2018 CA Special District July-August by California Special Districts Association

C ALI FO R N I A

SPECIAL DISTRICTS Vo l um e 13, I s s u e 4

A Publication of the C alifornia Special D is tr ic ts A s s oc iation

CSDA Annual Conference Issue CSDA Conference Keynote Speaker

Connie Podesta

CSDA and CALAFCO Strike Compromise on AB 2258 - Pg. 26 Business Directory - Pg. 48

CSDA CONFERENCE MOTIVATIONAL SPEAKER

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TABLE OF CONTENTS

StandOut Leadership: Lead Like You Mean It

05 President’s Message 06 Professional Development 08 CSDA News 10 You Ask, We Answer: Prop. 218 Public Protest Formats 12 Ask the Experts: Public Officials and Gifts: Not Oil and Water 22 Movers and Shakers

Salton Sea Tour Harnessing Your Power to Create Change 26

Take Action: CSDA and CALAFCO Strike Compromise & Local Taxes and Fees Initiative Withdrawn

28 32

36 Risk Management: Exposed to Ticks in Your Working Environment? 40

Money Matters: Impact Fees: Breaking New Ground Doesn’t Need to Break the Bank

Managers Corner: Leadership Under Fire: Managing Your District’s Reputation Like Your Job Depends on It

Districts Make the Difference: Lights, Camera, Action! Video Contest Coming Soon!

Legal Brief: The Line Between Information and Campaigning

In Brief: Park District Receives Award For Spanish Language Water Safety

For editorial inquiries, contact Vanessa Gonzales, Communications Specialist at 877.924.2732 or vanessag@csda.net.

For advertising inquiries, contact CSDA at 877.924.2732 or advertising@csda.net.

California Special Districts • July-August 2018

PRESIDENT'S MESSAGE

Looking Forward to the Upcoming Annual Conference Welcome to the CSDA Annual Conference & Exhibitor Greg Orsini Showcase preview issue of CSDA President California Special Districts. Stay tuned for content related to keynote and breakout sessions offered this year during the event, held September 24-27 at the Renaissance Indian Wells. You can also check out the full schedule of speakers, topics, and networking opportunities at www.conference.csda.net. As I was preparing my CSDA President Message, I reflected on the first CSDA Annual Conference I attended, in Monterey. By September of 2013 I had been on the CSDA Board of Directors for a little less than a year, but had attended the General Managers Leadership Summit. I had an idea of what to expect but there is always that uncertainty going somewhere for the first time. Will my flight and connections be uneventful? How do I get from the airport to the venue? What will it be like during the conference? All that

fades away once you are checked in at the hotel and you go to conference registration to pick up your badge and materials. The CSDA staff are such professionals, everything is planned and choreographed to make the experience enjoyable and productive. Today, CSDA Conference & Exhibitor Showcase continues to be THE leadership conference for special districts. It will be packed full of invaluable networking opportunities with district leaders throughout the state, engaging keynote presentations, informative breakout sessions for both staff and board members, and opportunities to mingle with leading service providers in our Exhibit Hall. I’d also like to highlight one of our conference sponsors and valued business affiliates, Umpqua Bank. From treating our Legislative Days attendees with ice cream to meeting with districts to offer banking solutions, Umpqua serves our members with a personal touch. Stop by their booth at the Annual Conference and ask about their CSDA Commercial Card program – now with more than 70 participants and growing! continued on page 6

CSDA Board and Staff Officers

Staff

GREG ORSINI, PRESIDENT, McKinleyville Community Services District

NEIL MCCORMICK, Chief Executive Officer

JOEL BAUER, SDA, VICE PRESIDENT, West Side Cemetery District

MEGAN HEMMING, Professional Development Director

JEFFREY HODGE, SECRETARY, Santa Ynez Community Services District

CATHRINE LEMAIRE, Member Services Director

RYAN CLAUSNITZER, TREASURER, Alameda County Mosquito Abatement District

KYLE PACKHAM, Advocacy & Public Affairs Director

VINCENT FERRANTE, PAST PRESIDENT, Moss Landing Harbor District

TODD WINSLOW, Publications Director RICK WOOD, Finance & Administration Director

Members of the Board

EMILY CHA, Professional Development Coordinator

STANLEY CALDWELL, Mt. View Sanitary District

TAMARA DE LA ROSA, Public Affairs Specialist

RALPH EMERSON, Garberville Sanitary District

MARCUS DETWILER, Legislative Assistant

PETER KAMPA, SDA, Saddle Creek Community Services District

RYLAN GERVASE, Legislative Representative

JO MACKENZIE, Vista Irrigation District

DILLON GIBBONS, Senior Legislative Representative

ELAINE MAGNER, Pleasant Valley Recreation & Park District

VANESSA GONZALES, Communications Specialist

NOELLE MATTOCK, El Dorado Hills Community Services District

ABI HAGUE, Member Services Representative

SANDI MILLER, SDA, Selma Cemetery District

COLLEEN HALEY, Public Affairs Field Coordinator

WILLIAM NELSON, Orange County Cemetery District

JIM HARROLD, Database & Online Communities Coordinator

GINGER ROOT, Country Club Sanitary District

MUSTAFA HESSABI, Legislative Analyst-Attorney

TIMOTHY RUIZ, P.E., East Niles Community Services District

BETH HUMMEL, Executive Assistant

FRED RYNESS, Burney Water District

STEVEN NASCIMENTO, Public Affairs Field Coordinator

ARLENE SCHAFER, Costa Mesa Sanitary District

ANNA PALMER, Member Services Specialist

ROBERT SILANO, Menlo Park Fire Protection District

CHRIS PALMER, Public Affairs Field Coordinator MARINA SERVANTEZ, Professional Development Assistant

California Special Districts Association 1112 I Street, Suite 200, Sacramento, CA 95814 toll-free: 877.924.2732 • www.csda.net

CASSANDRA STRAWN, Senior Member Services Specialist ANTHONY TANNEHILL, Legislative Representative DANE WADLÉ, Public Affairs Field Coordinator JAMES WILFONG, Senior Designer A proud California Special Districts Alliance partner

PROFESSIONAL DEVELOPMENT

5 Annual Conference Breakout Options You Should Check Out With over 40 breakout session options at the 2018 CSDA Annual Conference & Exhibitor Showcase – you are certain to find a topic or two that interests you during any given time slot. Here are just of few of our favorites for 2018 – • Public Agency Advocacy: The Rules Regarding Lobbying and Ballot Measures – What can an agency do? Or not do? How about board members and staff? • Who Ya Gonna Call? Emergency Preparedness During an Emergency and in the Aftermath – After last year’s historic fires attendees will have a lot to learn from this panel of special district staff who were on the front lines. • Converting from At-Large to By-District Elections Under the California Voting Rights Act: Understanding the “Safe Harbor” Process from Start to Finish – Has your district gotten a letter relating to your voting system? If you have or you haven’t yet – you may want to put this session on your schedule. • More Bytes for Your Buck - Getting the Most Value From Your District’s Technology Investment Experienced General Managers and CIOs share experiences. • Nightmare on Board Night – Learn how the Brown Act, Robert’s Rules of Order, and meeting decorum standards can keep your worst nightmares from becoming a reality. View the full schedule at conference.csda.net.

Save the Date

CSDA

PRESIDENT’S MESSAGE CONTINUED Last, but not least, I’d like to share some local Humboldt County news and acknowledge CSDA’s newest chapter affiliate, Humboldt Area Chapter of CSDA, where my special district is a member. We are pleased with this accomplishment and the continual growth and impact CSDA is having throughout the state and specifically in rural areas. Without the hard work of our Humboldt County CSDA members and our CSDA Public Affairs Field Coordinator, this would not have been possible. The affiliate chapters help to focus CSDA advocacy and professional development precisely on locally issues and update statewide matters with a local context. I hope to meet you at the 2018 CSDA Annual Conference & Exhibitor Showcase in Indian Wells this year! Please come up, introduce yourself, and don’t forgot that the greater Palm Springs area is one of the top shopping and tourist destinations. Whether you are coming with your colleagues or making a vacation of it with your family, make sure to enjoy the beautiful sights the area has to offer. See you in Indian Wells!

Meet us in Indian Wells, California! Look for Conference Highlights throughout this issue of California Special Districts!

California Special Districts • July-August 2018 MORE THAN A CONFERENCE

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CSDA NEWS

Annual Conference Can’t Wait for Conference to Start? Us Either! The 2018 CSDA Annual Conference & Exhibitor Showcase officially begins on Monday, September 24 at 5:30 p.m. with our President’s Reception with the Exhibitors, but we have lots of options on deck for all of you early birds! Got golf? Starting on Monday at 8:00 a.m. we are teeing it up for a great cause with the Special District Leadership Foundation (SDLF) Scramble for Scholarships Golf Tournament* at Indian Wells Golf Resort. Funds raised at this fun and friendly golf outing go directly to scholarships for special district directors/ trustees and staff. Can’t wait to learn? Attendees can also register to participate in one of four pre-conference workshops* including the Special District Leadership Academy Governance Foundations; So, You Want to Be a General Manager?; Policy and Procedure Writing; and The Strategies of a Special District Strategic Plan. Looking to get out and explore? Attendees registered for the pre-conference Salton Sea Authority Tour* will learn how special districts, counties, and a Native American tribe are working together in partnership with the state and federal agencies to reverse the tragic decline of the Salton Sea, transforming the watershed to establish a healthy and prosperous future. Have you been waiting to take the SDLF Special District Administrator exam**? Here’s your chance! Plan now to take this exam while you are at conference and take the next step toward advancing your special district career. Looking to network? Your first opportunity for some “power networking” comes at 3:45 p.m. Monday with our Chapter Roundtable Discussion. All registered conference attendees are welcome to this no cost preconference session to meet with CSDA board members and local chapter leaders from across the state to share best practices and discuss issues and opportunities. *These items are not included in conference registration and require registration and payment. Many of these items have limited seating and may sell-out before the conference. Advanced registration is encouraged. **This session requires an application and advance registration though sdlf.org.

Have you registered for the CSDA Annual Conference and Exhibitor Showcase? If so, you are now part of the Annual Conference Community! Receive updates about the event including the session materials as they become available. Use this community to connect with your fellow attendees, set up ride sharing, meet for coffee, and more!

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California Special Districts • July-August 2018

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Questions Appear in CSDA Communities

YOU ASK, WE ANSWER

Q&A

Prop 218 Public Protest Formats

Juliet Rodriguez, Clerk of the Board, Ventura Regional Sanitation District When conducting Prop 218 hearings, how are you allowing your public to protest when not using a ballot? By written protest that is mailed in? Faxed in? Emailed in?

Andreas Booher, Attorney, Kronick, Moskovitz, Tiedemann & Girard The conservative approach would be to use the method that counts the highest number of protest votes. But in cases of ambiguity I would suggest you reach out to VRSD’s General Counsel for an opinion.

Adam Hofmann, Senior Counsel, Hanson Bridgett, LLP For what it’s worth, it appears Boards can choose to establish any reasonable system for receiving protests and can simply require compliance with that system. The Great Oaks case (sadly no longer citeable because of Supreme Court review) noted that Proposition 218 does not prescribe any specific system and, in fact, does not even require a formal process at all. The agencies I work with tend to adopt rules designed to give owners/payers a reasonably simple opportunity to submit their protests while ensuring against fraudulent or duplicative protests. Balancing these concerns, they generally refuse to accept email and fax, and they provide detailed instructions in their 45-day notice.

Amanda Rice, President, Cambria Community Services District Our district does not accept email or faxed protests. Protest “votes” must be in writing (to count) sent by snail mail, turned in at the district office or handed in to the clerk on the day of the hearing at the meeting of the Board.

Marty Boyer, Owner/Principal, Communication Advantage As a communications specialist with lots of ballot measure experience, my goal is always for the District/agency to use as many platforms and methods of communication as possible to hear from constituents, as well as to reach them with your communications. CSDA Disclaimer: This section is not intended to be legal advice. Members should always seek legal counsel. The information contained here is for general reference purposes only.

Haven’t visited CSDA Communities yet and want to learn more from member discussions? Visit CSDA Communities home page at communities.csda.net for more information!

California Special Districts • July-August 2018

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Public Officials and Gifts: Not Oil and Water By Steven G. Churchwell, Churchwell White, LLP

Shortly after I became FPPC General Counsel, we received a complaint about a state public official receiving a holiday gift that exceeded the annual limit ($250 at the time). I remember the case because the gift was a gold Rolex and the donor was a famous, conservative talk-show host. The official and donor had been college friends, and the official proudly showed it off around the office. This was before biennial ethics training was mandated for all public officials, and the recipient had no idea that a gift from a friend 3,000 miles away with no business before his agency was subject to the gift limit. He sadly returned the watch and the case was closed. Eventually, the FPPC adopted an exception for gifts from a long-time, personal friend, if the gift is unrelated to the official’s duties (known as the “BFF” exception). The challenge is that, like the IRS rules, the exceptions have become numerous, and they were written by lawyers. But do not be intimidated. Almost all of them make sense, and you don’t have to memorize them. There will be no pop quiz – I promise. Just remember that gifts are perfectly legal, and the limit is indexed for inflation (currently $470/year per donor). In the limited space here, I will cover three rules that you should know. 12

California Special Districts • July-August 2018

Gifts and Disqualification

If you accept a gift or gifts from the same donor of $470 or more, this triggers disqualification from making or participating in a decision affecting that donor for 12 months. How does this happen? First, it is lawful in California to “buy down” a gift over the limit within 30 days. Many officials make the mistake of buying a gift down to exactly the $470 limit (e.g., reimbursing the donor $30 for a $500 gift). Second, the donor gives you two gifts in two different years that add up to $470 or more. The problem is that disqualification looks back 12 months before the vote or decision, while the gift limit is based on a calendar year. The solution is to keep a log of any gifts to you by donor, date and amount.

Gifts of Travel

The FPPC wants you to get out of the office and mingle with the public.

How do I know this? Because if you participate in a panel or give a speech (which you should be doing anyway), the FPPC lets you receive: (1) airfare; (2) rental car; and (3) three days of lodging and meals. All you have to do is to report it on your Form 700. There is no $470 limit. The same exception applies to gifts of travel from a 501(c)(3) nonprofit.

Conference Highlight Don’t miss this session in Indian Wells, California! Breakout Session

Gifts and Gifts for Travel: Navigating Through the Jungle of FPPC Rules and Regulations

Gifts from a Donor Not Doing Business in Your Jurisdiction

Unlike a source of income, which you only report on your Form 700 if it is “doing business in the jurisdiction,” you must report gifts from any donor if it is the kind that could do business before your agency. For example, if you receive a $50 box of chocolates from Blue Danube Water Company in Germany, and you work for a water district, you must report the gift (unless you return it or reimburse the donor).

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Presented by Churchwell White, LLP The FPPC gift rules are designed to let third parties help pay for your services and travel. But FPPC fines in this area are increasing. Join presenter Steven G. Churchwell, Former FPPC General Counsel to find out how to be a “gift guru” at your agency.

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Volume 13 • Issue 4

FEATURE

Keynote Speaker

StandOut Leadership... Lead Like You Mean It! 14

California Special Districts sat down with Hall of Fame Keynote Speaker Connie Podesta, who is thrilled about speaking at CSDA’s Annual Conference, and getting our audience excited about how cool psychology is! Most people totally underestimate how powerful psychology is when it comes to achieving bottom line results. Psychology = profits and productivity. It is one of the most empowering things in the world! “People’s number one problem with their job is not their job; it is the people that they have to deal with on the job. It is people they don’t work well with, people they don’t understand, people who have attitudes and are difficult,” said Podesta. “That is where psychology comes in because if you have a better understanding of how to communicate, negotiate, collaborate and solve problems with people then your job is going to be so much easier. In other words, psychology helps solve the people puzzle!” More than ever, Podesta has seen people turning down promotions because they have seen other people in leadership literally been driven crazy trying to deal with their employees, and it is not worth the money. “We want people excited about going into leadership, but they need to go in armed with content and understanding California Special Districts • July-August 2018

LEAD LIKE YOU MEAN IT

of human behavior,” said Podesta. “Otherwise, you go into a very stressful situation without the tools needed to be successful.” The average leader never had a leadership or management course, let alone a psychology course, in their entire life. Bottom line, leaders do not have to teach self-motivated people; they just need to get out of their way, not micromanage, and let them do their job. The determination of a good leader is how you lead your worst employees. “You are not going to be recognized for what you do with your top employers; you could leave your building for a month and they would not know you are gone,” Podesta said. One of the reasons why people are put into leadership positions is because not everyone can be counted on to do their job; therefore, the purpose of leadership is to get those marginal employees up to speed. Connie Podesta shared some of her life experiences that lead her on the journey of becoming an expert in human behavior and leadership development. “Growing up, I kept getting kicked out of class for talking too much and for always joking around,” Podesta shared, “this is very ironic since now my livelihood is being a comedian and a professional speaker. I love to share with audiences that sometimes what people see as our weaknesses, we can turn around to be some of our best strengths.” Twenty five years ago, Podesta began by teaching speech and communication, which lead to her present job as an international keynote, author and coach. She soon discovered that people everywhere had to deal with difficult people and situations that they really did not know how to deal with. She realized early on that if she was going to help people grow in their businesses, then she needed to understand the psychology of human behavior; she had to dig deeper. Podesta shared, “Sometimes people tell me their concerns, but I know that is just level one; there are much deeper things going on.” This lead Podesta to get a graduate Volume 13 • Issue 4

Conference Highlight Don’t miss this keynote speaker in Indian Wells, California! OPENING KEYNOTE PRESENTATION

Connie Podesta Stand Out Leadership…Lead Like You Mean it!

degree in counseling and human relations so when she was helping people change, she had that background. Podesta is presenting on “StandOut Leadership…Lead Like You Mean it!” at CSDA’s Annual Conference. She expounds on this and what attendees will walk away with by first explaining that most individuals stumble onto their first leadership job. They have a job, they are doing well in that job, other people notice and they get their first promotion. Now they are not only responsible for their new job, but other people doing their jobs as well. “These are two different sides of the brain,” Podesta said, “focusing on our own duties and tasks is very different from the ability to lead, motivate, educate, train and inspire other people to do their job.” Unfortunately, not everyone in leadership is required to take a psychology class, which would help them immensely because leadership is all about psychology! Podesta shares, “Psychology is basically an understanding of why people do what they do, say what they say, react the way they react. Psychology is an understanding of what motivates people, what energizes people, what causes people to want to reach their own potential or get in their own and sabotage themselves. Are these not all

In a perfect world all employees would be: high achieving, self-motivated, engaging, team players who see the big picture and always strive to do their best to get the job done on time without complaining. Does that sound like the Twilight Zone? Bottom Line: In the real world many employees simply “meet expectations,” lack initiative, bring their personal life to work, stress over every change and whine about having to WORK….on the job! “Enough!” says Human Behavior and Leadership Development expert Connie Podesta, who has empowered thousands of leaders worldwide with the attitudes, mindsets and strategies necessary to create a team that’s willing, able and excited to get the job done THE RIGHT WAY! With her signature blend of comedy and “tell-it-like-it-is” delivery, Connie takes you inside the minds of even your most difficult employees so you can turn negative attitudes into positive, entitlement into accountability, complacency into productivity, complaining into solutions and “that’s not my job” into ownership. Tuesday, September 25 9:00 – 10:45 a.m.

continued on page 16

FEATURE

things leaders are responsible for doing for employees?” Audiences love Podesta’s leadership sessions because she takes them into the minds of people reporting to them. Generally, we are stuck in our own minds. We know what we want, have our own perception and those generate our leadership style. Maybe half will identify with that leadership style, but probably half will not. To be successful, you must relate to each individual. It is like parenting; anyone who has kids knows that they are totally different though they grew up in the same house and environment with the same rules. You must approach each child differently and what discipline will work for them. The same applies to leadership and management. “Great leaders know how to relate to employees, know what works what doesn’t, what will motivate them and what won’t. They are willing to approach them in a way that makes them grow and produces the most,” said Podesta. “Once you get in your employees’ mind and understand that then it is a game changer!” Though rules and policies

of organizations must be the same, the way we deliver the message, motivate, teach, have conversations must be based on the way they will response - if we want the most of them. “Most of us lead the way we want to be lead and manage other people the way we want to be managed,” said Podesta. If we want people to manage by being hands off… just let me do my own thing; I don’t need any reminders from you; I don’t need any awards then that is how we tend to manage other people with the same hands-off approach. If we love our manager to be involved with us, talk and communicate often with us; we like a lot of reassurance and thumbs up when we do a good job then we tend to be very engaged managers. The problem is that that does not work for all our employees; we cannot manage people the same. That is what Podesta teaches audiences, “the way you would like to be managed is not necessarily the same approach that will work with every one of your employees.” By the time her session is done, our conference attendees will have a better understanding of their own managing style; how to identify other people’s personality so that they can better lead them, coach them, train them, mentor them, have crucial conversations with them, and negotiate with them differently that they normally would. Attendees are going to be excited because they will leave with understanding how to identify each of their employees’ personalities, what

California Special Districts • July-August 2018

LEAD LIKE YOU MEAN IT

they need, what they want, and what style of leadership will motivate that individual employee to reach their potential, to do their job better, and be more effective. “That is a skill that most people in management have never been exposed to,” said Podesta. Podesta has empowered thousands of leaders worldwide with the attitudes, mindsets and strategies necessary to create a team that’s willing, able and excited to get the job done the right way. Her number one tip for success in this: “Stop being a boss and be a leader! There is a huge different between these two things. People who report to you are going to make up their minds very quickly if they WANT to follow your lead or that they feel like they HAVE to follow your lead - then they generally don’t choose to follow your lead.” When people are bossed around and not collaborated with, they do what you say not because they want to but because they are afraid of losing their job or getting demoted - it is fear driven. If we want a successful team, not just doing what we say because they have to we need to be a leader. Leaders create a team of people who want to follow your lead because they respect, trust and believe in you. The amount of work you will getting from these employees is immensely higher that those employees who do the minimal job they have to, the that’s not my job attitude. Podesta continued to share the differences between bosses and leaders, “Bosses are tasked focused and leaders are people focused.” Bosses tell people what needs to be done without giving the big picture. Leaders collaborate; they bring the team in on the big picture, what must happen and listens to the team’s ideas. Leaders make it about the people, their team doing the job rather than just the tasks that needs to be done. “Bosses have workers and leaders have teams. If you are Volume 13 • Issue 4

being a boss you have people who do the work for you. If you are a leader, you work together with your team – it is a team effort,” said Podesta. “A team win is a win for everyone. Bosses order people around; leaders support people.” Bosses say what can you do for me. Leaders say what can I do for you. Leaders remove obstacles for their teams; they ask how can I help you to do your job in the best way possible -more staff, more training? Bosses focus on things that go wrong and tend to blame others. Leaders have respectful discussions to talk through what happened and focus on changes that can help it not happen again. Leaders focus on failure as an opportunity to grow and learn; bosses just get angry. Bosses tend to take credit for what you do. Leaders share the credit and give recognitions to the team. Podesta wants her audiences to know is that how they choose to lead is going to impact productivity by huge amounts. People either believe they HAVE to follow you or they WANT to follow you. Those who HAVE to follow a leader do the minimum; those who WANT to follow a leader will exceed expectation. This is a big difference!

Leaders have respectful discussions to talk through what happened and focus on changes that can help it not happen again. The good news is that Podesta’s leadership sessions don’t just apply to work; she also gives examples of home life. Every leadership skill taught will help attendees deal with relationships inside and outside of work. Finally, Podesta wants our conference attendees to know that she is not the typical conference speaker; she is a comedian and uses comedy and humor as a vehicle to tackle top issues. “When you learn about people, you laugh a lot because you recognize these human behaviors in yourself, your friends, family or colleagues,” said Podesta. Even though there is a ton of content, this session will be a laugh out loud session. See you Tuesday, September 25, at 9:00 a.m. in Indian Wells!

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INTERVIEW

Keynote Speaker

Harnessing Your Power to Create Change California Special Districts interviewed Derreck Kayongo, Keynote Speaker at the CSDA Annual Conference & Exhibitor Showcase. On Wednesday, September 26, Derreck Kayongo will share his remarkable story of transformation to illustrate the power of creativity and observation to solve any challenge in his Special District Risk Management Authority (SDRMA) sponsored keynote session “Harnessing Your Power to Create Change.” As Founder of the Global Soap Project, Kayongo has built a multi-million-dollar venture which takes recycled soap and distributes it through global health programs to people who lack access to it around the world. He breaks down the key factors that have led to his personal success; (S.E.L.F.) Service, Education, Leadership and Faith and shares his account of life as a Ugandan refugee and the turning point which lead him to a brilliant transformation as a social entrepreneur.

He calls upon audiences to stop complaining and to start taking responsibility, to consistently seek opportunities to improve, and most importantly, to maintain faith in yourself and your team to create an environment where everyone is empowered to thrive. He brings you on an emotional journey – there will be tears of joy; most of the time, laughter. But every time, the story is real.

California Special Districts • July-August 2018

You are a former refugee who turned global human rights activist…how did this come about?

When you are a child of 10 years old, living in a beautiful country, you never would imagine there would be an instance that would disrupt everything you had. I grew up in a very well-to-do family then suddenly, we lost everything. With that loss we then became refugees in Kenya, where I grew up. In Nairobi I was taken by a young America women named Marge Campbell of Pittsburg. That gave me the opportunity to not be disappointed because she was really there to help, but that began a long journey for me out of being a regular kid to be a refugee to where I am now. But all of that was taken away in just an instance. All of us go through different things so I am not complaining, but not everyone goes through this kind of disruption and survives and does well. Now I really do appreciate the disruption because some of us use the disruption to grow stronger and become versatile and relevant. You can make two choices: you can look at the situation and say “Wow, I am 18 and not able to survive life” or you can take it and say, “I’m ready to do some powerful things.” So that is what happened. I was 20 years old when I landed and got to the states.

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Your keynote presentation at the CSDA Annual Conference is on “Harnessing Your Power to Create Change.” What is your goal of the presentation and what do you hope attendees will walk away with? Everybody has a story to tell. Some of us are looking for stories to understand better what our calling in life is through other human experiences. That is why we read books like Shakespeare because it has perspective and narrative to define situations we find ourselves in. Is this country what it says it is? Is this a great nation? The answer is “It is!” When you have an African kid come to this country as a refugee with nothing, get an elite education from one of the best schools and do well in business here, it speaks volumes of the vitality and vibrancy of the country. It’s about coming to the United States and finding yourself. It’s not enough to say you’re born here, you must work on building trust with people coming in daily. America is about healthy competition. It is about resilience. It is about the story of everyone. Millions complain that they had to fight to be here, like the Irish American in New York talk about when there were no Irish allowed in restaurants. As an African American, you have to fight to be here. We can bring excuses, but we need to realize that we bring a skill set, resilience, passion and love for the country. This is what it is all about – harnessing power to create change. Each of us have power to change that which should be changed.

Conference Highlight Don’t miss this general session in Indian Wells, California! SDRMA GENERAL SESSION, SAFETY AWARDS, KEYNOTE

Derreck Kayongo Harnessing Your Power to Create Change As Founder of the Global Soap Project, Kayongo has built a multi-million-dollar venture which takes recycled soap and distributes it through global health programs to people who lack access to it around the world. He breaks down the key factors that have led to his personal success: (S.E.L.F.) Service, Education, Leadership and Faith and shares his account of life as a Ugandan refugee and the turning point which lead him to a brilliant transformation as a social entrepreneur. He calls upon audiences to stop complaining and to start taking responsibility, to consistently seek opportunities to improve, and most importantly, to maintain faith in yourself and your team to create an environment where everyone is empowered to thrive. He brings you on an emotional journey –there will be tears of joy; most of the time, laughter. But every time, the story is real. Wednesday, September 26 9:00 – 10:45 a.m.

INTERVIEW

You must learn how to accommodate the shift within your business or local government, and you must create products for the shifts. Could you provide some tips to our readers on how to create change in their communities…how do they get there? I am looking at diversity and inclusion as one of the aspects of change. Did you know that in 50-100 years this country will be brown as we all mix up and become something different? If you are a business or government leader, or someone

looking at demographic shifts that are going to happen, you have got to understand the browning of the country and realize the inclusion that needs to happen to make the market place sustainable. I spoke to a retirement home agency recently that was shifting their narrative from catering to a white only community to catering to African Americans, Latinos, and Asians who are retiring and have the wherewithal. These

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first and now second-generation immigrants are not looking to take care of the mothers and grandmothers in the home as previously done; instead, they are looking for nursing homes that have the cultural intelligence and relevance to take care of their loved ones within their cultural context. If you do not understand that demographic shift, you will not have a business in 50 years in the nursing home space. The idea here is that we need to try to understand the demographics of who is in our business. As local government, if you are firefighters, policemen, or government officials you need to understand the demographic shift in order to police better and effectively. If we understand that and welcome it, America will still be the greatest nation in the world. None of this is happening anywhere in the world, except for the United States. There are over 90 languages spoken in New York City today. If you start a business in New York, chances are you will complete with people that speak several languages. The point is you must understand the demographic shifts, you must learn how to accommodate the shift within your business or local government, and you must create products for the shifts - not holding on to old messages and nuances that are not going to survive the new marketplace.

You mention the importance of (S.E.L.F.) Service, Education, Leadership, and Faith. Could you explain this?

To do the work of creating change, I thought to myself, who does that work? It is someone else, is it me? It is ME. It is myself. If your self is not healthy, both spiritually and physically, if your self is not balanced and centered, if you do California Special Districts • July-August 2018

not have anything that you believe in or do not have a faith in anything, chances are you are not healthy enough to compete in the marketplace. It is all about being grounded, and there are others in the marketplace who are grounded. I use the acronym S.E.L.F.: • Service. Through service you become great. Americans who have spent time serving our country, like those in the Peace Cor had two years in various countries, learned the language and some know the world better than anyone else. Through service, you learn how to fill in the gaps in the communities you want to serve. • Education. You serve, then you get educated. Education gives you leadership; that’s how leaders are born. Leaders are not just born out of hospitals; otherwise, we could go pick up one up at a hospital right now. • Leadership. Leaders are not just learned; it has to do with being grounded. It is about understanding there is something bigger and greater than yourself. Let’s be

humble, and be a servant in your education and in your leadership. • Faith. This is the most important. You must maintain faith in yourself and your team in order to create an environment where everyone is empowered to thrive. You have to have faith in people; that how great things are done. I have not known anyone who was too great that they did it all themselves. The great people are the ones who had faith in others, knowing that they have a contribution, a knowledge base, something you do not have. We are not here to make excuses and run around wondering what the next person is going to be doing. Our job is to understand the power of the talents that surround us and to engage those talents, give them a chance to shine as we manage and become faithful in them. We need to have faith in people; have faith in your team.

Is there anything else you would like to share? PASSION. This presentation is going to be passion driven. We are going to have passion!

To contact Derreck Kayongo, email: derreck@globalsoap.org.

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MOVERS AND SHAKERS

MOVERS& SHAKERS Cordova Recreation and Park District (CRPD) has officially expanded beyond the District’s borders. At CRPD’s monthly Board meeting on Wednesday, April 18, Chairperson Inez Reyes was sworn-in as a Director for the Northern California Region of the California Association of Park and Recreation Commissioners and Board Members (CAPRCBM). Inez Reyes Chairperson Inez Reyes will serve a threeyear term and work with other elected Officers and Directors to further CAPRCBM’s mission of providing education, networking, and advocacy that enhances the role of Commissioners and Board Members. CAPRCBM is a non-profit established in 1968. Affiliated with both the California Park & Recreation Society and the National Recreation and Park Association, and made up of citizen advocate volunteers that – as CAPRCBM puts it – take parks and recreation services seriously, CAPRCBM is the only association of its kind. Chairperson Inez Reyes has been making positive changes and lasting connections in the Cordova Recreation and Park District for more than 10 years. Currently in her third term, her gregariousness and commitment to citizens and CRPD advocates are felt across the District. CRPD’s District Administrator Patrick Larkin says “Chairperson Inez Reyes is a true champion for the Cordova Recreation and Park District. She believes in strong partnerships and recognizes that with them we all become stronger leaders. “

The Isla Vista Recreation and Parks District appointed a new member to the board of directors at Thursday’s meeting after a nine-week long position vacancy. Celene Washington, a second-year sociology major, was selected to join the board for the seven-month term. Washington has volunteered with the I.V. Elementary School and for the Measure O campaign, which in May 2017 secured a special tax that now funds additional parks services in I.V. The newly appointed board member said she is particularly interested in the I.V. Youth Center and engaging with the younger population in the community. “To a certain extent [UC Santa Barbara] students can dominate the community,” Washington said, noting the importance of keeping children a part of the conversation when discussing the needs of the I.V. population. During her time on the board, Washington said she plans to work toward creating more playgrounds for children, as well as organizing an assembly at I.V. Elementary School to talk with students about their thoughts on I.V. parks. 22

Western Municipal Water District (Western) has named Ryan Shaw, a seasoned publicsector leader with nearly 15 years of water resource Ryan Shaw management experience, as its new director of the Water Resources Department. “Ryan’s knowledge of Western coupled with his expertise in water management and policy along with water use efficiency programs made him the ideal candidate to lead the Water Resources Department,” said Western’s General Manager Craig Miller. “Not only does Ryan understand the needs of the District and region, but also he has excellent leadership and customer service skills that will benefit our customers and Western.” Shaw joined Western in 2016 in the position of deputy director of the Water Resources Department. During his tenure, he has been a part of a team that has successfully negotiated two historic local reliability projects: the Santa Ana River Conservation and Conjunctive Use Program (SARCCUP), which provides dry-year water supply reliability, and a long-term water purchase agreement with the City of Riverside, which provides Western with access to roughly 40 percent of its retail water supply. As director of water resources, Shaw will oversee the department’s project and contract management, program compliance, and water and environmental resource functions. Additionally, he will oversee the development and implementation of the District’s Urban Water Management Plan and Watermaster data and reporting.

California Special Districts • July-August 2018

Grossmont Healthcare District The Grossmont Healthcare District (GHD), a La Mesa-based public agency that supports various health-related community programs and services, recently honored La Mesa resident Ally Kellogg with a 2018 Healthcare Hero award. Now in its 12th year, the Healthcare Heroes is GHD’s annual awards program recognizing volunteers who advance the delivery of quality health services in the East County. Kellogg, age 23, volunteers on Saturdays at Sharp Grossmont Hospital in the hospital’s Emergency Department (ED), considered one of the busiest in the state. Her role is to calm anxious visitors whose loved ones are undergoing assessment and treatment behind the darkened glass doors. She also trains other ED volunteers at Sharp Grossmont Hospital. Since 2015, she has logged more than 475 hours of volunteer service at the hospital. As a student at Helix High School in La Mesa, the La Mesa native volunteered more than 300 hours in the school’s sports medicine clinic as an athletic trainer. Kellogg, who currently works as an emergency medical technician for a private company, is planning a career in healthcare, perhaps in physical therapy or as a physician’s assistant. Additional recipients of a GHD 2018 Healthcare Hero award included: • Dee Davis of Alpine, the owner of a mechanical engineering company who volunteers to help victims of rape,

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sexual assault and domestic violence with the Center for Community Solutions of San Diego on its Sexual Assault Response Team; • Rick Doremus of San Carlos, a retired airline industry executive who since 1995 has served as a board member of Home of Guiding Hands, which advocates for people with developmental and intellectual challenges, and their families; • Shawn Kelley of El Cajon, owner of Valley Automotive, an El Cajon auto repair shop, who volunteers with Trauma Intervention Programs of San Diego, a group that responds to crisis situations to offer support to those in need; • Dr. Tryna Ramos, a Kaiser Permanente hospital doctor who volunteers at El Cajon’s nonprofit Volunteers in Medicine, providing medial care to patients without health insurance and mentoring college students who volunteer at the clinic; • Chuck and Jan Vermillion, a retired couple from Spring Valley who volunteer for the American Cancer Society’s “Road to Recovery Program,” offering free rides to medical appointments and treatments for those with cancer. “The purpose of the Healthcare Heroes Awards is to recognize volunteers whose unsung work in healthcare might not otherwise be celebrated,” said Michael Emerson, GHD board president. “We are proud to recognize the 2018 winners and their inspiring commitment to caring for others.”

Each year, the Bay Institute recognizes individuals who have helped improve and inspire conservation of the Bay and its watershed. Awards are given in three categories: education, reporting and extraordinary accomplishment. Whitney Dotson, citizen activist and East Bay Regional Park District board member, will be the recipient of the 2018 Bay Hero Award. Dotson has a long record of activism at the intersection of conservation, environmental justice and water, and for protecting the wetlands of the East Bay shoreline. Created in 2011, the Bay Hero Award honors those whose significant efforts have led to increased protection and restoration of the San Francisco Bay-Delta Estuary.

After working with an executive recruitment firm, the Palos Verdes Library District Board of Library Trustees has hired Jennifer Addington as the new district director, succeeding Kathy Gould who will retire at the end of June after holding the job for more than 14 years. Addington, who has been the district’s deputy director for two years, moves into her new position on July 1. The board chose Addington after a six-month national search during which input from library staff and the public was encouraged. “Trustees agreed that Jennifer was a highly qualified candidate who had proven her librarianship and leadership skills in her role as the district’s deputy director,” said Board President Jim Moore. “My board colleagues and I look forward to working with Jennifer as she implements her vision for the district’s future.” Addington has worked in libraries for 18 years, most of that time with the PVLD. She began with the district as a technical services clerk and quickly moved up the ranks. In 2013, Jennifer left to become deputy director of the Pasadena Public Library. She returned to PVLD in 2016 to assume the newly reinstated position of deputy director.

COMMUNITY CONNECTIONS

Salton Sea Tour

Held in Conjunction with the CSDA Annual Conference & Exhibitor Showcase and the Salton Sea Authority

he Salton Sea Authority (SSA) is a joint powers authority empowered to work in consultation and cooperation with the state of California Natural Resources Agency to restore the Salton Sea. As the largest inland lake in the state of California, the Salton Sea is a vital rest stop for nearly two thirds of all migratory waterfowl species traveling the Pacific Flyway. The Sea’s ecosystem and economy are threatened by rising salinity levels and lowering water elevations. The SSA and its partner agencies – Torres Martinez Tribe, Coachella Valley Water District, Riverside and Imperial Counties, and Imperial Irrigation District – are working tirelessly to establish a healthy, prosperous future for the Salton Sea. This special Salton Sea Tour will provide perspective on Salton Sea issues that impact water security, human health, environmental stability and economic vitality for all Californians. The program will focus on significant progress to 24

revitalize the Sea while also showcasing two amazing points of interest for visitors to this recreational attraction. The first destination on the tour will be the world-famous North Shore Yacht Club, a historical landmark and renowned example of modern architecture. North Shore Yacht Club – playground to the stars located at the lowest lake in North America -- was conceived by visionary Trav Rodgers with the financial backing of Ray Ryan, and the architectural brilliance of Albert Frey. When the North Shore Yacht Club opened in 1962, the $2 million dollar desert oasis was among the largest marinas in Southern California. People from all walks of life came to marvel at the immense beauty of the Salton Sea. The Yacht Club hosted notable celebrities such as the Beach Boys, Jerry Lewis, and the Marx Brothers. The Rat Pack with Dean Martin, Frank Sinatra and Sammy Davis Jr. were regular visitors too. The Yacht Club was the epicenter for epic parties, dances and world class boat races. California Special Districts • July-August 2018

Pre Conference Tour

Salton Sea Authority Tour Tour of the northern part of the Salton Sea: North Shore Yacht Club, State Recreation Area

However, in the 1970’s after a series of floods the North Shore Yacht Club was all but forgotten. Years of weathering, neglect, and vandalism turned the Yacht Club into an unrecognizable eye sore, instead of the desert oasis it was intended to be. In 2009 Riverside County came to the rescue as county officials approved a $3.35 million building restoration project. The restoration was completed in 2010, and Albert Frey’s example of genius was born again at the north end of the Salton Sea. The North Shore Yacht Club is now a state historical landmark. The facility is owned by Riverside County and leased to the Desert Recreation District for use as a local community center. Guests of the Tour will learn more about the challenges and opportunities facing the Salton Sea, and how the state’s 10 year plan for the Salton Sea will address these concerns. Presenters will include Salton Sea experts from California Natural Resources Agency and the Salton Sea Authority. The second and last stop on the tour will allow guests to visit the Salton Sea State Recreation Area and the Interpretive Museum. In Volume 13 • Issue 4

its heyday, this State park drew more annual visitors Yosemite National Park. It still offers some of the best views of the gorgeous Salton Sea. For more information about the Salton Sea Authority: www.SaltonSeaAuthority.org

On this tour you will learn how special districts, counties, and a Native American tribe are working together in partnership with the state and federal agencies to reverse the tragic decline of the Salton Sea, transforming the watershed to establish a healthy and prosperous future. Monday, September 24 10:15 a.m. – 3:00 p.m.

(pre-registration/payment required)

To learn more about the 10-Year Plan of the Salton Sea Management Program: www.resourses.ca.gov/salton-sea

Districts. Cities. States. Nossaman. For 75 years, Nossaman has partnered with public, private, and governmental agencies to provide customized legal strategies. 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. What solutions are you seeking?

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TAKE ACTION

CSDA and CALAFCO Strike Compromise & Local Taxes and Fees Initiative Withdrawn CSDA and CALAFCO Strike Compromise on AB 2258

On June 26, Assembly Member Anna Caballero and the California Association of Local Agency Formation Commissions (CALAFCO) agreed to compromise amendments to AB 2258 (Caballero), a bill that provides state grant funding for LAFCO-initiated studies and actions. The compromise, developed together by CALAFCO and CSDA, provides for a tiered public protest threshold for LAFCO-initiated actions funded by the new grant program established by AB 2258. Amendments to AB 2258 will mirror the signature thresholds currently in California Elections Code 11221. These thresholds range from 10 – 30 percent depending on the number of affected registered voters. The previous version of the bill raised the protest threshold from its current 10 percent level up to a flat 25 percent, regardless of population. CSDA is pleased to support AB 2258 as proposed to be amended, and encourages special districts to support the legislation once the compromise amendments go into print. AB 2258 creates a grant-funding program for LAFCO’s managed by the Strategic Growth Council to fund certain studies and actions. Protests thresholds are the minimum percentage of eligible voters in an affected jurisdiction required to place a LAFCO action on the ballot. A LAFCO action could include various decisions like mergers and consolidations. CSDA appreciates the willingness of both Assembly Member Caballero and CALAFCO to work together with CSDA to find a solution that will empower LAFCOs to do their important work while protecting the voice of local voters. This compromise is a victory for collaboration and partnership, as it not only addresses CSDA’s concerns, but begins the process of improving an important area of public policy for local agencies. Both CALAFCO and CSDA have also agreed to continue the dialogue to attempt to find agreement on a comprehensive review of all protest thresholds going forward. 26

Local Taxes and Fees Initiative Withdrawn

The proposed initiative to put major restrictions on local agency revenue increases was withdrawn by the proponents on June 28, the final day to withdraw initiatives from the November ballot. The “Tax Fairness, Transparency and Accountability Act of 2018” was a broadly written measure that would have affected all local agencies and their communities. It was largely funded by beverage companies, while CSDA joined a coalition of local government and labor advocates in opposition. The Legislature held a joint hearing on June 13 to discuss the initiative and CSDA provided remarks at the public comment portion of the hearing to oppose the initiative. On June 25, AB 1838 was amended as a vehicle for a compromise to the pending ballot initiative. In a deal to get the initiative’s proponent, the California Business Roundtable, to withdraw their initiative, the Legislature passed and Governor Jerry Brown signed AB 1838 on June 28. The compromise measure prohibits the imposition of taxes or fees on non-alcoholic carbonated beverages through the year 2030. Governor Brown expressed in a signing statement that the initiative would have been “far reaching” and parts of it would have been an “abomination.” While CSDA took no formal position on AB 1838, the Association stood strongly in opposition to the “Tax Fairness, Transparency, and Accountability Act of 2018” and supported the withdrawal of the devastating initiative from the ballot. Had the initiative been placed on the November ballot and approved by voters, it would have severely restricted the ability to raise local and state taxes and fees. AB 1838 satisfied the proponents of the “Tax Fairness, Transparency and Accountability Act of 2018” but major healthcare groups are now working on a response to the bill. Healthcare organizations such as the California Medical Association are working towards an initiative for the 2020 ballot that would impose a statewide soda tax and amend the California Constitution to allow local governments to impose soda taxes. Although a specific soda tax would likely have little to no impact on special districts, CSDA will continue to monitor any suggested initiatives that may affect special districts’ ability to provide essential services to communities.

TAKE ACTION Summer • Meet with each of your local legislators in their district offices. Find the legislators representing your district by visiting csda.net and clicking on “My Advocacy” under the “Advocate” drop-down menu. Contact CSDA if you need help scheduling a meeting. • Respond to CSDA “Calls to Action” on priority legislation. • Promote the Districts Make the Difference video contest to your local schools and access promotional materials at www.DistrictsMakeTheDifference.org.

California Special Districts • July-August 2018

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Leadership Under Fire: Managing Your District’s Reputation Like Your Job Depends on It By Jerry Azevedo, partner with Hermocillo-Azevedo Strategic Communications LLC

he reputation of an organization cannot be unbound from the reputation of its leader. And vice versa. Steve Jobs was the spirit of Apple. Kenneth Lay was the embodiment of Enron. William Mullholland stood for the personality of the Los Angeles Department of Water and Power. Though a leader’s influence on an organization’s reputation is deep and complex, their responsibility in a crisis can be simply stated: “The buck stops here.” Another phrase applies when issues or decisions never reached the senior executive level before exploding into crisis. For the public, it is enough that the controversy happened “on their watch.” For crises that are poorly managed, the cumulative damage of the initial crisis and a poorly-managed response can be enough for the leader’s job to be at risk.

California Special Districts • July-August 2018

Savvy leaders understand that they are ultimately accountable for both the successes and failures of their organizations, especially during times of crisis and upheaval. As the public’s trust in “institutions” (especially governmental institutions) continues its decadeslong decline, the stakes for leaders in safeguarding their district’s reputation have never been higher. Some years ago, we advised the leader of a public university system where a technology procurement was facing delays and massive cost overruns. Even though he didn’t oversee the IT department, some lawmakers called for this leader’s resignation. In short, the “buck stops here” mentality frequently overshadows actual lines of responsibility. We took this assignment because we understood that the leader had built strong relationships within his organization and established a clear mission and shared set of values for how they would achieve this mission. This fact enabled us to mobilize campus leaders and appointed board members to take a firm stand against these resignation demands, which ultimately went nowhere. In another case, we declined an opportunity to advise a county whose senior leaders were under attack from community groups and the local news media. Our assessment was that there was a deep lack of trust with their elected board and members of the public. These strained and broken relationships made even incremental progress to address the controversy virtually impossible. Editorials in the local newspaper ultimately called for the county executive’s resignation and that of another executive. For general managers, fire chiefs and other senior leaders of special districts, the relationship between the reputation of leader and their organization is no less intertwined than it was for Steve Jobs and Apple. And that connection is strongest during times of controversy or crisis, which can come at any time from any direction. Investigative reporters. Ex-employees. Union representatives. Challengers for Volume 13 • Issue 4

elected board positions. Unhappy customers. Public watchdogs. Each of these could launch an attack on a special district. All wield two powerful tools to make their attack: California’s Public Records Act (PRA) and the Internet/social media. Together, these tools enable the collection of a special district’s most sensitive information and the ability to broadcast that information to the community with a biased and critical slant. In our experience, there are six key factors in a leader’s ability to protect their organization’s reputation and maintain public trust through a crisis, most of which happen long before a crisis hits: 1. Establish clear mission and values: When a crisis unfolds, an agency’s mission and values become its touchstones. Values frequently revolve around customer service, transparency and acting with integrity. Invariably, no agency sets out to make an error or break the public’s trust. That is why organizations fall back on their core mission of “why we exist.” It is the leader’s job to ensure that its words and actions are aligned with the mission and values. 2. Empower (and demand) the organization to live its mission: Having a clear mission and set of values is

Conference Highlight Don’t miss this session in Indian Wells, California! Breakout Session

From Managing Risk to Managing Reputation Presented by Hermocillo-Azevedo Strategic Communications Effective communication during times of crisis is vital for special districts to protect public safety, build trust and protect reputation. How can special districts – especially districts without full-time spokespersons – best prepare themselves to manage communications in a crisis? In this session, consultants will discuss how a risk management approach to crisis communications planning can create the right team, process and tool for effectively managing threats to the operations and reputations of special districts. Wednesday, September 26 3:45 – 5:00 p.m.

continued on page 30

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not enough. If district staff knows “why we exist,” they must also know the “how we live” our mission in their everyday work. Effective leaders empower, enable and encourage staff to realize the organizational mission in their individual way, whether they handle billing, field operations or media relations. It’s important to note that the vast majority of “reputational crises” fall under the category of “mismanagement,” which often occurs when mission and values become unclear. 3. Integrate the district’s operational areas: Crisis communicators confront one constant in organizations in crisis: siloed units that fail to communicate with each other. Integrated organizations that consistently communicate can identify and address issues at the earliest stages, long before they grow into a crisis. Even the best leaders – on their own – cannot see or hear everything or conceive of every potential problem on the horizon. Establishing a weekly or monthly meeting

of unit leaders can be an effective tool for scanning the horizon. 4. Encourage candid input from within and outside the organization, and act on it: Critics often have had negative prior experiences with the district, either as an insider or an outsider. Leaders should build pathways to true engagement. Not only can this build goodwill during times of crisis, it can also alleviate issues before they hit crisis stage. Consider conducting “town halls” or forming a “kitchen cabinet” to listen to diverse perspectives. 5. Build sincere relationships with the media: If your first conversation with a reporter is mid-crisis or responding to a PRA request, half the battle has been lost. Effective leaders make it a priority to develop relationships with reporters, editorial staff, publishers, and radio hosts so they understand your district and the work you do. Show them your “best days” so that when a crisis

strikes, journalists can work from a wellinformed viewpoint and give leaders the benefit of the doubt. 6. Plan: Experienced leaders understand that crises are inevitable, even for well-run districts. Rather than deny their occurrence, leaders should demand that their organization identify the people and protocols that should be followed in the event of a crisis. Although it takes time away from everyone’s day job, crisis planning exercises lead not just to better preparation, but better operations, as everyone understands what it takes to prevent the reputational damage that a crisis can have on the district. Of course, when a crisis arises, a different set of leadership skills come to the fore: decisive action, the ability to establish and convey a clear narrative and charting a course for what comes next. The ability for a leader to manage a crisis, however, is established in the everyday management of their agency and long before the crisis hits.

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California Special Districts • July-August 2018

DISTRICT OF DISTINCTION ACCREDITATION

TAKE YOUR DISTRICT TO THE NEXT LEVEL.

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The District of Distinction Accreditation is designed as a way for districts to highlight their prudent practices important to effectively administer and govern a special district. In a time when proper fiscal management and responsibility in public agencies is paramount, it has become increasingly important to demonstrate that districts have sound fiscal management, transparency, and governance policies/practices in place. Apply today! 1112 I Street, Suite 200, Sacramento, CA 95814 Volume 13 • Issue 4

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LEGAL BRIEF

Local Public Agency Advocacy: The Line Between Information and Campaigning By Craig Steele, Shareholder, Richards, Watson & Gershon

Local government agencies and officials are often keenly interested in legislative and administrative actions by other government entities; and perhaps more so in the actions of the voters. Whether supporting or opposing legislation or administrative action, or informing the voters about the importance of a ballot measure, local government officials can find themselves competing with multiple interest groups for the attention of legislators, decision-makers and voters. The laws that regulate advocacy by local government agencies are more restrictive than laws that govern private advocates. Courts view the use of public resources to generate impressions of support on one political side or the other as a “distortion” of the political process1. It’s one thing to state 32

the position of an agency directly, such as through the agency’s lobbyist or legislative testimony, adopting a resolution of board support for a ballot measure, or distributing factual information to constituents. But using public funds to campaign for or against a ballot measure, or to seek “grass roots” support for a bill, crosses a legal line that can have significant consequences for the agencies and public officials involved. Admittedly, that line is not always clear. Some agencies have nestled up against it in recent years, especially in expanding the use of “informational” communications to voters about revenue-related ballot measures. Courts tend to define the line in terms of what has been called a “dichotomy” between public agencies’ informational activity (permitted) and campaign activity (not)2. The line starts with a pretty straightforward pair of statutes. Government Code Section 54964 prohibits officers, employees or consultants of local agencies from spending or authorizing the expenditure of public funds to support or oppose a ballot measure or California Special Districts • July-August 2018

candidate. That statute does not prohibit an “accurate, fair and impartial” presentation of relevant facts about a ballot measure to voters. Government Code Section 8314 makes it illegal for local officials and staff to use public resources for campaign or personal purposes. These laws impose personal criminal and civil liability on those who violate them. The statutes mirror the California Supreme Court’s holding in a leading case setting forth the rules against partisan government involvement in elections. In Stanson v. Mott3, the Court found the expenditure of public funds to support State bond measures was improper, and held: “[A]t least in the absence of clear and explicit legislative authorization, a public agency may not expend public funds to promote a partisan position in an election campaign ...”45

Conference Highlight Don’t miss this session in Indian Wells, California! Breakout Session

Public Agency Advocacy: The Rules Regarding Lobbying and Ballot Measures Richards Watson & Gershon Increasingly, public agencies need to influence legislative policy decisions to effectively carry out their missions. Lobbying and educating voters about critical issues are important tasks, but the laws and regulations that govern public agency activity in those areas are complex. This session will provide an overview of the most important areas of the law and help public agency employees know when to ask for legal advice. Tuesday, September 25 11:00 a.m. – 12:15 p.m.

Apart from official ballot arguments and other materials authorized by the Elections Code, there is no legislative authorization for local public agencies to spend public money to promote or defeat a ballot measure or a candidate. However, the Stanson court recognized that public funds may be spent for “informational purposes,” to provide the public with a fair and impartial presentation of relevant information. Problems sometimes arise in attempting to distinguish improper “campaigning” from proper “informational” activities. As agencies have expanded outreach efforts, courts and lawyers have tried with mixed success to define which type of communication is which. Some impermissible campaign communications are obvious: words like “vote for” or “vote against” are “express advocacy” that don’t belong in public agency communications6. Bumper stickers and buttons are campaign items. Otherwise, without express advocacy, when a communication or activity about a ballot measure is not clearly campaign or informational activity, the following factors make it more likely to be deemed appropriate informational activity: 1. The communication is part of a regular pattern of communication between the public agency and constituents, such as a periodic newsletter, and not a unique communication immediately before an election. Graphics, color and design are similar to other publications. 2. The communication conveys the views of the agency in a moderate tone, without overly emotional warnings about what may happen if the measure does not pass. 3. The content of the communication is based on verifiable and publicly available facts, such as agency studies or staff reports. continued on page 34 Volume 13 • Issue 4

LEGAL BRIEF

4. The communication explains a voting process, election deadlines or encourages non-partisan activity such as registering to vote7. 5. The communication does not assume that the measure will pass or fail; and uses words like “if measure A passes” rather than “when measure A passes.” 6. If the content is fact-based, true and moderate in tone, the failure to include opposing arguments is not necessarily improper8. Given those factors, it seems that if a communication looks and sounds like a typical, consistent, moderate and factual communication from a public entity and contains no express advocacy, it is likely permissible, even if it relates to a ballot measure. If it looks or sounds more like a campaign activity, either through express advocacy or atypical timing, style or type, the communication is likely not permissible. This informational/campaign distinction is relevant to lobbying efforts as well. Local officials have the authority to directly lobby the Legislature, Congress, agencies and individual decision-makers to advocate for or against decisions that the local legislative body deems to be either beneficial or detrimental to the local agency9. However, the law does not allow public agencies to use public funds for “grass roots lobbying.” In a “grass roots” lobbying effort, the lobbying party communicates with the public through various means

and urges them to contact legislators with messages for or against legislative proposals. Private groups frequently do this; public agencies may not. Spending public funds on a “grass roots” lobbying campaign is banned under the same theory that prohibits the use of public funds to influence voters in an election10. Courts, and the California Attorney General, have found that “grass roots lobbying” by public agencies is illegal because public funds cannot be used to create a distorted appearance of public support or opposition11. Advocacy on behalf of your local agency is important and legal, as long as those activities stay on the informational side of the line. Agencies may tell their own stories, directly to the appropriate audience, in a moderate, factual and consistent way. 1. Stanson vs. Mott(1976) 17 Cal.3d 206, 217. 2. Vargas v. City of Salinas (2009) 46 Cal.4th 1, 30,34 (citing Stanson v. Mott (1976) 17 Cal.3d 206, 222-23). 3. Stanson v. Mott (1976) 17 Cal.3d 206. 4. Id. at 209-10. 5. Id. at 221. 6. Vargas, supra; 46 Cal.4th 1 at 8. 7. Schroeder v. City Council of Irvine (2002) 97 Cal.App.4th 174, 187-89 (upholding significant city expenditures for voter registration and information directly connected to an election). 8. See generally, Vargas, supra (as to tone, timing and tenor);Schroeder, supra, (as to nonpartisan and voter registration communications); Peninsula Guardians, Inc. v. Peninsula Health Care Dist. (2011) 200 Cal.App.4th 1108 (as to tone, content and design issues). 9. For most special districts, see Cal. Govt. Code § 53060.5 or the enabling authority. 10. Miller v. Miller (1978) 87 Cal.App. 3d 762, 768 (citing Cal. Govt Code § 50023; Stanson v. Mott (1976) 17 Cal.3d 206, 218). 11. See, 42 Ops.Cal.Atty.Gen. 25 (1963) (the mailing of information and recommendations regarding pending welfare legislation to voters at County expense was not permitted by statute); 66 Ops.Cal.Atty.Gen. 186 (1983) (County funds may be spent under Cal. Govt. Code Section 50023 only to “attend” the legislature and “present information”).

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Volume 13 • Issue 4

Meyers Nave Breakout Session

Best Practices for Recruiting, Hiring, Negotiating, Evaluating, and Terminating the Board’s General Manager. Wednesday, September 26 11:00 a.m. – 12:15 p.m.

MANAGING RISK

Exposed to Ticks in Your Working Environment? Florida and Mexico, and increasingly, in Canada. The blacklegged tick (Ixodes scapularis), also known as the deer tick, carries the bacteria that causes Lyme infection. The same tick also can spread other diseases, including babesiosis, anaplasmosis, and Powassan virus -- other diseases on the rise in the U.S.

Here’s more about the disease andStaff what to CSDA Board and expect this year and beyond.

s the summer season starts and the weather continues to heat up, with outdoor activity the exposure to tick bike has increased. In addition many District’s require employees to work in outdoor environments where employees can be exposed to ticks. The following article provides some general information on tick bites and the resulting Lyme disease condition. The black-legged tick is on the move. And as it continues to expand its range into the southern and western U.S. and into Canada, it’s likely that the number of Lyme disease cases in North America will climb, experts say. A recent CDC study found that cases of Lyme increased more than 80% between 2004 and 2016 -- from 19,804 to 36,429. Those are the reported cases. The CDC estimates there are more than 300,000 cases of Lyme infection in the U.S. each year -- or 10 times as many as what is reported. “There’s obviously year-to-year bouncing around, but the trend line is upward,” says John Aucott, MD, director of the Johns Hopkins Lyme Disease Clinical Research Center in Baltimore. “It won’t stop in the foreseeable future.” Most cases are clustered in 14 states in the Northeast and Upper Midwest, but Lyme has been reported as far south as 36

What is Lyme disease? Lyme disease is caused by bacteria, Borrelia burgdorferi that are transmitted to humans through a bite from an infected black-legged or deer tick. Symptoms can occur anywhere from 3 to 30 days after the bite and can be wideranging, depending on the stage of the infection. In some cases, symptoms can appear months after the bite. The chances you might get Lyme disease from a tick bite depend on the kind of tick, where you were when the bite occurred, and how long the tick was attached to you, the CDC says. Black-legged ticks must be attached to you for 36 to 48 hours to transmit Lyme disease. If you remove the tick or ticks within 48 hours, you aren’t likely to get infected, says Cleveland Clinic infectious disease specialist Alan Taege, MD. What are the symptoms of Lyme disease? Early signs and symptoms include fever, chills, headache, fatigue, muscle and joint pain, and swollen lymph nodes -- all common in the flu. In up to 80% of Lyme infections, a rash is one of the first symptoms, Aucott says. Without treatment, symptoms can progress. They might include: • Severe headache or neck stiffness • Rashes on other areas of the body • Arthritis with severe joint pain and swelling, particularly in the knees • Loss of muscle tone or “drooping” on one or both sides of the face. • Heart palpitation or an irregular heartbeat • Inflammation of the brain and spinal cord • Shooting pains, numbness, or tingling in the hands or feet What does the rash look like? About 20% to 30% of Lyme rashes have a “bull’s-eye” appearance -- concentric circles around a center point -- but California Special Districts • July-August 2018

most are round and uniformly red and at least 5 centimeters (about 2 inches) across, Aucott says. “Most are just red,” he says. “They do not have the classic ring within a ring like the Target logo.” The rash expands gradually over a period of days and can grow to about 12 inches across, the CDC says. It may feel warm to the touch, but it rarely itches or is painful, and it can appear on any part of the body. How small are ticks? TIcks come in three sizes, depending on their stage of life. Larvae are the size of grains of sand, nymphs the size of poppy seeds, and adults the size of an apple seed. How is Lyme disease diagnosed? Doctors diagnose it based on symptoms and a history of tick exposure. Two-step blood tests are helpful if used correctly. But the accuracy of the test depends on when you got infected. In the first few weeks of infection, the test may be negative, as antibodies take a few weeks to develop. Tests aren’t recommended for patients who don’t have Lyme disease symptoms. Aucott says the most promising development in the fight against Lyme disease are better diagnostic tests that are accurate in the first few weeks after exposure. The earlier the treatment, the less likely the disease will progress. Aucott says he expects the tests to be available soon. Doctors may not recognize symptoms, especially those who practice in areas where Lyme infection isn’t prevalent, and up to 30% of the infections are not accompanied by a rash. What are the stages of Lyme infection?

There are three stages: • Early localized Lyme: Flu-like symptoms such as fever, chills, headache, swollen lymph nodes, sore throat, and typically a rash that has a “bull’s-eye” appearance or is uniformly round and red and at least 5 centimeters in size • Early disseminated Lyme: Flu-like symptoms that now include pain, weakness or numbness in the arms and legs, vision changes, heart palpitations and chest pain, a rash, and facial paralysis (Bell’s palsy) • Late disseminated Lyme: This can occur weeks, months, or years after the tick bite. Symptoms might include arthritis, severe fatigue and headaches, vertigo, sleep disturbances, and mental confusion. While experts don’t understand it, roughly 10% of people treated for Lyme infection do not shake the disease. They may go on to have three core symptoms -- joint or muscle pain, fatigue, and short-term memory loss or mental confusion. This is called post-treatment Lyme disease syndrome. It’s considered controversial because its symptoms are shared with other diseases and there isn’t a blood test to diagnose it, Aucott says. There are theories as to why Lyme symptoms become chronic. One is that the body continues fighting the infection long after the bacteria are gone, much like an autoimmune disorder. How is Lyme disease treated? Antibiotics are used to treat early stage Lyme infection. Patients typically take doxycycline for 10 days to 3 weeks, or amoxicillin and cefuroxime for 2 to 3 weeks. In up to continued on page 38

SDRMA Board and Staff Officers

Staff

JEAN BRACY, SDA, PRESIDENT, Mojave Desert Air Quality Management District

LAURA S. GILL, CPA, Interim Chief Executive Officer

ED GRAY, VICE PRESIDENT, Chino Valley Independent Fire District

C. PAUL FRYDENDAL, CPA, Chief Operating Officer

SANDY RAFFELSON, SECRETARY, Herlong Public Utility District

DENNIS TIMONEY, ARM, Chief Risk Officer

Members of the Board DAVID ARANDA, SDA, Stallion Springs Community Services District MIKE SCHEAFER, Costa Mesa Sanitary District ROBERT SWAN, Groveland Community Services District TIM UNRUH, Kern County Cemetery District No. 1

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.

Volume 13 • Issue 4

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 ALEXANDRA SANTOS, HR/Health Benefits Specialist II HEIDI SINGER, Claims Examiner I MICHELLE HALVERSON, Accountant KAYLA KUHNS, Member Services Specialist I TERESA GUILLEN, Member Services Specialist I Special District Risk Management Authority 1112 I Street, Suite 300, Sacramento, CA 95814 tel: 800.537.7790 • www.sdrma.org

90% of cases, the antibiotic cures the infection. If it doesn’t, patients might get other antibiotics either by mouth or intravenously. For early disseminated Lyme disease, which may happen when a Lyme infection goes untreated, oral antibiotics are recommended for symptoms such as facial palsy and abnormal heart rhythm. Intravenous antibiotics are recommended if a person has meningitis, inflammation of the lining of the brain and spinal cord, or more severe heart problems. In latestage Lyme, a patient may receive oral or intravenous antibiotics. Patients with lingering arthritis would receive standard arthritis treatment. There is no treatment for posttreatment Lyme disease syndrome. “Ten percent of people don’t get better after antibiotics,” Aucott says. “We think it’s very significant if 30,000 people a year don’t get better.”

Who is likeliest to get Lyme disease? Infection is more common in males up to age 15 and between the ages of 40 and 60, says Taege. “These are people who are more likely to play outside, and go camping, hunting, and hiking,” he says. Aucott adds that Lyme infection drops off in older teens and those in their 20’s “because they’re inside on their computers.” Older adults, he says, tend to have more time to work in their backyards, which is where most Lyme infection is transmitted. What’s driving tick expansion? Scientists point to a variety of causes for the spread of Lyme infection. Among them are reforestation, especially in the Northeast U.S., where Lyme disease is more prevalent; climate change and temperature extremes; suburbanization; and more exposure to the white-tailed deer, which is the black-legged tick’s

favorite mode of travel. “Ticks have a pretty long life cycle, lasting 2-3 years, and typically don’t move very far within their lifetime, so it takes a while to see large changes,” he says. Deer and white-footed mice, which transmit Lyme disease to ticks that bite them, are moving closer to humans as their habitats disappear, says Taege. Ticks don’t mind dogs, either, which carry them into homes and spread them to their humans. Another reason: Warmer weather and mild winters may bring more people outside, raising their chances of being bitten, particularly in Lyme-prone areas, Taege says. “Whether you believe in global warming or not, we have longer, warmer summer months, and people are outdoors more,” says Taege. “We’ve seen an expansion [of ticks] in areas in which the vectors live, and we’ve slowly seen

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California Special Districts • July-August 2018

more Lyme disease.” That doesn’t mean you should be afraid of outdoor activities, as long as you take precautions to avoid tick bites, Aucott says. What’s the best way to prevent a tick bite? Ticks can’t fly or jump, but instead live in shrubs and bushes, and grab onto someone when they pass by. To avoid getting bitten: • Wear pants and socks in the woods, areas with lots of trees, and while handling fallen leaves • Wear a tick repellent on your skin and clothing that has DEET, lemon oil, or eucalyptus. • For even more protection, use the chemical permethrin on clothing and camping gear. • Shower within 2 hours after coming inside, if possible. • Look at your skin and wash ticks out of your hair. • Put your clothing and any exposed gear into a hot dryer to kill whatever pests might remain. How do you know if you’ve been bitten? Given that the ticks are the size of a poppy seed, you’ve got to have pretty good eyes. The CDC recommends that if you’ve been walking in the woods, in tall grass, or working in the garden, check your skin afterward, ideally in the shower or bath. That way, you’ve removed your clothes, which may carry ticks, too. What do you do if there’s a tick under your skin? Remove it with a pair of fine-tipped tweezers as soon as possible, pulling upward with steady pressure. If parts of the tick remain in the skin, also try to remove them with the tweezers. After everything is out, clean the bite area with rubbing alcohol or soap and water. Mead says you’re not likely to get infected if you remove the tick within 36 to 48 hours. Some people have an allergic reaction to ticks, so they’ll notice a bite right away. “Ticks have a pretty long life cycle, lasting 2-3 years, and typically don’t move very far within their lifetime, so it takes a while to see large changes,” he says. Deer and white-footed mice, which transmit Lyme disease to ticks that bite them, are moving closer to humans as their habitats disappear, says Taege. Ticks don’t mind dogs, either, which carry them into homes and spread them to their humans.

Volume 13 • Issue 4

Another reason: Warmer weather and mild winters may bring more people outside, raising their chances of being bitten, particularly in Lyme-prone areas, Taege says. “Whether you believe in global warming or not, we have longer, warmer summer months, and people are outdoors more,” says Taege. “We’ve seen an expansion [of ticks] in areas in which the vectors live, and we’ve slowly seen more Lyme disease.” That doesn’t mean you should be afraid of outdoor activities, as long as you take precautions to avoid tick bites, Aucott says. What’s the best way to prevent a tick bite? Ticks can’t fly or jump, but instead live in shrubs and bushes, and grab onto someone when they pass by. To avoid getting bitten: • Wear pants and socks in the woods, areas with lots of trees, and while handling fallen leaves • Wear a tick repellent on your skin and clothing that has DEET, lemon oil, or eucalyptus. • For even more protection, use the chemical permethrin on clothing and camping gear. • Shower within 2 hours after coming inside, if possible. • Look at your skin and wash ticks out of your hair. • Put your clothing and any exposed gear into a hot dryer to kill whatever pests might remain. How do you know if you’ve been bitten? Given that the ticks are the size of a poppy seed, you’ve got to have pretty good eyes. The CDC recommends that if you’ve been walking in the woods, in tall grass, or working in the garden, check your skin afterward, ideally in the shower or bath. That way, you’ve removed your clothes, which may carry ticks, too. What do you do if there’s a tick under your skin? Remove it with a pair of fine-tipped tweezers as soon as possible, pulling upward with steady pressure. If parts of the tick remain in the skin, also try to remove them with the tweezers. After everything is out, clean the bite area with rubbing alcohol or soap and water. Mead says you’re not likely to get infected if you remove the tick within 36 to 48 hours. Some people have an allergic reaction to ticks, so they’ll notice a bite right away. © WebMD Article Reviewed by Neha Pathak, MD on April 25, 2018 Please contact SDRMA Chief Risk Officer Dennis Timoney, if you have any questions.

MONEY MATTERS

Impact Fees: Breaking New Ground Doesnâ&#x20AC;&#x2122;t Need to Break the Bank

By Russell Powell, Senior Vice President, Economic & Planning Systems, Inc. (EPS)

evelopment impact fees (a.k.a., impact fees) are one of many infrastructure financing tools available to cities, counties, special districts, and school districts. Impact fees provide a funding mechanism for new public infrastructure and facilities required to serve new development in California communities. Development impact fees are not to be used to fund existing infrastructure deficiencies and are not intended to fund reconstruction of existing infrastructure currently serving existing development. This article describes how development impact fees are implemented, current challenges threatening impact fees, and best practices for special districts in implementing impact fees.

Overview

Special districts are allowed to charge and collect development impact fees, or development impact mitigation 40

fees, under the Mitigation Fee Act (Government Code 66000, et seq.) [Mitigation Fee Act]. Such fees are imposed by public agencies to mitigate the costs of providing infrastructure and facility improvements needed to serve new development. Development impact fees are implemented to ensure that new development pays a proportionate share for infrastructure and facilities required to serve such new development. Special districts may consider and adopt development impact fees programs, but only public agencies with land use authority (such as cities and counties) may adopt and collect such fees. As such, in most instances, a special district will need to work with cities or counties that have land use authority over the territories of the special district. Typically, development impact fees are more prevalent in areas of the state where significant new residential and nonresidential development is occurring. However, special districts

in areas where growth is moderate may use development impact fees to provide incremental improvements to infrastructure and facilities that serve new residents or businesses. Development impact fees may be used to construct water treatment and distribution facilities, wastewater treatment and collection facilities, parks, public facilities (such as fire stations), and to acquire land for public uses. As with many current public infrastructure funding programs available to public agencies, the Mitigation Fee Act was enacted to offer local agencies an alternative local funding source for public infrastructure after the passage of Proposition 13. Economic development at the local level often requires the extension of public infrastructure and facilities to unoccupied lands to spur new growth in a community. With the passage of Proposition 13, the voters seemed to California Special Districts â&#x20AC;˘ July-August 2018

be telling their local leaders that all new growth should be paid for by those advocating for such new developments. As a result, for the last 40 years, the cost of most new development in California has been borne by new development. But this cost is necessarily also passed along to new residents in the form of increasing costs of housing. Development impact fees enable local agencies to allocate the cost of building new infrastructure and facilities to new development equitably. When implementing a new or updated development impact fee, special districts should first identify all infrastructure and facilities that must be constructed to serve new development. Careful consideration needs to be given to the analysis of improvements required to serve new development compared to the costs of replacing aging infrastructure and facilities. When establishing a development impact fee, the Mitigation Fee Act stipulates that special districts will need to: • Identify the purpose of the fee. • Identify how the fee is to be used. • Determine how a reasonable relationship exists between the fee’s use and the type of development project on which the fee is imposed. • Determine how a reasonable relationship exists between the need for the public facility and the type of development project on which the fee is imposed. • Demonstrate a reasonable relationship between the amount of the fee and the cost of public facility or portion of public facility attributable to the development on which the fee is imposed. In preparing to establish a development impact fee, the public agency needs to identify land use assumptions for growth areas in the special district. In identifying future growth areas, a district will be able to determine infrastructure or facility improvements required to serve the new development. To the extent a district has existing capacity to absorb new growth, a development impact fee may be established to fund the costs of “buying in” to an existing facility, or to help pay debt service for such facilities. Once established, a development impact fee also may be used to fund the annual costs of administering the fee program. Administrative costs would include accounting costs, all public reporting requirements, and the cost of implementing and updating the development impact fee periodically.

Development Impact Fee Nexus Study

A special district seeking to implement new or updated development impact fees must prepare, or have prepared, and Nexus Study which will demonstrate the nexus between the amount of the fees to be imposed and demonstrate the reasonable relationship between the amount of the fee and

Volume 13 • Issue 4

the cost of public facility or portion of public facility attributable to the development on which the fee is imposed. The Nexus Study should address the following topics: • Identify Capital Improvements to be included in the Nexus Study fee analysis: • Identify those facilities that specifically benefit new development. • Identify those facilities that are intended to serve existing development. • Develop costs for all Capital Improvements and allocate costs of facilities benefiting new development and those serving existing development. • Identify new development to be served by Capital Improvements. • Develop a reasonable cost allocation methodology that allocates costs to various land use categories (residential, commercial, office, industrial, etc.). • Consider the addition of an administrative cost component for the annual administration of the fee program and costs of preparing the Nexus Study and future updates to the fee program. continued on page 42

CSDAFC Board and Staff Officers JO MACKENZIE, PRESIDENT, Vista Irrigation District PAUL HUGHES, SECRETARY, South Tahoe Public Utilities District MATTHEW MCCUE, TREASURER, Mission Springs Water District

Members of the Board ALEX BRANDON, Phelan Pinon Hills Community Services District GEORGE EMERSON, Goleta Sanitary 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, Kutak Rock LLP SAUL ROSENBAUM, Prager & Co., LLC DEBORAH SCHERER, BNY Mellon Trust Co., NA NICOLE TALLMAN, Brandis Tallman, LLC

Staff NEIL MCCORMICK, CEO CATHRINE LEMAIRE, Program Manager BETH HUMMEL, Executive Assistant RICK WOOD, Finance & Administrative Director

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

It is highly recommended that special districts share the findings and results of the Nexus Study with cities or counties that must implement the fee program on behalf of the special district. At any time, a given special district fee will be just one of many development impact fees collected to fund infrastructure and facilities. Consideration of a special district’s fee will occur within the context of the suite of existing or proposed fee programs within a land use jurisdiction. In a review of regional impact fees for the Sacramento area, a typical mix of impact fees by purpose or use is shown in the chart below. The percentages by purpose or use may vary by region in California. Once a special district proposed fee program is vetted with enabling land use agencies, the development industry and other local stakeholders should be consulted before the adoption of a development impact fee program. A public hearing is required before the approval of a development impact fee program. Meeting with all stakeholders before the public hearing can assist the special district to identify and address any concerns before and at the public hearing.

Some Communitywide Considerations for Implementing Fees

Implementation of, or increases to, existing impact fees will cause initial economic impacts for the development community. A wellconsidered outreach program will help to alert the development community to potential impacts, giving them time to integrate the impact fee costs into the cost of new development. Some special districts have chosen to implement new impact fees incrementally over time to allow costs on the impact fees to be slowly integrated into the cost of new construction. Some public agencies choose to not implement impact fees on certain types of new development (such as

retail or industrial) to encourage economic development for job-inducing or revenue-inducing land uses. Other agencies suspend impact fee programs during economic downturns. The costs of facilities included in impact fee programs must be allocated equitably to all benefiting land uses. If impact fees are increased over time, not collected for certain land uses, or suspended for a period of time, the “lost” impact fee revenues cannot be reallocated to other uses or future development. The public agency must acknowledge that such “lost” impact fee revenues will need to be replaced with other available agency funds, such as the General Fund.

Capacity for Infrastructure Financing

The illustration below identifies the typical cost components for a prototypical detached single-family residential unit. As shown, typically

backbone infrastructure costs (many of which may be collected as development impact fees) range between approximately 10 and 20 percent of the total finished home sales value. In this most recent economic cycle, costs for backbone infrastructure have been steadily rising. Concurrently, most of the other cost components have also risen at equal or greater rates than infrastructure costs. In particular, the physical costs to construct residential dwelling units have increased at least 5 to 10 percent per annum in the last several years, depending on the types of infrastructure or facility. An example of the typical spread of costs for single-family residential is shown in the following graphic. The infrastructure cost burden of 15 to 20 percent includes impact fees. As described below, in areas where cost escalation outpaces home price appreciation, additional pressure is exerted on infrastructure financing

65 -75% Site Development and Home Construction Costs (includes profit)

15 - 20% Infrastructure Cost Burden

10 - 15% Residual Land Value California Special Districts • July-August 2018

capacity and residual land values. Under these pressures, public agencies often prioritize their infrastructure needs into the following categories: 1. Urgent infrastructure and facility needs. 2. Critical (but not urgent) infrastructure and facility needs. 3. Desirable infrastructure and facility needs. Examples of infrastructure and facility needs that can be urgent or critical typically are driven by regulatory or environmental considerations, such as a new wastewater discharge permit, new storm water treatment standards, traffic mitigation measures, etc. Infrastructure such as community center, child care, and aquatics center facilities, or similar amenities can enhance the character, desirability, and attraction of a community; however, lack of these amenities does not jeopardize a community’s ability to meet basic infrastructure and other service provision needs.

Pressures on Impact Fees and Infrastructure Financing

material prices have continued to escalate with increased demand. Construction labor shortages have been exacerbated recently by the very unfortunate loss of housing from natural disasters throughout the state. Increased regulations, such as mandatory fire sprinklers and the impending requirement for solar panel installation, have also played a major role in the cost of housing. Cost Escalation Can Outpace Home Sales Price Changes Excluding coastal markets and California’s major gateway cities, cost escalation has equaled or outpaced home sales price appreciation in recent years. When these conditions are present, the end result is a finite capacity for new residential development to shoulder infrastructure burdens, often in the form of development impact fees, at much higher levels than already exist in many jurisdictions. Keeping up with the Joneses While some impact fee increases are driven by an absolute need (i.e., in response to regulatory direction), other new fees or increases to fees can be driven by a desire to “keep up with the Joneses.” Impact fee programs may be developed that contain costly elements that provide enhanced stature for a community. While desirable, these elements also might be included in other communitywide efforts not specifically tied to new development. In some cases, this desire may result in the imposition of development impact fees to fund infrastructure and other public facilities that are nice to have but not necessarily driven by a regulatory need. Improvements that may fall

Regulatory Pressures The cost of infrastructure funded by impact fees can increase or change based on changes to regulatory policies enacted at the federal, state, or local level. As an example, increased wastewater discharge standards imposed by a Regional Water Quality Control Board can directly impact infrastructure needs at a wastewater treatment facility. Similarly, increased regulations related to storm water runoff, storage, and discharge can directly impact costs of storm drainage infrastructure. Special districts and other agencies responsible for such utility infrastructure may need to increase CSDA 2018 Summer Ad – #2 impact fees to offset the cost of improved infrastructure 1/4 Page Horizontal, B/W facilities. In fact, in many of these circumstances, agencies typically are compelled to update their capital improvement programs to comply with updated regulations or else risk losing their permits (e.g., wastewater discharge permits). Increased costs of capital improvements typically translate into increased impact fees for new users of the system.

continued on page 50

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DISTRICTS MAKE THE DIFFERENCE

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our district can have a starring role in a prize-winning video! The annual Districts Make the Difference video contest begins August 27. As part of the campaign to increase awareness and understanding of California’s special districts, we encourage you to promote the contest and serve as a resource for students developing their videos. The video contest is a unique scholarship opportunity for high school and college students. After the contest period concludes, CSDA officials will select the top five finalists and feature those videos on the Districts Make the Difference website. The public will then vote for their favorite videos and the top three vote-winners will receive scholarship prizes: • $2,000 to the first place winner • $1,000 to the second place winner • $500 to the third place winner Don’t miss the opportunity to have your district featured in one of the winning videos. Do you know a student who may be interested? Do you know a teacher, principal, superintendent, or school board member who can help promote the contest? Spread the word that the contest is coming.

For over 100 years, special districts have provided essential local services to communities throughout California. The video contest is a creative way for young people to learn about the districts serving their community. Help them learn how your district makes a difference.

Here are a few easy ways your district can promote the contest:

• Post about the contest on your district’s social media • Add a link to the contest information on your district website • Put up a contest flyer in your district office • Announce the contest at your next board meeting • Reach out to colleagues, friends, and family and ask them to spread the word The contest will run from August 27 through September 30.

Watch last year’s winning videos and access the contest rules, application, and promotional materials at www.DistrictsMaketheDifference.org.

Did You Know? In 1887, the California Legislature passed the Wright Act, which allowed landowners to form new public entities to deliver irrigation water. The Wright Act provided the foundation for the formation of water districts and, ultimately, all types of special districts. The Turlock Irrigation District was formed in 1887 and became California’s first independent special district.

California Special Districts • July-August 2018

Students Prove They are ‘Water Smart’

The 25th annual North County Water Agencies Water Awareness Poster Contest was open to fourth graders living or attending school in the Olivenhain Municipal Water District, which sponsored the contest. Contestants were asked to create images that raise awareness on water-related issues in order to teach everyone how to be water efficient, regardless of age, officials said. This year’s theme was “Be Water Smart.” Prizes were awarded to the finalists during the district’s May 16 board meeting. First place went to Taylor Whiting from Ocean Knoll Elementary in Encinitas for a poster promoting the capture of rainwater to water plants.

Miller Utech from Stone Ranch Elementary came in second for stressing the importance of using water beneficially rather than wasting it. Samantha Norris from Stone Ranch

Elementary came in third for advising people to recycle water. Both are students in Wynne Love’s class. The finalists each received a prize and certificate. Their artwork will be featured in the North County Water Agencies’ 2019 Water Awareness Calendar. It will be distributed by Olivenhain for free later this year. Their artwork will also be featured on Olivenhain publications and vehicles. “We really enjoy seeing the creative posters that our talented local students submit each year,” said Christy Guerin, OMWD board vice president. “Not only is it fun for us, but it gets students thinking about the value of water from a young age, and we hope that encourages them to use water efficiently into adulthood.”

OMWD Board President Larry Watt with this year’s North County Water Agencies Water Awareness Poster Contest winners: Miller Utech (second place), Samantha Norris (third place), and Taylor Whiting (first County place). Mosquito and Vector Control District’s giant inflatable Orange

mosquito used in public education and outreach efforts.

Become a Part of Public Engagement CSDA created the campaign with you in mind and we encourage you to utilize Districts Make the Difference as a tool to help with your public outreach and engagement. On the campaign website, you will find valuable tools, and free marketing materials designed to help you connect with your communities. It is through such outreach that we hope you will be able to actively engage the general public in our collective efforts to further create a positive environment for special districts.

A public outreach campaign supported by the California Special Districts Association to provide information about special districts, descriptions on how they serve communities, and compelling content. Visit us at districtsmakethedifference.org.

Volume 13 • Issue 4

MAKE THE

IN BRIEF

Park District Receives Award For Spanish Language Water Safety On March 13, 2018, the East Bay Regional Park District received the Innovative Programming Award from the California Parks & Recreation Society Aquatic Section for its “Vamos a Aprenda” (Let’s Go Learn) water safety program. Located at Del Valle and Shadow Cliffs, the program aims to increase water safety practices and assist Spanish speaking children with life jackets. Vamos a Aprender was created in 2015 to provide free water safety education to children, ages 7-15 who visited Del Valle Regional Park in Livermore, CA. Bilingual lifeguards provide participants with a 45-minute water safety program in Spanish, teaching basic water safety with a focus on proper life jacket usage. “The program began with a focus on the Hispanic population that visits Lake Del Valle on peak summer season 46

weekends,” said Park District Aquatic Manager Pete DeQuincy. “We realized we had a lot of patrons visiting the park who were not water confident, and this helped us address that.” Funded by the Regional Park Foundation, Vamos a Aprender provides enthusiastic bilingual lifeguards and a professional training area to learn water safety. Participants receive free wristbands, coloring books, and a life jacket. Each year as part of the program, lifeguards ask park visitors if their children can participate in a water safety demonstration. They teach best practices around water and explain how to use life jackets. The program has been highly successful, and by 2016, program participants doubled in size to 600 children. In 2017, the program expanded to Shadow Cliffs in Pleasanton and grew to 1,000 total participants. According to DeQuincy, the program has made a visible impact. “We’ve definitely seen an increase in people using safer water practices, and wearing

the life jackets we’ve provided.” Children also leave with valuable lifesaving safety tips and a lifetime of useful information that can be used at other swimming areas. “The Park District’s Aquatics Division is very successful in preventing neardrowning incidents at our parks because of creative programming like Vamos a Aprender,” said Dennis Waespi, Board President of East Bay Regional Park District. “Enjoying your regional parks safely is our priority.” “The Park District is well known for its outstanding lifeguard and aquatics program,” said Robert Doyle, General Manager. Annually, over 800,000 use the regional parks lake and water facilities without incident, thanks to the Park District’s well-trained lifeguards. The East Bay Regional Park District is a system of beautiful public parks and trails in Alameda and Contra Costa counties east of San Francisco Bay, established in 1934. The system comprises 121,000 acres in 73 parks including over1,250 miles of trails for hiking, biking, horseback riding and nature learning. California Special Districts • July-August 2018

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MONEY MATTERS CONTINUED into this category include aquatics centers, equestrian centers, recreation and community centers, or other such large-scaled community facilities. Such facilities can serve to differentiate a community from its neighboring jurisdiction but can contribute to increased development impact fee burdens placed on new development. Crowding Out In many communities, increased home prices have crowded out many Californians from pursuing their dream of home ownership. Housing affordability has risen to one of the top priorities of the California legislature during each of the past two legislative sessions. While infrastructure cost burdens (i.e., impact fees) may represent less than one-fourth of the cost of new residential construction, all housing cost components are under

scrutiny. As described earlier, given the general hierarchical nature of impact fee prioritization, impact fees typically funding infrastructure and public facilities for those special districts that provide non-fire, life safety, or water and wastewater services may be the ones most likely to be crowded out of the equation first. When home price appreciation does not outpace costs required to produce housing, at a certain point, residual land values are insufficient to incentivize a land developer to undertake the cost, risk, and time it takes to entitle land for new development or redevelopment. From this standpoint, cities, counties, and special districts can be competing to capture a portion of the finite infrastructure financing capacity that can be borne by new development. Those agencies requiring infrastructure to provide urgent and critical services (public

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safety, public health, etc.) may crowd out other agencies that have less urgent infrastructure needs to provide their services.

Best Practices for Special Districts

When embarking on new or updated development impact fees, special districts should consider the following best practices to set a course towards a successful fee implementation: 1. Use of a well-documented capital improvement plan supported by current infrastructure or facility master plan documentation. 2. Prioritization of capital improvement expenditures. 3. Early and frequent outreach and coordination with local land use authorities (especially where such land use authority is needed to adopt fees on behalf of special districts). 4. Identification of all capital improvement funding sources, and a distillation of net costs to be funded by development impact fees. 5. Stakeholder outreach with affected parties throughout the Nexus Study preparation process. 6. Awareness and consideration of total infrastructure cost burdens relative to finished real estate values. 7. Consideration of infrastructure cost burdens of comparable jurisdictions. 8. Consideration of comparable impact fees by capital improvement (e.g., park fee comparisons). Best of luck addressing your capital facility needs using Mitigation Fee Act development impact fees!

California Special Districts • July-August 2018

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