2018 CA Special District Nov-Dec

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C ALI FO R N I A

SPECIAL DISTRICTS Vo l um e 13, I s s u e 6 • N ov- D ec 2 018

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

Predicting, Planning and Preparing for Extreme Weather Events

You Ask, We Answer: Rate Payer Assistance Program

Money Matters: Flores v. City of San Gabriel Two Years Later


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California Special Districts • Nov-Dec 2018


Save the Date. upcoming events March 26, 2019 SDRMA Spring Education Day – Sacramento April 7–10, 2019 Special District Leadership Academy – San Diego* May 21–22, 2019 Special Districts Legislative Days – Sacramento June 23–25, 2019 General Manager Leadership Summit – Newport Beach July 7–10, 2019 Special District Leadership Academy – Napa* September 25–28, 2019 CSDA Annual Conference & Exhibitor Showcase – Anaheim November 12–14, 2019 Board Secretary / Clerk Conference – Monterey *Two Tracks: First-time and returning attendees

Volume 13 • Issue 6

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TABLE OF CONTENTS

The Orange County Cemetery District Makes Community Connections

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05 President’s Message 06 Professional Development 08 CSDA News 18 You Ask, We Answer: Rate Payer Assistance Program 20

Ask the Experts: As Sea Levels Rise, So Do Local Governments’ Costs to Address the Issue

Predicting, Planning and Preparing for Extreme Weather Events

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26 Movers and Shakers 28 Community Connections: Telling Our Story 36 Managers Corner: Employee Development and Succession: What’s Your Desirable Future? 38 Legal Brief: Public Contracting Update

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

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Heron Landing Community Park Sets an Award-Winning Standard for the Cordova Recreation & Park District

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40 Take Action: Governor Signs and Vetoes Key Bills Related to Special Districts 42 Risk Management: Meet the New Chief Executive Officer 44 Money Matters: Flores v. City of San Gabriel Two Years Later 47

Districts Make the Difference: Student Videos Feature How Districts Make the Difference

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

California Special Districts • Nov-Dec 2018


PRESIDENT'S MESSAGE

CSDA in 2018: A Year in Review First off, I want to say it has been a pleasure to serve as your CSDA Board President this year and I look forward to continuing to serve on the board and working with the incoming 2019 CSDA Board President Joel Greg Orsini Bauer, SDA. CSDA President This year CSDA has seen record growth with 80 new members joining the association, bringing our member total to nearly 1,200 special districts, other local agencies, and private businesses. Members have embraced the online Open Forum as a convenient way to interact with a vast network of special district staff and officials. CSDA selected Umpqua Bank as the new administrator for the CSDA Commercial Card. The program, competitive with the State’s CAL-Card, now offers participants an even greater rebate potential. Special District Risk Management Authority (SDRMA) offers a group medical benefits program to public agencies with 200 employees or less. New for 2018 was the addition of Kaiser to their other network providers, including Blue Shield and Blue Cross.

During the 2017-18 Legislative Session, CSDA reviewed 5,617 bills. CSDA actively tracked 1,285 of those bills and directly lobbied on 238. Of the 105 bills opposed by CSDA, only 20 became law; the other 85 were killed or amended to remove CSDA’s concerns. Of the 125 bills supported by CSDA, 80 became law. An additional eight measures were lobbied without adopting a formal support or oppose position. Among the notable victories for special districts, CSDA blocked legislation that would have forced special districts to put all leased lands up for sale as though they were surplus property. This measure would have been disastrous for sanitation districts, cemetery districts, and any other districts that lease property for buffer space or as a means for preserving land that will be needed for future infrastructure. CSDA also successfully responded to the Little Hoover Commission’s call for website legislation by working with Senator Mike McGuire to 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, SDA, Secretary, Santa Ynez Community Services District

Cathrine Lemaire, Member Services Director

Ryan Clausnitzer, SDA, 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

Cristina Becerra, Member Services Representative

Stanley Caldwell, Mt. View Sanitary District

Emily Cha, Professional Development Coordinator

Ralph Emerson, Garberville Sanitary District

Tamara de la rosa, Public Affairs Specialist

Peter Kampa, SDA, Saddle Creek Community Services District

Marcus Detwiler, Legislative Assistant

Jo MacKenzie, Vista Irrigation District

Rylan Gervase, Legislative Representative

Elaine Magner, Pleasant Valley Recreation & Park District

Dillon Gibbons, Senior Legislative Representative

Noelle Mattock, El Dorado Hills Community Services District

Vanessa Gonzales, Communications Specialist

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

Chris Palmer, Public Affairs Field Coordinator

Robert Silano, Menlo Park Fire Protection District

Marina Servantez, Professional Development Assistant Cassandra Strawn, Senior Member Services Specialist

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

© 2018. California Special Districts Association. Volume 13 • Issue 6

Anthony Tannehill, Legislative Representative Dane Wadlé, Public Affairs Field Coordinator James Wilfong, Senior Designer

A proud California Special Districts Alliance partner

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PROFESSIONAL DEVELOPMENT

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

Can’t Miss! 2019 Professional $ 60k Development Catalog

President’s Message cont.

Special DiStrict leaDerShip FounDation

available funds for 2019

2019

Need help paying for CSDA workshops, webinars or conferences?

Check your mail or check online at csda.net for all of CSDA’s workshops, webinars, and conferences in our 2019 Professional Development Catalog. You’ll find a variety of offerings for LET’S elected/appointed officials and all levels of staff including new LEARN webinars on election law, transparency, fiscal year end planning, performance management, groundwater sustainability, and more. CSDA also offers live and on-demand webinars on a variety of topics including Ethics AB1234, Harassment Prevention (AB1825 and AB1661), California Public Records Act, Rules of Order, and much more. Many live and on-demand webinars are offered at no cost to Special District Risk Management Authority (SDRMA) members and can even help members to earn valuable credit incentive points. The schedule will also include some of our most popular workshops like Supervisory Skills in the Public Sector, HR Boot Camp for Special Districts, and Financial Management for Special Districts in new locations as well as new workshops on important topics like CEQA. Visit csda.net for more details and to register online. The Special District Leadership Foundation (SDLF) is committed to helping special districts obtain current and relevant continuing education and increase transparency. To that end, SDLF is offering $60,000 in scholarship funds for special districts as well as directors/trustees and staff for 2019. Visit sdlf.org for details and to download an application.

continuing education

SCHOLARSHIPS are limited. Please apply at sdlf.org today.

Special District Leadership Academy Expands in 2019

CSDA’s Special District Leadership Academy (SDLA), the core governance training for elected and appointed officials, will return in 2019 with two date and location options throughout the state: • April 7 – 10, 2019 in San Diego

• July 7 – 10, 2019 in Napa

Both locations will offer a first-time attendee track, enabling attendees to complete all four modules of the Special District Leadership Academy in just two and a half days. Returning attendees will also be able to participate in an advanced track. This advanced track will enable elected and appointed officials to expand on the skills and concepts gained during their first completion of the SDLA with sessions covering challenging situations, communications, project financing, policy, legislative developments, and media relations. Visit csda.net for more details and to register online.

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pass legislation that provides a workable solution for special districts and an alternative for those districts facing hardship. For special districts relying on property tax revenue, CSDA continued to hold the line against property tax diversions through the resurrection of redevelopment agencies—a clear threat that is poised to return in 2019. Learn more about all of this year’s legislative outcomes by downloading CSDA’s Year-End Legislative Report at csda.net/ take-action. CSDA’s Professional Development continued to see growth in both our attendance and number of offerings. Our on-demand webinar system is continually updated and currently has over 50 webinar titles – including some that are offered at no cost to SDRMA members. Professional Development also saw 40 scheduled workshops – including two in all six of our District Networks – AB 1234 Required Ethics Training in each network the first half of the year and Harassment Prevention training in each of the six District Networks in the second half of the year. The Professional Development line-up also featured eight conferences and 30 scheduled live webinars. Thank you to everyone for your support of CSDA this last year! Continue to peek at our website where we list professional development offerings, bill tracking, and member resources all year long. It has been my absolute pleasure to serve as your CSDA Board President in 2018!

California Special Districts • Nov-Dec 2018


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CSDA NEWS

Congratulations to CSDA’s 2019 Executive Committee and Board Members CSDA Board Officers serve a one-year term and are elected by the CSDA Board of Directors at their board meeting during the CSDA Annual Conference & Exhibitor Showcase. The following CSDA Board Officers were elected to the 2019 Executive Committee:

President Joel Bauer, SDA, West Side Cemetery District

Vice President Jeff Hodge, SDA, Santa Ynez Community Services District

Secretary Elaine Magner, Pleasant Valley Recreation and Park District

Treasurer Ryan Clausnitzer, SDA, Alameda County Mosquito Abatement District

Past President Greg Orsini, McKinleyville Community Services District

The 18-member board consists of three directors from six networks in California. CENTRAL NETWORK

NORTHERN NETWORK

Ralph Emerson, Garberville Sanitary District Greg Orsini, McKinleyville Community Services District Fred Ryness, Burney Water District

Joel Bauer, SDA, West Side Cemetery District Sandi Miller, SDA, Selma Cemetery District Tim Ruiz, East Niles Community Services District COASTAL NETWORK

SIERRA NETWORK

Pete Kampa, SDA, Saddle Creek Community Services District Noelle Mattock, El Dorado Hills Community Services District Ginger Root, Country Club Sanitary District

Vincent Ferrante, Moss Landing Harbor District Elaine Magner, Pleasant Valley Recreation and Park District Jeff Hodge, SDA, Santa Ynez Community Services District SOUTHERN NETWORK

BAY AREA NETWORK

Stanley Caldwell, Mt. View Sanitary District Ryan Clausnitzer, SDA, Alameda County Mosquito Abatement District Chad Davisson, SDA, Ironhouse Sanitary District

Jo MacKenzie, Vista Irrigation District Bill Nelson, Orange County Cemetery District Arlene Schafer, Costa Mesa Sanitary District

Special Districts Mapping Project CSDA, in partnership with California CAD Solutions, offers the most comprehensive, interactive map of independent special districts in California. CSDA’s goal is to have every independent special district headquarters and boundary lines represented on the map. If your district’s data is inaccurate or missing boundary lines, please let us know how we can correct it. Contact CSDA Member Services (cathrinel@csda.net) with any questions or comments. Visit the map online at: csda.net/special-districts/map

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California Special Districts • Nov-Dec 2018


Free Ethics Training with Renewal of Membership

Don’t forget! As a thank you to our members, CSDA offers free online access to required Ethics Training for a limited time. Submit your membership dues by January 5, 2019 and your district will receive access to on-demand AB 1234 Ethics Compliance Training through March 15, 2019 at no cost.

Order Your 2019 Labor Law Posters Now

The CSDA Bookstore is selling 2019 California & Federal Employment Notices posters at the very affordable member price of $25 (plus shipping and tax). In addition, if any other mandatory updates become effective during the year, CSDA will email you the updated section. Your agency could be fined for not posting the most upto-date state and federal employment notices in an area that is frequented by employees. Place your order online today at csda.net or simply include it in your membership renewal. Please note: SDRMA members receive labor law posters from SDRMA at no charge.

What’s All the Talk About?

Have you participated in our Communities? Login at csda.net (remember, your username is your email) and talk with peers – perhaps they’ve already conquered your next challenge. CSDA communities!

unique logins Current Users

3,168

3,300

(left to right) Director – Danielle Coats, Senior Legislative Program Manager, Eastern Municipal Water District; President – Dean Wetter, General Manager, Valley-Wide Recreation & Park District; Secretary – Kathleen Jurasky, General Manager, Palm Springs Cemetery District; Treasurer – Phil Rosentrater, Executive Director, Salton Sea Authority; Vice-President – Kevin Kalman, General Manager, Desert Recreation & Park District

CSDA Welcomes the Special Districts Association of Riverside County as Newest Affiliated Chapter SDARC affiliation agreement signing ceremony On September 25, the CSDA Board of Directors voted unanimously to sign an affiliation agreement with the Special Districts Association of Riverside County. The Riverside Chapter Vice-President Kevin Kalman, County Chapter becomes CSDA’s General Manager, Desert Recreation & Park 18th affiliated chapter and joins the District with CSDA CEO Neil McCormick San Bernardino County Chapter, the San Diego County Chapter and the Independent Special Districts Association of Orange County as the 4th local chapter in CSDA’s Southern Network. The approval of the affiliation agreement completes a process started in early 2018. In April, an exploratory committee of special district representatives in Riverside County held their first meeting to discuss forming a chapter and enhance the interaction between local districts and CSDA. Approximately six months later, the Chapter will begin meeting quarterly to network, engage in local and state advocacy, inform the public of the role of special districts, participate in state and local organizations that advance the interests of districts, and provide training to Board members and staff. CSDA is committed to establishing relationships with special districts throughout California through its District NetWorks Program. CSDA is pleased to welcome the Special Districts Association of Riverside County and looks forward to providing resources to the chapter and its member districts. In approving the affiliation agreement, the CSDA Board of Directors expressed their appreciation to the individuals that have lead the Chapter formation process.

connections

2,498

Volume 13 • Issue 6

Additional information, including contact information for the Chapter officers, can be found on the CSDA website.

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CSDA NEWS

Awards

Congratulations to the 2018 CSDA Annual Award Winners!

Exceptional

Exceptional Public Outreach & Advocacy (large district)

Innovative Project of the Year (large district)

Goleta Sanitary District for its 2017 Jurassic Plant Tour Open House

Cordova Recreation & Park District for its Heron Landing Community Park

Exceptional

10

Innovative

Innovative

Exceptional Public Outreach & Advocacy (small district)

Innovative Program of the Year (small district)

Orange County Cemetery District for its Historical Tours and Dia de los Muertos Event

Placentia Library District for its Library of Things California Special Districts • Nov-Dec 2018


2018 CSDA Annual Conference & Exhibitor Showcase CSDA

Conference Sponsors

Staff Member of the Year

Noelani Middenway, District Clerk, Costa Mesa Sanitary District

Thank you to these generous sponsors for their support of the 2018 CSDA Annual Conference & Exhibitor Showcase: Champion Sponsors • CSDA Finance Corporation • Special District Leadership Foundation • Special District Risk Management Authority Advocate Sponsors • Best Best & Krieger, LLP • McMurchie Law

Board Member of the Year

Chris Lauritzen, Ironhouse Sanitary District

General Manager of the Year

Kara Ralston, SDA, Camarillo Health Care District

• Liebert Cassidy Whitmore • Meyers Nave

Friend Sponsors • Atkinson, Andelson, Loya, Ruud, & Romo • Bank of the West • Banner Bank • BHI Management Consulting • BNY Mellon Trust Company, N.A. • Brandis Tallman, LLC • Burke, Williams & Sorensen, LLP • California Association Public Information Officials (CAPIO) • Contractor Compliance and Monitoring, Inc • Granicus • Koff & Associates • NBS • Nossaman, LLP • Prager & Co., LLC • Probolsky Research • Richards Watson Gershon • Streamline • Townsend Public Affairs • U.S. Communities • Umpqua Bank • Wells Fargo Bank • Zions Bank

Chapter of the Year

Alameda County Special Districts Association Volume 13 • Issue 6

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CSDA 2018 Award for Exceptional Public Outreach and Advocacy– Small District

Anaheim Cemetery with the various monuments, private mausoleums, the historic archway, and the grove of rare Dawn Redwood Trees, all beautifully illuminated against the darkening sky for the 150th Anniversary Candlelight Tour.

The Orange County Cemetery District Makes Community Connections Of course, the primary purpose of the Orange County Cemetery District is to help families when they experience the loss of a loved one. But that is not our only mission. We believe the District also has a responsibility to act as custodians of the past, preserving the history of those who are interred in our grounds, for the benefit of generations to come. For many years, Trustee Cynthia Ward, who is also a knowledgeable local historian, would personally lead tours of Anaheim Cemetery, educating groups on notable interments in the park. 12

California Special Districts • Nov-Dec 2018


2018 AWARD WINNER

As the 150th Anniversary of the first interment at Anaheim Cemetery drew near, we really wanted to reach out to the community and present the cemetery’s history in a new and exciting way. Trustee Kelly Rivers, an experienced special event planner, recommended staging our first nighttime tour, complete with costumed actors playing out scenes from the lives of those interred. It was important to the District, to provide this event at no cost to the public. Thanks to the help of a small army of volunteers and the efforts of Trustee Ward and Trustee Rivers, costumes were provided, scripts written, actors assigned, docents lined up, and history literally came alive. Approximately 400 people gathered at Anaheim Cemetery to embark on a journey into the past revealing the rich heritage and history of early pioneers, community leaders, immigrants, politicians and veterans from the War of 1812 and the Civil War, all of whom helped to shape not only Anaheim, but Orange County and even the nation. The road that loops around the cemetery was lined with candle lanterns and the private mausoleums, the historic archway, and the grove of rare Dawn Redwood Trees marking the final resting place for an untold number of Chinese immigrants,

Re-enactor Victoria Michaels who played Petra Ontiveros Langenberger who was one of the first interments in the park. Next to her is Anaheim Mariachi Aficionado, Sean Oliu who is an actual descendant of the real Petra Ontiveros Langenberger during the Anaheim Cemetery 150th Candlelight Historical Tour. Volume 13 • Issue 6

This scene from the El Toro Memorial Park Historical Tour shows students from the Orange County School of the Arts from left to right (Grace Wilcox playing Emily Whiting, Caroline Kennedy playing Eliza Keating, and Sophie Uoo playing Charlotte Prothero). The Whitings, Keatings, and Protheros are El Toro pioneers.

were bathed in beautiful light, a stunning contrast to the black night sky. Tours concluded at the Cemetery Office where internationally-known mariachi singer, Sean Oliu, and fellow musician, Jerry Gutierrez, serenaded attendees with a mini-concert. Sean Oliu’s presence at the cemetery held a special significance as he is a direct descendant of Petra Ontiveros and Augustus Langenberger, whose infant son was the first interment to ever occur at Anaheim Cemetery. Sean is also the founder of “Kids Giving Back”, a nonprofit that has raised thousands of dollars to support orchestra programs in Anaheim schools. Sean is a wonderful example of how history lives on through all of us. With the success of this tour, the District began plans for the first historical tour at El Toro Memorial Park in Lake Forest. This free tour took place during the day and enlisted the aid of students from the Orange County School of the Arts who acted out scenes from the lives of: Olympic Athlete Florence Griffith Joyner; a Brigadier General; a major league baseball player; pioneers who founded El Toro later to become Lake Forest; and many more. The tour concluded at the gravesite of Christian Kent Nelson, the inventor of the Eskimo Pie and, in his honor, free ice

cream bars were handed out. Attendees also received a free 25-page bound booklet recapping the history presented on the tour with biographies of every interment covered during the event. Docents from a local historical society were on hand to answer questions, and Michael Thomas Barry, author of Final Resting Places: Orange County’s Dead & Famous was on hand to answer questions, with copies of his book available for purchase. Apart from historical tours, the District is always looking for opportunities to connect with the community. For many years we have conducted special programs such as Veterans Day and Memorial Day Observances. We also serve as hosts for special memorial services such as the Angel of Hope Candlelight Service that gathers at El Toro Memorial Park each December for families who have lost a child; or the Homeless Day of Remembrance, an event organized by the nonprofit, Hope 4 Restoration that pays tribute to those in our community who have passed away during the year while homeless. Recently, we have added a new event for the community with an annual Dia de los Muertos celebration at Anaheim continued on page 14

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CSDA 2018 Award for Exceptional Public Outreach and Advocacy- Small District

Cemetery. Again, this event is completely free to the public and is a wonderful opportunity for the District to recognize the important cultural significance that this holiday holds for so many of the families we serve. The event is always held on November 2nd and begins with a Dia de los Muertos blessing conducted by clergy from a local church. In 2017, entertainment was provided by Ballet Folklorico Donaji, a local youth dance group that performed a variety of traditional dances with talented performers ranging in age from 4 to 21. Mariachi musician Sean Oliu also performed. This year Rhythmo Mariachi Acadmey will take turns performing. Founded by Gabriel Zavalas, the academy is dedicated to preserving, teaching, and helping youth to appreciate the history, the art, and the music of the Indian and Hispanic cultural heritage. While supplies last, attendees are also treated to free refreshments including Pan de Muertos prepared by a local Anaheim Bakery. Kids of all ages enjoy free Dia de los Muertos crafts and the District also assembles and gives out small bouquets of marigolds – a traditional flower often used in the decoration of ofrendas or personal altars to memorialize loved ones who have passed. As a part of Dia de los Muertos, the District encourages families to build ofrendas on the gravesites of loved ones and relaxes the flower clean-up policies so that these gravesite decorations can remain in place for an extended period

District’s Anaheim groundskeeper Malachi Rios holding District’s leadworker’s daughter Olivia Trejo at the Dia de los Muertos event.

of time. Our goal is to expand our Dia de los Muertos programs to eventually include the other two District cemeteries. Most people don’t think about cemeteries as a resource for their communities, but with programs like these, the Orange County Cemetery District is working hard to educate the public and to help them see the true value these grounds really offer. Look for the 2018 Exceptional Public Outreach and Advocacy – Large District in the next issue of California Special Districts.

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District of distinction accreditation

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Questions Appear in CSDA Communities

YOU ASK, WE ANSWER

Q&A

Rate Payer Assistance Program

18

Jeffrey Meyer, Director of Administrative Services Calaveras County Water District Does your water and/or sewer district have a low-income rate payer assistance program? Our District is looking to establish such a program for our sewer customers but need to make sure that the program is not only equitable and easy to operate with limited internal resources but is also in compliance with Prop 218. Michael Williams, Finance Manager Palmdale Water District We have a rate assistance program for low income and seniors 62 or older. We only provide water no sewer. Our funding source is cell tower lease revenue. The program provides for 50% of the monthly fixed cost and we have approximately 800 participants. It is time consuming to administer the program. I believe it is in violation of Prop 218 to use revenue generated by rate payers to subsidize other rate payers. Paul Hughes, Chief Financial Officer South Tahoe Public Utility District We have a low-income discount program which provides a 20 percent discount to the total combined water and sewer bill. The program is funded with property tax revenues. Our program requires less administration than most because we rely on the local electric provider to do the income verification. If our customer can demonstrate that they have qualified for the electric utilities low income discount program, we will enter them into our program. Vicki Goldman, Customer Service & Billing Supervisor Dublin San Ramon Services District Several years ago, we established our Low Income Assistance (LIA) program which covers the fixed meter cost for customers in the program. That credit is currently $36.45. We don’t have the resources to go through a lengthy qualification process, so we decided to require that the customer be able to show proof that they are enrolled in PG&E’s CARE program. Their account with us also has to be in good standing and they must keep their account current. You can find more information as well as the application on our website. See www.dsrsd.com/your-account/your-bill/low-income-assistance. John Soulliere, Public Affairs Officer Mission Springs Water District Our agency (along with four others in our region) has a customer assistance program that is administered through the United Way. Our board allocates non-restricted revenue from cell tower leases to fund the program. This has no impact on revenue from water or sewer rates, property taxes, etc. The cost of administration is nominal because the United Way, who works with many non-profit organizations, handles the application process and all of the customer screening and verification. See www.unitedwayofthedesert.org/help2others

California Special Districts • Nov-Dec 2018


IN BRIEF

Fire Fuel Reduction Project Slated for Novato Neighborhood Starting next spring, dead and dying trees will be removed in the Pacheco Valle neighborhood in southern Novato as part of a grantfunded fire fuel reduction project. Marin County Parks and the Novato Fire Protection District applied and secured a $75,000 grant from the California Department of Forestry and Fire Protection, known as Cal Fire. The funding will go toward hiring a contractor to create a shaded fuel break around homes and increase the chances of saving lives and property during a wildfire. The project is scheduled to start in March 2019 and run through November 2021. Pacheco Valle is a narrow valley off Alameda del Volume 13 • Issue 6

Prado, just west of Highway 101. There are about 600 dwellings there with only one vehicular entry and exit point on the neighborhood’s eastern side. The valley is closed off on the other three sides by hills. Dead and dying trees have created a dense fire fuel load within defensible space zones. The project would create a two-mile shaded fuel break by cutting annual grasses and removing dead and downed trees up to 200 feet from structures. In 2016, Pacheco Valle attained Firewise recognition for collaboration between residents and local fire protection agencies. Participating residents, parks officials and fire officials meet monthly to discuss fire prevention projects and

goals for the neighborhood. Especially during the yearslong drought, residents were active in removing fire-prone vegetation surrounding their homes. “The devastating wildfires in October 2017 left communities frightened and highlighted the necessity for individual residents and collective neighborhoods to take concrete steps in the areas of wildfire prevention and preparedness,” Novato Fire Chief Bill Tyler said. Sarah Minnick, Marin County Parks Vegetation and Fire Ecologist, added, “Fire science has shown that in addition to hardening your home with fireresistant building materials, maintaining defensible space is one of the most important

things a homeowner can do to protect property. Neighbors of our County preserves have worked hard to remove fire-prone plants from their yards and to follow FIRESafe Marin’s defensible space standards. At the same time, County agencies identified work within the preserve that could leverage and reinforce the efforts of homeowners.” The grant-funded fire fuel reduction work will be conducted by a contractor on the Pacheco Valle Open Space Preserve under the supervision of Novato Fire and Marin County Parks. The agencies will continue coordinating with Pacheco Valle homeowners who are conducting defensible space work on their private properties. 19


ASK THE EXPERTS

Reprinted with permission from the Daily Journal. ©2018 Daily Journal Corporation. All rights reserved.

As Sea Levels Rise, So Do Local Governments’ Costs to Address the Issue By John P. Erskine, Esq., Nossaman LLP

In March, the California Ocean Protection Council submitted the “best available science” to the California Coastal Commission and other agencies and stakeholders. But state and local governments, special districts and private coastal property owners are only now coming to understand the commission requirements for shoreline development to adapt to or retreat from predicted rates of sea level rise over the next 80 years. Emerging climate change science behind the OPC’s new data will escalate compliance costs even beyond the $36.5 billion replacement value of property at risk from the effects of climate change on the California coast previously cited by the Coastal Commission in its adopted 2015 “Sea Level Rise Policy Guidance: Interpretive Guidelines for Addressing Sea Level Rise in Local Coastal Programs and Coastal Development Permits.” That figure, developed in 2000 by Heberger et al. (2009), calculated the rough replacement value of California coastal property at risk from the effects of climate change. The report estimated that seven wastewater treatment plants, 14 power plants (13 in Southern California), 250 miles of highways, 1,500 miles of roads, and 110 miles of railways could be at risk from the combination of a 100-year flood with approximately five feet of rise in sea level. As summarized in a briefing paper presented to the commission on September 12, “the OPC has released two reports that update our understanding of sea-level rise science and best practices for planning for and addressing anticipated impacts.” Synthesized in “State of California Sea-Level Rise Guidance: 2018 Update,” the reports continue to increase projections of sea level rise, with new projection tables for twelve tide gauges along the California coast from Humboldt County to San Diego. The result is that OPC is now predicting sea level rise of 2.4 to 6.9 feet by the year 2100; this compares to projections in the Coastal Com¬mission’s 2015 guidance of only .5 to 5.5 feet by that year. 20

California Special Districts • Nov-Dec 2018


Utilizing information presented from the OPC’s Science Advisory Team, titled “Rising Seas in California: An Update on Sea Level Rise Science,” presented last year, OPC has concluded, among other findings, that: • Scientific understanding of sea-level rise is advancing at a rapid pace, • New scientific evidence has highlighted the potential for extreme sea-level rise, and • Waiting for scientific certainty is neither a safe nor prudent option. While the Coastal Commission’s 2015 guidance document stressed, and commission staff continues to maintain, that the guidance is advisory only, and not a regulatory document or legal standard of review, the commission’s summary of proposed 2018 revisions indicates that the new 2018 sea level rise protections are now “recommended for use in planning, permitting, investment, and other decisions.” The commission’s previously adopted guidance document has already had a significant and material effect on many private applicants for residential and commercial coastal development permits in the last three years. Commercial businesses, resort properties and singlefamily homes have been reduced in size due to greater com¬mission-mandated setbacks from bluff edges or beachfront property lines. These measures are often in direct conflict with commissioncertified city LCPs, and are taken in order to address variable “life of project” sea-level rise projections. Other permit conditions imposed by the commission to address the guidance include waivers of the right to shoreline protective devices (seawalls, revetments, etc.) granted by Section 30235 of the Coastal Act. This section states that seawalls (and other shoreline protective devices) “shall be permitted when required to serve coastaldependent uses or to protect existing structures or public beaches in danger from erosion, and when designed to eliminate or mitigate adverse impacts on local shoreline sand supply.” “Existing Volume 13 • Issue 6

structures” have been deemed to be only those structures in existence prior to the Jan. 1, 1977 effective date of the 1976 Coastal Act. Once accepted by an applicant as a “special condition” of approval, courts have been reluctant to grant relief from sea level rise informed limitations on the project permit. See Lynch and Frick v. California Coastal Commission, 229 Cal. App. 4th 658 (2014)(upheld on grounds of waiver, Ca. Sup. Ct S221980). In the context of local government and/or special district applications to upgrade, expand or replace aging coastal infrastructure, the elephant in the room, or perhaps white shark in the surf zone, is how public agencies will locate, design and adapt such infrastructure to the impacts of climate change and increasingly dire predictions of coming sea level rise. “Managed retreat,” many climate scientists and environmental activists lodestar for addressing the next 75-100 years of sea-level rise, is both logistically impossible to accomplish on any effective scale, in urban coastal settings, and financially infeasible. The only feasible solution will be to focus on the least environmentally damaging form of available shoreline protection,

along with appropriate beach and sand supply mitigation. Successful managed retreat can be done, at least in coastal areas, where there’s room to relocate critical public facilities. Last year, Caltrans completed a realignment of 2.8 miles of Highway 1 in northern San Luis Obispo County on the road to Big Sur. Moving this stretch of iconic coastal highway 475 feet inland included removal of artificial revetments and the use of permeable roadway subbase materials designed to maintain the hydrologic connectivity of adjacent wetlands. The project cost was $19.7 million. However, with many coastal cities and counties facing increasing budget shortfalls and multiple deferred capital improvement needs, funding wholesale relocation of coastal infrastructure, or even minimal adaptive measures to address future sea-level rise, will be a significant challenge. John P. Erskine is a partner at Nossaman LLP. Mr. Erskine counsels landowners, developers, lenders, receiverships, and public agencies on planning and land use matters.

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. Our attorneys provide counsel to special districts in areas such as Public Finance, Public Agency Law, Water, Environment, Land Use, Infrastructure, Employment, Data Protection, Insurance Recovery, Public Policy, and Eminent Domain. What solutions are you seeking?

nossaman.com

21


INTERVIEW

INTERVIEW with CALIFORNIA SPECIAL DISTRICTS

Predicting, Planning

& Preparing for Extreme Weather Events

22

California Special Districts • Nov-Dec 2018


INTERVIEW

California Special Districts interviewed General Manager Grant Davis and Government Affairs Manager Brad Sherwood of Sonoma Water.

vulnerable assets and potential types of initiatives that need to take place over the years to secure these types of facilities.

Please explain the Advanced Quantitative Precipitation Information (AQPI) project?

How would you recommend special districts consider the long-term needs of climate adaptation when developing capital infrastructure plans, master plans, and other relevant documents?

The Advanced Quantitative Precipitation Information (AQPI) project represents efforts to install and expand radars throughout the San Francisco Bay Area to get more precise and accurate precipitation information. It is designed to aid emergency responders, school districts, transportation corridors, water managers and sanitation managers to know when a great deal of rain is going to fall on their area. The information includes the amount of rain, the time it will fall, and how to respond to that extreme weather. The AQPI program is funded by a $19 million grant from the Department of Water Resources.

Do you see the AQPI as something that can benefit special districts other than water districts? Is there a goal to expand the system statewide?

Absolutely yes, we are in the process of establishing radar locations throughout the Bay Area. The Santa Clara Valley Water District has a radar up and running on their facilities. Sonoma Water is in the process of securing a radar in Sonoma County. We will be establishing radars off the Sonoma coast, the East Bay and further down the peninsula. It’s designed to better prepare the entire Bay Area, including special districts, but especially emergency and first responders, fire departments, public health entities, school districts, and anyone making decisions based on what the weather patterns are going to be in the next hour or days ahead. AQPI will provide a much better prediction of what to expect so decisions can be made to keep people safe and out of harm’s way.

Volume 13 • Issue 6

This wasn’t your first step toward adapting to climate change; can you tell us about your comprehensive climate vulnerability assessment featured in the August 2017 Little Hoover Commission report on special districts?

The climate vulnerability assessment is a little over $800,000 invested by Sonoma Water and our contractors into an assessment of our facilities. Sonoma Water is a wholesaler to over 600,000 customers in Sonoma and Marin Counties, but we also have responsibilities for eight sanitation districts and zones, as well as flood management of over hundred miles of engineered and natural channels. It made sense for us to be looking at our vulnerabilities in all three of those areas. We have gone over prioritization of potential threats to the system, to climate change and extreme weather events. Jacobs Engineering is the lead contractor on this for us and are making tremendous progress already looking into our most

It very much depends on what special district it is and what their responsibilities are. The approach I would recommend with any utility or special district is to take a look at the recent climate models produced by Dan Cayan at SCRIPPS Institute of Oceanography in San Diego. It describes a range of possible climate scenarios that we may encounter over next 10 to 100 years and how to plan accordingly. Design your built infrastructure with a changing climate in mind. Plan on our weather patterns changing and consider climate vulnerability. We also recommend that special districts look at their emergency staffing centers and plan on back up personnel. If you do have a natural disaster in your special district jurisdiction, the probability of your staff being impacted is great. Ensure you have redundancy in your staffing plan, infrastructure and back-up generators – this will be crucial in those first few hours of an emergency. This should all be included in your resiliency planning and climate change planning.

continued on page 24

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INTERVIEW

If a special district is starting from scratch in terms of climate change adaptation, and has little bandwidth, what would be one simple short-term step to take? How about one reasonable long-term goal to shoot for?

If there are already existing relationships that you can build from, if you are working on joint projects that span water supplies, transportation corridors, or are working through existing associations that deal with multiple benefits, start there. Most communities have been asked to consider their vulnerability as the weather is changing. This year, Northern California has gone through the wettest year on record, and the second on record for flooding in southern California two years ago – this is after five years of drought. Managers need to plan for more variability, begin putting infrastructure in place to be able to withstand that vulnerability, and start taking a more proactive approach. Whether it is a special district, county, city, or an association with a region, it is very important that they begin getting the best available science and pulling in available information to begin better planning and coordination.

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Is there anything else you’d like to share with our readers?

Your organization, California Special District Association, is worth joining. It is important for special districts to be a part of policy debate and implementation of successful strategies. Conferences are a good way to stay up to date and informed. On behalf of Sonoma Water as a long-time member, we look forward to building our partnership with other special districts who are responding to the same challenges. Whether you are a smaller rural community or a larger urban metropolis, we all have issues that will need to be addressed over time and the more we can learn together the better.

What has your district done to step up public engagement on climate adaptation, and inform and support people and businesses to take actions that increase their individual and community-wide defenses? What more do you think special districts can do in this regard? At Sonoma Water, we are fortunate that our Board of Directors for the water district are also the Board of Supervisors who are already involved with public health, safety, and energy in addition to water and wastewater, so they have a more integrated

California Special Districts • Nov-Dec 2018


INTERVIEW

for immediate needs related to extreme weather, cause and effect, protection of our resources, property and life. IRWM is like the foundation of a house we are trying to rebuild after a fire; we are looking to utilize IRWM to make something better, stronger and more resilient for the future. Without a doubt, we are strong supporters of local regional collaboration. I think there are others like us in the special district world who have seen, been through or responded to extreme weather events such as wild fires. approach. With science continuing to show the models of weather patterns becoming more extreme, it is enough to support more proactive planning and putting projects on the ground that will help the broader community. We are working with the Forecast Informed Reservoir Operations (FIRO); this is a broad collaboration that is working with SCRIPPS, Bureau of Reclamation, US Army Corps of Engineers, USGS, Department of Water Resources and our local partners to better understand the phenomenon of atmospheric rivers. Atmospheric rivers come from the west, hit the coast of California, and are responsible for the majority of our flooding. The lack of atmospheric rivers is also responsible for much of our droughts. Understanding this phenomenon is critical for water, wastewater, and other emergency response personnel in the years to come. We are working in a collaborate process on this and working on better managing our reservoirs using FIRO; it is real time data that can be used to base decisions on what is actually happening in the atmosphere. Sonoma Water has also helped to develop the RCPA, the Regional Climate Protection Authority. Years ago, utilizing state law and created under Sonoma County Transportation Authority, we built a body that would be inclusive of our board of directors as well as each city’s elected representation on that governance structure to better plan for Volume 13 • Issue 6

and respond to increasing vulnerability. These are the types of things Sonoma Water is continuing to pursue. We have also proven that you can deliver your water carbon-free. We are proud of these achievements and this can help other general managers of special districts to make the decision to do more and secure their systems.

How has your Integrated Regional Water Management Plan helped your district and other local agencies partner and maximize climate adaptation resources and benefits? The radar project grant, AQPI, was born out of an integrated regional water management plan, specifically the San Francisco/Bay Area IRWM Plan, which was funded by $19 million dollars from DWR three years ago. Here at Sonoma Water, we have integrated the IRWM planning process into climate adaptation planning. We are now looking at pushing resource resilience. IRWM helped create a collaborative regional team of local government to help implement a plan to put projects on the ground for the state. This has been expanding into other areas of resource resilience with extreme weather or cause and effect of extreme weather, such as fires. We are working on and foresee a future where local governments and regional governments are working together to secure funding

What other regional partnerships has your district participated in concerning climate adaption?

There are a couple very successful ones. The first is the North Coast Resource Partnership (NRCP) that is another integrated water management outgrowth. It includes the seven counties north of Sonoma up to the Oregon border. This group is dedicated toward responding to communities that are often neglected. It includes two supervisors from each county on the policy review panel, as well as staff such as general managers, engineers and biologist on the technical review panel. They work together to better manage our resources, better respond to and ultimately, better adapt to climate change. A second regional partnership we are involved with is the Local Government Commission which has been active and continues to promote this resource area. At the local level, we have our own regional climate protection authority. We also are members of the Bay Area Climate Adaption Network that is continually to grow and evolve.

Grant Davis

Brad Sherwood 25


MOVERS AND SHAKERS

MOVERS& SHAKERS Brad Johnson, P.E. was announced as the next General Manager/CEO of the North Tahoe Public Utility District at the July 17, 2018 Board of Director’s meeting. Since 2007, Mr. Johnson has served as the Director of Engineering and Asset Brad Johnson Management for the Incline Village General Improvement District (IVGID) in Incline Village, NV. Mr. Johnson is a licensed Professional Civil Engineer focused on asset management and capital project delivery for municipal water, sewer, and recreation districts. In his prior position at the Incline Village General Improvement District (IVGID), Mr. Johnson was responsible for the planning, budgeting, and execution of a $10-million average annual capital improvement program. He also managed three operational divisions focused on the maintenance and improvement of IVGID’s equipment and infrastructure. Brad began his career as a consulting engineer specializing in environmental remediation system design and operations for large industrial clients. The Tuolumne Utilities District (TUD) Board of Directors has selected Edwin R. Pattison of Modesto as the new General Manager for the District. Mr. Pattison currently serves as General Manager for Mountain House Community Services District Edwin R. Pattison since 2014. He has also served as City Manager for the City of Ione and Water Resources Manager for Calaveras County Water District. As General Manager for the Mountain House CSD, a full-service municipality facing significant growth, Mr. Pattison oversees the Public Safety, Public Works including water and wastewater, Parks and Recreation, Finance and Administration departments. Mr. Pattison has 30 years’ experience in public agencies/utilities and has worked extensively in the foothill regions. 26

Jack Bebee has been selected as the Fallbrook Public Utility District’s general manager. Bebee had been FPUD’s acting general manager since late 2017, but the district went through the formal process to replace the previous Brian Brady who retired. A 5-0 FPUD board vote August 27 chose Bebee as the general manager and approved his contract. Brady officially retired January 12, but in his final months with FPUD he focused on external matters and Bebee was given the title of acting general manager. Bebee is also on the Special Districts Advisory Committee of San Diego County’s Local Agency Formation.

Rick Rogers

The San Lorenzo Valley Water District voted August 16 to appoint district Director of Operations Rick Rogers as interim district manager when current District Manager Brian Lee departs the district. Rogers previously served as interim district manager for six months in 2014-2015, prior to Lee’s hiring.

Santa Cruz City Manager Martín Bernal has filled the position of city parks and recreation director, naming Tony Elliott as the new hire. Elliott, 35, most recently worked in the same role in Fishers, Indiana and has more than a decade’s experience in the public sector. He also has received awards in excellence for innovative parks programming and speaks fluent Spanish. Brian Pendleton was named deputy general manager for the Ventura Port District where he will serve as second in command to oversee District operations. Pendleton began in 2015 as business operations manager for the District, leading its economic development strategy and supervising various department managers.

Greg Fish

Carpinteria-Summerland Fire Protection District is welcoming Greg Fish as the new fire chief for the district. Chief Fish hails from the City of Glendale where he’s spent the last 31 years in fire service. “I am excited and humbled to be part of the CarpinteriaSummerland team. I look forward to learning how the department can better serve the community and leading that effort,” he said. California Special Districts • Nov-Dec 2018


Santa Clarita Valley Water Agency officials announced the hiring of Eric Campbell as its new chief financial and administrative officer. Campbell joins SCV Water with 30 years of financial experience in the public and private sector. As CFAO, he will oversee the agency’s financial, risk management, information technology, and administrative activities and provide strategic financial leadership for complex water supply and facility transactions.

Jack Roberts The Big Bear Airport District Board of Directors approved a contract for the new airport general manager Jack Roberts. A graduate of Big Bear High School, Roberts was a firefighter in the U.S. Air Force and eventually worked at the Pentagon for 11 years. Prior to accepting the job at the airport, Roberts resigned from his post at the Big Bear Lake Department of Water and Power. Roberts said he plans to continue to serve as an elected director on the Bear Valley Community Healthcare District board. Craig Miller is the new General Manager of Western Municipal Water District. He is responsible for managing the day-to-day activities of the District, including oversight of Finance, Operations, Engineering, Craig Miller Community Affairs and Water Resources. Mr. Miller joined the District in 2014. He currently sits on the Association of California Water Agencies Groundwater Committee, and is a Board member of the California Municipal Utilities Association.

Volume 13 • Issue 6

Vista Irrigation District has been presented with the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA) for its comprehensive annual financial report (CAFR) for fiscal year ending June 30, 2017. This certificate is the only national award for public sector financial reporting. This marks the eleventh year the district has received recognition for excellence in financial reporting and transparency. Western Municipal Water District (Western) has achieved 2018 Gold Level “Workplace Achievement Index” recognition from the American Heart Association (AHA). The AHA Gold designation recognizes Western for taking significant steps to build a culture of health in the workplace. In addition, Western was honored as a 2016 and 2017 IE Top Workplace thanks to its dedication to its employees through its wellness and other programs that encourage learning and growth to enable employees to work at

their full potential. Western Municipal Water District Human Resources Analyst Pam Davis received the distinguished 2017 AHA Lifestyle Change Award, recognizing and celebrating the positive changes she made to affect the quality of her life and improve her health. The Municipal Water District of Orange County was awarded the 2018 #INSPIRED PROTOS Award of Excellence for Website Development for its outstanding efforts to rebuild and modernize the District’s website, MWDOC.com. This valuable resource serves as the primary water information hub for all of Orange County. The award was presented by the Orange County Public Relations Society of America (OCPRSA) at the 43rd annual OCPRSA PROTOS Awards Gala on September 27, 2018. The American Association of Port Authorities awarded the Port of Hueneme the high accolade “2018 Comprehensive Environmental Management Award” at the annual AAPA Energy and Environment Seminar. The Port was selected for its development and execution of a comprehensive plan that seeks to enhance the environment through sustainable, efficient, and green port operations.

Do you have Movers and Shakers in your districts to highlight? Send to Communications Specialist Vanessa Gonzales at vanessag@csda.net for consideration in this section of California Special Districts.

27


COMMUNITY CONNECTIONS

Telling Our Story By Gina Terraneo, Management Analyst II Costa Mesa Sanitary District 28

T

he Costa Mesa Sanitary District (CMSD) believes in the importance of telling our story. Like many special districts, CMSD sees value in gaining public trust by demonstrating that special districts are not shadow governments, but rather they are highly focused and efficient entities that seek to improve their communities. In particular, CMSD seeks to highlight its leadership within the wastewater and solid waste industries, along with the partnerships that allow it to protect its community’s health and the environment. Beginning in April of 2018, CMSD launched a biannual educational series called the Citizens Environmental Protection Academy (CEPA) in an effort to share CMSD’s story and engage its customers in an informative and interactive learning experience. By signing up for this free series, residents get a behind-the-scenes look at the

California Special Districts • Nov-Dec 2018


facilities that recycle CMSD’s solid waste and wastewater, presentations from knowledgeable industry professionals, and workshops demonstrating best practices and agency equipment. Even though CMSD has been in existence for 74 years, many community members are unaware of the role that CMSD plays in providing services that are essential to their quality of life and/or to the success of their business. This is because solid waste and wastewater collection services are often considered “out of sight, out of mind.” Generally, people expect their toilets to flush and their trash carts to be emptied regularly. However, most may not consider the innovative technology, equipment, procedures, and expertise of the professionals that are responsible for diverting recyclable materials away from landfills and preventing sanitary sewer overflows. CEPA allows residents to see these processes in action and hear directly from the individuals that do this type of work every day. This is perhaps the most important part of CMSD’s story – the hard-working men and women that enact the missions of CMSD and its partner agencies. During its first iteration, CEPA featured the following program: Volume 13 • Issue 6

• Day 1 – Attendees embark on a tour of the Orange Coast College Recycling Center, the nation’s first recycling buy-back center. The recently expanded facility is financially self-sustaining and collects nearly 1,500 tons of recyclable materials from residents each year. Following the tour is a presentation from CMSD staff about special waste collection programs that are free to CMSD solid waste customers and a presentation from EEC Environmental about CMSD’s Fats, Oils, and Grease (FOG) Program to reduce the amount of restaurant FOG entering the wastewater system. Lastly, a member of CMSD’s Wastewater Maintenance Crew provides a fascinating demonstration of a 41,000 pound heavy duty wastewater cleaning truck to exhibit the equipment and technology that is used to prevent wastewater from entering local waterways. • Day 2 – Academy participants are taken on a tour of the transfer station and Materials Recovery Facility (MRF) that is owned and operated by CR&R Environmental Services, CMSD’s exclusive franchise trash hauler. This facility sorts and processes CMSD’s recyclable materials, giving attendees a firsthand look at where their trash goes

after it is collected from their homes. CR&R recycles over 27,000 tons of materials from CMSD residents annually! • Day 3 – Ever wonder where the water goes after you flush your toilet? Academy participants find out when they visit CMSD’s LEED Platinum Wastewater Maintenance Yard to learn more about how CMSD maintains the system that collects wastewater from homes and businesses and delivers it to the Orange County Sanitation District (OCSD). Attendees then tour OCSD’s wastewater treatment facility, which treats 185 million gallons of wastewater a day for over 2.1 million residents in North Orange County. After learning how wastewater is treated by OCSD, participants visit the Orange County Water District’s (OCWD) groundwater replenishment system to discover that the treated wastewater is cleaned even further through the state of the art processes of microfiltration, reverse osmosis, and ultra violet light with hydrogen peroxide. The newly purified water is then reintroduced back into the groundwater system where it will eventually become drinking water for Orange County residents. continued on page 30

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A total of 35 residents participated in CEPA’s Spring 2018 series and surveys indicated an average rating of 9.57 on their overall experience (on a scale of 1-10, 10 being the highest possible score). During the Fall 2018 series, CMSD added a presentation from Inside the Outdoors to demonstrate best practices in household recycling and an additional tour of CR&R’s cutting edge Anaerobic

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Digestion Facility, where organic materials (such as residential yard waste and food waste) are recycled into renewable natural gas that fuels CR&R’s collection fleet. In the future, CMSD seeks to continue providing residents with relevant and engaging education through CEPA. CEPA’s comprehensive programming could not be brought to residents without the help of CMSD’s partners: CR&R Environmental Services, Orange Coast College Recycling Center, Orange County Water District, Orange County Sanitation District, EEC Environmental, and Inside the Outdoors. Additionally, CEPA is partially funded by Orange County Waste & Recycling’s Regional Recycling and Waste Reduction Grant. Telling our story allows CMSD to make a direct connection with residents. Putting a name to a face, understanding a job title, witnessing the transformation of solid waste and wastewater into renewable resources – together these pieces of information seek to create an understanding of who we are, what we do, and why we do what we do. It is CMSD’s hope that these practices of accessibility and openness will continue to set a standard of transparent government among all special districts.

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make your

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California Special Districts • Nov-Dec 2018


Business Affiliate Special Acknowledgements BUSINESS AFFILIATE

DIAMOND LEVEL

BUSINESS AFFILIATE

PLATINUM LEVEL

Atkinson, Andelson, Loya, Ruud & Romo www.aalrr.com

Best Best & Krieger www.bbklaw.com

Richards Watson Gershon www.rwglaw.com

CSDA Finance Corporation www.csdafinance.net

Hanson Bridgett www.hansonbridgett.com

Umpqua Bank www.umpquabank.com

Meyers Nave www.meyersnave.com

Pacific Gas & Electric Company www.pge.com

Special District Risk Management Authority www.sdrma.org BUSINESS AFFILIATE

GOLD LEVEL

Aleshire & Wynder www.awattorneys.com

CV Strategies www.cvstrategies.com

Bid Fast and Last Auctions www.bidfastandlast.com

Five Star Bank www.fivestarbank.com

PARS www.pars.org   REC Solar www.recsolar.com

Burke, Williams & Sorensen www.bwslaw.com

Hermocillo-Azevedo Strategic Communications | www.hastrat.com

Renne Public Law Group, LLC (RPLG) www.rennepubliclawgroup.com

California CAD Solutions www.calcad.com

Kutak Rock, LLP www.kutakrock.com

SmartWatt Energy www.smartwatt.com

Climatec www.climatec.com

Liebert Cassidy Whitmore www.lcwlegal.com

Streamline www.getstreamline.com

CPS HR Consulting www.cpshr.us

Nossaman www.nossaman.com

Tyler Technologies www.tylertech.com

CSDA’s Commercial Card Program Umpqua Bank is proud to be selected as the CSDA’s Commercial Card Program provider. CSDA’s specialized card program offers one powerful business tool to manage purchasing, travel, fleet and expense management – all in one card. It’s backed by Visa® and designed with special districts in mind, so your agency can securely manage expenses and payables while giving employees flexibility without sacrificing control. In addition, the card offers a very competitive rebate structure that aggregates the total spend by all participating agencies. Your district can be earning at least 1 percent cash back on your commercial card spend. To learn more about this exclusive CSDA member benefit, contact Vanessa Ryan at 916.724.1214 or VanessaRyan@umpquabank.com.

Volume 13 • Issue 6

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CSDA 2018 Award for innovative Project of the year – large District

Heron Landing Community Park Sets an Award-Winning Standard for the Cordova Recreation & Park District

O

n December 16, 2017 the Cordova Recreation and Park District opened the 20-acre Heron Landing Community Park. During extensive community outreach stakeholders provided input regarding the selection of amenities. The Cordova Recreation and Park District worked with multiple reviewing agencies to create an accessible and safe community space. As the only community park in the south-west quadrant of the District, Heron Landing provides a great level of service to meet the District’s Master Plan Facility recommendations. Park amenities include: • Over 2 miles of paved walking trails • One (1) California-native plant demonstration garden overlooking natural wetlands • Two (2) softball fields for adult and youth programs • Two (2) lighted tennis courts for adult and youth programs • Two (2) bocce ball courts for adult and youth programs • Two (2) half basketball courts

32

• One (1) turf volleyball court for adult and youth programs • The District’s largest playground for age groups 0-5 and 5-12 years old • One (1) spray park • Two (2) public restroom buildings • Two (2) large picnic shelters which support groups approximately 30-40 people (each) • More than twenty (20) individual picnic areas ADVANCING THE CONCEPT OF PARKS AND RECREATION From the earliest stages of planning, the District endeavored to make sure all community voices were heard. Seven community meeting were held throughout the park design process. The final master plan was approved at a public Board of Directors meeting. An additional community meeting was held after master plan approval to specifically discuss the proposed sports field lighting. The District took residents on a tour of existing parks to demonstrate how the sports field lighting would not impact surrounding homes. A final public meeting was held to address neighborhood concerns about potential impacts to residential parking. Overall this park furthers the District’s mission to “lead the region in recreation and parks through excellence and transparency in serving the needs of our diverse and growing community.” District staff kept residents informed throughout the duration of construction by posting drone fly-over videos (which garnered 1,977 views) and published regular updates on the District website. When construction was nearing completion, the District conducted a site visit with a concerned resident regarding accessibility. Additional accessible picnic areas were constructed because of this meeting. California Special Districts • Nov-Dec 2018


2018 AWARD WINNER

CELEBRATING NATURE Heron Landing is named for More than ever, children need its wealth of water birds that use the adjacent wetland as a places where they can be active. stopping point along migratory Heron Landing Park provides a paths. The two-mile perimeter safe environment that encourages trail connects to the City’s active play. larger bike trail network, which ultimately connects with the Folsom Canal and American A CONSERVATION ETHIC River. It is possible to get from Heron Landing Community Park to The park was designed with resource the Folsom River without having to bike on the roads. As development conservation in mind. The inclusion of a grows, these 20 acres of open park land will be increasingly treasured by corporation yard in the park design provides a the local community. The park playfully celebrates elements in nature. satellite maintenance facility for District staff. Large shade canopies in the shape of yellow flowers frame the spray With the addition of this facility, a 14-mile park. Colorful butterfly shade canopies “flutter” through the play area. round-trip drive to the nearest corporation yard Amphibious animal sculptures appear to emerge from the water-colored is eliminated, thus saving time and money, while play surfacing. Children will have plenty of loose materials to gather: reducing carbon emissions. Typically, the largest pine cones, sticks, and grasses, in addition to a full sand box for creative, environmental resource used in a park is water. unstructured play. In the play area, bright red tree leaves contrast To address this issue, the park was designed with water-efficient irrigation technology. Additionally, delicate gold feather grass. A demonstration garden includes a seating area where the public can observe the adjacent wetland to the south. plant material selection included many droughttolerant and low water-use plant species. Finally, PROMOTING HEALTH integration of advanced computer technology Heron Landing Community Park offers a variety of recreational activities allows District maintenance staff to remotely in the District. The District anticipates soccer, lacrosse, softball, flag football, control and diagnose the sport lighting, spray park Both in the beginning and end stages of the project, the District has relied on community outreach to guarantee the success of the project and generate a sense of pride and ownership of the park.

and irrigation.

Volume 13 • Issue 6

continued on page 34

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CSDA 2018 Award for innovative Project of the year – large District

with residents of the disabled community to include specific accessible elements throughout the park so that a variety of experiences can be shared by people of all abilities. At 53,000 square feet, the playground at Heron Landing Community Park is the largest in the District. It includes a wide variety of play experiences for kids with varying types of abilities. Next to both play areas is a large sand play space and on the opposite side is a spray park with nature-themed spray elements. With all, prepare to: bounce, spin, swing, climb, jump, crawl, dig, walk, run or dance your way through these play areas!

tennis, bocce ball, basketball, turf volleyball, kickball, and ultimate frisbee (just to name a few). More than ever, children need places where they can be active. Heron Landing Park provides a safe environment that encourages active play. PROMOTING FUN The park encourages social interaction through various play equipment pieces like the climbers and spinners. By providing two half basketball courts instead of one full court, more groups are encouraged to play. The District worked closely

PLANNING FOR THE FUTURE Heron Landing Community Park was designed to support the growth that is expected in the Rancho Cordova community. The amenities within its acres reflect years of master plan work and stakeholder involvement. The gentle topography and natural beauty that change unexpectedly each season invite park users to return again and again. Heron Landing Community Park is a successful model for the planning and construction of great community parks in the 21st century. Look for the 2018 Innovative Program of the Year – Small District in the next issue of California Special Districts.

Best Best & Krieger LLP attorneys and advocates have helped California’s special districts serve their clients in innovative ways for nearly a century. BB&K is now helping public agencies navigate Public Records Act compliance with our new Advanced Records Center. Combining legal know-how with cutting-edge technology, ARC provides comprehensive and cost-effective support for all records-related matters. To learn more, email ARC@bbklaw.com.

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

34

California Special Districts • Nov-Dec 2018


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Volume 13 • Issue 6

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MANAGERS CORNER

Employee Development and Succession:

What’s Your Desirable Future?

By Tim Shackelford, Fire Chief, Chino Valley Fire District and Mike Messina, Organizational Development Consultant, Messina and Associates, Inc.

Unpredictable, a word that often comes to mind when we think about the future. This is for good reason especially in the public sector where often times we are impacted by events that are beyond our control. Events such as natural disasters, manmade disasters, economic downturns such as we experienced in 2008, or even local and national political climates that change our focus and intent. Historically the public sector has tried to plan for such events and given the nature of unpredictable events we haven’t fared too badly. But one area that is almost completely predictable and oftentimes has a long lasting negative impact on our organizations has gone unconsidered, succession planning. Given the large investment many organizations make preparing for large scale events that are unpredictable 36

it would seem prudent to engage in the relatively inexpensive process of planning for future leadership. While succession planning is often discussed most organizations are hard pressed to define the plan that is in place or if we can it’s something to do with the upper levels of management or at best first line supervision and up. For this article, the term succession planning will be replaced with a more comprehensive process called succession development planning (SDP). What’s the difference? SDP engages employees in the organization at all levels; it is even present in the hiring and screening of new employees. In fact employee development is the key component in succession development as future leaders are identified and prepared much earlier in their careers than has been the case with traditional succession plans.

This article offers your organization a step-by-step guide for succession development planning and implementation. The goal is to engage interested employees in creating their own specific development plan with the assistance of their immediate supervisor. Increasing employee engagement can reduce employee turnover, increase job satisfaction, create more innovation and assist in identifying future leaders for succession. By using the existing performance appraisal process as an instrument to ensure development and assist employees in attaining their career goals, assessment of progress can be routinely tracked. As well the talent development aspects of this plan can serve as a tool to assist the organization with a higher level of focus on succession planning. The initial step in plan development is a meeting with executive staff members to discuss the importance of employee development. Discussion points should include how an intentional focus on career development for all employees leads to greater employee engagement and assists in identifying future leaders. The overall outcome should include the realization that having a development plan will send a strong message to employees that management places a high value on investing in people. The second step is creating a leadership development team (LDT) comprised of supervisors, middle managers, managers and other employees (union representatives, etc.) that are interested in being part of a “train the trainer” process to help design a development plan for the organization. The process for putting together this team can be as simple as an all-inclusive email that invites interested parties to attend an informational meeting describing the duties of the LDT and the organization’s need to develop employees. Executive staff and others should invite key members in the organization to attend the initial meeting. Key members can be those who have demonstrated an interest in leadership training in the past, influential members from all levels of the organization, union members, and others. The LDT’s key function is to collectively develop a customized plan for implementing and maintaining an array of development California Special Districts • Nov-Dec 2018


opportunities for staff. Some things for the team to consider are: • The effectiveness of the existing performance evaluation tool for employee development • The ease of use of the existing performance appraisal tool • When implementation of the plan will occur organizationally • When individual implementation will occur (mid annual evaluation or at the next scheduled evaluation date) • How to develop a library of resources including reading materials, video training aids, organizational intranet, etc.) • How often to schedule LDT meetings • Effective use of the TILL matrix as a guide for employee goal development (TILL = Technical, Interpersonal and Leadership Learning) • How to conduct an individual SWOT analysis • How to develop a personal growth and development network • How to conduct a coaching conversation • How to deal with non-engaged employees The performance appraisal process will serve as a tool for development as well as a method of documenting poor or unacceptable performance. If deficiencies are noted, they can be used as a method of identifying goals for improvement. Members of the LDT will serve as ambassadors to all members of the organization to make the plan clear and to provide assistance

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to all supervisors in their work with individual employees. The final step after all of the above bullet-pointed details are worked through by the LDT will be an employee plan that encompasses the following: • An employee meeting with his/her supervisor to identify career goals (hopes and dreams) • A personal SWOT analysis can be completed by the employee to identify known or suspected Strengths, Weaknesses, Opportunities and Threats • Using the TILL matrix both parties will come to consensus on the goals for the coming year. (Technical, interpersonal, and leadership learning) • The supervisor will assist the employee in developing a career networking team for the employee to utilize in development • The two will decide on future check-up dates (quarterly) to assess progress (nothing precludes impromptu meetings outside of regularly scheduled meetings to address problems) A succession development plan gives you the opportunity to make a lasting impact on your organization and employees. The future is unpredictable, but the transition of leadership in your organization doesn’t have to be. Planning for future leaders through succession development is a relatively inexpensive way to ensure your organization’s success and financial stability into the future.

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LEGAL BRIEF

Public Contracting Update: How to Spot Conflicts of Interest with Independent Contractors and Avoid Violating Government Code 1090 By Eric S. Casher, Principal, Meyers Nave

Did you know that an independent contractor can be considered a “public official” for the purpose of determining conflicts of interest under Government Code 1090? That is what the California Court of Appeals recently held in Strategic Concepts, LLC v. Beverly Hills Unified School District, which also confirmed several Court of Appeals decisions and mirrors the position of the California Fair Political Practices Commission (the State agency responsible for enforcing Government Code 1090). 38

Even the California Supreme Court has weighed in on this important issue, holding in People v. Superior Court (2017) 3 Cal.5th 230 (Sahlolbei) that Government Code 1090 may apply to independent contractors, in particular, “when they have duties to engage in or advise on public contracting that they are expected to carry out on the government’s behalf.” The penalties for violating 1090 are severe. A contract that violates 1090 is deemed void, the California Fair Political Practices Commission has the authority to fine violators, and criminal sanctions may apply in extreme cases. It is critical for public agencies to understand the nuances of Government Code 1090, when it applies to independent contractors, and how to avoid potential violations. Following is information on what public agencies need to know, steps for spotting 1090 issues, and a few practical suggestions for avoiding 1090 violations.

California Special Districts • Nov-Dec 2018


What is Government Code 1090? Government Code 1090 prohibits public officials, while acting in their official capacities, from making contracts in which they are financially interested. Under 1090, “the prohibited act is the making of a contract in which the official has a financial interest.” (People v. Honig (1996) 48 Cal.App.4 th 289, 333.) That makes sense. A public official or employee should not have a financial interest in any contract that he or she has authority to approve. Who is Covered by Government Code 1090? Traditionally, the law considered “public officials” to be the awarding agency’s Board, Commission, or City Council. High-level public employees are also considered “public officials” with authority to make contracts for the purposes of 1090. However, recent case law, bolstered by advice letters from the California Fair Political Practices Commission, have expanded the definition of “public officials” to include independent contractors. This means that if an independent contractor had a financial interest in a contract that was approved by a public agency, and the independent contractor “participated” in the making of the contract, the contract would be void under Government Code 1090. What Types of Independent Contractors are Covered by 1090? Government Code 1090 has been applied broadly to a range of independent contractors. In Hub City Solid Waste Services, Inc. v. City of Compton, awarding a contract to a waste management consultant violated 1090 when the consultant, already under contract, advised the city to hire his firm for a subsequent contract. In Sahlobei, mentioned above, a 1090 violation occurred when a physician Volume 13 • Issue 6

was an independent contractor for a public hospital and pressured the hospital to give another doctor a contract in which he (the independent contractor) had a financial interest. In Davis v. Fresno Unified School District, 1090 was violated when a contractor advised the District on development plans, specifications and construction documents, and then was later awarded a lease-leaseback agreement for the development of the same project. Also, the California Fair Political Practices Commission regularly publishes advice letters regarding 1090 and recently opined that a design firm involved in designing a golf course was prohibited from bidding on the construction of the golf course because the design firm was intricately involved in the design of the course which formed the basis for the RFP for the construction services. How Can 1090 Pitfalls Be Avoided? First, keep in mind that a 1090 violation occurs at the time a contract is made. Thus, public agencies should be cautious when an independent contractor is currently under contract with the agency and is being considered for a new contract for services related to the scope of work of the current contract. Asking key questions can help assess potential problems in this scenario. For example, does the independent contractor’s original scope of work make it such that they have participated in the making of the second contract? Was their design used for the RFP? Did they do the underlying study upon which the RFP for the new contract was based? Did they advise agency staff on issues related to procurement of the new services and/or the new contract? What are the Lessons Learned? As a best practice tip, whenever considering the approval of a contract with an independent contractor who

has previously been under contract with the agency, ask the essential question – might 1090 apply here? Make sure to understand the facts related to potential 1090 issues before presenting a contract to the Board for approval. As a practical matter, public agencies could reconsider a common contracting approach which is to enter into numerous new and subsequent agreements with the same independent contractor to perform a range of different services. An alternative approach would be to consider having the independent contractor enter into one agreement with a preliminary scope of work that covers the full range of potential work and/ or services for the project. Again, it is important to remember that the 1090 violation occurs at the point when the subsequent contract is made. Finally, the California Fair Political Practices Commission regularly issues advice letters that can be searched to seek guidance on how 1090 has been applied to different factual situations. If an agency has time before a contract is approved, it is possible to request an advice letter from the Commission so they can provide guidance on whether a particular contract approval might violate 1090. Eric S. Casher is a Principal at Meyers Nave with more than 10 years of experience providing transactional, litigation and regulatory assistance to public entities throughout California, focusing on public contracting and construction. He currently serves as the City Attorney for the City of Pinole and the General Counsel of the East Bay Dischargers Authority, and was a former Commissioner with the California Fair Political Practices Commission. He also serves as an Ex-Officio Committee member on the League of California Cities’ Fair Political Practices Commission Committee. Eric shares his public contracting expertise as a presenter at the annual American Public Works Association Conference, League of California Cities’ Public Works Officers Institute, and County Counsel Association’s Public Works and Contracts Conference. (ecasher@meyersnave.com, 510-808-2000)

39


TAKE ACTION

Governor Signs and Vetoes Key Bills Related to Special Districts on public works projects. Thank you to all our members who responded to our Calls-to-Action. Your letters of support or opposition make a difference for special districts throughout the state. As we prepare for another legislative session, we hope you continue your advocacy efforts and meet with your legislative representatives, especially those who are newly elected. This year was such a success because of your efforts. Thank you! Take Action: Return this mail: CSDA, 1112 I Street, Suite email: advocacy@csda.net fax: 916.520.2466

form to CSDA

200, Sacramento, CA 95814

District NetWorks CSDA Contact! Local NETWORKS YourDISTRICT California Special Districts

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TAKE ACTION

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Glenn

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Survey Grassroots Mobilization Do You Know Your Legislator?

Alameda

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Central Network

Mono

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personal legislative contacts Willingness to contact your to special districts: regarding an issue of importance 4

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3

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with whom you are Names of state legislators of your relationship: acquainted, and the strength

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Equipping special district leaders for grassroots advocacy and public outreach

Los Angeles

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WEAK – STRONG

LEGISLATOR NAME

1 2 3 4 5 1 2 3 4 5

1 2 3 4 5

Outreach Champion Help Get the Word Out

my name to letters I would be interested in signing record to reporters, to the editor, speaking on the s to spread and participating in other opportunitie I would have final the word about special districts. ions attributed to me. sign-off on any communicat

LAST UPATED APR. 15, 2016

COLLEEN HALEY colleenh@csda.net • Bay Area Network

DANE WADLÉ danew@csda.net • Northern Network • Sierra Network

California Special Districts Association

at csda.net Sign up for Advocacy News go to CSDA Login to your account at csda.net, and join the Communities - All Communities to hear breaking stories. Advocacy News community

CHRIS PALMER chrisp@csda.net • Coastal Network • Southern Network

STEVEN NASCIMENTO stevenn@csda.net • Central Network

Districts Stronger Together

www.csda.net 3/20/18 11:26 AM

2018 Take Action Brochure.indd

1

CSDA analyzed and monitored 1,285 and directly lobbied 238 legislative measures.

G

overnor Jerry Brown had until September 30 to sign or veto any bill that made it to his desk as his final term as Governor comes to a close. In the 2017-2018 Legislative Session, 5,617 legislative measures were introduced in the Legislature. CSDA closely analyzed and monitored 1,285 of those bills and directly lobbied 238 of those legislative measures. Ultimately, CSDA supported 119 bills and 80 of those measures were signed into law. Among those bills signed into law was CSDA’s 2018 sponsored legislation by Senator Mike McGuire, SB 929, requiring special districts to maintain a website while also recognizing any hardships that may prevent some districts from meeting the requirement. CSDA opposed 79 measures over the twoyear session and only 20 of those bills became law. Thanks to diligent work with the authors and multiple stakeholders, CSDA was able to move from a form of opposition to neutrality on 26 different measures. One notable measure vetoed by Governor Brown was AB 2447 (Reyes), which would have imposed burdensome new CEQA reporting requirements 40

CSDA supported 119 bills and 80 of those measures were signed into law. CSDA opposed 79 measures over the two-year session and only 20 of those bills became law.

Look for the updated Take Action brochure, designed to equip district leaders for grassroots advocacy and public outreach, at upcoming CSDA events, conferences, or when speaking to your public affairs field coordinators.

Take Action Winter With the Legislature recessed until the new year and legislators are back in their legislative districts. Now is a great time to reach out to your elected officials and let them know the important work your district is doing. • Schedule a “meet-and-greet” with newly elected local legislators in your district’s service territory. • Follow your local representatives on social media. • Attend the seasonal festivities and holiday parties sponsored by legislative offices in your community. • Save the date for the 2019 Special Districts Legislative Days in Sacramento, May 21 – May 22.

California Special Districts • Nov-Dec 2018


IN BRIEF

From left to right: Sycamore Grove Ranger Eric, Sycamore Grove Ranger Danny, Patricia Lord LARPD Assistant General Manager, John Lawrence Former LARPD Assistant General Manager, Robert Doyle EBRPD General Manager, Marc Roberts Livermore City Manager, Tim Barry Former LARPD General Manger, Greg Davis LARPD Foundation Treasurer, Ayn Wieskamp EBRPD Board of Directors Vice President, Mathew Fuzie LARPD General Manager, Maryalice Summers Faltings LARPD Board of Directors Chair, David Furst LARPD Board of Directors Vice Chair, Jan Palajac LARPD Director, Philip Pierpont LARPD Director, Beth Wilson LARPD Director, Stacey Kenison LARPD Marketing and Operations Supervisor and daughters Avarie and Audrey Kenison.

Livermore Area Recreation and Park District Hosts Sycamore Grove Park Arroyo Del Valley Regional Trail Grand ReOpening and Ribbon Cutting Ceremony

Volume 13 • Issue 6

Livermore Area Recreation and Park District hosted the Grand Re-Opening of the Sycamore Grove Park Arroyo Del Valle Regional Trail with a Ribbon Cutting at the Sycamore Grove Park Wetmore Entrance on October 25th. The Sycamore Grove Park Arroyo Del Valle Regional Trail Renovation is a 2.5 mile trail renovation that began in the summer of 2018. Renovations included re- paving of the 2.5 mile trail with information markers painted along the path, rock walls and french drains built along the trail and hydro-seeding over construction areas. The renovations have been completed in partnership with the East Bay Regional Park District. The East Bay Regional Park District provided $500,000 in funding, $700,000 was provided from reserves approved by Livermore Area Recreation and Park District Board of Directors with an additional $75,000 authorized for project management expenses. Livermore Area Recreation and Park District Staff, Board Members, East Bay Regional Park District staff, representatives from the City of Livermore and the

community gathered at the trail head at Sycamore Grove’s Wetmore Entrance to celebrate the renovated trail. New LARPD General Manager Mathew Fuzie welcomed attendees and thanked the community and those who helped make the renovations possible. General Manager Fuzie introduced speakers including Maryalice Summers Faltings, Chair of the LARPD Board of Directors, Robert Doyle, General Manager of the East Bay Regional Park District, Greg Davis, Treasurer of the LARPD Foundation, and Ayn Wieskamp, Vice President of the East Bay Regional Park District Board of Directors, as well as former LARPD General Manager Tim Barry who gave a brief history of the project. Shareen Ram from Senator Steve Glazer’s and Assembly member Catharine Baker’s office was in attendance to present the Livermore Area Recreation and Park District with a Certificate of Recognition for their work improving the Sycamore Grove Park Arroyo Del Valle Regional Trail. To find out more information about the Livermore Area Recreation and Park District, go online to LARPD.org or call 925-373-5700. 41


MANAGING RISK

Meet the new Chief Executive Officer I interrupt this month’s installment of “Managing Risk” to take the opportunity to introduce myself to the readers of California Special Districts magazine. My name is Laura Gill, and I’m SDRMA’s new Chief Executive Officer. I introduced myself to many of you at the SDRMA Safety Awards Breakfast session during the CSDA Conference in Indian Wells last month. (You might remember the “Cinderella” moment I had when I lost my shoe climbing the stairs to the stage!) I came away from the conference very impressed at the strength of the CSDA membership. You all are dedicated to your service and engaged in discussions about improving service delivery. And, frankly, you all seem to enjoy your work and each other! I am also excited to work with CSDA Chief Executive Officer Neil McCormick to make the partnership between our two organizations even stronger. I have an extensive background and knowledge of local government operations through my 30 years of service to local governments, 15 of which have been in chief executive positions in California. Prior to my work at SDRMA, I served as the City Manager for the City of Elk Grove and the Chief Administrative Officer for El Dorado County. In these jurisdictions, I worked with special districts leaders to ensure that our citizens received excellent service while ensuring the efficient use of tax dollars. At the end of the day, our citizens don’t really care which government is responsible for a particular service; they just want the service performed well. My 42

partnerships with special districts over the past 15 years showed me what great partners you are in providing core services to our constituents. I have come to appreciate the work that you do every day for your special districts, and my knowledge of your day-to-day activities will serve me well in supporting SDRMA’s mission of “maximizing protection and minimizing risk” for our members. I have been with SDRMA since mid-May, and I have come to know a staff that is entirely committed to providing excellent customer service to our members. We keep our membership in mind in every staff conversation and decision we make. I have also come to know a Board of

Directors that is keenly interested in the quality of services we provide, as well as the fiscal soundness of our programs. I am very lucky to begin my service to an organization with such strong fundamentals. Over the next several months, you’ll see more of our SDRMA staff within the special district community. Right now, you see our risk management staff, led by Chief Risk Officer Dennis Timoney, out and about across the State. If they aren’t helping a special district navigate a claim, they are working with a special district to identify and correct workplace issues before they turn into workers’ compensation claims. If your special district suffers a loss due California Special Districts • Nov-Dec 2018


to a wildfire or a flood, Dennis and his staff are there to start and complete the recovery process with you. However, we want to interact with our members (and potential members) on a more routine basis. Former Congressman and New York City Mayor Ed Koch was known for asking his fellow citizens, “How’m I doing?” We want to know from you how are we doing for you. To that end, you’ll soon be able to engage directly with our Member Services staff, led by Chief Member Services Officer Ellen Doughty, in various venues. Ellen will attend CSDA Affiliated Chapter meetings and industry-specific conferences. If she happens to be in your neighborhood, Ellen will schedule a meeting with you to see what SDRMA can do for you. In addition, I’ll be visiting some of you to become more acquainted and to get your feedback. However, you don’t have to wait for us to make an appearance to let us know what you think. Please feel free to contact us by phone or by email if you have a question, a suggestion for improvement, or a suggested topic for our safety workshop. Thank you to all of you that have welcomed me into the special district family! I look forward to meeting more of you in person. And, with that, our regularly scheduled column will appear next month.

I came away from the conference very impressed at the strength of the CSDA membership. You all are dedicated to your service and engaged in discussions about improving service delivery.

SDRMA Board and Staff Officers

Staff

Jean Bracy, SDA, President, Mojave Desert Air Quality Management District

Laura S. Gill, CPA, 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, SDA, 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 6

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

43


MONEY MATTERS

Flores v. City of San Gabriel Two Years Later By Lisa S. Charbonneau, Attorney, Liebert Cassidy Whitmore

M

ore than two years have passed since the U.S. Court of Appeals for the Ninth Circuit decided Flores v. City of San Gabriel, a landmark 2016 case in which the Ninth Circuit held that cash payments employers make to employees in lieu of providing health benefits must be included in overtime rates under the Fair Labor Standards Act (FLSA). The U.S. Supreme Court denied review of the case in May 2017. The decision is governing law for California and the seven other states that within the Ninth Circuit. In addition to holding that agencies must include “cash in lieu” payments in FLSA overtime rates, the Flores Court also held that if the total aggregated

amount of cash-in-lieu paid to employees is more than 40% of the agency’s total benefits plan spending in a year, the benefits plan itself is not bona fide under the FLSA. In the event a benefits plan is not bona fide under the FLSA, the value of all benefits plan spending (cash in lieu payments and amounts paid toward premiums) must be included in FLSA overtime rates. Since the Flores decision, agencies with cash-in-lieu arrangements have worked hard to evaluate potential impacts of the case on their overtime calculation policies and practices and steps to take in response. Many agencies have successfully bargained over topics related to the Flores decision, such as reducing cash-in-lieu amounts,

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and some have gone to impasse on the issue. Where bargaining may not be required, some agencies have nevertheless had to engage in substantive and sometimes contentious discussions with bargaining representatives regarding back overtime payment amounts and/or changing overtime calculation practices in response to Flores. Moreover, some agencies have faced lawsuits, demand letters, and other charges or complaints that employees are owed back overtime wages due to the Flores decision. Further, for many agencies, addressing Flores concerns has raised other FLSA compliance issues, which have presented their own challenges.

A Review of the Main Holdings of the Flores Case Cash in Lieu The most straightforward mandate from the Flores case is that cash-inlieu payments must be included in recipients’ FLSA “regular rate” of pay, which is the hourly rate that must be used to compensate non-exempt employees for FLSA overtime hours. Payments to those who opt-out or waive health plan coverage, as well as unused or excess plan allowance payments should be considered cashin-lieu includable in the regular rate under Flores. Important to note is that FLSA regular rate requirements (like those articulated in Flores) apply to FLSA overtime hours only. FLSA requirements do not apply to purely contractual overtime hours, i.e. contract overtime defined by labor agreement that is not FLSA overtime. Under the FLSA, overtime hours means hours actually worked in a workweek in excess of forty hours. Many labor agreements, however, provide for a measure of definition of overtime

California Special Districts • Nov-Dec 2018


Where a plan is not bona fide, all plan spending must be included in the regular rate used to pay FLSA overtime compensation. There is no bright line rule as to a percentage that will ensure an employer’s plan is bona fide. The closer an employer’s percentage is to 40%, the more likely the plan is not bona fide per the FLSA. Accordingly, employers that offer cash-in-lieu should work with legal counsel to evaluate whether their plans are bona fide under the Ninth Circuit standard. If an employer’s benefits plan is not bona fide, the FLSA regular rate for all non-exempt employees will be subject to increase, as opposed to only those non-exempt employees that receive cash-in-lieu. Thus, greater financial exposure is likely. The term “incidental” could be interpreted by a future court to be significantly lower than 40%.

Observations in the Wake of Flores

To the extent Flores has resulted in additional overtime compensation to employees, the Flores decision has operated as a windfall for non-exempt employees. That is, prior to June 2016, agencies considered cash-in-lieu a benefit not related to continued on page 46

more generous than set forth in the FLSA. For example, many labor agreements treating paid leave time as hours worked for overtime purposes or provide for overtime for work on a holiday regardless of hours actually worked in the week. FLSA regular rate requirements do not apply to such “non-FLSA” contractual overtime hours. In addition, the FLSA permits agencies to reduce overtime liability by the amount of extra compensation paid for non-FLSA overtime hours in the same workweek. For these reasons, agencies that pay contract overtime in excess of minimum FLSA overtime requirements should carefully analyze the impact of the Flores decision on their particular overtime practices in order to evaluate whether or not any change to current practices is necessary. Many agencies that have contract overtime have historically paid it at the same rate at which they pay FLSA overtime. That is one of the reasons to evaluate this carefully in your agency. Bona Fide Benefits Plans If an agency pays high amounts of cash-in-lieu and/or if a high number of employees receive cash-in-lieu, that agency should evaluate whether or not its plan or plans are bona fide per Flores. Under the FLSA, a benefits plan that pays more than an incidental amount of total plan assets directly to employees in the form of cash-in-lieu is not bona fide. As mentioned above, where total cash-in-lieu paid to employees in a year is 40% or more of total plan-related spending in that year, the plan is not bona fide under the FLSA.

Volume 13 • Issue 6

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: 877.924.2732 • www.csdafinance.net CSDA F C

45


MONEY MATTERS

overtime compensation and thus negotiated cash-in-lieu amounts without any consideration as to whether the negotiated benefit would cause increased costs to agencies. After June 2016, cash-in-lieu payments may have increased an employer’s overtime costs over night, without the employer getting anything in exchange for the additional outlay. For agencies faced with increased overtime costs due to complying with Flores, making changes to cash-in-lieu arrangements to reduce such unforeseen costs has been challenging. Decreasing or eliminating cash-in-lieu amounts paid to represented employees must be bargained and employees view reduction or elimination as a take-away. In addition, making changes to cash-in-lieu amounts may affect an agency’s compliance with IRS Code provisions governing tax-free contributions to benefits plans. Finally, shifting amounts paid as cash-in-lieu to other forms of compensation such as wage increases may increase an agency’s pension contributions.

Final Thoughts

The Flores decision illustrates the challenge of FLSA compliance for employers and the ripple effects of the FLSA on labor relations. The FLSA was enacted by Congress 80 years ago but the Department of Labor and Congress have failed to amend the Act to keep up with the realities of the twenty-first-century public sector workplace. In light of those challenges, the Flores decision reiterates the importance of coordinating with H.R., Finance, and Legal to keep current on new developments in the FLSA and to ensure effective, thoughtful, and intentional compliance where necessary. The Flores decision requires a careful analysis of all of its impacts and a game plan that makes the most sense for your agency.

LC W Liebert Cassidy Whitmore

“The highest of distinctions is service to others.” -King George VI

Lisa S. Charbonneau, Attorney in the San Francisco office of Liebert Cassidy Whitmore, represents clients in litigation throughout the state and advises clients on a variety of labor and employment law matters. She can be reached at

You serve others and LCW is honored to serve you.

lcharbonneau@lcwlegal.com.

CSDA Finance Corporation Recent Financings More than $49 million in financing for special district projects and purchases has been facilitated by the CSDA Finance Corporation so far this year. Special districts of all types and from all corners of the state have found solutions to their financing needs, large and small. Below are a few examples: El Dorado Transit Authority Bus purchases $1,200,000

Solano Cemetery District Expansion project $4,000,000

Greenfield County Water District Arsenic remediation $4,800,000

Stallion Springs Community Services District Road renovation $2,000,000

Joshua Basin Water District Pipeline replacement $3,010,000 Make the CSDA Finance Corporation your first contact. Get a free quote online at www.csdafinance.net or call 877.924.2732.

46

At Liebert Cassidy Whitmore we are your lawyers and trusted partners, helping special districts navigate challenging situations and find practical legal solutions. Clients call on us for advice and counsel, compliance reviews, and representation in all areas, including: • • • • • • • • •

Employment Law Labor Relations and Negotiations Business Law Construction Law Retirement Law Health Benefits Law Wage & Hour Law Disability Law Training

www.LCWLEGAL.com California Special Districts • Nov-Dec 2018


DISTRICTS MAKE THE DIFFERENCE

Congratulations to the Student Video Contest Winners

O

n November 30, the 2018 Districts Make the Difference Student Video Contest came to a close. In the annual contest, California high school and college students were challenged to create a 60-second video highlighting how special districts enhance the lives of Californians through the delivery of local services and infrastructure to their community. Contest officials scored each video submission and the five videos with the highest average scores were selected as finalists. The five finalist videos were then featured on the Districts Make the Difference website for a month-long period of public voting. It was a close competition with the rankings shifting several times throughout November. However, the votes have been tallied and the winners are: • 1st Place: “Special Districts Make the Difference” by Heath Dunbar from La Costa Canyon High School in Carlsbad • 2nd Place: “Delta Diablo” by Jason Bjorklund and Haley Heredia from Deer Valley High School in Antioch • 3rd Place: “CV San Special District” by Angelina Retodo from Castro Valley High School in Castro Valley

achievements. As the first-place winner, Heath will receive a $2,000 scholarship. Jason and Haley will receive the $1,000 second-place scholarship and Angelina will receive the thirdplace scholarship of $500. This year, multiple CSDA affiliated chapters participated in the Districts Make the Difference Student Video Contest. The Alameda County Special Districts Association, Contra Costa Special Districts Association, and Santa Clara County Special Districts Association each held a local contest in conjunction with the statewide competition. Students who submitted videos featuring a special district from those chapters also had a chance to win their local contest prize. Participating chapters will inform students if they are selected as a local contest winner. Earlier this year, the San Diego Chapter of the California Special Districts Association also held a separate local contest and selected their winners. Thank you to all the districts that promoted the contest and encouraged participation at each stage of the contest. The annual Districts Make the Difference Student Video Contest is an important opportunity to engage with students in your community and promote the important work and essential services provided by special districts.

The students will receive a scholarship for their

Did You Know? Districts Make the Difference has a Facebook and Twitter account and we are always looking for interesting articles and events to feature. Make sure to follow Districts Make the Difference at www.facebook.com/caspecialdistricts and www.twitter.com/ca_districts so we can see what your district is doing.

Volume 13 • Issue 6

47


BUSINESS DIRECTORY

ACCOUNTING

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“How do our practices compare with other special districts?” Questions? Let us help you turn your next audit into AWESOME!

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LEADERSHIP

OTHER

Special District Leadership Foundation

Effective Public Outreach Practical Strategic Planning

Get Recognized. www.sdlf.org 48

408/374-0977 info@rauchcc.com www.rauchcc.com CSDA Magazine Name • Mar-Apr 2018


LEGAL

Best Law Firm for Special Districts

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49


Your Community. Your Services. Your District! We are happy to announce the launch of our new public outreach campaign, Districts Make the Difference.

This campaign is centered on the concept that special districts go beyond providing important services to their communities. They make a difference in the lives of their residents and help our state thrive. The goal is to bridge the gap between special districts and the essential services that millions of Californians value. The first step is to visit DistrictsMaketheDifference.org. This new website features a simple-to-use toolkit filled with public awareness videos, web banners, posters, factsheets, and other materials that can be easily downloaded.

Follow, like, subscribe, share!

50

MAKE THE

DistrictsMaketheDifference.org DistrictsMaketheDifference.org

California Special Districts • Nov-Dec 2018


SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY

Risk management requires a well-balanced team. For over 30 years, our goal has been to serve as an extension of your staff. We provide full-service risk management programs to California public agencies including Property/Liability, Workers’ Compensation and Health Benefits coverages. We’ve built up member programs that surpass anything else on the market and we do it in a way that forms a sturdy foundation for all your coverage and risk management needs. Learn more about what we do and how we can protect your agency at www.sdrma.org or 800.537.7790.

Volume 13 • Issue 6

Trusted Risk Management

800.537.7790

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51


California Special Districts Association 1112 I Street, Suite 200 Sacramento, CA 95814

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


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