C ALI FO R N I A
SPECIAL DISTRICTS Vo l um e 14 , I s s u e 2 • M a r- Ap r 2 019
A Publication of the C alifornia Special D is tr ic ts A s s oc iation
INTERVIEW WITH KEELY BOSLER, CALIFORNIA DEPARTMENT OF FINANCE DIRECTOR CREATING A “YES, AND” CULTURE OF HIGH-LEVEL PERFORMANCE & ENGAGEMENT
Legal Brief:
City Trees and Urban Forests: Understanding Inverse Condemnation Liability
Managers Corner:
Setting Goals and Priorities Is Not Only Necessary...
Building Powerful Partnerships and Communities
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Save the Date. UPCOMING EVENTS 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 14 • Issue 2
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TABLE OF CONTENTS
Past Pieces OF THE
Interview with Keely Bosler, California Department of Finance Director
Creating a “Yes, and” Culture of HighLevel Performance & Engagement
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05 President’s Message 06 Professional Development 08 CSDA News 10 Community Connections: Plants and Insects and Trout, Oh My! 12 You Ask, We Answer: Sick Leave Donation 13 Movers and Shakers 14 Ask the Experts: Preparing for Disasters
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Solutions and Innovations: Indian Wells Valley Water District Groundwater Measurement Study
30 Legal Brief: City Trees and Urban Forests: Understanding Inverse Condemnation Liability 32
Managers Corner: Setting Goals and Priorities Is Not Only Necessary...
For editorial inquiries, contact Vanessa Gonzales, Communications Specialist at 877.924.2732 or vanessag@csda.net.
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Take Action: Title here Title here Title here
36 Risk Management: The Natural Condition Immunity 40 Money Matters: How to Prepare for a Successful Audit and Avoid Common Pitfalls 46 Districts Make the Difference: Bigger & Better 2019 Student Video Contest
For advertising inquiries, contact CSDA at 877.924.2732 or advertising@csda.net.
California Special Districts • Mar-Apr 2019
CEO'S MESSAGE
50 Years of Member Benefits, Advocacy, and Professional Development I am honored to serve as your CSDA Board President this year, especially in this monumental Joel Bauer, SDA CSDA Board President year that marks the 50th Anniversary of the California Special Districts Association! I look forward to serving our members in a greater capacity as we continue to provide increased member benefits, legislative advocacy, and professional development. I began my career in special districts 22 years ago when I started with West Side Cemetery as a grounds keeper. It didn’t take long for me to move up the ladder to the District Foreman and then to District Manager for the past 12 years. I got involved with the California Association of Public Cemeteries early on in my career and have served on their Board of Directors for the past 12 years; I’m their immediate Past President. After becoming District Manager, I realized that our District needed more training
and learning opportunities than CAPC could offer, and we became members of CSDA in 2011. Soon after joining, I was appointed to the Board in 2014 and quickly moved through the ranks serving on several committees, the Executive Board, and now as the current President. The benefits for me personally and for my district have been second to none. I often wonder what the forefathers of CSDA would think of this organization today, with so many training and learning programs, several different types of conferences, and the professional team we have in place representing over 1,200 districts. On behalf of the CSDA Board and staff, we want you to know how much we appreciate hearing from our members. A very important member survey went out about what you would like to see happen in CSDA’s future. Please take a few minutes to complete that and let us know how best we can serve you! In March, we celebrated the first birthday of CSDA Communities, our website platform for members to further connect, share resources, continued on page 7
CSDA Board and Staff Officers
Staff
JOEL BAUER, SDA, PRESIDENT, West Side Cemetery District
NEIL MCCORMICK, Chief Executive Officer
JEFFREY HODGE, SDA, VICE PRESIDENT, Santa Ynez Community Services District
MEGAN HEMMING, Professional Development Director
ELAINE MAGNER, SECRETARY, Pleasant Valley Recreation & Park District
CATHRINE LEMAIRE, Member Services Director
RYAN CLAUSNITZER, SDA, TREASURER, Alameda County Mosquito Abatement District
KYLE PACKHAM, Advocacy & Public Affairs Director
GREG ORSINI, PAST PRESIDENT, McKinleyville Community Services District
TODD WINSLOW, Publications Director RICK WOOD, Finance & Administration Director
Members of the Board
ITZEL BECERRA, Professional Development Assistant
STANLEY CALDWELL, Mt. View Sanitary District
CRISTINA BECERRA, Member Services Representative
RALPH EMERSON, Garberville Sanitary District
EMILY CHA, Professional Development Coordinator
CHAD DAVISSON, SDA, Ironhouse Sanitary District
TAMARA DE LA ROSA, Public Affairs Specialist
VINCENT FERRANTE, Moss Landing Harbor District
MARCUS DETWILER, Legislative Assistant
PETER KAMPA, SDA, Saddle Creek Community Services District
RYLAN GERVASE, Legislative Representative
JO MACKENZIE, Vista Irrigation District
DILLON GIBBONS, Senior Legislative Representative
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
COLE KARR, Public Affairs Field Coordinator
FRED RYNESS, Burney Water District
STEVEN NASCIMENTO, Public Affairs Field Coordinator
ARLENE SCHAFER, Costa Mesa Sanitary District
CHRIS PALMER, Public Affairs Field Coordinator AMBER PHELEN, Executive Assistant
California Special Districts Association 1112 I Street, Suite 200, Sacramento, CA 95814 toll-free: 877.924.2732 • www.csda.net
© 2019. California Special Districts Association. Volume 14 • Issue 2
CASSANDRA STRAWN, Senior Member Services Specialist ANTHONY TANNEHILL, Legislative Representative DANE WADLÉ, Public Affairs Field Coordinator JAMES WILFONG, Senior Designer A proud California Special Districts Alliance partner
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PROFESSIONAL DEVELOPMENT
Start Your Summer Right This cutting-edge conference for general managers and other management staff in special districts includes: two nationally known keynote speakers, a legislative update, and 17 highlevel breakout session options to give you the information and skills you need to help you and your district excel. Breakout session options include: • Enhancing Special District Revenues and Current Developments in the Law of District Revenues • A Field Guide to Surviving a Catastrophe • Managing People and Projects for Leaders • A General Manager’s Guide to Bringing out the Best in their Boards, Commissions and Elected Officials • and…Leading Your District Through Pension Challenges: CalPERS Updates & Developments, from CalPERS CEO Marcie Frost
DAY 1 OPENING KEYNOTE
Speed Leading – How to become a better leader, faster! Troy Hazard, Entrepreneur Troy will explain why the speed of your personal evolution as a leader has a direct impact on the evolution of your district and those you lead. Armed with this information you will quickly become more focused, balanced, aware and effective. Learn how to: Become aware of your own leadership evolution; Lead in truth, not fear; implement the four key character traits of a true leader, from a true leader; hire, inspire, and emotionally engage staff in good, and in tough times; share and create a culture of conscious collaboration; manage personal growth with business growth; lead, with speed. DAY 2 KEYNOTE
Creating a “Yes, And” Culture of High-Level Performance & Engagement Galen Emanuele, International Keynote Speaker Galen’s dynamic session will profoundly impact the way you communicate, show up, and lead your team. Through simple, skill-building activities, Galen will teach you how to create a cohesive “Yes, And” culture to skyrocket team performance and engagement. You will laugh and learn, coming away with new, powerful tools to enhance your leadership abilities, self-awareness, emotional intelligence, and capacity to drive exceptional culture within your organization. See article on page 2o about Galen Emanuele!
Don’t miss your chance to attend June 23–25, 2019 in Newport Beach.
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California Special Districts • Mar-Apr 2019
PRESIDENT’S MESSAGE CONT.
CSDA’s 2019
GENERAL MANAGER LEA ERSHIP SUMMIT
and get questions answered. We celebrated the birthday by promoting increased engagement – thank you to those who participated! If you haven’t already, dive in and explore the CSDA Communities, an amazing member benefit. If you have ANY questions on how to utilize Communities, our Member Services team is ready to assist; they can be reached at 877.924.2732. The CSDA Advocacy & Public Affairs team have been hard at work tracking new bills and determining the legislative priorities for the year, focusing on bills that affect our CSDA member districts and impact the delivery of core local services the most. CSDA is showcasing their advocacy efforts through the Special Districts Legislative Days event held May 21-22 in Sacramento. This year, attendees will hear directly from California Legislative Analyst Grabriel Petek and California Director of Finance Keely Bosler regarding hot topics affecting government finances, local services, and infrastructure. CSDA continues to provide specialized professional development opportunities for board and staff of special districts. The General Manager Leadership Summit, a leadership conference for district general managers and management staff, is coming up June 23-25 in Newport Beach. Visit the CSDA website at csda.net to register and to view the 2019 Professional Development Catalog that provides all upcoming workshops, live webinars, ondemand webinars and other conferences in the year. Thank you for the privilege of being your Board President in this milestone 50th anniversary year. Serving our association that offers so much for the benefit of our membership is a task I eagerly accept. I look forward to meeting many more of you at our events this year!
Registration available at csda.net.
Volume 14 • Issue 2
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CSDA NEWS
NEW MEMBER BENEFIT
CSDA Surplus Marketplace
Let CSDA help transform your district’s surplus assets and inventory from a burden to an opportunity. CSDA has partnered with the online government surplus auction, GovDeals, to provide special districts and other government agencies with an easy-touse, transparent platform for buying and selling surplus items online. Visit www.csda.net/memberresources/surplus-marketplace to check out the auction items listed by special districts in California or expand your search to include listings from all government agencies across the USA.
GovDeals has a nationwide presence and thousands of items listed. CSDA members can browse through a wide selection of preowned vehicles, office furniture, tools and equipment, storage sheds, and much more. Want to bid on an item? Register for a free account as a Bidder and set up your “favorites” to receive notifications when the items you seek are posted. Got something to sell? List and sell your surplus items at no cost. Contact Jason Weber, CSDA’s GovDeals representative, to set up your Seller account. Email jweber@govdeals.com or call 310.600.3651.
2019 CSDA Award Nominations Now Open!
Nominations Deadline: July 17, 2019 CSDA presents various annual awards during the CSDA Annual Conference & Exhibitor Showcase including: Board Member of the Year, General Manager of the Year, Staff Member of the Year, Innovative Program/Project of the Year, Exceptional Public Outreach & Advocacy, CSDA Chapter of the Year, Ralph Heim Exceptional Outreach & Advocacy, and the William Hollingsworth Award of Excellence. See details at csda.net. For questions, contact Vanessa Gonzales at 877.924.2732 or at vanessag@csda.net.
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“O ur district us e d GovD eals an d wa s very happy w ith the resu lts . It w a s relatively p a in le s s and we actua lly realized mo re funds from the sale than we ha d anticipated .”
CSDA 2020-2022 Board of Directors Voting Coming Soon!
Voting for our upcoming election will be done through a web-based online voting system, allowing your district to cast your vote easily and securely. Electronic Ballots will be emailed to the main contact in your district on June 17, 2019, the first day of the election. All votes must be received through the system no later than 5:00 p.m. August 9, 2019.
California Special Districts • Mar-Apr 2019
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
Liebert Cassidy Whitmore www.lcwlegal.com
Umpqua Bank www.umpquabank.com
Special District Risk Management Authority www.sdrma.org BUSINESS AFFILIATE
GOLD LEVEL
Aleshire & Wynder www.awattorneys.com
CPS HR Consulting www.cpshr.us
Bid Fast and Last Auctions www.bidfastandlast.com
Five Star Bank www.fivestarbank.com
PARS www.pars.org SmartWatt Energy www.smartwatt.com
Burke, Williams & Sorensen www.bwslaw.com
Hanson Bridgett www.hansonbridgett.com
Streamline www.getstreamline.com
California CAD Solutions www.calcad.com
Kutak Rock, LLP www.kutakrock.com
Tyler Technologies www.tylertech.com
CalPERS Health Program www.calpers.ca.gov
Laserfiche www.laserfiche.com
Caselle www.caselle.com
Nossaman www.nossaman.com
Atkinson, Andelson, Loya, Ruud & Romo is a recognized leader in California special district and public entity law. With over 190 attorneys working in nine offices strategically positioned throughout the state, AALRR is able to provide a full suite of services and personalized expertise and attention to each and every client served. Their deep bench of attorneys represents water agencies, housing authorities, transit agencies, utility districts, joint powers authorities, and many other special districts throughout California. Thanks to our long track record of success, many of their client partnerships last for decades. Founded in 1979, AALRR’s mission is simple: provide all clients with comprehensive legal services to address each issue effectively, efficiently, and with integrity. They look forward to the opportunity to partner with you and your district. For more information about Atkinson, Andelson, Loya, Ruud & Romo, visit www.aalrr.com.
Volume 14 • Issue 2
DON’T MISS THE ATKINSON, ANDELSON, LOYA, RUUD & ROMO SESSION AT THE UPCOMING GENERAL MANAGER LEADERSHIP SUMMIT. The Post-Janus Tug-of-War: What’s Changed with Public Unions and Bargaining With its much-anticipated decision in Janus v. AFSCME issued in July 2018, the United States Supreme Court radically changed the landscape of labor relations in the public sector. As employees can no longer be compelled to pay union dues, both unions and the California legislature have taken aggressive steps designed to protect union membership. Join us for a discussion of the developing labor relations trends that face public employers in 2019 as they navigate their new obligations to both unions and individual employees in a post-Janus world.
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COMMUNITY CONNECTIONS
Plants and Insects and Trout, Oh My!
TR OU T IN TH E CL AS SR OO M PROGRAM IMPA
CT REPORT 2017-
Each student participa
2019
162
KIDS
ted in the Trout in the Classroom program and gained an appreciation of wildlife by caring for Rainbow Trout in their classroom for 6-8 weeks
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SCHOOL DISTRICTS
IERCD sponsored and supported five teachers from four different school districts and a private school institution within the District's service area
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Teachers select from a suite of stations ranging from water quality, trout release, wildlife, plant, aquatic insects, anatomy and dissectio n, and line casting that are adjusted to their students' needs and abilities
TROUT RELEASES
LEARNING STATI
ONS
5 Over the course of two years IERCD and its partners have engaged students in outdoor learning during release events
CONSERVING OUR
NATURAL RESOU RCES FOR TOMORROW'S GENER ATIONS
The Classroom Aquarium Education Program, known regionally as Trout in the Classroom, is regulated by California Department of Fish and Wildlife (CDFW). CDFW supplies the trout eggs to the classrooms and partners with sponsors to provide the necessary equipment and support for teachers.
Mr. Palmer held aquatic insects gathered from Lytle Creek and released a Rainbow Trout.
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CSDA member Inland Empire Resource Conservation District (IERCD) sponsors teachers from within their District boundaries to participate in this program. IERCD began its partnership with CDFW in 2016. There have been a total of four releases since March 2017. The goals of the Trout in the Classroom program are to introduce students to aquatic environments and to instill a sense of responsibility for natural habitats. California Special Districts • Mar-Apr 2019
Karen Culbert from Mount Vernon Elementary in San Bernardino and her second graders participated in the January 2019 egg delivery. She received training from CDFW and supplies and classroom presentations from IERCD. During the release event on February 25th, 2019 staff members from IERCD, California State University of San Bernardino, and CDFW led stations to educate the students on healthy habitats. The stations consisted of; water quality (Dr. Jennifer Alford from California State University of San Bernardino), wildlife (IERCD), plants (IERCD), aquatic entomology (IERCD), casting (CDFW), and trout release (IERCD). The Mount Vernon Elementary students, their teacher, and parent chaperones enjoyed the educational stations. Chris Palmer, Public Affairs Field Coordinator from CSDA, stopped by to observe IERCD in action during the release event. Mr. Palmer held
aquatic insects gathered from Lytle Creek and released a Rainbow Trout. It was a wonderful learning experience and a lot of fun! The hope is to continue the program and allow other teachers throughout IERCD’s large service area to produce more environmentally educated students with authentic experiences caring for wildlife. The IERCD is a public agency that provides preservation, restoration, education and outreach services to over 25 cities and unincorporated communities in San Bernardino and Riverside Counties. The District operates under the guiding principle that the quality of the environment determines the corresponding quality of life, and works accordingly to improve local habitat sustainability
for the benefit of all area dependent species. The Trout in the Classroom program is just one of the many events planned and/or participated in by District Board and staff, in an effort to spread the message of the importance of conservation of natural resources. If you would like to know more about IERCD or participate in any workshops or events please visit www.iercd.org or call 909.799.7407.
Representing California public agencies for over sixty years.
Greg Stepanicich Jim Markman Roxanne Diaz Ginetta Giovinco Whitney McDonald
Volume 14 • Issue 2
Construction
Labor & Employment
Special Districts
Eminent Domain
Litigation
Telecommunications
Energy
Public Agency Law
Transportation
Environmental
Public Finance
Waste Management
General Counsel
Real Estate
Water Law
888.479.4529 continued on page 12
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Questions Appear in CSDA Communities
YOU ASK, WE ANSWER
Q&A
Sick Leave Donation
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Lynda Kerney, Administrative Assistant Beaumont-Cherry Valley Water District BCVWD is considering establishing a sick leave donation program which would allow employees to share their accrued sick leave hours with other employees to cover a catastrophic illness. I would be interested to receive any policy your agency may have, and any comments you can offer on your program’s effectiveness, complications, use by employees, and administration best practices. Would you or would you not recommend offering such a program and why? Alison Costa, SPHR, SHRM-SCP, Sr. HR Analyst El Dorado Irrigation District El Dorado Irrigation District has the following policy regarding the donation of PTO. My experience is that District employees are very generous in donating their PTO hours to someone who qualifies for those donations. The employee receiving those donations must be on an FMLA qualifying personal or family leave and must have already exhausted all of their own available leave in order to request donation. That request for donations is made to Human Resources, and Human Resources sends out a notification to District staff that we will accept donations for a specified time period. Payroll does the calculations thereafter because the donation is at the DONOR’s hourly rate of pay. Any unused PTO that was donated is returned to the donor upon the return to duty of the employee who received the donations. It can be time consuming to do the calculations for payroll staff, but under the circumstances we are happy to accommodate. Cynthia Allen, SDA, Administrative Services Manager Vandenberg Village Community Services District VVCSD has had a catastrophic leave policy for more than 20 years and has refined it over the years to try to prevent abuse of the benefit. The employee’s first option is to “borrow” the same amount of time as they have on the books. This is used most frequently for one-time unexpected events. When an employee needs substantial time off for a long-term illness for themselves or a family member, other employees can donate up to 40 hours of vacation, sick leave, or comp time per year. Should the recipient of the donation terminate employment before using the donated time, then the donations return to the donors’ vacation, sick leave, or comp time pool. Jeanne Villa, Administrative Services Manager Novato Fire District Here at Novato Fire we have had a “Cat Leave Program” for over a decade. It’s been used several times, and very, very rarely has anyone ever complained about the use of it. It’s a last resort for an employee who has exhausted all other forms of leave. Once donated, hours cannot be returned to a donor. The balance remains in the account for the next user. The complication, such as it is, is that a donor’s hours are turned into a dollar value, and then recalculated into the employee salary rate/ hours who is accessing the account. So, for example, if a Chief donates 8 hours and his hourly rate is $75.00 per hour, his hours are worth more than an employee who donates 8 hours but only makes $30.00 per hour. When an employee requests hours from the “bank,” if they make less per hour than the donors, they benefit. So, we don’t do it on an hour for hour basis. It’s a time-consuming effort when the bank is being accessed, but really no one complains about helping out a coworker in need. CSDA Disclaimer: This section is not intended to be legal advice. Members should always seek legal counsel. The information contained here is for general reference purposes only. California Special Districts • Mar-Apr 2019
MOVERS AND SHAKERS
MOVERS& SHAKERS
Assemblymember Monique Limón, Port of Hueneme CEO & Port Director Kristin Decas, Senator Hannah-Beth Jackson
In celebration of Women’s History Month, State Senator Hannah-Beth Jackson and Assemblymember Monique Limón honored Port of Hueneme CEO & Port Director Kristin Decas, along with four other women, for their commitment to improving the lives of those in the community. “Representing a wide diversity of backgrounds and contributions, these Women of the Year all share a commitment to their communities and a passion for improving the lives of others,” Jackson said. “It is an honor to recognize the tremendous achievements of these remarkable leaders.”
After 47 years of service in the Parks and Recreation industry, Tarry Smith will retire in March. Currently the District Administrator of Carmichael Recreation and Park District, Mr. Smith previously served the City of Rancho Cucamonga and the City of Folsom. We wish Tarry an abundance of health and happiness as he moves into his next phase of life!
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.
Volume 14 • Issue 2
The Goleta Sanitary District was recognized as a certified green business on March 13, 2019 by the Green Business Program of Santa Barbara County. Established by the California Green Business Program, the process assesses energy, waste and recycling, pollution prevention, water conservation, and wastewater practices. A checklist of tools is used to evaluate business operations, determine sustainability measures already in place, and implement additional measures to earn certification. “We are extremely proud of what we do and how we are able to do it in an environmentally sensitive way,” said Steve Wagner, Goleta Sanitary District’s General Manager. “This certification demonstrates our ongoing commitment to sustainable business practices,” said George Emerson, President of the Goleta Sanitary District Board.
Soquel Creek Water District has proudly received a significant honor from the WateReuse Association: the Award of Excellence for Outreach and Education, in recognition of the District’s Pure Water Soquel Mobile Educational Trailer. This annual award recognizes significant success in advancing the public’s understanding and knowledge of recycled water, and is a prestigious honor illustrating the District’s ongoing efforts to provide the community with clear, understandable, and useful information about water reuse. 13
ASK THE EXPERTS
You are not alone
In addition to CSDA, there are many other organizations that have information, resources and training available to support preparedness, coordinate response and facilitate recovery. These resources include documents, on line and in person training. Links to a few key resources are listed at the bottom.
Build relationships now
Start with your local emergency management agency, either city or county. Become familiar with where and how your organization fits in an incident. Park and utility districts generally have a closer relationship to emergency management agencies, but every district plays a role. You may need resources, have resources or both. These relationships will also be key to sharing information before, during and after an event.
Preparing for Disasters By David Fukutomi, Program Director, Center for Homeland Defense and Security
Special districts occupy a unique place in California especially as it relates to disaster response and recovery. In an emergency, you will be faced with serving the public and coping with the impacts to your own organization. Your organization can do its part to become more resilient or improve your ability to “bounce back” after a disaster. I’ve listed some key thoughts and resources, focused on preparedness, to consider as you develop your own plans, training and procedures and to build a culture of preparedness into your organization.
Keep it simple
• Simple is better especially when it comes to training, developing emergency procedures or writing a plan. • It works best when you incorporate preparedness into daily routines and processes. • Make sure procedures (especially contracting) for an emergency are consistent with your normal business practices. • Many plans failed during the actual emergency because they were not well understood or too complicated for staff to initiate following an incident.
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Training & Information California Emergency Services Association (CESA) www.cesa.net FEMA and the Emergency Management Institute (EMI) www.fema.gov California Governor’s Office of Emergency Services (Cal OES) www.caloes.ca.gov California Specialized Training Institute (CSTI) www.caloes.ca.gov/cal-oes-divisions/californiaspecialized-training-institute International Association of Emergency Managers (IAEM) www.iaem.com/home.cfm Los Angeles Homeland Security Advisory Council (LA HSAC) www.hsacouncil.org Water Emergency Response Organization of Orange County (WeROC) www.mwdoc.com/your-water/emergencymanagement/
California Special Districts • Mar-Apr 2019
Impact to your workforce
Government agencies and special districts focus on aiding the public following an emergency, which is great. Often forgotten is the impact to employees and their families. No organization is immune to the impacts of disaster in their communities. Be sure to consider those impacts as you prepare.
A Can’t-miss Presentation at Special Districts Legislative Days on May 22, 2019
Plans and exercises
Don’t miss the May 22 Special Districts Legislative Days presentation, “State and Local Partnership on Disaster Prevention, Preparation, and Recovery” by Mark Ghilarducci, Director, Governor’s Office of Emergency Services!
It’s better to leverage what others have already developed. Talk to your peers and consult with local emergency managers about existing plans, planning efforts and exercises. Plans that incorporate common concepts with partner agencies will facilitate collaboration. There is safety in numbers when conducting exercises. You will find greater benefit by being part of a larger exercise than going at it alone. Many annual exercises already exist.
Preparedness is a journey. Taking steps now will benefit your organization and the public you serve. David Fukutomi is a former state and federal emergency management official - davidfukutomi@hotmail.com.
Volume 14 • Issue 2
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Celebrating 50 Years of Service: 1969-2019
May 21-22, 2019 SACRAMENTO CONVENTION CENTER
wow
See wh speakin o’s g lunch br @ the iefing!
California Special Districts Association Districts Stronger Together
SPECIAL DISTRICTS 2 D AY E V E N T: A D V O C A C Y & P O L I C Y D AY S
2007
Past Pieces OF THE
Gain the edge on policy changes impacting your agency and exchange ideas with California’s top decisionmakers at the 2019 Special Districts Legislative Days, an interactive and informative two-day legislative conference in our State’s Capitol.
@CSDADISTRICTS FACEBOOK.COM/CSDADISTRICTS #DISTRICTSADVOCATE
CSDA’s first Special Districts Legislative Days was in 2007. Prior to this, it was called Government Affairs Days and Lobby Day.
2019 marks California Special Districts Association’s 50th Anniversary! Throughout the year, CSDA is celebrating our history, our members and service.
Ralph Heim speaking at what was then called Government Affairs Day.
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California Special Districts magazine was honored to interview former CSDA Legislative Advocate Ralph Heim, who represented the California Special Districts Association from 1982 to 2008. During these nearly 30 years, he was instrumental in the development of the Advocacy and Public Affairs Department at CSDA and strengthened the voice of California’s special districts in the Capitol. For his many years of dedicated service, Ralph Heim was honored as a recipient of the prestigious CSDA William Hollingsworth Award.
California Special Districts • Mar-Apr 2019
Ralph Heim CSDA FORMER LEGISLATIVE ADVOCATE FROM 1982 – 2008
When did you first begin working with CSDA and how did that come about?
My first official day with the firm representing CSDA was January 1, 1982. In the spring of 1981, a friend of mine shared that Bob Beckus was going to retire and that the senior partner was looking for someone who might be interested in joining the firm. Long story short, I was their choice. Bob Beckus taught me much about the inner workings of special districts. I was able to communicate with him off and on as issues arose.
You are probably one of the most influential people of CSDA these past 30 years. What is your perspective on CSDA and it reaching this milestone?
I had the unique opportunity to watch CSDA grow into an effective advocate for special districts. We had board members who at least every other board meeting would say to staff, “We want to be just like the cities and counties. Why can’t we be more like the cities and counties?” To be fair, the budgetary process wasn’t there. We had to grow the membership to be able to do those types of things. What happened was members who were serving on the board and committees, Catherine Smith and after she left, Neil McCormick, started to focus on programmatic issues designed to educate members. I don’t think there is any question of that growth if you look at the benefits that CSDA now provides to its members – the magazine, the chapters that have been formed, the various seminars, and all the other benefits. There are so many
Volume 14 ••Issue Issue1 2
publications and programs that have been developed. Some things had to wait because of the costs of developing the program and staff. There was a commitment made to someday have CSDA have their own in-house lobbyist. I think the most important contributing factor was the board and committee members at the time of this transition. They were motivated and excited about the things we could do.
Can you share an example of one of your fondest memories from your time working with CSDA and its members?
Receiving the William Hollingsworth Award at the Annual Conference was clearly the all-time greatest moment of my time with CSDA. For me, nothing will ever be better than that because of who Bill Hollingsworth was and how much I appreciated him. There was another moment that probably taught me more about myself and CSDA. Betty Harrison Smith from Shasta County was the president of CSDA that year. I used to travel around the state and visit with the various chapters to bring them the latest goings-on in Sacramento. She asked that I come up to Weaverville and speak to the chapter in Shasta County. As I pulled up to the meeting site at the American Legion Hall, I saw there were
just six or seven cars in the lot. The front of the facility was a dining room that was open every night for dinner – there were probably 20 people having dinner. What struck me was that this was connected to our meeting space and there was no door to block it off. There were eight people from special districts there in attendance. I learned that getting around Shasta County was not the easiest thing to do, so these eight people made a significant effort to be there. After our scheduled time, President Smith got up and thanked me. I actually got more applause from the diners who started moving their tables closer and were hanging on every word. Each of the eight people who were there came up and in the most heartfelt way, almost embarrassingly, thanked me for doing this. They couldn’t afford to come to Sacramento or didn’t have the technology that allowed them to access all the resources CSDA has. I had a good three hour drive back to Sacramento thinking about that. It slammed me to a point where I realized this is what it’s all about. What I do is not about me; it’s about providing a service to people. It’s a moment that I still remember. There were many fond moments, but this one really touched my heart. continued on page 18
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Celebrating 50 Years of Service: 1969-2019
During your time as CSDA’s Legislative Advocate, what do you consider to be some of the biggest victories? What were some of the biggest lessons learned?
Most Influential People
William Hollingsworth, 1993 president of CSDA Board of Directors.
Who Was
William Hollingsworth? William Hollingsworth was active in special districts since the 1960’s and was one of the original members of CSDA. For many years, CSDA was “run” out of Hollingsworth’s home until it was solvent enough to hire its first Executive Director. That Executive Director was David Nagler, and upon presenting Mr. Hollingsworth with the CSDA Champion of the Year award and first ever CSDA Lifetime Achievement Award in 1993, Nagler said, “If it wasn’t for this man, CSDA would never be where it is today.”
Ralph Heim, along with CSDA’s former Executive Director Catherine Smith, received the William Hollingsworth Award of Excellence in 2004 for their efforts in the LOCAL Coalition and Proposition 1A.
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In my first couple of years as CSDA’s Legislative Advocate, there were bills introduced that would have granted LAFCO broad new authority to reorganize, consolidate, and change management. There was a hearing process and a protest requirement that was significantly higher than the current requirement. The first couple years we were able to fend off those bills, and those were certainly victories. I learned over time that sometimes victories lead to other problems. In 1986, the California Association of Local Agency Formation Commissions (CALAFCO) approached newly elected Assembly Member Mike Gotch from San Diego, recognized as knowledgeable about local government, including special districts, to sponsor legislation CSDA and other special districts associations would certainly oppose. Gotch held a meeting with the CALAFCO lobbyist, the CALAFCO CEO, and me to share that he would only carry the CALAFCO bill if LAFCO allowed special districts to be on LAFCO. After some difficult discussions over a contracted period, CSDA, Association of California Water Agencies (ACWA), and several other special district organizations reached a good compromise including the ability for special districts in each county to create a special districts committee to vote whether they wanted to join LAFCO. We got the bill through, the governor signed it, and we thought there would be a rush of districts passing the necessary resolutions; but what some discovered quickly that LAFCOs’ budgets were primarily funded by the cities and counties, so now special districts would also share in the LAFCO budget. Some felt they would be out-voted by the cities and the counties, so they didn’t apply. LAFCO was always a major issue, but we did have early victories.
How do you think the perspective of CSDA has changed in the State Capitol over these past 50 years?
Legislators’ reaction and impression of special districts from then to now is significantly better. Legislators used to think there were too many special districts, and there were bills that attempted to reduce them. The perspective of CSDA and special districts has changed primarily because of the better education that has taken place. Now when new legislators come, there are packets and meetings provided to educate them. Special districts are being proactive and meeting with candidates running and building relationships with their legislators.
California Special Districts • Mar-Apr 2019
INTERVIEW
Who do you feel were the most influential people of CSDA and why?
There were so many who were instrumental in the growth and the success of CSDA, but two who had particular importance to me. The first is obvious, William Hollingsworth from Olivenhain Water District in the San Diego area. Bill Hollingsworth got a call from a San Diego senator who said there’s a legislator who’s going to introduce a bill to dissolve all the special districts in the State. A small group of special district managers, including Bill Hollingsworth and Bob Beckus met in San Francisco to develop how they were going to go about killing the bill. They agreed there should be a name for the group and Bill Hollingsworth said, “Let’s keep it what it is, the California Special Districts Association.” For 20 years, the soft-spoken gentleman that Bill Hollingsworth was, was one of the most profound teachers of governance. How to govern in the world of special districts and how to treat people -I learned so much from him. The second person is Harry Ehrlich. I felt CSDA was the only statewide association that didn’t have a full-time, inhouse lobbyist. I had suggested that at the board retreats, but it was always a matter of “W i t h out a d oubt, someday but not now. t h e i mp a c t t h a t One of the individuals CSDA h a s h a d who stepped up on me h a s be e n on this issue was bec a use of t h e Harry Ehrlich from i nc r ed i bl e p e ople Olivenhain Water t h a t I’v e me t w ho District. Ehrlich took unsel fi sh l y ga ve the idea of having an so muc h of t h e ir in-house government
t i me .”
First Legislator of the Year Award
affairs program to the point where it happened. I think there were others who felt equally its importance, but had Ehrlich not been as passionate about it, it may have taken longer to come into being. There were so many influential people, but if I had to choose two it’s William Hollingsworth and Harry Ehrlich.
What does CSDA mean to you?
To me, CSDA is family. It will always have a warm place in my heart. Lobbying is a business of relationships, both with legislators and staff, but also with clients. Without a doubt, the impact that CSDA has had on me has been because of the incredible people that I’ve met who unselfishly gave so much of their time. I got to watch an organization that could have been stuck in the 1970s, but the membership chose not to let that happen. If anybody should be proud of the 50th anniversary milestone, it’s those who made this happen. I’m just grateful that I had the opportunity to come along for the ride.
What advice do you have for CSDA and its members as they look forward to the next 50 years?
You never want to stop looking back and learning from the past to make sure that you better understand the future. You cannot stop growing and must do it smart. Never take your eye off what you’re in business to do - and that’s to serve your membership. Organizations that forget their core responsibility tend to not survive. CSDA has the kind of leadership that is not going to let that happen. People want government close to them. I think special districts are going to be around for a very long time. To view the full video interview with Ralph Heim, go to csda.net and youtube.com/user/CSDAWeb.
CSDA Anniversary: Celebrating 50 Years of Service Throughout 2019! We will be celebrating CSDA’s history, accomplishments, and members through 2019. If you have CSDA stories, photos, or historical documents, please send to Communications Specialist Vanessa Celia Ruiz Gonzales at vanessag@csda.net.
and Sherry Sterrett.
CSDA’s first Legislator of the Year Award was given to Assembly Member Katcho Achadjian in 2014. Volume 14 ••Issue Issue1 2
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FEATURE
Creating a
“Yes, and” Culture of HighLevel Performance & Engagement
Galen’s GALEN EMANUELE, PRESIDENT, SHIFT YES KEYNOTE SPEAKER AT THE 2019 CSDA GENERAL MANAGER LEADERSHIP SUMMIT Sponsored by Special District Leadership Foundation (SDLF) SHIFTYES.COM
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dynamic session will profoundly impact the way you communicate, show up, and lead your team. Through simple, skillbuilding activities, Galen will teach you how to create a cohesive “Yes, And” culture to skyrocket team performance and engagement. You will laugh and learn, coming away with new, powerful tools to enhance your leadership abilities, self-awareness, emotional intelligence, and capacity to drive exceptional culture within your organization.
Culture: It’s Not Just for Breakfast Anymore
As a speaker and expert on leadership and teams, I spend my days working with organizations, getting to see firsthand the dynamics and challenges associated with running a business. And in my experience, no matter the industry, business model, or size, from retail to manufacturing to hospitals; there is one commonality that determines success over struggle: organizations that prioritize culture are winning. For the most part, companies spend their time and energy focused on developing and executing business strategy. For many, company culture is just something they hope to get right, often waiting to address it until it’s broken and the consequences become too costly to keep ignoring. Business visionary and author, Peter Drucker, famously said, “Culture eats strategy for breakfast.” This quote couldn’t be more on the money. California Special Districts • Mar-Apr 2019
2019 GENERAL MANAGER LEADERSHIP SUMMIT KEYNIOTE SPEAKER
The Case for Culture
The most critical mistake an organization can make is to overlook the importance of culture and simply leave it up to chance. Culture is less visible and tangible on the surface than metrics like sales numbers, which makes it easy to slip down the ladder of priority. But make no mistake: the negative impact of poor company culture is destructive to every aspect of an organization and its bottom line. Employee engagement, job performance, turnover, quality control, customer experience and loyalty, just to name a few. I’m not just speaking from the heart, there’s unlimited data to support this reality. According to a Gallup Report on the State of the American Workplace, companies that made a concerted effort to focus on culture and employee engagement outperformed companies that didn’t by 10% in customer ratings, 22% in profitability and 21% in productivity. Those companies also saw a 25% decrease in turnover and shrinkage and saw almost a 50% decrease in safety incidents throughout the year. If that’s not enough to convince you, that same report shared that companies who dedicated time and resources to building and cultivating a positive company culture resulting in highly engaged employees outperformed their peers by 147% in earnings per share. Similarly, the Workplace Research Foundation proclaims that increasing investment in culture and engagement by just 10% can increase your profits by $2,400 per employee on an annual basis. Flat out, culture is good for business. And companies that still need convincing are being left in the dust.
Where Companies Fail
The fact is that even though companies may be aware of this reality, only about 25% of organizations today Volume 14 • Issue 2
have an employee engagement and culture strategy in place, and toxic work culture is rampant. We have all either experienced it, left a job because of it, or know someone who’s life is currently miserable due to it. While things like great compensation go a long way to move the needle and improve workplace environment, it’s not enough to just throw money at people and stick a ping pong table in the break room. The hard truth is that you can’t pay someone enough to stay at a job they hate. When it comes down to it, culture matters more. So yes, it’s important. Yes, you’re leaving money on the table if you don’t address it. And yes, your employees will leave if they don’t feel engaged (and you’ll be stuck with the tab -- which is typically 100 - 300% the cost of the employee’s annual base salary, according to Gallup). So the question is, how can you actually create and effectively drive culture in an organization? There is a way. Just know this with absolute certainty: hanging a poster on the wall expressing your company’s core values does nothing to actually impact culture. As you may have heard, the values displayed in the lobby of Enron, the company bankrupted by fraud and whose leaders went to jail, were Integrity, Communication, Respect, and Excellence. So there’s that.
The actual answer here is simple and indisputable: You must treat culture as a strategic priority. You must create a plan. No company in the world leaves anything critical to the business up to chance. When faced with having to successfully market a brand, we develop a sophisticated marketing strategy. We define an executable plan based on desired outcomes and then put that plan into action. We don’t rely on hope for great sales results, we make sales a strategic priority. Same with finance, operations, IT, customer service, etc. For the love of all that’s good in the world, do not risk banking your company culture on hope. We have to approach culture the same we approach any goal where we want to achieve success: define it, create an action plan against it, and execute it. To create and drive an awesome culture you have to ask the right questions and get clear on the answers. Here’s a six step guide to help build a strategic culture plan for your company. The questions included are by no means comprehensive, but they’re a jumping off point to spark conversation and define your culture plan. 1. What’s your driving story? What’s your company story, why do you do what you do? When people show continued on page 24
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FEATURE
up, what are they contributing to? If everyone in the organization is holding an oar, this is why they row and what they’re rowing towards. 2. Articulate your values in practice. Define the values that drive your behavior as a company. Use action words. If you say integrity, get specific and clear about what integrity looks like in action. These are your ground rules to how you behave, not merely what you believe. 3. Employee experience. Outline the experience of your people. What do want it to feel like to be part of the team? What will employees tell their friends and family about how it feels to work there? 4. Traditions. Identify what systems and traditions you’ll embrace to integrate and support this plan. This can include hiring practices, coaching and evals, training,
“P rioritizing culture is n ot a nice to-have, it’s a mu st have. I t is y o ur competitive advantage an d you r w a y forward as a business. ” company events, reward programs, how you start meetings, etc. 5. Success & accountability. Define your commitment as a team. What is expected of leaders and employees, how do you hold each other accountable? How do you measure your success, and how often? Most importantly, do you mean it: is anyone exempt from showing up this way? 6. Capture the beating heart. Now that you’ve outlined it, define the essence of your culture in one sentence or idea. Brand it. What’s the heart of it? How would you describe your culture to someone outside of the organization?
What Next?
Now that you’ve created your strategic culture plan, share it with your team. Talk to them about the experience of creating this plan, ask for feedback, and share the next steps as a result. There’s no better way to make progress, be accountable, and get buyin than involving them in this work. Prioritizing culture is not a nice-tohave, it’s a must have. It is your competitive advantage and your way forward as a business. Ultimately, your focus on culture as a strategic priority will set you on a path to success, and those efforts will be felt throughout your organization. Your employees will be happier, your customers will be happier, your bottom line will be happier.
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.
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California Special Districts • Mar-Apr 2019
Our Experts Can Help You
NAIL DOWN YOUR AGENCY’S FINANCING NEEDS www.csdafinance.net
Volume 14 • Issue 2
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A proud California Special Districts Alliance partner.
INTERVIEW
“When Govern o r N ewsom an d I met to bu ild the budget togethe r, climate chan ge and fire protection we re priorities. ”
California Special Districts interviewed the California Department of Finance Director Keely Bosler, one of CSDA’s 2019 Special Districts Legislative Days lunch briefing speakers May 21 in Sacramento! Don’t miss hearing her speak on hot topics affecting government finances, local services, and infrastructure!
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California Special Districts • Mar-Apr 2019
KEELY BOSLER, DIRECTOR, CALIFORNIA DEPARTMENT OF FINANCE
Given that you are somewhat new to your current position, what changes have you made, or do you plan to make at the Department of Finance?
Having worked as both Governor Jerry Brown’s cabinet secretary, as well as his chief deputy director at Finance, I’m very familiar with the department and its critical role in state government. Making sure we have a strong group of talented managers is an important priority of mine. Even with a new administration taking office this year, our charge remains the same as the Governor’s chief fiscal policy advisor – to promote responsible resource allocation through the state’s financial plan, and to work to continually strengthen the financial integrity of California.
What should special districts know about budget funding for local government, such as emergency services such as fire protection or budget funding for climate change adaptation?
When Governor Newsom and I met to build this year’s budget, climate change and fire protection high on the priority list. The first thing we made sure was there was $25 million in the budget built in for ongoing money that special districts can call upon when there are natural disasters and threats to their communities. There was a significant amount of multi-year funding
Learn More at Special Districts Legislative Days held in Sacramento Department of Finance Director Keely Bosler and California Legislative Analyst Gabriel Petek will speak during lunch at the 2019 Special Districts Legislative Days on May 21!
continued on page 26
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Volume 14 • Issue 2
CSDA Member
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INTERVIEW
that was first approved by Governor Jerry Brown that Governor Newsom wants to continue, and a significant portion of this is for fire protection. After watching the devastation of the City of Paradise, there was a one-time funding for emergency preparedness campaign implemented. Emergency preparation starts in our own homes on own streets. Local governments are a huge part of making sure our communities are prepared and seeking safety during events.
Given your position as chair of the Commission on State Mandates, and your prior experience as the budget committee consultant, would you be in favor of eliminating persistently suspended mandates? I have worked on state mandates for many parts of my career, and each one has its own story and own complexities. There have been proposals in the past to eliminate persistently suspended mandates – sometimes these have been successful and sometimes not. While there’s no such proposal this year, we’re always looking to reduce complexity to the finance structure and general orientation. Many of these mandates have a complex history associated with them, but I am happy to hear them and am open to reviewing them.
Are there any state budget issues that you think special districts should be aware of?
While we’re currently in good fiscal condition, I believe it’s important for everyone in the State to understand the risks and pressures that are associated with the state budget – many of which, unfortunately, we cannot control. Right now, we’re coming up on ten years into the current period of economic expansion -- the biggest in recent U.S. history. And while we can’t pinpoint exactly when an economic downturn 26
“I k n o w ho w q uick l y our f o rt un es ca n t urn – we est im a t e t ha t if a m o d era t e recessio n were t o o ccur, it wou ld l ik ely result in a rev en ue d ro p o f $ 7 0 billio n o ver a t hreeyear perio d. ”
will occur, we know that one lies ahead. There is also unsettling news about international trade, and there is always the issue of volatility associated with the stock market – and how that affects capital gains and our personal income tax. Having worked on the budget for its many years, I know how quickly our fortunes can turn – we estimate that if a moderate recession were to occur, it would likely result in a revenue drop of $70 billion over a three-year period. That’s why the Governor has focused on what we refer to as “budget resiliency” – including payments to boost the state’s budget reserves, paying off long-standing debts, and reducing the state’s long-term pension liabilities – so that we’re operating from a secure fiscal base. As he said when he introduced his budget in January, maintaining a balanced budget and building budget resiliency is a predicate for increasing the state’s investments in key program areas.
What kind of funding is available for special districts for affordable housing, community services and homelessness issues? Generally, cities and counties are more involved with housing and these
types of community services. To the extent that special districts are involved, we want to know more about what you all are doing. We have a significant amount set aside for additional housing and money to help with obtaining permits and housing. This includes removing barriers to getting the units started, such as helping the developers to actually get it built. There is additional money for the state loan program that will match up to the federal program to help maximize the projects. There are also significant amounts committed to the mixed income loan program and the state housing tax credit program, which are important tools for building housing. We have proposed to remove the 55% voter approval for those districts to issue debt. We are also looking at Opportunity Zones established in the federal tax changes in late 2017, and ways in which we can conform laws in a way that can encourage more affordable housing and green technology investment. We hope there will be some innovative use of those opportunities and enhanced infrastructure financing for districts as well. The bottom line is that we want to hear more from you -- what kinds of things specials districts are doing in these areas, and ways in which the state can provide appropriate support.
Is there anything else you’d like to share with special district board members and staff?
I’m very much looking forward to speaking with the members in May. All of us are in government, whether it be at the city, county, special district, or state level. We appreciate how important the services provided are and how hard work you all work to be good stewards of taxpayer dollars. I have a deep appreciation for all the folks who really make the wheels turn and keep your own districts on strong fiscal foundations. There are significant pressures that each of our jurisdictions face and I appreciate the service and hard work of special districts in supporting a well-functioning government. California Special Districts • Mar-Apr 2019
IN BRIEF
DISTRICT TRANSPARENCY CERTIFICATE OF EXCELLENCE
SHOW YOUR DISTRICT’S COMMITMENT TO BEING OPEN AND ACCESSIBLE. SPECIAL DISTRICT LEADERSHIP FOUNDATION
The District Transparency Certificate of Excellence was created to promote transparency in the operations and governance of special districts. There are no fees for this certificate and districts will be recognized for two full years. Earning the certificate is a tangible acknowledgement of transparency efforts. Demonstrate to your constituents and other stakeholders your district’s commitment to being open and accessible to them. 1112 I Street, Suite 200, Sacramento, CA 95814 Volume 14 • Issue 2
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t: 916.231.2909
•
www.sdlf.org 27
SOLUTIONS AND INNOVATIONS
Indian Wells Valley Water District Groundwater Measurement Study By Don Zdeba, General Manger, Indian Wells Valley Water District
Indian Wells Valley, located in the Upper Mojave Desert, is looking to the sky to help gain a better understanding of the groundwater below. Due to water levels in chronic decline for years, the Indian Wells Valley groundwater basin has been classified by the State as a high priority basin in critical overdraft. Groundwater pumping within the basin currently exceeds natural recharge by four times. Well levels throughout the basin have seen a decline on average of about one foot each year for decades. To comply with the 2014 Sustainable Groundwater Management Act, the local Groundwater Sustainability Agency is tasked with submitting a Groundwater Sustainability Plan (GSP) to the Department of Water Resources by January 2020. Indian Wells Valley is not unique in receiving this designation as twenty other basins within the state are similarly classified. Following the recent drought California experienced during water years 2012 through 2016, the State sought collaboration with others that have experienced issues with groundwater supplies to learn from their experience. Surprisingly, Denmark turned out to be one of those contacts. Despite being surrounded by seas, Denmark is 28
100% dependent on their groundwater resources. Denmark’s groundwater issues surfaced in the 1990’s and resulted in significant changes, not only in how they view their groundwater resources, but how they view their environment in general. Denmark is largely agricultural, accounting for about 62% of land use, and the lack of oversight over a long period of time resulted in pesticides and high nitrate values showing up in over 25% of the wells. The issue was so prominent, the government undertook an extensive national groundwater mapping initiative from 1999 until 2015. As the English proverb states, “Necessity is the mother of invention.” Research conducted by Aarhus University in the Danish city of Aarhus resulted in development of the SkyTEM airborne geophysical system. Suspended from a helicopter, the system collects and delivers accurate and detailed maps of the earth’s subsurface quickly and economically. The system can identify, map and characterize – in 3-D images – subtle variations in electrical conductivity and magnetization from the near surface to depths of up to 1,500 feet over an area one-third the size of a football field at any given time. The technology has been used to map groundwater basins and California Special Districts • Mar-Apr 2019
“putting together a plan to bring the basin within a condition of sustainability within 20 years”
mineral resources throughout the world. In September 2017, a Memorandum of Understanding between the State of California and the Kingdom of Denmark was signed for the purpose of allowing collaboration on water policy and solutions. As a result of this collaboration, a project developed by Stanford University received financial support to move forward. The project, referred to as the Stanford Groundwater Architecture Project (GAP), involves aerial geophysical surveys using SkyTEM technology over three California basins: Butte County, San Luis Obispo County, and the Indian Wells Valley. The $2.1 million project is being funded jointly by the Danish Government, the California Department of Water Resources, the State Water Resources Control Board, and the three local basins. Local financial support for the aerial survey over the Indian Wells Valley was provided by Coso Operating Company, Mojave Pistachios, Meadowbrook Dairy, and Indian Wells Valley Water District. The SkyTEM survey of the Indian Wells Valley was conducted in October 2017. Indian Wells Valley is home to the Naval Air Weapons Station at China Lake, covering more than 1,100,000 acres, an area larger than the state of Rhode Island. Local Navy was supportive of the aerial survey, however the nature of business conducted at China Lake; armaments research, development, acquisition, testing and Volume 14 • Issue 2
evaluation, limited access to airspace over a large portion of the base. Deliverables from the survey are the data acquired, development of a data management system, and a revised hydrogeological conceptual model of the basin. In addition to providing insight into potential water bearing strata and structural features of the basin, the data can provide an indication of water quality in terms of total dissolved solids (TDS), or salinity. TDS is of particular interest to the Indian Wells Valley. Indian Wells Valley Water District is the recipient of a $1.084M Proposition 1 grant from the Department of Water Resources to conduct a brackish groundwater study to determine the feasibility of treating local brackish water to supplement groundwater resources. In addition to Indian Wells Valley Water District, contributors to the local match for the grant include Coso Operating Company, Searles Valley Minerals, and Mojave Pistachios. This study is unique in the sense that it would feature an inland desalination facility with two potential customers for the brine stream resulting from treatment thereby eliminating the additional cost associated with disposal of the brine stream. The brackish groundwater feasibility study is one of several projects that will comprise the GSP for the Indian Wells Valley. Given the task of putting together a plan to bring the basin within a condition of sustainability within 20 years, Indian Wells Valley is fortunate to be receiving the benefits of being included in the Stanford GAP. The overall goal of the Stanford GAP is to demonstrate the value of the SkyTEM aerial geophysical technology in gaining a better understanding of the groundwater resources in California. By successfully mapping a coastal basin, an inland basin, and a desert basin, it is hoped this technology could eventually be used to map the entire state.
Liebert Cassidy Whitmore
Supporting California Special Districts Since 1980.
Employment Law Litigation Labor Relations Negotiations Investigations Business & Construction Retirement Wage & Hour Preventative Training www.LCWLEGAL.com 29
LEGAL BRIEF
CITY TREES AND URBAN FORESTS:
Understanding Inverse Condemnation Liability By Robert C. Ceccon, Richards, Watson & Gershon
On November 30, 2011, a severe windstorm struck the City of Pasadena and the surrounding areas. Wind gusts in Pasadena peaked at 101 mph – which is double hurricane force. The 2011 windstorm destroyed more than 2,200 of the 57,000 trees in Pasadena’s urban forest.
Some of the City-owned trees that fell struck houses. One law firm representing five insurers filed lawsuits against Pasadena seeking approximately $2,000,000 in damages, plus attorney’s fees. The Plaintiff insurance companies had paid that money to their insureds for damage caused by falling trees. The insurers then sued Pasadena to recover that money. The insurers claimed that they were entitled to recover under the doctrine of “inverse condemnation.” What is inverse condemnation? Article 1, Section 19 of the California Constitution allows a property owner 30
to recover “just compensation” from public entities and utility companies when private property is damaged for public use. Thus, a public entity generally is strictly liable for any damage to private property caused by a “work of public improvement” as that improvement was deliberately designed and constructed. Typically, works of public improvement are things like storm drains, sewers, water mains, power lines, and other brick and mortar infrastructure. As an example, there have been a number of cases recently filed against utilities seeking damages caused by wildfires. Those cases could give rise to inverse condemnation liability because power lines are works of public improvement. Plaintiffs in those cases usually argue that some design feature, such as the spacing of the power lines, caused sparks which caused a fire. Thus, they allege that the “deliberate design and construction” of the power lines caused the fire. For many decades, plaintiffs have sued public entities for damage caused by falling trees based on a theory of dangerous condition of public property. That remedy is very different from inverse condemnation for a few reasons. First, California Special Districts • Mar-Apr 2019
a plaintiff suing in inverse condemnation has three years from the date of injury to sue, and does not have to present a claim. Second, public entities in inverse condemnation cases cannot assert defenses under the Government Claims Act, like trivial defect and design immunity. Third, if a plaintiff prevails in an inverse condemnation case, it can recover attorney’s fees. Until 2017, no California appellate court decided whether a tree in a City’s urban forest was a “work of public improvement” that could give rise to inverse condemnation liability. However, in 2017, in Mercury Casualty Company v. City of Pasadena, 14 Cal.App.5th 917 (2017) (“Mercury Casualty”), the California Court of Appeal decided whether a tree was a “work of public improvement” for purposes of inverse condemnation liability. Mercury Casualty was the first California appellate decision to examine that question in detail. In Mercury Casualty, the Court considered a trial court ruling which held that Pasadena was liable for damage that a City-owned tree caused when it fell during the 2011 windstorm. The tree was planted around 1950, and there was no record of who planted it. The trial judge held that Pasadena was liable for damage simply because its tree was close enough to strike the adjacent house, and that the City was liable regardless of the reason it fell. The trial court also found that Pasadena’s Ordinance creating an urban forest was a “design” that satisfied the inverse condemnation requirement that damage be caused by a work of public improvement “as deliberately designed and constructed.” In essence, the trial court found that Pasadena’s urban forest was one large work of public improvement, and that (presumably) every tree in that forest could give rise to an inverse condemnation claim. Thus, according to the trial court, if a branch fell from one of the approximately 60,000 trees in its urban forest, the City would be liable regardless of the cause. The trial court’s ruling was troubling. It meant that the City was liable in inverse condemnation for all damage caused by every one of its trees that fell in the 2011 windstorm. Therefore, the City appealed. In Mercury Casualty, the Court was presented with novel questions regarding the scope of inverse condemnation liability. These questions included: Whether a city tree in a public right of way is a work of public improvement even though there was no record of who planted it; and Whether, in analyzing causation, a regulatory ordinance creating an urban forest is a “design of a public project.” The Court in Mercury Casualty, answered these questions in a manner favorable to public entities. It found: In order for a tree to be a work of public improvement, it must be “deliberately planted by or at the direction of the government entity as part of a planned project or design Volume 14 • Issue 2
serving a public purpose, such as to enhance the appearance of a public road.”1 Pasadena’s ordinance creating an urban forest “does not constitute a design for a public project or improvement, nor does it convert [the tree that fell] into a work of public improvement, that subjects the City to inverse condemnation liability.”2 What does this decision mean for public entities? Most importantly, they do not have to worry that ordinances establishing urban forests result in inverse condemnation liability. However, if a tree is planted as part of a road improvement project it could possibly be a “work of public improvement” depending on the facts. Yet, if a tree falls, it will be difficult for a plaintiff to establish liability in inverse condemnation because a plaintiff would have to prove a causal link between the design and the tree falling. That is, something about the design of the road improvement project would have to cause the tree to fall. The fact that a tree fell due to an unprecedented windstorm would usually not give rise to inverse condemnation liability. 1
Mercury Casualty, supra, 15 Cal.App.5th at p. 928.
2
Mercury Casualty, supra, 15 Cal.App.5th at p. 930.
31
MANAGERS CORNER
SEVEN STEPS TO SUCCESS 1. DEVELOP A PROCESS: WHO, WHERE AND HOW
SETTING GOALS AND PRIORITIES IS NOT ONLY NECESSARY, BUT CAN BE LIVELY, INTERESTING, AND PRODUCTIVE By Martin Rauch, Associate Consultant, Rauch Communication Consutants Inc. Everybody is busy! The pressure from day-to-day demands is endless and will never stop distracting us from the big picture, strategic challenges confronting our Districts. In the face of this, it is critical for every board / manager team to step back, look at the big picture and come to a shared understanding about challenges, priorities, and where the District is going. THE NAME DOESN’T MATTER
Whether, you call it Setting Direction, Goal Setting, Strategic Planning, or anything else, you owe it to your District and public to systematically identify and move your District forward from its current situation towards its desired future. GOOD FOR THE BOARD, STAFF AND PUBLIC
From the board’s perspective, a Big Picture Planning Process is necessary to guide the District with clear direction. This is the heart of what effective governance is all about. From the manager and staff perspective, knowing where the board wants the District to go is key to setting work priorities, helps clarify the expectations you are being judged against, where to focus resources, how to set up timelines, and more. From the public perspectives, such a process helps people understand and have confidence in how the District is preparing to serve them most effectively over the long run. 32
The single biggest key to a successful Big Picture Planning Process is to set aside ample time for the board of directors and management team to actively share their ideas, perspectives, questions and concerns, and to hear each other. This typically requires a workshop format lasting a half-or full day or more. It is helpful to have a trained facilitator conduct the process. This permits the management team and board to participate fully. Incorporating additional staff, local citizens, and other stakeholders is very helpful but should be part of a separate process–not blended with the board workshop(s). 2. REAFFIRM OF UPDATE YOUR MISSION, VISION AND VALUES
Mission, vision and value statements can be powerful and meaningful guides for Districts. Instead, they are usually predictable, sound as if they were written by a computer, and pack no punch. Every good mission statement answers four questions: 1. Whom do we serve? 2. What are the opportunities or needs that we exist to address? 3. What are we doing to address these needs? 4. What constitutes excellence 3. DEVELOP A SHARED UNDERSTANDING OF CHALLENGES AND OPPORTUNITIES
In the same way that winning makes everything better for a sports team, coming to a common understanding of the challenges facing a District and then developing a shared plan to resolve issues and move forward builds the board / management team. California Special Districts • Mar-Apr 2019
4. DEVELOP GOALS AND OBJECTIVES TO RESOLVE DISTRICT CHALLENGES AND ACHIEVE THE MISSION
Goals are intentions that are directed at meeting the mission of the District. They describe broad areas of management, operations and planning that need to be addressed to ensure optimum progress. Goals are not connected to timelines. Objectives are more specific directions that expand upon and refine the goals. There may be multiple objectives for each goal. There are many ways to develop goals and objectives. However, it is critical to engage the entire board and management team and have a real shared consensus. One way to do this is to ask a series of questions about key issues and obtain each participant’s response. For example: • Looking into the future, what are the main challenges to overcome to meet the District’s mission? • What are the few most important challenges to resolve if we are to improve this District? The meeting facilitator should summarize each response on easel boards and then group them into strategic issue areas such as finance, operations, personnel, etc. These strategic issue areas later are made into goal categories and the contents of the discussion are translated to become the core objectives. 5. STAFF REALITY CHECKING AND IMPLEMENTATION PLANNING
Once goals and objectives are in place, staff should “reality check” them. Are they doable with current staff and financial resources? Are there impediments, such as permitting or environmental issues, etc? Are changes suggested? Following this, staff then outlines the concrete actions that they will take to implement the goals, objectives and priorities outlined by the board. There are a number of considerations that impact the level of detail in the Implementation Plan but at minimum there should be an indication of timing, who is responsible, etc. for accountability. Volume 14 • Issue 2
6. SET PERFORMANCE MEASURES AND LINK TO RESOURCES
Setting performance measures is an important but difficult step. Each District should take time to define meaningful ways to measure progress and success. Staff implementation actions must be reflected in the budget and can even be tied together through a common numbering system between the budget and Big Picture Strategic Plan. 7. IMPLEMENT AND MONITOR PROGRESS
The best plan in the world is no better than a doorstop if it is not implemented. And you won’t know if it is implemented without monitoring and oversight. Before completing your plan, agree to how it will be monitored and overseen. Here are a few suggestions. • Display Mission, Vision, and Goals around the LEARN, SHARE THOUGHTS & HAVE YOUR office and in training as a QUESTIONS ANSWERED ON BIG PICTURE PLANNING AT THE JUNE GENERAL constant reminder. MANAGER LEADERSHIP SUMMIT. • Actively implement the plan (General Manager Look for the session: responsibility). Getting to-the-Point! How You Can Help Your • Board committees District Set Goals and Priorities in a Way that Is incorporate Plan Lively, Interesting, and Productive. monitoring and reporting in their work. This session provides get-to-the-point guidance that • Agenda items link to is proven to work. How to engage the Board, staff and the Plan. public productively in the strategic planning process, • Incorporate Plan and more.There will be opportunities for questions, implementation into answers and engagement among the participants and the seminar leader. the General Manager performance review.
Districts. Cities. States. Nossaman. Nossaman is pleased to announce the expansion of its Employment Practice Group, welcoming Drew Hansen, Roy Silva, and Seth Goldstein to our Orange County office. Mr. Hansen and Mr. Silva will serve as co-chairs of the group, with Mr. Goldstein joining as Of Counsel. We look forward to continued assistance of CSDA’s members and welcome you to explore our enhanced Employment capabilities at nossaman.com/employment.
Drew Hansen
Roy Silva
Seth Goldstein
33
TAKE ACTION
SHORT ON REVENUE TO FUND DISTRICT INFRASTRUCTURE?
ACA 1 COULD HELP Revenue measures in the Legislature continue to revolve around the theme of housing and infrastructure. CSDA is following a myriad of measures seeking to address these issues and is actively supporting a constitutional amendment that will help special districts fund important public infrastructure.
Assembly Constitutional Amendments (ACA) 1 (AguiarCurry) will create a new constitutional vote threshold of 55 percent for both General Obligation (G.O.) bonds and special taxes, when proposed specifically for the construction, reconstruction, rehabilitation, or replacement of public infrastructure or affordable housing. The bill also specifies requirements for voter protection, public notice, and financial accountability. Currently, the California Constitution requires a two-thirds vote at the local level for both G.O. bonds and special taxes, regardless of how the city, county, or special district proposes to use the funds. CSDA encourages special districts to join in submitting a letter of support. Additional information and a sample letter are available on the CSDA Take Action page at csda.net/take-action. As the legislative session continues, CSDA will continue to monitor all bills that may impact special districts’ revenue and their ability to provide essential services to California’s communities.
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ACA 1 DEFINES “PUBLIC INFRASTRUCTURE” TO INCLUDE, BUT BE NOT LIMITED TO, PROJECTS THAT PROVIDE THE FOLLOWING: • Water or protect water quality, sanitary sewer, treatment of wastewater, or reduction of pollution from storm water runoff • Protection of property from impacts of sea level rise • Open space, parks and recreation facilities • Improvements to transit and streets and highways • Flood control • Broadband internet access service expansion in underserved areas • Local hospital construction • Public safety buildings or facilities and equipment • Public library facilities
VISIT THE TAKE ACTION PAGE OF CSDA.NET TO PROVIDE LETTERS OF SUPPORT ON ADVOCACY ISSUES IMPACTING YOUR DISTRICT.
Sample letters of support are available on the Take Action page of the CSDA website at csda.net/ advocacy/take-action.
California Special Districts • Mar-Apr 2019
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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personal legislative contacts Willingness to contact your to special districts: regarding an issue of importance 4
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Survey Grassroots Mobilization Do You Know Your Legislator?
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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
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WEAK – STRONG
LEGISLATOR NAME
1 2 3 4 5 1 2 3 4 5
1 2 3 4 5 LAST UPATED APR. 15, 2016
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. attributed to me. ions communicat any sign-off on
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
Districts Stronger Together
STEVEN NASCIMENTO stevenn@csda.net • Central Network
www.csda.net 3/20/18 11:26 AM
2018 Take Action Brochure.indd
1
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 Legislature Introduces Record Number of Bills Prior to Deadline Prior to the State Legislature’s February 22 deadline to introduce legislation for consideration in 2019, legislators introduced a total of 2,576 bills. That represents a record number of new bills and, as reported by the Sacramento Bee, is significantly higher than the previous average of 2,200 bills. The increase is likely the result of a new policy in the State Assembly that raised the number of bills legislators can introduce in a two-year session from 40 to 50 bills. The addition of 10 bills for each of the 80 Assembly Members could account for as many as 800 bills in the 2019-2020 legislative session. CSDA reviewed each of the bills and worked with our Legislative Committee to adopt positions on legislation that impacts special districts. However, the record number of new bills also included a record number of “spot” or “intent” bills. The Sacramento Bee reported at least 694 “spot” bills that either indicate something will be done regarding a specific topic or declare an intent to amend an area or law without providing specific details about what changes will be made to current law. Legislators use “spot” bills as placeholders while they develop substantive language Volume 14 • Issue 2
for the bills, a practice that makes thorough analysis impossible until the bills are amended. The Bill Tracking page of the CSDA website allows you to search for bills by number, CSDA position, priority level, subject area, issue area, or district type. Visit the Bill Tracking page at csda.net/ advocate/bill-tracking.
SEASONS OF ADVOCACY: SPRING • Attend Special Districts Legislative Days in Sacramento, May 21-22 • Respond to CSDA Calls to Action on priority legislation • Visit the CSDA Take Action page at csda.net/advocate/take-action to download sample letters of support and opposition • Join Advocacy News at csda.net/ advocate/advocacy-blog to receive the latest legislative updates
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35
MANAGING RISK
THE NATURAL CONDITION IMMUNITY As we approach the spring season, warmer temperatures are bound to entice outdoor enthusiasts to venture out to the wide open spaces to camp, hike and backpack. As we all know, there is no shortage of visually stunning and otherwise inviting wilderness areas throughout the state of California to visit – from Big Sur, to Death Valley, to the Trinity Alps Wilderness.
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California Special Districts • Mar-Apr 2019
Before you get excited about those hot dogs and s’mores, you should be aware of Government Code § 831.2, commonly referred to as the “natural condition immunity,” which could render public entities immune against claims of premises liability and dangerous condition liability. Government Code § 831.2 provides that “neither a public entity nor a public employee is liable for an injury caused by a natural condition of any unimproved public property, including but not limited to any natural condition of any lake, stream, bay, river or beach.”
§831.2. Neither a public entity nor a public employee is liable for an injury caused by a natural condition of any unimproved public property, including but not limited to any natural condition of any lake, stream, bay, river or beach. The purpose of the natural condition immunity is to encourage public use of unimproved government property by relieving government agencies from being “‘put to the expense of making the property safe, responding to tort actions, and paying damages.’” Sounds like a good idea, right? Keep reading to learn how you can be denied damages by a public entity if you camp in an area that is classified as “unimproved.” The natural condition immunity was discussed in the recently published case of County of San Mateo v. Superior Court of San Mateo County (2017) 13 Cal.App.5th 724. As shown by County of San Mateo, the issue is not straightforward and there are many factors to be considered such that summary judgment is generally not appropriate. Indeed, the lead
drafter of the Government Claims Act, Professor Van Alstyne, contemplated that “the distinction between the ‘developed’ land and the ‘undeveloped’ sectors of a park might well be difficult to identify in terms of boundary lines on a map, and might have to be treated as a question fact…” In County of San Mateo, plaintiff child brought a lawsuit against the County of San Mateo alleging premises liability and dangerous condition of public property after he suffered injuries as a result of a 72-foot tall diseased tree falling on his tent while camping within a County-owned wilderness area. The County moved for summary judgment on the grounds that it was immune from liability under the natural condition immunity. The trial court denied the County’s motion, concluding that there were triable issues of fact as to whether the subject property was “unimproved” within the meaning of the statute. First, the trial court pointed out that the campsite where plaintiff’s injuries occurred had been “improved” by a clearing, picnic tables, a fire pit, a barbecue pit, and bumper logs and that in the tree’s immediate vicinity, there were two other developed campsites and a paved roadway. Next, the trial court distinguished the matter from an earlier similar case, Alana M. v. State of California (2016) 245 Cal. App.4th 1482. In Alana M., a public entity was found to be immune from liability in a suit brought against it by plaintiff who had similarly been injured by a falling tree. The Court there explained that the public entity was immune since the tree (and not the plaintiff) was located on unimproved property. The Alana M. Court determined that in interpreting Government Code § 831.2, the relevant inquiry should be the character of the property where the natural condition continued on page 38
SDRMA Board and Staff Officers
Staff
MIKE SCHEAFER, PRESIDENT Costa Mesa Sanitary District
LAURA S. GILL, Chief Executive Officer C. PAUL FRYDENDAL, CPA, Chief Operating Officer DENNIS TIMONEY, ARM, Chief Risk Officer ELLEN DOUGHTY, ARM, Chief Member Services Officer HEATHER THOMSON, CPA, Chief Financial Officer DEBBIE YOKOTA, AIC, Claims Manager WENDY TUCKER, Member Services Manager ALANA LITTLE, Health Benefits Manager DANNY PENA, Senior Claims Examiner JENNIFER CHILTON, Senior Accountant ALEXANDRA SANTOS, Health Benefits Specialist II PHILLIP BOTTOMS, Member Services Specialist II HEIDI UTMAN, Accountant HEIDI SINGER, Claims Examiner I TERESA GUILLEN, Member Services Specialist I DIANE DANIELS, Executive Assistant to CEO/Board Secretary
SANDY SEIFERT-RAFFELSON, VICE PRESIDENT, Herlong Public Utility District ROBERT SWAN, SECRETARY, Groveland Community Services District
Members of the Board DAVID ARANDA, SDA, Stallion Springs Community Services District JEAN BRACY, SDA, PRESIDENT, Mojave Desert Air Quality Management District ED GRAY, VICE PRESIDENT, Chino Valley Independent Fire District TIM UNRUH, SDA, Kern County Cemetery District No. 1
Consultants DAVID BECKER, CPA, James Marta & Company, LLP LAUREN BRANT, Public Financial Management DEREK BURKHALTER, Bickmore Risk Services & Consulting CHARICE HUNTLEY, River City Bank DAVID MCMURCHIE, McMurchie Law FRANK ONO, ifish Group, Inc. ANN SIPRELLE, Best Best & Krieger, LLP KARL SNEARER, Apex Insurance Agency DOUG WOZNIAK, Alliant Insurance Services, Inc.
Volume 14 • Issue 2
Special District Risk Management Authority 1112 I Street, Suite 300, Sacramento, CA 95814 tel: 800.537.7790 • www.sdrma.org
37
MANAGING RISK
Clearly, there are many nuances to the natural condition immunity. So before you load up your packs and begin your ascent up a mountaintop this spring season, consider the character of your campsite and whether the land could be described as “improved.” (in Alana M., the tree) is located, and not the location of where the injury occurred. In County of San Mateo however, plaintiff presented expert opinion that the tree at issue had roots which grew underneath the campsite where plaintiff suffered his injuries. As such, the trail court determined that there were triable issues of fact and therefore, summary judgment would not be appropriate. Last, the trial court considered expert opinion presented by plaintiff that man-made physical alterations contributed to the diseased condition of the tree which ultimately caused it to break and fall onto plaintiff, causing him injuries. The trial court determined that this evidence presented by plaintiff
also created a triable issue of fact of whether such man-made contributions caused the subject property to be considered “improved” such that the County would not be entitled to summary judgment. Clearly, there are many nuances to the natural condition immunity. So before you load up your packs and begin your ascent up a mountaintop this spring season, consider the character of your campsite and whether the land could be described as “improved.” Otherwise, you may be out of luck if you try to seek monetary compensation for injuries you suffer while you are on your trip in the great outdoors. ©BRADLEY & GMELICH 2019
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RECREATIONAL TRAIL IMMUNITY 831.4. A public entity, public employee, or a grantor of a public easement to a public entity for any of the following purposes, is not liable for an injury caused by a condition of: (a) Any unpaved road which provides access to fishing, hunting, camping, hiking, riding, including animal and all types of vehicular riding, water sports, recreational or scenic areas and which is not a (1) city street or highway or (2) county, state or federal highway or (3) public street or highway of a joint highway district, boulevard district, bridge and highway district or similar district formed for the improvement or building of public streets or highways. (b) Any trail used for the above purposes. (c) Any paved trail, walkway, path, or sidewalk on an easement of way which has been granted to a public entity, which easement provides access to any unimproved property, so long as such public entity shall reasonably attempt to provide adequate warnings of the existence of any condition of the paved trail, walkway, path, or sidewalk which constitutes a hazard to health or safety. Warnings required by this subdivision shall only be required where pathways are paved, and such requirement shall not be construed to be a standard of care for any unpaved pathways or roads.
California Special Districts • Mar-Apr 2019
Of the many immunities available under the California Government Code, “trail immunity” under section 831.4 has long shielded public entities from liability when injuries are suffered by those using public property for recreational purposes. Immunity under this section even extends to private property owners who grant public easements to public entities for those purposes. The immunity was enacted to encourage public entities and private easement grantors to allow the use of public property for recreation without the burden and expense of litigation stemming from alleged injuries on the trails leading to recreational activities. However, an appellate court recently rejected this defense in a case involving the City of Pasadena. In Jacobo Garcia v. American Golf Corporation, the City was sued after a young child was struck in the head by a stray golf ball, which caused a brain injury. At the time of his injury, the child was in a stroller on a walkway that was part of the City of Pasadena’s Rose Bowl Loop, located next to a golf course. The child’s mother sued the City, which owns the golf course, along with the private entity that managed and operated the golf course. The City asserted trail immunity to defend against the lawsuit. The plaintiffs countered that the dangerous condition was not the location of the walkway — insofar as its proximity to the golf course — but rather the inadequacy of the sevenfoot high fences around the golf course, and other measures taken to guard against injuries that could be caused by stray golf balls. The trial court sided with the City, and the plaintiffs appealed. The issue on appeal was whether the injury was caused by a dangerous condition of the walkway for purposes of trail immunity.
Volume 14 • Issue 2
Rejecting the City’s assertion and trial court’s application of trail immunity, the appellate court found that, while the City could be protected from injuries caused by the walkway itself, the immunity did not extend to dangerous conditions caused by the golf course – an adjacent public property. In reaching its conclusion, the appellate court had to distinguish the case from a number of contradictory cases, including Leyva v. Crocket & Co., Inc., a case decided in January of this year. The Leyva court evaluated strikingly similar facts: a pedestrian traveling along a public path adjacent to a golf club suffered an injury caused by a stray golf ball. However, in Leyva, the appellate court applied trail immunity and extended the cloak of immunity to a private golf club owner who had granted adjacent easements to a county for public unpaved recreational hiking trails. The difference between the Leyva opinion and the Garcia opinion is a matter of policy. The appellate court honed in on fairness and disincentives for immunizing the City. In particular, the court deemed it fair to deny the City immunity for a dangerous condition
▪
on the golf course that increases the risk of harm by third party conduct and opined that cloaking the City with immunity would disincentive it from correcting the dangerous condition. The appellate court has thus limited a public agency’s trail immunity under certain circumstances. With Garcia in mind, public entities and private owners/operators alike should ensure that sufficient preventative measures are considered and taken when evaluating recreational properties adjacent to public trails. ©BEST BEST & KRIEGER 2019 For additional information please contact SDRMA’s Chief Risk Officer Dennis Timoney, ARM at 916-231-4141 or email Dennis at dtimoney@sdrma.org.
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MONEY MATTERS
How to Prepare for a Successful Audit and Avoid Common Pitfalls By David Becker, CPA and Partner, James Marta & Company LLP
I
n February of 2016, I completed an audit of a special district for the year ended June 30, 2013 -- almost three years after their year-end. So, what went wrong? In September 2015, after numerous delays, the district contacted me to help them complete their audit. After a two-hour meeting with the general manager, we determined the following: A. The auditor was tracking and reconciling capital assets and depreciation, so the district did not have any of the records. (Auditors are not allowed to do this as it violates rules around independence.) B. A number of loans and capital leases were not recorded as debt. All principle and interest was just expensed when paid. C. The prior auditor stopped communicating because the district
40
didn’t provide specific documentation he had requested for the audit. The auditor had schedule conflicts that kept him from finishing the project. D. Most of the district’s accounts, including cash, were not reconciled at all during the year. E. The person in charge of accounting for the district did not know how to reconcile certain accounts because they did not understand the financial reports provided by the county treasury who posted their transactions. If any of this scenario feels familiar, read on. We have identified the top five pitfalls that can jeopardize a project from the auditor’s perspective as well as practical tips you can apply to ensure that your next audit is a success.
California Special Districts • Mar-Apr 2019
TOP FIVE PITFALLS IN CONDUCTING AN AUDIT
1. Fraud – Many people assume that an independent audit will detect fraud. While an audit might detect some fraudulent activity, that is not its primary purpose. Your audit does not replace your system of internal controls. I recently worked with a district whose finance officer had set up a business bank account using the district’s name. Deposits and transfers were made to an account that only the fraudster was aware of. Accounts like this one, that are not recorded in your accounting records, would be difficult to detect through the audit process. 2. Unresponsive to Auditor Requests – It is imperative that you respond to audit requests fully and in a timely manner. The audit firm’s project calendar is usually booked six months in advance and the audit team is scheduled to perform procedures on specific dates. If you can’t produce the items requested then your audit may need to be rescheduled at a much later date. In order to avoid a last-minute scramble, your auditor should provide a list of requests and allow you time to collect the items. 3. Lack of Documentation – Incomplete or missing documentation can also cause delays and may indicate control deficiencies. As a practice, you must define required documentation and conduct associated procedures. For example, before processing payment
Volume 14 • Issue 2
for goods or services, your policy and procedure may require 1) a signed purchase order or other pre-approval document; 2) documentation that goods or services were received; 3) an invoice that matches the purchase requisition; and 4) documented approval for payment. The auditor tests selected transactions to confirm that the required document exists and was completed according to your procedure. 4. Changes During the Audit – You should provide the auditor with a complete trial balance including all accrual entries posted. Changes to your trial balance or to the presentation of your financial statements requires additional time and effort by both parties which could increase the cost of the audit. Occasionally, clients will post adjustments after providing the original trial balance to the auditors. This requires the audit firm to re-import the trial balance and, in essence, start over. Any adjustments made after submitting the original trial balance should be provided to the auditor along with a thorough explanation. 5. Poor Risk Identification – Auditors start by working with you to identify likely risks for your District. It is important that your management and board understand your internal organizational risks, inherent risks in your industry, and any specific risks you have encountered in your organization. Where
is your organization most susceptible to lapses in internal control, errors and fraud? Proper separation of duties is essential to minimize control risk. TIPS FOR A SUCCESSFUL AUDIT
1. Communicate – Talk to your auditor throughout the year and ask questions about proper accounting, policies, internal controls and implementation of new standards. The new standards related to net pension and net OPEB liability can be very confusing and take time to apply. We work with our clients well in advance of their year-end closing to ensure that they apply proper accounting entries and disclosures to address the specific requirements of the standards. 2. Reconcile All Accounts – This should be done monthly in conjunction with your monthly bank and other cash account reconciliations. Do not wait until year end when the volume of transactions becomes overwhelming and rushing to reconcile accounts can cause errors. Accounts that tend to present challenges include capital assets and depreciation, longterm liabilities (e.g. bond debt, net pension liability, net OPEB continued on page 42
CSDAFC Board and Staff Officers JO MACKENZIE, PRESIDENT, Vista Irrigation District PAUL HUGHES, SECRETARY, South Tahoe Public Utilities District MATTHEW MCCUE, TREASURER, Mission Springs Water District
Members of the Board ALEX BRANDON, Phelan Pinon Hills Community Services District GEORGE EMERSON, Goleta Sanitary District GLENN LAZOF, Regional Government Services Authority VINCE FERRANTE, Moss Landing Harbor District
Consultants RICK BRANDIS, Brandis Tallman, LLC DAVID MCMURCHIE, McMurchie Law WILLIAM MORTON, Municipal Finance Corporation ALBERT REYES, Kutak Rock LLP SAUL ROSENBAUM, Prager & Co., LLC DEBORAH SCHERER, BNY Mellon Trust Co., NA NICOLE TALLMAN, Brandis Tallman, LLC
Staff NEIL MCCORMICK, CEO CATHRINE LEMAIRE, Program Manager AMBER PHELEN, 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
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MONEY MATTERS
liability and compensated absences), accounts receivable, inventory, and payroll related liabilities. 3. Planning – Meet with your auditor prior to beginning field work. This meeting should include your management team and audit/finance committee. Clarify timelines, responsibilities and expectations of each party. This should be documented in an audit planning memo that both parties can reference to avoid surprises later in the project. 4. Training – Financial statements and footnote disclosures are your responsibility. You should possess the technical knowledge necessary to prepare your own financial statements and note disclosures. For many districts, the audit firm prepares the audit report for you. However, the responsibility for accuracy remains with you. Your auditor can either provide you with the necessary training
or help you identify a third-party resource to gain the requisite knowledge. 5. Availability – All necessary personnel should be available to the audit team during the audit process to answer questions and provide appropriate documentation. Do not schedule the audit while key personnel are on vacation. We also recommend not scheduling the audit immediately after someone returns from vacation. We all know the work piles up when we go on vacation so allow yourself time to catch up before the auditors arrive. 6. Be Proactive – Address all findings and recommendations as they arise and work with your auditor to develop practical solutions. The auditors are not out to get you. We are here to provide the knowledge and education you need to successfully navigate the financial challenges your district may be facing.
Introducing
Data that actually makes sense Information for confident decisions - High Quality Customized data sets Delivered in an industry standard format California CAD Solutions 42
800-617-4447 www.calcad.com proservices@calcad.com
AUDIT PARTNERS SUPPORT CONTINUAL IMPROVEMENT
By developing an open relationship with your audit partner, you can take proactive steps to avoid many common mistakes, use the audit to strengthen your policies and procedures, better address compliance requirements, and support transparency with your board and constituents. Ultimately your audit can help you become a more efficient and effective organization while reducing the effort and challenges of the audit itself. About the Author: David Becker, CPA is a Partner with James Marta & Company LLP, a CPA firm in Sacramento, California. The firm has provided audit, accounting, tax and consulting services for special districts in California, Oregon, Washington and Alaska since 1988.
Tax-Exempt Lease/ Purchase Financing Over the past few months, CSDA Finance Corporation has helped numerous agencies find financing for equipment and vehicle purchases. Our lease/purchase financing option provides competitive rates, flexible terms, streamlined processes, and no up-front costs. • FIRE TRUCKS • FLEET VEHICLES • TRANSIT BUSES • AMBULANCES • EQUIPMENT OF ALL KINDS
Whether your financing need is large or small, make CSDA Finance Corporation your first contact. Get a free, no obligation quote online at www. csdafinance.net or call 877.924.2732.
California Special Districts • Mar-Apr 2019
DISTRICTS MAKE THE DIFFERENCE
BIGGER & Better
2019 Student Video Contest
t s e t n o c E WINS A 1ST PLAC IP! HOL ARSH $2,000 SC
T
he Districts Make the Difference 2019 Student Video Contest is undergoing a makeover this year. Among the more significant changes is an adjusted timeline. Students now have more time to make final edits before submitting their videos. Instead of a one-month submission period, students will have from May 1 to September 30 to enter their videos for a chance to win up to $2,000 in scholarships. In addition to the timeline change, the contest is also making a slight adjustment to the rules. Previously, students only had 60 seconds to explain how special districts make a difference
in their community. Beginning this year, students have the flexibility to create videos up to 90 seconds long. A few more seconds of cinematic genius can make a difference. The application process for the 2019 Student Video Contest is also changing this year. We’ve gone paperless! Instead of completing a paper application form, students can now complete their application and submit their videos online. Want more high school and college students to understand the important work your district does every day? Start promoting the 2019 Student Video Contest today! Promotional materials including a flyer and
A public outreach campaign supported by the California Special Districts Association to provide information about special districts, descriptions on how they serve communities, and compelling content. Visit us at districtsmakethedifference.org.
Volume 14 • Issue 2
BEGINS
May 1 2019
social media graphic are available at DistrictsMakeTheDifference.org/videocontest. Do you know a student who may be interested? Do you know a teacher, principal, superintendent, or school board member that can help promote the contest? Don’t hesitate to spread the word! There is still time for CSDA chapters to host a local contest in conjunction with the statewide competition! A Partner Toolkit is available to help interested chapters hold a local contest. Contact your network’s CSDA public affairs field coordinator for more information.
MAKE THE
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BUSINESS DIRECTORY
CHOOSE WITH CONFIDENCE.
Your ad here. For advertising inquiries, contact CSDA at 877.924.2732 or advertising@csda.net.
GET MORE VALUE FROM YOUR AUDIT
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Get Recognized. www.sdlf.org 44
CSDA Magazine Name • Mar-Apr 2018
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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!
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MAKE THE
DistrictsMaketheDifference.org DistrictsMaketheDifference.org
California Special Districts • Mar-Apr 2019
SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY
Guiding the way to a more secure future. SDRMA has been helping California public agencies navigate liability and manage risk for over 30 years. In fact, our experienced risk management staff and technical experts work exclusively with public agencies. All your coverage and risk management needs are met by a single resource that functions as an extension of your team. Public agencies can best proceed with confidence when they have a guiding star. Learn more about our Workers’ Compensation, Property/Liability and Health Benefits Programs at www.sdrma.org or 800.537.7790.
Volume 14 • Issue 2
Trusted Risk Management
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California Special Districts Association 1112 I Street, Suite 200 Sacramento, CA 95814
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