California Special District by California Special Districts Association

CA SPECIAL

DISTRICT Publication of the California Special Districts Association

Interview with State Auditor Elaine Howle

Volume 10, Issue 5, Sept - Oct 2015

FEATURE Cryptolocker 3.0: The Town of Discovery Bay CSDâ&#x20AC;&#x2122;s experience

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Volume 10, Issue 5 • September - October 2015

Contents

Auditing in the course of checks and balances Interview with State Auditor Elaine Howle

Cryptolocker 3.0: The Town of Discovery Bay CSD’s experience

4 CEO’s Message New value added program for members – CSDA’s Consultant ConnectionTM 5 Professional Development There’s even more to like at the fall 2015 CSDA’s Board Secretary/Clerk Conference; Calendar 6 CSDA News CSDA launches new service: On-demand webinars; Record number of general managers recognize the value of CSDA’s GM Leadership Summit; 2015 Annual Conference and Exhibitor Showcase sponsors California Special District – September-October 2015

The five things your website should do for you

Tips to encourage broader public involvement in your community

Solutions & Innovations

Community Connections

8 Grassroots Action Update 2015 Legislative recap: Defeated, amended and signed legislation

28 SDLF Developing leadership skills when you have no formal authority

12 In Brief Liberty district offers “Summer Challenge” to teens; District explores water saving equipment; Food scrap progam continues to grow in Marin; New website for Imperial Irrigation District; Fire services restored thanks to new revenue; Healthier cafeteria; Video recording in meetings

32 Managing Risk Managing volunteer exposure risks to your agency

26 Legal Brief California’s new paid sick leave law in effect

34 Money Matters Expect to pay more $ to operate diesel trucks 38 What’s So Special Going batty Nevada County RCD Printed on recycled paper.

CA SPECIAL

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

Members of the Board Joel Bauer, West Side Cemetery District Stanley Caldwell, Mt. View Sanitary District Elaine Freeman, Rancho Simi Recreation & Park District Peter Kampa, Saddle Creek Community Services District Jo MacKenzie, Vista Irrigation District Shane McAffee, Greater Vallejo Recreation 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

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 Rick Wood, Finance & Administration Director Emily Cha, Staff Assistant Nick Clair, Legislative Analyst Bernice Creager, Public Affairs Specialist Sharon Foster, Professional Development Assistant Dillon Gibbons, Legislative Representative 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 Dane Wadlé, Public Affairs Field Coordinator James Wilfong, Senior Designer Nicole Zajic, Editor 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.

CEO’s message

New value-added program for members – CSDA’s Consultant ConnectionTM

CSDA

is always looking at ways we can add value to membership and we understand it’s a critical component in what we do! Something we’ve been working on for a while now is a new program that connects participating Business Affiliate members with district members – this new program is called Consultant ConnectionTM. Consultant ConnectionTM brings exclusive benefits and discounts offered by Business Affiliates to CSDA district members as part of the growing list of CSDA membership benefits. When your agency needs the expertise of a consultant in the areas of strategic planning, organizational assessment, board facilitation, outreach or board development, do you know where to turn? How about with public works contracting? These are just a few areas covered by the companies that have elected to be part of this new value-added program. I would personally like to thank the following CSDA Business Affiliate members, which were willing to be part of the initial phases of this program and extend exclusive benefits and discounts to our district members:

1112 I Street, Suite 200 Sacramento, CA 95814 t: 916.442.7887 f: 916.442.7889 toll-free: 877.924.2732 www.csda.net A proud California Special Districts Alliance partner

Neil McCormick

Consultant ConnectionTM brings exclusive benefits and discounts offered by Business Affiliates to CSDA district members as part of the growing list of CSDA membership benefits.

• Barber & Gonzales Consulting Group

• BHI Management Consulting • Contractor Compliance & Monitoring, Inc.

• Kampa Community Solutions • Nichols Consulting • Rauch Communications Give them an opportunity to earn your business! Find out more about CSDA’s Consultant ConnectionTM Program and how your district could benefit from new exclusive offerings by these companies at www.csda.net/consultant-connection!

Highlight

BOARD SECRETARY/CLERK

October October 2

WEBINAR

The Power of Alliance

October 18-20

CONFERENCE

Board Secretary/Clerk Conference and Certificate Program, South Lake Tahoe

November There’s Even More to Like at the Fall 2015 Board Secretary/Clerk Conference Attendees at the 2015 CSDA Board Secretary/Clerk Conference this fall in Lake Tahoe will find even more to like about this popular event. You will like more new sessions for returning attendees and longer session times for even better understanding of complex subjects like human resources, finance management, and policy and procedure writing. These new expanded sessions cover some of the most popular topics among attendees, while offering the opportunity to develop a deeper understanding of session content. All attendees will also benefit from our opening keynote session, “Communicating with Diplomacy and Tact,” with Mel Turner and sponsored by CPS HR Consulting. Turner has served as the Mayor of Citrus Heights and is currently a council member. His prior community service included appointment to the Citrus Heights Planning Commission and the Sacramento County Sheriff’s Community Outreach Advisory Board (SOCAB). He is also a founding board member of the Citrus Heights Police Department’s Police Activities League (PAL). The keynote will focus on enhancing your ability to tactfully navigate difficult situations and communications while building consensus with public officials, stakeholders, and your customers to create powerful and lasting results for your organization. Registration is available now at www.csda.net. This conference is being held at the Lake Tahoe Resort Hotel, and room rates start at just $110 single occupancy by calling 530-544-5400 and using the group code CSDA. The room reservation cut-off is Friday, September 18, 2015, however space is limited and attendees are encouraged to make their reservations early. California Special District – September-October 2015

November 10

WEBINAR

Best Practices - Managing Special District Investments

November 17

WEBINAR

Required Sexual Harassment Prevention Training for Special Districts

November 18

WEBINAR

Required Ethics Compliance Training - AB 1234

Bythe

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2,509 total participants in CSDA Professional Development as of July 31, 2015.

CSDA NEWS CSDA Launches New Service: On-Demand Webinars At CSDA we know how busy you are, so we’ve made many of CSDA’s most popular webinars available “On-Demand.” This new service allows you to watch the webinars at a time that is the most convenient for you. Many of CSDA’s most popular webinar titles, including some free webinars, will now be offered on-demand through the CSDA website. Visit the Professional Development section of www.csda.net and click on On-Demand Webinars for a complete list of offerings, including required courses like ethics training. Participants will be able log in, watch the webinar of their choice, and even print their certificate of completion all on their own time. Once you have completed an on-demand webinar, the information will be tracked back to the CSDA database and become part of your profile. Don’t let time hold you back anymore - watch an ondemand webinar today!

Record Number of GMs at CSDA’s GM Leadership Summit this Year! A record number of participants, over 200, took part in the recent General Manager Leadership Summit in Newport Beach. John Spence, one of America’s top 100 business thought leaders, kicked off the conference with a timely keynote session focusing on the “Leader of the Future.” Spence also taught a popular “Advanced Leadership: Creating Your Personal Leadership Philosophy” breakout session. Matt Tenney, social entrepreneur and author, started off the Tuesday sessions with his keynote, “Serve to Be Great: Leadership Lessons from a Prison, a Monastery and a Board Room,” sponsored by the Special District Leadership Foundation (SDLF). Another highlight of this year’s conference included a sold-out “So You Want to Be a General Manger?” pre-conference workshop sponsored by SDLF. SDLF also presented two awards at this year’s summit: the District of Distinction Award to Indian Wells Water District and the District Transparency Certificate of Excellence Award to Soquel Creek Water District. Attendees at this year’s conference were able to drop-in for answers to some of their most pressing legal questions at our “Ask the Legal Experts” session, facilitated by Hanson Bridgett LLP and sponsored by the Special District Risk Management Authority (SDRMA). SDRMA also sponsored technology for the conference, including charging stations and flash drives, and the popular “Food & Wine Experience Reception.” The conference closing session was sponsored by Bank of the West and featured an important mid-year legislative update with CSDA Advocacy and Public Affairs Director Kyle Packham. Save the date for next year! Next year’s General Manager Leadership Summit heads back to Lake Tahoe and the Resort at Squaw Creek, June 12 -14, 2016. Make plans now to attend this oneof-a-kind professional development event!

Thank you to our Annual Conference sponsors!

Thank you to these sponsors and tabletop exhibitors, who help to make the General Manager Leadership Summit possible: • Special District Risk Management Authority • Special District Leadership Foundation • California Special Districts Alliance • CSDA Finance Corporation • Meyers Nave • US Communities • Black Mountain Software • Bank of the West Table Top Sponsors: • Atikinson, Andelson, Loya, Ruud & Romo • BHI Management Consulting • California CAD Solutions, Inc. • California Consulting • Contractor Compliance and Monitoring • CPS HR Consulting, • Digital Deployment • ESRI • Finley & Cook, PLLC • Hanson Bridgett LLP • HdL Coren & Cone • Jackson, DeMarco, Tidus, Peckenpaugh • Liebert Cassidy Whitmore • OpTerra Energy Services • Wells Fargo Advisors • Wells Fargo Bank/Wells Capital Management/CalTRUST

• Atkinson, Andelson, Loya, Ruud & Romo • Bank of the West • Best Best & Krieger LLP • BHI Management Consulting • BNY Mellon Trust Company, N.A. • Brandis Tallman, LLC • California Special Districts Alliance • CSDA Finance Corporation • Five Star Bank • Liebert Cassidy Whitmore • Mann, Urrutia, Nelson CPAs & Associates, LLP • Mc Murchie Law • Meyers Nave • Nossaman LLP • Prager & Co., LLC • Richards Watson Gershon • SouthTech Systems • Special District Leadership Foundation • Special District Risk Management Authority • US Communities • Wells Fargo Advisors As of 8/18/15

september 21-24

Monterey, CA

update

October 11, 2015 marks the deadline for Governor Jerry Brown to sign or veto hundreds of bills passed during the last weeks of the 2015 Legislative Session. CSDA was busy tracking, supporting, and opposing many legislative measures impacting special districts. Some of the most significant proposals would have affected property taxes, collective bargaining, and public contracting, representing billions of dollars in potential new costs. The following is a small summary of some of the bills CSDA advocated on for special districts. Defeated Legislation The 2015 Legislative Session brought its fair share of bad legislative measures that would have greatly hindered special districts’ ability to provide services in the most efficient and effective manner. Assembly Bill 1315 by Assembly Member Luis Alejo would have made significant changes to the public works process by prohibiting public agencies from contracting with general contractors to develop Storm Water Pollution Prevention Plans. This measure was featured during Special Districts Legislative Days and districts in attendance discussed the negative impacts of this measure with their elected representatives during their legislative visits. Through a series of call-to-action campaigns and strategic lobbying efforts by CSDA, this bill was held in the Assembly Appropriations Committee and was prevented from further making its way through the legislative process.

Amended Legislation CSDA was not only successful in preventing the passage of bad legislative measures, they were also able to work with various legislative offices to change the language on many bills to mitigate or altogether remove the effects on special districts. AB 1347 by David Chiu would have originally created a one-sided claims resolutions process in favor of contractors. Local agencies would have had to meet unfeasible deadlines, and would have had no recourse if the information provided by the contractor was false or incomplete and required formal mediation. As a result of advocacy and a diverse coalition of public agency associations, this bill was significantly amended to address many of CSDA’s concerns and the association dropped its opposition to the bill. Signed Legislation AB 327 by Assembly Member Richard Gordon was also part of the Special Districts Legislative Days package. This bill would extend the current exemption in law that allows districts to use volunteers without having them be subject to prevailing wage laws. This bill was signed into law by Governor Brown. Another CSDA-supported measure was AB 341, authored by our inaugural Legislator of the Year, Assembly Member Katcho Achadjian. This bill was also signed into law and extends the deadline

for submitting financial transaction reports to the State Controller from 90 or 110 days after the close of the fiscal year to seven months. Additionally, AB 341 provides a uniform date of April 30 for all special districts to submit their annual employee compensation reports to the State Controller. The streamlined reporting accomplished in this bill will ease reporting deadlines while increasing the accuracy of the data provided. We appreciate the contributions of all of the CSDA members who actively participated in our advocacy efforts. As the legislative year comes to an end we invite you to take this time to learn more about CSDA advocacy tools and find out how your district can participate in the next legislative cycle. For a comprehensive list of all CSDAmonitored bills, visit the Bill Tracking page under the Advocacy tab at www.csda.net.

Take Action: Do you have an idea to create, improve, or eliminate a state law affecting special districts? Share your proposal by submitting the 2016 Legislative Proposal Submission Form to CSDA Legislative Analyst Nick Clair. The form can be found by visiting CSDA’s Grassroots Action Center at www.csda.net.

Ask theExperts A director has requested a “Closed Session” for “personnel exemption” be added to the agenda regarding another board member. Are board members considered “personnel”? Also, is an attorney required to be there? employment, evaluation, discipline, or dismissal of a public employee. The purpose of this personnel exception is to avoid undue publicity or embarrassment for public employees and to allow full and candid discussion of such employees by the legislative body.

In enacting the Brown Act, the Legislature struck a balance between two important interests. The first interest is the public’s ability to monitor — and to a limited extent participate in — the decision-making processes of local legislative bodies. The second, competing interest is the need of such bodies to discuss certain sensitive matters confidentially and candidly. Do you have a question for any of our CSDA experts? If so, send your question to Nicole Dunn, editor, at nicoled@csda.net.

Courts and the Attorney General have construed the Brown Act to create a strong presumption in support of the public’s right of access to legislative body meetings. Accordingly, a body may meet in closed session only where it is expressly authorized by the Brown Act, and those exceptions are read narrowly. The fact that a board may consider a matter sensitive or embarrassing does not justify meeting in closed session unless it is authorized by some specific exception. The Brown Act contains a provision that authorizes closed sessions to consider the appointment,

The threshold issue for determining whether a closed session is authorized under the personnel exception is whether the individual in question is an employee subject to the employment authority of the legislative body. For example, the Attorney General’s Office has concluded that a board of education may not hold a closed session under the personnel exception where the superintendent, rather than the board, had the legal authority to make the employment decision. Indeed, and particularly critical here, the Act defines the term “employee” to specifically exclude any elected official or member of a legislative body. Given this provision, the Attorney General’s Office has concluded that complaints against members of legislative bodies may not be discussed in closed session. Accordingly, a local legislative body may not meet in closed session to discuss concerns about the conduct of one of its members. Such discussions, if they are to occur, must take place during a noticed public meeting of the body. Thank you to Randy Riddle, partner with Renne, Sloan, Holtzman Sakai, LLP for this response. Find the firm at publiclawgroup.com

MOVERS & SHAKERS Tim Flanagan was named general manager of the Monterey Regional Waste Management District. Flanagan served as the district’s assistant general manager since 2005 and has more than 33 years of experience in the public and private sectors of waste management. He succeeds William Merry, who retired after 28 years with the district. Lt. Col. Lorenzo Rios was named chief executive officer of Clovis Veterans Memorial District. “I plan to lead the district with a more active role in communicating the heroic stories about the men and women from the Clovis area who valiantly served our nation,” says Rios. West Valley Water District welcomes Thomas J. Crowley, P.E. as general manager. The district also welcomes Rochelle Clayton as chief financial officer. Monterey Regional Water Pollution Control Agency announces the retirement of General Manager Keith Israel. The district welcomes Paul A. Sciuto, who will fill the position. Camarillo Health Care District announces the retirement of Chief Executive Officer Jane Rozanski, after 22 years of service. Kara Partridge Ralston, who has served with the district for 17 years, will fill the position. Best Best & Krieger LLP Attorney Roderick Walston received the International Municipal Lawyers Association’s Amicus Service Award for his work on the Los Angeles County Flood Control District v. the Natural Resources Defense Council case.

California Special District – September-October 2015

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!

Livermore Area Recreation and Park District (LARPD) General Manager Tim Barry was appointed as president of the California Park and Recreation Society. “Achieving this role has been a career-long ambition, and enables me to meet and understand members from all over the state and compare notes on best practices and research that will enhance our services at LARPD,” says Barry. Central Basin Municipal Water District announces Kevin Hunt as general manager. Hunt has worked as the district’s interim general manager since November 2014 and previously served as general manager for the Municipal Water District of Orange County. For the 11th consecutive year, Monte Vista Water District has been awarded the Certificate of Achievement for Excellence in Financial Reporting for its comprehensive annual financial report by the Government Finance Officers Association of the United States and Canada. Herald Fire Protection District welcomes Tony Corado as interim fire chief. Corado will work with the district for at least 90 days, using his extensive experience to help the district find a candidate that is a perfect match with the district’s needs as a permanent chief.

In Brief Library District Offers “Summer Challenge” to Teens

District Explores Water-Saving Equipment

The libraries of Santa Clara County Library District took part in a “Summer Challenge” program over the summer season. The challenge worked to inspire teens to read and discover their “inner heroes.” According to a recent report from the National Summer Learning Association, the summers before and after middle school are critical transitions for a student’s academic success. Other reports purport that ninthgrade students are three to five times more likely to fail a class than students in any other grades. And educators have observed that teenagers who read and learn over the summer are better prepared to face these transitions. “According to the NSLA, only about one-third of households participate in a summer learning opportunity,” says district Chair Emily Lo. “We challenge all households with school-age children to try at least one new summer program this year.” In addition to offering free reading programs, the district also offered online tools and resources, available on tablets and smartphones. Workshops on topics ranging from information technology to graphic novels were also offered.

Water main flushing helps water agencies scour pipe buildup through high-pressure flow. This allows the water to remain high quality. Standard practices call for flushing to occur once a year but, in the midst of California’s ongoing drought, flushing water mains could allow for the spilling and losing of gallons and gallons of the precious resource. Thus, some agencies, like Soquel Creek Water District (SCWD), have suspended flushing except in instances where health and safety require it. In an attempt to find a solution to this challenge, SCWD is looking into equipment that could allow for flushing of assets without losing much water. After running one test, where two fire hydrants were flushed, only a dribble of water (that the district used to test quality) was expelled instead of tens of thousands of gallons. If purchased, the equipment would potentially be purchased through fees paid by new district development permits.

New Website for Imperial Irrigation District Imperial Irrigation District (IID) has launched an updated and upgraded website. The site was designed with the goals to improve customer service and ease of use for the public. Located at www.iid.com, the site now has an upgraded content management system that is compatible with mobile devices. IID’s site receives 75,000 visitors per month on average, with over 186,000 page views. “This upgrade supports our commitment to providing the best service possible to our customers,” says IID Officer of Media Communications Marion Champion. “It reflects the value that our customers place on timely access to information and to manage their accounts.”

TID to Video Record Meetings In efforts to further its transparency to the public, Turlock Irrigation District will begin video recording its board meetings. The meetings are held Tuesdays at 9:00 a.m., when many members of the public are at work and unable to attend. Going forward, the district’s meetings will be recorded and uploaded to the TID website, where the public may watch them at a later time. In addition to the recording, the board room will be updated to facilitate the video. The projection screen will be placed behind the board of directors, rather than to its left, so the video audience can see it, and those watching the recording will also be able to see slideshows via a picture-in-picture feature.

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.

Fire Services Restored Thanks to New Revenue The Cosumnes Community Services District has ceased rotational fire engine company closures thanks to new incoming revenue streams. Since 2013 the district had to close three engines on a rotating basis due to budget constraints. As a result, an engine company was out of service 87 percent of the time each day. One company was restored earlier this year thanks to a first responder fee the district started receiving. The fee is to offset the costs of providing advanced life-support services. Later, the district’s fire department applied for and received revenue from a new state and federal government program under the Medi-Cal Managed Care Program. This additional revenue has allowed all three companies to operate on a full-time basis. “The fact that we’re able to restore this important service delivery level in Elk Grove is a direct result of hard work and efforts of many here at the department to find innovative solutions to new revenue,” said Fire Chief Tracey Hansen. “If we were to wait for property tax revenues to rebound and fund the service delivery return, it could have taken months or years longer.”

Healthier Cafeteria for District Hospital

Food Scrap Program Continues to Grow in Marin

Thanks to the hiring of a new executive chef, the cafeteria at Kaweah Delta Health Care District is getting fresher and healthier. Chef Scott Kroner was hired out of a catering business in Los Angeles and he’s been making changes, including moving from premade and frozen foods to hand-cutting fresh items like salmon, chicken and beef. “Right now we’re about 95 percent fresh produce and before it was pretty much zero,” says Kroner. The physicians at the hospital are thrilled with the transition and the health benefits offered in the fresh food. Kroner hopes to continue elevating the meals prepared in the cafeteria and hopes to get a madeto-order plan in place, where patients will have the option to order room service around the clock.

Sources: Imperial Valley News, Los Altos Town Crier, Marin Independent Journal, Sacramento Bee, Santa Cruz Sentinel, Turlock City News, Visalia Times-Delta

California Special District – September-October 2015

More and more food businesses are signing up for the Food to Energy program, launched last year by Central Marin Sanitation and Marin Sanitary Service. Through the program, local business – like restaurants and grocery stores – discard their food scraps in separate waste containers from the garbage. Those scraps are then collected and processed in such a way that it is broken down into methane biogas and biosolids. The methane is then piped through a filter to remove impurities before being run through a generator at the wastewater treatment facility as renewable electricity. That electricity is used to power the administrative offices, maintenance facilities, and treatment plant at Central Marin Sanitation Agency. Eventually, it is hoped enough energy will be produced to make the agency energy sufficient, in which case any surplus would be exported to the local utility grid. Currently, the five and a half tons of scraps collected per day produce 17 – 18 hours of electricity.

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Flip: Turning challenge into opportunity Interview with State Auditor Elaine Howle The word “audit” can strike fear in some – personally and professionally. But State Auditor Elaine Howle doesn’t believe it has to be that way. As the State’s independent external auditor, the California State Auditor’s office provides nonpartisan, accurate, and timely assessments of California governments’ financial and operational activities in compliance with generally accepted government auditing standards. Its efforts work to improve government in California by assuring the performance, accountability, and transparency that its citizens call for. It holds performance audits, financial and compliance audits, and investigations to ensure governments are operating effectively with efficiency.

Elaine Howle

Elaine Howle has served as State Auditor since 2000. In that time, the State Auditor’s office has worked extensively with government at all levels, and Auditor Howle believes the audit process can be a collaborative one that benefits the State of California, its residents, and local agencies themselves. California Special District asked the Auditor to explain the responsibilities of her office, tell us about the High Risk Local Government Agency Audit Program, and advise special districts as to what they could expect in event of an audit.

Our performance audits provide information to improve public accountability and facilitate decision making by parties with responsibility for overseeing or initiating corrective action.

What are your duties as California’s State Auditor? As the independent external auditor, it is my duty to serve the State of California by providing accurate, unbiased, and timely assessments of state and local government entities. The work from my office serves an important role in the State’s system of checks and balances by examining the fiscal health and performance of state and local entities to ensure that government provides the essential services to the public in the most efficient and effective manner. We report our findings to the Legislature and decision makers, recommending actions that lead to improvement of government operations, saving the state and taxpayers millions of dollars. I am frequently called upon to provide testimony in legislative hearings and to brief members on the results of my office’s work. Our performance audits provide information to improve public accountability and facilitate decision making by parties with responsibility for overseeing or initiating corrective action. Our office conducts the annual financial audit of California’s large, complex financial system and provides an opinion on the financial statements. The office also annually audits the State’s compliance with federal regulations governing the administration of billions of dollars in federal funds California receives each year. Moreover, the office investigates received allegations and reports substantiated claims of fraud and abuse in state government. Further, the office audits and reports on state agencies that it has identified as being at high risk for waste, fraud, abuse, and mismanagement or that have major challenges related to efficiency or effectiveness. More recently, legislation permits my office to establish and develop a High Risk Local Government Agency Audit Program for the purpose

California Special District – September-October 2015

of identifying, auditing, and issuing reports on any local government agency, including a city, county, special district, or other publicly created entity, that the State Auditor identifies as being at high risk for the potential of waste, fraud, abuse, and mismanagement or that has major challenges associated with its economy, efficiency, or effectiveness. Regulations for this program became effective July 1, 2015.

What should special districts specifically be aware of in regard to the work of your office? What are some examples of interactions your office has with special districts? We’ve conducted audits over 40 years and are required to conduct all our work in compliance with appropriate professional standards—in particular, the Government Auditing Standards issued by the U.S. Comptroller General. Those standards require us to conduct all our work independently and in an unbiased manner. They also drive how we plan and perform our work and how we report conclusions. As such, my staff conduct their reviews in a nonpartisan manner, free from outside influence, including that of the Legislature, governor, any elected Continued on page 16

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Elaine Howle [continued] officials, and the subjects of our audits and investigations. We base findings, conclusions, and recommendations upon reliable evidence and will not allow preconceived notions or personal opinions to influence our work. We strictly adhere to the standards of the auditing profession and exercise the highest standards of ethics. Because our office has authority to audit any publicly created entity, my office has over the years conducted numerous audits at the local level such as auditing the performance of cities, counties, school districts, water districts, and other special districts. This experience, along with our broad state-level knowledge and involvement with national organizations that allows for sharing of ideas, places our office in a unique position to assist local governments—in an objective and fair manner—in striving for efficiency and effectiveness in delivering goods and services.

Since you were appointed as State Auditor in 2000, what have been some of your office’s biggest challenges? Successes? One of the biggest challenges and biggest successes was implementing the Voters’ First Initiative. In 2008, California voters approved the Voters FIRST Act, which essentially transferred the responsibility of redrawing district lines after the census (redistricting) from the Legislature to a 14-member independent Citizens Redistricting Commission. The initiative called for five of the members of the commission to be from each of the two largest parties (i.e., five Republicans and five Democrats) and the other four to be either decline-to-state or come from one of the other parties. The application process for the commission was to commence by January 1, 2010, and the commission to be fully formed by December 31, 2010. We had a lot of work to do in a very short time period and on a shoestring budget. We had to develop regulations and solicit input from the public for selecting the commission; educate the public about redistricting to generate interest; develop and maintain an application process; reach out to all Californians so as to afford all qualified individuals the opportunity to serve on the commission; work with the press and media to get our message out; engage in a grassroots campaign to promote the commission (working with interested groups to help spread the word, developing media campaigns, speaking at meetings/forums/conferences, etc); conduct workshops to assist individuals in the application process; create an applicant selection panel to review all applications and conduct interviews; hold and make available public meetings for selecting the commission; and assist the first commissioners in the selection process to fully form the commission. All of this while being in the public eye and constantly scrutinized by the press, interest groups, political figures, and the public. We had many who thought it couldn’t be done and many who made it more challenging. We decided to be as transparent as possible. We created a website (wedrawthelines.ca.gov) and installed a dedicated phone line for carrying out our responsibilities. Everything was posted to the website—the timelines, entire plan, informational materials, regulations, and all comments we received—the good, bad, and ugly. The entire application process and just about everything in the applications were also available online. All public meetings were streamed live online and videos and transcripts were made available on the website.

It was quite a bit of work but we established California’s first Citizens Redistricting Commission before December 31, 2010. Some of our most vocal critics became our biggest supporters, and those who said it couldn’t be done commended us.

Explain the High Risk Local Government Agency Audit Program. What are the goals of the program? How does it work? Legislation, which went into effect in January 2012, permits the California State Auditor to develop (as described earlier) a High Risk Local Government Agency Audit Program for the purpose of identifying, auditing, and issuing reports on any local government agency, including a city, county, special district, or other publicly created entity, that the State Auditor identifies as being at high risk for waste, fraud, abuse, and mismanagement or as having major challenges associated with its economy, efficiency, or effectiveness. However, any audit that the State Auditor wishes to perform under this authority must be authorized by the Legislature’s Joint Legislative Audit Committee before it may move forward. Our office embarked on establishing regulations to roll out the program last year and those regulations went into effect on July 1, 2015.

What benefits do you hope to see come from the program? The overall goal of the program is to promote effective and efficient local government while recognizing and respecting the unique status of local governments in California and their relationship to the State. The Legislature, in creating the program, hoped to use the expertise and experience of my office to identify a local government agency that is at high risk so that we could inform the audit committee, and conduct an audit of a high risk local government agency upon the audit committee’s approval. What we hope to see come from the program is to be able to do the following: • To assist in preventing fiscal distress to promote local government health, my office will identify local governments that are potentially at high risk and that will encourage local government agencies to take effective preventative measures to avoid fiscal or other types of crises. • To create a collaborative and positive partnership between my office and local government agencies and thus achieve greater efficiency and effectiveness at the local level, which will have statewide benefits. With our extensive experience auditing the performance of local government agencies throughout the State and at the broad state level,

High Risk Local Government Audit Flow Chart

The California State Auditor’s

High Risk Local Government Audit Process The California State Auditor’s Office conducts its work adhering to strict industry standards. All audits are conducted independently and free of conflict of interest or impairment. Internal quality controls ensure that fieldwork and reporting standards are followed and all staff are professionally trained and required to meet continuing education requirements. The following flowchart outlines the protocols the California State Auditor will follow to determine whether a local government agency is at high risk, as authorized in the Government Code, Section 8546.10.

Using publicly available information, make initial identification that the local agency is potentially at high risk.

Establish formal contact with local agency, and notify the agency of the initial concerns.

Hold an entrance conference to discuss the risk factors and anticipated time frames for our analysis.

Visit local agency to gather information and relevant documents, including the agency’s perspective regarding areas of concern— in most cases, the audit team will be on-site for this initial assessment for two to three weeks.

5 Hold an initial assessment closeout meeting with the agency’s management to discuss whether we still believe the agency is potentially at high risk, and if so, the factors that led us to that conclusion. Provide a draft copy of our initial assessment; the agency will have an opportunity to provide its written perspective on any areas of concern. (If we no longer believe the agency is at risk, write exit letter and close down work.)

DR AF

Submit an audit proposal to the Joint Legislative Audit Committee (JLAC) that includes the identified risk factors, the agency’s written perspective on those risks, a general description of the work we plan to perform, and an estimated budget.

If JLAC approves the audit, return to the local agency to conduct an audit. During that time, consistently brief auditee as issues are noted and developed to ensure understandings and provide the auditee an opportunity to respond. This could take from a few weeks to a few months.

8 Hold an exit conference to discuss our determination of whether the agency is high risk, the factors that led us to that conclusion, our recommendations, and our draft report.

9 Review the corrective action plan developed by local agency to ensure it is responsive to recommendations (if applicable).

To see how the State Auditor’s Office determines whether a local government agency is at high risk, view its flow chart outlining the process at tinyurl.com/highriskauditprocess.

10 Provide a confidential draft copy of the report to the local agency; the agency has five days to provide a written response which should contain its initial corrective action plan (if applicable). This response is included in the final audit report when issued to the public.

If the local agency is designated as high risk, it must provide written updates regarding its progress implementing its corrective action plan every six months after the report is issued. We will remove the high-risk designation when the agency has taken satisfactory corrective action.

my office is well poised to assist local government agencies in identifying areas of risk and taking appropriate action to remedy the difficult problems confronting them. • To share best practices amongst local agencies and make solutions to problems faced by local agencies publicly available so that other local governments facing similar issues, or confronting the same challenges, can learn from each other. In April 2015, we issued an audit report on the Ross Valley Sanitation District (Report number 2014-122). The results are an example of the benefits that can come from the collaborative and positive partnership between my office and a special district.

Is there anything special district officials can or should proactively do to prepare for this new program, and to ensure their districts are running in a way that meets your department’s standards? I encourage all to look at our regulations— available online (www.auditor.ca.gov). They describe our program and the intent of the program. I also encourage them to read some of our reports—any time you can read about issues noted in other programs is an opportunity for self-reflection into your own program. Recommendations may be made to one entity, but could easily be applied or modified to be used for various programs. I would also recommend that they take advantage of other resources that provide opportunities for networking and learning from other districts. We will make our reports public so that we too can be a resource to local governments and special districts as a vehicle for learning from others that may be facing similar issues or constraints.

What resources would you suggest? As stated above, I would recommend that they work with organizations that afford them the opportunity to network. Additionally, standard-setting bodies—such as the American Institute of Certified Public Accountants, the Government Finance Continued on page 18

California Special District – September-October 2015

Elaine Howle [continued] Officers’ Association, the Governmental Accounting Standards Board, the Financial Accounting Standards Board, etc.— provide much guidance on fiscal processes, fiscal measures, checks and balances, and appropriate management controls to prevent errors and irregularities. Also, the “California Local Government Finance Almanac” website contains a tool that local governments can use to self-assess their financial health. There is a link to the tool on the website under the heading “Diagnosing and Managing Fiscal Health” (www.californiacityfinance.com).

How frequently does your office collaborate with other state offices, like the Controller? With the Legislature? We do at times have discussions (without disclosing any particulars of the audit) with others. When appropriate, we may meet with certain control agencies when we are in our “scoping” phase—the preliminary part of our work—to determine if they have a role in the program under audit. Additionally, any time we commence an audit, one of the first steps we take is determine what work has been done in the area and review the work of others so that we can take that into consideration as we conduct our work. We certainly don’t want to duplicate efforts and if other credible agencies have conducted some work that we can rely on (in accordance with audit standards) to minimize the burden on the auditee, we would certainly do that. However, as the independent auditor, we must conduct our work in a nonpartisan and unbiased manner and thus limit those discussions so that our work is not influenced by others.

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Based on your experience auditing state and local agencies over the last 15 years, what are some of the strengths you have found with regard to special districts? What are some of the challenges? Strengths: Special districts are typically formed to provide specific services and serve certain areas or regions that are not necessarily tied to a city or a county and thus, often understand their constituents’ needs better than a government entity that provides many services and may be a bit further removed from the constituents. Special districts may be able to customize services and provide more tailored services to their customers. Challenges: Special districts may have less resources or administrative staff than a city, county or state entity. With limited resources it is sometimes difficult to incorporate management controls and proper oversight that mitigate errors, irregularities, or mismanagement.

If a special district found itself as the subject of one of your audits, what advice would you give? To be open to the process—be honest and frank about what is happening. They are the experts—they live and breathe their program every day. We come in with less knowledge about your specific situation, but come equipped with a breadth of knowledge of having worked with other local governments, special districts, and state programs. We come in without the history or ownership of processes that is natural to develop over time and thus are in a position to question how things are done and offer perhaps faster or less costly approaches. We too will be honest and frank about our work. My staff will discuss what they are looking at, what they are finding, and what they may be recommending. The special district staff will have the opportunity to ask questions, to provide information, and to provide perspective every step of the way. The program is very much intended to be a collaborative process. I truly believe that we are all working toward the same goals: to ensure that government provides the essential services to the public in the most efficient and effective manner.

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Special District Risk Management Authority Risk Management Coverages www.sdrma.org

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Tyler Technologies Software Technology Services www.tylertech.com

Hanson Bridgett LLP Legal www.hansonbridgett.com

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highlight

eCivis: Grants Research & Management System eCivis is the leading online provider of federal, state and foundation grant information, grants management, and grant writing services for special districts and other local governments. Agencies come to eCivis for preaward needs, including finding grant funding, improving collaboration and grant writing; and post-award needs including managing award revenues, improving compliance, and reducing time spent on reporting. eCivis has agreed to extend a substantial discount on its services and subscriptions to all CSDA members, depending on the size of the district and number of users. For more information or to schedule a demo, contact eCivis at 480.428.3996 or email Robert Jones at rjones@ecivis.com. Visit eCivis online at www.ecivis.com.

California Special District â&#x20AC;&#x201C; September-October 2015

Cryptolocker 3.0 The Town of Discovery Bay CSD’s Experience By Rick Howard, SDA, General Manager

Monday,

March 30, 2015 started off as any other regular Monday. Staff was rolling into the office, pouring their morning coffee and telling stories of weekend activities, little league games, and new restaurants that they had tried. Firing up computers, checking email, and returning phone calls all seemed natural. Until the unthinkable occurred.

back to work. Our immediate reaction was to do what everyone would do – not give in to the cyber criminals and restore the encrypted files from our cloud back-up storage. After notifying local law enforcement and the FBI’s unit specializing in internet criminal activity (which surprisingly was no help at all), it was time to get to work and resolve the situation. Being a relatively small agency, we don’t have the resources to be able to have full-time IT staff. We utilize a local small business to provide that service for us. We also hired Innovate Computer Systems (ICS), a local Bay Area cyber security consulting firm with offices throughout California to assess our predicament, and eventually, provide an analysis of our vulnerability and ways to protect ourselves in the future, which I’ll address a little later.

Being a public agency, it’s not uncommon to receive email from people seeking employment, and since we had a pretty high profile vacancy at the time, it was nothing but ordinary. The email was innocent enough – it had been sent from someone who had a common first and last name, the subject line was “Resume”, and it didn’t raise any red flags whatsoever.

Once our team was fully assembled and onsite, the ICS expert reported that some of the files appeared to have characteristics that could possibly infect our cloud storage if we attempted to restore them using traditional back-up methods. Based on all of the analysis, we were doomed, and as untasteful as that seemed, we paid the ransom. The risk of potentially infecting our entire network made the $700 ransom seem small in comparison.

Once the attachment was opened, however, our world turned upside down. A pop-up window appeared indicating that a little over 37,000 of our files had been encrypted with something called Cryptolocker 3.0, a Ransom Ware program that essentially locks files and doesn’t provide the de-encryption codes unless you pay a ransom. In our case, $700. You have only so many hours to make the payment before the ransom doubles, and if you decide not to make the payment at all, the encrypted files are gone forever.

Paying the ransom was no easy task, and was extremely frustrating. The attackers require that the ransom be paid in Bitcoin, an internet currency that is hard to trace and the preferred method of payment for criminals indulging themselves in illegal cyber activity. The attackers even provide an FAQ and Help link to walk you through the payment process. A little bit of criminal customer service, if you will.

The immediate havoc that resulted was unimaginable. Once all network workstations, servers, and backup storage devices were shut down, it was time to figure out what we were going to do and how we were going to address this situation, get our files back, and get 20

The only way to obtain Bitcoins is to go through a third party broker, and in our case, we utilized a Brooklyn-based international currency exchange that converts cash into Bitcoin. In order for this to occur, we had to get the cash, and in a public agency that doesn’t deal in cash transactions, it wasn’t as easy a task as one might think. Once we finally had the cash in hand, we had to deposit it into the currency house’s Bank of America holding account. The money house instructed us to not identify them as the account holder or to mention how the funds were being utilized. They warned that if the bank knew that this was for a Bitcoin exchange, Bank of America would likely not process the transaction. If questioned by the bank, we were instructed to tell them that it was to complete an eBay purchase. This whole clandestine operation seemed incredibly inexplicable, but the bizarre didn’t just end there. Once the deposit was made, the clearing house provided very specific directions on what to do next. We were told to upload front and back photos of the bank deposit slip, along with a series of numbers provided to us to authenticate the money was deposited into their account and that we are who we say we are. Illogical as it all seems, at the time, it made sense. The photos had to be taken outside on a flat white surface in direct sunlight. We followed the instructions as directed, and shortly thereafter received confirmation that the currency house had received the funds and had transferred $700 in

Bitcoin to an unknown account holder hiding out in a dark smoky room with only his computer screen providing illumination - which was the visual tale we had weaved into our minds. About three hours later, we received a cryptic note on the infected computer (which we left up and running but disconnected from the network and using a mobile hotspot for internet connectivity) that our payment had been received, we were thanked for our promptness, and that our files had been unencrypted. At least they were courteous crooks. The encryption process that literally took seconds to lock up took almost 24 hours to unlock. What started with a fairly mundane email on a Monday morning ended up costing us not just the $700 ransom, but the services of cyber experts, our IT consultants, and portions of 10 days of lost productivity. All told, approximately $5,000 in both hard and soft costs will never be seen again. While some systems were up and running that week, we wanted to ensure that all of our financial data files and customer information, including any potential financial data breaches, did not take place. After a painstaking top to bottom system analysis by ICS, and knowing that our network was totally secure, we were finally fully operational the middle of the following week. Continued on page 30

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California Special District – September-October 2015

[Solutions & Innovations]

The five things your website should do for you By Sloane Dell’Orto, Digital Deployment

2. Your website should make your life safer. Your website should protect you from the potential pitfalls of being online as an organization. It should be Section 508 compliant for users with disabilities. It should be responsive and mobile friendly on all devices. It should tell you when you’re about to miss something important. That 72-hour deadline for uploading your agenda before the next meeting? In an ideal world your website would tell you it is coming up, and give you an easy way to get your agenda posted quickly.

A lifetime of involvement in special districts has given me a passion for just how challenging it can be for districts to communicate online. However, instead of focusing on how hard it is, I’d like to look at five non-negotiable things your site should do for you. Technology isn’t your enemy, and it can definitely be your friend. So let’s explore this utopian online world. 1. Your website should make your life easier. At the very least, updating your site should be easy. You should be able to upload an agenda to the appropriate spot in less than two minutes, and your visitors should be able to find that agenda in a location that makes sense. Websites are not rocket science, so why do web development companies continue to treat them as such?

If you then want to email that agenda (or any other piece of site content) to your people—board members, the press or the public—you should be able to do that from your site in just a few clicks. Why go to another online system and recreate your content in order to send an email? If that content already exists on your website, the site should help you send it. Period. Most importantly, your staff should not need crazy technical skills to keep your site up to date. Everyone from your secretary to your general manager to one of your board members should be able to update the site. Not that you necessarily want to let all these people do so! 22

3. Your website should have your back. A special district website should make transparency as painless as possible. It should provide starter content, best practices guidance, and a way to track your transparency status. It should let you know when your content needs to be updated. (Hello, nudge nudge... That old policy: when was it last updated?)

In a perfect world the state wouldn’t pass down mandates to special districts; it would let you go about your business since you know what you’re doing. But since the state does do this, your site should be able to assist with changing compliance needs.

In a perfect world the state wouldn’t pass down mandates to special districts; it would let you go about your business since you know what you’re doing.

4. Your website should save you from software obsolescence. Who has the time or money to invest in a new website every few years? If your site gets continually updated with improvements, you can focus on what you do best: that special district stuff.

And while we’re at it, your site should be flexible enough for you to change the look and feel without rebuilding it, hiring someone new, or spending more money. You already speak special district; you shouldn’t also have to know HTML or CSS.

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 better place to live? California Special District wants to know about it! Contact Nicole Zajic at nicolez@csda.net or (877) 924-2732.

5. Your website should be predictable. It should be easy to understand what your site costs over time, and you shouldn’t have to plan for fluctuating, unpredictable hosting and support fees. You should never have to go back to your board asking for more money.

You don’t want to wait on someone else to update your site, and wonder what the bill will look like when it arrives. And because you’ll have questions, support should be unlimited and included at no additional cost. You should have the ability to download your content and do with it as you will, including moving to another provider. Your website vendor should build such great software that you never, ever want to leave. But you should be able to do so if you choose.

Why this matters to me.

websites for associations, nonprofits, and institutions. These customized sites aren’t cheap, but they have empowered our clients in really amazing ways. At last year’s CSDA General Manager Leadership Summit, our team talked with districts that simply couldn’t afford the Digital Deployment solution, although they needed something just as powerful to do their jobs properly. So we wondered: could we create an online web product for special districts that would enable them to get online quickly, easily stay compliant with state mandates, and give them full control over their content, at a price that was affordable?

I grew up in Mokelumne Hill, a tiny town (population 700) with a cemetery district, a fire district, a sanitary district, and a veteran’s memorial district. I built websites for just about every organization in town, and when our cemetery district used volunteers to inventory the town grave sites, I put it online so people could find their ancestors: www.calaverashistory.org/cemetery. My dad has been a firefighter for 50 years and we’ve always been involved in local government. When I became a firefighter and medic myself, I gained an even greater appreciation for what it takes to provide services at the local level. Special districts are the unsung heroes of government. Six years ago I moved to Sacramento to work with Digital Deployment, an 11-year old company that builds

California Special District – September-October 2015

That’s how Streamline was born: with a love for special districts, to address the needs of special districts. It does everything I’ve outlined in this article. It’s completely risk-free: there are no contracts, just one all-inclusive monthly fee based upon a district’s operating revenue. No payment is required until a site goes live, and part of each membership fee goes back to CSDA to support their work helping districts with transparency. We’d be so happy to give you a demo, just give us a call at 916-900-6619 or email me at sloane@getstreamline.com.

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[Community Connections]

Tips to encourage broader public involvement in your community From the Institute for Local Government

and communicating regularly with your community can increase the reach of an agencyâ&#x20AC;&#x2122;s engagement efforts.

Tips to Increase Community Engagement Local officials in California are increasingly facing tough challenges and are asking residents to weigh in through a variety of ways. These discussions are typically about land use, budgeting, sustainability, transportation, police and fire protection, and many other local and regional issues. However, even with the best of intentions to encourage broad participation, local officials often find that only a relatively small number of community members actually take part in public conversations and forums. Not involving a cross-section of residents limits the effectiveness of these public engagement efforts and negatively impacts the breadth and quality of ideas contributed. A lack of diverse participation can also reduce community support for the decisions reached by the governing body.

Benefits of Increased Public Engagement Increasing public engagement in your community offers many benefits. Engaging the public early in the decision-making process can help agencies avoid costly pitfalls and mistakes. Involving residents and others in the process can generate more support for the final decisions reached by local decision-makers. Constituents who have helped shape a proposed policy, project or program typically have a better understanding of the issues at hand and the reasoning behind the final decision. Participation helps generate ownership. Effective communication about the publicâ&#x20AC;&#x2122;s involvement in a local decision can broaden community support. Most California communities have diverse populations, and many are experiencing rapid demographic changes. Community composition varies by age, gender, ethnicity, and income level. Providing a variety of engagement opportunities, such as incorporating technology into standard public engagement channels

Develop Relationships: Less engaged communities are often critical of the public engagement process. Developing personal relationships with the community can lead to a more inclusive process and community buy-in. Build Community Capacity to Participate: Community members have varying degrees of familiarity with local government processes and functions. Providing educational materials and/or a process overview at the beginning of the public engagement process will allow more meaningful participation from the broad community. Fit Your Process to the Participants: Once you determine the purpose of a public engagement process, think about the range of participants you hope to involve before selecting your approach or process(es) for that involvement. This will help create opportunities for participation that will be more appropriate and welcoming for participants. Get Help: Identify and consult community-based and intermediary organizations, including neighborhood and grassroots leadership groups, local clergy, faithbased organizations, community and ethnic media, and others that can provide two-way communication between local officials and community residents on specific issues and polices. Communicate Effectively and Respectfully: Stay current with the communitiesâ&#x20AC;&#x2122; changing demographics and develop culturally and linguistically appropriate communications materials and strategies. Recognize the importance of communicating with residents in their first language to ensure their maximum understanding of issues. As appropriate, promote public engagement through ethnic media and other intermediary organizations that already serve and work with the communities you wish to reach. Plan ahead for interpretation and translation services if possible. Transportation assistance and childcare can often be helpful.

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 Zajic at nicolez@csda.net or (877) 924-2732.

Be Flexible: Hold public meetings or other public engagement processes in community settings that are known and accessible to the communities you wish to reach. Explore what engagement tools and processes will best meet the needs and conditions of specific populations. Have Specific Goals: Take the time to create targeted goals for harder to reach communities. In general, encourage attention and learning about inclusive engagement throughout your agency, and include public information officers in these discussions. Individual departments can develop their own outreach plans to reach specific less-engaged communities or populations. Stay in Touch: As appropriate, keep current lists of organizations and groups concerned about given issues and keep them informed of opportunities to participate. Say Thank You and Follow-Up: Express appreciation for those who do become involved. Let participants know how their input was considered and impacted decisions. Keep Learning: Follow up after specific engagement efforts to determine what worked and what could be improved. Build it in: Explore the integration of diverse community voices as a part of the overall strategy to inform and support the goals and programs of local government.

struggle to reach a broad cross-section of residents. The Institute for Local Government’s Public Engagement Program offers resources to help local officials and their communities implement effective and inclusive public engagement activities. Well designed and implemented public engagement processes can help local agencies better understand the views and values of residents, improve decision-making, create a more informed and supportive community and lead to greater public trust and confidence in local government. For more information and additional resources visit www.ca-ilg.org/engagement. About the Institute: The Institute for Local Government (ILG) is the research and education affiliate of the California Special Districts Association, the League of California Cities and the California State Association of Counties. ILG’s mission is to promote good government at the local level through practical, impartial and easy-to-use resources. Visit www.ca-ilg.org to learn more.

Communicate on Point

Persist through challenge

Persuade with Integrity Commit to Excellence

Dealing with Deeply Held Concerns and Difficult Participants • Encourage and practice active listening. Be respectful. Do not respond in kind to derogatory or insulting comments. • Identify and respond to the substance of the question or comment rather than to its tone (assuming the question or comment is relevant to the topic). • Suggest a short break and, as appropriate, speak to an individual about his or her inappropriate language or interactions with others. • Be aware that people who do not feel heard are likely to speak loudest. Some individuals also use more direct or emotional styles of verbal and nonverbal expression than others. • Review and enforce the meeting ground rules. While a growing number of California communities and local governments are incorporating innovative public engagement techniques into their decision-making processes, many still

California Special District – September-October 2015

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Legal Brief California’s New Paid Sick Leave Law in Effect By Gage Dungy, Partner at Liebert, Cassidy, Whitmore

California’s new Healthy Workplaces, Healthy Families Act of 2014 (Paid Sick Leave Law or Assembly Bill 1522) is upon us. The law went into effect July 1, 2015 for most employees who do not already receive paid sick leave or other paid time off. What we do know about the law: • For those employees who did not receive any paid sick leave (e.g., temporary, part-time, seasonal, etc.) prior, special districts needed to begin providing paid sick leave accruals on July 1, 2015. The only relevant exception to this law for special districts are for any employees covered by a collective bargaining agreement that already provides for paid sick leave, sets an employee wage rate of at least 30 percent of the state minimum wage, and has binding arbitration for any employee disputes over the paid sick leave (e.g., binding grievance arbitration). • The default method of providing paid sick leave accruals is for an employee to accrue one hour of paid sick leave for every 30 hours worked. While a district can limit the amount of paid sick leave used by an employee to three days/24 hours (whichever is greater) in a 12-month period, the law provides that an employee can continue to accrue to an ongoing accrual cap of six days/48 hours (whichever is greater) which will then carryover each 12-month period. 26

• The alternative method for providing paid sick leave accruals is to “frontload” three days/24 hours of paid sick leave up front on July 1, 2015 for current employees and on the date of hire for new employees going forward, and again at the beginning of each subsequent 12-month period. Because the paid sick leave is provided up front under this frontload method, the other accrual and carry-over requirements do not apply. • An employee is not eligible to begin using paid sick leave until the 90th day of employment. This 90 day time period began to run on January 1, 2015. Therefore, current employees who have been employed for over 90 days on July 1, 2015 will be entitled to use paid sick leave going forward as accrued. • Paid sick leave can be used for the diagnosis, care, or treatment of an existing health condition of, or preventative care for an employee or an employee’s family member (parent, child, spouse, registered domestic partner, parent-in-law, sibling, grandchild or grandparent). Paid sick leave can also be used for an employee who is a victim of domestic violence, sexual assault or stalking as provided in Labor Code sections 230-230.1. • For districts who already provide paid sick leave/paid time off for their employees, the Paid Sick Leave law will not likely provide additional leave to those employees, but additional restrictions will likely apply for the first three days or 24 hours in a 12-month period (e.g., the entitlement to allow use for familial relationships not typically permitted by sick leave provisions). • An employee shall provide reasonable advance notification of any foreseeable use of paid sick leave (e.g., scheduled doctor’s appointment). If the need to use paid sick leave is unforeseeable, the employee shall provide notice to the employer as soon as is practicable. However, the Labor Commissioner has

Districts will be required to give employees an accounting of their paid sick leave balances on each payday – either on an itemized wage statement or other separate writing provided to the employee.

indicated that an employer cannot request verification of the need for paid sick leave (e.g., a doctor’s note) for time covered by the law as this may be deemed to be interference with an employee’s leave entitlement. In addition, a district cannot require an employee find a substitute to fill in for their absence. • Districts can require that an employee use up to two hours of paid sick leave at a time as a minimum increment of use. • Unused paid sick leave is not a vested benefit and an employee is not entitled to cash out any unused paid sick leave at the time of separation of employment

unless otherwise provided by a district’s local rules or policies. However, if a separated employee is rehired by the district within 12-months of separation, the law requires the employee have up to six days/48 hours of their unused paid sick leave reinstated. If the separated employee had not yet worked the requisite 90 days of employment prior to the earlier separation, they will still have to work the remaining balance of the 90 days before being eligible to use paid sick leave. • Districts will be required to give employees an accounting of their paid sick leave balances on each payday – either on an itemized wage statement or other separate writing provided to the employee. • With respect to notice, districts are required to post a general workplace poster in the workplace, similar to other workplace postings (e.g., Minimum Wage, FMLA, etc.). That workplace

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poster is available at: www.dir.ca.gov/ dlse/Publications/Paid_Sick_Days_ Poster_Template_(11_2014).pdf. While the Paid Sick Leave Law still raises a number of questions concerning its interpretation and will continue to do so, it is important for special districts to ensure that they are moving forward with its implementation to comply with the law to the extent possible. This article was initially featured on CSDA’s blog. Sign up to receive blog posts at www. csda.net.

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Big enough to have all the needed expertise. Small enough to focus on your needs. 408/374-0977 info@rauchcc.com www.rauchcc.com Contact us for a FREE consultation.

California Special District – September-October 2015

leadership

Developing leadership skills when you have no formal authority By Dr. Frank Benest, Cal-ICMA

I am a mid-level program staff person in a medium-sized local government who wants to advance into management. I know that I need to develop leadership skills if I am to become competitive for lower-level management jobs. However, in my job, I have no formal authority or supervisory responsibilities. How do I develop my leadership skills when I don’t have the opportunity to exert any authority? Here are some points to consider about harnessing leadership skills you may already have, and finding opportunities to develop these skills inside and outside of work. First, you may have had a lot of leadership experiences; they may not have been related to your paid position. For instance, in the past, have you served as a recreation leader, scout leader, baseball coach, Sunday School teacher, or Big Brother or Sister? Second, you can begin to develop new leadership experiences outside of your paid job. For example, in the early days of my career, I volunteered to lead a committee in my professional association and thus led a project involving a number of colleagues. As a younger local government staff person, I also volunteered to serve on a board of directors for a community nonprofit and 28

developed several worthwhile improvement programs in conjunction with other community members. As a young professional, I also served as the president of our employee association (no one else wanted the job) and developed both leadership and negotiation skills. Third, you can take a training course or two in the areas of supervision, management or leadership. Some local government agencies offer their own training courses or belong to a regional training consortium to provide this kind of training. Your HR department can help you seek out such opportunities. In addition, professional associations like ICMA offer courses and training programs (for example, check out ICMA’s Emerging Leaders Development Program) as do most community colleges. Fourth, you need to seek out leadership opportunities in your job. You learn leadership by doing and learning from the experience. Here are some options:

• Ask your manager to be on the lookout for an acting or interim assignment in which you can supervise others or lead projects • Ask your manager to appoint you as a lead staff person for an ongoing or time-limited project • Call together colleagues who are working on different aspects of a larger challenge and help create an informal self-directed work team.

Public Member Appointees

CSDA Appointees

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

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

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

Staff

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

In any of these situations, you must learn how to exert personal leadership without relying on formal positional authority. Even as an acting supervisor, you must rely on your personal attributes and people skills. The formal authority of a manager can only force others to provide a minimal level of performance or compliance. Leadership, as opposed to management, can help people achieve great things. In a team environment, I have found the following ten approaches help build and support your leadership capacity:

• Rapport. Build rapport with others before trying to lead a

specific project; get to know colleagues personally as well as find out about their personal interests and family; demonstrate that you care about your colleagues. • Passion. Demonstrate your own enthusiasm and passion for the challenge or project. • Positive Opportunities. Help the work group focus on the positive opportunities posed by the problem or issue, instead of emphasizing all the obstacles. • Quiet Expertise. Lead with quiet expertise, whatever your expertise or knowledge entails. • Resources. Offer any resources that you may have (e.g., your contacts, computer or writing skills, facilitation skills for a community meeting) to help your team members, not only on the team project but for any other effort in which they may be involved. • Listen. Ask questions and be inquisitive of the perspectives of others; listen and then listen some more; help integrate the views and interests of other team members into the goals and strategies of the team; emphasize win/win opportunities; don’t become overly invested in specific outcomes (leadership is a journey for which the end-point is often uncertain).

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

• Trust. Trust other team members and they will tend to reciprocate that trust.

• Accountability. Hold yourself accountable for the work of

the team; meet your obligations and others will tend to do so as well. • Serious Fun. Make meetings “serious fun;” for example, bring bagels or cookies to a meeting or plan an offsite session at a downtown café. • Celebration. Help the group celebrate milestones along the way, thus building momentum, confidence, and group capacity. Finally, you must reflect on your leadership experience. It is also helpful to ask a trusted colleague, mentor or coach to assist you in critiquing your leadership efforts. Learning anything, including leadership skills, requires self-awareness and critique. The key is learning from any missteps. As Jeff Immeldt, CEO of GE, once stated, “People can help you but leadership is one of those great journeys into your own soul.” In sum, you need to use opportunities on and off the job to build your portfolio of leadership skills. So, when you next apply for a job and the interviewer asks, “Tell us about your management experience,” you can respond: “Let me tell you about a few of my leadership experiences.” Good luck! This article is from the Career Compass series that appears in the Career Center at www.csda.net. The Career Compass Anthology is made available through the CSDA and SDLF sponsorship of the Cal-ICMA Coaching Program.

Congratulations to those who have completed the following SDLF programs.

Districts of Distinction Accreditation • Indian Wells Valley Water District Accreditation – May 2015 • Municipal Water District of Orange County – June 2015

Recognition in Special District Governance • Michael Kassarjian, Kensington Fire Protection District – May 2015

California Special District – September-October 2015

District Transparency Certificate of Excellence • • • • •

Contra Costa Water District renewal – April 2015 Nipomo Community Services District renewal – May 2015 Costa Mesa Sanitary District renewal – June 2015 Rainbow Municipal Water District – June 2015 Eastern Municipal Water District renewal – June 2015

Town of Discovery Bay [continued from page 21] ICS prepared a thorough system-wide examination of our network with a complete threat and vulnerability assessment, along with an analysis and list of recommendations on addressing any remaining computer and network security concerns. Our Root Cause Analysis, or RCA, determined that the Ground Zero computer’s anti-virus was out of date by less than a week. The employee had been on vacation the prior week, and, but for a series of events, this situation never would have occurred. Not taking anything or anyone for granted, the Town has also purchased four - 4TB NAS devices that are backed up every week, disconnected from the network, and stored off-site and in a secure and safe location.

While we are now back to peak operational efficiency, I can assure you that this is something your district does not want to face. The vulnerability we felt, the violation we sustained, and the harm it caused was unbelievably frustrating. It was a painful lesson, and one that could, and should, have been avoided. I highly recommend you never open an attachment from anyone you may suspect is fraudulent, and never, under any circumstances,

District Snapshots The 13th annual Solar Cup competition was held in May. Los Osos High School, from Rancho Cucamonga, competed against 41 schools from throughout Southern California and placed 3rd overall in the veteran division. The school’s team was sponsored by the Cucamonga Valley Water District and the Inland Empire Utilities Agency. Solar Cup is an annual competition that teaches high school students practical application of engineering, science, math, problemsolving, and management and conservation of environmental resources.

open a Zip file from an unknown source, as this is the preferred payload for Cryptolocker 3.0. Make sure all of your virus software is up-to-date and working as intended. Contact a cyber-security firm such as ICS if you have any concerns or want to conduct a vulnerability assessment. I hope that Discovery Bay’s painful lesson will provide the wake-up call to every special district that if it can happen to us, it can just as easily happen to you. It just takes one click. Rick Howard is the general manager for the Town of Discovery Bay Community Services District, an SDLF District of Distinction.

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

Services & Benefits • Advocacy • Professional Development • Cost Saving Programs 877.924.2732 • www.csda.net

Strong foundation for special districts.

The California Special Districts Alliance is a combined partnership with California Special Districts Association, CSDA Finance Corporation and the Special District Risk Management Authority. California Special District – September-October 2015

anaging Risk

Volunteer exposure risks to your agency Protecting Your Agency • Develop a Volunteer Policy Manual. Specifically identify the rights and duties of the Volunteer/Unpaid Intern within the organization; • Include in the Manual the agency’s Harassment/ Discrimination/Retaliation policy and reporting policy procedures; • Develop a specific Volunteer Position description identifying the physical requirements for the position; • General duties should be identified and easily transferable for normal ‘household’ activities, i.e. sitting, standing, lifting, computer work, etc.; For many public agencies, volunteers or unpaid • The Volunteer Policy manual should state that the interns provide an important function to allow the Volunteer/Unpaid intern does not receive any benefits from the agency in exchange for performing the agency to provide essential services to the public. volunteer duties; Recently California law has been expanded to provide • Document in the Policy manual that the Volunteer/ ‘protected’ status to volunteers and unpaid interns Unpaid Intern is NOT ELIGIBLE for Workers’ from retaliation and discrimination in the workplace. Compensation benefits pursuant to California Labor Code §3352: “Employee” excludes the following: AB 1443 amends the California Fair Employment and (i) Any person performing voluntary service for a Housing Act (“FEHA”) and extends its prohibitions public agency or a private, nonprofit organization against discrimination and harassment to volunteers and who receives no remuneration for the services unpaid interns. Previously, these prohibitions (e.g., on other than meals, transportation, lodging, or account of race, religious creed, national origin, disability, reimbursement for incidental expenses. sex, sexual orientation -- and many others) expressly • The Volunteer/Unpaid Intern is NOT AN applied to “apprentice programs” and “training programs” EMPLOYEE of the agency; that specifically “led to employment,” but they did not • The Volunteer Policy Manual is not an offer of apply expressly to unpaid intern or volunteer programs employment or a contract of employment; that were not designed to lead to actual employment. In • The Volunteer position is an “AT WILL” position and addition, the FEHA now prohibits discrimination and each party (Volunteer/Agency) can exercise its right to harassment not just in the “selection” or “termination” terminate the relationship; of apprentices, unpaid interns and volunteers, but also • Provide the Volunteer a form to acknowledge receipt discrimination and harassment in the “training” or “other of the Volunteer Policy Manual; terms or treatment” of such persons. As a result, virtually • Review annually with all volunteers and unpaid interns. any discriminatory act is prohibited throughout the duration of the unpaid intern or volunteer’s involvement Frequently Asked Questions with an employer. The proponents of AB 1443 expressed Are Volunteers/Unpaid Interns covered under our a concern that the economic recession has resulted in agency’s Liability Coverage Agreement? many individuals having to rely on unpaid positions and internships in an effort to enhance their employability. The For SDRMA Members, Volunteers/Unpaid Interns new law extends basic workplace protections to those who are considered COVERED INDIVIDUALS and the Volunteer/Unpaid Intern as well as the Member is do so in order to gain work experience. covered under the Liability Coverage Agreement issued by SDRMA. A proud California Special Districts Alliance partner.

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

Covered Individual(s) means: Any of the Member’s individual Volunteers while acting within the course and scope of their service or duties as Volunteers, or workers who participate in an internship or training program which may lead to employment with the Member, while acting within the scope of their duties in their internship or training program. Can Volunteers/Unpaid Interns drive an agency vehicle? Yes. They are considered a Permissive User and are acting as an agent of the agency. If a Volunteer/Unpaid Intern is injured while performing their duties are they covered for their injuries/medical treatment? No. While the Volunteer/Unpaid Intern is covered for a Third Party Liability claim filed against the agency, they are not covered for any injuries they sustain while performing their duties.

California Special District – September-October 2015

Consultants

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

SDRMA Staff

Gregory S. Hall, ARM, Chief Executive Officer C. Paul Frydendal, CPA, Chief 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, Senior HR/Health Benefits Specialist Jennifer Ng, Claims Examiner I Shawn Vang, Accountant Rajnish Raj, Accounting Technician Rachel Saldana, Administrative Assistant

What about Workers’ Compensation coverage? Under California Labor Code §3352 (i) Volunteers/Unpaid Interns are not eligible for workers’ compensation benefits. In order to provide workers’ compensation coverage to volunteers/ Unpaid Interns, the agency must pass a resolution as required by Labor Code §3363.5; the volunteer/Unpaid Intern is responsible for their own medical treatment. Notwithstanding Sections 3351, 3352, and 3357, a person who performs voluntary service without pay for a public agency, as designated and authorized by the governing body of the agency or its designee, shall, upon adoption of a resolution by the governing body of the agency so declaring, be deemed to be an employee of the agency for purposes of this division while performing such service. Continued on page 36

Money Matters Expect to pay more $ to operate diesel trucks By Alene M. Taber, Kathryn M. Casey, and Kristin L. Garcia, Jackson DeMarco Tidus & Peckenpaugh

If your district owns, operates or leases just one diesel truck, the district can expect its costs to increase in order to comply with California’s diesel vehicle regulations. Statewide compliance costs are estimated at $150 million and over $500 million for the Public Agencies and Utilities Fleet Rule and Off-Road Regulation, respectively. The California Air Resources Board (CARB) adopted a new rule regulating diesel trucks operated by public agencies and utilities in 2005 (amended in 2009), to reduce air pollution (specifically, particulate matter (PM) emissions). The rule applies to any public agency or utility vehicle that is owned, operated, or leased, and intended to be driven on roadways (called “onroad vehicles”), and has a Gross Vehicle Weight Rating (GVWR) of 14,000 pounds and greater. This weight rating includes both medium and heavy duty trucks such as the Ford F-450, Dodge Ram 5500, GMC Topkick, GMC C8500, and Freightliner Cascadia. Emergency vehicles, military tactical vehicles, school buses, solid waste collection vehicles (SWCV), urban buses, transit fleet vehicles and vehicles intended for off-road operation (“off-road vehicles) are exempt. CSDA F C

A proud California Special Districts Alliance partner.

The rule imposes two requirements. First, the public agencies and utilities fleet must achieve “Best Available Control Technology (BACT)” or retire the engine/ vehicle. BACT Compliance is achieved by one of the following methods: • An engine certified to 0.01g/bhp-hr (grams per brake horsepower-hour) PM or cleaner (equivalent to 2007 model-year or newer PM standard); • An engine certified to a 0.10 g/bhp-hr PM standard used in conjunction with the highest level verified diesel emission control strategy (DECS); • An alternative-fueled engine (2004 through 2006 must meet 1.8 g/bhp-hr NOx), a heavy-duty pilot ignition engine, or a gasoline engine (must be certified to standards specified in title 13, California Code of Regulations, sections 1956.8 (c)(1)(B) and 1976(b)(1)(F); or, • The highest level DECS that is verified for a specific engine, and the manufacturer or authorized dealer agrees can be used on that engine. Importantly, CARB does not consider biodiesel fuels to be verified as a DECs. Therefore, the use of biodiesel does not meet BACT. CARB considers “retirement” of a vehicle to mean selling it outside of California, scrapping the vehicle, or converting the vehicle to a low-usage vehicle. A low-usage vehicle is a vehicle that is operated for fewer than 1,000 miles or 50 hours per year averaged over five years, or for a low-population county1 , a vehicle that is operated for fewer than 3,000 miles or 150 hours averaged over five years. Second, the public agencies and utilities must maintain records. Starting in 2008, special districts were required to keep records of their fleets, including vehicle identification number, vehicle type, engine manufacturer, model year, family, series, status as a total or low-usage fleet, installed DECS family name, serial number, manufacturer, install date, and if applicable, reasons for choosing a Level 1 or 2 DECS. Records must be available to the CARB staff upon request and/ or inspection, or a penalty fine of $100 per day per vehicle will be issued.

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

Don Humphrey, Livermore Area Recreation and Park District 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, CEO Cathrine Lemaire, Program Manager Charlotte Lowe, Executive Assistant Rick Wood, Finance Manager

Recently closed financings

CARB has established the following compliance timeline for all public agency and utility fleets. • Pre-1960 engine model years are prohibited from use. • 1960-2002 engine model years must have achieved 100 percent BACT compliance by 2011 • 2003-2006 engine model years must have achieved 100 percent BACT compliance by 2010 • 2007 and newer engine model years must have achieved 100 percent BACT compliance by 2012

In the first half of 2015, the CSDA Finance Corporation facilitated financings totaling more than $20 million for special district projects and purchases. Below are some examples of recently closed financings:

For special districts and utilities located in low-population counties, there is an extended schedule that starts December 31, 2008 and concludes December 31, 2017. There are other implementation schedule options as well.

Bodega Bay Public Utility District System improvements - $3,955,000

Special districts must also comply with the off-road vehicle regulation, which reduces PM and oxides of nitrogen (NOx) emissions.2 The regulation applies to all self-propelled off-road diesel vehicles 25 horsepower (hp) or greater and most two-engine vehicles such as tractor engines and boat engines. Leased or rented off-road vehicles are subject to the rule. The regulation does not apply to personal use vehicles, agricultural use-only vehicles, and vehicles awaiting sale.3 The regulation includes five main requirements: (i) registration; (ii) idling limit; (iii) reporting and labeling; (iv) age limits for Continued on page 42

California Special District – September-October 2015

Rancho Simi Recreation & Park District Administration building - $7,500,000 Emerald Bay Service District Capital projects - $5,000,000

Feather River Recreation & Park District Refinancing - $3,000,000 East Niles Community Services District Land purchase - $285,000 Aromas Water District Solar installation - $280,000 Cuyama Valley Recreation District Tractor purchase - $28,000 If your agency has a financing need, now is the time to take advantage of low interest rates. Contact the CSDA Finance Corporation for a no-obligation quote today – 877.924.2732 or www.csdafinance.net.

Managing Risk [continued from page 33] For purposes of this section, “voluntary service without pay” shall include services performed by any person, who receives no remuneration other than meals, transportation, lodging, or reimbursement for incidental expenses. Volunteer/Unpaid Intern hours are tracked and reported with the annual payroll audit to determine the cost of coverage. Legal Update Torts – Vicarious Employer Liability – Going and Coming Rule Court of Appeal, Fourth Appellate District (September 10, 2014)

Under the theory of respondeat superior, employers are vicariously liable for tortious acts committed by employees during the course and scope of their employment. However, under the “going and coming” rule, employers are generally exempt from liability for tortious acts committed by employees while on their way to and from work because employees are said to be outside of the course and scope of employment during their daily commute. This case considered an exception to the going and coming rule, which occurs where the use of the car gives some incidental benefit to the employer. This case arises from these same facts as in the prior appeal on a summary judgment motion in Lobo v. Tamco (2010) 182 Cal.App.4th 297 (“Lobo I”). Deputy Sheriff Daniel Lobo (“Lobo”) was killed in 2005 when Luis Duay Del Rosario (“Del Rosario”) – while leaving the premises of Tamco, which manufactures steel bars for use in construction – turned into the path of Lobo and two other motorcycle deputies approaching with lights and sirens activated. Del Rosario, a 16-year employee of Tamco, was a metallurgist and the sole employee with the expertise necessary to determine

whether the company’s products were defective, according to the plaintiffs’ evidence. That specialty involved travel to customers’ facilities that occurred infrequently, so the company reimbursed Del Rosario for his mileage rather than provide him with a company car. On those infrequent occasions, he was thus required to use his own car. In Lobo I, Lobo’s widow and three daughters sued Tamco, but the company moved for summary judgment contending it was not vicariously liable for Lobo’s death. It argued that Del Rosario was not acting within the course and scope of his employment, but merely leaving work at the end of his work day, intending to go home, driving his personal vehicle. The trial court granted summary judgment in favor of Tamco, and plaintiffs appealed. On appeal in Lobo I, the Court of Appeal concluded that evidence that Del Rosario was required to drive home in his personal vehicle, and have it accessible at all times in case he needed to visit customers on short notice, raised a triable issue of fact, even if he did not have to use his car for work on the day in question. The Court of Appeal felt it was a triable issue of fact as whether there was still some incidental benefit to the employer. The Court of Appeal reversed summary judgment in favor of the defendant, Tamco, and remanded the matter for further proceedings in the trial court. Following Lobo I, trial was held solely on the issue of Tamco’s vicarious liability for the negligence of its employee, Del Rosario. At trial, one of the Tamco employees changed their testimony, stating that the employer gained no benefit from Del Rosario’s vehicle and that, to the contrary, it cost the company additional funds requiring mileage 36

reimbursement for two vehicles/ employee travels when Del Rosario used his vehicle. The jury found in favor of Tamco. Plaintiffs’ appealed, contending that based on the legal principles the Court enunciated in Lobo I, the evidence adduced at trial compelled a finding that Del Rosario was acting within the scope of his employment when the accident occurred. They also argued that the trial court erred in refusing a requested jury instruction. The Court of Appeal noted that in Lobo I¸ its denial of summary judgment was not based on a determination of Tamco’s liability as a matter of law. Rather, it was based on the possibility that a jury could conclude that even though Del Rosario was not required to use his vehicle on the day in question, the employer might still have obtained an “incidental benefit” by his having it available every day. At trial, the jury held that the evidence did not support a finding of such an incidental benefit, so the “going and coming” rule applied, and there could be no vicarious liability. Moreover, the Court of Appeal noted that the facts adduced at trial were different than at the time of the summary judgment motion, in that Del Rosario’s supervisor changed his testimony as to his being “required” to have his vehicle available. Based on the facts at trial, the verdict was supported, and there was no vicarious liability on the part of the employer. ©Low, Ball & Lynch 10/30/14

For questions or additional information, contact SDRMA Chief Risk Officer Dennis Timoney at 800.537.7790 or dtimoney@sdrma.org.

California Special Districts Association Districts Stronger Together

BOARD SECRETARY/CLERK Premiere Training for Board Secretaries/Clerks

October 18 – 20, 2015 • Lake Tahoe, California

Co-sponsored by the Special District Risk Management Authority California Special District – September-October 2015

[Whatâ&#x20AC;&#x2122;s so special]

Going batty

Nevada County Resource Conservation District Bats are literally creatures of legend and yet not many people really know the facts about them. Instead of being creatures to be feared, they are animals that are important and beneficial to our environment. Nevada County Resource Conservation District (NCRCD) holds a seminar specifically on Northern California Bats. During the course of the seminar, members of the public gain a better understanding of the small creatures, myths are debunked, and live bats are brought for viewing. California Special District asked NCRCD to tell us more about bats and their significance in the environment, and to explain why the seminar is important to the districtâ&#x20AC;&#x2122;s mission.

Why does NCRCD decide to hold a Northern California Bats seminar? Why is it relevant to your community? Bats benefit the agricultural industry in the U.S. to the tune of over $3.7 billion a year by providing free pest control as well as pollination for crops and fruit trees. The NCRCD is committed to public education regarding the environmental benefits of bats and dispelling fears and myths that can lead to the death of entire colonies. The Northern California Bats seminar is one of our most popular events. Our speaker, Corky Quirk from NorCal Bats (www.norcalbats.org), is a superb speaker as well as bat rehabilitator. She brings live rescued bats with her so participants can get a closer look at this fascinating and important species. These are education bats that have been too injured to be released back into the wild, making them a fantastic educational experience for Nevada County residents. Jan Blake Executive Director

Nevada County Resource Conservation District Established: January 4, 1944 Size: 882,238 acres Population: 98,000

What is taught during the seminar? • The types of bats found locally as well as their numbers around the U.S. and the world. • The harmful myths that surround these mammals. • The importance of bats in our environment. • What they eat, how they find and capture their food, where they live, and how they reproduce. Live, California native species bats are presented for viewing and discussion. All bats are certified as non-releasable by the California Department of Fish & Wildlife and the U.S. Department of Agriculture, as injury precludes them from surviving in the wild. The bats’ image is projected, via video camera, onto the wall for all to view.

What are the environmental benefits of bats? Bats are worth their weight in gold! We have over 90 lakes, streams, reservoirs, etc. in Nevada County which translates to a lot of mosquitoes during late spring and summer. One of the most common bats found in the Sierra Foothills is the Little Brown Bat (Myotis lucifugus). One four-inch Little Brown Bat alone can eat up to 1,000 mosquitoes in a single hour! What a benefit for humans! In addition, their pest control abilities benefit agriculture by eliminating damaging pests and they are essential pollinators and seed dispersers.

Location: Nevada County & Western Sierra County, California Website: www.ncrcd.org

What are the most common species of bats found in Northern California? • Brazilian (aka Mexican) Free-Tailed • California Myotis • Yuma Myotis • Western Red • Western Pipistrelle • Long-Eared Myotis • Townsend’s Long-Eared • Western Mastiff • Fringed Tailed In addition (most common in Nevada County): • Little Brown • Big Brown • Pallid • Silver-Haired • Hoary

Bats are actually very different from their reputation in pop culture. What are some of those differences? • Bats are not blind • Bats are not flying mice and are not even remotely

related to rodents • Bats do not get tangled in your hair-they’re just swooping down to a mosquito near your head • Bats are not dirty; they spend enormous amounts of time grooming their fur • Bats don’t ‘carry’ rabies; however, they are capable of catching the disease just like any other mammal

How does this seminar help fulfill your district’s mission? Our mission is to promote responsible resource management through education. Through our seminar series, we strive to assist landowners with their conservation concerns and to educate the public about our natural resources. The bat seminar fulfills that goal by offering information on pollinators, pest control, native species habitat (we offer bat houses and designs to build your own) and further education by promoting the Yolo Basin Foundation’s Bat Talk and Walk (www.yolobasin.org) where you can register to witness one of the largest colonies of Mexican free-tailed bats in California (250,000) emerge in large ribbons to hunt insects.

California Special District – September-October 2015

What are other seminars your district holds for residents? Although they change with interest, we offer or have offered: • Forest Health and Tree Diseases • Horse Property Management Field Day • Outsmarting the Drought • Forest Raptors of Nevada County (featuring ‘Buddy’ the Wolverine) • Raising Backyard Chickens • Attracting Wild Birds / Habitat • Effective Rodent Control • Pollinators – Natives vs. Honeybees • Pond Management • Rural Roadside Maintenance • How to Test Your Soil • Using Native Grasses in the Meadow, Pasture, and Landscape • Rural Property Management • Fire Ecology & Your Property • Wildlife Friendly Brush Control • Drought: Backyard to Backwoods • Backyard Bird Identification • Fruit Trees & Orchards • Landscaping with Natives • Water Wells & Pumps • Septic Systems • Birds of Prey • Raising Livestock/Grazing Practices • Four-Legged Pest Control • Weed Control on Your Property • All About Bees • All About Oak Trees • Composting & Manure Management • Planting for Pollinators • Organic Gardening – Preparing Foothill Soils for Gardening • Bark Beetles • Water Conservation Techniques • Hedgerows & Filter Strips • Vegetation Management with Goats • Pasture Management & Irrigation • Poisonous Plants to Livestock • Creeks on Your Property

ARCHITECTURE

[Business Directory]

RESPONSIVE CREATIVE SUSTAINABLE W W W . W YA R C H . C O M

Access Experts

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ACCOUNTING

CONSULTING

SPECIAL DISTRICT AUDITOR Bob Johnson, CPA “Experienced”

YOUR BOARD TRAINING SOURCE A cost-eﬀective service for board training and education

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Targeted training delivered weekly by email. 24/7 access to quality resources on our site. Free webinar/s for you or your Board. Direct consultation with expert Brent Ives.

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E-mail: robertwjohnsoncpagroup@gmail.com

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SPECIAL DISTRICT FINANCIAL SERVICES

Project Management

AUDIT, ACCOUNTING & OPEB CALCULATIONS

BI and Reporting

Budget Planning

Time and Expense Processing

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

SPECIAL DISTRICT

www.finley-cook.com

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FINANCIAL /INVESTMENTS

Accounting & Finance Karl Drexel, SDA

Specializing in Small Special Districts Let me help prepare your books for your auditor QuickBooks Proficient

(707) 527-5688 karl@kdmanagement.us

FINANCIAL PLANNING U T I L I T Y R AT E ST U D I E S E N E R GY CO N S U LT I N G BOND MARKETING BARTLE WELLS ASSOCIATES

Financing • Infrastructure Improvements • Buildings, Land & Equipment • Refinancing

I N DE PE N DE N T P U BL IC F I N A NC E A D V I S ORS

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HUMAN RESOURCES Public CHOOSE WITH CONFIDENCE.

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LEADERSHIP

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Special District Leadership Foundation

Get Recognized. Classification & Compensation Studies Staff and Executive Recruitment HR Audits and Compliance Organizational Assessments Performance Management

www.sdlf.org

(510) 658-5633

www.KoffAssociates.com

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Health | Property & Liability | Workers’ Compensation

LEGAL

Best Law Firm for Special Districts Proudly serving California Special Districts in all areas of:

Burke provides a wide array of legal services for Special Districts throughout California. General Counsel  Transactions  Litigation Personnel  Labor Negotiations  Training Environmental Issues  Construction Works

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- Employment Law - Labor Relations - Litigation - Retirement - Construction and Contracts - Wage and Hour - Management Training

Actuarial Services Safety and Loss Control Services Outsourced Risk Manager Insurance Coverage Reviews EPL Consulting and Training Compare JPA to Commercial Insurance Options

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OTHER

For over 25 years, Meyers Nave has practiced public law in California, combining in one firm general counsel services as well as the many specialties that public agencies need. Our readiness to help clients find creative solutions coupled with our extensive knowledge of local, state and federal laws allow us to cut to the core of our clients’ issues and deliver solid results. 800.464.3559 • www.meyersnave.com

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Offering Innovative Solutions for Special Districts for 35 Years (916) 983-8000 dmcmurchie@mcmurchie.com

California Special District – September-October 2015

408/374-0977 info@rauchcc.com www.rauchcc.com

Money Matters [continued from page 35] added fleet vehicles; and, (v) performance standards. These requirements vary by fleet size. To determine fleet size, sum the horsepower for each off-road vehicle and compare to the following: Fleet Size Category

Description

Small

Fleet or municipality <= 2,500 hp, or municipality fleet in low population county, captive attainment area fleet, or non-profit training center, regardless of total hp

Medium

Fleet with 2,501 to 5,000 hp

Large

Fleet with more than 5,000 hp, or all state and federal government fleets, regardless of total hp

Vehicles must be reported to CARB through the online reporting tool, Diesel Off-Road On-Line Reporting System (DOORS) at ssl.arb.ca.gov/ssldoors/doors_reporting/ doors_login.html or by paper copy. Each vehicle will then be assigned an Equipment Identification Number (EIN) and fleet owners must label each vehicle with the EIN within 30 days. The fleet is responsible for creating or purchasing the physical labels and applying them onto the vehicle. Specific labeling requirements are available on CARB’s website. All fleet owners must annually review and update information by March 1 as follows: • Large fleets - 2012 to 2023 • Medium fleets - 2016 to 2023 • Small fleets - 2018 to 2028.

The annual reports must include changes to the fleet, hour meter reading for low-use vehicles or vehicles used mostly for agriculture, and lastly the Responsible Official Affirmation of Reporting (ROAR) form. These may be submitted using DOORS. Effective since June 2008, all fleets must limit idling to five minutes, with an exception for vehicles that require idling to perform work (i.e. crane), vehicles being serviced, or vehicles waiting for work. Medium and large fleets must have an enforceable written idling policy. The regulation also restricts how fleets can add vehicles. Vehicles with a Tier 0 engine are prohibited. As of January 1, 2014, medium and large fleets can only add vehicles with a Tier 2 or higher level engine. This requirement applies to small fleets beginning in 2016. Starting in 2018, medium or large fleets must only add vehicles with Tier 3 engines or higher; small fleets are held to this standard starting in 2023. Starting July 1, 2014 for large fleets, January 1, 2017 for medium fleets, and January 1, 2019 for small fleets, a fleet must demonstrate that it has met certain performance requirements. By each of the deadlines, fleets must show either: (i) they meet the average target for that year or (ii) they satisfy the BACT requirements. The fleet average index is an indicator of the fleet’s overall emissions rate, and the BACT requires the fleet to either turnover vehicles4 or install a Verified Diesel Emission Control Strategy on a certain percentage of its total fleet horsepower.

Bythe

Numb3rs

Jackson DeMarco Tidus & Peckenpaugh is a full-service law firm, with robust experience in the areas of air quality, climate change, and energy. Please visit our website at www.jdtplaw.com. 1. A Low Population County (LPC) is one of the following: Alpine, Amador, Calaveras, Colusa, Del Norte, Glenn, Inyo, Lake, Lassen, Mariposa, Mendocino, Modoc, Mono, Nevada, Plumas, San Benito, Sierra, Siskiyou, Sutter, Tehama, Trinity, Tuolumne, and Yuba Counties.

35 million: Tons of waste that head to California landfills annually

2. NOx is a precursor to Ozone, a pollutant regulated by the Federal and California Clean Air Acts. 3. Emergency operations vehicles, snow removal vehicles, low-use vehicles (used less than 200 hours per year), and vehicles used mostly for agricultural purposes are exempt from the regulation’s performance requirements but are still subject to the reporting and labeling requirements. 4. Turnover includes designating the vehicle as permanent low use.

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!

Special District Risk Management Authority

Trusted Risk Management

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PRSRT STD U.S. Postage PAID Permit No. 316 Sacramento, CA

157907CWW_CSDA-PrintAd_0731_Linop.pdf

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