran special district manager, to assist communities in developing partnerships with their special districts and developing effective, collaborative solutions to all public service challenges.

DISCLAIMER: This publication is provided for general information only and is not offered or intended as legal advice. Readers should seek the advice of an attorney when confronted with legal issues and attorneys should perform an independent evaluation of the issues raised in these materials.

MOVERS & SHAKERS Valerie Lara Minton, program director at Sonoma Resource Conservation District, has been appointed to the North Coast Regional Water Quality Control Board.

Longtime Placer County Water Agency (PCWA) employee Dave Thompson has been promoted to deputy director of field services. Thompson has been with PCWA since 1985.

PCWA has also promoted employee Jeremy Shepard to engineering services manager.

Shepard has been with the agency since 2012.

The Metropolitan Water District of Southern California’s board of directors has elected Randy Record as chair. Record has served on the board since 2003.

Ambrose Recreation and Park District announces the hiring of Doug Long as general manager. Long recently retired from the City of San Carlos, where he served as parks and recreation director.

Mt. View Sanitary District announces Neal Allen as general manager. Allen previously served the district as assistant district manager. He fills the position for Michael Roe, who retired.

East Bay Regional Park District Board Member Carol Severin was recently recognized with two awards for her service to the California parks and recreation profession. The California Association of Recreation and Park Districts awarded Severin with the Jim Meredith Award of Distinction and the Society for Outdoor Recreation Professionals recognized her with its lifetime achievement award.

California Special District – September-October 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!

Scott Huele, formerly general manager of the Big Bear Municipal Water District, now serves as general manager of Big Bear City Community Services District.

Mayor of the City of Corning, Gary Strack, recently recognized Corning Healthcare District Board Member Patricia Rasmussen for ten years of service to the board.

Rasmussen joined the board in 2004 and has since served Patricia Rasmussen and Gary Strack as board president five times, vice president twice and secretary-treasurer twice.

In Brief Healthcare District Offers Aquatic Therapy

Recycled Water Fill Station Open and Free to Residential Customers Dublin San Ramon Services District’s recycled water fill station is now open and available to residential customers.

“Fifteen years ago, this community began investing in recycled water infrastructure – pipes, reservoirs, pump stations,” says Rhodora Biagtan, Interim Engineering Services Manager, “and initially the recycled water was used by commercial customers with large irrigation needs – parks, school grounds, golf courses, roadway medians. Now we are excited to be the first in the state providing recycled water to our residential customers, especially during this extreme drought.” Residents may obtain recycled water by completing a short training, signing a “Recycled Water Use Agreement” form, and obtaining a wallet card that verifies they’ve been trained. The wallet card must be presented at each visit to refill recycled water containers.

Mojave Desert AQMD Student Solar Cook-Off Competition a Tasty Success More than 30 students gathered this June to face off in a 2nd annual “Solar Cook-Off” Competition. Armed with materials such as cardboard, plexiglass, aluminum foil and home insulation, the fourth- through twelfthgraders from across the High Desert participated in the event. The one-of-a-kind event was hosted by the Mojave Desert Air Quality Management District and the Mojave Environmental Education Consortium.

During the day-long cooking process, teams were judged on the creativity and design of their solar cookers by a panel of four judges. Four separate judges participated on the recipe panel. Recipes included zesty chocolate chip cookies, variations of vegetable lasagna, ground beef enchiladas, vegetable chowder, kabobs, bruschetta and snicker-doodle cookie ice cream sandwiches. “I think it was really good because it gives kids a chance to experience what it is to be in the environment,” said Michael Rodriguez Jr., 11, of Cameron Elementary School in Barstow. “My teacher really got me into solar ovens, wind power and water power. If I had one of these at home, I would cook regular snacks in it.” Each team constructed their own solar ovens which were required to be no bigger than two-by-two feet in size and 15 pounds in weight.

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Tehachapi Valley Healthcare District has expanded its physical therapy program to include aquatic treatment options.

Aquatic therapy is an extension of physical therapy that benefits some people over other related treatments. Says Physical Therapist Chris Gray, “There are some patients that show better progress in water, such as if they have severe arthritis.” Aquatic therapy hadn’t been offered locally in years and patients in the area were traveling to other cities for their treatments. “[These patients are] driving an hour each way with all that abrasion on their bodies when they could be in town having that same kind of therapy,” says Gray. He continues, “I would even argue that it’s better for a patient to stay here and do land therapy than to drive down the hill for aquatic therapy.” The advantage of aquatic therapy is it takes strain off the bones and joints that occurs in normal gravity. “If you have someone doing standing exercises on land in full gravity, they may not be able to complete the therapy. In a water environment you take away the gravity and they can respond better,” says Gray.

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.

LiDAR to Improve Open Space and Resource Management A new technology known as LiDAR (Light Detection and Ranging) is allowing Sonoma County agencies, including Sonoma County Agricultural Preservation & Open Space District and Sonoma County Water Agency, access to detailed vegetation and topographical maps.

These maps will help local agencies make more informed decisions on a variety of issues including the purchase of conservation easements, water resource management, drought mitigation and flood control.

The LiDAR technology also maps terrain to 1-foot contours, which is useful for site design, building plans, parks management and more. “LiDAR gives an incredible detail of what’s on the ground, in addition to the ground itself,” says Open Space District conservation Planner Tom Robinson. “LiDAR gives you a 3-D representation of vegetation.” The technology is providing the agencies with better information so they can do their jobs more effectively at a lower cost.

California Special District – September-October 2014

Harbor Will Soon Be Even More Accessible to Visitors Crescent City Harbor District is working this summer to make its harbor more accessible and friendly to visitors. The district’s harbor is very active in the winter, used predominantly by commercial crab fishers. In order to stay economically viable, the harbor needs to also be more welcoming for visitors. To accomplish this, the district is working on a half-mile section of coastal trail and building a promenade that will include viewing platforms, weather shelters and interpretive signage. The majority of the project is funded by the California Coastal Conservancy.

Sources: Del Norte Triplicate, Dublin San Ramon Services District, Elk Grove Citizen, Mojave Desert Air Quality Management District, Tehachapi News, The Windsor Times

Getting the vote for open space

Interview with Stephen Abbors, Midpeninsula Regional Open Space District This June, Midpeninsula Regional Open Space District experienced a victory that would benefit its community for years to come. The district had placed a $300 million general obligation bond measure on the ballot and took a chance asking the public to approve it. The public did.

California Special District asked Midpeninsula Regional Open Space District to explain the process they went through developing the measure and what they believe contributed to its passage. We also interviewed Darin Cline, the measure’s campaign manager, and asked him what other districts can do to experience similar successes.

What is Measure AA and what does it accomplish?

Measure AA is a $300 million general obligation bond measure offered by the Midpeninsula Regional Open Space District (Midpen) and approved by the voters on the June 3, 2014 ballot. Measure AA will provide open space access, preservation and restoration within Midpen’s 550 square-mile jurisdiction that includes parts of Santa Clara, San Mateo and a small section of Santa Cruz counties. It includes 17 cities and is home to approximately 720,000 residents. Midpen’s 26 preserves provide much of the green backdrop to the Silicon Valley and San Mateo coastline, and offer excellent passive recreation and outdoor education opportunities close to home.

Stephen Abbors, General Manager

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Money from the sale of bonds will help us open currently-closed areas, purchase land as it becomes available, including redwood forests, improve access to hiking and biking trails, preserve agriculture along the San Mateo Coast, and pursue restoration projects for streams, creeks, ponds, and other waterways critical for long-term protection of our water supply.

The $17 per $100,000 of assessed property value the voters approved back then allowed Midpen to begin buying and preserving open space as it became available and was still affordable. But the cost of purchasing land, which was mitigated through the carefully planned used of debt financing, left Midpen with only modest funding to open its preserves, add trails or do restoration projects as quickly as the public and Midpen would like.

There are 25 project areas targeted for Measure AA funds identified

by Midpen staff, environmental experts, an advisory committee, and most importantly, community members who engaged in a very public process. The projects are evenly distributed throughout Midpen.

By how much did the measure pass?

We needed two-thirds to pass – a high hurdle by any standards. We knew it would be close and it turned out to be a nail-biter. The day after the election, the measure was passing by a mere 120 votes. However, as vote by mail and provisional ballots were counted during the following week, the percentage continued to grow. By July 1 the Registrar of Voters for each county certified the results, and Measure AA officially passed with a combined 68 percent and by 1,439 votes.

Silicon Valley area. Land prices were likely to become astronomical and unaffordable as a public investment.

The $17 per $100,000 of assessed property value the voters approved back then allowed Midpen to begin buying and preserving open space as it became available and was still affordable. But the cost of purchasing land, which was mitigated through the carefully planned used of debt financing, left Midpen with only modest funding to open its preserves, add trails or do restoration projects as quickly as the public and Midpen would like.

By 2007, the Board and I saw that it was time to begin refocusing and turning toward a more balanced strategy of creating public access and restoration while continuing to acquire land when possible. More people visited the preserves each year and we owned natural and cultural assets that needed care and management.

The voters approved forming and funding Midpen in 1972 because they understood the value of protecting green hills and the region’s natural assets, and they recognized nature was quickly disappearing in the fast-growing

The process in the last two years to determine whether to go continued on page 18

Interview with Darin Cline Campaign Manager, Midpen’s Measure AA

What was the process that led up to MROSD putting Measure AA on the ballot?

The decision to go to the voters for an increase in assessment for the first time in 40 years was a natural next step in Midpen’s promise to the voters from the beginning. So the process to get to the ballot in 2014 has a longterm and shorter-term answer.

In 2012, we began a comprehensive “vision planning” process involving numerous stakeholders and the general public to help us understand what the people wanted in the preserves. We commissioned telephone surveys, talked with visitors to the preserves, neighbors and residents, and ultimately identified 25 priority projects that would cost approximately $300 million to complete, understanding that we were embarking on a journey toward a likely ballot measure.

What is your background working on campaigns?

Darin R. Cline, Campaign Manager for Measure AA, is a nationally recognized political consultant, trainer and speaker. He can be reached at darinrcline@gmail.com or give him a call at 415-742-2572 if you have any questions.

I am a veteran of over 100 local, state, and federal campaigns, including bond measures and initiatives. During my career, I also held intergovernmental and community building positions in local and state government, which give me unique insight into government operations and how they can best complement political campaigns when trying to achieve ballot success.

Based on your experience with Measure AA, what are some of the contributing factors that caused the measure to pass?

The Midpeninsula Regional Open Space District (Midpen) and its community partners led by the Peninsula Open Space Trust (POST) and the Sempervirens Fund created the win when they did the research required before the start of the campaign. Early on they put together a sound feasibility study to determine the conditions needed to pass the measure, built community consensus through early outreach and awareness, and wrote a strong ballot measure that reflected the community’s priorities and interests. continued on page 19

California Special District – September-October 2014

Stephen Abbors [continued] forward with a bond measure led us to contract with Strategy Research Institute to test ballot language based on core values identified during the visioning process. We learned that the community’s priorities are to protect redwood forests, preserve scenic beauty in the region, offer more trails and recreational access, preserve the rural heritage of our coastal area, and provide an independent oversight committee to ensure proper use of the funds.

Polls also showed that voters would accept a modest increase of $3.18 per $100,000 of assessed property value that would raise the needed $300 million over 20-30 years – if Midpen was diligent and conducted an aggressive public education effort.

How important was the legwork MROSD did before putting Measure AA on the ballot?

The legwork prior to putting Measure AA on the ballot was extremely important. We owed it to our constituents and taxpayers to understand what they wanted for the future of open space and how much they were willing to pay for it. We worked hard to be inclusive in our visioning planning to identify potential projects that were doable and that the public cared about. We used an interactive website, created a community advisory committee representing many stakeholder groups, held six public meetings and multiple board workshops throughout Midpen, and talked to people one-on-one over the phone and at community events.

As a result we were able to build a high level of awareness about Midpen, its preserves, challenges and resources, and Midpen now has a better understanding of our community. Staff became skilled at talking about Midpen, attending outreach events and getting to know community leaders before asking the people to vote for the additional assessment.

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What did the district do to garner support for the measure?

As a public agency, Midpen cannot campaign or advocate in any way with publicly funded resources, including staff time. A separate campaign committee called YES FOR OPEN SPACE emerged in the community and provided a hub for campaign activities. It was, however, Midpen’s duty to inform the public about the measure. Our information outreach program began with helping our staff understand what a general obligation bond was, how it would be used, what our community members wanted from Midpen, and how to talk about it. The general manager was very open with staff about the challenges and opportunities ahead. He and Midpen board members spoke at city council meetings, service groups, and partner agencies about the vision plan projects and proposed funding measure. The public affairs department prepared outreach materials such as fact sheets and questions and answers that were easy for staff, especially rangers and field staff, to distribute to preserve visitors.

From November, 2013, through June, we attended more than 26 community fairs and festivals and made ourselves continually available if a news reporter or constituent called. We believe this personal touch and careful listening put us over the two-thirds threshold. It is a practice of accessibility we will carry forward.

What are the top tips you would give another special district who might be thinking about running a similar measure?

Do your research. Invest in good polling to drill down to your constituents’ core values and determine what they are willing to pay to support those values. Exit polls showed that one reason voters approved Measure AA was that it was affordable.

In addition, polling data helped draft the ballot measure language. The 75-word ballot statement is critical to a measure’s success. Be sure it resonates with your voters! Start public engagement early. You want constituents to know who you are

Interview with Darin Cline continued and what you offer, no matter what service you provide. Have a thorough plan or project list on what will be funded through the measure. The more detail you can give the better. People want to know where their tax dollars are being spent. Be part of the community.

Attend community events, visit service clubs and city or town councils on a regular basis. Develop strong relationships with elected officials and community leaders as part of general business practices. Use your website, social media, and newsletters regularly to communicate about your district. Work to build and grow your email network. Prepare and engage staff, advisory committees, volunteers, etc. They touch an amazing number of people in their professional and personal lives.

Work to build and grow your email network.

Prepare and engage staff, advisory committees, volunteers, etc. They touch an amazing number of people in their professional and personal lives.

Have comprehensive yet concise fact sheets, questions and answers, talking points, brochures, and other outreach materials available everywhere you are able to place them, and make them easily available on your website. Allow for public dialogue; offer an email address for people to ask questions or an easy number to call. Designate staff to be available to answer questions at all times. Consider the media your friend and be available to talk in a positive way about the funding measure as well as explain the consequences if the measure fails.

Was there anything your district was surprised about, that you can give other districts a heads-up about?

We always hear that every single vote matters, but it is still surprising when you find yourself as a case study. The final poll, taken just weeks before the election, showed that we were shy of the two-thirds mark by several thousand votes and a low turnout was projected, but that Measure AA could still pass with an aggressive Get Out And Vote push during the final two weeks. Volunteer supporters sprang into action and made a real get out the vote effort, which tipped the scales to a victory. The surprise was the outpouring of community support to see the measure to victory something that was more than a pleasant surprise to the board and staff.

Explain why there is an oversight committee now that the measure has passed.

What does the committee do? Why is it important to have?

According to the polls, this was very important to our voters and was included in the ballot language as a promise to them. An independent oversight committee, comprised of seven members who live within Midpen’s boundaries, will review spending to ensure the money is being wisely used on the projects approved by the voters. It’s a “promises made, promises kept” guarantee which should be considered by anyone who uses taxpayer dollars for a set list of projects.

California Special District – September-October 2014

This early success allowed the campaign to select the best election period with the best voter turnout, fully fund the campaign budget and avoid creating opposition. It freed the campaign to focus exclusively on mobilizing our base and persuading undecided voters.

What are important things for agencies to contemplate when considering placing a measure on a ballot?

It is critical to go through a disciplined process to judge your viability when placing a measure on the ballot. There are two sides to evaluate: policy and politics. On the policy side you need to ask yourself: does the measure have voter appeal, is the measure simple and straightforward, is it cost effective for the voter, and can you attract the necessary community resources? On the political side you need to ask yourself: Is the political climate right for passage, do you have strong ballot language, can you attract the necessary financial resources, does it help or hurt candidates on the ballot, does it help or hurt other ballot initiatives, and are you prepared to do what it takes to win.

What are some pitfalls public agencies should avoid when placing a measure on a ballot?

First, you need your bond measure to have clear governance and accountability to the taxpayer. Too many agencies place measures that look like “blank check” proposals to voters. Second, you need to address voters who may never use your agency’s service, but should invest tax dollars in it. For example, in transit campaigns there is the often-copied slogan, “Transit, Some of us ride it, all of us need it.” You need to make sure you have a broad based message that addresses them. Finally, be prepared to win. There are agencies that go to the ballot just to see what happens. If you don’t go to the ballot with a reasoned effort to win - you will not only lose, but you will alienate your supporters for years to come.

What are the top three things you recommend agencies do to increase the odds of a measure passing?

First, pick the election period that has voter turnout most favored to pass your bond measure. Second, make sure that you have a strong ballot question that reflects the community’s priorities and ensures government accountability. Third, take advantage of technology to target your desired voter and deliver your message. Digital ads have come a long way - and made a measurable difference in Measure AA’s success.

Are there any “surprises” that commonly come up when running a ballot that agencies can prepare for?

Early research and study will prepare you for any surprise, except one. In my experience, the “surprise” you must prepare for is how your committee handles stress when you are in the crucible of a campaign. A lot of committees hire consultants based solely on their win/loss record. I have found greater success when you put together an experienced team that can work well together. When your campaign team is working in collaboration - and not fighting amongst themselves - you will find it easy to handle any type of unexpected surprises that come your way.

At-Large Voting and the Rising Tide of VRA Claims

By Sean De Burgh, Cota Cole LLP

I Before addressing the specifics of recent challenges to at-large voting systems, it is important to understand the legal framework from which these issues have arisen.

n the last several years, we have witnessed an upward trend in legal challenges to at-large voting systems throughout California.

These legal challenges have been aimed at public agencies with significant minority populations or with a history of minority candidates losing elections. The principle concern at issue in each of these cases has been minority vote dilution, which refers to those instances where minority voters as a group, although not restricted from voting, are nevertheless unable to elect their preferred candidates as a result of being outvoted by the majority.

THE LEGAL LANDSCAPE Before addressing the specifics of recent challenges to at-large voting systems, it is important to understand the legal framework from which these issues have arisen. Challenges to at-large voting systems are generally premised on violation of the Federal Voting Rights Act of 1965 (FVRA) and/or the California Voting Rights Act (CVRA), explained in greater detail below.

The Federal Voting Rights Act (42 U.S.C. ยง 1973 et seq.)

The FVRA is widely considered to be the most successful civil rights legislation in American history and was enacted during a time when minorities were substantially disenfranchised. The FVRA prohibits state and local governments from imposing voting laws that result in discrimination against minority groups. Section 2 of 20

the FVRA addresses the problem of vote dilution by prohibiting districts from redistricting or using a method of elections to impair the ability of a protected minority group to elect their candidates of choice on an equal basis with other voters.

Over the years, the FVRA has been amended in response to various court rulings. As one example, the Supreme Court of the United States ruled in Mobile v. Bolden, 446 U.S. 55, 66 (1980), that in order to prevail on vote dilution claims, plaintiffs must present proof of the voting law’s discriminatory intent – a very difficult task. Responding to the Mobile case, Congress amended the Act in 1982 to provide that plaintiffs are not required to prove discriminatory purpose in order to establish a violation of Section 2.

A few years later, the Supreme Court articulated the test for determining whether an at-large method of election dilutes minority voting strength in the landmark case Thornburg v. Gingles, 478 U.S. 30, 50 (1986). Under the Gingles test, agencies must initially answer the following questions: 1) Is the minority group sufficiently numerous and geographically compact to constitute a majority in a single-member district?

2) Do the members of the minority group tend to vote alike? In other words, are the members of the minority group politically cohesive?

3) Does the majority vote “sufficiently as a bloc to enable it” to usually defeat the minority’s preferred candidate?

If the answer to these three questions is yes, then the court must secondarily determine whether, under the totality of circumstances, the minority group has a diminished opportunity to elect candidates of its choice. Only when the plaintiff satisfies all three Gingles conditions and the totality of the circumstances test must a public agency abandon its at-large method of voting and switch to district-based voting.

California Voting Rights Act (Elections Code § 14025 et seq.)

Similar to the FVRA, the CVRA prohibits public agencies from imposing an at-large method of election “that impairs the ability of a protected class to elect candidates of its choice or its ability to influence the outcome of an election.” (Elections Code § 14027.)

However, the CVRA expands the protections against vote dilution provided by the FVRA by eliminating the requirement that plaintiffs show a majority-minority ward or division is possible (i.e., the third prong of the Gingles analysis). Plaintiffs may prove a violation under the CVRA simply by proving the existence of “racially polarized voting” (see Election Code § 14028 (a)), California Special District – September-October 2014

which is for all practical purposes, a combination of prongs 1 and 2 of the Gingles analysis described above. Plaintiffs are not required to demonstrate geographical compactness or concentration of the minority group to prevail under the CVRA. The recent challenges to atlarge voting have been brought under the CVRA because it does not require that the minority group be sufficiently numerous and geographically compact to constitute a majority in a singlemember district in order to establish a violation. In short, it’s easier for plaintiffs to make their case under the CVRA than the FVRA. continued on page 22

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At-large voting and VRA claims [continued] However, just what does “racially polarized voting” mean? It means voting where there is a difference in the choice of candidates or other electoral choices that are preferred by voters in a protected class (minority group), and in the choice of candidates and electoral choices that are preferred by voters in the rest of the electorate (majority). For public agencies that hold at-large elections (which are most), where all voters elect each member of the governing board, bloc voting by the majority can render the minority vote meaningless.

Whether racially polarized voting is occurring is determined by “examining results of elections in which at least one candidate is a member of a protected class or elections involving ballot measures, or other electoral choices that affect the rights and privileges of members of a protected class,” (Elections Code § 14028(b).) The CVRA specifically identifies the success rate of minority candidates that are preferred by the minority voting bloc as a circumstance that should be carefully considered when determining whether racially polarized voting is occurring.

Where it is determined that “racially polarized voting” exists, the prescribed remedy is for local governments to switch to districtbased voting. (See Elections Code § 14029.) In a district-based electoral system, local governments split the jurisdiction into multiple majorityminority districts and allow voters only to elect candidates in the division where the candidate resides.

It is important to note that both the FVRA and CVRA allow successful plaintiffs to recover attorney fees.

RECENT DEVELOPMENTS With this legal framework in mind, we now turn to the reality

that numerous public agencies throughout California, including special districts, have been threatened or sued for alleged violations of the CVRA within the last several years. To emphasize the importance of this trend, I would note that of those agencies that have had their at-large method of election challenged under the CVRA on the basis that racially polarized voting exists, I am unaware of any that have successfully defended the case.

For the most part, these cases have resulted in changes to the agency’s method of election and the agency paying the plaintiff’s attorney fees.

This rising tide of VRA claims against public agencies seemingly began in 2004, when the Lawyers Committee for Civil Rights (LCCR) filed suit against the City of Modesto in Sanchez v.

City of Modesto (2006) 145 Cal. App.4th 660, on behalf of three Latino residents, claiming the city’s racially polarized voting was limiting the ability of Latinos to be elected to office. At the time the City of Modesto was the fourth largest city in the state utilizing the at-large voting system. Although Latinos made up 25.6 percent of the city’s population of 200,000 at the time of the suit, only one

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Latino had been elected to the city council since 1911. The case against Modesto ended in a settlement after citizens voted to switch from at-large to district-based voting on a ballot measure. Despite settling the case, the City of Modesto had to pay $3 million in fees to the plaintiff’s lawyers and $1.7 million for its own lawyers.

In 2008, the LCCR again filed suit on behalf of three Latino residents against the Madera Unified School District in Rey v. Madera Unified School Dist. (2012) 203 Cal.App.4th 1223, arguing that the district’s at-large method of electing its board members violated the CVRA. The plaintiffs in the case applied for a preliminary injunction to enjoin the district’s November 2008 elections. Rather than opposing this preliminary injunction, the district quickly agreed to change the election process for school board members.

However, because of the CVRA’s attorney’s fees provision, the district nevertheless had to pay $162,500 to the plaintiffs’ lawyers.

Since the City of Modesto and Madera Unified School District cases, public agencies have been on continued on page 32

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HIGHLIGHT

Subject to credit approval.

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Especially developed by Bank of the West for CSDA members, the District Purchasing Card program aggregates the spend of all participating agencies to determine the rebate rate, so the more agencies using the card, the greater the rebate potential.

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The card can be used for vendor payments, travel expenses, procurement related items, online purchases, utility bills and much more. Application forms and step-by-step instructions are available on the CSDA website at www.csda.net.

For more information, contact CSDA Member Services at cathrinel@csda.net.

California Special District – September-October 2014

[Solutions & Innovations]

Help wanted: Seeking candidates for a board vacancy Open House Another great option for districts to get potential candidates interested in applying for a vacancy is to hold an open house. Schedule a time at your district’s offices for members of the public to tour the facilities, learn about the district’s services, get to understand the projects currently under way and learn more about what the board does. Not only does this allow people who are interested in serving on the board to attend, but it’s a great public outreach event to community members in general.

Recruit

A

strong, engaged, dedicated board of directors is one of the cornerstones to the successful public service of a special district. It is important to have each seat on the board filled by someone dedicated to seeing the district succeed in serving in the public’s best interest. When a board member vacates a seat, there is opportunity to bring in someone to fill that seat with a fresh perspective and unique experiences of their own, which will help contribute to the board’s guidance of the district. For some districts in California, getting interest in filling a vacant board seat is a piece of cake.

For others, it takes plenty of effort and public outreach to notify individuals that a seat is available. How can districts reach out?

Press Release Possibly the most commonly-used way of getting the word out about a board vacancy is through a press release. A district can draft an announcement to send out to local newspapers, which will usually post the announcement. The press release should include an official announcement of the vacancy and information on the term of office, requirements to hold the position, the process for applying, and the application deadline.

It is also always good to include information about the district and the selection process to fill the vacancy.

The press release can also be posted on the district’s website and, if timing allows, in the district’s newsletter or any similar communications going out to the public.

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Have there been individuals from the community who have shown interest either presently or in the past in running for the board? Reach out to them and inform them of the vacancy. Says Peter Kampa, president of Kampa Community Solutions, LLC: “Seek out those interested persons! Tell them you appreciate their interest in the district and make them aware of the vacancy and the application or election process. Any past candidates for board election or past board members are also potential candidates for appointment. Not only candidates in recent district elections, but those from prior district elections, or non-successful candidates from city council or county supervisor elections as well. Seek out the community leader from the Chamber of Commerce, service clubs, etc. and inform them of the huge contribution they can provide; the importance of a full board and the appointment process.”

Chamber of Commerce Many Chambers of Commerce hold leadership programs.

These programs offer an outstanding opportunity for members of the community to learn about leadership and opportunities in their area. Get involved in your Chamber of Commerce’s leadership program, if it has one. Placer County Water Agency is very involved with their local Chambers’ program and has attended at times to provide background on special districts and even the agency itself when circumstances warrant. These leadership programs can produce fine leaders and having a relationship with your Chamber can only be a benefit to your board when a vacancy arises.

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

Candidate’s Forum If your district has multiple candidates interested in filling the board vacancy, hold a Candidate’s Night or Forum, where members of the board can interview them. Invite members of the community to attend and allow them to ask questions of the candidates as well. Rancho Murieta Community Services District has held candidate’s forums and had great luck with community participation. Some questions the district poses to candidates are, “What is your view of the role of a director and how much of your time are you willing to devote?” and “What qualifications/experience do you bring as a candidate for this position?” Ensure there are plenty of engaging, informative questions for the candidates. Advises District Secretary Suzanne Lindenfeld, “Don’t have all the candidates answer the same question. Whoever goes first has the hardest time - everyone else

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California Special District – September-October 2014

answers based on that response and reaction - not what they really think.” Do everything possible to make the playing field level for interested candidates.

Keep it Simple As is true with most things, when filling a board vacancy, be sure to keep things as simple as possible. “Complex appointment processes with qualifications review, grueling interviews, supplementary questionnaires, background checks, etc. only serve to discourage potential candidates and are not specifically required by law. Make the process simple for the interested community member,” advises Kampa.

For information on what the law requires when filling a board vacancy: www.csda.net/uncategorized/fill-vacancy-board/.

[Community Connections]

A quiet intervention changes students’ lives “Before I would meditate, I would explode with anger and be furious at people” noted a student in an interview conducted by an independent film crew. “Then, I started meditation, and it got my ideas focused and I started doing school work better.”

Students, staff and principal sit together and are led in meditation with the help of a trainer from the Center for Wellness and Achievement in Education—the center that created the Quiet Time program—along with three psychotherapists.

The Sequoia Community Day School Green Street Academy in Oakland had a reputation. Its students are primarily from lower socioeconomic households and dysfunctional backgrounds.

Having records with incarceration or expulsion from schools within the Sequoia Union High School District, the students attending the academy are deemed at risk of not completing their education. However, through a local collaboration between the academy, a special district and a wellness center, these students have achieved remarkable changes in their lives.

Funded by a grant from the Sequoia Healthcare District’s Healthy Schools Initiative and matching funds from the school district, the Quiet Time pilot program allowed Sequoia Community Day Green School Academy students to make significant educational and personal strides.

The Quiet Time program dedicates 18 minutes twice a day to non-religious transcendental meditation.

For students, it is a quiet time of total peace and decompression. Encouraged but not required, the meditation practice allows students and staff to sit and meditate with their eyes closed, resulting in reduced levels of stress, increased focus and strengthened selfconcept.

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“Before Quiet Time, I didn’t really think about my future. I really didn’t have an idea of what I wanted to do. Then I started meditation and it made me think about what I wanted to do with my life and what I wanted to be,” a student interviewed noted.

Quiet Time was first introduced in San Francisco’s Visitacion Valley in 2007 with sixth and seventh grades, using the eighth grade as a control group. The school found that in just the first four months the sixth and seventh grade referrals and suspensions went down.

Now the program has started at three other schools and more than 10 additional Bay Area schools are on the waiting list. The base-line data showed sustained increases in academic scores and attendance, as well as mental and physical wellness. The successful results of the program among the schools implementing Quiet Time include decrease in violence, suspensions, discipline issues, negative self-image and truancy rates.

While these are impressive advances, both the students and teachers at Sequoia Community Day Green School Academy are most proud of the increased self-esteem.

“We went from a school where the police showed up; probation officers would often visit and arrest students.

Now, the school looks like just a really small school.

Quiet Time without a doubt closed and locked the door on ways things used to be,” a staff member to the school notes in the documentary.

Since 2010, Sequoia Healthcare District’s Healthy Schools Initiative has invested more than $9 million to

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.

support school districts within its geographic boundary to improve the physical and emotional health of students and families, reaching about 30,000 students per year.

of Education’s website. Continuation education is an alternative high school diploma program. It is for students who are sixteen years of age or older, have not graduated from high school, are still required to attend school, and who are at risk of not graduating.

The Healthy Schools Initiative provides funding for wellness coordinators and specialists, nurses, health educators, mental health counselors and physical education teachers.

Across the state, reasons vary as to why students attend continuation schools. Many students in continuation education are behind in high school credits. Others may need a flexible school schedule because they have jobs outside of school. Some students choose continuation education because of family needs or other circumstances.

Sequoia Community Day School Green Street Academy is one of 492 continuation schools in California, according to California Department

The Sequoia Healthcare District’s Healthy Schools Initiative funded Quiet Time at the Sequoia Community Day School Green Street Academy with $35,000,

matched by the district, of which $22,000 went to meditation training and a trainer from the wellness center, while $12,500 funded three psychotherapists to be at the school twice a week for therapy sessions.

The healthcare district’s wellness coordinators have successfully integrated the efforts of schools, families, health professionals and community agencies, enabling schools to protect, improve, and promote the safety and well-being of their entire communities.

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California Special District – September-October 2014

Legal Brief DEVELOPING DEFENSIBLE SPECIAL ASSESSMENTS UNDER PROPOSITION 218

By Kelly Salt, Best Best & Krieger LLP

Beginning as early as 1911, many special districts have used special benefit assessments as an alternative funding mechanism to pay for public improvements.1 This traditional funding mechanism, however, was significantly restricted in November 1996 when California voters approved Proposition 218. Proposition 218 amended the California Constitution by adding articles XIII C and XIII D. Article XIII D, section 4 established new substantive limitations on the use of the revenues collected from assessments, as well as on the amount of the assessment that may be imposed on each parcel.

Among other things, the substantive limitations require that only “special benefits” are assessable, and local governments may not impose assessments to pay for the cost of providing a general benefit to the

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community at large.2 An assessment engineer’s report must be prepared that separate the benefits such that only the special benefits are assessed.3 The report must quantify the proportionate special benefit derived by each parcel subject to the proposed assessment in relationship to the entirety of the capital cost of the public improvements or services being provided, and must calculate the amount of the assessment to be imposed.4 Additionally, no assessment may be imposed that exceeds the reasonable cost of the proportional special benefit that is conferred on a parcel.5 The special benefit and proportionality requirements are perhaps best understood as being interrelated, not separate, requirements. The proportionality requirement ensures that the aggregate assessment imposed on all parcels is distributed among all assessed parcels in proportion to the special benefits conferred on each parcel. The special benefit requirement is thus part and parcel of the proportionality requirement.6 Since the adoption of these substantive limitations, there have been several challenges to new assessments being proposed by local agencies. Many of these challenges have been to assessments imposed to provide improvements or services that the courts have determined provide general benefit. The decision in Silicon Valley Taxpayers Association v.

Santa Clara Open Space Authority, 44 Cal. 4th 431 (2008) best illustrates this issue.

The challenges raised in this case should be considered by any special district

The California Supreme Court refined the definition of “special benefit” by determining that “under the plain language of article XIII D, a special benefit must affect the assessed property in a way that is particular and distinct from its effect on other parcels and that real property in general and the public at large do not share.”

considering imposing a new or increasing an existing special benefit assessment to fund improvements or services.

In 2000, the Santa Clara Open Space Authority determined it needed additional funding to purchase open space land and considered forming a new assessment district for this purpose. The boundaries of the proposed assessment district were coterminous with those of Santa Clara County. The assessment engineer’s report determined that all parcels within the district received special benefits and all single family residential parcels received equal special benefits.

The assessments were challenged under the substantive limitations of Article XIII D, section 4.

The California Supreme Court refined the definition of “special benefit” by determining that “under the plain language of article XIII D, a special benefit must affect the assessed property in a way that is particular and distinct from its effect on other parcels and that real property in general and the public at large do not share.”7 By way of example, the court recognized that if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement through its direct relationship to the locality of the improvement (e.g., proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g., general enhancement of property values).8

The court concluded that the assessment engineer’s report had failed to recognize that the “public at large” means all members of the public and not just transient visitors.9 Further, the report assumed that people and property in the district would receive no general benefit and only special benefits. “But under these circumstances, ‘[i]f everything is special, then nothing is special.’”10 This aspect of the court’s decision calls into question assessments imposed for broad regional facilities or services such as assessments imposed for regional parks and fire services.

Kelly J. Salt is a partner in the Public Finance Practice Group of Best Best & Krieger LLP. She has served as bond, disclosure, and issuer’s counsel to public agencies throughout California for the financing of major public infrastructure through the issuance of bonds and other forms of indebtedness. In addition to her bond and municipal finance work, Ms. Salt’s practice areas include utility rate setting and compliance with Proposition 218 and Proposition 26, and drought management and water conservation programs.

The court also found that the assessment engineer’s report did not show any distinct benefits to particular parcels of property beyond the benefits of the general public using and enjoying the open space received. The report did not identify any specific open space to be acquired with the proposed assessment, and thus the report did not demonstrate any specific special benefits that assessed parcels would receive from their direct relationship to the locality of the improvement. Hence, the court concluded the assessment was invalid because the report failed to demonstrate that the assessed properties received a particular and distinct special benefit over and above that shared by property in general or the public at large.11

1 Examples of improvements funded by special assessments include water facilities, sewer facilities, undergrounding of utilities, park facilities, and landscape improvements.

Examples of services funded by special assessment include fire services, and maintenance of parks, water facilities, sewer facilities, storm water facilities, flood control facilities, landscape improvements, and street lighting improvements.

2 Cal. Const. art. XIII D, § 4(a); City of Saratoga v. Hinz, 115 Cal. App. 4th 1202, 1223 (2004).

3 Cal. Const. art. XIII D, § 4(a); Beutz v. Cnty. of Riverside, 184 Cal. App. 4th 1516, 1532 (2010) (“[S]eparating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.”) (emphasis removed). Thus, if special benefits represent fifty percent of the total benefits, a local agency may only levy an assessment for that half of the project or services. Golden Hill Neighborhood Ass’n v.

City of San Diego, 199 Cal. App. 4th 416, 439 (2011) (holding that, because Article XIII D, section 4 allows only special benefits to be assessed, even minimal general benefits must be separated from the special benefits and quantified so that the costs of general benefits can be deducted from the cost assessed against the properties).

4 Cal. Const. art. XIII D, §4(a).

5 Id. 6 Beutz, 184 Cal. App. 4th at 1522 (citations omitted) (citing Town of Tiburon v. Bonander, 180 Cal. App. 4th 1057, 1080-85 (2009)).

7 Silicon Valley Taxpayers Ass’n, 44 Cal. 4th at 452 .

8 Id. at 452 n.8.

9 Id. at 455.

10 Id. (quoting Ventura Group Ventures, Inc. v.

Ventura Port Dist., 24 Cal. App. 4th 1089, 1107 (2001)).

11 Id. at 455-58.

As a consequence of these court decisions, a special district that is considering the formation of an assessment district must carefully identify with sufficient specificity: (1) the specific services or improvements to be funded by the assessment; (2) the special benefit that properties within the proposed assessment district will receive from the services or improvements; (3) an estimate or calculation of the cost of the services or improvements; and (4) the direct connection of any proportionate costs of and special benefits received from the services or improvements to the specific assessed properties in relation to the entirety of the cost of the improvements or services. The special benefit must affect the parcels to be assessed in a way that is particular and distinct from its effect on other parcels and that real property in general and the public at large do not share. The assessment engineer’s report must measure and reflect the special benefits that will accrue to each particular parcel within the assessment district. Consequently, an assessment that is levied at the same rate for all parcels of property within an assessment district in some circumstances may not meet the proportionality requirements of Article XIII D, section 4.

California Special District – September-October 2014

LEADERSHIP

Get engaged with the Special District Leadership Foundation The Special District Leadership Foundation (SDLF) is 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. Does that sound like an organization you want to support? Here’s what you can do to become more engaged in SDLF and its mission: • Are you on Facebook? Be sure to “Like” the Special District Leadership Foundation. Our Facebook page is a great place to see the latest special district recognitions and more.

• Are you going to the CSDA Annual Conference?

Show your support for SDLF by purchasing tickets for the wine raffle and bidding on auction items at the Taste of the City Reception. Our goal is 100 percent participation by conference attendees so a donation as small as a dollar gets you the “I Support SDLF” ribbon on your name badge. The money raised at this event helps to fund scholarships for special districts.

• Are you a board member/trustee? Consider attending the Special District Leadership Academy (SDLA) Conference in November. Completing the SDLA conference as a first-time attendee, along with 10 additional hours of continuing education qualifies you for Recognition in Special District Governance.

• Are you a special district manager? Think about becoming a Special District Administrator (SDA).

This valuable designation shows you are the best of the best. The first step on the road to your SDA designation is downloading an application at www.sdlf.org. You can also contact us to request a free SDA study guide.

• Is your district budget under $5 million? Apply for an SDLF scholarship. The Special District Leadership Foundation has three different scholarship funds designed to help directors/trustees and staff get the education that they need, even with limited budgets.

CONGRATULATIONS TO THOSE WHO HAVE COMPLETED THE FOLLOWING SDLF PROGRAMS.

Special District Administrator Certification • Steve Perez, Rosamond Community Services District – June 2014 • Rick Howard, Town of Discovery Bay Community Services District – July 2014

District Transparency Certificate of Excellence • • • • • •

Coachella Valley Mosquito & Vector Control District (2014) San Bernardino Valley Water Conservation District (2014) Herlong Public Utility District (2014) Municipal Water District of Orange County (2014) Monte Vista Water District (2014) South Tahoe Public Utility District (2014)

• Costa Mesa Sanitary District reaccreditation – July 2014 • San Bernardino Valley Water Conservation District – June 2014

Recognition in Special District Governance • R.V. “Jim” Estomo, Channel Islands Beach Community Services District – June 2014

Public Member Appointees

CSDA Appointees

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

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

Districts of Distinction Accreditation

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

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

Staff

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

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At-large voting and VRA claims [continued from page 22] alert concerning compliance with the Voting Rights Act. Despite this alertness, many public agencies have been sued or threatened with suit for violation of the CVRA, including the Cities of Palmdale, Bellflower, Compton, Anaheim, Escondido, Whittier, Santa Clarita, Merced, Ceres, Turlock, Los Banos, and special districts that include the Santa Clarita Community College District, Sulphur Springs District, and the Coachella Valley Water District.

WHAT SHOULD SPECIAL DISTRICTS DO? With this rising tide of claims against public agencies for Voting Rights Act violations, it is imperative that special districts proactively assess their vulnerability to such claims. The recent flurry of cases against public agencies for violations of the Voting Rights Acts have primarily been initiated by private plaintiffs and brought under the CVRA because of its lesser threshold of proof; however, special districts should remember that both Federal and State Justice

Departments are also potential plaintiffs in this regard, as they routinely investigate and file lawsuits alleging violations of the Voting Rights Acts.

Special districts with no pending threats or suits for violation of the Voting Rights Acts face several different options, the appropriateness of which will necessarily depend on whether racially polarized voting indeed exists in your district. If your district has a significant minority population and uses the at-large method of election, there is the potential that racially polarized voting exists. If your district has a history of minority candidates losing elections, or has a significant minority population with little or no minority representation on the governing board, then the likelihood of racially polarized voting is even greater, and it is recommended that you analyze voting practices to determine whether it exists. This is typically accomplished by retaining a statistical expert who carefully combs through census and

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To find out how your agency can save money with lower interest rates, call 877.924.2732 or visit www.csdafinance.net.

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election data to ascertain the presence and/or degree of racially polarized voting. In the event the statistical study confirms that racially polarized voting exists, then your district is likely vulnerable to claims for violation of the Voting Rights Acts and should evaluate its options to minimize or eliminate the risk associated therewith.

The first and perhaps most obvious option available to districts is the status quo – to stick with the atlarge system and hope that activists do not bring an action against the district. After all, many feel at-large voting offers citizens more power and holds candidates more accountable since voters have the ability to elect all, rather than just one, governing official. For those districts where racially polarized voting is occurring, continuing the status quo is probably comparable to playing Russian roulette, as it may only be a matter of time before a plaintiff’s lawyer sends a demand letter.

Another option available to districts is to voluntarily convert from an atlarge method of election to districtbased elections. If this option is preferred, districts should consult with their district legal counsel to confirm the appropriate method to effectuate this change. The switch to district-based voting will ordinarily involve carving out majorityminority districts, which can be a difficult logistical task to complete.

Though the effort to transition from at-large voting to district-based voting takes considerable time and money in the present, the transition (if done correctly) will immunize the district from the harm that could arise from a lawsuit. This option also ensures that the power to control the redistricting process will lie with the elected representatives and local voters, rather than the courts.

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anaging Risk

Strive for lowest possible experience modification merit rating system intended to provide employers a direct financial incentive to reduce work-related accidents. The experience rating system is determined by the WCIRB which objectively distributes the cost of workers’ compensation insurance more equitably among employers assigned to particular industry classifications.

Most agencies have a fiscal year that begins July 1 and have recently approved and adopted a new budget for 2014-15. At the start of each year, it is extremely important your agency review their loss prevention practices and procedures that could help prevent or reduce workers’ compensation claims moving forward. Practicing good loss prevention includes knowing your experience modification (e-mod), as this all-important injury barometer has the single largest impact on your workers’ compensation premium.

The best way to stay on top of things: don’t get lulled to sleep by an average e-mod. Your agency should continually strive for the lowest possible e-mod. Driving your e-mod down to its minimum is the best way to slash your workers’ compensation premium.

In February 2014, SDRMA Workers’ Compensation Program

members were mailed their individual e-mod calculations along with 2014-15 approved class code rates and estimated annual contribution amounts. Detailed e-mod calculation worksheets were provided showing how your agency’s e-mod was determined. The data used to calculate your e-mod includes any claims during the prior 3 full program years. Therefore, experiencing a claim will impact your e-mod calculation for 3 years.

The following information was taken from the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) website and pertains to the Workers’ Compensation Experience Rating System which is used by SDRMA to determine your annual e-mod.

Experience Rating System California’s workers’ compensation experience rating system is a

A proud California Special Districts Alliance partner.

34

An experience modification (e-mod), which is expressed as a percentage, compares the loss or claims history of one company to all other companies in the same industry that are similar in size.

Generally, an e-mod of less than 100% reflects better-than-average experience, while an e-mod of more than 100% reflects worse-thanaverage experience. Accordingly, an e-mod that is greater than 100% usually increases the cost of an employer’s workers’ compensation insurance premiums, while an e-mod that is less than 100% usually decreases the cost of an employer’s workers’ compensation insurance premiums.

Experience Modification = Actual Losses/Expected Losses E-mods are calculated by comparing the actual losses to the expected losses. Actual losses are the medical and indemnity claim costs resulting from a work-related injury, that an insurance company has paid or expects to be paid in the future.

Expected losses represent a business’s projected losses for the industry in

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

which it operates. In other words, given its classifications and payroll, its expected losses represent the statistical average losses that a business of a similar size in the same industry is expected to incur. Given two businesses within the same industry, the larger the business, in terms of payroll, the more losses that business is expected to incur.

In practice, some elements have been added to the experience rating formula to prevent extreme swings in e-mods from year to year. To understand these elements, it is necessary to explain the e-mod calculation in some detail.

It is relatively straightforward to predict the frequency and cost of workplace injuries for a large group of businesses by examining the losses incurred by those businesses in the past. Predicting whether or not a specific business within this large group of businesses will experience a workplace accident, however, is more difficult. This is especially true for small businesses.

The statistical chance of incurring a workers’ compensation claim for any single small business within a large group is small, and an e-mod based on this loss history is less reliable than it would be for a large business. For a small business that incurs a loss, the effect on its e-mod using a simple comparison of actual losses to expected losses would result in an unreasonably high e-mod for the year. This could result in greatly increased workers’ compensation insurance costs.

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.

In order to improve the statistical credibility of a business’s experience in the e-mod and to restrict the fluctuation of a business’s e-mod from year to year, several adjustments are made in the experience rating formula to modify the expected losses and actual losses for those businesses whose experience is not fully credible. Actual losses are segregated into actual primary losses and actual excess losses. The first $7,000 of losses for a claim are considered primary losses. Any remaining amount above $7,000 is considered excess losses. Once segregated, the experience rating formula places additional weight on the primary portion. This additional weighting of primary losses places more weight on claim frequency than on severity and limits somewhat the impact of claim severity in the experience rating calculation.

The second adjustment is the inclusion of primary credibility and excess credibility in the experience rating formula. Taken together, these credibility values represent the weight given in the experience rating formula to a business’s actual loss experience. Larger businesses tend to have more weight (more credibility)

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

given to their actual experience while smaller businesses tend to have less weight (less credibility) given to their actual experience. (Prior to January 1, 2012, the experience rating formula used “B and W” values to reflect credibility.) Without these adjustments, e-mods would be far more volatile from year to year.

Experience Rating Change Effective 2015 - Limited Experience Modification In October 2013, the California Insurance Commissioner approved a change to the California Workers’ Compensation Experience Rating Plan-1995 (Experience Rating Plan) that limits the impact of a single claim on an employer’s e-mod if the employer was otherwise losscontinued on page 42

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California Special District – September-October 2014

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Money Matters The state budget and what it means to you While California is operating with a multibillion surplus for the first time in seven years, the effects of deferred infrastructure continue to be felt across local communities.

Special districts should take notice of the grants appropriated in the fiscal year (FY) 2014-15 State Budget and debt repayment to local governments. The state is making substantial progress in aiding local governments with available grants to respond to regional and statewide issues impacting the delivery of core local services.

State Mandate Reimbursement Working to pay off its “Wall of Debt,” the Department of Finance (DOF) instructed the State Controller to appropriate $100 million of the $900 million in pre-2004 state mandate reimbursements owed to special districts, cities and counties. This fiscal year, special districts that filed for reimbursement will receive their share—over $2 million— from this initial appropriation.

Should state revenues exceed forecasts, the state budget also includes language to pay $800 million in additional state mandate reimbursements owed to local agencies.

The DOF has the administrative authority to pull this automatic “trigger” at next year’s May Revise.

Ethics Training Mandate Reimbursable Although the Public Records Act and Brown Act are no longer reimbursable mandates, as a result of the passage of Prop 42 in June’s election, the state budget continues to maintain AB 1234 Ethics Training for local agency officials as a reimbursable mandate.

Local Fire Prevention and Education Grants To mitigate the increased threat of wildfire, the state budget authorizes CalFIRE to make $10 million available to support local grants to special districts

CSDA F C

A proud California Special Districts Alliance partner.

36

providing fire service, and other local governments, with SRA lands within their jurisdiction for fire prevention purposes. Terms for grant recipients and available funding will be determined by the administration.

Drought Relief With fears of a fourth drought year, the budget provides $687.4 million for projects to help local communities more efficiently capture and manage water, and as well as secure emergency drinking water supplies for drought-impacted communities.

The emergency drought relief includes $549 million from accelerated expenditure of voter-approved bonds (Prop 84 and Prop 1E) for the Department of Water Resources to provide infrastructure grants for local and regional projects. The grants are for projects that increase local water supply reliability by recapturing storm water, expanding the use and distribution of recycled water, enhancing the management and recharge of groundwater storage, and strengthening water conservation efforts.

Groundwater Management and Technical Assistance to Local Agencies The budget further allocates $2.5 million in FY 201415, and $5 million annually for four additional years,

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

CSDA F C

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

for the Department of Water Resources (DWR) to support local groundwater efforts. The state’s role is to provide guidance, tools, and resources to local and regional entities to assist them in management of groundwater basins.

County Assessor Partnership Pilot The state budget funds a three year pilot project, the “StateCounty Assessors’ Partnership Agreement Program,” to enhance local property assessment efforts. Special districts and other local agencies in nine counties will pay their proportional share of the increased administrative costs of the program and will realize their proportional share of any increased property tax receipts due to this proposed threeyear pilot project. Counties must apply to the competitive program that will receive $7.5 million annually. Similar to past programs that were initiated in 1995 and 2002 but later eliminated, the pilot program enhances counties’ local property assessment efforts in order to: • Enroll newly constructed property and property ownership changes; • Reassess property to reflect current market values; • Enroll property modifications that change the property’s taxable value; and • Respond to assessed valuation appeals.

High-Speed Internet Access at Public Libraries The budget dedicates $3.3 million for broadband internet connectivity and services at public libraries. Of this money, $2.3 million is to be used to access a high-speed Internet network, presumably to pay for a portion of a statewide contract for libraries to connect to CENIC. The remaining monies will be available for local public libraries: • $1 million to provide grants for technology upgrades • $1 million for adult literacy programs.

Redevelopment Agencies (RDAs) Dissolution As redevelopment unwinds and enforceable obligations are paid down, this revenue is slowly restored to local agencies and the core local services they provide. In 2011-12 and 2012-13 combined, approximately $310 million was returned to special districts. The budget estimates that in 2013-14 and 2014-15 combined, special districts will receive $227 million.

California Special District – September-October 2014

Cap-and-Trade Auction Revenue Cap-and-trade auction revenue, as outlined in the state budget, is dedicated to the state highspeed rail project, public transit, affordable housing and sustainable communities strategies, and natural resources and energy efficiency projects.

Special districts may be eligible for funding through some of these programs, the details of which will be worked out in the coming months.

Specifically, the bill allocates $832 million for FY 2014-15: • Transit and Intercity Rail Capital Program: $25 million • Low Carbon Transit Operations: $25 million • Low Carbon Transportation: $200 million • Weatherization: $75 million • Agricultural Energy and Operational Efficiency: $15 million • Water Action Plan – Wetlands and Watershed restoration: $25 million Energy Conservation Assistance Act revolving loans for public buildings Energy Resources Conservation and Development Commission received a $20 million allocation for the to finance energy efficiency and energy generation projects in public buildings, including the University of California, the California State University, and courts. Energy savings projects will include lighting systems, energy management systems and equipment controls, building insulation and heating, ventilation, and air conditioning equipment.

Fire Prevention and Urban Forests The Department of Forestry and Fire Protection received $42 million to support urban forests in disadvantaged communities and forest health restoration and reforestation projects that reduce wildfire risk and increase carbon sequestration. These expenditures will enhance forest health and reduce fuel loads in light of climate change increasing wildfire intensity and damage.

Waste Diversion The Department of Resources Recycling and Recovery received $25 million to provide financial incentives for capital investments that expand waste management infrastructure, with a priority in disadvantaged communities.

Investment in new or expanded clean composting and anaerobic digestion facilities is necessary to divert more materials from landfills, a significant source of methane emissions. These programs reduce GHG emissions and support the state’s 75 percent solid waste recycling goal.

[What’s so special]

Popeye loves mussels Sonoma County Water Agency

If you’ve spent much time at California waterways boating or waterskiing lately, you’ve probably heard of the invasive mussels threatening to enter and infect local waters. You may have even undergone an inspection. This is because water agencies around the state are being diligent in ensuring zebra and quagga mussels stay out of California’s waters.

Sonoma County Water Agency is one such agency and they have a surprising ally in their efforts: a dog named Popeye. Popeye is a chocolate lab who has been trained to sniff out mussels on watercraft and signal when the mollusks have been detected.

California Special District asked Sonoma County Water Agency, Community and Governament Affairs Principle Program Specialist Brad Sherwood to explain why the mussels are such a threat to our waterways and how Popeye is an asset in such a fight.

Explain the threat of invasive mussels getting into California waterways.

Zebra mussels and quagga mussels are virtually identical both physically and behaviorally. Originally from Eastern Europe, these tiny trespassers were picked up in the ballast water of ocean-going ships and brought to the Great Lakes in the 1980s. By 1990 zebra mussels and quagga mussels had infested all of the Great Lakes.

Now, both quagga mussels and zebra mussels have spread to 29 states by hitching rides on boats moving between the Great Lakes and Mississippi River Basins. Artificial channels like the Chicago Area Waterways System facilitate their spread. These man-made channels act like super-highways and are also a pathway for Asian carp, which are currently spreading towards the Great Lakes.

Brad Sherwood

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Invasive mussels pose the risk of infesting fresh water bodies and completely devastating its ecosystem and all associated functions, such as recreation, water supply and

Sonoma County Water Agency Established: 1949 Size: 200 employees Population: 500,000

Budget: $75 million Location: Santa Rosa, California Website: www.sonomacountywater.org

flood control, including hydro electricity. One mussel can produce up to one million eggs per breeding season. This means mussels multiply quickly and within months deplete an aquatic ecosystem by consuming its oxygen levels. There is no magic pill or cure for mussels. Mussels cannot be removed from a waterway without either draining the water or adding chemical concoctions. Neither of these remedies is plausible for a water supply reservoir. Mussels damage critical infrastructure within a waterbody, such as dam pipes, hydroelectrical equipment and fish hatchery filtration systems.

What other ways does SCWA work to protect its waters from the invasive species?

How do these mussels invade non-infected waters?

Boaters can help prevent the spread of mussels by ensuring their boats are clean, drained and dried before and after entering a waterway. Always decontaminate your boat if you entered an infested waterway.

Mussels enter non-infested waters by hitchhiking on boats from infested waterways. If a boat leaves an infested waterway without being properly cleaned, drained and dried then the possibility of a small mussel hiding on it and hitching a ride to the next lake the boat visits and infesting that waterway is very likely. Mussels can also move from waterway to waterway on other types of watercraft, such as canoes, kayaks, and any flotation device. The only caveat is that the mussels need moisture to survive. Without moisture they can’t survive for more than three weeks. Thus, cleaning, draining and drying your watercraft is a very effective prevention tool.

Who is Popeye? What does he do?

Effective Public Outreach Practical Strategic Planning

Popeye is a five-year-old chocolate lab that inspects boats for quagga and zebra mussels, shellfish that have terrorized California lakes and reservoirs. Popeye is trained to sniff out the mollusks on motorboats and kayaks before the animals reach the water, where they can reproduce and crowd out fish and other critters.

How did SCWA recruit Popeye to help detect mussels? Why did the agency decide to use a canine in its efforts?

SCWA decided to bring Popeye to our waterways when we learned of his special sniffing skills. SCWA was anxious to educate 408/374-0977 the public about the mussel issue and at the same time begin info@rauchcc.com boat inspections.

We decided Popeye would be able to increase outreachwww.rauchcc.com and quickly inspect boats, and make people smile.

Everyone loves a cute dog, and especially one that sniffs out these nasty mussels.

How successful has Popeye been in detecting mussels?

Popeye has not found any mussels at our waterways; which is good news. However, he has demonstrated his ability to find mussels at various trainings and seminars to demonstrate his special skills.

He has been a tremendous part of our inspection program. And he provides a job well done.

California Special District – September-October 2014

SCWA is working with the U.S. Army Corps of Engineers and a non-profit called the Friends of Lake Sonoma to promote a special education program to inform local boaters on mussel prevention.

In addition, SCWA helped support Assembly Bill 2443, which was signed into law last year by Governor Brown and creates funding for statewide mussel prevention programming.

What are some ways boaters can help prevent the spread of the zebra and quagga mussels?

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Managing risk [continued from page 35] free during the experience rating period. This change becomes effective on January 1, 2015.

The new rule provides that for an employer with only a single claim during the experience period, the e-mod is limited to no more than 25 percentage points above the e-mod that would have been published if the employer had been loss free during the same experience period.

If an employer incurs more than one claim during the experience period, the employer’s e-mod is not subject to the 25 percentage point limit.

To denote that an e-mod is limited, the Experience Rating Form will include an “L” next to the e-mod to identify it as a “limited” e-mod. For reference, the Experience Rating Form will also contain the e-mod that would have been effective if the limitation had not been applied (Calculated Unlimited Experience Modification) as well as the Loss-Free Rating. SDRMA

Workers’ Compensation program members will see the impact of this rule change on e-mods effective on and after January 1, 2015.

SDRMA Complimentary Programs/Services SDRMA provides complimentary programs/services to its members to help prevent and reduce workers’ compensation claims including TargetSolutions online training (available 24/7/365) and Company Nurse - a telephone based triage program with a workplace tollfree injury hotline. In addition, SDRMA provides access to our Chief Risk Officer Dennis Timoney as well as our loss prevention consulting team including Lapidus Safety Consulting which provide free on-site loss control and risk analysis visits, monthly safety meeting materials and much more. If you need to schedule a loss prevention visit or are not a current SDRMA workers’ compensation member please contact us for a free quote at 800.537.7790!

District Snapshots Vallecitos Water District

PHOTOS: The Vallecitos Water District’s Twin Oaks Reservoirs No. 1 and No. 2 are a water storage dynamic duo. Both facilities feature a pre-stressed concrete exterior to increase durability and strength. The two structures, rivaling the size of a typical baseball stadium are the largest of their kind, with the 40-million gallon facility considered the largest in the world. The reservoirs are completely buried and landscaped, concealing them from the surrounding community.

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Maximizing Protection. Minimizing Risk.

As California’s trusted risk management advisor, SDRMA brings together a unique combination of world-class risk management consulting and technical experts that make our Member Programs superior to everything else on the market. Our goal is to serve as an extension of your staff so our service is seamless to you and your agency. Visit our website at www.sdrma.org or call us at 800.537.7790 for more information about our Workers’ Compensation, Property/Liability or Health Benefits Programs.

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