California Special District by California Special Districts Association

CA SPECIAL

DISTRICT Publication of the California Special Districts Association

Volume 10, Issue 2, Mar - Apr 2015

FEATURE

Interview with State Controller Betty Yee

Seeking Safe and Accessible Water for All Through Proposition 1

Whatâ&#x20AC;&#x2122;s so special: Comedy under the stars Cosumnes Community Services District

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 2 • March - April 2015

CONTENTS

Board President’s message

The trio of local government service delivery

Minding the store Interview with State Controller Betty Yee

Seeking safe and accessible water for all through Proposition 1

Solutions & Innovations

Serve to be great: Leadership lessons from prison, a monastery, and a boardroom

5 Professional Development Special Districts Legislative Days; GM Summit; Calendar

24 Community Connections Scouting new methods for community outreach - Vallecitos Water District

32 Managing Risk Prevailing wage issues for public agencies

6 CSDA news CSDA 2014 Legislator of the Year; District purchasing card rebate checks; Board Secretary/Clerk Conference

26 Legal Brief Closed session final decision and vote details must be publicly reported at the same public meeting

34 Money Matters Reading CalPERS annual actuarial valuation reports

8 Grassroots Action Update New requirements and guidelines

28 SDLF A glimpse: So You Want to Be a General Manager? workshop

38 What’s So Special Comedy under the stars Cosumnes Community Services District

12 In Brief Fire district changes name; Toilet-totap water program; Website helps residents assess air; and more Printed on recycled paper. California Special District – March-April 2015

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

BOARD PRESIDENT’S MESSAGE

The trio of local government service delivery

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

Steve Perez

a CSDA member, you are well aware of CSDA’s advocacy efforts at the Capitol. Our hardworking advocacy team spends their days researching legislation, building relationships with legislators and working to communicate with members of the Legislature on issues of importance to special districts.

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 Bernice Creager, Public Affairs Specialist Nicole Dunn, Editor Sharon Foster, Professional Development Assistant Monica Greenberg, Business Development Specialist Jess Lima, Legislative Assistant Christina Lokke, Senior Legislative Representative Charlotte Lowe, Executive Assistant Jimmy MacDonald, Associate Legislative Representative Chris Palmer, Public Affairs Field Coordinator Koy Saeteurn, Receptionist Cassandra Strawn, Member Services Specialist James Wilfong, Senior Designer Rick Wood, Finance & Administration Director 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

The adage, “strength in numbers” is true - and not just in the power of special districts being stronger together.

There is another key component to effective advocacy at the state Capitol: partnership with our local government colleagues. The adage, “strength in numbers” is true - and not just in the power of special districts being stronger together. There is power in teaming up with the other legs of local government: cities and counties, so we can collectively work to best serve constituents throughout California. CSDA works hard to keep our relationships with the League of California Cities and California State Association of Counties (CSAC) strong. Our advocacy

A proud California Special Districts Alliance partner

team meets regularly with a local government coalition to ensure each organization stays informed on the issues that need focus and how each association can work together to provide a unified voice on important matters. We coordinate letter writing campaigns and testimonies for legislation with these - and often times additional – organizations and stakeholders. Recently, CSDA began efforts to become a formal partner with the Institute of Local Government (ILG), joining the League of California Cities and CSAC. The ILG supports California’s local governments as they work to establish and implement good governance policies and practices to better serve their communities. As a partner, CSDA will support these efforts and special districts will further benefit from CSDA’s involvement through accessing ILG’s programs, technical assistance, and online and print resources. CSDA knows that special districts truly are stronger together. And by joining with our local government counterparts - cities and counties - our voice and influence at the Capitol grows even stronger.

HIGHLIGHT

2GREATEVENTS

REGISTER NOW! Special Districts Legislative Days and GM Leadership Summit Registration is now available for two popular CSDA conferences. The first, Special Districts Legislative Days will be held in Sacramento on May 1920 and offers attendees the opportunity to meet with legislators, key issue experts, and California’s leaders to hear first-hand about the latest legislative proposals directly affecting the delivery of essential local services. Explore how decisions are really made in the Capitol and how you can influence outcomes. State Controller Betty Yee will be this year’s keynote. Find an interview with her on page 14. The second, CSDA’s 2015 General Manager Leadership Summit will be held July 12-14, at the Hyatt Regency in Newport Beach. This year’s GM Leadership Summit will feature more new content than ever before with five additional breakout sessions added to our schedule. This makes for a total of fifteen breakout options covering a variety of essential topics for special district staff. Back by popular demand is last year’s keynote presenter John Spence, sharing all new advanced leadership development content. Attendees will also hear from Matt Tenney the acclaimed author of Serve to Be Great: Leadership Lessons from a Prison, a Monastery and a Boardroom. See more from Matt on page 22. Find more information about both of these conferences, including registration and hotel information, at www.csda.net.

California Special District – March-April 2015

May May 5

WEBINAR

Social Media Challenges and Opportunities: A Legal Perspective

May 12

WEBINAR

Understanding Public Entity Liability Exposures

May 18

WORKSHOP

Best Practices in Strategic Planning: Effective Approaches that Work, Sacramento

May 19-20

SDLD

Special Districts Legislative Days, Sacramento

May 27

WEBINAR

District’s Role in the Interactive Process

May 29

WEBINAR

Positioning Your Agency for a Successful Financing

June 3

WORKSHOP

Staying in Compliance: Understanding Fundamental Special District Laws, Sacramento

June 10

WEBINAR

Required Sexual Harassment Prevention Training for Special Districts

June 16

SDLA

SDLA: Governance Foundations, Fresno

June 18

WEBINAR

Managing Personal Device Use: Data Theft, Hacking, and the Public Records Act

June 23

WORKSHOP

Social Media Basic Training to Mastery

June

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

CSDA NEWS ASSEMBLY MEMBER KATCHO ACHADJIAN HONORED AS LEGISLATOR OF THE YEAR BY CSDA Assembly Member Katcho Achadjian was recognized as CSDA’s 2014 Legislator of the Year. Distinguished for his non-partisan spirit, and support of local control and special districts, Assembly Member Achadjian has worked to empower communities and find answers for local needs. “As a former County Supervisor, I understand first-hand that the needs of each county can vary greatly. Working with CSDA has been a key component in addressing the current issues that are affecting local governments and it has been an excellent experience working with them. I am honored to receive this award and I look forward to collaborating with the organization in the future,” stated Assembly Member Achadjian. Assembly Member Achadjian’s close work with special district leaders, who provide essential services to local communities, is an example of the type of state-local collaboration that best meets Californians’ needs.

Bythe

Numb3rs Acres of parkland preserved, protected and proactively maintained by Pleasant Hill Recreation and Park District.

CSDA DISTRICT PURCHASING CARD PAYS OFF In February CSDA distributed more than $16,000 in rebate checks to agencies participating in the District Purchasing Card program. The amount of each check was determined by the district’s individual spend, with several agencies earning more than $1,000. First launched in 2012, the District Purchasing Card program aggregates the spend of all participating agencies to determine the rebate rate, so the more districts using the card, the greater the rebate potential. Districts are finding the card useful for vendor payments, travel expenses, procurement related items, online purchases, utility bills and much more. Application forms and step-by-step instructions are available at www.csda.net. For more information, contact CSDA Member Services.

SUCCESS

BOARD SECRETARIES AND CLERKS GAIN ESSENTIAL SKILLS AND INFORMATION

Special district board secretaries and clerks from all over the state gathered in San Diego this February for two full days of education at CSDA’s Board Secretary/Clerk Conference and Certificate Program, co-sponsored by the Special District Risk Management Authority (SDRMA). The conference, now in its fifth year, features a certificate program for first-time attendees as well as a keynote presentation and fourteen breakout session options for advanced attendees. This year’s keynote “Customer Service in the Public Sector” with Dr. Bob Jerome was sponsored by CPS HR Consulting and included tips on how to increase customer satisfaction and exceed expectations. Breakout session options included: Writing Effective and Compliant Meeting Minutes and Notes, Policy & Procedure Writing, Conflicts of Interest Under the Fair Political Practices Act and much more. A special thanks to all of the conference sponsors and exhibitors: SDRMA, the California Special Districts Alliance, the Special District Leadership Foundation, CPS HR Consulting, Black Mountain Software, CSBA, ECS Imaging, Inc., JCG Technologies, and Laserfiche. Mark Your Calendars The Special District Board Secretary/Clerk Conference is moving to a new fall timeframe. The next conference is already scheduled for this October 18 – 20, 2015 at the Lake Tahoe Resort Hotel. For registration and hotel information visit www.csda.net.

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

The State Controller’s Office (SCO) is an important state entity that special districts should follow closely. The SCO looks at special districts’ financial transactions, external audits, compensation data and more. CSDA is working closely with the SCO to ensure the accurate collection and representation of special district data. To ensure proposals advance efficiently without becoming costly or burdensome, CSDA is also analyzing all legislative proposals that impact special districts in this area. Special districts should take note of several new requirements and guidelines taking effect this year. Fiscal Housekeeping and Audit Guidelines for Districts Annually, special districts are required to submit to the SCO their Financial Transaction Reports (FTR) and compensation data. For the majority of special districts, this is a routine process that takes place with little notice. However, for some special districts and other local agencies, their financial data becomes subject to an SCO audit.

Internal Control Guidelines Now in Effect Effective January 1, the SCO adopted a set of Internal Control Guidelines that serve as best practices for local agencies’ fiscal housekeeping. The internal controls are not hard and fast rules but rather recommendations to ensure agency-based checks and balances for sound management. They are intended to safeguard assets and prevent and detect financial errors and fraud. They are the basis for the SCO to identify local agencies that may be at risk for financial mismanagement and reporting.

Internal Control Guidelines were established through Assembly Bill 1248 (Cooley; 2013). They are based on standards identified by the American Institute of Certified Public Accountants. Originally, AB 1248 sought to create mandatory standards but CSDA and other stakeholders demonstrated the diversity of local agencies and the complexity of their local revenues that make a one-size fits all approach unworkable. The California Society of Certified Public Accountants led the drafting of internal controls with input from CSDA, the League of California Cities and other local government associations that relayed direct feedback from fiscal officers and administrators who will be held to these standards. Comprised of five components that work together in an integrated framework, internal controls include: Control Environment, Risk Assessment, Control Activities, Information and Communication, and Monitoring Activities. This includes everything from staff training to cash handling protocols and purchasing guidelines. The completed internal control guidelines are available on the SCO’s website (www.sco.ca.gov) and CSDA’s Grassroots Action Center.

TAKE ACTION: • Download the Audit Checklist Parameters to understand how financial transaction reports are reviewed. • Visit bythenumbers.sco.ca.gov and publicpay.ca.gov to ensure your district’s data is accurately captured. • Does the compilation of your Financial Transaction Reports or annual compensation reports to the SCO cost your district more than $1,000? If so, please contact Kyle Packham at kylep@csda.net to learn about possible reimbursement for this mandated activity. • If your district does become subject to an SCO audit, review steps on how your districts can respond to, substantiate or refute claims about fiscal housekeeping practices.

Local agencies should be aware of the parameters the SCO uses to review reported financial data, the audit standards applied to local agencies that become subject to SCO review, and how this information is publicly shared.

Read an interview with State Controller Betty Yee on page 14.

Audit Checklist Parameters Under the State Constitution, the SCO is charged with auditing every reimbursement claim for payment of state and federal funds. As part of the Controller’s state constitutional responsibility, the SCO conducts field audits of local government agencies to identify unallowable uses of state and federal dollars for a variety of programs.

Have a Website? New Mandates Required Local agencies that maintain a website are charged with providing links to compensation reports reported to the SCO. As of January 1, local agencies must also post the reports on their website, if the local agency maintains one. Alternatively, districts may post a link to the Controller’s compensation database, publicpay.ca.gov, in a conspicuous place on their website.

In a December press release, then-Controller John Chiang announced three special districts failed to meet internal control standards following the SCO audit process. However, upon closer review, it was determined that certain control standards on the audit check-list simply did not apply to districts because of their operating budget or staff levels.

AB 2040 (Garcia, 2014) established this online posting requirement, but it also made another important change. It changed the requirement from being an administrative order of then-Controller John Chiang and instead placed the requirement in the state Government Code. This change may lead to reimbursement for costs associated with compliance. Local agencies incurring more than $1,000 annually to comply with the reporting and online posting of compensation data should contact Kyle Packham at kylep@csda.net for more information.

Districts should be familiar with the audit checklist in order to take steps for compliance and to also be fully aware of the internal controls which are inapplicable to their agency due to any number of circumstances, be it revenue sources, service type or other functions. This can help limit misunderstanding and misrepresentation of published audit results. New Data and New Mandates for 2015 Using the financial data reported to its office, the SCO displays local agencies’ financial information in its “By the Numbers” Government Financial Reports web portal www.bythenumbers.sco.ca.gov. Until recently this only contained city and county data, but special districts’ financial data took a big step forward with the latest updates to the SCO’s “By the Numbers.” The open data platform is a one-stop shop for information on local agencies’ revenues, expenditures, assets, liabilities and other financial information, such as pension liabilities.

“By the Numbers” falls under the SCO’s duties to collect and audit financial reports from special districts and other local agencies. The site was created to promote transparency in government. The portal is in addition to the government compensation data website publicpay.ca.gov, which provides salary information for state and local officials. CSDA is working with the SCO to ensure these publicly accessible databases help educate the public about local finances and do not provide data without the necessary context for public awareness and understanding.

California Special District – March-April 2015

Ask theExperts Is there a specific Government Code that limits the number of board members that can participate in committees? No, there is no express limit on the number of board members that can participate in a committee if the meeting is properly noticed. The Brown Act (Government Code §§ 5495054963) requires all meetings of a special district’s board of directors to be open and accessible to the public. This law also applies to board-created committees that have continuing jurisdiction over a particular subject or a meeting schedule established by the board. However, the law does not apply the same requirements to ad hoc advisory committees composed of less than a quorum of the board or a related committee as long as the ad hoc committees are assigned a limited subject and do not meet on a schedule set by a standing committee or the board.

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

For example, imagine an agency that has seven board members, one three-member finance committee, and one three-member community relations and marketing committee. If the board president wants to create a special committee to study one aspect of the budget for the next fiscal year, the president could form an ad hoc committee comprised of up to three members, but the ad hoc committee cannot include more than one member of the finance committee. This is because if two members of the finance committee – a.k.a. a quorum – meet to discuss agency finances, that would be an unnoticed meeting of their committee. On the other hand, if the board president wants to appoint

an ad hoc committee to work with a consultant to develop a new agency logo, the ad hoc committee can consist of three members of the board, any or all of which can be on the finance committee (because the logo isn’t within their subject matter jurisdiction), but no more than one of which can be on the community relations and marketing committee (because the logo would be within theirs). Also: If non-committee member board members want to attend a committee meeting, such that a quorum of the board would be together to discuss agency business, this is problematic unless precautions are taken in advance. To facilitate the additional members’ attendance, the agency must notice the meeting, in advance and on the agenda, as either (1) a “meeting of the committee/special meeting of the board” or (2) a “meeting of the committee/committee of the whole.” Then, at the meeting it will be determined whether the meeting is a committee meeting, a special board meeting (under (1)), or a committee of the whole (under (2)), depending on which body has a quorum in attendance. Note: a “committee of the whole” is a structure used for meetings of a quorum of the board, but at which the board cannot take final action on behalf of the agency. If a quorum of the board members want flexibility to attend a committee’s meetings on a regular basis, it is a good practice to establish the “committee of the whole” structure in the board’s rules or bylaws. Catherine Groves and Shayna van Hoften are attorneys with the firm Hanson Bridgett, LLP. Public agency law has been a principal specialty of Hanson Bridgett for more than 50 years. Hanson Bridgett represents more than 100 public agencies and in that capacity advises on the whole panoply of laws facilitating transparency and good government, such as the Brown Act, Public Records Act, conflict of interest laws, government ethics training requirements (A.B. 1234), applicable labor and employment laws (prevailing wage, apprenticeship requirements, and PEPRA), and others. For more information visit hansonbridgett.com. DISCLAIMER: This article does not constitute legal advice. Readers should consult with their own legal counsel for the most current

MOVERS & SHAKERS Einar Maisch was named as Placer County Water Agency general manager. He replaces David A. Brininger, who retired. Maisch has worked with the agency since 1985 and served as director of strategic affairs since 2000.

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!

Chemist Connie Sanchez, of Dublin San Ramon Services District, was honored as 2014 Lab Person of the Year by the San Francisco Bay Section of the California Water Environment Association, the leading training and certification organization in California for the wastewater industry. Nipomo Community Services District welcomes Russ Newman as chief plant operator for the district’s two wastewater treatment plants. Newman is a Grade III wastewater treatment operator – the level required by the state to operate the district’s recently upgraded Southland Wastewater Treatment and Reclamation Plant. Leadership California has selected Cucamonga Valley Water District and CSDA Board Member Kathleen J. Tiegs as a member of the Class of 2015 for its 2015 California Issues & Trends Program (CIT). This is a prestigious, yearlong program for 60 women leaders from across the state of California.

Prior to his retirement, Brininger received the 2014 Distinguished Service Award of the Regional Water Authority.

Mesa Water District Board Member Shawn Dewane was elected as the district’s board president. Ethan Shawn Dewane Ethan Temianka Temianka was elected as the district’s vice president. Both will serve terms through 2016. Donald D. Galleano was confirmed as Western Municipal Water District’s board president. Galleano has served on the district board since 2005.

Greater Vallejo Recreation District was awarded the Vallejo Chamber of Commerce “Agency of the Year” award for 2014. The district received the award for its commitment to creativity and innovation and demonstrated socially responsible business practices along with supporting and promoting the community.

California Special District – March-April 2015

Sacramento Municipal Utility District Board Member Bill Slaton was reappointed to the California Public Employees Retirement System Board of Administration, where he has served since 2012.

In Brief Fire District Updates Name

Website to Help Residents Assess the Air they Breathe

The district formerly known as Nevada County Consolidated Fire District changed its name recently, to Nevada County Fire District. The district was initially formed by a series of mergers of volunteer and paid fire agencies and since that time has grown and evolved. “We can’t focus on the past anymore,” says Fire Chief Jim Turner. “It’s a new year, a new era and a new image.” The district will be switching collateral to the new name gradually, starting with logos on doors and fire engines, then moving to letterhead and a new website. The new mission statement of the newly named district reads, “We will provide the highest level of service to our communities by valuing our members, promoting positive leadership and dedicating ourselves to excellence.”

San Joaquin Valley Air Pollution Control District is working on a website that will help residents get information about the quality of the air they are breathing. “We’re trying to put together something for valley residents that has never been tried or done by anyone else in the nation,” according to Executive Director Seyed Sadredin. The website, Web-Based Archived Air Quality System – or WAAQS – will initially allow residents to examine historical air quality information for their neighborhood. It will also allow users to compare different years and different areas. It will include statistics such as the number of days with good air quality, the number of days with poor air quality, and neighborhood air quality compared to trends for the county and the San Joaquin Valley. By the end of the year, the district plans to include a feature that will allow residents to access real-time data – with the click of button community members will learn the quality of the air they are breathing.

Sources: DanvilleSanRamon.com, El Dorado Hills Telegraph, Grass Valley Union, Orange County Register, Pacifica Tribune, Tehachapi News, The Bakersfield Californian

Toilet-to-Tap Water Program Expanding Currently, Orange County Water District’s (OCWD) Groundwater Replenishment System, which takes treated sewer water and makes it potable, pumps 70 million gallons a day. This amount will soon double thanks to a $143 million expansion. “In the middle of the drought, we’re able to bring on another source at a key time when we need it,” says OCWD Groundwater Replenishment System Program Manager Mehul Patel. Even without drought, California’s population is increasing and water demands continue to grow. The expansion will help Orange County rely less on water from Northern California and the Colorado River. Beginning this spring, OCWD will treat 100 million gallons per day, with that amount bumping up to 130 million potable gallons per day once the expansion is complete.

CSD Considers Purchase of Historical Site Bear Valley Community Services District is exploring the purchase of nearby land that is home to a number of historical artifacts once used by the Kawaiisu Indians. The land contains a number of grinding holes once used by the Kawaiisu. The Kawaiisu would use a rock pestle on a bedrock mortar to ground acorns and other plants for food. The grinding left deep holes in the rock. Two residents, Richard and Linda Turco, have proposed to the district that they donate money to the Bear Valley Springs Community Recreation Facilities Foundation, which would then disburse the funds to the district to purchase the land. In having the CSD as the land’s owners, the site would be preserved and residents would gain access to an existing trail. The CSD would also be able to add picnic tables, riding trails and other amenities to the property, while at the same time bringing recreational, historical and cultural value to the area. The Kawaiisu tribe supports the idea of the CSD owning the land as it would ensure preservation instead of development.

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.

Lab Receives New Certification

Two New Parks in El Dorado Hills The community of El Dorado Hills welcomed the opening of two new parks so far this year. The first, referred to as a “parklet,” consists of 6,000 square feet, with a picnic table, bench and mowed paths. “Parklets are small spaces serving as an extension of a walkway, or other feature, to provide amenities and green space,” according to El Dorado Community Services District Recreation Supervisor Mike Cottrell. The district also opened a new sports park in February, which provides access to play structures, picnic areas and sports fields.

Rain Barrel Rebate Offered The North Coast County Water District is offering residents a rebate for the purchase and installation of qualifying 50-gallon rain barrels. Rain barrels are used to collect rain from hard surfaces, like rooftops, in order to use later. They allow users to supplement their water supply with a sustainable source, while at the same time working to preserve local watersheds by detaining rainfall. The rebate is for $100 and, additionally, through a partnership with Rain Water Solutions, residents can purchase one model, the “Ivy,” for almost sixty dollars less than normal.

California Special District – March-April 2015

The lab at Dublin San Ramon Services District (DSRSD) has been state certified to conduct new water-contaminant tests in-house. With the new certification, the district can analyze samples from groundwater wells around the regional wastewater treatment facility. The ability to run these tests in-house is estimated to save DSRSD $3,000 annually. “The district has invested in ultra-sensitive analytical equipment in order to perform required monitoring as cost-effectively as possible,” says operations manager Dan Gallagher. “It takes considerable staff expertise to earn the state accreditation for the many tests we are required to do.” To become

“It takes considerable staff expertise to earn the state accreditation for the many tests we are required to do,” said operations manager Dan Gallagher. state certified, the lab had to develop standard operating procedures for collecting and analyzing samples and documenting results, pass performance evaluation studies for all applicable test parameters, and meet quality control requirements for accuracy and precision. The lab will need to be recertified every two years.

“We are here to add what we can to, not to get what we can from, life.” - Sir William Osler

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To learn how we can help your district, visit: www.lcwlegal.com

Minding the store Interview with State Controller Betty Yee State Controller Betty Yee has decades of experience in public finance. She previously served as Chief Deputy Director for Budget with the California Department of Finance, where she led the development of the governor’s budget, negotiations with the Legislature and key budget stakeholders, and fiscal analyses of legislation on behalf of the Administration. Prior to this, she served in senior staff positions for several fiscal and policy committees in both houses of the California State Legislature. The State Controller’s Office has increased its involvement with local government over the last few years and Controller Yee plans to continue in this vein. California Special District asked the Controller to give us her take on the governor’s state budget proposal, her priorities for the State Controller’s Office, and how technology will influence those priorities. As State Controller, what are some of your top priorities for the state?

State Controller Betty Yee

I fondly call the State Controller’s Office the place Californians expect to mind the store for the state. In light of that, my first top priorities in the early part of my administration will be to focus on the internal operations of the office and be sure we are able to carry out the core mission of the office with respect to fiscal oversight and fiscal reporting. I want to make sure we can accurately report our financial condition and that we’re providing thorough fiscal oversight of state and local entities. I also inherited an information technology project to modernize the state payroll system, which is, unfortunately, in litigation. That has pointed out that we need to pay attention to our technological needs, so I’ll be looking at not only how we can get our payroll back on track, but how we can integrate technology as a more efficient way of carrying out our operations.

See Controller Yee speak at CSDA’s upcoming Special Districts Legislative Days. Register at www.csda.net/sdld.

You have had a long history of public service on behalf of Californians. How have your previous positions prepared you for the SCO? I’ve been fortunate to have spent 30 years in this finance discipline – with a focus on state and local finance and tax policy. I’ve served as senior staff for several fiscal policy committees in the California Legislature, as chief deputy director of finance and budget for Governor Gray Davis, and for two terms on the State Board of Equalization. Understanding the state budget, fiscal oversight, tax policy, and the relationship between state and local governments – these are at the heart of what the State Controller’s Office does.

You have applauded Governor Brown’s budget proposal – what do you see as the biggest strengths of the proposed budget? Are there areas of the budget on which you would like to see an increased focus?

also very important, not only in looking at the changing demographics of our state, but certainly the unaddressed needs of the job market. Adult education has been ignored for a little bit and I really applaud Governor Brown’s focus on that. We have a stabilizing fiscal situation and, with that, I hope that the governor and Legislature will find opportunities to do more for families who are living in poverty and more to strengthen the middle class.

How has technology changed the way the SCO does business? What future changes do you hope to see? We have been able to use technology to provide the public with transparency and information. The public is now able to access information about the functions of government and local government funding. I’d like to use technology to facilitate more efficiencies in our operations. The State Controller’s Office is still a very paper-intensive operation, with payroll and all the different ways employees are paid – different benefit levels, different healthcare coverage, etc. We are trying to modernize that.

I do support the governor’s proposal and it’s pretty astounding that we are in a cash-rich position right now, especially when not too long ago we were facing a multi-billion dollar state budget shortfall. The trajectory that the governor’s budget has taken, particularly in paying down all forms of debt and in building infrastructure, is excellent. I commend the governor for his commitment to do that. California has also been a leader with respect to implementation of the federal Affordable Care Act. I think as we look at more Californians having health coverage, hopefully we’ll see benefits on the budget side with respect to savings in the long term. Governor Brown’s initiatives on adult education are California Special District – March-April 2015

We can look at technology to help provide greater transparency with respect to state finances. We can expect that technology will play a huge roll in terms of how we transform what we do in the whole oversight realm – everything from budgeting to accounting to procurement to cash management. Through partnerships and sponsorships within state government, we are building a system called FI$Cal, which will essentially be our state accounting system. I’m very excited about the prospects. The public sees headlines about failed IT projects, and what we never really see reported are the projects that work. We are going to be very deliberate in terms of taking all the steps necessary to make sure these projects are successful.

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State Controller Betty Yee [continued] Tell us about the By the Numbers site. How has the recent addition of special district data sets helped to further the goal or purpose of this web portal? By the Numbers was initiated by my predecessor and the ultimate goal is to have all local entity data on the site. The addition of special districts data has moved us toward this goal. Special districts are the most local form of government. Because of this, there will be strong interest in this data from up and down the state. That’s not to say we aren’t going to put state data on the site as well – that’s something we are working out through the FI$Cal program. Ultimately I hope the Controller’s Office can be a one-stop shop for anyone who has questions about California public finance.

We are also seeing a trend with open data. Do you think open data platforms will help improve understanding of local and state finances? I absolutely do. We are very data-rich in the Controller’s Office. And with fiscal oversight, we have to look at data from all different sources. If there is a way to present that data, whether it be through an open data portal/open data platform, or have the public access that data in a form that is usable and understandable, it could help Californians understand the choices that policymakers make, the services that governments provide, and their cost. One of the things I want to do in my capacity as Controller is to have the whole issue of finances be a comfortable subject matter for Californians. Everything from personal finances to enabling Californians to access financial literacy resources to continuing to be civically engaged and understanding how their government works.

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Sometimes the roles of different local agencies – special districts, counties and cities -- are misunderstood by the public. What do you think is the least understood function of the SCO? Oftentimes, the public confuses the Treasurer and the Controller. The Controller is the chief fiscal officer and the Treasurer is the chief investment officer. When I speak to people about the Controller, I explain that I mind the store for the state of California. The Controller’s Office monitors revenues that come into the state. We monitor disbursements – how the state pays its bills, making sure we have enough cash to do it on any given day. And we also have broad fiscal and financial oversight over state and local agencies to make sure our public dollars are not being misused or abused or subject to any kind of fraudulent activity. This is an oversight role, a fiscal watchdog role. For any local government, we hope to have a very cooperative relationship, because I think oversight is always good and it elevates the public’s confidence when they know that their dollars are being carefully watched.

How can special districts help provide better understanding of that role? As interaction becomes more robust between the Controller’s Office and special districts, there will be more of an understanding about what we do. I hope special districts will utilize our very robust and active audit function. I’m not referring to the idea of audits being a “gotcha” tool. But if there are things we can do to help provide information about best practices, or if districts want us to take an independent look at financial control issues, we can do that. As we continue to grow our relationship and as we display special districts data on our site, you’ll also have a better understanding of the tools that can be helpful to you.

In 2013, the Interagency Intercept Collections program (which helps local agencies recoup unpaid fines and fees) was expanded through Senate Bill 184 to include all special districts. Are there any other state or local programs that special districts should know about to help secure revenue through your office? Recently, the Legislative Analyst’s Office published a report about the State Controller’s unclaimed property program (Unclaimed Property: Rethinking the State’s Lost & Found Program). We are safeguarding about seven billion dollars in property that we are looking to return to rightful owners. I would encourage districts to check out our unclaimed property database at www.claimit.ca.gov to find out if there are any properties, monies, funds, or accounts that perhaps districts have lost track of.

What can special districts anticipate – if anything – to come from your office during your tenure? I’ve had a great relationship with special districts in my past positions and I would like to renew my relationship with all local governments, including special districts. I look forward to a collaborative working relationship. We’ll be working on some financial reporting guidelines together. I know there’s been a growing appetite to get special district financial data. You do report financial data to this office, and as we are engaged with cities and counties, we want to be sure to keep special districts updated about any changes to reporting requirements. I also look forward to having districts use the State Controller’s Office as a resource if there is any kind of need in regard to fiscal oversight. During my tenure, I’ll also be exploring a lot of new initiatives. One is providing a neutral sounding board for the various tax reform proposals that may be initiated by the California Legislature and other parties. Secondly, I’ll be looking at how we are going to keep our public pension funds sustained and not

California Special District – March-April 2015

be a continued burden for local governments. We have a huge unfunded liability in CalPERS. And the complexity of having multiple employers who participate in CalPERS is going to require some good communication with local governments. Thirdly, I’ll be looking at some environmental initiatives with respect to facilitating the green, clean technology sector in our economy. I think that’s something special districts, depending on their focus, could be very instrumental in. One particular area I’m looking is this drought situation in California and whether water districts on their own are looking at new technologies or providing tools to their customers that can facilitate conservation, reuse, and the like.

Seeking safe and accessible water for all through Proposition 1 STATE WATER RESOURCES CONTROL BOARD PREPARES FOR THE DISTRIBUTION OF FUNDING FOR WATER PROJECTS IN FISCAL YEAR 2015-16 By State Water Resources Control Board

Last year Californians recognized the importance of water in their daily lives as they approved Proposition 1 (Prop 1) by an overwhelming margin in the general election.

With 67.1 percent of the vote, Prop 1 became law, and with it $7.5 billion in funds -- including money for surface and groundwater storage, ecosystem and watershed protection and restoration, and drinking water protection -- became available. Now the task before the State Water Resources Control Board is to create guidelines to administer the monies for five separate programs. Those program areas include small community wastewater, water recycling, safe and reliable drinking water, stormwater, and groundwater sustainability. “The timely and wise passage of Proposition 1 gives us the opportunity to help communities become more resilient and use their precious water resources more wisely,” said State Water Board Chair Felicia Marcus. “These funds, for the first time, allow us to significantly help communities who don’t have access to safe and affordable drinking water, and to vastly accelerate many communities’ ability to recycle, clean up, and capture water to create greater water security in the face of climate change, population growth and drought.”

How the funds break down Each of the five categories gets a large sum. However, groundwater is receiving the lion’s share with $800 million available from the State Water Board’s Division of Financial Assistance (DFA), and another $100 million from the Department of Water Resources (DWR). DFA funding will assist in the prevention and cleanup of contaminated groundwater, while DWR funding will assist in the development of groundwater management plans under the recently passed Sustainable Groundwater Management Act.

Funds are allocated to the State Water Board in its other categories as follows: $260 million for safe and affordable drinking water projects aimed primarily at small and disadvantaged communities, $260 million for small and disadvantaged community wastewater projects, $200 million for multi-benefit stormwater projects, and $625 million for recycled water projects. The Department of Water Resources will also have $100 million for recycled water, which will be targeted toward desalination projects. These Prop 1 funds are directed at key elements of Gov. Jerry Brown’s Water Action Plan, which includes the suite of integrated water management tools, from conservation, recycling, stormwater capture, to desalination, groundwater cleanup, and safe drinking water, to flood protection, ecosystem protection, groundwater management and storage of all kinds to help communities and the state weather droughts, floods, and the expected impacts of climate change.

How will funds be distributed? The State Water Board plans to use some of its existing guidelines and funding criteria in the areas of drinking water, wastewater and recycled water when it comes to granting Prop 1 monies. Using systems already in place will expedite the process and allow the funds to be distributed as quickly as possible, while still ensuring a transparent process. For these three programs, the State Water Board plans to release the draft guidelines and criteria in the spring, with the goal of having them approved early this summer. When it comes to the processes for granting funds for stormwater and groundwater cleanup programs, DFA is working with stakeholders to develop the right criteria for these new funding programs. Because these processes will take time and effort to establish, Governor Brown’s budget offers additional staffing for these programs in fiscal year 2015-16, with the goal to allocate funding for projects in the 2016-17 fiscal year.

How does Prop 1 enhance existing funding? The primary focus is on expediency. With drinking water, wastewater, and recycled water projects, all these programs will use existing application processes, thus streamlining the time it takes to apply and approve the applications. Applicants will be able to apply at any time. And these programs will be paired with the State Water Board’s low-interest state revolving fund loans. “The Division of Financial Assistance is striving to simplify the application process and allow applicants to easily access multiple funding sources through a single application,” said DFA Deputy Director Darrin Polhemus. “Applicants should not have to figure out what sources of funding they qualify for; we are the experts on the different funding requirements and we will do that part for them.”

California Special District – March-April 2015

Because the application process has already been designed for these programs, and has many of the same processes as the Drinking Water and Clean Water state revolving funds, districts and communities can start the application process now, even before the guidelines are completely approved. Those interested in more information can log on to the State Water Board’s Division of Financial Assistance website at www.waterboards.ca.gov/water_issues/programs/grants_loans and apply using the online Financial Assistance Application Submittal Tool (FAAST) https://faast.waterboards.ca.gov/.

Transparency a key to a successful program The State Water Board, and any other state agency that will be distributing grants or loans under Prop 1, will adopt project solicitation and evaluation guidelines, through a process that requires at least three public meetings throughout the state. In addition, the draft solicitation and evaluation guidelines are required to be posted on the State Water Board website at least 30 days before the public meetings on the guidelines commence. The State Water Board plans to accept feedback on the guidelines for each program from stakeholders at the public meetings, or comments can also be provided in writing. Once feedback from the public is incorporated, the guidelines will be reviewed and considered for adoption by the State Water Board, providing another opportunity for public review and comment. For more information on the proposed schedule for adoption, and how to sign up for email lists for notices and updates, please visit the website referenced below.

Where does Prop 1 take us? The passage of Proposition 1 is a historic opportunity for the State Water Board and DFA to improve drinking and wastewater infrastructure, and in particular help out those living in smaller, disadvantaged communities. In particular, drought response continues to be a top priority, and the Prop 1 funds will assist in helping local agencies implement proactive steps. However, Prop 1 does not solve all of the state’s water issues. It must be noted that the overall investment needed for water infrastructure in California is immense. And the ability for some communities to afford the operation and maintenance of the facilities they have or need will continue as an issue that Prop 1 funding does not address. WANT TO KNOW MORE?

For those looking to get involved in the guidelines and funding criteria development, and for those who are seeking to apply for funding, the Division of Financial Assistance is ready to help. DFA also has email lists you can subscribe to, in order to stay up-to-date on the latest news. Visit the DFA’s Proposition 1 webpage here for more information: www.waterboards.ca.gov/ water_issues/programs/grants_loans/proposition1.shtml

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California Special District â&#x20AC;&#x201C; March-April 2015

[Solutions & Innovations]

Serve to be great: Leadership lessons from prison, a monastery, and a boardroom By Matt Tenney

to be a part of, that produces superior results, and that has a positive impact on society as a whole,” says Tenney, author of Serve to Be Great: Leadership Lessons from a Prison, a Monastery, and a Boardroom (Wiley, May 2014) and speaker at CSDA’s upcoming General Manager Leadership Summit. “When this happens, leaders win too, because they get promoted faster and create the conditions for sustainable, long-term success. Perhaps more important, they actually enjoy going to work each day, and the people on their teams do too.”

recent Gallup poll shows that only 30 percent of Americans are actively engaged at work. That likely doesn’t come as a big surprise. From dull, unfulfilling tasks to job-related stress to long hours to grueling commutes to unsatisfactory paychecks, there are many reasons why people might not enjoy their work. And, of course, there’s the number one reason of all: “I hate my boss!”

because they have “bosses from hell that make them miserable.” In turn, these employees “roam the halls spreading discontent.”

According to Gallup’s chairman and CEO, fully 20 percent of American employees are actively disengaged

“When the focus is on serving team members, leaders can create a team culture that people want

But managers can turn this depressing situation around and create the ultimate win-win. By developing both the aspiration and the ability to more effectively serve and care for the people on their teams, managers can become leaders people actually want to follow.

See Matt Tenney speak at the upcoming General Manager Leadership Summit, July 12-14 in Newport Beach!

Tenney’s extraordinary past provides him with a unique perspective on the power of serving and caring for team members. Years ago, he attempted to arrange the unauthorized delivery of government funds, which led to five and a half years in military prison. During his sentence, Tenney’s perspective shifted from selfish to servant, prompting him to live and train as a monk for three years, and finally, to become a social entrepreneur. Tenney has cofounded and led two non-profits, as well as a speaking and training company that donates all profits to charity and is devoted to helping leaders achieve greater longterm success while also making the world a better place.

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.

Here, Tenney shares three ideas to help leaders achieve higher levels of success by consistently serving and inspiring greatness in others.

Focus on your most important customer. Organizations

that deliver world-class customer service have a few things in common. First, they spend very little money acquiring new customers because they’re able to keep the ones they have and because those customers are constantly referring others. Second, they don’t have to compete on price because their customers are willing to pay more for the excellent service they receive. And perhaps most important, their external customers aren’t their number one priority. The members of their organization are. “The best way to ensure that your customers are consistently well cared for is to treat your team members with the same care you expect them to deliver to the customers,” Tenney explains. “By listening well and treating team members with kindness and respect, leaders develop team members who do the same for customers.

“The practice that made the biggest difference in my life is using the question, How will this help me to serve others? as a filter for decisions,” says Tenney. “Before I do something or consume something, I look at it from this perspective. This question helps me to waste less time pursuing things that don’t really matter, and has gradually made serving others the motivation for everything that I do.”

Inspire your team to greatness. One of the greatest gifts we

can offer team members is the gift of inspiration. In Serve to Be Great, Tenney cites Dr. Martin Luther King Jr. as an example of a leader who had an extraordinary ability to inspire others. He did so by connecting people to a purpose far greater than themselves and by carrying out his work with impeccable character. Continued on page 30

“The best way to ensure that your customers are consistently well cared for is to treat your team members with the same care you expect them to deliver to the customers.” “When leaders focus on developing happy, loyal team members, happy, loyal customers are a natural side effect. A very simple way to put this principle into practice is to frequently communicate with team members about what you as the leader can do to help them be happy both at work and at home. Make an effort to show that all ideas are heard and considered, and try to execute on as many feasible ideas as possible.”

Make serving others a habit. Hardwiring servant

leadership into your behavior is all about being mindful of seemingly small thoughts, decisions, and actions. For example, each time you’re about to interact with someone, ask yourself, How can I help this person? or, How can I contribute to this person’s happiness? You don’t need to have an immediate answer. Just adopting this attitude changes the dynamic of an interaction in positive ways. Start each day by taking at least five or 10 minutes to contemplate the question, What can I do to better serve the people on my team today?

California Special District – March-April 2015

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[Community Connections]

Scouting new methods for community outreach By Grace Cardenas, Public Information Specialist, Vallecitos Water District

Left: Girl Scout troop 4642 receives their fat trappers and grease pamphlets from VWD. Right: Girls speak to a resident in San Marcos about the district’s mandatory water use restrictions

The last time Girl Scouts knocked on doors in San Marcos, it had nothing to do with buying a sweet treat and everything to do with buying into a healthier environment. This was because the Vallecitos Water District (VWD) teamed up with local Girl Scout troops to educate residents about how to save water and prevent sewer spills. What started as a simple way for Girl Scouts to complete their Wonder of Water (WOW) Journey, a Girl Scout national leadership and advocacy project, has transformed into a comprehensive public education tool. So far, VWD has partnered with two different troops who have volunteered to go door-to-door to speak with the community. Partnering with the Girl Scouts was an easy decision. “The girls are already skilled at going door-to-door, engaging people and selling a product. All we needed to do was educate them, provide the materials, and give them speaking points,” said VWD General Manager Dennis O. Lamb.

To prepare for their outing, the Girl Scouts spent an afternoon at the VWD, learning from various water professionals who presented topics that included water conservation, water operations and wastewater collections. The girls were also given a tour of the district’s native plant garden to learn about sustainable gardening, outdoor landscaping techniques and water reuse. “Our girls left the district with the knowledge and motivation needed to complete their project. They were excited to share the drought awareness message with friends and neighbors,” said Kimberly Monaco, leader of Girl Scout Troop 1165. The first outreach team, a group of eight- and nine-yearolds from troop 4642, spent a weekend distributing free fat-trappers. The fat-trappers, small containers housing multiple disposal bags to store used cooking grease, have been vital in the agency’s battle against excess fats, oils and grease that enter the sewer system to form blockages. Over time, these blockages can cause sewer spills, which can pollute creeks, lakes, lagoons, beaches and bays. Although already free to the public, teaming up with the girls assisted VWD in placing an additional 45 fat-trappers in homes around San Marcos. “The Girl Scouts were a huge help and the project proved to be an

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.

effective outreach approach,” said Corey Harrell, VWD Source Control Technician. “The public is already familiar with Scouts arriving with cookies, so when they showed up at their doors with fat-trappers, people paid attention.” The second group of girls, made up of seven- and eight-year-olds from troop 1165, volunteered to pass out informational packets and speak to residents about water conservation as part of VWD’s drought outreach campaign. The girls asked customers to adhere to the district’s mandatory water-use restrictions. They also provided tips on how to save water and information on rebate programs for water-efficient devices.

Monaco said the girls were able to distribute 200 packets in one weekend, but perhaps more importantly, they were able to raise awareness. “Some people had no idea about the district’s restrictions or the seriousness of the drought.”

“Our girls left the district with the knowledge and motivation needed to complete their project. They were excited to share the drought awareness message with friends and neighbors,” said Kimberly Monaco, leader of Girl Scout Troop 1165.

After their community service, each girl was recognized publicly by the VWD Board of Directors. They also received a special VWD logo patch for their uniform, which represents their commitment to conservation and their ability to act as ambassadors on behalf of the district. VWD plans to continue their partnership with the Girl Scouts. In fact, they intend to deploy their new ambassadors later this year, if water supply allocations are imposed.

Armed with informational packets about the drought and water conservation, girls from troop 1165 prepare to promote drought awareness.

California Special District – March-April 2015

Girl Scouts visit the district’s native plant garden to learn about sustainability, water conservation and water reuse.

Girl Scout troop members, their leader Lale Laubach, and VWD Board Member Hal Martin, pose for a picture during a VWD Board Meeting.

Legal Brief CLOSED SESSION FINAL DECISION AND VOTE DETAILS MUST BE PUBLICLY REPORTED AT THE SAME PUBLIC MEETING By Gary Schons and Victoria Hester, Best Best & Krieger

to failing to report the vote, college officials also failed to make the severance package available when reporters began requesting it. If a judge rules against the college, the severance package could be voided and the board would have to take a legal vote on the issue, which could include a public hearing.

Pasadena City College is facing criticism — and a lawsuit — for its perceived lack of transparency regarding its Board of Trustees’ vote to approve a $400,000 severance package for controversial former school President Mark Rocha. The lawsuit, filed September 25, 2014 by Sacramento-based watchdog group Californians Aware, claims the board took the action in closed session to avoid a public hearing. The board cited “anticipated litigation” as the reason for the closed session. But, according to the lawsuit, the severance package was part of Rocha’s existing contract and was not a result of any litigation or litigation threat. The board unanimously approved the severance package during a closed session on August 6, but failed to announce the decision during the open session of the same meeting, as required under California’s Brown Act, which regulates meetings of governing bodies. The Brown Act generally requires that all votes taking final action on a matter in closed session be publicly reported orally or in writing at the public meeting. In addition, copies of any contracts or settlement agreements finally approved (not those awaiting approval of the other party) must be made available promptly. In addition

On a similar note, the Chico City Council came under fire in January for alleged ongoing Brown Act violations, including failure to release the details of a July 2014 closed session vote not to recruit for city manager, thereby immediately promoting Assistant City Manager Mark Orme to the position. The Brown Act requires that a final decision, made after any administrative remedies have been exhausted, to employ, dismiss, accept resignation or otherwise affect the employment status of a public employee, must be disclosed in the public meeting, along with the votes of every member that was present. The City’s refusal to release the roll call votes from the closed session meeting is part of a pattern of Brown Act violations, according to Jessica Allen, who sent the City Council a cease-anddesist letter regarding its meeting practices and filed a lawsuit on October 24. It is important for special districts to remember that, although closed session can provide valuable confidentiality for sensitive discussions, this confidentiality is not absolute. The Brown Act is clear that only certain matters may be discussed in closed session — including pending litigation, employment decisions and real estate negotiations — and these matters must be listed on the agenda, as well as announced publicly prior to the closed session. Once the board of directors enters closed session, the discussion is limited to the applicable subjects disclosed

When reporting is required, the board can make the report orally or in writing. Many local agencies choose to make the report orally and have it recorded in the minutes of the meeting.

on the agenda. In certain circumstances, if the board takes a final action during the closed session, that action, along with the vote or abstention of each member present, must be reported to the public. The reporting requirement generally applies only to final actions taken by the legislative body. For example, a final decision to adopt a settlement agreement must be reported at the public meeting during which the closed session is held. If, on the other hand, final approval of an action rests with another party, no report needs to be made until that other party has approved the action and a member of the public requests the report. When reporting is required, the board can make the report orally or in writing. Many local agencies choose to make the report orally and have it recorded in the minutes of the meeting. Another option — perhaps appropriate in higher profile cases — is to issue a small press release on the matter. No matter how the report is made, the board must reconvene in open session to make the report.

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In addition to “reporting out,” the board must provide, by the next business day, copies of contracts, settlement agreements or other documents that were finally approved to any member of the public who makes a written request. Only finally approved documents are included; contracts, offers, or other documents awaiting approval do not need to be released. This reporting requirement is independent of the Public Records Act. Although special districts may want to shield certain matters from public hearing or public comment by adjourning to closed session, it is important to remember that only certain issues can be discussed in closed session, and even when closed session action is appropriate, final actions and detailed voting records must be disclosed to the public. Gary W. Schons and Victoria D. Hester are in the Public Policy and Ethics Compliance practice group of Best Best & Krieger LLP’s San Diego office. The group counsels public agencies, officials and others who wish to promote public confidence in their decision-making processes by assuring that official conduct is above reproach. They can be reached at Gary.Schons@bbklaw.com or Victoria.Hester@bbklaw.com.

LEADERSHIP

A glimpse: So You Want to Be a General Manager? workshop 1. Never compete with the board for public recognition — “We get paid—Let them have the limelight.” 2. You need to be able to do the small stuff well for them to trust you on the big stuff — “Pay attention and remember what is important to board members.” 3. Always have time for board members; make them a priority — “If they don’t feel valued, that is a big problem.”

The Special District Leadership Foundation (SDLF) is pleased to be a sponsor of two So You Want to Be a General Manager? workshops this year. This article, reprinted with permission of the author is a glimpse of the helpful topics covered as part of this practical career development workshop. Establishing Effective Working Relationships with the Board of Directors: THE TOP TEN

Adopted from an article by Kevin C. Duggan West Coast Regional Director, ICMA, and former City Manager, Mountain View

4. Implement board direction faithfully— “Even if you think it is a dumb decision, it doesn’t matter.” 5. Always maintain your professionalism — “If you ever make it personal, watch out!” 6. Be realistic regarding the separation between “management” versus policy — “I want to play in your yard, but don’t get close to mine.” 7. Help board members become better policy-makers — “Help them do what they are there to do.” 8. Present facts and information fairly and without a spin — “Never, never go over the line regarding influencing a policy decision.” 9. Be realistic regarding the type and number of issues you tackle — “You can’t take on all of the issues all of the time.” 10. Have a clear communication and agreement regarding your role and the board’s expectations — “You can’t perform up to their expectations if you don’t know what they are.” For more information regarding SDLF and our Special District Administrator Program for management staff of special districts visit www.sdlf.org. Space is extremely limited for the So You Want to Be a General Manager? workshops, July 12 in Newport Beach and September 21 in Monterey. Visit www.csda.net to register.

CSDA Appointees

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

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

David Aranda, SDA Sandy Raffelson, Herlong Public Utility District Jean Bracy, SDA, Mojave Desert Air Quality Management District

Public Member Appointees

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

Staff

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

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 – March-April 2015

Solutions and innovations [continued from page 23] “An important role of a leader is to clarify not only what the team does for the customer, but what the team does to make the world a better place,” Tenney explains. “The leader must also ensure that each team member can see clearly how his or her work contributes to that larger vision and find ways to frequently remind team members of their purpose. “You can also inspire greatness in others by working to develop your character so that you consistently do the right thing, even when the personal costs are

very high,” he continues. “At some level, we all aspire to be a person who puts others first and always does the right thing. When we see someone else living in that way, it touches something deep inside us. We are reminded of who we can be. We are inspired.” “Being successful as a leader and living a meaningful, enjoyable life are not mutually exclusive,” concludes Tenney. “In fact, the two actually fuel each other. The very things that make life truly rich are the same things that create and sustain long-term success in both business and in life. “The best news is that it’s all highly trainable,” he adds. “Any one of us can become an extraordinary, highly effective leader who enjoys going to work each day because we know that we’re making our world a better place.”

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California Special District – March-April 2015

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anaging Risk

Prevailing wage issues for public agencies 2. What are the threshold requirements for a public works project? Prevailing wages must be paid to all workers employed on a public works project when the public works project is over $1,000.

SDRMA has received questions regarding prevailing wages and when are they required. We have developed this FAQ guide for our readers: Some frequently asked questions: 1. What is Prevailing Wage? The prevailing wage rate is the basic hourly rate paid on public works projects to a majority of workers engaged in a particular craft, classification or type of work within the locality and in the nearest labor market area (if a majority of such workers are paid at a single rate). If there is no single rate paid to a majority, then the single or modal rate being paid to the greater number of workers is prevailing.

3. How does the prevailing wage affect my agency? Californiaâ&#x20AC;&#x2122;s prevailing wage laws ensure that the ability to get a public works contract is not based on paying lower wage rates than a competitor. All bidders are required to use the same wage rates when bidding on a public works project. California law requires that not less than the general prevailing rate of per diem wages be paid to all workers employed on a public works project. 4. What is a Public Works Project? Public works refers to construction, alteration, demolition, installation, or repair work (including maintenance) done under contract and paid by public funds. Public works projects do not include those done by a public agency with its own employees. With minor exceptions, all workers employed on public works projects must be paid the prevailing wage determined by the Director of the Department of Industrial Relations according to the type of work and location.

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5. How can I identify a qualified Contractor? Beginning July 1, 2014, contractors must register and meet requirements using the online application before bidding on public works contracts in California. The application also provides agencies that administer public works programs with a searchable database of qualified contractors. The agency awarding the contract for a public works project must notify DIR within five days by completing the PWC100 form online. This requirement now applies to all public works projects that are subject to the prevailing wage requirements of the Labor Code, regardless of size or funding source. 6. What does Labor Code Â§1771 state regarding holiday and overtime hours? Except for public works projects of one thousand dollars ($1,000) or less, not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work fixed as provided in this chapter, shall be paid to all workers employed on public works. This section is applicable only to work performed under contract, and is not applicable to work carried out by a public agency with its own forces. This section is applicable to contracts let for maintenance work.

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

7. What is SB 864? SB 854 made several changes to the laws governing how the Department of Industrial Relations (DIR) monitors compliance with prevailing wage requirements on public works projects. Some of these changes modify the responsibilities of awarding bodies, including by eliminating the obligation to pay DIR for compliance monitoring on state bondfunded projects.

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.

8. As a public agency, what if we have a small job that is $250? What if we have a series of jobs that total over $1,000 using the same contractor/vendor? Public agencies must be careful that they do not split the jobs up to avoid the $1,000 threshold. If the project is under $1,000, the project is not subject to public works; however, if the awarding agency knows that in a given fiscal year that projects are being awarded to the same vendor and the total project costs exceed $1,000, the project should be treated as a public works and the contractor/vendor must be registered.

District Snapshots Murphys Cemetery District Last year, Buena Vista Cemetery in the Murphys Cemetery District was honored by the Native Sons and Native Daughters of the Golden West (NSGW and NDGW) by both groups coming together to dedicate the cemetery and to install a large plaque at the entry to Buena Vista Cemetery. The NSGW approached the cemetery board and told them that they, and the NDGW, felt that the cemetery holds the remains of most of the pioneers of the community and they believed it was worth acknowledging.

California Special District â&#x20AC;&#x201C; March-April 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 Heather Thomson, CPA, Finance Manager Wendy Tucker, Senior Member Services Specialist Danny Pena, Senior Claims Examiner Alana Batzianis, HR/Health Benefits Specialist II Jennifer Ng, Claims Examiner I Shawn Vang, Accountant Rajnish Raj, Accounting Technician Rachel Saldana, Administrative Assistant

This is meant to be an example of possible questions you may face and is not intended to be legal advice. Consult with your District counsel for specific legal advice. Also you can visit the Department of Industrial Relations website, www.dir.ca.gov for additional information on Prevailing Wage questions. For further information or to answer your questions, please contact SDRMA Chief Risk Officer Dennis Timoney at dtimoney@sdrma.org, or call 800.537.7790.

Money Matters Reading CalPERS annual actuarial valuation reports Employer Contributions The cover page of the reports shows the Employer Contribution Rate for the FY 2015-16. It also shows a projection of what CalPERS expects the rate to be for FY 2016-17. Here is a sample of what appears on the cover page of a non-pooled plan report. Fritzie Archuleta, ASA, MAAA Senior Pension Actuary, CalPERS

Julian Robinson, FSA, EA, MAAA Senior Pension Actuary, CalPERS

Every year CalPERS produces Annual Valuation Reports for all the retirement plans we administer. These reports contain important information about the plans and help answer many questions including: - What is the financial condition of the plan? How well funded is the plan? - How much will the agency be contributing next fiscal year? What are the major components of the contribution? - What are the projected contributions for the next five years? - What is the unfunded liability and how long will it take to pay off? Can the unfunded liability be paid off more quickly?

CalPERS Plans Structure CalPERS public agency plans are divided into two groups: non-pooled and pooled. Non-pooled plans are the larger plans that have more than 100 active members. Pooled plans are smaller plans with less than 100 active members. Even though they contain similar information, the actuarial reports for non-pooled plans are different from the actuarial reports for pooled plans. CalPERS categorizes the plans into Miscellaneous and Safety Plans, depending on the classification of employees covered by the plans. CSDA F C

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Fiscal Year

Employer Contribution Rate

2015-16

19.777%

2016-17

21.5% (projected)

Here is sample of what appears on the cover page of a pooled plan report: Fiscal Year

Employer Normal Cost Rate

Employer + Payment of Unfunded Liability

2015-16

10.295%

$ 12,229

2016-17 (projected)

10.7%

$ 15,081

These rates do not reflect any cost sharing arrangement an agency may have with their employees. A significant change for pooled plans was made to the Employer Contributions starting in FY 2015-16. The Employer Contributions are no longer shown as a single rate. As of FY 2015-16 the Employer Contribution is comprised of two elements: - Employer Normal Cost Rate (% of payroll) - Employer Payment of Unfunded Liability (flat dollar amount) Major changes were made to the pooling structure at CalPERS due to PEPRA. The multiple Safety, Miscellaneous, PEPRA and Inactive pools were merged into two pools: a Safety Pool and a Miscellaneous Pool. Expressing the Employer Contribution as the sum of a normal percentage and a set dollar amount for the unfunded liability was necessary in order to maintain equity across the pooled plans.

Officers

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

CSDA F C

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

Members of the Board

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

CSDAFC Staff

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

Plan’s Funded Status The overall financial health of a pension plan is measured by the Plan’s Funded Status. Page six of the non-pooled plan actuarial report and page nine of the pooled plan reports show the funded status. June 30, 2012

June 30, 2013

1. Present Value of Projected Benefits

$ 246,795,797

$ 253,480,870

2. Entry Age Normal Accrued Liability

219,802,218

228,267,503

3. Market Value of Assets (MVA)

162,218,306

178,118,108

4. Unfunded Liability [(2) – (3)]

5. Funded Ratio [(3) / (2)]

57,583,912 73.8%

50,149,395 78.0%

The Present Value of Projected Benefits represents the value as June 30, 2013 of all benefits to be paid out of the plan to all members who have a vested interest in the plan. This number includes benefits expected to be earned in the future by current active members as well as benefits left on deposit by terminated and transferred members, and pensioners and other beneficiaries who are currently receiving benefits. The Entry Age Normal Accrued Liability represents the part of Present Value of Projected Benefits which has been accrued to the valuation date. In other words, this represents the liability in respect of service earned up to the valuation date (and excludes future service to be earned by active members). There are a number of different actuarial methods that can be used to allocate the Present Value of Projected Benefits into past and future components. CalPERS plans use the Entry Age Normal method to fund their pension plans. (In fact, GASB 67 and GASB 68 require the use of the Entry Age Normal method for accounting purposes.) The Funded Ratio (also called Funded Status) compares the plan’s Entry Age Normal Accrued Liability with the plan’s Market Value of Assets. In the example above the funded status is 78.0% as of June 30, 2013. The Funded Status target actuaries aim for is 100 percent. When the Funded Status reaches 100 percent or greater, a plan is fully funded and has assets equal to or greater than its liabilities. When a plan is fully funded, the only contribution required is the plan’s normal cost, which represents the value of new benefits accruing in the current year for active members. Continued on page 36

California Special District – March-April 2015

Recently closed financings Does your district need funding for an important project/ equipment purchase or want to take advantage of record low rates and refinance existing debt? The CSDA Finance Corporation understands the unique needs of special districts and has an experienced team of consultants that can help in guiding you through the funding process at the best possible rate and terms for your district. Last year, the CSDA Finance Corporation financed over $33 million in projects and equipment purchases for special districts. Additionally, since we started our work with districts of all types and sizes 27 years ago, we have facilitated nearly $1 billion in funding. Give the CSDA Finance Corporation an opportunity to quote on any of your funding needs. 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 For more information or a no-obligation quote, contact CSDA Finance Corporation at 877.924.2732 or visit www.csdafinance.net.

Money matters [continued from page 35] Unfunded Accrued Liability and Gains/Loss Analysis When a plan is not fully funded, such as the plan in the example above, an additional amount needs to be contributed to amortize the unfunded liability. The Unfunded Liability (also called Unfunded Accrued Liability or UAL) as of June 30, 2013 in the example above is $50,149,395. When determining a planâ&#x20AC;&#x2122;s Accrued Liability, the actuary makes a number of demographic and economic assumptions regarding the future experience of the planâ&#x20AC;&#x2122;s membership. Mortality assumptions are used to project how long plan members are expected to live. Turnover, disability, and retirement assumptions are used to project when members leave active working status. Salary and merit assumptions are used to project salary growth. Currently we expect the assets managed by CalPERS to earn 7.5 percent per year. An UAL emerges when the actual experience of the plans diverges from the demographic and economic assumptions. Each year a valuation is performed. The divergences generate gains and losses each year. In order to maintain relatively stable contribution rates from year to year, gains and losses are amortized over future years. The amortization period is determined based on the type of gain or loss. Page 19 of the non-pooled report shows the components of the UAL in our example.

One of the main reasons for contribution rates changing from year to year is the amortization of new gains and losses which emerge each year. Page 18 of the non-pooled report shows this analysis. Pooled reports do not individually show a Gain/Loss Analysis. Pooling is an insurance risk-spreading arrangement where the gains and losses for all the participating plans in the pool are shared across all plans in the pool. Section 2 of the pooled plan report contains the Gain/Loss Analysis for the pool. The last page of each pooled plan report shows how to access Section 2. Section 2 may be found on the CalPERS website (www.calpers.ca.gov) then selecting: - Employers - Actuarial & GASB 27 Information - Risk Pooling - Risk Pool Annual Valuation Report Continued on page 42

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[What’s so special]

Comedy under the stars

Cosumnes Community Services District The importance of laughter is well-documented. “A day without laughter is a day wasted,” said Charlie Chaplin. “Laughter is an instant vacation,” according to Milton Berle. Cosumnes Community Services District (CCSD) holds an event every summer that encourages its community to get together and laugh. Its Comedy Under the Stars event has grown very popular over the years, gathering hundreds of residents to watch professional comedians while enjoying picnic dinners and the evening air. California Special District asked CCSD to describe the Comedy Under the Stars event and explain what it takes to organize the successful affair.

What is the Comedy Under the Stars event? Comedy Under the Stars is a series of comedy shows taking place throughout the summer at the Laguna Town Hall outdoor amphitheater. The CSD has partnered with Sacramento’s Laughs Unlimited to bring the three summer shows to Elk Grove. Laughs Unlimited schedules three comedians for each show; an emcee and a feature and headliner comedian. The show starts at 8:00 p.m. with seating available at 6:00 p.m. Tickets are $10 in advance or $12 at the door. Guests are encouraged to bring a picnic dinner and blanket (no high back chairs). The shows are suitable for adults only.

What inspired the district to turn to comedy for a public event? Heather Shortino Recreation Coordinator

Brad Sherwood

One of the things that inspired the CSD to first host a series of comedy shows in 1994 was that, at the time, a similar event was held at a Sacramento golf course. The free event became too popular and it soon outgrew the golf course venue. At that time, the CSD did so many things for families and we thought it might be fun to do something for just the adults. Because there were a lot of families living in Elk Grove at the time, the

Cosumnes Community Services District Established: 1985 Size: 157 square miles Population: 194,000

Parks and Recreation Department believed the addition of comedy shows would round out the list of activities offered to children and adults in the community. With this idea in mind, staff contacted Laughs Unlimited and the rest, as they say, is history. Laughs Unlimited and the Cosumnes CSD Parks and Recreation Department have been partners for over 20 years.

Budget: $57 million Location: Elk Grove and Galt, California Website: www.yourcsd.com

enjoyable evening where they can create lasting memories with friends and family. These shows are just one of the many ways the Parks and Recreation Department is “Making Lives Better” in Elk Grove.

What advice do you have for other districts who may want to throw a similar event for their communities? • A partnership with Sacramento’s Laughs

Has the event been successful? The shows have been very successful. Each show’s attendance ranges from 450 -700 depending on the date of the show and weather. Customers have been very happy with the event and are excited to have the opportunity to attend a local comedy show. Many of the people who come out to enjoy the show come out with large groups of friends and family and look forward to these nights all year long! The comedy shows are truly an event that brings the community together.

Explain how comedy under the stars helps the district fulfill its mission to the public. The mission of the Cosumnes Community Services District is to enhance the quality of life for those residing in, doing business in and visiting the community. The Parks and Recreation Department’s mission is to “Make Lives Better.” The Comedy Under the Stars shows fulfill our mission by providing an opportunity to bring members of our community together for an

California Special District – March-April 2015

Unlimited or a similar business is vital; since they have the relationships to book the comedians. • It’s a great revenue producer with minimal planning. • We would recommend at least a nominal charge for the event and recommend a preregistration discount to encourage people to register prior to the event. This will help ensure you have an idea of how many people you will need to accommodate. • If you decide to start an event like this, give it time to catch on. You may have a couple of shows that don’t cover the direct costs, but after a couple of shows, your attendance is likely to increase as word gets out. • An idea that we have used in the past to attract more people is to offer a Groupon for discounted tickets. This or any other social media marketing would be a great idea for someone trying to start up a new event.

What are some other innovative ways Cosumnes CSD engages with the community? The Cosumnes Community Services District hosts numerous programs and special events throughout the year that bring the community together. While executing these programs and events, we consistently strive to provide excellent customer service. We encourage our customers to share their experiences on the “How Are We Doing?” customer service hotline because with their input, we can enhance the quality of our programs and facilities. We also have a live 24hour Park Maintenance Hotline that allows park users to report a park maintenance need at any time of the day, seven days a week. We also open up a dialogue with customers on our social media pages and hold park design workshops for community members to get involved in the planning of their neighborhood parks. We are able to take creative risks with park planning and recreational programming when we engage the community and earn their support.

What goes in to planning the event? Planning • Creating a partnership and an annual agreement with Sacramento’s Laughs Unlimited to book comedians • Securing sponsors • Booking security • Marketing the event

Unique challenges • Since the show is recommended for adult audiences, we do have to reiterate this information to guests. It is up to them but we discourage bringing any minors in. • With some of the language not suitable for everyone; we need to make sure volume is low enough so neighbors are not affected. The show is put on in an outdoor amphitheater and in close proximity to an apartment complex and we want to make sure we are being good neighbors!

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Money matters [continued from page 36] Required Employer Contribution

For pooled plans the Projected Employer Contributions appear on page 18

It is now easy to understand why the Required Employer Contribution is comprised of two components: 1) Employer Normal Cost 2) Amortization of the UAL Details of the Required Employer Contribution appear on page six of non-pooled plan reports.

NEW RATE

PROJECTED FUTURE EMPLOYER CONTRIBUTION RATES

2015-16

2016-17

2017-18

2018-19

2019-20

Normal Cost %

10.295% 10.7%

10.7%

UAL $

$ 12,229

$ 18,092

$ 20,754

$ 24,091

$ 15,081

These projections reflect all the information available as of the date we released the reports. Therefore, the projections take into account the 18 percent investment return in the FY 2013-14 and assume 7.5% subsequently. These projections also include the new actuarial assumptions which become effective as of June 30, 2014, and new smoothing and amortization policies.

Summary CalPERS Annual Valuation Reports contain a lot of valuable and useful information. In this brief article we have presented the highlights. Details appear on page seven of pooled plan reports:

Five Year Projections & Budgeting In many situations, pension contributions represent a significant component of a public agencyâ&#x20AC;&#x2122;s budget. The reports contain useful budgeting information. The reports show a five-year projection of Employer Contribution Rates. For non-pooled plans the Projected Employer Contributions on appears on page 26. NEW RATE

2015-16

PROJECTED FUTURE EMPLOYER CONTRIBUTION RATES

2016-17

Contribution Rates 19.777% 21.5%

2017-18

2018-19

2019-20

2020-21

23.0%

24.5%

25.9%

25.7%

In a January 2015 webinar, Fritzie Archuleta and Julian Robinson presented a detailed discussion on how to read your actuarial valuation reports. To access the webinar please refer to the information below: The link to the webinar is https://csda.webex.com/csda/ lsr.php?RCID=1b4561b0c429d314b971c6c40b5dc20b. The webinar begins at the 10:30 mark. You are encouraged to listen to the webinar to learn more about the valuable information contained in the report.

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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