California Special District by California Special Districts Association

CA SPECIAL

DISTRICT Publication of the California Special Districts Association

Volume 10, Issue 1, Jan - Feb 2015

FEATURE

Interview with Assembly Member Brian Maienschein

District Reimbursement Eligibility Threatened by Commission’s Ruling

What’s so special: Hike your pie off Santa Clara Valley Open Space Authority

In Fond Memory of

JEFFRE Y A. STAVA 1958 – 2014

We are deeply saddened by the loss of our beloved partner and friend, who provided valuable assistance to CSDA and California Special Districts throughout his 30-year career. Nossaman will continue to meet the standards of professional excellence and care that were Jeff’s hallmark.

nossaman.com LOS ANGELES I SAN FRANCISCO I ORANGE COUNTY I SACRAMENTO I WASHINGTON, DC I AUSTIN I ARLINGTON 2

Volume 10, Issue 1 • January - February 2015

Contents

CEO’s message

Turning board direction into action at CSDA!

Capitol focus on local government

Interview with Assembly Member Brian Maienschein

5 Professional Development Special District Leadership Academy Conference recap; Calendar 6 CSDA news Election of officers; Labor law posters; Partnership with State Controller promotes transparency 12 In Brief Utility district gives away christmas lights; Fire district approves purchase of drone; Park district partners with library movement; Flushed ring returned; Firefighters use crowd funding to raise money for ambulance; Vector inspector California Special District – January-February 2015

District reimbursement eligibility threatened by commission’s ruling

24 Solutions & Innovations Innovation in technology enhances patient care 26 Community Connections San Diego County Water Authority forges water conservation partnership with San Diego Zoo Global 28 Legal Brief Are you prepared for the 2015 prevailing wage changes?

What’s So Special

Hike your pie off

Santa Clara Valley Open Space Authority

34 Managing Risk Ergonomics and a legal update 36 Money Matters Recognizing and preventing fraudulent social engineering

Grassroots Action Update - pg. 8

CSDA advocacy tools to assist special districts

30 SDLF What’s your new year’s resolution Printed on recycled paper.

CA SPECIAL

Officers Steve Perez, President Rosamond Community Services District William Nelson, Vice President Orange County Cemetery District Vincent Ferrante, Secretary Moss Landing Harbor District Greg Orsini, Treasurer McKinleyville Community Services Districtt Noelle Mattock, Past President El Dorado Hills Community Services District

CEO’s message

Turning board direction into action at CSDA!

Members of the Board Joel Bauer, West Side Cemetery District Stanley Caldwell, Mt. View Sanitary District Elaine Freeman, Rancho Simi Recreation & Park District Jo MacKenzie, Vista Irrigation District Ginger Root, Country Club Sanitary District Timothy Ruiz, P.E., East Niles Community Services District Sherry Sterrett, Pleasant Hill Recreation and Park District Fred Ryness, Burney Water District Arlene Schafer, Costa Mesa Sanitary 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 Nick Clair, Legislative Analyst 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 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

Neil McCormick

The

New Year is a great time to reflect on the priorities established in your organization via a strategic plan and to take a look at what the board of directors and staff want to accomplish in the coming year. At CSDA, we are focused on the goals established via an aggressive Three-Year Strategic & Staffing Plan established by the Board of Directors in mid-2013, and we are right on track to fully implement it. As we start year two of the plan, there’s no doubt that it’s aggressive. Every component of CSDA’s plan and corresponding implementation efforts has our members in mind so I want to provide a little insight into what you can expect from CSDA in 2015: • New statewide partnerships to ensure special districts and CSDA are well represented and at the table as an essential component of the local government landscape in California. • Additional legislative staff to broaden our reach, exposure and influence in and around the Capitol. • New staff positions working locally with our members. These CSDA staff members will be focused on: building local relationships and awareness; increasing communications with districts and stakeholders; grassroots mobilization on issues important to our members; and coalition building.

A proud California Special Districts Alliance partner

At CSDA, we are focused on the goals established via an aggressive Three-Year Strategic & Staffing Plan established by the Board of Directors in mid-2013, and we are right on track to fully implement it. • New innovative professional development opportunities for board members and staff, including real-time and on-demand trainings on a wide variety of topics. • New exclusive and innovative member programs designed to provide extended resources, assist members in their operations, and save districts money. These are just some of the items we have in the pipeline for CSDA in 2015. Going through the process of developing the three-year plan was very time and resource intensive, however it proved to be essential in order to gain a unity of purpose with a focused direction and vision on the board and with the staff. CSDA staff are now in the process of turning that policy-level direction into action! We thank all CSDA members for the continued support and look forward to providing even more benefits and services for you in 2015!

Highlight

CSDA’s Special District Leadership Academy

March March 10

WEBINAR

What’s A Public Record? How To Comply With The Public Records Act

March 19

WEBINAR

Spot the Fraud! Fraud Detection/Prevention

March 24

SDRMA Workshop

SDRMA Safety/Claims Education Day, Sacramento

March 24

SDLA

SDLA: Governance Foundations, Sacramento

March 26

WEBINAR

Legislative Round-up

April 4

SDLA

SDLA: Governance Foundations, Rancho Santa Fe

April 9

WEBINAR

Best Practices in Agenda Prep, and Taking/Recording Minutes

April 14

WORKSHOP

Supervisory Skills for the Public Sector, Sacramento

April 15

WEBINAR

Records Retention and Management

April 16

WORKSHOP

Intro. to Good Governance Principles, McKinleyville

April 22

WORKSHOP

Proposition 26, Proposition 218 and Rate Setting, Sacramento

April Over 100 Attend Leadership Conference in Napa Board members and trustees participated in two and a half days of governance education at the Special District Leadership Academy Conference. This conference content is based on CSDA’s Special District Leadership Academy (SDLA) groundbreaking, curriculum-based continuing education program, which recognizes the necessity for the board and general manager to work closely toward a common goal. Content areas covered during the conference included: Building a Foundation for Good Governance, Fulfilling Your District’s Mission – Charting the Course, Get the Word Out! Best Practices for Communication and Outreach, Defining Board and Staff Roles and Relationships, and Show Me the Money! What Do Board Members Need to Know about District Finances? Attendees at this conference also meet a portion of the requirements for two Special District Leadership Foundation programs. Completion of the Special District Leadership Academy is a requirement along with 10 hours of continuing education for the Recognition in Special District Governance program. Completion of any of the four modules of the Special District Leadership Academy qualify toward the governance training requirement of the District of Distinction Accreditation. CSDA urges you to consider making this governance education part of the culture for board members/trustees of your district. Individual academy modules are available throughout the year around the state. The Special District Leadership Academy Conference will return in early 2016 with tracks for both first-time and returning attendees. California Special District – January-February 2015

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

Attendees line up to receive their SDLA certification.

CSDA NEWS CSDA Announces the Election of Officers for 2015 Congratulations to CSDA’s new 2015 Executive Committee officers: • Steve Perez, SDA, Rosamond Community Services District – President • Bill Nelson, Orange County Cemetery District – Vice President • Vincent Ferrante, Moss Landing Harbor District – Secretary • Greg Orsini, McKinleyville Community Services District - Treasurer • Noelle Mattock, El Dorado Hills Community Services District - Past President The 18-member board, consisting of three directors from six networks in California, is elected by mail. The election process was completed in August 2014 and CSDA would like to welcome the following new board members: Northern Network Fred Ryness, Burney Water District Central Network Joel Bauer, West Side Cemetery District Southern Network Arlene Schafer, Costa Mesa Sanitary District

New to the CSDA Bookstore: Labor Law Posters Your agency could be fined for not posting the most current state and federal employment notices in an area that is frequented by employees. To make it easy to comply, the CSDA Bookstore is now selling 2015 California & Federal Employment Notices posters at a very affordable price. Enjoy special member pricing of $25 (plus shipping and tax) for each laminated poster. In addition, if any other mandatory updates become effective during the year, CSDA will email you the updated section. Place your order online at www.csda.net or contact Member Services Specialist Cassandra Strawn at cassandras@csda.net or 877.924.2732.

Partnership with State Controller Promotes Transparency CSDA partnered with State Controller Betty Yee and her predecessor, now-State Treasurer John Chiang, to include special districts’ financial data in the Controller’s By The Numbers website (bythenumbers.sco.ca.gov). Local government’s data is reported in an effort to promote transparency and public engagement.

If you have any questions on the CSDA Board election process, please contact Executive Assistant Charlotte Lowe at (877) 924-2732 or charlottel@csda.net.

Bythe

Numb3rs Miles of trails throughout East Bay Regional Park District’s parkland.

Californians were invited to participate in a “Build-a-Thon” and use the raw data to create apps, databases or interface tools. Controller Yee took the oath of office on January 5 and encouraged the use of technology to involve and empower communities. Committed to continued government transparency, Controller Yee commented, “Making these data broadly and easily available is an essential government function. We must also make it a priority to organize and display data so it can be viewed meaningfully and in context.” A user-friendly public search interface will soon be available on the Controller’s website along with the best “Build-a-thon” submissions. CSDA is working with the Controller’s Office to ensure the website displays special district information in an accurate, consistent and understandable manner.

California Special Districts Association Districts Stronger Together

A leadership conference for general managers and other management staff in special districts

July 12-14, 2015

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Hyatt Regency Newport Beach

update

CSDA works daily to ensure the special district voice is heard in all legislative and regulatory proposals impacting local control and special districts’ ability to deliver essential local services. You can help make the voice of special districts stronger.

Blog Engage in an interactive forum on the hottest issues, including breaking news from CSDA’s legislative representatives walking the Capitol halls day after day. The CSDA Blog allows you to receive instant, daily or weekly updates on what’s happing inside the Capitol.

If you like reading about special districts in the news, the CSDA Blog includes the District Daily Press, a comprehensive, daily overview of news articles covering districts from around the state. Subscribe to the Blog to get the District Daily Press delivered right to your inbox.

The CSDA Advocacy Tools were developed to assist special districts in taking action on pressing legislative and regulatory issues at the State Capitol. We encourage you to visit www.csda.net/advocacy to access the following tools, which were designed with you in mind!

CSDA e-News A weekly electronic newsletter detailing the most important legislative and regulatory issues affecting special districts. If you are not signed up for it yet, please contact cassandras@csda.net to get added to the distribution list. Advocacy Alerts For time sensitive concerns, CSDA sends emails with an urgent Call to Action on specific legislative and regulatory issues, with information on how to join statewide efforts. Contact us if you are not on CSDA’s email distribution list and would like to receive these important alerts. Knowledge Base Find answers to your questions about local governance and policies regarding the operation of special districts. CSDA’s Knowledge Base offers many answers to questions about local governance and policies regarding special districts. Although the Knowledge Base is not intended as legal advice, it includes general reference information broken up into categories to better assist you in finding the answers you need. Toolbox Equip your district to proactively address key public policy issues affecting the district’s budget and operations. From bill tracking and legislator meeting requests to sample policies on how special districts formally adopt and take action on legislative positions, this section provides you with tools to advocate for your district. Bill Tracking Search the legislation CSDA is lobbying in the Capitol and download position letters and bill reports. You can search bills by subject area or by CSDA’s formal position type. If CSDA has adopted a position, you will find CSDA letters submitted to the Capitol outlining the effect it would have on special districts should the bill be enacted.

Grassroots Action Center An online destination where you can find the most pressing issues facing special districts, including how your district can join ongoing advocacy efforts. With sample letters and other mobilization tools, the Grassroots Action Center makes it easy for you to make a difference on the biggest issues affecting your district.

Meet my Legislator One of the best ways to influence legislative outcomes is by getting to know your district’s legislators so they better understand how legislative decisions impact their local communities. Did you know CSDA can facilitate a meeting with your district’s legislators? As a member, CSDA is here to serve you and connect you to your legislative representatives. We would be happy to help facilitate a visit with your legislator. Legal Tracking Access court documents filed by CSDA on legal issues critical to special districts. Court cases, attorney general legal opinions and CSDA counsel opinions are available under Legal Tracking.

Model Policies for Adopting Positions on State Legislation Throughout the year, CSDA will send out a Call to Action on a specific bill or issue that significantly impacts the special district community. Likewise, a special district may choose to take a position on a piece of legislation that specifically impacts its services in a positive or negative way.

Formally registering your district’s position on legislation is a fundamental step in order to impact policy decisions made in Sacramento. You can find sample policies on the Grassroots Action Center that can assist your district in formally adopting a position and supporting advocacy efforts.

CSDA encourages you to be involved and utilize the CSDA Advocacy Tools to be part of ongoing advocacy efforts and ensure the special district voice is heard. The variety of tools and resources available can help keep you informed in order to continue the efficient and effective delivery of essential local services.

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Ask theExperts If one of our board members is traveling or unable to attend our meeting in person, is it okay to just teleconference him/her in to the meeting? In todayâ&#x20AC;&#x2122;s world where everyone seems to be busier than ever, it was only a matter of time before we started looking for alternative ways to attend board meetings, just as we do for work meetings. The answer, however, is not cut and dry. The board must consult the Brown Act and remain compliant with its regulations. Here are a few Brown Act questions to consider: What are the requirements for teleconferencing under the Brown Act? Government Code section 54953(b)(1)-b(4) sets forth the general requirements for teleconferencing in connection with meetings of the legislative body. In order to comply with the Brown Actâ&#x20AC;&#x2122;s teleconferencing requirements: (1) each teleconference location must be identified in the meeting notice and agenda for the meeting; (2) each teleconference location must be accessible to the public; (3) the meeting agenda must provide an opportunity for members of the public to address the legislative body directly pursuant to Section 54954.3 at each teleconference location; (4) all votes must be roll call votes; and (5) at least a quorum of the members of the legislative body shall participate from locations within the boundaries of the territory over which the local agency exercises jurisdiction (except as to certain health authorities).

Do you have a question for any of our CSDA experts? If so, send your question to Nicole Dunn, editor, at nicoled@csda.net.

May teleconferencing be used in connection with special meetings and/or emergency meetings? The Brown Act contains no prohibition to teleconferencing in connection with special meetings (See Government Code section 54956) and emergency meetings (See Government Code section 54956.5), so long as the meeting complies with the teleconferencing requirements above.

May a member of a legislative body be allowed to participate via teleconference if the meeting does not fully comply with the teleconferencing requirements? No. If the teleconferencing requirements are not satisfied, a potentially valid challenge could be raised to invalidate action(s) taken at the meeting. May a member of a legislative body be allowed to callin and listen to the meeting via teleconference if the meeting does not fully comply with the teleconferencing requirements? The Brown Act does not expressly prohibit this situation. However, it is not a recommended best practice. In this context the board member listening via teleconference is essentially attending the meeting as a member of the public rather than as a member of the legislative body; as such, the member cannot participate and could not be used to establish a quorum. Moreover, it may be difficult for the legislative body and/or the member to maintain the nonparticipation boundary. In addition, the legislative body could face requests from members of the public requesting to call into and listen to meetings of the legislative body and would be posed with a difficult justification for denying such a request from members of the public while allowing them for members of the legislative body. Remaining compliant with the requirements of the Brown Act while teleconferencing is doable, but in certain circumstance might not be advisable. In order to stay out of trouble, you should consult a Brown Act expert to assess your specific situation and ensure you are covering all the bases. John W. Dietrich is the Managing Partner of the Riverside office of Atkinson, Andelson, Loya, Ruud & Romo, where he handles governance, labor relations, real property, land use and environmental law matters. John can be reached at 951-683-1122, or jdietrich@aalrr.com. 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 Randy Ward of the Cachuma Operation and Maintenance Board (COMB) was presented with the Santa Barbara County Chapter’s General Manager of the Year Award. Ward spearheaded the Emergency Pumping Facility Project at Lake Cachuma to assure the continued flow of lake water and State Water to COMB’s member agencies on the south coast during the current drought. Calaveras County Water District announces David P. Eggerton as general manager. David Breninger has announced his retirement as general manager of Placer County Water Agency. Breninger served with the agency for 23 years and worked in public administration for almost 48 years. Big Bear Airport District General Manager Pete Gwaltney announced that he will retire in March. Gwaltney served as general manager of the district for over five years. Pleasant Hill Recreation and Park District announces Sandra Bonato as the 2015 chair of its board of directors. This is the second time Bonato has served as chair.

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, editor, at nicoled@csda.net and we will include them in our next issue!

Tracy Manning was promoted to assistant operations manager at Mesa Water District (Mesa Water®) where she has worked since 1994. Manning now oversees all Mesa Water® operations -- including water production, quality, and distribution -- under the direction of the district’s engineering and operations manager. The Orange County Water District (OCWD), City of Anaheim, the Irvine Ranch Water District (IRWD), and Yorba Linda Water District (YLWD) have been awarded with the California Association of Local Agency Formation Commissions (CALAFCO) Government Leadership Award. The four agencies were selected for this award because they manifested characteristics of effective leadership, not just in the past year through the successful completion of a major annexation into OCWD, but over the course of many years, steadily paving the way politically, economically and equitably for an annexation that meets water supply needs while further promoting sustainability of regional groundwater resources.

Barbara Lee has been appointed director of the California Department of Toxic Substances Control. Lee has served as air pollution control officer at Northern Sonoma County Air Pollution Control District since 1996, where she was supervising air quality engineer from 1994 to 1996. She served as an air quality engineer at the Bay Area Air Quality Management District from 1990 to 1994. Rancho California Water District received the Government Finance Officers Association of the United States and Canada Distinguished Budget Presentation Award for its 2014-15 budget. The award represents a significant achievement reflecting the commitment of the board of directors and staff to meet the highest principles of governmental accounting.

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California Special District – January-February 2015

In Brief Utility District Gives Away Christmas Lights

Park District Partners with Little Free Library Movement

Last December, Truckee Donner Public Utility District (TDPUD) worked with the community to conserve energy by swapping out old, incandescent holiday lights with free, energy-efficient LED lights. To get the new LED lights, customers were required to bring in a copy of their current TDPUD bill and up to three strands of incandescent lights. The customers were then able to choose between up to 60 feet of white or multicolor LED lights. The LED holiday lights save between 80 to 98 percent on energy costs, compared to the older lights. “Each year our customers have really embraced this program and the holiday spirit,” said General Manager Michael Holley. “LED lighting technology continues to be installed throughout our community, helping our customers save energy and money.” Customers can also pick up other free, energy efficient, non-holiday lights – CFL light bulbs from the district throughout the year.

Chico Area Recreation District (CARD) has partnered with Butte County Library to install self-service book-sharing stations in its parks, under the Little Free Library system. Started in 2009, Little Free Library allows owners, known as stewards, to manage inventory and promote small bookborrowing structures, each of which has its own charter number. Chico already has a half dozen of the structures, primarily located in residents’ front yards and thanks to the partnership with CARD, two more widely accessible structures will be in place. “(The library and the district) are both trying to enrich lives of those in the community,” says Jake Preston, superintendent of parks and facilities. “My personal opinion is books are a dying art in the digital age, and (these structures) are incredible. Maybe people can’t make it to their library, but they can go down to the corner.” The goal of the movement, and the goal for both CARD and Butte County Library, is to foster literacy, love for books and a sense of community.

Fire District Board Approves Purchase of Drone The Menlo Park Fire Protection District Board of Directors recently approved the purchase of a hand-held aerial drone. The drone will be used to survey the scene of a fire from above, with real-time video streaming to firefighters’ smart phones and tablets. The district is venturing into relatively uncharted territories with the potential use of a drone and hopes to serve as an example of how to use it in the best, most correct way. “The responsibility is on us to do this the right way”, says Chief Harold Schapelhouman. “(A drone) is something that’s viable, it’s useful, it lasts a long time. I’m for it as long as we can make our (board) policy very clear as to how it’s being used.” The district’s board and staff are keenly aware of the importance of making clear to the public how the drone is being used and for what purposes – and that those purposes be explicitly for getting an aerial perspective on fires. Most of the videos would be available to the public via YouTube.

Sources: Chico EnterpriseRecord, KTVU News, Orange County Register, SF Gate, Tahoe Daily Tribune, The Almanac

Flushed Ring Returned to Family Sanitation workers with Union Sanitary District have returned an heirloom diamond and sapphire ring to a local family after it was flushed down the toilet by their three year old son. The crew found the ring a month and a half after it disappeared, after several attempts at locating it. By the time the ring was found, it had traveled about a third of a mile. Crews flushed the sewer lines and discovered the item after vacuuming up debris. Finding the ring, which had belonged to the family for 60 years, was the equivalent of finding a needle in a haystack.

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.

Firefighters Use Crowd-Funding to Raise Money for Ambulance Technically, Bodega Bay Fire Protection District serves a small population of just over 1,000 people. With over four million tourists visiting the Sonoma Coast annually, however, the district winds up serving far more than that population. Recently the district experienced the need for a new ambulance and proposed a tax increase to the community to help pay for one. Voters rejected the increase, claiming most of the calls for ambulance service aren’t for residents. “That’s absolutely true,” says Board President Constance Clover. “We probably have 60 percent of our calls, mainly medical calls, from visitors or non-residents out here. They are on our beaches. They are on our campgrounds.” Seeing the need for an ambulance and the lack of necessary funding, one firefighter/ paramedic spearheaded an online fundraising campaign. The firefighter, Josh Perucchi, turned to Indigogo.com to raise $50,000 toward the $185,000 cost of the new ambulance. Through Indigogo, people from in the area and outside the area can donate funds to the district. “Looking at the history of the calls we run, there is a need for paramedic service on the coast,” says Perucchi. “And when helicopters are fogged in or grounded…ambulance is the only way to transport patients to the nearest hospital, 40 miles away. People don’t realize there’s not funding for (the district firefighters/ paramedics) to be there so maybe if they can contributes to have a piece of equipment they might need…that’s something that they’re willing to give to.” The district’s Indigogo campaign raised about $6,000 in the first 20 days of its effort.

California Special District – January-February 2015

Vector Control District Develops “Vector Inspector” Orange County Vector Control District has approved an exhibit at the Discovery Cube science museum in Santa Ana, which will focus on how community members can battle disease-carrying mosquitoes. The exhibit, an “Inspector Training Course,” will place guests in the role of a vector patrol officer in a specially constructed yard. The exhibit features two animated characters,

“The hope is to engage families in the shared responsibility of vector control, through schoolchildren,” says District Manager Michael Hearst.

an inspector and a scientist, and will include a teacher-training program. “The hope is to engage families in the shared responsibility of vector control, through schoolchildren,” says District Manager Michael Hearst. “The display will focus on how simple mosquito control can begin in the backyard by avoiding standing water.” California experienced 789 recorded cases of West Nile virus in 2014, with Orange County reporting 280 of those cases and seven deaths. The Vector Inspector exhibit will take the district’s public health message and translate it into everyday human behaviors for community members. Vector Inspector is scheduled to open this summer and teacher training will begin the following fall.

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Capitol focus on local government in 2015 Interview with Assembly Member Brian Maienschein, Chair of Assembly Committee on Local Government Assembly Member Brian Maienschein has extensive experience serving in local government, and will be bringing that experience this Legislative session as Chair of the Assembly Committee on Local Government. Maienschein fully recognizes the importance of local government and its necessity in providing essential services to the public. California Special District asked Assembly Member Maienschein to explain his priorities for the Local Government Committee, why it is important for special districts to get involved in the legislative process, and how they can go about actively engaging in that process. What is your background in local government? I was fortunate enough to spend eight years on the San Diego City Council. During that time, I had the opportunity to be involved in many important issues for the city. We had a very successful redevelopment program, which we used to revitalize our downtown area to become the thriving district it is today. While serving on the Council, I preserved approximately 11,000 acres in the San Pasqual Valley from development. After the 2003 Cedar Fire, and 2007 Witch Creek Fires, I set up a one-stop shop for disaster victims to lead the rebuilding efforts. This disaster response model is now used across the nation.

What are your top priorities for the Assembly Committee on Local Government?

Assembly Member Brian Maienschein

I was honored to be appointed by Speaker Toni Atkins as Chair of the Local Government Committee last December. My first priority is to honor the spirit of bipartisanship with which I was appointed, and I look forward to working closely with the vice-chair and other members of the committee to craft legislation that first

After all, most local government issues aren’t partisan – they affect everyone regardless of a person’s political ideology. When I served on the San Diego City Council, I saw firsthand what can be achieved when we work together, and I plan to bring that mentality to my Chairmanship of the Local Government Committee.

and foremost, recognizes and studies the impacts (positive or negative) on local agencies – cities, counties and special districts – throughout California. After all, most local government issues aren’t partisan – they affect everyone regardless of a person’s political ideology. When I served on the San Diego City Council, I saw firsthand what can be achieved when we work together, and I plan to bring that mentality to my Chairmanship of the Local Government Committee.

What key issues do you anticipate the committee will face this session? I expect 2015 to be a big year for the committee. There are ongoing issues that we’ll focus on – for example, in the last few years the committee has seen many bills on cleaning up the dissolution of redevelopment statutes, as well as continuing the conversation on what sort of financial tools local governments need in light of the absence of redevelopment agencies. I think we’ll continue to see bills that deal with water conservation in the Legislature, and some of those have impacts on local agencies in terms of how a city, county or special district interacts with its residents on water conservation efforts.

In terms of new issues, I expect that there will be a number of bills introduced in the Legislature that look at the “militarization” of police forces. While these bills are more likely in the jurisdiction of the Public Safety Committee, we could see bills that require local agencies to be more involved in how these types of decisions are made by public safety officials. Another new issue is the notion of the “sharing economy” – more specifically, “home-sharing” websites like AirBnB and Vacation Rentals by Owner (VRBO). Most cities and counties in California have in place an ordinance that requires a Transient Occupancy Tax (TOT) to apply to hotel stays within that city or county. The Internet continues to have lasting implications on business models, and California statute does not contemplate this new “sharing economy” phenomenon.

How can special districts get involved in the legislative process? I think individual special districts and the California Special Districts Association are already involved in the legislative process, at least from my experience. I think

Local government finance has been one of the areas we’ve seen the most bills in in the last few years, specifically dealing with bills that give additional revenue authority to various local agencies, and bills that raise the cap on certain local taxes.

California Special District – January-February 2015

it’s important to continue building those relationships, and there are a number of ways that can be done. The first is to participate in the legislative process for bills that affect special districts – briefings, meetings, taking positions on legislation, and testifying in committee – in essence, getting involved in every aspect of the legislative process. Then there is the other side – outreach and education back in the district. It’s great to see firsthand the good work that special districts are doing on my home turf – field trips, site visits, meetings with the folks on the ground in the district – that’s what helps to complete the picture, and is useful when future legislation is introduced. continued on page 22

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David Becker, CPA — Partner (916) 993-9494 dbecker@jpmcpa.com n www.jpmcpa.com

Assembly Member Brian Maienschein [continued] Why is it important for special districts to be a part of the legislative process? Special districts are very unique in their governance and in the multitude of services that they can provide – and there are so many differences from one district to another! Sometimes they fill a niche that the city or county is not doing – a way for self-governance and providing services important to a community. Because special districts in California are varied, I think it’s even more important that they have a strong voice in the Legislature to help educate legislators about those differences.

What advice do you give to special districts leaders who want to get to know their legislative representatives better? In short, ask for meetings. Set up a tour in the district. Look for ways to connect special district leaders to assembly members and senators. Also, it’s important to

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look at the legislative calendar and be aware that certain times of the year are much busier than others, so setting up a longer site tour might be easier in the fall. If special district leaders are in Sacramento for other business, see if a quick meeting with your legislator or their staff can be arranged. Also, get to know Capitol and district staff, and make sure to offer yourself as a resource.

Property taxes provide an important local revenue foundation for the essential local services delivered by most special districts. What is your perspective on past, or potential future, attempts to divert property tax funding away from existing local services and infrastructure? Property taxes play an integral role in funding the services that are provided by most of California’s special districts. In the past, we have seen attempts to divert property taxes paid by residents of a special district to other areas where funding may be falling short. When residents of a special district pay their taxes, they expect to receive services, and have a solidly maintained infrastructure. I believe that we need to work to prevent these funds from being siphoned off into other areas, while protecting Californians from further tax increases.

We often say that special districts are the most local form of government. And, local control is perhaps the hallmark of local government. What is your view on laws that impose new mandates on local governments? I saw firsthand on the city council what happens when the state mandates new programs on local governments. The mandate reimbursement process, although it’s gone through a number of changes and is more efficient than it used to be, is still lengthy and potentially costly for local agencies. Some mandates that are suspended are still being implemented at the local level.

One of the things I want to focus on with the committee is analyzing legislation that imposes new mandates on local governments, and what exactly the impacts (financial or otherwise) are on cities, counties and special districts. One of the things I want to focus on with the committee is analyzing legislation that imposes new mandates on local governments, and what exactly the impacts (financial or otherwise) are on cities, counties

and special districts. I know that the fiscal cost is analyzed by the fiscal committees; however, I think this information is important for bills that are before the Local Government Committee too. I would ask that when a special district, or CSDA, is taking a position on a bill, that these impacts be discussed in their support or opposition letters.

What do you see as the most significant challenge currently facing local government agencies, and specifically special districts? With the vast variation in special districts, I think the challenge continues on education and outreach. There are a lot of new members and staff in the Capitol, and making sure they understand how special districts work, what services they provide, and their differences, poses quite a challenge.

California Special District – January-February 2015

What opportunities are available for special districts to better provide essential services to neighborhoods and regions throughout California? How can they better meet the needs of California’s communities? Again, I think education and outreach by special districts is critical. Engaging with citizens in the community is important – both about what services are provided, and about successes that special district is achieving, and also receiving feedback from the public. I also think bringing local government into the 21st century is important – social media tools like Twitter can be a good way to get out information in a concise, quick manner, and that might be helpful for certain types of special districts. Local agency websites can be made more user-friendly and efficient, so that people in the community can find the information, phone number or contact person when they need answers. All of this is an opportunity for special districts to talk about the good work that they are doing.

What do you see as special districts’ biggest strength? Strength in numbers! I believe it can be quite powerful if every special district becomes active and involved in the legislative process.

District Reimbursement Eligibility Threatened by Commissionâ&#x20AC;&#x2122;s Ruling By Dustin C. Cooper and Peter C. Harman, Minasian, Meith, Soares, Sexton & Cooper, LLP

The analysis used by the Commission on State Mandates (Commission) recently to deny a test claim brought by a group of water agencies threatens the eligibility of hundreds of special districts in California to obtain state reimbursement for new state mandates. The Commissionâ&#x20AC;&#x2122;s analysis would deny reimbursement to certain agencies that were previously found to be eligible for reimbursement for other state mandates, such as those related to compliance with the Brown Act and Public Records Act. The analysis, if applied prospectively, would also automatically eliminate a large class of special districts for reimbursement for new state mandates, regardless of the mandate at issue. 18

Background In the late 1970s, voters amended the California Constitution by passing Propositions 13 and 4, to rein in what were seen as ballooning state and local taxes. Although both Propositions restricted the taxing powers of both the state and local governments, including special districts, the drafters of Proposition 4 also included an important clause intended to protect local government revenues from being depleted by new state impositions. Concerned that the state would react to the new tax restrictions by forcing special districts and other local governments to fund programs that the state would have otherwise paid for, Proposition 4 included a clause requiring the state to reimburse local governments for the costs of implementing new state-mandated programs or higher levels of service in existing programs. This reimbursement obligation, also called “subvention,” was intended to preclude the state from shifting financial responsibility for carrying out governmental functions to local agencies that are ill equipped to assume increased financial responsibility in light of their constitutionally limited abilities to increase revenue. The Commission on State Mandates is the state agency first charged with determining if a new mandate qualifies for subvention. If so, the state must either reimburse the local agencies for the cost of implementing the new mandate or the agencies may be relieved of the obligation to comply with the mandate. The Commission’s membership includes representatives from the Department of Finance, the State Controller’s Office, and the State Treasurer’s Office—all agencies that have an eye on the state’s balance sheet and little sympathy for special districts struggling to provide quality services in light of constitutional limitations on ability to generate revenue. In the years since Propositions 13 and 4 were passed, the state has steadily chipped away at constitutional protections, to the point that the state and the Commission take the position that the constitutional subvention requirement does not mean what its words appear to say, and that later constitutional amendments should have no bearing on how it is interpreted.

The Water Conservation Test Claims The Commission on State Mandates recently denied reimbursement to a group of water and irrigation districts that requested subvention for implementing new and very expensive legislative mandates for water conservation, required by SBx7-7, and related

regulations promulgated by the Department of Water Resources in 2012. (Water Conservation, Test Claim Nos. 10-TC-12 & 12-TC-01, Dec. 5, 2014) One of the most expensive new requirements, applicable to certain large agricultural water suppliers providing water to 25,000 or more irrigated acres, mandates installation of highly calibrated water meters at every farm gate where district water is delivered. The legislation exempts small agricultural water suppliers from these requirements, while medium-sized agricultural water suppliers are exempt unless state funding is provided. Thus, the unfunded mandate is only directed at large agricultural water suppliers and requires installation of a meter at each point where water enters an individual field within the district. Depending on the district, anywhere from a few hundred to several thousand water meters must be installed. Estimates of the cost of purchasing, installing, and initially calibrating each meter range from $3,500 to over $13,000. This means that the initial implementation of just one aspect of these new mandates could cost each district many millions of dollars to implement. In the recent Water Conservation test claim (as cases before the Commission are called), the Commission agreed with the six local agency claimants—Richvale Irrigation District, Biggs-West Gridley Water District, Paradise Irrigation District, South Feather Water and Power Agency, Oakdale Irrigation District and Glenn-Colusa Irrigation District— that the new conservation mandates did constitute new state-mandated programs. However, the Commission used convoluted legal reasoning to reach its conclusion that no reimbursement is required for the new water continued on page 20

California Special District – January-February 2015

District reimbursement eligibility threatened by commission’s ruling [continued] conservation mandates. It is this reasoning that threatens the reimbursement eligibility of a large number of special districts in California.

Interpretations of the Reimbursement Requirement In the late 1970s, at the time the subvention requirement was added to the California Constitution, the Constitution only limited local governments’ tax revenues. Local agencies maintained control, without constitutional restriction, over their assessments, fees and charges. The Legislature therefore decided that if a local government had the authority to increase service charges, fees or assessments sufficient to pay for a mandate, then the state would not need to provide reimbursement to that agency. The application of this interpretation, codified in statute, was straightforward enough until Proposition 218 was passed in 1996. Proposition 218 was enacted to close a loophole perceived to exist after the passage of Propositions 13 and 4 by imposing similar constitutional limitations on the ability to impose new or increased assessments and property-related fees or charges. Thus, today, local agencies in California face constitutional limitations on their ability to raise taxes, assessments and propertyrelated fees and charges. One of the most-cited cases on subvention is a 1991 case called County of Fresno v. State of California (53 Cal.3d 482 (1991)). Fresno’s analysis was based on the presumption that local agencies’ taxation powers were constitutionally limited, but their fee, charge and assessment powers were not restricted. This assumption is reflected in key passages in Fresno that have been quoted again and again in other court decisions, even after Proposition 218 changed the Constitution in 1996. The current body of case law now weaves together threads of pre- and post-Proposition 218 reasoning, creating a confusing and contradictory whole. In interpreting constitutional provisions, courts often look to the intent or the purpose behind the provision or what the voters thought they were passing when

they voted for it. The Fresno court broadly stated that the subvention provision “was intended to preclude the state from shifting financial responsibility for carrying out governmental functions onto local entities that were ill equipped to handle the task.” This fits with the explanation of Proposition 4 that was included in the 1979 ballot pamphlet: The provision would “require the state to provide funds to reimburse local agencies for the cost of complying with state mandates.” However, in the very same paragraph, the Fresno decision also says that the Constitution requires reimbursement “only when the costs in question can be recovered solely from tax revenues.” In other words, if the district can pass on the costs of the new state mandate onto its customers in the form of new or enhanced assessments, fees or charges, then the local agency’s tax revenues are not implicated and the state is not required to provide reimbursement. While this specific interpretation made sense at the time—because only raising tax revenues were constitutionally limited in 1991—it no longer made sense after 1996, when Proposition 218 added restrictions to the other revenue sources available to local agencies. Now, local agencies argue that the purpose of subvention was to protect local agencies who were illequipped to shoulder additional financial burdens after being subjected to increasingly strict constitutional revenue restrictions imposed by Propositions 13, 4 and 218. The state and the Commission, on the other hand, argue that one should only look to the specific words used in the Fresno case (“tax revenues”), and ignore the voters’ intent and later constitutional amendments such as Proposition 218. These opposing viewpoints came to a head in the Water Conservation test claim, highlighting the unresolved uncertainties introduced by Proposition 218’s passage.

Current Issues Even though the Commission agreed with the claimantwater agencies that the state’s new water conservation continued on page 32

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highlight

Utility Cost Management Utility Cost Management (UCM) has generated millions in refunds and ongoing savings for special districts by reducing electricity charges. UCMâ&#x20AC;&#x2122;s services include an in-depth review of rates and tariffs on electricity bills to identify cost-saving and refund opportunities. They work on a contingency fee basis and are compensated only when their clients realize savings or refunds. UCM offers CSDA members a 16 percent savings on their analysis and recovery services. For more information on how your agency could save on electricity costs, visit www.utilitycostmanagement.com or call 559.261.9230.

California Special District â&#x20AC;&#x201C; January-February 2015

California Special Districts Association Districts Stronger Together

SPECIAL DISTRICTS

May 19-20, 2015

to be held at T H E G R A N D 1215 J Street â&#x20AC;˘ Sacramento, CA 95814

CSDA Membership Delivers More. CSDA is proud of our ability to provide strong, respected representation of special districts at the state capitol. We’re happy to bring quality education programs to your board members and staff. And we’re delighted to be the association you trust to get timely, valuable information to your inbox as well as to your mailbox. But did you know your membership in CSDA can deliver even more to keep your agency running efficiently and effectively? We are constantly on the lookout to identify and partner with businesses that have a reputation for top-quality services, products and customer support. These businesses have agreed to offer their services tailored to CSDA members. CSDA’s Value-Added Benefits deliver cost-effective solutions to meet your agency’s needs now and in the future. It’s just one more way CSDA membership delivers more. Call Member Services at 877.924.2732 for information on any of these services:

Bank of the West – CSDA branded purchasing card program designed for special districts California CAD Solutions – Digital mapping solutions CalTRUST – Pooled investment accounts Cintas – Van-delivered first aid and safety products eCivis – Grant research and management system Employee Relations – Employment background investigations, drug testing and employee hotline services PARS – Special Districts GASB 45 Trust Program Statewide Travel Program – Discounted airfares, car rentals and other travel services U.S. Communities -– Discounted purchasing forum for office supplies, technology products and more

CSDA members have access to exclusive programs delivered by our California Special Districts Alliance Partners: • CSDA Finance Corporation – visit www.csdafinance.net for tax-exempt municipal financing • Special District Risk Management Authority (SDRMA) – visit www.sdrma.org for cost-effective Workers’ Compensation, Property & Liability and Health Coverages California Special District – January-February 2015

[Solutions & Innovations]

Innovation in technology enhances patient care Sources: Big Bear Grizzly, Camarillo Health Care District

he use of technology in modern medicine isn’t a new concept. For ages advances in technology have helped treat and heal patients around the world. Healthcare districts across the state are using advances in technology to aid in their treatment of patients as well – but these technologies don’t involve new surgical equipment or monitoring devices. They involve advances in communication. Bear Valley Community Healthcare District, Camarillo Health Care District, and Mark Twain Health Care District are three such districts using hi-tech tools to enhance their patient care.

one can be an emotionally and physically difficult task and through the district’s Building Hope Adult Day Center (Center), CHCD works to ease the anxiety and strain many caregivers face daily. The Center uses state-of-the-art technology to help make life easier for caregivers, and offers enrichment programs and activities for Center participants.

Care for the Caregivers

Through the online Family Connections Program, caregivers can log in securely and view their loved one’s monitoring history and reports. The program allows families to view their loved one’s mood, mobility, food consumption while at the center, and a

Camarillo Health Care District (CHCD) makes great efforts to treat not only the patient, but the caregiver. Caring for an older loved

“Our adoption of the person-centered care philosophy in the Adult Day Program includes utilizing important technologies to strengthen and maximize each client’s abilities daily,” states Jane Rozanski, CEO of Camarillo Health Care District. “We’ve also included technological elements that can decrease the burden for family caregivers such as Skype, FaceTime, online medical records, and online visibility. Offering a variety of technology options, to both clients and family caregivers, respects time constraints and abilities, and offers a sense of dignity and purpose.”

care plan. It also allows caregivers the ability to see how their loved ones are doing through streaming video taken onsite. The peace of mind the program offers allows caregivers to go through the other responsibilities of their day knowing almost exactly how their loved one is doing. On the other side, the Center uses technology to benefit the participants. Through its Imaginarium, participants have the opportunity to connect with the outside world through email, Facebook, Skype and other tools. The technology used by the Center is just the tip of the iceberg of services it offers, but the ability for caregivers to check in on their loved ones at any point in the day from any location brings a peace of mind that is priceless.

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.

Treating Mental Health in Rural Communities

medical experts for consultations. “We have patients that are really sick. They can’t breath, they have emphysema, they have heart failure, and they can’t travel. They are tethered to oxygen tanks, etc. So we started the TeleHealth program. So many people can get the treatment they need – the best treatment in the world – and still stay in Calaveras County,” says one doctor with the district.

Says BVCHD CEO Ray Hino, “There was a great need in Big Bear for more mental health services. If mental health issues go untreated, it can lead to domestic violence, problems at work or school, all kinds of negative effects.” But getting increased access through more licensed mental health professionals was a challenge for the district, due to its location. So in 2013, BVCHD implemented TeleConnect Therapies. Through TeleConnect, patients and therapists conduct their sessions remotely, through a screen. The district uses Mindy Mueller, a psychologist whose home base is out of town in San Diego, and the program’s success has been off the charts. The program has been so successful, BVCHD is planning to expand the program.

Advancing Technology Fosters Critical Connections

Bear Valley Community Healthcare District (BVCHD) serves a small community located in the San Bernardino Mountains. The district determined there was a need for more mental health services and turned to technology to help relieve that need. The district now utilizes TeleConnect Therapies, a service that allows patients to access a mental health professional via video chat.

Whether the technology used by the healthcare districts is connecting patients to specialists or family members, the connections it brings are tantamount to a patient’s care. In an age where information is available at the touch of a button, it is extraordinary that the medical field can provide needed care through the very same means.

Communicate on Point

Over the course of a session, Mueller can speak with the patient and control cameras on the patient’s end, zooming in or changing the angle of the lens. Because privacy is a serious concern, the Internet connection TeleConnect uses is extra secure and data is encrypted. BVCHD secured a $30,000 grant from California Endowment to pay for the program’s first year. In that first year, almost 550 residents connected with Mueller for a therapy appointment.

Persist through challenge

Video therapy is not for everyone. “If a person has a more severe disorder with hallucinations or delusions, it’s hard because they look at the screen and are really distrustful,” says Mueller. And, for some patients, communication over video feels too weird and impersonal. Largely, however, the program has brought BVCHD patients access to something they otherwise would be missing. Hino hopes to see the video technology program expand to other kinds of medical specialties – increasing health care access to the mountain residents.

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TeleHealth

Mark Twain Health Care District is using similar technology to do just that – they use a TeleHealth system to treat patients with different ailments. The district uses the technology particularly for its stroke patients. Through TeleHealth, the district uses robots and high-speed data lines to connect to long distance

California Special District – January-February 2015

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[Community Connections]

San Diego County Water Authority forges water conservation partnership with San Diego Zoo Global By Mike Lee, San Diego County Water Authority

Then the campaign went global. Thanks to a partnership with San Diego Zoo Global (Zoo), more than 4.5 million visitors a year from around the world have the opportunity to learn about the need for water conservation first-hand at the San Diego Zoo and San Diego Zoo Safari Park.

Faced with one of the most serious droughts in state history, the San Diego County Water Authority (Water Authority) confronted a challenge: How to spread the word about the urgent need for water conservation in the most cost-effective manner. Starting in April 2014, the Water Authority successfully reached out to a number of high-profile businesses and institutions – the local airport authority, a craft brewers association, professional sports teams and many others – who generously donated time and space for the regional outreach campaign “When in Drought: Save every day, every way.”

The Water Authority is a public agency serving the San Diego region as a wholesale supplier of water from the Colorado River and Northern California. It works through its 24 member agencies to provide a safe, reliable water supply to support the region’s $206 billion economy and the quality of life of 3.1 million residents. The Water Authority also plays an important role in coordinating regional drought response actions. The alliance started with a phone call from the Water Authority to the Zoo’s marketing department, which was already considering ways to get involved with drought outreach. The Water Authority left the request openended, inviting the Zoo to participate in whatever way made sense within its communications and operations plans. That approach was pivotal in allowing a simple invitation for water conservation signage to grow into something bigger. “We were casting a wide net for partners, and given the Zoo’s global reach it was an easy decision to give them a call,” said Maureen Stapleton, general manager of the Water Authority. “The extraordinary element wasn’t the request – it was the response by the Zoo, which took the idea far beyond what we could hope for.” Conservation of any kind is a natural connection for an institution with worldwide initiatives to bring species back from the brink of extinction. Those efforts include on-site conservation of plants and animals at the San Diego Zoo, San Diego Zoo Safari Park, and San Diego Zoo Institute for Conservation Research, as well as field programs on six continents. That critical conservation and science work is made possible by the San Diego Zoo Global Wildlife Conservancy and is supported in part by the Foundation of San Diego Zoo Global.

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.

“As a conservation organization, San Diego Zoo Global has always looked at ways to ensure that it is conserving natural resources such as water in its daily operations,” said Doug Myers, president and CEO of San Diego Zoo Global. “Although we use water for cleaning and as an integral part of our animal habitats, we also recycle water and reduce water use wherever possible.” For instance, San Diego Zoo Global recycles more than 16 million gallons of water annually and uses that water to

developed water conservation reminders during bus and tram tours, along with social media posts to highlight California’s water supply challenges while encouraging park supporters to conserve water. Other outreach elements included a video about the Zoo’s water conservation efforts and an article in the institution’s widely read ZOONOOZ magazine. The messages include real-world examples of water conservation efforts such as Safari Park gardens that feature native species and low-water-use plants. They

conservation efforts and advice about how messages inside the parks could complement related efforts across the region. It was a perfect fit – the alliance benefitted both groups and significantly raised the profile of water conservation efforts. Among other things, the campaign helped communicate the water-saving efforts embraced by San Diego County residents and businesses to visitors from across the state, nation and world. To formally launch the campaign, the Zoo presented its multi-pronged approach to the Water Authority’s Board of Directors in October. “The Zoo’s leadership is remarkable on two fronts: the first is its commitment to conserve and recycle water at its facilities long before the current drought began. The second is its willingness to use its considerable influence to inspire all of us to conserve wherever we can,” said Mark Weston, chair of the Water Authority’s Board.

support its horticultural collection at the Zoo and the Safari Park. In addition, the Zoo uses water-saving technologies such as low-flow toilets, water reclamation ponds and evaporation-reducing mulch around plants. The Zoo’s marketing staff spent weeks redesigning signs for the two parks that integrated information about water-smart practices into the existing themes. It also

California Special District – January-February 2015

also refer people to the Water Authority’s website, www.whenindrought.org, which provides updated information about water supply conditions, water-use restrictions and related issues. And, they emphasize the need for Zoo visitors to make water conservation a way of life. As the Zoo crafted the creative elements of the campaign, the Water Authority provided expertise about local water

“The Zoo’s leadership is remarkable on two fronts: the first is its commitment to conserve and recycle water at its facilities long before the current drought began. The second is its willingness to use its considerable influence to inspire all of us to conserve wherever we can,” said Mark Weston, chair of the Water Authority’s Board. “That’s the kind of leadership and engagement it will take across our region and state to weather this drought while preserving the economy and quality of life that we value in San Diego County.”

Legal Brief Are You Prepared for the 2015 Prevailing Wage Changes? By Deborah Wilder, Contractor Compliance and Monitoring Inc.

Once again the California Legislature has made several changes to the prevailing wage requirements. Public Agencies to file PWC-100: Effective July 1, 2014, all agencies with public works projects over $1,000 are required to register each project by completing an online PWC-100 form. If you have not yet completed a PWC-100 you can go to the Department of Industrial Relation’s website (www.dir. ca.gov/pwc100ext/) to log in. Each person will receive a unique login and password. More than one person within an agency can have login permission in order to complete a PWC-100. This requirement applies for all projects over $1,000. The PWC-100 is to be completed within five days of contract “award.” If you have not done this yet and have an existing project started after July 1, 2014, the agency should still complete the PWC-100 form. While there is currently no penalty to an agency for failing to do this, a contractor will not be able to submit their certified payrolls electronically to the State unless and until the public agency inputs the PWC-100 information. New Mandatory Contract Language Required: Effective January 1, 2015, all bid solicitation and public works contracts are required to include language advising contractors of their obligation to register as

“public works contractors” and pay the applicable annual fee of $300: • No contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)]. • No contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. • This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. This language is in addition to any language an agency may be required to include relating to mandated prevailing wage obligations. Only Registered Public Works Contractors May Work on Public Works Projects: For all bid solicitations after March 1, 2015 and/or projects awarded after April 1, 2015, all contractors,

Existing projects are not required to submit documentation to the CMU unless the project continues into 2016. All projects still underway in January 2016 will be required to submit certified payrolls to the CMU.

subcontractors and others covered by prevailing wage requirements are required to register as a “public works contractor” and pay an annual fee of $300. A contractor may not work on a public works project unless the fee has been paid. New Obligation for Contractors to Submit Payrolls Electronically: For all projects awarded after April 1, 2015, the contractor and all subcontractors must submit their certified payroll documentation to the Department of Industrial Relations (DIR) Compliance Monitoring Unit (CMU) for review. If an agency has failed to complete a PWC-100 with the DIR, the contractor will not have access to the Compliance Monitoring Unit System for the submission of certified payrolls. Existing projects are not required to submit documentation to the CMU unless the project continues into 2016. All projects still underway in January 2016 will be required to submit certified payrolls to the CMU. Exemptions: Agencies that have an approved Labor Compliance Program under Labor Code Section 1771.5 (which requires monitoring on all prevailing wage projects) may be exempt from the PWC-100 and CMU requirements. An Agency’s Ongoing Obligation: The contractor’s submission of certified payroll to the DIR does not excuse the agency’s continuing obligation to be cognizant of prevailing wage requirements and potential violations on projects and to take appropriate action to investigate and seek restitution or turn the matter over to the DIR for additional investigation. If the agency becomes aware of a potential prevailing wage/labor compliance violation, the agency has two options: 1) Report the information to the Division of Labor Standards Enforcement (DLSE) for further investigation and enforcement; or 2) Conduct its own investigation and then proceed to seek restitution and take appropriate actions. (This includes the imposition of penalties, which the agency may keep). With the DIR now having 18 months after a Notice of Completion is filed to complete its prevailing wage investigation, more and more agencies are choosing to investigate potential prevailing wage violations in house as a way to manage a more expeditious project closeout.

California Special District – January-February 2015

New Changes Still to Come: The DIR intends to implement the Compliance Monitoring Unit (CMU) to receive and review electronic certified payroll from contractors for all project proposals after March 1, 2015 or awarded after April 1, 2015. Ideally, the public agency should have full and complete access to all certified payroll and related labor compliance documents through the CMU. However, the program is not up and running yet. Public agencies should still require certified payroll and related labor compliance documentation be submitted to the agency until the agency is satisfied that the CMU system provides the agency with all information needed. The DIR also intends to revise prevailing wage and apprenticeship forms early in 2015. Deborah Wilder is an attorney and the president of Contractor Compliance and Monitoring Inc. (a CSDA member) and can be reached at dwilder@ccmilcp.com.

leadership

What’s your new year’s resolution?

Whether you have resolved to advance your career, learn a new skill or get the recognition you deserve, the Special District Leadership Foundation (SDLF) can help. SDLF offers four programs: the Special District Administrator Certification for management staff of special districts; Recognition in Special District Governance for board members and trustees; District Transparency Certificate of Excellence for districts wishing to demonstrate their commitment to transparency; and the Districts of Distinction Accreditation for districts that want to highlight their prudent fiscal practices and other ways they effectively operate and govern a special district.

SDLF also offers a number of resources to help individuals and special districts achieve their goals. There are three scholarship funds available for districts with budgets of under $10 million. The Special District Coaching Program matches experienced special district managers with emerging leaders for one on one ongoing or periodic confidential coaching. SDLF has also designed a study guide for those pursuing the Special District Administrator (SDA) designation. This year, the foundation will hold two So You Want to Be a General Manager? workshops: the first on July 12 in Newport Beach and the second on September 21 in Monterey. This practical career development workshop is geared toward senior executives and emerging leaders in special districts. It includes group and panel discussions on the journey roles and skills set of a general manager. Class size is limited and early registration is encouraged. For more information on the workshops visit www.csda.net. For information on SDLF programs and resources visit www.sdlf.org.

Congratulations to those who have completed the following SDLF programs.

Special District Administrator Certification • Michael Bardin, SDA Renewal – October 2014 • Harry Ehrlich -SDA Renewal – December 2014

Districts of Distinction Accreditation

• Southgate Recreation & Park District reaccreditation

Public Member Appointees

CSDA Appointees

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

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

Staff

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

David Aranda, SDA, North of the River Municipal Water District Sandy Raffelson, Herlong Public Utility District Jean Bracy, SDA, Mojave Desert Air Quality Management District

District Transparency Certificate of Excellence • • • • • • • •

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

Recognition in Special District Governance

Desert Recreation District – October 2014 Orange County Sanitation District – October 2014 Foresthill Public Utility District – November 2014 Phelan Pinon Hills Community Services District – November 2014 El Dorado Irrigation District – November 2014 Southgate Recreation & Park District – December 2014 Big Bear Airport District – December 2014 Alameda County Water District – January 2015

• • • • • • • • • • • • • • •

Rex Delizo, Stefge Sanitary District – December 2014 Maureen Rivers, Orange County Cemetery District – December 2014 Vivien Owen, Orange County Cemetery District – December 2014 Michael Seaman, Fulton-El Camino RPD – December 2014 Bathzabe Yanez, East Palo Alto Sanitary District – December 2014 Joe Estes, Palmdale Water District – December 2014 Jasmin Hall, Inland Empire Utilities Agency – December 2014 Tom Link, Visalia Public Cemetery District – December 2014 George Ouzounian, Visalia Public Cemetery District – December 2014 Geneva Philpot, Visalia Public Cemetery District – December 2014 Shirley Salas, Visalia Public Cemetery District – December 2014 Felix Hernandez, Bodega Bay Public Utility District – December 2014 Ronald Coats, East Valley Water District – December 2014 Robert Allen, Selma Cemetery District – December 2014 Una Tristan, Selma Cemetery District – December 2014

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District Transparency Certificate of Excellence A stand-alone program of SDLF, made available to districts that apply and meet certain requirements. It is also a required component of the District of Distinction Accreditation. This program promotes transparency in the operations and governance of specials districts to the public. For more information and an application, visit www.sdlf.org or call 916.231.2939.

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California Special District – January-February 2015

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

District reimbursement eligibility threatened by commission’s ruling [continued]

statutes and regulations were new state mandates, the Commission denied reimbursement on two grounds. First, the Commission dismissed two water agencies because they do not currently collect and spend tax revenue, relying on a strict reading of Fresno’s “solely from tax revenues” language, without consideration of the voters’ intentions or later constitutional amendments. Second, the Commission argued that Proposition 218 did not in any way limit the districts’ ability to implement new or increased assessments, fees or charges, ignoring the fact that Proposition 218 ultimately vests each local agency’s customer base with approval authority for such. Denying reimbursement for special districts because the districts do not enjoy tax revenues works against the protective purpose of the subvention requirement as it was explained in the ballot pamphlet in 1979 and in the Fresno case in 1991. Instead, the Commission’s recent decision rigidly implements the words that the Fresno court used in 1991 – before Proposition 218 – that limit reimbursement solely to agencies funded by tax proceeds and restricted in the ability to impose new or enhanced taxes. Now, with constitutional restrictions on fees, charges and assessments, as well as taxes, a district without any tax revenue and funded solely by fees or assessments is much less equipped to absorb new statemandated costs than a district that has tax revenue in addition to revenue from fees, charges and assessments. While the Commission’s interpretation arguably fit with some pre-Proposition 218 cases, it does not support the purpose of the subvention requirement—protecting local agencies that are ill-equipped to absorb new financial burdens.

The Commission’s decision as it relates to special districts’ authority to levy assessments and propertyrelated fees and charges not only conflicts with the purpose of Proposition 4, but also deviates from the reasoning stated in its own prior decisions. Proposition 218 gives each local agency’s customer base the ability to approve or disapprove of any new or increased assessment, fee or charge. The Commission has held in past decisions that the voters’ or customers’ ability to reject proposed revenue increases meant that the local agency is entitled to reimbursement for new state mandates. The Commission has now abruptly and without explanation reversed course and completely disregards the effect of Proposition 218. The reasoning leaves many special districts exposed to the nightmare scenario of being required to implement new state mandates, but incapable of funding them because of constitutional restrictions on increasing revenue. The Commission also ruled that the local agency must attempt to increase revenues pursuant to Proposition 218 and fail before it can be eligible for subvention. The state’s constitutional obligation to provide reimbursement for new state mandates is unconditional; it is not contingent on agencies having exhausted all other attempts to fund the new state mandates. If applied prospectively, this new analysis may require agencies subjected to new state mandates to “try but fail” to pass, as applicable, new or increased assessments, fees or charges, or taxes before seeking and being eligible for state reimbursement. This case is only the newest in a series of actions by the state over the past 30 years to chip away at the state’s reimbursement obligation. With the stroke of a pen, the Commission has now completely excluded from subvention all special districts that do not collect and spend tax revenue, and has also excluded every enterprise district that provides property-related services such as water, sewer or refuse collection services. The time is ripe for the courts to revisit the subvention provision and interpret it in light of Proposition 218. Disclaimer: This article represents the views of its authors, Minasian, Meith, Soares, Sexton & Cooper, LLP, and not any of the authors’ clients. This article is intended for general information only and is not offered or intended as legal advice. Always seek the advice of your district’s legal counsel when confronted with legal questions or issues.

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anaging Risk

Ergonomics and A legal update chair height, adequate equipment spacing and good desk posture — can help you stay comfortable and injury free at work. Follow these 10 office ergonomics tips to help you avoid fatigue: 1) Make sure that the weight of your arms is supported at all times. If your arms are not supported, the muscles of your neck and shoulders will be hurting by the end of the day.

Ergonomics The single largest risk exposure every employer faces is the safety of their employees. When conducting ergonomic assessments for our Members, a common issue for employees who sit for long periods of time is muscle fatigue. Complaints of shoulder, neck and arm discomfort at the end of the day are a symptom of improper utilization of the employee’s workstation. Proper ergonomics may prevent musculoskeletal injuries (such as back strain or carpal tunnel syndrome) by reducing physical and mental stress caused by the workstation setup. By focusing on the physical setup of your workstation and the tools you use, you can reduce your chances of injuries. It also is important to evaluate the work process, including job organization, worker

rotation, task variety, and demands for speed and quality. Many people use laptop computers as secondary workstations. You should not use a laptop as your primary computer. If you do, using a docking station that provides an adjustable keyboard can help keep your wrists in a neutral position to reduce stress and strain. Working intensely over long periods of time without taking breaks can greatly increase your risk for musculoskeletal injuries. Taking regular breaks from your work and doing stretching exercises may reduce the risk of repetitive motion injuries. Try taking three to five minute breaks or changing tasks every 20 to 40 minutes. If you sit behind a desk for hours at a time, you’re not doomed to a career of neck and back pain or sore wrists and fingers. Proper office ergonomics — including correct

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2) Watch your head position, and try to keep the weight of your head directly above its base of support (neck). Don’t “crane” your head and neck forward. 3) Don’t be a slouch! Slouching puts more pressure on the discs and vertebrae of your back. Use the lumbar support of your chair and avoid sitting in a way that places body weight more on one than on the other. Move your chair as close to your work as possible to avoid leaning and reaching. Make sure to “scoot” your chair in every time you sit down. 4) The monitor should be placed directly in front of you, with the top no higher than eye level. The keyboard should be directly in front of the monitor so you don’t have to frequently turn your head and neck.

Officers

David Aranda, President Jean Bracy, Vice President, Mojave Desert Air Quality Management District Ed Gray, Secretary, Chino Valley Independent Fire 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 Muril Clift, Cambria Community Services District Sandy Raffleson, Herlong Public Utility District Michael Scheafer, Costa Mesa Sanitary District

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.

5) Talking on the phone with the phone receiver held between the neck and ear is really bad practice. You know that’s true, so don’t do it!

Legal Update: Tort Actions Against Public Entities - CCP § 1038 Sanctions Cannot be Awarded Against Parties’ Counsel Kathryn Settle v. State of California California Court Of Appeal, Second Appellate District (July 23, 2014)

6) The keyboard and the mouse should be close enough to prevent excessive reaching which strains the shoulders and arms.

When a public entity is sued in tort, Code of Civil Procedure (“CCP”) § 1038 requires a mandatory award of defense costs, including reasonable attorneys’ fees, where the trial court grants summary judgment and finds that plaintiff lacked reasonable cause and good faith in filing or maintaining a tort action against the public entity. In this case, plaintiff Kathryn Settle sued the State of California (“State”) and City of Morro Bay (“City”) for dangerous condition of public property after a sand cliff on the beach collapsed, causing her to fall into the water and rocks. The State did not own, control, or maintain the beach. Counsel for the State warned plaintiff’s attorney, James McKiernan, that it would seek sanctions pursuant to § 1038 if the complaint was not dismissed. The warning went unheeded.

7) Avoid eye strain by making sure that your monitor is not too close - it should be at least an arm’s length away. 8) Take steps to control screen glare, and make sure that the monitor is not placed in front of a window or a bright background. 9) You can rest your eyes periodically for several seconds by looking at objects at a distance to give your eyes a break. 10) The feet should not be dangling when you are seated. If your feet don’t comfortably reach the floor or there is pressure on the backs of your legs, use a footrest or lower the keyboard and chair. These are a few tips to help your employees work safely and more comfortably at their workstations.

The State and the City were granted summary judgment on the ground that the action was barred by a statutory immunity for injuries caused by a natural condition of unimproved public property such as a beach. (Gov. Code, §§ 831.2; 831.21.) The trial court found that “Plaintiff was notified of the applicability of the immunities afforded to the City and the State pursuant to Gov. Code sections 831.2 and 831.21 but proceeded with the action without any evidence to overcome the immunities. No reasonable plaintiff would have maintained this action against the City and the State.” The trial court awarded sanctions against McKiernan pursuant to § 1038, ruling that his attempts to deflect liability for any fee award on the grounds that § 1038 only applies to a party and not his or her attorney was without merit. McKiernan appealed the trial court’s imposition of sanctions against him, arguing that § 1038 does not

California Special District – January-February 2015

SDRMA Staff

Gregory S. Hall, ARM, Chief Executive Officer C. Paul Frydendal, CPA, Chief Operating Officer Dennis Timoney, ARM, Chief Risk Officer Ellen Doughty, Chief Member Services Officer Debra Yokota, Claims Manager Wendy Tucker, Senior Member Services Specialist Alana Batzianis, HR/Health Benefits Specialist II Jennifer Ng, Claims Examiner I Shawn Vang, Accountant Rajnish Raj, Accounting Technician Rachel Saldana, Administrative Assistant

authorize the imposition of defense costs against counsel. The State admitted that § 1038 is silent on whether defense costs may be imposed on counsel. Thus, the issue for the Second District Court of Appeal was one of statutory construction. The Court analyzed the language of § 1038 and acknowledged that the words “counsel,” “counsel for plaintiff” or “plaintiff’s attorney” are not in the statute. It also noted that the trial court relied on a previous appellate decision ordering plaintiffs and their attorney to pay § 1038 sanctions (Carroll v. State of California (1990) 217 Cal.App.3d 134 (“Carroll”), continued on page 42

Save the Date SDRMA Safety/Claims Education Day will be held on Tuesday, March 24 at the Hilton Sacramento Arden West. We hope you plan on attending as we have a full day of informative workshops and presentations. Breakfast and lunch will be included. Register at www.sdrma.org by clicking on: Register for a training workshop.

Money Matters Recognizing and preventing fraudulent social engineering By Derek Dahlen, U.S. Bank Wholesale Banking Risk Management

Over the past several months, the financial services industry experienced a growth in deceptive social engineering activities targeting businesses’ use of wire and ACH funds transfers. These fraud attempts originated from increased foreign and domestic social engineering. Their focus is more on deceiving businesses’ employees and internal financial processes, as opposed to attacking underlying financial technologies. How does this fraudulent social engineering work? These attacks normally use techniques that convince organizations to unintentionally move money to accounts controlled by cyber thieves. In many of these cases, a delay in discovering and reacting to the crime serves to reduce or eliminate the chance of stopping the transaction or being able to recall the funds. The scheme normally starts with a fraudster gathering information about a company’s organizational structure and leadership through social media (Facebook, LinkedIn), Google searches, or other publicly available

documentation. They identify key leaders who may request a payment to a third party (for example, C suite, high-level executive) and spoof an email or call (or both) from the leader to his or her financial staff with an urgent tone. In a variant to this attack, the fraudster may request a change in account information posing as a key vendor receiving payment. This is especially prevalent for vendors operating out of a foreign country. The email domain of the sender of the fraudulent email may be extremely close to that of the actual company (i.e., using an “n” instead of an “m”). Based on the urgency of the email (or phone call), the financial staff may quickly complete a wire (or ACH) transfer without contacting the original requestor to confirm the payment details ensuring validation of the request. Any secondary approvers may also be informed that it was an urgent request and will likely approve without verification. The funds are received by an intermediary (often a money mule) who sends the money directly to the fraudster or may be directly received by the fraudster, typically, if a foreign wire. Recalling funds after a fraudulent transaction In the event of a fraudulent transaction, a successful recall of unauthorized funds is never guaranteed. Foreign banking laws and policies can impede or prohibit the refund of unauthorized funds. Your organization will be responsible for the lost funds, resulting in a potentially material loss.

CSDA F C

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Officers

Jo MacKenzie, President, Vista Irrigation District Paul Hughes, Vice President, South Tahoe Public Utilities District Steve Perez, Secretary, Rosamond Community Services District Leslie Keane, Treasurer, Orange County Cemetery District

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

Members of the Board

John Martin, Tehachapi-Cummings County Water District Matthew McCue, Mission Springs Water District

Consultants

Rick Brandis, Brandis Tallman, LLC David McMurchie, McMurchie Law Josephine Libunao, BNY Mellon Trust Co., NA William Morton, Municipal Finance Corporation Albert Reyes, Nossaman, LLP Saul Rosenbaum, Prager & Co., LLC Nicole Tallman, Brandis Tallman, LLC

What can you do to help protect your organization? • Trust, but verify - Consider enhancing your operational money movement controls to verify the source of any email or phone-based request via an alternate communication method. For example, if a request is received from the CFO via email, use the company directory phone number (not the one in the email) to call and confirm the transfer details. Apply further scrutiny if the funding account is new and has not been used in past transactions. • Create awareness - Inform your financial staff of these scams and ensure they understand operational protocol. • Use email blocking - Work with IT staff to assess the viability of filtering or blocking messages of this nature. • Communicate quickly - Inform your IT security staff immediately when these events occur. It may also be appropriate to contact U.S. law enforcement agencies as well as law enforcement agencies with jurisdiction over the recipient account’s bank. • Implement dual control - This will ensure two separate individuals are required to approve each transaction request. Dual control also helps mitigate the risk of fraudulent transactions due to malware account takeover. • Protect workstations - Aside from social engineering attacks, threats also continue to come from malware inadvertently installed on workstations. U.S. Bank recommends installing IBM® Security Trusteer Rapport™ to protect against financial malware fraud. This tool is provided at no cost to U.S. Bank SinglePoint clients. Find more details at http://www.trusteer.com/landing-page/usbank-business. Additional reading http://blog.phishlabs.com/targeted-wire-transfer-scam-aims-at-corporate-execs http://www.businessnewsdaily.com/6410-corporate-executives-targeted-in-new-emailscam.html

CSDAFC Staff

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

Recently closed financings In 2014, the CSDA Finance Corporation closed more than $33MM in financings for special district projects and purchases. Hayward Area Recreation & Park District Property Purchase - $16,515,000 Cameron Park Community Services District Refinancing - $7,680,000 Phelan Pinon Hills Community Services District Solar Project - $5,000,000 McKinleyville Community Services District Teen Center - $1,500,000 Mission Springs Water District Sewer Collection Project - $1,145,000 Camarillo Health Care District Facility Remodel - $600,000 Feather River Air Quality Management District Admin Building - $400,000 Marinwood Community Services District Fire Truck - $364,692 Pine Cove Water District Property Purchase - $115,000 For more information or a no-obligation quote, contact CSDA Finance Corporation at 877.924.2732 or visit www.csdafinance.net.

Derek Dahlen is a customer security advocate with over ten years of experience in information security and technology risk.

Interested in learning more about preventing fraud in your district? Join CSDA for the webinar “Spot the Fraud! Fraud Detection and Prevention for Special Districts” on Thursday, March 19 from 10:00 a.m. – 12:00 p.m. Visit www.csda.net or call 877.924.2732 for registration information.

California Special District – January-February 2015

[What’s so special]

Hike your pie off

Santa Clara Valley Open Space Authority Each Thanksgiving holiday, it is not unusual for Americans across the country to spend time with loved ones and indulge in delicious home cooked meals and treats. It’s a popular American tradition – one that Santa Clara Valley Open Space Authority understands well and has integrated into its outreach program the last few years. Through the authority’s “Hike Your Pie Off” event, community members can enjoy the outdoors right after Thanksgiving, while being active after what may have been a day of indulging. California Special District asked Santa Clara Valley Open Space Authority about the event’s success and the other ways the agency works to get the public involved in the great outdoors.

Right after the Thanksgiving holiday, OSA hosted a “Hike Your Pie Off!” event. Explain the event. This past Thanksgiving marked the third anniversary of the Open Space Authority’s annual “Hike Your Pie Off” event, which takes place a day or two after the holiday known for heaping platters of food and tight waistbands. Registrations for the event have grown to nearly one hundred, although this year’s attendance dipped dramatically due to heavy rainfall on the day of the hike.

Marc Landgraf External Affairs Manager Brad Sherwood

We wanted to create a special program for families to encourage them to get outdoors and be active during the long holiday weekend. Teri Rogoway, the Authority’s educational programs coordinator, designed the program to accommodate varying levels of hiking experience and so three hikes are offered – easy, moderate and challenging. The event attracts experienced hikers, as well as novice hikers and families with young children. Our goal is that everyone who wants to participate is able to enjoy it fully and at their own pace. “Hike Your Pie Off” takes place at the Open Space Authority’s Sierra Vista Open Space Preserve, with more than 1,600 acres of woodlands and grasslands, 2,500 foot peaks and ten miles of trails. The preserve is truly

Santa Clara Valley Open Space Authority Established: 1993 Size: 1,304 square miles Population: 1.7 million

Budget: $4.3 million Location: Santa Clara County, California Website: openspaceauthority.org

an urban-edge wilderness as it is just a 30-minute drive from downtown San Jose. The hikers can take in sweeping views of the San Francisco Bay, and the Santa Cruz and Hamilton and Diablo mountain ranges.

What inspired the authority to hold this event? Many of us tend to eat a bit more than usual at Thanksgiving so it just makes sense to get outside and burn off those extra calories – and enjoy the beauty of nature in the process.

What is the authority’s mission? What are its priorities in serving the public? The Open Space Authority conserves the natural environment, supports agriculture and connects people to nature by protecting open spaces, natural areas, and working farms and ranches for future generations. The guiding force behind all of our land acquisitions and conservation work is the Santa Clara Valley Greenprint, a 30-year conservation vision that we developed last year with input from the community, scientists and other stakeholders. We prioritize our resources to protect ten Conservation Focus Areas that are identified in the Greenprint. Protecting these areas will help to ensure the long term environmental health and economic vitality for our region. The Authority is also partnering with the county, cities, and nonprofit organizations to invest in urban open space, parks, trails and urban-edge agriculture to enhance the quality of life for urban residents.

How did the event help fulfill the authority’s mission? When people visit an open space preserve and engage with nature, they gain a deeper and more personal understanding of nature’s value. Spending a few hours in nature at an event like “Hike Your Pie California Special District – January-February 2015

Off” can demonstrably change a person’s perspective. We often hear people express amazement that these open space preserves exist so close to urban areas and are there for their enjoyment – free of charge.

What are other popular special events the authority holds throughout the year? We have a monthly schedule of hikes and activities and several annual marquee events that tend to attract hundreds and even thousands of visitors. We regularly partner with the San Jose Astronomical Association and offer stargazing with the use of high powered telescopes. This activity is very popular among families with children. Another larger event is our Family Farm Feast which celebrates local agriculture with healthy food, entertainment, live animals, resource booths and family activities. The “Feast” takes place in the lovely Coyote Valley Open Space Preserve, which is truly at the heart of Santa Clara County.

What advice would you give other open space agencies who may want to hold a similar event? A terrific benefit of working in the conservation field is that we have a wealth of creative people offering excellent programs to engage the community, so I encourage other agencies to reach out to their colleagues and share ideas. We have found at the Open Space Authority that our ongoing community engagement and participation at outreach events sponsored by other organizations help us to keep a finger on the community pulse. These interactions help to inspire ideas for themes and activities that most people are bound to enjoy. Thank you to Marc Landgraf, External Affairs Manager for interviewing with California Special District.

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Managing risk [continued from page 35] even though the court in Carroll did not specifically consider whether § 1038 authorized the imposition of defense costs against counsel. The trial court also cited a treatise on Government Tort Liability Practice, which incorrectly interpreted the Carroll decision to hold that § 1038 “provides that defense costs are awardable against not only plaintiffs and cross-complainants, but also their attorneys.” (Van Alstyle, Cal. Government Tort Liability Practice (Cont.Ed.Bar 2013) § 8.87, p. 477.) The State argued that if a plaintiff or his/her attorney can be sued for malicious prosecution for a bad faith filing or a frivolous action, why can’t fees and costs be awarded pursuant to §1038? In response, the Court reasoned that this argument and analogy fail because public entities are precluded from bringing malicious prosecution actions. A public entity can use § 1038 as an alternative to an action for malicious prosecution. Further, California statutes authorizing the imposition of sanctions or fees against parties and their counsel are numerous and explicit. They include CCP §§ 128.7, 177.5, 473 (b), 2023.030, etc. The Court reversed the trial court’s award against attorney McKiernan, holding that it would only consider adding language to a statute in extreme cases

District Snapshots Nipomo Community Services District PHOTO: 2015 marks a significant milestone for the Nipomo Community Services District – its 50th anniversary providing water and sewer services to parts of Nipomo. In commemoration of this milestone, Assembly Member Katcho Achadjian’s office recognized the district with resolutions.

where, as a matter of law, the Court was convinced that the Legislature, through inadvertence, failed to utilize the word or words which give purpose to its pronouncements. This case, according to the Court, is not such an extreme case. As stated in a footnote, “….[W]hile the trial court’s order may have been just, fair and reasonable under the circumstances, it was not authorized by § 1038.” This decision clarifies the scope of CCP § 1038, holding that unless and until the Legislature amends § 1038 to authorize an award of sanctions against counsel, defense costs and fees may not be imposed against counsel pursuant to this statute. There are numerous statutory remedies available; yet, in the Settle case, the attorney general elected not to seek relief under any other statutes, including CCP § 128.7. And a word to the wise: treatises sometimes get it wrong. ©LOW, BALL & LYNCH, 2014

For further information on this article or to answer questions, please contact SDRMA Chief Risk Officer Dennis Timoney at dtimoney@sdrma.org.

Protected From the Unexpected As California’s trusted risk management advisor, SDRMA protects its members from the unexpected by providing a unique combination of coverage protection programs, world-class risk management consulting and experienced technical experts. 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. We look forward to serving you!

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