California Special District by California Special Districts Association

CA SPECIAL

DISTRICT Publication of the California Special Districts Association

Volume 12, Issue 5, Sept - Oct 2017

FEATURE New Public Works Rules Present Opportunity, Pitfalls, for Special Districts

INTERVIEW Strengthening Your Board Interview with Ann Macfarlane, PRP

For 75 years, Nossaman has partnered with public, private, and governmental agencies to provide a unique perspective on the law. Nossaman is a full service public agency law firm based in California, proudly serving as CSDA's Bond Counsel, and also providing counsel to special districts in areas such as Public Finance, Public Agency Law, Water, Environmental, Land Use, Infrastructure, Employment, Insurance Recovery, Public Policy, and Eminent Domain.

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

nossaman.com

Volume 12, Issue 5 • September - October 2017

Contents

Strengthening Your Board Interview with Ann Macfarlane, PRP

New Public Works Rules Present Opportunity, Pitfalls, for Special Districts

Solutions & Innovations Inland Empire RCD Connecting Local Farmers and LowIncome Families

4 CEO’s Message Higher Logic article

10 Ask the Experts Policy and Procedure Writing

5 Professional Development CSDA Annual Conference & Exhibitor Showcase sponsors; Professional Development Calendar

6 CSDA News Districts Make the Difference Video Contest, 2017 CSDA Board Election Results 8 Grassroots Action Update LAFCO Representation; California Public Records Act; Take Action

What’s so Special Mindful Living Everyday Keeps the Doctor Away

30 Legal Brief Ethics in Government, Not a Legal Fiction for California Officials

Movers and Shakers

14 In Brief Orange County Cemetery District Offers Unique Historical Tour; Monte Vista Water District Offers Customers Free Water Tracking App; Sacramento Area Recreation & Park District Partners for Court Upgrade 24 Community Connections Governments Engaging Youth: Preparing the Next Generation of Local Leaders

34 Managing Risk Recent Court Decisions: Public Agencies and the Recreational Trail Immunity; Independent Contractors & Consultants Can be Subject to Conflict of Interest Laws; and more 38 Money Matters Bond Accountability: How to Make it an Everyday Thing

Printed on recycled paper. California Special District – September-October 2017

CA SPECIAL

Officers Vincent Ferrante, President Moss Landing Harbor District

ceo’s message

Greg Orsini, Vice President McKinleyville Community Services District Arlene Schafer, Secretary Costa Mesa Sanitary District Joel Bauer, SDA, Treasurer West Side Cemetery District William Nelson, Past President Orange County Cemetery District

Members of the Board Stanley Caldwell, Mt. View Sanitary District Ryan Clausnitzer, Alameda County Mosquito Abatement District Ralph Emerson, Garberville Sanitary District Jeff Hodge, Santa Ynez Community Services District Peter Kampa, SDA, Saddle Creek Community Services District Jo MacKenzie, Vista Irrigation District Elaine Magner, Pleasant Valley Recreation & Park District Noelle Mattock, El Dorado Hills Community Services District Sandi Miller, SDA, Selma Cemetery District Ginger Root, Country Club Sanitary District Timothy Ruiz, P.E., East Niles Community Services District Fred Ryness, Burney Water District Robert Silano, Menlo Park Fire Protection 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, Professional Development Coordinator Marcus Detwiler, Legislative Assistant Rylan Gervase, Legislative Representative Dillon Gibbons, Legislative Representative Abi Hague, Member Services Representative Colleen Haley, Public Affairs Field Coordinator Mustafa Hessabi, Legislative Analyst Beth Hummel, Executive Assistant Christina Lokke, Senior Legislative Representative Charlotte Lowe, Editor, Communications Specialist Steven Nascimento, Public Affairs Field Coordinator Anna Palmer, Member Services Specialist Chris Palmer, Public Affairs Field Coordinator Marina Servantez, Professional Development Assistant Tatiana Stewart, Public Affairs Specialist Cassandra Strawn, Senior Member Services Specialist Dane Wadlé, Public Affairs Field Coordinator James Wilfong, Senior Designer For editorial inquiries, contact Charlotte Lowe at 877.924.2732 or charlottel@csda.net. For advertising inquiries, contact Diana Granger, Granger Marketing Works, at (530) 642-0111 or granger@cwo.com. 1112 I Street, Suite 200 Sacramento, CA 95814 t: 916.442.7887 f: 916.442.7889 toll-free: 877.924.2732 www.csda.net A proud California Special Districts Alliance partner

Building Community & Value at CSDA Over the years, we’ve found that one of the best ways for individuals at districts to learn is through each other. This goes for district staff and board members. As a result, CSDA has embarked on an aggressive path to invest in and leverage technology to establish a platform exclusively for CSDA members that will deliver a variety of CSDA member communities...online. We know CSDA members can connect with the idea of community because, after all, it’s what they are all about as they work to deliver essential services throughout California. However, there was something missing. Our members, special districts, also needed a place to connect and engage within their own respective ‘community’. Somewhere that staff and board members from districts of all types and sizes could interact.

Our members, special districts, also needed a place to connect and engage within their own respective ‘community’. Somewhere that staff and board members from districts of all types and sizes could interact.

Neil McCormick

I’m pleased to announce the creation of CSDA Communities! An online community platform where staff and board members from CSDA member agencies will: Get Questions Answered – on collaborative discussion boards where others with knowledge and experience in your line of work provide thoughtful insight. Share Ideas – through timely and relevant discussion topics. Connect – through peer-to-peer interactions where members can build networking and mentoring relationships with individuals in the same role, area, and/or type of district. Additional features, will include resource libraries, customized subscriptions, enhanced profile capabilities, tailored content based on user’s interests, and much more! I’m extremely excited about this new member benefit and believe it will further enhance our member’s ability to stay current and provide tools to make them even more efficient and effective in delivering services to constituents. This message serves as a sneak peek of what’s to come with CSDA Communities which will be a major component of a complete upgrade to CSDA’s website in the coming months and further enhanced throughout 2018. Be sure to watch your emails for additional information as the new CSDA Communities platform launches.

Highlight

annual conference 2017 CSDA Annual Conference and Exhibitor Showcase September 25-28, 2017 • Monterey, California

Thank you to these generous sponsors for their support of the 2017 CSDA Annual Conference: • Bank of the West • Best Best & Krieger, LLP • BHI Management Consulting • BNY Mellon Trust Company, N.A. • Brandis Tallman, LLC • Burke, Williams & Sorensen, LLP • California Special Districts Alliance • CalTRUST • CSDA Finance Corporation • CV Strategies • David Taussig & Associates, Inc. • Jarvis, Fay, Doporto & Gibson, LLP • Kronick, Moskovitz, Tiedemann & Girard • Liebert Cassidy Whitmore • McMurchie Law • Meyers Nave • Nossaman, LLP • NovusAGENDA • Probolosky Research • Richards, Watson & Gershon • Special District Leadership Foundation • Special District Risk Management Authority • Umpqua Bank • U.S. Communities • Wells Fargo Bank • Zions Bank

October October 11

WEBINAR

CalPERS-Actuarial Reports and Trends

October 22-24

CONFERENCE

2017 Board Secretary/Clerk Conference & Certificate Program, Garden Grove

November November 1

WORKSHOP

Understanding the Brown Act, Oakland

November 8

WORKSHOP

Understanding the Brown Act, Stockton

November 9

WEBINAR

Required Ethics AB 1234 Compliance Training

Save these Dates for Other Important Conferences! Special District Board Secretary/Clerk Conference

October 22 - 24, 2017 - Anaheim Special District Leadership Academy Conference

• February 4 - 7, 2018 - La Quinta • April 15 - 18, 2018 - Monterey • July 8 - 11, 2018 - Napa Special Districts Legislative Days

May 15 - 16, 2018 - Sacramento General Manager Leadership Summit

June 24 - 26, 2018 - Lake Tahoe

California Special District – September-October 2017

CSDA NEWS 2017 CSDA Board Election Results

t s e t n cino2,000

ship chol ar $2,000 s arship 1st Placel o h c hip $1,000 s hol ars 2nd Place$500 sc 3rd Place-

Deadline

Oct. 20 2017

Congratulations to the following individuals who were recently elected to the CSDA Board: Northern Network, Seat C, 2018-2020 term

Fred Ryness Burney Water District

Sierra Network, Seat C, 2018-2020 term

Pete Kampa, SDA Saddle Creek Community Services District Bay Area Network, Seat A, 2016-2018 term

2017 Student Video Contest is Underway $3,500 in scholarship money is up for grabs

(filling remainder of term left by vacancy) Robert Silano Menlo Park Fire Protection District

Monday, August 28, CSDA launched the 2017 Student Video Contest where students are challenged to create a video that shows how Districts Make the Difference in California.

Stanley Caldwell Mt. View Sanitary District

The 2017 Student Video Contest is part of the Districts Make the Difference public outreach campaign and aims at increasing public awareness and understanding of special districts. Do you know a student who may be interested? Do you know a teacher, principal, superintendent, or school board member that could help promote the contest? Spread the word! There is still time for students to create a 60-second video and enter the competition at www.DistrictsMaketheDifference.org/contest, but hurry! The application period ends Friday, October 20 at 5:00 p.m.

Bay Area Network, Seat C, 2018-2020 term

Central Network, Seat C, 2018-2020 term

Sandi Miller, SDA Selma Cemetery District

Coastal Network, Seat C, 2018-2020 term

Vincent Ferrante Moss Landing Harbor District

Southern Network, Seat C, 2018-2020 term

After all entries are received, CSDA officials will select the top five finalists and feature those videos on the Districts Make the Difference website. The public will then have the opportunity to vote for their favorite video and the top three vote-winners will receive scholarship prizes. In December, we will award $2,000 to the first place winner, $1,000 to the second place winner, and $500 to the third place winner.

Arlene Schafer Costa Mesa Sanitary District

Watch the 2016 finalistsâ&#x20AC;&#x2122; videos, get additional information, and read the official contest rules at www.DistrictsMaketheDifference.org/contest.

If you have any questions on the CSDA Board election process please contact Beth Hummel, executive assistant, at (877) 924-2732 or bethh@csda.net. â&#x20AC;&#x192;

MAKE THE

The 18-member board, consisting of three directors from six networks in California, is elected by mail.

update

Autumn is here and the 2017 Interim Recess has begun! On September 15, California State Legislators left Sacramento to spend the remainder of the year in their district offices; but before the doors closed at the State Capitol, CSDA secured several victories on new measures impacting special districts.

Judiciary Committee to now focus solely on bad acting public agencies that “knowingly and willfully” violate the CPRA. In meeting with Assemblymember Bonta’s office, it was clear that the volume of letters of opposition had a significant impact on our ability to achieve the necessary amendments. Thank you to all the districts that sent in opposition letters and helped make Districts Stronger Together. At the time of printing, many CSDA priority bills were still sitting on the Governor’s desk waiting to be signed. Lookout for the NovemberDecember issue of the magazine to read an in-depth breakdown on new legislation affecting special districts.

LAFCO Representation

One victory for special districts was the passage of CSDA-sponsored legislation in the form of Assembly Bill 979, authored by Assemblymember Tom Lackey (pictured). AB 979 simplifies the process for special districts to gain representation on local agency formation commissions (LAFCOs), while maintaining local control. Thanks to CSDA efforts, and the co-sponsorship of the California Association of Local Agency Formation Commissions, this bill received bipartisan support from inception. The bill is currently sitting on the Governor’s desk and is expected to be signed any day. On behalf of CSDA, we would like to thank Assemblymember Lackey for his authorship of this bill and his dedication to improving special district governance. California Public Records Act

Take Action While the California State Legislature has adjourned for the year, there is still much work to be done! Here are ways your district can get involved with CSDA’s grassroots efforts this fall: • Attend the Closing Breakfast at CSDA Annual Conference Thursday, September 28, from 8:30 a.m. to 10:30 a.m., CSDA’s lobbying team will report on new legislation and legislative issues impacting special districts in 2017. • Get to Know your State Representatives in the Community Attend your local legislators’ community events and invite them to yours. Find your state representatives at http:// findyourrep.legislature.ca.gov/. • Showoff Your District Host your local legislators and their staff for tours of your district facilitates. •

CSDA was not only successful in sponsoring meaningful legislation, but was also instrumental in amending and improving potentially harmful legislation. In July, we issued a call to action from our membership to oppose Assembly Bill 1479 (Bonta) which would have put new burdens on local agencies by including additional requirements in processing California Public Records Act (CPRA) requests. Thanks to nearly 60 opposition letters submitted by special districts, Assemblymember Bonta agreed to amend AB 1479 in the Senate

Join the Districts Make the Difference Campaign MAKE Download our campaign THE materials from the ToolKit to assist your efforts in educating local legislators and the public at large about special districts. Available downloads include videos, factsheets, posters, infographics, and more! Visit www.DistrictsMaketheDifference.org.

“We have a great personal relationship with Umpqua, and that is absolutely in alignment with who we are and how we do business.” TERESA MURRAY Photo: Christine Alward

Chief Executive Director Sacramento Regional Fire/EMS Communications Center (SRFECC)

THE POWER OF PARTNERSHIP When the SRFECC met Umpqua, they weren’t looking for a new bank. But Umpqua’s collaborative approach and unwavering dedication to go above and beyond was exactly what had been missing. A natural partnership was formed and a custom collection of products and solutions were selected for the SRFECC’s unique financial needs.

This successful partnership with Teresa Murray and the SRFECC is one of many. Umpqua combines high-level expertise in the public finance industry with outstanding customer service you can rely on. Umpqua is right there with you, helping you grow every step of the way.

It all starts with a conversation, so let’s see what we can build together. Vanessa Ryan Commercial Banking Relationship Manager 916-724-1214 vanessaryan@umpquabank.com

Member FDIC Equal Housing Lender

SBA Preferred Lender

California Special District – September-October 2017

Trevor Mael Commercial Banking Relationship Manager 916-774-3921 trevormael@umpquabank.com

Dean Stephens Commercial Banking Manager 916-774-3937 deanstephens@umpquabank.com

CBC17.437

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

This article is not intended to serve as legal advice. If you have further questions about these matters, you should consult with an attorney.

Ask theExperts Policy and Procedure Writing By Jordan Peabody, CPS HR Consulting

Most organizations find it challenging to write “good” policies. While every agency knows how crucial effective policies are, few people feel equipped to write them. And – if poorly written – policies become the least popular item to read at the office. But every organization needs policies. Well-written policies explain critical management-level expectations. They establish consistent rules for workrelated activities. They clearly define roles and responsibilities. And they protect against risk and liability. 10

BOARD SECRETARY/CLERK October 22-24, 2017 Pre-Conference Workshop

October 22, 2017 - 9:00 a.m.– 4:00 p.m. Reader-Friendly Writing that Works: Policies and Meeting Minutes

*Includes a copy of the book How to Write Policies, Procedures, and Task Outlines Returning Attendee SessioN

October 23, 2017 Policies, Procedures, and Task Lists – What’s the Difference?

LOOK!

Like anything else you write for work, policies need a clear target audience. Some policies may be written to CYA – “Cover Your Agency” – for things like accreditation or auditing.

Producing useful organizational policy doesn’t have to be tough. These three simple principles will help you develop more readable, useable office rules and regulations. 1. Know your audience. Like anything else you write for work, policies need a clear target audience. Some policies may be written to CYA – “Cover Your Agency” – for things like accreditation or auditing. But the bulk of your policies should be directed at your staff – especially new hires. Employees need clearly defined rules and expectations to guide them as they learn their new role and responsibilities and work. 2. Express your policy statements with everyday words. Since your target audience – new employees – may not be familiar with a lot of agency jargon, it’s important to use words anyone can recognize. On average, American adults read at an eighth-grade level. Too often we make policies hard to read by filling them with language that creates “drag.”

3. Design policies to be skimmed. Because all workplace readers have too much to read and too little time, “good” policies should be written so anyone can quickly scan them without having to read every word. Doing so requires thoughtful design of your key points.

• Remove any words or ideas that distract from your main point(s). Doing so will make the main policy points stand out so readers can’t miss them. Getting rid of useless detail reduces the risk of policies that can be misinterpreted. • Keep your paragraphs and sentences short. Readers skim better over short distances. Keep your average paragraph to between three and five lines. And keep your typical sentence under 20 words. • List more. While long paragraphs take more time to read, listed information is much easier to scan and understand. When you write, ask yourself: Would this read better in a paragraph or in a list?

CPS HR Consulting is a selfsupporting public agency providing a full range of integrated HR solutions to government and nonprofit clients across the country. Our strategic approach to increasing the effectiveness of human resources results in improved organizational performance for our clients. We have deep expertise and unmatched perspective in guiding our clients in the areas of organizational strategy, recruitment and selection, classification and compensation, and training and development. Learn more at www.cpshr.us. For additional resources on policy and procedure writing, see the CSDA Sample Policy Handbook, available to order online at csda.net.

CSDA 2017 Ad – #3 1/4 Page Horizontal, B/W

To create easy-to-read policies, avoid needless “big” words and use mostly simple ones. A good rule of thumb is to only use about ten percent “big” words (of three-syllables or more) when writing policy. That means for every 100 words you write, only ten of those words should contain more than two syllables. Instead of writing “Employees must utilize these established regulations,” write “Staff must follow these rules.”

California Special District – September-October 2017

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

California CAD Solutions – Digital mapping solutions. CalTRUST – Pooled investment accounts. Cintas – First aid and safety products. Employee Relations – Employment background investigations, drug testing and employee hotline services. Streamline – Website design system and transparency tools. Umpqua Bank – CSDA branded purchasing card program designed for special districts. U.S. Communities -– Discounted purchasing forum for office supplies, technology products and more. Utility Cost Management - Utility bill audits and energy efficient advisory services.

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

MOVERS & SHAKERS

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

Brian Helmick has been appointed to the position of Interim Fire Chief for the East Contra Costa Fire Protection District (ECCFPD). ECCFPD is a rural funded fire district that protects approximately 249 square miles and protects over 114,000 residents.

Valerie Minton has been named executive director of the Sonoma Resource Conservation District. Valerie has over 11 years’ experience in the field of natural resources and has developed a strong background in ecology, water quality, agricultural conservation, and public policy.

The El Toro Water District, Port San Luis Harbor District and the West Valley Water District have all been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada for their Comprehensive Annual Financial Reports.

The East Valley Water District received the Jewel of the Community Award from the Highland Senior Center for its leadership and communication with the community. Boasting a membership of 3,200, the Highland Senior Center relies on its 130 volunteers for many services to Highland, San Bernardino, Redlands, and Yucaipa.

The Santa Clara Valley Water District’s Board of Directors selected Norma Camacho as the chief executive officer of the water district. Camacho has served as interim CEO since March 2016. She currently serves on the Board of Directors for the California Urban Water Agencies, WateReuse, Bay Area Council, the Silicon Valley Organization, and San Jose Evergreen Community College Foundation. She is also a member of the Santa Clara City Managers’ Association and the Bay Area Water Agencies Coalition.

The Inland Empire Utilities Agency is proud to announce that its Contracts and Facilities Services Department is the recipient of its 14th Achievement of Excellence in Procurement Award, which recognizes organizational excellence in procurement. The award is achieved by those organizations that demonstrate excellence in procurement by obtaining a high score on a rating of standardized criteria.

Brian Lockwood, P.G., C.Hg., is the new general manager at the Pajaro Valley Water Management Agency adjacent to the Monterey Bay in Central California. Prior to becoming the general manager, he served as the interim general manager, and as senior water resources hydrologist. He is currently serving on Sustainable Groundwater Management Act advisory panel administered by the California Department of Water Resources, the Santa Cruz County Commission on the Environment, two technical advisory committees, and on the Board of Directors of the Rotary Club of Freedom. California Special District – September-October 2017

With last month’s departure of the Indian Wells Valley Water District’s (IWVWD) Chief Financial Officer Jennifer Keep, Tyrell Staheli has stepped down from his job as city finance director to fill her position. “We’re very pleased to have him on board with his qualifications and experience,” said IWVWD General Manager Don Zdeba. The Vista Fire Protection Department has received the American Heart Association’s Mission: Lifeline® EMS Bronze Award for applying quality improvement measures for the treatment of patients who experience severe heart attacks. The Vista Fire Department serves the residents of the City of Vista and the Vista Fire Protection District.

In Brief The intent of the tour was to reveal the rich heritage and history represented on the grounds and to educate those attending on how these early pioneers, community leaders, immigrants, politicians and veterans from the War of 1812 and the Civil War helped to shape not only the City of Anaheim, but Orange County and the nation.

Orange County Cemetery District Offers Unique Historical Tour In July 1867, the tiny body of a young infant boy was quietly laid to rest. The child was the son of Augustus and Petra Ontiveros Langenberger. Augustus owned a general mercantile store and was the first merchant in the City of Anaheim’s history. Only two months later, Petra Langenberger also grew ill and passed away. These were the first two burials to take place at Anaheim Cemetery. One hundred and fifty years later on the evening of July 9, 2017 approximately 400 hundred people gathered outside the gates of Anaheim Cemetery to embark on a journey into the past to learn, not only about the cemetery’s long history, but to also remember those interred within its gates. It was Anaheim Cemetery’s inaugural Candlelight Historical Tour, commemorating 150 years of service to the community. The intent of the tour was to reveal the rich heritage and history represented on the grounds

and to educate those attending on how these early pioneers, community leaders, immigrants, politicians and veterans from the War of 1812 and the Civil War helped to shape not only the City of Anaheim, but Orange County and the nation. The tours began at 8:00 pm as darkness fell. Groups of approximately 20 people were greeted by a docent, who gave a brief history of the cemetery and passed out glowsticks, mini-flashlights and pamphlets highlighting points of interest on the grounds. The road that loops around the cemetery was illuminated by hundreds of candle lanterns and as groups walked the loop they stopped at five different stations where re-enactors dressed in period costumes related interesting and colorful stories about the people and families interred nearby. The beautiful and historical structures in the cemetery were also bathed in light including: the four private family mausoleums; several notable monuments; the beautiful Gateway Arch that once served as the cemetery’s

main entrance; a rare grove of Dawn Redwood Trees that mark the final resting place of an untold number of Chinese immigrants; and the magnificent Community Mausoleum. Constructed in 1914 the Community Mausoleum is the oldest public mausoleum on the West Coast and holds 300 vaults with an interior lined entirely in marble. Tours concluded at the Cemetery Office where internationally-known mariachi singer Sean Oliu and Jerry Gutierrez serenaded attendees with a miniconcert of mariachi music. Sean Oliu’s presence at the cemetery held a special significance as he is a direct descendant of Petra Ontiveros and Augustus Langenberger. Sean is also the founder of “Kids Giving Back” a nonprofit that has raised thousands of dollars to support orchestra programs in Anaheim schools. Sean is a wonderful example of how history lives on through all of us.

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 Charlotte Lowe, editor at charlottel@csda.net or (877) 924-2732.

Monte Vista Water District Offers Customers Free Water Tracking App Monte Vista Water District (MVWD) has launched a cutting-edge tool to help customers track their past water consumption anytime, anywhere. Dropcountr, a web and mobile app, has been downloaded by hundreds of district customers since its release, and is now available in both English and Spanish. Customers can download the free Dropcountr app directly from the Apple or Android online app stores, or by visiting www.dropcountr.com. In addition to water usage, customers can use the app to compare their consumption to similar households in their community, connect with utility alerts and rebates, and receive tailored water-saving tips. “We are excited about this new tool that provides direct assistance to our customers,” said Board President Sandra Rose. “The Dropcountr portal gives users a unique opportunity to be water smart, and we hope having access to this information empowers them to use water efficiently all year round.” Dropcountr shows users their water consumption in terms they understand – gallons, not hundreds of cubic feet. Additionally, customers can see how much water they used this year compared to previous years through Dropcountr’s customer-friendly interface. This service is made available to MVWD residents as part of a pilot program for water agencies in the Santa Ana River Watershed. Funding is provided through the Santa Ana Watershed Project Authority’s Emergency Drought Grant Program. For more information about Dropcountr or other free water saving programs offered to MVWD customers, visit www.mvwd.org or call 909-267-2130.

California Special District – September-October 2017

Sacramento Area Recreation & Park District Partners for Court Upgrade The basketball court at Madera Park, suffering from significant wear and tear, was given a complete makeover and unveiled with an official ribbon cutting ceremony July 19. The $30,000 overhaul was made possible through a partnership between the Burlingame, CA-based Good Tidings Foundation, the Sacramento Kings and the Kings Foundation and Kaiser Permanente, with support from the city and Sunrise Recreation and Park District. The primary goal of the project and the overall mission of Good Tidings is to strengthen community pride by promoting healthy, active lifestyles for youth and making it possible for kids to play sports on goodquality fields and courts. Throngs of local kids, Kings’ officials, including their mascot Slamson the Lion, representatives from the County of Sacramento, the city, Good Tidings and Kaiser Permanente were on hand for the ribbon-cutting ceremony, officially opening the new, brilliantly painted purple and gray court, sporting a breakaway hoop and pro-style turf featuring a large Kings logo and those of the project’s supporters. Following the opening of the new Madera Court, the Kings offered a free basketball clinic for all the kids in attendance. The clinic was led by former Kings player and Junior Kings Coach, Henry Turner, with a little help, naturally, from Slamson.

Sources: Orange County Cemetery District, Monte Vista Water District, Citrus Heights Messenger.

Strengthening Your Board Interview with Ann Macfarlane, PRP Ann Macfarlane studied Russian and Ancient Greek at the University of California, Santa Cruz. She was awarded a Marshall Scholarship by the British government to earn a B.A./M.A. degree from Cambridge University, England and began her career as a diplomat in the U.S. Foreign Service. Ann also served as Executive Director of the National Association of Judiciary Interpreters and Translators before becoming a partner with Andrew Estep as an owner of ERGA, Inc., an association management company, from 2007 to 2014. Ann and Andrew developed “Jurassic Parliament” as a way of helping people run productive meetings. Their approach makes Robert’s Rules of Order understandable, enjoyable, and easy to learn. They published Mastering Council Meetings: A guidebook for elected officials and local governments in 2013. California Special District asked Ann about her experience working with different boards, areas of governance, and how to make meetings most efficient. Tell us about your experience working with board meetings and governance.

Assembly Member Rich Gordon

I was fortunate enough to be a member of the Pioneer Class at the University of California Santa Cruz, and was elected a Selectman my senior year. We were trying to take the best from the New England Town Meeting tradition. That was an early start to my interest in governance! I’ve been involved ever since, including serving as President of a 10,000-member national organization, the American Translators Association, when I was a Russian translator.

When you see how rare effective citizen governance is in the world at large, you have to thank our founders and our society for how well things go.

How has your experience living and working around the world shaped how you approach working with different agencies and boards now? Gratitude, gratitude, gratitude. When you see how rare effective citizen governance is in the world at large, you have to thank our founders and our society for how well things go. Local government is a miracle, in my opinion.

What are some challenges small agencies face when it comes to board meetings in comparison with a much larger agency? In my experience it is easy for board directors of small agencies to get caught in the policy vs. implementation trap. The lines are not as clear when staff are few, and it’s tempting for board members to put their fingers in the pie. Small agencies also have fewer resources, and may find it hard to finance necessary training. Finally, they are often too chummy with the public at their meetings.

What are the most important takeaways from Robert’s Rules of Order that universally apply to agency board meetings? • “One subject at a time” is crucial. Some boards spent over half their time off-topic. • “No interrupting” is another vital point. • Finally, there is the most-neglected rule in all of Robert’s Rules of Order: “No one may speak a second time until everyone who wishes to do so has spoken once.”

When it comes to different personalities and communication styles for individuals working together on a board, what are a few tips we can keep in mind to help with maintaining an efficient meeting and not stray off track? The biggest personality/communication hurdle, to my mind, is encouraging introverts to speak up, and discouraging extroverts from dominating the discussion. The rule about not speaking a second time until everyone else has had their chance is an effective way of tackling this. You can also use the “round robin,” going around the table and giving everyone a chance to speak in turn—but this requires discipline!

California Special District – September-October 2017

I go wild when board members fail to read their packets. This is a betrayal of their duty, in my opinion. You can’t address the complex technical, legal and operational issues facing an agency if you won’t do the homework. Some board members get elected with a single-issue agenda, and fail to understand that governance must involve compromise. This can be poisonous. Finally, discussion has got to be about the issues and not about personalities.

Continued on page 18

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In your opinion, what are the top three to five things for running an efficient meeting? • Preparing a realistic agenda that includes suggested time intervals makes a huge difference. • The chair has to be strict in applying whatever rules the group has decided on. Good procedure is essential for an efficient meeting, but some chairs are reluctant to enforce it. • At the same time, it is critical for everyone to understand that the chair of the meeting is ultimately the servant of the group. Too many chairs—and directors!— treat the chair like the “boss.”

From your experience in observing how different boards work together, what are a few challenges that seem to be commonplace and how would you recommend overcoming them?

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Strengthening Your Board [continued] BOARD SECRETARY/CLERK

Special district board meetings in California are open to the public per The Ralph M. Brown Act. Why is it so important for the board to run a smooth and effective meeting with members of the community present? Members of the community are a board’s constituency and its supporters. If they see directors quarreling among themselves, failing to address tough issues, and wasting time at meetings, they will lose confidence in the board and the district. Rightly so—a dysfunctional board can’t address the real issues because it’s all caught up in emotions. This can have consequences when the next levy or tax time comes around.

What can attendees of your general session expect to take away? We’ll cover basic principles for an effective meeting, simple rules of good order that are easy to apply, the six types of remark that are unacceptable under Robert’s Rules of Order, and the right way to control a meeting. I’m looking forward to sharing information that has been proven to make a positive difference for public board meetings—especially in my native state! My ancestor jumped ship in Los Angeles in Mexican days, and I’m proud to be a fifth-generation Californian.

October 22-24, 2017 General Session

October 23, 2017 - 8:30 – 9:45 a.m. How to Strengthen Your Board’s DecisionMaking Process Returning Attendee Session:

October 23, 2017 What Am I Doing Here? The Role of the Clerk and Meeting Minutes

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New Public Works Rules Present Opportunity, Pitfalls, for Special Districts By Rylan Gervase, CSDA Legislative Representative

In the flurry of activity that a legislative deadline always brings, the California Legislature passed significant changes to public works law as a part of next year’s budget. This year’s changes were routed through a budget trailer bill, a process known for attaching controversial policy changes to budget spending.

The Department conducted an aggressive outreach campaign to public agencies and contractors for feedback on the program. The Department found that compliance with the $1,000 registration threshold was difficult, especially for smaller and rural agencies. Many found their already small pool of contractors were uninterested in filing the necessary paperwork and paying the fees to compete for small public contracts. With this feedback in mind, the Department drafted SB 96 to offer public agencies both a carrot and stick to increase participation in the contractor registration program.

This year’s changes were slipped into SB 96, a bill that contained a host of other changes from authorizing construction of a veteran’s cemetery in Southern California to changing judicial compensation. Retroactive changes to the recall process proved to be the most controversial and are currently being litigated in court. SB 96 raises the exemption for using contractors that are not registered with the Department of Industrial Relations. Districts are no longer required to hire department registered contractors or file a PWC-100 form for projects under $25,000 for new projects and under $15,000 for maintenance projects. The bill also raises the annual registration fee for contractors from $300 to $400.

SB 96 also includes penalties for public agencies that fail to comply with the requirements of the contractor registration program. Districts that use unregistered contractors on projects when required to can be fined $100 per day, up to $10,000. Additionally, any district that willfully violates the provisions of the law more than twice in a calendar year can lose eligibility for state funding for a year.

California is the sixth state in the country to implement contractor registration laws. The program was first established under SB 854 in 2014 as a way of enforcing prevailing wage requirements. According to Eric Rood, Assistant Labor Commissioner for the Department of Industrial Relations (Department), the program established by SB 854 fell short in a few ways. “Many agencies, especially in rural areas, were continuing to hire unregistered contractors,” says Rood. “The law had no teeth to enforce the registration requirement”.

So, should districts expect the Department to be looking over their shoulders with their aggressive new enforcement tools? “The Department will be looking at compliance with a lens of good faith,” says Rood. Districts that are proactively seeking to comply with the law have little to fear. Even if a citation is made, districts

“Department investigations are driven by complaints,” says Deborah Wilder, a public works attorney and President of Contractor Compliance and Monitoring, Inc. Wilder raised the liability of district for subcontractors and sub tier subcontractors as a second issue that the law is silent on. SB 96 states that a district that “permits an unregistered contractor or subcontractor to engage in the performance of any public work,” may be subject to fines of up to $10,000. “Frequently an agency may be aware of what subcontractors are being employed by the general contractor on a project, let alone what additional sub tier subcontractors are employed.” It remains to be seen whether the Department will enforce fines against districts whose contractors and subcontractors have employed unregistered subcontractors, regardless of the district’s knowledge.

have a right to due process via a hearing and an appeal process set up in statue. Rood says the Department is focused on going after the bad actors who blow off the law. “Department investigations are driven by complaints,” says Deborah Wilder, a public works attorney and President of Contractor Compliance and Monitoring, Inc. “The Department does not have the staff to monitor compliance with the contractor registration requirements or verify the information provided by districts on the PWC-100 unless necessitated by a complaint.” Wilder said the revisions to the law open up new questions that need to be clarified by the Department. Districts are now required to file a PWC-100 within 30 days of the award of a contractor, but no later than the first day in which a contractor has workers employed upon the public work. Occasionally a district will need to perform emergency work, whether it’s a broken pipe or a flooded roadway. The new statute offers no protection for a district that by circumstance is unable to file a PWC-100 before starting emergency construction or repair. According to a strict reading of the statute, the Department’s fines still apply.

Special districts have mostly reacted positively to the changes brought by SB 96 to the contractor registration program. The new law will mean many will have an easier time securing contractors for small projects and will have to file less paperwork with the state. Wilder says that districts must be wary of the potential pitfalls of the new legislation. “It is critical for districts to educate themselves and their staff on the new requirements,” says Wilder. “The best to be proactive about doing this is to get involved with their trade associations.”

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California Special District â&#x20AC;&#x201C; September-October 2017

[Community Connections]

Governments Engaging Youth:

Preparing the Next Generation of Local Leaders From the Institute for Local Government look at educating younger constituents about the roles and responsibilities of different agencies. Through the spectrum of work-based learning, youth: • Become aware of career possibilities through tours, site visits, guest speakers, etc.; • Explore opportunities via informational interviews, job shadows and internships; and • Train for specific careers through apprenticeships, on-the-job training or work experience.

Sacramento Municipal Utility District Employees Share Career Journeys What do the Sacramento Municipal Utility District, the Napa County Resource Conservation District and the Port of Hueneme have in common? In addition to being a special district, they are also three organizations committed to helping the next generation of youth become career and civic ready. Through internships and civics education, these special districts are creating opportunities for high school youth to learn about work culture, policy making and how special districts function. The opportunities also provide organization-specific education around energy, shipping/trade and natural resources. In California, nearly two million people work in state and local government1. In the Sacramento region alone, public sector employment is nearly 25% of all jobs2. The number of local and state government employees retiring means a new cohort of public employees need to take the helm3. Educating the next generation about the variety of careers available in the public sector is crucial to ensure that qualified public servants are ready to work in local government. Additionally, with dismally low voting records and lack of awareness about local government functions, it is important that special districts (as well as cities, counties and school districts)

The Sacramento Municipal Utility District (SMUD) provides work-based learning experiences through career ambassadors and internships. These activities bring SMUD employees and youth together to share in energy education and career awareness. Career Ambassadors visit local classrooms and prepare personalized presentations about their role and how they navigated their career. Through internships, SMUD engages with high school and college-level students to showcase the variety of careers at SMUD and create opportunity for local youth to experience the workforce.

Youth Connect with their Community through the Napa County Resource Conservation District The Napa County Resource Conservation District (NCRCD) provides a variety of programs to engage the community’s youth in their pursuit of conservation. Through the LandSmart® Community Education program, NCRCD creates connections and inspire conservation by offering opportunities to participate in stewardship and work-based learning activities. Steward programs are tailored for different aged youth from elementary to college level students. Through the high school steward program, youth participate in 3-5 day field trips and receive mentorship. Youth learn about personal leadership, stewardship and explore the careers (and path towards) of the staff at NCRCD. Frances Knapczyk, Conservation Programs Manager at NCRCD advises special districts getting started to “start small, scale up and establish relationships with teachers and mentors” as well as to “provide clear direction and expectations” when working with youth.

In Case You Missed It

On May 23rd, ILG partnered with CSDA to host a webinar on this topic, “Governments Engaging Youth.” The Sacramento Municipal Utility District, the Napa County Resource Conservation District, and the Port of Hueneme shared their youth-civic engagement efforts and work-based learning experiences. Access this on-demand webinar at csda.net.

Port of Hueneme Connects Youth to Business and Public Sector Careers In the Port of Hueneme and Oxnard area, more than 13,000 jobs are related to the activities of the port. To engage youth in the activities of the special district, the Port of Hueneme provides classroom tours and organizes a special 13-week class for high school students on global logistics. The agency has also established partnerships with local colleges to support student and economic development. Through its Governments Engaging Youth initiative, the Institute for Local Government (ILG) supports programs like these by sharing best practices and providing tools and resources. ILG commends these special districts for working to prepare the next generation of local leaders and positively engaging the youth in their communities.

ILG Releases Governments Engaging Youth Toolkit ILG recently released a new online toolkit to support and enhance youth-civic engagement and work-based learning efforts. The toolkit provides resources and materials for counties and schools to collaborate to implement dynamic programming that offers youth opportunities to become civically engaged and interested in public sector careers through job shadows or internships. Find examples of different program models, sample curriculum plans and work-based learning guides in the new toolkit (www. ca-ilg.org/GEYToolkit). Please contact Randi Kay Stephens at rstephens@ca-ilg.org or Hang Tran at htran@ca-ilg.org if you have any questions or would like additional information. 1. www.governing.com/gov-data/public-workforce-salaries/states-most-governmentworkers-public-employees-by-job-type.html 2. Presentation by Sacramento Employment & Training Agency, May 12, 2017 3. www.labormarketinfo.edd.ca.gov/file/lfmonth/employment-highlights.pdf

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California Special District – September-October 2017

[Solutions & Innovations]

Inland Empire RCD Connecting Local Farmers and Low-Income Families By Brian Robey, Project Manager, Inland Empire Resource Conservation District

Over

the past few decades, much of the Inland Empire, the metropolitan area east of Los Angeles, saw a massive shift from agricultural production to urban sprawl. A booming shipping industry in Los Angeles and Long Beach lead to a rapid shift from arable land to gigantic warehouses to handle the flow of goods through Southern California’s ports. Despite the changing landscape, organizations are fighting to promote urban agriculture in a region desperately in need of access to fresh, healthy produce. Huerta del Valle Community Garden (HdV), in Ontario, CA, is leading the effort to develop urban farms throughout the Inland Empire, especially in low-income areas where produce access is severely limited. The Inland Empire Resource Conservation District (IERCD), a special district of the county of San Bernardino, has a mission to preserve and enhance the natural resources throughout their district. This includes promoting healthy soil and supporting the historic agricultural roots of the Inland Empire. Together, the IERCD and HdV continuously partner to provide healthy, sustainable food, improve soil health, and protect the Inland Empire’s natural resources. 26

As a result of the loss of agricultural land, increasing living expenses, and expanding communities, many areas in the Inland Empire have become ‘food deserts’areas where fresh, healthy food is unavailable, too expensive, or difficult to access. Without easy access to nutritious foods and produce, residents are forced to turn to fast-food chains and convenience stores as they are often the only option. This has become an issue for public health and is especially prevalent in lower income communities. In one such community in Ontario, HdV’s Executive Director Maria Alonso started looking for a way to provide organic produce for her son, who had recently been diagnosed with ADHD. His doctor told Maria that healthy food could help offset his symptoms without needing medication. But while medication was accessible via insurance, fresh food was prohibitively difficult and expensive to acquire. So, she and a group of neighbors began developing their own garden to provide fresh food for their families. The project has since grown from a small lot to a 4-acre production area with around 60 community

The Urban Agriculture Conservation Grant Initiative is available to member districts to advance agricultural conservation in developed or developing areas

plots. With the guidance of Maria and Project Manager Arthur Levine, they are now looking to develop more urban farms to expand their production and provide educational programs to residents and farmers. HdV’s long term vision is to establish urban gardens throughout the Inland Empire to serve disadvantaged areas, but in the short term, Huerta del Valle is looking to grow its food and education programs in the local community.

As part of the ongoing partnership, IERCD was awarded a grant opportunity though the National Association of Resource Conservation Districts (NACD) to support the expansion of the low-income CSA program. The Urban Agriculture Conservation Grant Initiative is available to member districts to advance agricultural conservation in developed or developing areas. The grant was written to support Huerta del Valle’s CSA program while also engaging farmers in the area to join a network of producers to help provide for the program and expand it into a multi-farm project. The addition of a full-time CSA coordinator will allow for the expansion of the CSA program, with the first year goal of growing

One of the most exciting new programs at HdV is its Community Supported Agriculture (CSA) program, targeted towards local, low-income families. A CSA program connects local farmers with consumers to subscribe to a weekly box of fresh produce allowing families access to fresh food while supporting the farm’s operations. Much of this produce will be “gleaned”- produce that would not be sold to regular, largescale customers. Not only does this cut down significantly on food waste, but also helps make the boxes affordable. Families can also use food stamps to purchase the boxes, further increasing program accessibility.

California Special District – September-October 2017

the CSA Program to 40 enrolled families and the long-term objective of reaching 200+ families. The coordinator will also provide outreach to both residents and farmers. Residents and CSA members will have the opportunity to attend workshops on nutrition and healthy cooking. Regional farmers will be approached to support the CSA program by providing excess produce that may not have value on the regular market. In addition, farmers will be introduced to IERCD programs – as well as programs through their Federal partner, the Natural Resources Conservation Service (NRCS). The ultimate objective is to develop a network Continued on page 28

Solutions & Innovations [continued] of farmers and community members to rally behind the mission of local, affordable produce. The expansion of the CSA program will help meet the mission of the IERCD and HDV by supporting urban agriculture, promoting soil health awareness, teaching sustainable growing techniques, and encouraging land conservation.

conservation work. Through this program, students built a rain water capture system, helped compost hundreds of pounds of food waste, performed soil testing, and much more. HdV also helped support the development of IERCD’s Farm-to-Fork program, a statewide effort to increasing access to healthy food.

Besides developing urban farms throughout the region, both the IERCD and HdV place a lot of emphasis on educating residents about the importance of urban farms, nutritional eating, and composting. In 2016, HdV served as a host location for the IERCD’s Student and Landowner Education and Watershed Stewardship Program (SLEWS). This program serves to connect high school students with a local landowner to perform

The Inland Empire may never be able to return to its agricultural roots, but the residents of this region deserve access to fresh produce and urban gardens provide them with that access. The Inland Empire Resource Conservation District and Huerta del Valle will continue to find ways to reach this through our continued partnership.

To bolster these programs and add more like them, HdV is also looking to add two education coordinators to help increase their outreach potential. Funded, by IERCD’s Special Projects Fund, these coordinators will be able to add classes on better farming practices, healthy cooking, and sustainability to the region.

Legal Brief

Ethics in Government, Not a Legal Fiction for California Officials By Erin Kunze, Attorney, Liebert Cassidy Whitmore In the first half of 2017, some two-dozen bills have been introduced in the State Legislature with the potential to impact laws regulating government ethics, transparency, and political activity. Legislation proposed in the State Assembly and State Senate seeks to repeal portions of existing law, and, at the same time, impose stronger penalties for violating remaining statutes. This legislation has been introduced by both Democrat and Republican members of the State Legislature, some bills with bi-partisan support. Targeting government ethics, Assembly Bill 403, introduced in February 2017, seeks to establish a “Legislative Employee Whistleblower Protection Act” to prohibit retaliation against legislative employees who file complaints alleging violations of legislative ethics. If passed, this would complement the existing Whistleblower Protection Act that prohibits state agency employees from directly or indirectly using or attempting to use their official authority or influence for the purpose of intimidating, threatening, coercing, 30

commanding, or attempting to intimidate, threaten, coerce, or command any person for the purpose of interfering with the right of that person to disclose to a legislative committee improper governmental activities. Assembly Bill 802 seeks to “forever disqualify” a public official from holding office in the state if the individual is convicted of felony voter intimidation. And Assembly Bill 955 seeks to increase the terms of imprisonment for those who give or offer to give bribes to members of the legislative body of a city, county, school district, or other special district. Targeting government transparency, Assembly Bill 1333 would require every local government agency that maintains a website to post on that site notice of any upcoming election in which voters will vote on a tax measure or proposed bond issuance of the agency. The same Bill would require local agencies that publish electronic newsletters to include the notice in such newsletters. Several bills (of Assembly and Senate origin) seek to amend the Political Reform Act by changing regulations on campaign funding contributions, disclosures, and expenditures. To curtail conflicts of interest, these bills also seek to extend restrictions on employment

for the period following service in an elected office or other specified position. For example, Senate Bill 679 would extend the time period prohibiting former legislators from engaging in paid lobbying activity from one to two years. And Assembly Bill 551 would specify that this prohibition applies to independent contractors of local government agencies who are appearing or communicating on behalf of the agency. Current law and proposed legislation impacting government ethics are largely codified in three major statutory schemes: (1) the Ralph M. Brown Act (“Brown Act”), (2) California’s Public Records Act (“CPRA”), and (3) the Political Reform Act. (Other statutes do apply, though!) Speaking to government transparency, the Brown Act, first enacted in 1953, declares that the “people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may retain control over the instruments they have created.” (Gov. Code, § 54950.) Under this principle, the Brown Act sets forth the general principle that public agency governing bodies meet and discuss business in a forum that is “open” to the public, and which provides the public with adequate notice about meeting logistics and subject matter. The Act allows governing bodies to meet in “closed” session – thereby restricting public access to such meetings – only when a specific statutory exception applies. For example, a governing body may meet in closed session to discuss pending litigation, labor contract negotiations, or real property transactions. In these cases, the public interest is served by allowing the governing body to meet in closed session where potentially adverse parties, or a competitor for real property, will not be privy to the governing body’s legal or negotiations strategy. Discussions pertaining to personnel matters, which impact an individual’s privacy, may also be conducted in a closed session under appropriate circumstances, and with appropriate notices provided. Like the Brown Act, the CPRA encourages government transparency. Specifically, the CPRA provides that the Legislature, “mindful

California Special District – September-October 2017

of the right of individuals to privacy, finds and declares that access to information concerning the conduct of the people’s business is a fundamental and necessary right of every person in this state.” (Gov. Code § 6250.) Also like the Brown Act, the CPRA requires public agencies to make public records open for inspection by members of the public unless a specified statutory exception applies. For example, personnel and medical records, the disclosure of which would constitute an “unwarranted invasion of personal privacy,” are exempt from disclosure even if prepared, owned, used, or retained by a state or local agency. The CPRA also includes a catch-all exemption that allows a public agency to withhold a public record when the “public interest served by not disclosing the record clearly outweighs the public interest served by disclosure of the record.” Even here, the balancing is one of two competing public interests. Thus, like the Brown Act, the overarching theme of the CPRA is public access to public information.

The third statutory scheme discussed here, the Political Reform Act, prohibits members of the Legislature, state, county, district, judicial district, or city officers or employees from being “financially interested” in any contract made by them in their official capacity, or by anybody or board of which they are members. It is this Act that requires statewide elected officers, candidates for elective office, and certain public officers to file a statement of economic interest – or “Form 700” – in connection with their positions. Chief Administrative Officers, City Managers, and candidates for and persons holding the office of City Council, City Treasurer, City Attorney, and/or Mayor are required to complete statements of economic interest, as are candidates for and persons holding the office of district attorney, county counsel, county treasurer, and/or member of a board of supervisors. Anyone appointed to another state board, commission, Continued on page 32

At LCW we are not solely lawyers. For nearly 40 years, we have been your trusted partners, helping public employers avoid legal problems and navigate challenging situations. Special districts serve others, and we are honored to serve them in all areas of law, including: • • • • • • • •

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Legal Brief [continued] BOARD SECRETARY/CLERK

or similar “multimember” body of the state, heads of local government agencies, and members of local government boards or commissions are also required to complete statements of economic interest. In addition to these disclosure requirements, the Political Reform Act regulates lobbying activity, political campaigns, and campaign financing in the State of California. For example, the Act regulates political mailings; it prohibits mass mailings at public expense, and requires appropriate identifying information on such mailings.

October 22-24, 2017 Returning Attendee Session:

October 24, 2017 Protecting Your Board Members – Ethics in Elected Office

LOOK!

While issues pertaining to government transparency, confidentiality, and conflicts of interest are the topic of much discussion on the Federal level, California public agencies are well-advised to keep an eye on potential changes stemming from the State Legislature, which, if passed, will impact local agency obligations here in California. Erin Kunze, Attorney in the San Francisco office of Liebert Cassidy Whitmore, provides representation and legal counsel to special districts on a variety of labor and employment law matters. She also provides training in the areas of performance management, harassment and discrimination, and mandated reporting. Erin can be reached at ekunze@lcwlegal.com.

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District Snapshots The Sacramento Metropolitan Air Quality Management District (SMAQMD) is responsible for cleaning the air to meet state and federal health standards so we all breathe easier. The area’s two biggest air pollutants are ground-level ozone and particulate matter 2.5. In Sacramento County, the majority of air pollution during the summer comes from mobile sources, which are the cars, trucks, buses, agriculture and construction equipment that are used every day. In late Spring of this year, SMAQMD and its partners (including the Sacramento Municipal Utility District) announced the deployment of 20 electric school buses that will serve students throughout Sacramento County. The buses’ routes run primarily through disadvantaged communities, reducing air pollution in those neighborhoods.

Bythe

Numb3rs 70 – percentage of the Sacramento region’s ozone pollution from cars, trucks, locomotives, buses, motorcycles, agricultural and construction equipment. California Special District – September-October 2017

7.5 – millions of dollars in competitive grant funding from the California Air Resources Board to help pay for the electric school bus project in Sacramento County.

anaging Risk

Recent Court Decisions In the trial court, the City argued trail immunity applied because the plaintiff was on a trail when she was struck by the tree branch. The trial court agreed with the City and entered judgment in its favor, finding the immunity should apply to the tree and its condition because of the location of the tree to the trail. Following the denial of her motion for new trial, the plaintiff appealed.

For

Public Agencies operating in California, the law is ever changing. We are presenting recent Court decision from various California Courts have issued decisions s which will have an effect on how your individual agency operates and manages its risk. Below are a sample of recently decided cases for your information.

Public Agencies and the Recreational Trail Immunity A tree branch fell off of a eucalyptus tree and struck a woman while she was walking through Mission Bay Park in San Diego. She filed suit against the City of San Diego, alleging the City negligently maintained the eucalyptus tree, creating a dangerous condition of public property. The City asserted it was immune from liability because the injury occurred while the plaintiff was on a trail. Last month, the Fourth District Court of Appeal rejected the City’s argument in Toeppe v. City of San Diego, further narrowing the scope of trail immunity. The ruling means less protections for public agencies that open their land for public recreational purposes, particularly where the potentially dangerous conditions are not naturally occurring. Under Government Code section 831.4, better known as “trail immunity,” public entities are generally immune from liability for injuries caused by a condition of a trail used for recreational purposes. The purpose of trail immunity is to encourage public entities to allow their property to be used for such purposes.

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On appeal, the plaintiff asserted her claim was not based on a condition of the trail, but on the negligently maintained eucalyptus tree. She alleged the City managed and maintained both Mission Bay Park and the trees within it, and that for nearly 10 years, a City employee negligently trimmed the subject eucalyptus tree’s branches. She argued the City created, and was aware of, the tree’s dangerous condition and was therefore liable for the resulting harm. She further maintained there was a dispute as to whether she was on the trail when she was struck by the branch. The City countered that the dangerous condition at issue was connected to the trail the plaintiff was on when she was struck by the branch, making the immunity applicable. The appellate court upheld the plaintiff’s position, finding her claim did not give rise to trail immunity. In doing so, the court distinguished the trail immunity cases cited by the City, including Amberger-Warren v. City of Piedmont decided in 2006 and Leyva v. Crockett & Co., Inc. from earlier this year. The court noted that in this case, the dangerous condition was not a natural condition of the park and was entirely independent of the trail. There are many eucalyptus trees throughout the park and the trail does not provide the only access to those trees. The court explained that the plaintiff did not have to use the trail to find herself near the dangerous condition; she could have walked across the grass or sat at one of the picnic tables in the park. The court found the dangerous condition did not involve the trail at all, but rather a eucalyptus tree planted by the City with a base 25 feet from the edge of the trail. The court clarified that if the tree was negligently maintained, it was a dangerous condition regardless of the location of the subject trail, further narrowing the seemingly broad scope of trail immunity.

Officers

Jean Bracy, SDA, President, Mojave Desert Air Quality Management District Ed Gray, Vice President, Chino Valley Independent Fire District Sandy Raffelson, Secretary, Herlong Public Utility 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

David Aranda, SDA, Mountain Meadows Community Services District Muril Clift Mike Scheafer, Costa Mesa Sanitary District Robert Swan, Groveland Community Services District

Consultants

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

(b) Any trail used for the above purposes. (c) Any paved trail, walkway, path, or sidewalk on an easement of way which has been granted to a public entity, which easement provides access to any unimproved property, so long as such public entity shall reasonably attempt to provide adequate warnings of the existence of any condition of the paved trail, walkway, path, or sidewalk which constitutes a hazard to health or safety. Warnings required by this subdivision shall only be required where pathways are paved, and such requirement shall not be construed to be a standard of care for any unpaved pathways or roads.

Gregory S. Hall, ARM, Chief Executive Officer C. Paul Frydendal, CPA, Chief Operating Officer Dennis Timoney, ARM, Chief Risk Officer Ellen Doughty, ARM, Chief Member Services Officer Heather Thomson, CPA, Chief Financial Officer Debbie Yokota, AIC, Claims Manager Wendy Tucker, Member Services Manager Susan Swanson, CPA, Finance Manager Alana Little, HR/Health Benefits Manager Danny Pena, Senior Claims Examiner Sarah Dronberger, HR/Health Benefits Specialist II Heidi Singer, Claims Examiner I Michelle Halverson, Accountant Rajnish Raj, Accounting Technician Alexandra Santos, Member Services Specialist II Kayla Kuhns, Member Services Specialist I

Hospital in Blythe, Calif., a public hospital district.1 In addition, he served as co-director of surgery and on the hospital’s medical executive committee, composed of members of the medical staff, which was independent of the hospital, but advised the board on operations and physician hiring. He also served as chief and assistant chief of staff with considerable influence over board decisions in those roles.

§831.4. A public entity, public employee, or a grantor of a public easement to a public entity for any of the following purposes, is not liable for an injury caused by a condition of: (a) Any unpaved road which provides access to fishing, hunting, camping, hiking, riding, including animal and all types of vehicular riding, water sports, recreational or scenic areas and which is not a (1) city street or highway or (2) county, state or federal highway or (3) public street or highway of a joint highway district, boulevard district, bridge and highway district or similar district formed for the improvement or building of public streets or highways.

SDRMA Staff

Independent Contractors & Consultants Can be Subject to Conflict of Interest Laws In a watershed decision, the California Supreme Court held that independent contractors and consultants can be considered “employees” and subject to the conflict of interest provisions of Government Code 1090. This includes the criminal penalties mandated in section 1090, which prohibits personal financial interests in government contracts. The People v. Superior Court (Sahlolbei) unanimous decision, handed down June 26, will require all public agencies to assess and reassess the role and function of their independent contractors and consultants to determine whether they, either by definition under their contract or by reason of their functions, qualify as an “employee” under the statute. This will also have implications for listing these positions in the agency’s conflict of interest code and requiring the filing of Statements of Economic Interest (FPPC Form 700) by those individuals. Additionally, it will have a significant impact on the ability of these independent contractors and consultants to obtain “additional work” on projects under a contract in which they had a hand in “making,” such as furnishing a design or plan. Hossain Sahlolbei was retained as a surgeon on an independent contractor basis by Palo Verde

Sahlolbei recruited an anesthesiologist, Dr. Brad Barth, and negotiated a contract with Barth for Barth to receive $36,000 per month from the hospital and a one-time payment of $10,000 for relocation expenses. Sahlolbei pressured the board to approve the contract, but told the board the rate of pay was $48,000 per month, with a onetime payment of $40,000 for relocation expenses. It was alleged that Sahlolbei threatened to have the medical staff stop admitting patients if the board did not approve the contract. Sahlolbei convinced Barth to have all payments from the hospital deposited into Sahlolbei’s account and Sahlolbei then paid Barth the agreed upon $36,000 per month and $10,000 relocation payment and retained the balance. The Riverside County District Attorney charged Sahlolbei with grand theft and violations of Government Code section 1090, which prohibits a government official, officer or employee from having a financial interest in a contract made by them in an official capacity. The trial court dismissed the section 1090 charges, finding that as an independent contractor, Sahlolbei was not an “employee” under the statute, applying the tort law definition of “employee.” The District Attorney’s office appealed and, in a 2-1 decision, the Fourth District Court of Appeal agreed with the trial court. Prosecutors then took the case to the California Supreme Court. The Supreme Court held the term “employee” in section 1090 does not have the tort law Continued on page 36

California Special District – September-October 2017

Managing Risk [continued] definition, as it is used in the broadly construed and sweeping conflict statute, meant to prevent corruption and divided loyalties in connection with government contracts. Thus, the form of employment is irrelevant. Making new law, the Court held that the standard to determine whether an independent contractor or consultant qualifies as an “employee” under the statute is to look to see if “they have duties to engage in or advise on public contracting that they are expected to carry out on the government’s behalf.” And, to determine if they are involved in “making” a contract in their official capacity under the statute, one looks to whether “their position afforded them ‘the opportunity to influence

execution [of the contracts] directly or indirectly to promote [their] personal interests’ and they exploit those opportunities.” Prior appellate decisions held that an independent contractor or consultant had to have had “considerable influence” over the contract formation and execution decisions of the public agency to come within the meaning of “employee” under the statute and to be considered to have participated in the “making” of the contract. The Supreme Court clearly lowered that standard. The Court rejected the argument of the amicus curiae, California Medical Association, that physicians should be exempt from the sweep of section 1090 because of their unique relationship with public hospitals

and because it would potentially interfere with their treatment of patients. The Court held that section 1090 requires only that a physician’s advice in contracting matters be independent from his or her own personal financial interests, not those of the patient.

Where do you Work? Going and Coming Rule – Business Errand Exception California Jury Instruction No. 3724 sets forth the Going-andComing Rule – Business Errand Exception, which states: “in general, an employee is not acting within the scope of employment while traveling to and from the workplace. But if the employee, while commuting, is on an errand for the employer, then the employee’s conduct is within

www.BBKlaw.com Offices throughout California and in Washington, D.C.

the scope of his or her employment from the time the employee starts on the errand . . . .” Defendant Modern Alloys Inc. employed Juan Campos as a cement/mason finisher who was paid hourly for an eight-hour shift which began and ended at his worksite where he performed his work. Modern Alloys expected Campos to first arrive at its yard before going to the worksite. Campos would drive one of the company’s trucks filled with construction materials and also his co-workers to the worksite. On October 7, 2010, when Campos was driving from his home to Modern Alloys’ yard, he collided with plaintiff Michael Sumrall. Sumrall filed a complaint against Modern Alloys, alleging respondeat superior liability for Campos’ negligence. The trial court granted Modern Alloys’ motion for summary judgment, finding that Campos was commuting to his work and was not acting within the scope of his employment. The Court of Appeal disagreed because it could not state as a matter of law that the employee was not on a business errand when he commuted from his home to the employer’s yard. The Court of Appeal reversed the trial court’s grant of Modern Alloys’ motion for summary judgment. The Court found a material triable issue of fact as to the location of Campos’ workplace. It was undisputed that Campos drove his own vehicle from his home to Modern Alloys’ yard, making it reasonable to infer that Campos was on a normal commute. It was also undisputed that Campos drove Modern Alloys’ truck, employees and materials from its yard to the worksite, and was not paid until he reached his worksite, making it reasonable to infer that Campos

If a jury determines the worksite was the actual jobsite where the employee performed his work, then the employee’s drive to the yard could be considered a business errand...

was on a business errand for the benefit of his employer. Since the Court could make two reasonable inferences from the facts, the Court could not affirm the trial court’s grant of summary judgment. A jury must consider and weigh all of the facts and circumstances to determine what is considered Campos’ workplace, the yard or the actual worksite. The Court could not state as a matter of law that Campos was not on a business errand for the benefit of Modern Alloys when the collision occurred because a jury needs to answer questions about his “workplace” to determine whether Campos was on a business errand. There is a genuine issue of fact as to what is the worksite in this case. If a jury determines the worksite was the yard, then the going and coming rule would apply. If a jury determines the worksite was the actual jobsite where the employee performed his work, then the employee’s drive to the yard could be considered a business errand, and the employer would be subjected to liability.

California Special District – September-October 2017

California Civil Jury Instructions (CACI) 3724. Going-and-Coming Rule: In general, an employee is not acting within the scope of employment while traveling to and from the workplace. But if the employee, while commuting, is on an errand for the employer, then the employee’s conduct is within the scope of his or her employment from the time the employee starts on the errand until he or she returns from the errand or until he or she completely abandons the errand for personal reasons. ©Low Ball & Lynch; Best, Best & Krieger

For additional information please contact SDRMA Chief Risk Officer Dennis Timoney at 800-537-7790 or email Dennis at dtimoney@sdrma.org.

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Money Matters

Originally appeared in the CSMFO Magazine – July 2017.

Bond Accountability: How to Make it an Everday Thing

By Mark Campbell, Executive Director, California Debt and Investment Advisory Commission

fiduciary care and use of state and local bond proceeds. The guideline adhered to the COSO framework for internal controls provided in the U.S. Government Accountability Office, Green Book. This consists of five elements: Control Environment--An agency’s control environment represents the formal structures, goals, and objectives that form an internal control system. This includes the personnel--elected or appointed, the policies and procedures directing their activities in support of the control system, and the authority provided to those with oversight roles, including external bond oversight committees.

compliance with federal and state legislation, California public agencies are expected to establish and maintain internal control systems to account for and report on the expenditure of funds. There is an abundance of resources available to administrators that provides guidance on the development of internal control systems. When applied consistently and correctly these controls can provide both the agency and the public an assurance that the funds are being properly managed and accounted for. That being said, not all agencies apply the same system of controls they may have developed to manage general governmental funds to their bond funds. Even if they do, the system of controls used to account for and report on bond expenditures may not be fully integrated into the agency’s administrative structure even though doing so may ensure it is consistently applied. This article is designed to provide readers a framework to understand internal control systems as they apply to bond funds and then, more importantly, present ways to bridge the gaps that often exist between a preexisting control system and the ongoing administration of bond funds.

Fundamentals of an Internal Control System In December 2015 the Task Force on Bond Accountability released its Final Report summarizing its efforts to develop best practice guidelines on the

CSDA F C

A proud California Special Districts Alliance partner.

Risk Assessment--Within the context of a bond program, risk assessment is the process of identifying objectives and assessing the likelihood that risk events will occur and unfavorably affect the agency’s achievement of those objectives. The assessment of risk provides the basis for developing appropriate measures to manage risk. Control Activities--Control activities are the actions the public agency takes through policies, procedures, and the delegation of duties to achieve its objectives and mitigate risk. The system of internal controls may vary, depending on the size, nature, and organizational complexity of the agency, but it must address the identified risks. Information and Communications--As guardians of public funds, public agencies have a fiduciary responsibility to adopt a system of internal controls that provides a reasonable assurance that the agency is properly receiving, managing, and disbursing bond funds. Information and communication facilitates accountability and performance tracking. Monitoring--The effectiveness of any set of internal controls is a function of its ability to mitigate risk. Since risks and program activities change over time, the internal control system must be dynamic, able to respond to changing requirements, staffing, and agency objectives. By monitoring the effectiveness of the control system, agencies can more readily adjust to these changing conditions.

Officers

Jo MacKenzie, President, Vista Irrigation District Leslie Keane, Vice President, Orange County Cemetery District Paul Hughes, Secretary, South Tahoe Public Utilities District Matthew McCue, Treasurer, Mission Springs Water 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

Alex Brandon, Phelan Pinon Hills Community Services District Glenn Lazof, Regional Government Services Authority Vince Ferrante, Moss Landing Harbor District

Consultants

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

Making the Control System Part of the Agency’s DNA An agency’s control system is effective only if it is consistently and universally employed. Agencies can ensure that this happens by operationalizing the control system in: 1) the agency’s plans, policies, and procedures; 2) the controlling bond documents; and 3) staff training. Plan, Policies, and Procedures—Public agencies are guided by a number of plans, policies, and procedures when issuing and administering debt. These include a debt policy, investment policy, disclosure policy, as well as a capital improvement or facility management plan. These may be used to express elements of the control system to increase the likelihood that they will be carried out. Debt policies that call out the uses of debt, the types and terms of a debt issue, the responsibilities of the agency and staff for ongoing reporting and disclosure, the administration of debt-related payments, the uses to which the proceeds may be spent, can drive specific control activities. Administrative policies and procedures often spell out the separation of duties between staff as well as procedures, timelines, and schedules to process specific actions. With regard to the disbursement of bond funds, for example, the agency’s policies and procedures may identify nonconforming transactions or exceptions that warrant immediate action, such as errors and discrepancies or changes in the payee name designation. As funds are disbursed, policies and procedures may require staff to review expenditure plans, to seek legal review of contracts and agreements, to conduct site visits, and to maintain records of assets or portions of assets being financed. They may additionally set forth the content and timing of reports provided to any oversight committee or community interest groups. Controlling Bond Documents—To strengthen compliance with policies and procedures, public agencies should integrate elements of the control system into bond documents. These include, among others, the indenture, the trust agreement, the tax certificate, the continuing disclosure agreement, and any Continued on page 46

California Special District – September-October 2017

CSDAFC Staff

Neil McCormick, CEO Cathrine Lemaire, Program Manager Beth Hummel, Executive Assistant Rick Wood, Finance & Administrative Director

New Executive Hangars for Truckee Tahoe Airport

The CSDA Finance Corporation recently announced the successful closing of the financing for Truckee Tahoe Airport District’s $7.8 million executive hangar project. The district anticipates breaking ground next May with a forecasted completion date of late fall 2018. So far this year, CSDA Finance Corporation has facilitated more than $32 million in financings for special district construction projects, land purchases, and refinancings. To learn more about the financing options available to your district, call 877.924.2732 or visit www.csdafinance.net.

[What’s so special]

Mindful Living Everyday Keeps the Doctor Away Beach Cities Health District

Beach Cities Health District (BCHD) is one of the largest preventive health agencies in the nation serving the communities of Hermosa Beach, Manhattan Beach, and Redondo Beach since 1955. It offers an extensive range of dynamic health and wellness programs, with innovative services and facilities to promote health and prevent diseases in every lifespan—from children to families and older adults. California Special District asked BCHD to talk about some of those programs and services that enrich the communities they serve.

BCHD implements the Blue Zones Project®. Please certification as a Blue Zones Community® in 2016. Blue Zones Project® allows BCHD tell us about the Blue Zones Project® and how to directly address population health issues BCHD is involved. Blue Zones are the five areas of the world where people live the longest and the Blue Zones Project® is a community well-being improvement initiative designed to change the way people experience the world around them. By impacting environment, policy, and social networks, Blue Zones Project® makes healthy choices easier. As a result, people can live longer, better, and communities can lower healthcare costs, improve productivity, and boost national recognition as a great place to live, work, and play. (From healthways.com/ bluezonesproject) The Beach Cities (Hermosa Beach, Manhattan Beach, and Redondo Beach) joined the national Blue Zones Project® movement in 2010 and achieved

and utilize a world-class measurement tool (Gallup polling) to chart our progress. The Beach Cities are the largest community to ever reach certification and are experiencing arguably the most dramatic health outcomes – including measurable declines in overweight, smoking and stress rates among residents. Changes supported by the Blue Zones Project® in the Beach Cities include: • Bike lanes including a protected bike path and reverse angle parking • More than 130 Blue Zones Restaurants® (healthy restaurants program) • Comprehensive tobacco control ordinances • City adoption of a bike master plan, Beach Cities Livability Plan and Living Streets policy

Beach Cities Health District Established: 1955 Population: 123,000 Location: Los Angeles

Website: Budget:

www.bchd.org $11 million

• Just 12.1 percent of residents are obese, compared to 23.8 percent statewide and 28.1 percent nationally. • Smoking declined more than 17 percent. • Daily significant stress dropped 9 percent from the rate measured in 2010, which at the time was on par with postKatrina New Orleans and recessionravaged Detroit.

Blue Zones Project® focuses on the Power 9 principles (http://www.bchd.org/power9-principles) and helping to make the healthy choice the easy choice: • Move Naturally – The world’s longestlived people live in environments that constantly nudge them into moving without thinking about it. • Purpose – Having a sense of purpose is worth up to seven years of extra life expectancy. • Down Shift – Stress leads to chronic inflammation, associated with every major age-related disease. Reverse disease by creating a stress-relieving strategy that works for you. • 80% Rule – Eat mindfully and stop when 80 percent full. The 20 percent gap between not being hungry and feeling full could be the difference between losing or gaining weight. People in Blue Zones eat their smallest meal in the late afternoon or early evening and then don’t eat any more the rest of the day. • Plant Slant – Adding more fruits and veggies to your plate can add years to your life. Beans, including fava, black, soy, and lentils, are the cornerstone of most centenarian diets. • Wine @ 5 – Enjoying company with others is important for social connection.

California Special District – September-October 2017

• Belong – Research shows that attending faith-based services four times per month will add four to 14 years of life expectancy. • Loved Ones First – Successful centenarians in Blue Zones areas put their families first. • Right Tribe – The world’s longest lived people also choose—or are born into—social circles that support healthy behaviors. Research shows that smoking, obesity, happiness, and even loneliness are contagious. The social networks of long-lived people favorably shape their health behaviors.

How has BCHD’s implementation of the Blue Zones Project® improved outreach to the communities BCHD serves and what are some measurable outcomes of the program? The Blue Zones Project® is a communitywide initiative – meaning it depends on community involvement. The Blue Zones Project® in the Beach Cities has partnered with local schools, restaurants, workplaces and organizations to implement Blue Zones Project® programming. Beach Cities showed the following results on the Gallup-Sharecare Well-Being Index from 2010 - 2017: • The number of obese residents came in at less than half the national average.

BCHD also hosts a variety of school and youth programs – one being the Walking School Bus. Please tell us about this program and how it has benefited the communities taking part. The goal of Walking School Bus is simple: Students will safely walk to school on a regular basis with adult supervision. The program increases daily physical and social activity for children as well as engages adult volunteers, thereby promoting a wellrounded healthy community. Since 2011, BCHD has partnered with school officials, volunteers and parents that want to offer the Walking School Bus program. In 2016-17 school year, 60 volunteers led 30 Walking School Bus routes with hundreds of students. In the last decade, a strong culture of walking has been adopted by school districts in the Beach Cities because of the program’s success In addition to the Walking School Bus, BCHD locally directs, in partnership with the Hermosa Beach, Manhattan Beach and Redondo Beach school districts, the MindUP program. This research-driven curriculum blends mindful awareness practices with the science behind how the brain functions and reacts to stimuli like stress, anger and anxiety – emotions that research shows to be increasingly prevalent among young people today – to help students become emotionally articulate and grow socially. One example is Pennekamp Continued on page 42

What’s So Special [continued] Elementary in Manhattan Beach where each morning begins the same way – before the first class bell sounds, roughly 600 students, teachers, and parents gather together in organized groups on the blacktop for a full minute of complete and utter silence.

six years ago, a significant number of principals and administrators have reported fewer incidences of bullying, disciplinary office visits and emotional outbursts on campuses where MindUP has taken hold.

BCHD provides local teachers with the required training to administer the in-class lessons, which include daily breathing exercises, meditation and interactive lessons on the parts of the human brain that regulate different emotions. Each teacher is encouraged to tailor the lessons to fit their personal teaching style and classroom culture. Since first implementing the program in select Beach Cities schools

Since 2010, BCHD programs have saved 21 million in direct medial costs. For every tax dollar received, BCHD returns $3.50 in programs and services to the community. BCHD has an evidence-based strategic planning process to prioritize and guide funding and programmatic decisions. The plan includes a community needs assessment process, which informs

Did BCHD programs develop out of a need from the community?

PREVAILING WAGE &

BCHD’s Community Health Snapshot Report. This critical data helps BCHD achieve its vision and meet its strategic planning goals. BCHD’s partnership with Blue Zones Project® has also afforded access to the Gallup-Sharecare Well-Being Index (WBI). The WBI is a national measure of well-being that provides leaders with the information they need to create solutions for making their community healthier. For more information on these programs, please visit: • bchd.org/bluezonesproject • bchd.org/walkingschoolbus • bchd.org/snapshot

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Money Matters [continued] agreements with insurers or other credit providers. The process must begin during the pre-issuance phase, during which the agency should account for all documents that will direct the roles and activities governing the investment and administration of bond funds and ongoing reporting and compliance. Elements of the control system correspond to the specific content of most indentures, making linking the two fairly straightforward. For example, the typical indenture addresses the structure of accounts used to receive bond funds, the “waterfall” of revenues and payments, covenant restrictions,

reserve maintenance and security, requirements for the disbursement of construction funds, and the terms for the trustee to safeguard and release funds. Each of these fits nicely into one or more control activities. Likewise, the trustee agreement contains terms that address financial and administrative management. Seeing that it contains language the clarifies the trustee’s role as a fiduciary when holding and investing bond funds, guaranteeing reserve requirements, monitoring bond covenants, and maintaining current balances on bond funds increases the likelihood that the agency’s control system is active and not reactive. Agencies can use the tax certificate to establish and test control procedures to validate expenditures, including requirements for the use of proceeds, the timing of disbursement, requirements and limitations on the use of construction funds, private use restrictions, and, of course, the timing of arbitrage and yield restriction filings.

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Finally, the continuing disclosure agreement provides the framework for ongoing reporting to investors and regulatory agencies and, in so doing, establishes measures to assess compliance and avoid problems. The agreement, in most cases, addresses filing requirements, the materials to be included, and the dates of submission.

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Ongoing Staff Training—Public agencies can better ensure that their control system are active and employed by staff by providing training and communicating plans, policies, and procedures. Training should be provided to members of the governing body and oversight committees as well as service providers, such as auditors, who may need insights into the agency’s control system in order to perform their duties. Some agencies may need more frequent training on one or more elements of the control system. For example, agencies that use a conduit financing structure, may decide to train staff on control activities addressing expenditures and to review and update the training program to reflect improvements or changes in the control system.

Final Thoughts Issuers enhance the expectation that they will timely and fully meet their repayment obligations through the development and application of a well-designed internal control system that tracks, monitors, and reports on the use of bond funds. Once adopted, however, issuers must take steps to institutionalize these control measures. If the agencies control system is integrated into and supported by its plans, policies, and procedures and expressed in controlling bond documents it is more likely to be applied. Furthermore, education and communication are the cornerstones of effective administrative processes. Agencies that undertake the work to articulate their control system in this manner and to train staff will undoubtedly derive material benefits in the form of better financing terms.

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