C ALI FO R N I A
SPECIAL DISTRICTS Vo l um e 14 , I s s u e 6 • N ov e m b e r- De ce mb e r 2 019
A Publication of the C alifornia Special D is tr ic ts A s s oc iation
Ask the Experts:
COVER PHOTO: Then-Governor Arnold Schwarzenegger signs Proposition 1A as the coalition with cities, counties, and special districts look on.
Fast Track to Leadership - Define Potential
Managers Corner:
The Person in the Middle
Building Powerful Partnerships and Communities
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DISTRICT OF DISTINCTION ACCREDITATION
DISTRICT OF DISTINCTION ACCREDITATION
TAKE YOUR DISTRICT TO THE NEXT LEVEL.
SPECIAL DISTRICT LEADERSHIP FOUNDATION
The District of Distinction Accreditation is designed as a way for districts to highlight their prudent practices important to effectively administer and govern a special district. In a time when proper fiscal management and responsibility in public agencies is paramount, it has become increasingly important to demonstrate that districts have sound fiscal management, transparency, and governance policies/practices in place. Apply today! 1112 I Street, Suite 200, Sacramento, CA 95814 • t: 916.231.2909 • www.sdlf.org Volume 14 • Issue 6
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TABLE OF CONTENTS
Solutions and Innovations:
Innovative Pipeline Integrity Program Allows Water District to Look Beyond Pipe Breaks and Life Spans
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Feature:
USDA Offers Financing Solutions for Special Districs
Past Pieces OF THE
Interview with Former CSDA President Michael Glaze
05 President’s Message
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06 Professional 24 Legal Brief: 38 Preventing Workplace Development Violence 08 CSDA News 30 Community Connections: 13 You Ask, We Answer: Stege Sanitary District 41 Board Meeting and KIDS for the Bay Minutes – Long or Short? Inspire Students to Become Environmentally 14 Movers and Shakers Aware 42 16 Ask the Experts: 34 Managers Corner: Fast Track to The Person in the Leadership – Define Middle Potential
For editorial inquiries, contact CSDA Editor-Communications Specialist Vanessa Gonzales, at 877.924.2732 or vanessag@csda.net.
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Take Action: Governor Newsom’s State Budget Proposal Due January 10 Risk Management: Harassment Prevention Training Districts Make the Difference: Special Districts Offer Students a Pathway to Public Service Money Matters: Are Your District’s Deposits Secure
For advertising inquiries, contact CSDA at 877.924.2732 or advertising@csda.net.
California Special Districts • Nov-Dec 2019
PRESIDENT'S MESSAGE
CSDA in 2019: A Year in Review First off, I want to say it has been a pleasure to serve as your CSDA Board President this year, a particularly special year as we celebrated CSDA’s 50 years of service. I look forward to continuing to Joel Bauer, SDA serve on the board and CSDA Board President working with the incoming 2020 CSDA Board President Jeff Hodge, SDA. The association continues to grow, with 70+ new members joining the association this year. Now more than 1,230 organizations look to CSDA for professional development, advocacy, and other essential member services. We continue to enhance the resources available at csda.net. Early this year, CSDA partnered with the online government surplus auction, GovDeals, to provide special districts and other government agencies with an easy-to-use, transparent platform for buying and selling surplus items online. Members list and sell their items at no cost through our portal. CSDA members can now post available internships to our online
Career Center at no cost. To help districts more easily evaluate their salary and benefits structure, a new online survey tool was launched for collection and comparison of data. The online format allows districts to create customized reports and make the most meaningful comparisons based on agency type, size, or other demographics. Two of our most popular publications were updated - the Special District Board Member Handbook, perfect for keeping board members current on their roles and responsibilities, and the California Public Records Act Compliance Manual which provides guidelines and compliance tips to fulfilling CPRA requests. CCSDA recently released it’s newest publication, Introduction to Special District Revenues, which provides., provides a high-level discussion of the revenue tools available to special districts in California. And finally, we look forward to announcing the launch of another member benefit in early January - a new program to bring you exclusive pricing on credit card payment processing services. Stay continued on page 7
CSDA Board and Staff Officers
Staff
JOEL BAUER, SDA, PRESIDENT, West Side Cemetery District
NEIL MCCORMICK, Chief Executive Officer
JEFF 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
ELEANOR BOLING, Member Services Representative
CHAD DAVISSON, SDA, Ironhouse Sanitary District
EMILY CHA, Professional Development Coordinator
VINCENT FERRANTE, Moss Landing Harbor District
MARCUS DETWILER, Legislative Assistant
PETER KAMPA, SDA, Saddle Creek Community Services District
DILLON GIBBONS, Senior Legislative Representative
JO MACKENZIE, Vista Irrigation District
VANESSA GONZALES, Communications Specialist
NOELLE MATTOCK, El Dorado Hills Community Services District
COLLEEN HALEY, Public Affairs Field Coordinator
SANDI MILLER, SDA, Selma Cemetery District
JIM HARROLD, Database & Online Communities Coordinator
WILLIAM NELSON, Orange County Cemetery District
MUSTAFA HESSABI, Legislative Analyst-Attorney
GINGER ROOT, Country Club Sanitary District
COLE KARR, Public Affairs Field Coordinator
TIMOTHY RUIZ, P.E., East Niles Community Services District
STEVEN NASCIMENTO, Public Affairs Field Coordinator
FRED RYNESS, Burney Water District
CHRIS PALMER, Public Affairs Field Coordinator
ARLENE SCHAFER, Costa Mesa Sanitary District
AMBER PHELEN, Executive Assistant CASSANDRA STRAWN, Senior Member Services Specialist
California Special Districts Association 1112 I Street, Suite 200, Sacramento, CA 95814 toll-free: 877.924.2732 • www.csda.net
© 2019. California Special Districts Association. Volume 14 • Issue 6
ANTHONY TANNEHILL, Legislative Representative DANE WADLÉ, Public Affairs Field Coordinator JAMES WILFONG, Senior Designer
A proud California Special Districts Alliance partner
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PROFESSIONAL DEVELOPMENT
Thank you to the 2019 CSDA Annual Conference & Exhibitor Showcase sponsors
Study Group Now Forming
Don’t miss your chance to be a part of the 2020 Special District Administrator (SDA) Study Group. Group members and their facilitator will be members of an exclusive CSDA online community. Each month study group participants participate in one or two conference calls regarding a topic related to the SDA exam. Participants are responsible for actively engaging in the online community and submitting five sample questions per month regarding that month’s topic. Participants also serve as the presenter at during at least one conference call per year to summarize and present reading material for their fellow attendees. Earn valuable credit hours – complete the SDA Program Online Study Group and receive 50 hours toward “related continuing education” on your SDA application. Topics covered include: governance, legal requirements, policy development, ethics in public service, budgets and audits, personnel, and more! Limited class size – 35 participants per year! Contact meganh@sdlf.org for a complete schedule and registration link.
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ADA Site Compliance Atkinson, Andelson, Loya, Ruud & Romo Bank of the West Best Best & Krieger, LLP BNY Mellon Brandis Tallman, LLC Caselle Community by Diligent Contra Costa Special Districts Association Contractor Compliance and Monitoring, Inc CSDA Finance Corporation Cucamonga Valley Water District GovDeals Liebert Cassidy Whitmore McMurchie Law Nossaman, LLP Richards Watson Gershon Rojas Communications Group Santa Clarita Valley Water Agency Special District Leadership Foundation Special District Risk Management Authority Streamline Umpqua Bank
Save the Date 2020 CSDA Annual Conference and Exhibitor Showcase AUGUST 24 – 27, 2020 PALM DESERT
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California Special Districts • Nov-Dec 2019
President’s Message Continued tuned! During the 2018-19 Legislative Session, CSDA reviewed 3,033 bills. CSDA actively tracked 787 of those bills and directly lobbied on 132. Of the 63 bills CSDA opposed, only 13 became law; the other 50 were vetoed, amended to remove CSDA’s concerns, or have become two-year bills. Conversely, 31 of the 69 bills CSDA supported have become law. Throughout 2019, CSDA led the way in blocking mandates, protecting district dollars, and enhancing revenues. Just a few of the most notable achievements included: holding off costly illegal pension payments
under SB 266; deterring additional mandates related to the California Voter Rights Act under AB 849; guarding local control of special district property in the face of AB 1486; defeating a two-year email retention mandate proposed by AB 1184; ensuring property taxes are not diverted away from special districts without consent within legislation such as AB 11, SB 5, SB 15, SB 532, or the State Budget process; and defending critical local infrastructure by narrowing a host of legislation seeking to restrict or eliminate development impact fees, such as AB 68, AB 1484, SB 4, and SB 13. Learn more about all of this year’s legislative outcomes by downloading CSDA’s Year-End Legislative Report at csda.net/take-action. CSDA’s Professional Development continued to see growth in both our attendance and number of offerings. The 2019 schedule included 34 live webinars. Our on-demand webinar system is continually updated and currently has over 50 webinar titles – including some offered at no cost and some offered at no cost to SDRMA members. Professional Development also saw 37 scheduled workshops – including two in all six of our District Networks – “Board Member Best Practices” in each network the first half of the year and “Essential Communications for Every Special District”
SAN FRANCISCO
in each of the six District Networks in the second half of the year. The Professional Development line-up also featured seven conferences with each of our Special District Leadership Academy Conferences featuring both a first-time and returning attendee track. Thank you to everyone for your support of CSDA this last year and for celebrating the 50th anniversary of CSDA! Continue to peek at our website where we list professional development offerings, bill tracking, and member resources all year long. It has been my absolute pleasure to serve as your CSDA Board President in 2019!
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Volume 14 • Issue 6
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CSDA NEWS
Congratulations to the 2020 CSDA Executive Committee and Board Members CSDA Board Officers serve a one-year term and are elected by the CSDA Board of Directors at their board meeting during the CSDA Annual Conference & Exhibitor Showcase. The following CSDA Board Officers were elected to the 2020 CSDA Executive Committee:
Free Ethics Training with Membership Renewal
Don’t forget! As a thank you to our members, CSDA offers free online access to required Ethics Training for a limited time. Submit your membership dues by January 6, 2020 and your district will receive access to on-demand AB 1234 Ethics Compliance Training through March 16, 2020 at no cost. Optional add-ons to your renewal include 2020 labor laws posters, sample policy handbook subscription, and salary survey access. If you haven’t received your invoice or have questions about your membership status, please contact the member services team at membership@csda.net.
Need Interns?
CSDA just enhanced our online Career Center to include a section just for available internships. Members can post an internship opening for 30 days at no cost. Visit careers.csda.net.
New Resource for Members
Hot off the press is a new resource for CSDA members – an Introduction to Special District Revenues. This publication incudes an overview of the primary revenue tools available to California special districts as well as a discussion of property taxes and the impact of Propositions 13, 218, and 26. CSDA extends our gratitude to our Business Affiliate, NBS, for their contributions. Visit Publications & Reference Materials at csda.net for a free download or call 877.924.2732 to order a hard copy.
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• President – Jeff Hodge, SDA Santa Ynez Community Service District • Vice President – Ryan Clausnitzer, SDA Alameda County Mosquito Abatement District • Secretary – Stan Caldwell Mt. View Sanitary District • Treasurer – Elaine Magner Pleasant Valley Recreation and Park District • Past President – Joel Bauer, SDA West Side Cemetery District The 18-member board consists of three directors from six networks in California. The remaining board members include:
NORTHERN NETWORK Ralph Emerson, Garberville Sanitary District Greg Orsini, McKinleyville Community Services District Fred Ryness, Burney Water District
SIERRA NETWORK Jerry Gilmore, Truckee Sanitary District Pete Kampa, SDA, Saddle Creek Community Services District Noelle Mattock, El Dorado Hills Community Services District
BAY AREA NETWORK Stanley Caldwell, Mt. View Sanitary District Ryan Clausnitzer, SDA, Alameda County Mosquito Abatement District Chad Davisson, SDA, Ironhouse Sanitary District
CENTRAL NETWORK Joel Bauer, SDA, West Side Cemetery District Sandi Miller, SDA, Selma Cemetery District Lorenzo Rios, Clovis Veterans Memorial District
COASTAL NETWORK Vincent Ferrante, Moss Landing Harbor District Jeff Hodge, SDA, Santa Ynez Community Services District Elaine Magner, Pleasant Valley Recreation and Park District
SOUTHERN NETWORK Jo MacKenzie, Vista Irrigation District Arlene Schafer, Costa Mesa Sanitary District Vacant seat California Special Districts • Nov-Dec 2019
Congratulations to the 2019 CSDA Award Winners
A big congratulations to all this year’s CSDA Annual Award winners! Individuals and districts both received awards acknowledging their achievements in various areas including exceptional public outreach, leadership, and innovations! The awards were presented at this year’s 50th anniversary CSDA Annual Conference & Exhibitor Showcase held September 25-28, 2019 in Anaheim. Winning submissions from each category are as follows:
1. William Hollingsworth Award of Excellence: David McMurchie, McMurchie Law 2. General Manager of the Year: Robert Doyle, East Bay Regional Park District 3. Board Member of the Year: Stanley Caldwell, Mt. View Sanitary District 4. Staff Member of the Year: Laura Taylor, Park Planning Manager, Cordova Recreation & Park District 5. Ralph Heim Exceptional Outreach & Advocacy: Brenda Fotos, Sacramento Municipal Utility District 6. Exceptional Public Outreach & Advocacy (Large District Category): El Dorado Hills Community Services District for its Culture of Exceptional Public Outreach & Advocacy 7. Innovative Project of the Year (Large District Category): Placer County Water Agency for its French Meadows Forest Restoration Project 8. Innovative Program of the Year (Small District Category): Camarillo Health Care District for its Partnership to Improve Transitions 9. Exceptional Public Outreach & Advocacy (Small District Category): Stege Sanitary District for its Kids for the Bay Program (not able to attend, photo not available.)
Volume 14 • Issue 6
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2020 CSDA award nominations will open in February 2020. If you have any questions on how to submit an award application, please contact Communications Specialist Vanessa Gonzales at 877.924.2732 or at vanessag@csda.net.
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SOLUTIONS AND INNOVATIONS
INNOVATIVE PIPELINE INTEGRITY PROGRAM ALLOWS MESA WATER DISTRICT TO LOOK BEYOND PIPE BREAKS AND LIFE SPANS By Karyn Igar, PE, Senior Civil Engineer, and Phil Lauri, PE, Assistant General Manager
Mesa Water District’s (Mesa Water®) 317 miles of pipeline transport California’s most precious natural resource -- potable water -- directly to businesses and 110,000 residents in the district’s service area. These pipes, crucial to Mesa Water’s infrastructure, are facing the same reality that many utilities and cities are facing—age. As infrastructure throughout our country continues to age and deteriorate, the question for most cities and special districts is, how can foresight investments sustain desired levels of service without financially overburdening ratepayers? 10
California Special Districts • Nov-Dec 2019
Mesa Water, an independent special district located in Costa Mesa, provides potable and recycled water service in an 18-square-mile service area that includes most of Costa Mesa, a portion of Newport Beach, and John Wayne Airport. The pipelines in this distribution system date back to as early as 1926, and the vast majority of the district’s pipeline infrastructure was constructed after 1950 using Asbestos Cement Pipe (ACP). Mesa Water is governed by a five-member elected Board of Directors, which has adopted a “perpetual agency” philosophy that focuses on cost-effectively sustaining long-term service levels. With rising pipeline replacement costs being a serious concern, developing a large replacement fund to remedy this issue was not considered a practical option. The leadership at Mesa Water determined that a more efficient approach was needed to create a pipeline renewal program that maximizes assets for useful life, keeps water loss to a minimum, and ensures sustainable, safe, and reliable water service to the community. In 2013, to better understand the cost implications of replacing aging infrastructure, Mesa Water conducted an age-based renewal report that used local unit costs and industry averages to estimate replacement costs. With more than half of Mesa Water’s distribution system constructed pre-1968, the report estimates indicated that approximately $300M would be needed over the next 30 years. Utilities often use run-to-failure models that leverage historic break data and other risk factors to make pipe-specific renewal decisions. Compared to the industry average, Mesa Water has a very low pipeline break rate, with approximately 14 breaks per year, or about 4.5 breaks per 100 miles per year. Using that data, it was believed that substantial portions of the district’s system still had significant remaining useful life. To that end, Mesa Water sought to develop conditionbased renewal decision-making criteria to drive its infrastructure investment decisions. In 2014, Mesa Water’s Board of Directors proactively addressed looming
asset replacement needs by calling for the development of condition-based pipeline testing, annual non-destructive testing of 1% of the distribution system’s pipelines, and prioritizing pipeline testing by age, break history, soil conditions, and pipe diameter (e.g., if non-destructive testing estimates less than 70% remaining wall thickness, a sample of the pipeline is extracted and sent to a lab for destructive testing). These parameters shaped Mesa Water’s Pipeline Integrity Program (PiP). The PiP creatively and successfully addresses the industry-wide issue of renewing/replacing water system pipelines in an economical, effective, and timely manner. The program’s objectives are to keep good-condition pipelines in service and identify those that need replacing. The PiP involves extensive system analysis, including non-destructive and destructive testing, to better understand the system’s pipe deterioration rates. This information helps Mesa Water estimate remaining useful life, make near-term renewal decisions, and develop more prudent long-term infrastructure budgetary determinations. Mesa Water began the PiP by testing ACP, which comprises 74% of Mesa Water’s system. These pipes were installed as early as 1948 and have an age-based useful life of 75 years. Mesa Water partnered with Echologics -- an engineering company that specializes in non-invasive acoustic pipe condition assessments and detection of underground leaks -- to conduct non-destructive testing of ACP using e-Pulse, an acoustic wave traveling through the pipe that measures the pipe wall’s structural thickness. Acoustic technology is relatively inexpensive and not disruptive to water quality or distribution. After several years of investigation and testing, Mesa Water completed e-Pulse testing on approximately seven miles of ACP. Where e-Pulse measured less than 70% remaining wall thickness, pipeline samples were sent to labs for destructive testing. These tests included: 1. Crush Test - measuring external loads, such as traffic and soil, on the pipe; 2. Hydrostatic Burst Test - measuring internal water pressure; and, continued on page 12
Volume 14 • Issue 6
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SOLUTIONS AND INNOVATIONS
3. Phenolphthalein Stain Test and Energy Dispersive Microscopy measuring remaining structural wall thickness. Result’s found that, on average, Mesa Water’s ACP will last approximately 140 years, twice as long as indicated by the industry average useful-life tables. This breakthrough discovery allowed the district to reevaluate the remaining useful life of its entire infrastructure system and recalculate the year-by-year replacement cost for all ACP pipes, reducing the forecasted 30-year replacement cost from $300M to approximately $60M. By evolving from an age-based approach to a conditionbased program, older pipes in good condition can continue to operate. It is estimated that $231M worth of unnecessary pipe replacement will be avoided over the next 30 years.
The PiP provides Mesa Water an efficient water distribution system replacement process by using science and technology to protect current and future water service to its customers. Using this approach, the district enjoys further clarity on current and future pipe conditions while also serving as a best practice example for retail water agencies in California. Mesa Water is committed to the continued investment in, and proactive maintenance of its infrastructure, which pumps, treats, and delivers nearly five billion gallons of quality drinking water to homes and businesses each year. This innovative program has allowed Mesa Water to project current and future water service costs while delivering 100% local, reliable, and safe drinking water to its most valuable assets– customers.
Representing California public agencies for over sixty years.
Greg Stepanicich Jim Markman Roxanne Diaz Ginetta Giovinco Whitney McDonald
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California Special Districts • Nov-Dec 2019
Questions Appear in CSDA Communities
YOU ASK, WE ANSWER
Q&A
Board Meeting Minutes – Long or Short?
Volume 14 • Issue 6
Mary Neher, District Secretary Contra Costa Water District Does anyone have a presentation or policy used to support the board meeting minutes format from long-summary to short-summary?
Lynda Kerney, Administrative Assistant Beaumont-Cherry Valley Water District I once worked for a county supervisor. During Board discussion, the supervisor added some very specific conditions of approval to a development project. Fast forward five years. The supervisor had passed away. The developer, whose project had stalled, returned to the board and requested updated COAs. Staff turned to the minutes of the meeting to determine why the former supervisor specifically included those COAs, but the minutes offered no detail. We then requested the audio recording of the meeting. The audio files had degraded and were unintelligible. It had been just five years! (Technology changes, system “upgrades,” poor storage, who knows?) The bottom line is, we tried to preserve the original intentions of the elected official but were unable to do so as we could not recall why the specific COAs were important. Lesson learned: for historic preservation and certainty, rely on your written minutes, not any potentially obsolete technology. If you do not include any discussion on how the decision was made, you may never be able to recover that information. Angela Bradford, Executive Secretary Alameda County Employees’ Retirement Association I tend to include more detail in the board minutes, because it can assist staff when they conduct research (legal or otherwise) without having to listen to the entire audio recording and/or going through several staff reports to find the discussion(s)/information they need. In my opinion, the written minutes serve as a “One Stop Shop.” However, we will be switching to a system in the near future that can mark specific discussions, etc. on the audio recordings. Therefore, a lot of detail may no longer be required in the written minutes. Victoria Paulsen, Director Newberry Community Services District I am a board member of a tiny community services district (small community of 2,000 or so). Our secretary does only the minimum minutes, but I have been trying to research some historical cases and prefer the minutes that let me know what actually was discussed and who said what (within reason). I need to convince the board and secretary that an electronic recording could be made available to the public without making extra work for the staff. Then she could do the brief minutes, but the other would be available. Of course, electronics don’t last forever, not like paper.
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.
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MOVERS & SHAKERS
MOVERS& SHAKERS
West County Wastewater District (WCWD) hired four new managers (pictured from left to right with General Manager Lisa Malek-Zadeh): Administrative Services Department Manager Justin Lovell, Deputy General Manager Andrew Clough, Water Quality & Resource Recovery Department Manager Aaron Winer, and Infrastructure & Planning Department Manager Michael Savannah.
West County Wastewater District (WCWD) hired four new executive team members who will help the district achieve its mission and vision while prioritizing the agency’s core values. The new employees include: Andrew Clough, Deputy General Manager; Justin Lovell, Administrative Services Department Manager; Michael Savannah, Infrastructure & Planning Department Manager; and Aaron Winer, Water Quality & Resource Recovery Department Manager. Each manager possesses skills that will enhance WCWD’s level of customer service, build community trust and connections, and emphasize accountability and transparency.
Scott Carroll
Costa Mesa Sanitary District General Manager Scott Carroll, SDA was recognized for 25 years of service to local government by the International City/County Management Association (ICMA). He received this honor for his significant contribution and achievements in the advancement of local government administration.
Michelle Reimers has been selected by the Turlock Irrigation District (TID) Board of Directors to succeed Casey Hashimoto as General Manager in January 2020. Reimers is currently serving as TID’s Assistant General Manager of External Affairs and has been with the district for 14 years. Reimers, who lives and farms in the district, has a unique Michelle Reimers perspective as an end-user of both electrical power and irrigation water.
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Christiana Daisy, with almost 30 years of experience, has joined the Inland Empire Utilities Agency (IEUA/Agency) as Executive Manager of Engineering/Assistant General Christiana Daisy Manager. Ms. Daisy comes to IEUA from West Basin Municipal Water District, where she served as Operations Manager since 2014. Ms. Daisy managed and oversaw recycled water treatment, distribution and groundwater desalting facilities’ contract operations and maintenance, and represented potable water member agencies regarding operational issues. Prior to that, she worked for the Metropolitan Water District of Southern California for 18 years serving in various engineering roles. Meagan Luevano is the new Public Information Officer at the Placer Mosquito and Vector Control District. She will be overseeing the public outreach and communications Meagan Luevano for the district. Ms. Luevano previously worked in a downtown Sacramento public relations and outreach agency where she managed public relations campaigns for numerous water and wastewater districts throughout Northern California. She is very excited to be with the district and help protect public health in Placer County.
Do you have movers and shakers in your districts to highlight? Send to CSDA Communications SpecialistEditor Vanessa Gonzales at vanessag@csda.net for consideration in this section.
California Special Districts • Nov-Dec 2019
The North Coast County Water District appointed Adrianne Carr, PhD to serve as its next General Manager. Ms. Carr is a resident of Brisbane, California, and has been a Senior Water Resources Specialist with the Bay Area Water Supply and Conservation Agency Adrianne Carr since 2013. Prior to returning to the Bay Area, Ms. Carr worked for four years at the Argonne National Laboratory in Illinois. Ms. Carr received her Doctorate degree in Hydrology from Stanford University. Municipal Water District of Orange staff (left to right) Director of Public Affairs Damon Micalizzi, Public Affairs Coordinator Bryce Roberto, Public Affairs Manager Tiffany Baca, Public Affairs Specialist Sarah Wilson, and Public Affairs Assistant Traci Muldoon were awarded six regional honors.
The Municipal Water District of Orange County (MWDOC or district) was awarded with six regional honors for its outstanding efforts in public relations, program development, and communication strategies. The district earned the prestigious PROTOS Award and five Awards of Excellence in the categories of Corporate Identity, Community Relations/ Institutional Programs, Broadcast Productions, Press Kit – Hard Copy and Electronic, and Social Media Programs respectively. The awards were presented by the Orange County Public Relations Society of America (OCPRSA).
California Special Districts Association was awarded for “Best Email Design” by Higher Logic at the recent Higher Logic Super Forum Conference. Congratulations to CSDA for their strategy and design on CSDA eNews emails!
MAXIMIZ E Y OUR M E M BE RSHI P
VISIT CSDA’S ONLINE COMMUNITIES Connect Communicate Engage Volume 14 • Issue 6
WWW.CSDA.NET
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ASK THE EXPERTS
Fast Track to Leadership – Define Potential Melissa Asher, PMP, SPHR, Senior Leader, CPS HR Consulting
Look at Succession Planning Differently
Have you heard of the 9-box? This traditional method has several shortcomings that make it difficult to identify the right leaders and can actually slow down your succession planning process. With this model, management comes together and using a 3 by 3 matrix, rates staff on two dimensions, performance and potential. It looks something like the picture below, with the green boxes indicating your most promising staff, yellow boxes needing varying degrees of development, and the red box requiring serious performance attention.
We are in a leadership trough. There is near universal agreement among public and private sector organizations that one of their biggest challenges is developing effective leaders. Seasoned leaders are retiring and those coming behind them do not have their years of experience. The tight labor market isn’t helping either. With fewer people looking for jobs, it is even harder to attract job seekers to the public sector. During the economic downturn, the public sector was a welcome haven for leadership talent fleeing the turbulent private sector. Those days are over. The pendulum has swung the other way with the private sector luring public sector talent to fill their leadership gap. And gig economy mentality has taken its toll - eroding the long-standing benefit of longevity that has been a mainstay of public sector recruitment and retention. So, what can we do to overcome these obstacles and fast track leadership development? Two things -look at succession planning differently and focus on skill-building rather than years of experience. 16
While the simplicity of this model is appealing, it is actually complicating leadership selection and development. Performance measurement should be relatively objective, and most organizations have at least some concrete metrics. But, if you have ever been part of a performance appraisal process you know it is fraught with subjectivity. Supervisors struggle with how to quantify things like attitude, initiative, and getting along with others. However, challenges calibrating performance pale in comparison to calibrating potential. What exactly is leadership potential anyway? Most organizations talk about performance measures, but who talks about potential measures? Leadership potential is the capacity to be successful in a future leadership role with a certain amount of learning and development. So, how do we determine if someone has this capacity? Unfortunately, in most 9-box exercises this becomes a purely subjective decision by one supervisor at one point in time. One way to improve your efforts and fast-track leadership development is to explicitly define leadership potential for your organization. You can boil leadership potential down to two factors: (1) Motivation to be in a leadership role, and (2) Possession of key leadership competencies. California Special Districts • Nov-Dec 2019
MOTIVATION
Motivation goes well beyond someone “wanting to be leader”. Potential leaders should be truly ready to step into all that leadership brings. Consider these three things: (1) Willingness to take on extra duties and responsibilities. (2) Willingness to make sacrifices for the organization. (3) Willingness to embrace a certain amount of psychological discomfort. That’s right, leadership is not all champagne and caviar. Who knew? The extra pay comes with extra responsibilities and tough decision making that everyone is not prepared to sustain. And, potential leaders need to be in it for the right reasons – many times emphasizing the organization over self. Some of these qualities may be shocking to “want-to-be leaders”. Supervisors should discuss the motivation questions with employees who express a desire to move into a titled leadership role. KEY COMPETENCIES
Once the motivation hurdle has been cleared, look at the seven key competencies research has shown as predictors of leadership success. Spoiler alert, they are not technical competencies.
Effective Public Outreach Practical Strategic Planning
1. Takes Accountability – Demonstrates integrity and trustworthiness; and fulfills promises and commitments to others. 2. Possesses a Learning Orientation – Demonstrates curiosity, innovation, and insight; and considers creative approaches and applies novel solutions. 3. Perseveres – Demonstrates persistence, adaptability, flexibility, and grit in a variety of situations and in the face of setbacks. Open to different and new ways of doing things and willing to modify preferences and priorities for the greater good. 4. Supports Vision and Takes Strategic Action – Supports, promotes and ensures alignment with the organization’s vision and values. Understands how an organization must change in light of internal and external trends and influences. 5. Inspires – Energizes others and creates a sense of direction, purpose, excitement, engagement and momentum for the organization’s mission. 6. Fosters Collaboration – Develops, maintains and strengthens relationships while working together to achieve results. 7. Facilitates Understanding – Communicates clearly with others; encourages an environment where others are free to express their thoughts and opinions. continued on page 18
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Volume 14 • Issue 6
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With these competencies and definitions, you now have a solid basis to understand and measure potential. This will take the guesswork out of your succession planning and help your employees understand what is expected when taking on leadership roles. Then, use the competencies as an assessment tool. Ask employees to assess themselves on the seven competencies and cite specific examples. Be sure examples include when competencies were demonstrated as well as times when they weren’t. Beyond illustrating current behaviors, this approach illuminates self-awareness and the ability to learn from past experiences, both important leadership abilities.
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You may have noticed that the world of work is evolving. Many roles that exist today won’t exist in the future. Skills that got us to where we are today may not be the skills our next leaders need to navigate increasingly uncertain and uncharted business problems. Looking at succession planning differently also focuses on skill building rather than years of experience – our second strategy to fast-track leadership development. Through the competency assessment approach, the employee and supervisor can see what areas need developing. A path to leadership development can be charted through focused skill building. Use a simple one-page development plan to keep the employee on track and provide both the supervisor and employee with regular talking points to discuss short and long-term career development. With new technologies and changing customer needs and expectations, job redesign is an ongoing conversation in the HR world. Tomorrow’s leaders will not be maintaining status quo or using solutions from the past, they will be charting novel and creative solutions. Therefore, continually building new skills will better serve a leader today than rehashing techniques and solutions pulled from past experiences. Creating a fast track for leaders in your organization should be a priority. With these two simple steps - better defining what leadership potential means in your organization and focusing on skill building - you can more quickly assess who is ready and then ramp them up with focused development. Get ready to see the talent in your organization move to the fast lane. California Special Districts • Nov-Dec 2019
Celebrating 50 Years of Service: 1969-2019
Past Pieces OF THE
2019 marks California Special Districts Association’s 50th Anniversary! Throughout the
year, CSDA is celebrating our history, members, and service.
Interview with Michael Glaze CSDA PRESIDENT 1993-1994
To conclude this special 50th anniversary section, California Special Districts interviewed CSDA Past President Michael Glaze who served on the CSDA Board of Directors from 1993 – 1994. Among his many contributions to CSDA, he was as integral part of the passage of Proposition 1A. Governor Arnold Schwarzenegger proposed a coalition to work on this new state constitutional amendment. Michael Glaze, along with CSDA Past President Bill Miller (19941995 & 2002-2004), were selected to represent special districts on this coalition to protect local governments’ property tax revenue.
Celebrating 50 Years of Service: 1969-2019
INTERVIEW
How and when did you first get involved with CSDA?
CSDA had been in existence for approximately 15 years when I was first elected to its board of directors. I was a young public utility district manager who believed that special districts were a vital component of local governments and that they offered the communities they served the most responsive and transparent mode of representation. Getting involved in CSDA was an opportunity for me to reach beyond my own community and work for changes that would be of assistance to communities throughout the state. Little did I know then that I would spend the last 35 years of my career managing special districts.
During your time of presidency, what were some of the greatest accomplishments of CSDA? Were there any hurdles to overcome?
Ensuring that special districts were respected and afforded the status they deserved as important components of the state’s local government structure was the primary focus of CSDA when I became a board member. And shortly thereafter, largely through the efforts of CSDA, legislation was passed that gave special districts a seat on each county’s LAFCo. Before that, counties and cities each had strong associations that lobbied effectively on behalf of their constituents, but special districts were represented by service-specific associations that did not work together on big-picture issues. It wasn’t until CSDA began to attract more and more members that it began to be seen as THE representative of all special districts statewide. CSDA’s growing status became extremely apparent when, in the early 90s, the Legislature began efforts to take property tax revenue away from special districts. Then-Governor Arnold Schwarzenegger proposed a coalition with cities, counties, and special districts 20
to oppose this outrageous revenue grab, and CSDA was the association that was called upon to provide two representatives to join with two each from cities and counties. My fellow board member Bill Miller and I spent a week in the Governor’s office with that team hammering out a compromise that protected local governments’ property tax revenue. It became Proposition 1A, a state constitutional amendment that was ultimately approved by California voters. CSDA contracted its association management services and its limited educational offerings when I was first elected to the board. It was apparent at that time that the association would only grow into the organization it needed to be (and has ultimately become) if two things happened: it needed its own management staff; and, it needed to begin offering educational opportunities to its members that would elevate the professionalism of both their directors and their staff. We made the bold leap and left the Nossaman law firm that had been providing management services. We rented office space and hired our first (successful) executive director: Catherine Smith. Catherine was futuristic, energetic, diplomatic, and courageous. Her leadership was the shot-in-the-arm that CSDA needed at the time. And, fortunately, she guided CSDA through a decade of growth that gave it the opportunity to become the sophisticated and effective organization it is today.
During my time as CSDA’s president, education opportunities for association members was my primary focus. Several years earlier, the board had decided that the association should provide its own educational offerings rather than contract out for them. Fellow board member Betty Harrison-Smith taught at Shasta Community College, and I was a part-time public administration professor at CSU Chico. So, the rest of the board designated the two of us as CSDA’s educational program. And we were up for the task. We developed seminars for district board members and staff and took our show on the road. The offerings were hugely successful and grew to the point that we knew that more than just the two of us was needed to meet the demand. Further, I had a dream for CSDA to develop an accredited training program that would be professionally recognized for elected special district directors, managers and staff. Over time, and through the efforts of Catherine Smith, her staff, and many CSDA board members, a team of subjectmatter experts put together the curriculum that is now the Special District Leadership Academy.
Is there anything else you would like to share?
So, congratulations to CSDA for its first 50 years! Look what you’ve accomplished and how you’ve improved local government through special districts in California. I can’t wait to see what your post-50 encore will be like! California Special Districts • Nov-Dec 2019
Past Presidents More Fun Facts In honor of the 50th anniversary of the California Special Districts Association, we would like to recognize all the CSDA past presidents. Thank you for your leadership and service to special districts over the past 50 years! • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
RALPH CHAPMAN, 1970-1975 MURRAY HOLMES, 1975-1977 BILL HOLLINGSWORTH, 1977-1982 & 1992-1993 DICK SCHMIDT, 1982-1983 ART KORN, 1983-1984 PHIL BROWNING, 1984-1985 ART HOLMES, 1985-1986 AL RICKSECKER, 1986-1987 KEN AITKEN, 1987-1988 ED MACKAY, 1988-1989 BETTY HARRISON-SMITH, 1989-1990 MARSH GOLDBLATT, 1990-1991 LARRY FARR, 1991-1992 MICHAEL GLAZE, 1993-1994 BILL MILLER, 1994-1995 & 2002-2004 LEE HOWARD, 1995-1996 ROBERT HUNTLEY, 1996-1998 HARRY EHRLICH, 1998-1999 RITA VELASQUEZ, 1999-2000 CHUCK BEESLEY, 2000-2002 SHERRY STERRETT, 2004-2006 JOHN FOX, 2007 JIM ACOSTA, 2008 ARLENE SCHAFER, 2009 MARK BRYANT, 2010 JO MACKENZIE, 2011 DEWEY AUSMUS, 2012 STANLEY CALDWELL, 2013 NOELLE MATTOCK, 2014 STEVE PEREZ, 2015 WILLIAM NELSON, 2016 VINCENT FERRANTE, 2017 GREG ORSINI, 2018 JOEL BAUER, 2019
Volume 14 • Issue 6
The first CSDA Lifetime Achievement Award was given to William Hollingsworth in 1993. The award name was changed to his namesake, now called the William Hollingsworth Award of Excellence. In the early days, CSDA provided regional workshops called “Workshops on Wheels.”
California Public Employees Retirement System (CalPERS) established in 1932. CSDA Finance Corporation was established in 1988. CSDA established the Special District Leadership Foundation (SDLF) in 1999.
The California Special Districts Alliance, joining CSDA, SDRMA, and the CSDA Finance Corporation, was established in 2002. The California special districts map, with integration to the association database, was launched on the CSDA website in 2010. The launch of the new CSDA website and Online Communities was in 2018. This engagement tool allows individual members to ask questions, receive answers, share information, and download valuable content from within one platform.
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Celebrating 50 Years of Service: 1969-2019
LIFETIME ACHIEVEMENT
Award
David McMurchie Receives the 2019 CSDA William Hollingsworth Award of Excellence Each year, the CSDA Board of Directors considers whether to select a candidate for the William Hollingworth Award of Excellence. The criteria for the William Hollingsworth Award of Excellence includes a demonstration of significant leadership for special districts regionally or statewide over a long period of
time. It is CSDA’s lifetime achievement award. David McMurchie of McMurchie Law received the distinctive 2019 CSDA William Hollingsworth Award of Excellence during CSDA’s 50th anniversary celebration at the Annual Conference and Exhibitor Showcase in Anaheim in September. Since 1978, Mr. McMurchie has represented many types of special districts including community services, water, sanitation, fire protection, recreation and park, cemetery, mosquito abatement, and harbor and port districts. He has regularly provided training on legal developments and strategies through CSDA, as well as the Fire Districts Association of California, the California Association of Recreation and Park Districts, the California Association of Public Cemeteries, and other local government associations. Mr. McMurchie has served as general counsel for CSDA since 1985 and has provided guidance to both the association and to members through the association’s legal assistance program. Additionally, he has been involved in major statewide ballot initiatives affecting and benefiting CSDA members as well as providing critical guidance related to the use of public funds in these efforts. Mr. McMurchie has also worked with the Special District Risk Management Authority (SDRMA) providing counsel on workers’ compensation matters and analysis of legislation that could impact special districts. He has served as counsel to the CSDA Finance Corporation
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William Hollingsworth was one of the “founding fathers” of CSDA and an advocate for special districts in the Capitol from the 1970s to his retirement in 1994. Mr. Hollingsworth was instrumental in the formation of CSDA and helped to establish and perpetuate the finest tradition of public service and the special district form of government during his long career.
David McMurchie’s father, Don McMurchie, also received the William Hollingsworth Award of Excellence from CSDA in 2009.
Since 1978, Mr. McMurchie has represented many types of special districts including community services, water, sanitation, fire protection, recreation and park, cemetery, mosquito abatement, and harbor and port districts. California Special Districts • Nov-Dec 2019
AWARD
since its inception in 1988 and regularly reviews transaction documents for special district financings. Mr. McMurchie has always been willing to support and assist CSDA and its members, providing critical legal guidance on key issues. His practice emphasizes employment, contracting, and financing issues encountered by special districts and other local agencies. Mr. McMurchie is a member in good standing of the California State Bar and the U.S. District Court, Eastern District of California. Mr. McMurchie accepted the William Hollingsworth Award of Excellence with great honor and gratitude. His moving acceptance speech included the following excerpts. “I had the pleasure of working with Bill Hollingsworth when I first began working with CSDA in 1985. I got a chance to work with him closely when I was the general counsel and administrator for the Special District Workers Compensation Authority from 1991 to 2001 before it merged into SDMRA. He was a man of great principle, great commitment, great passion, great persistence, great humility and a wit that was very contagious. All of those things made him a very effective leader and effective consensus-builder. Mr. McMurchie stated, “In my 42year legal career, I have represented many non-profit corporations, non-profit
Volume 14 • Issue 6
associations of local government agencies, and many independent districts; but I have never witnessed the type of growth and sophistication that I have seen in the development of CSDA. In 1985, CSDA’s staff consisted of one part-time executive director whose full-time job was working as a lobbyist with the Nossaman law firm, one part-time contract lobbyist, Ralph Heim, myself, and the board of directors. Now, CSDA has 26 staff. They have four people in administration, three people in professional development, six people in advocacy and public affairs, six field coordinators, four members services staff, and three publications staff. “In the early days, the only education program we had were at the annual conference. The first conference I attended in 1986 had less than 100 people. We have 850 people at this conference. In 1985, CSDA had less than 100 members; we now have 1,200 members. Last year, we had seven different conferences in which 1,838 people participated. That is called outreach, that is called effective outreach, and that is called effective training.” “How did we do this?” Mr. McMurchie continued, “It’s each of you -whether you are board members, whether you are staff, whether you are representatives of member districts. You are the people who have made this happen. There are a couple of essential qualities that come to my mind as to what makes this organization so successful and so unlike any other. The first of those qualities is commitment. Every board member I’ve ever worked with for 34 years, every member representative I’ve interacted with over that period, every CSDA staff person I’ve worked with have all exuded these two qualities. Number one is commitment. They are not only committed to CSDA’s goals, but to the preservation and protection of democratic, self-governance at the local level and the belief that that is the fairest, most equitable, most efficient, and most transparent way to provide public services. “The other quality I think is crucial is the method by which everyone has
pursued that commitment. It is with respect and kindness. In 34 years of working with CSDA board members, I have never witnessed one episode of rancor r, acrimony, or personal agenda. It is because the people who comprise CSDA, you and your predecessors, have committed to this principle, that democratic self-governance must be pursued actively and protected, or it will be taken away. It’s not a political issue, it’s about maintaining the American way of life, American democracy. It’s bigger than all of us; it’s bigger than our agencies and our personal agendas. Mr. McMurchie closed by saying, “This organization has been successful creating a culture of excellence and achievement, based upon that founding principle of the necessity to preserve and protect democratic, self-governance at the local level; local solutions by local decision-makers for different localities; no mandates from state or higher level of government; and no one size fits all. Those have been our mantras for many years. We have established a culture where those norms govern our interactions as an organization with each other, our interactions with the Legislature, other third parties, and local government agencies that we work with on various coalitions. That culture is basically a guarantee of success for an organization like CSDA because those norms exist regardless of the people who are serving at any point of time. That culture orients the new people as they come into the organization; that culture also becomes apparent to the Legislators, and to other parties that we interact with because they see that we put our personal differences aside in favor of this governing principle. That culture demonstrates our strength, our determination, and our power to achieve our goals both to Legislators and to members of the public. For those reasons, I am overwhelmed to receive this award; I am deeply humbled by it and eternally grateful. Thank you very much.” To view the video of David McMurchie’s full speech accepting the 2019 William Hollingsworth Award of Excellence, go to csda.net.
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LEGAL BRIEF
Preventing Workplace Violence How California Public Entities Can Protect Their Employees Through Workplace Violence Restraining Orders By Charles G. Bakaly IV, Associate, Richards, Watson & Gershon
Acts of workplace violence are on the rise throughout the United States. In many cases, the perpetrators intentionally target public entities and their employees. One certainly cannot forget the mass shootings at the Inland Regional Center in San Bernardino in December 2015 and the Virginia Beach Municipal Center in May 2019. California public entities must take proactive measures to protect their employees from unlawful violence and credible threats of violence at the workplace. One of these proactive measures involves petitioning the courts for what is commonly referred to as a workplace violence restraining order (“WVRO”). In 1994, the California State Legislature enacted the Workplace Violence Safety Act, which is codified as section 527.8 of the California Code of Civil Procedure (“Section 527.8”). According to its authors, the express intent of Section 527.8 was 24
to address the “growing phenomenon” of workplace violence in California. Section 527.8 was signed into law for the purpose of enabling public and private sector employers to prevent violence against their employees by petitioning the courts for injunction relief.
Section 527.8 allows an employer to petition the court for a temporary restraining order (“TRO”) and/or WVRO on behalf of an employee who has suffered unlawful violence and/ or a credible threat of violence at the workplace. The statute defines “employer” as a federal agency, the state, a state agency, a city, county, or district, and a private, public, or quasi-public corporation, or any public agency thereof or therein. “Unlawful violence” includes assault, battery, or stalking, while a “credible threat of violence” is a knowing and willful statement or course of conduct that serves no legitimate purpose and that would place a reasonable person in fear for his or her safety. An employer who has reason to believe that an employee has suffered unlawful violence and/or a credible threat of violence at the workplace may petition the court for a TRO and/or California Special Districts • Nov-Dec 2019
WVRO against the respondent (i.e., the offending person). If a request for a TRO is made, the court must either grant or deny the request on the same day that the petition is filed. A TRO may be issued if the petition provides reasonable proof that an employee has suffered unlawful violence and/or a credible threat of violence, and that great or irreparable harm would result to the employee if the TRO is not issued. Once the petition is filed, and regardless of whether a request for a TRO was granted or denied, the court will set the hearing for the petition to take place within 21 days. If a TRO was issued on the date of filing, the terms therein will remain in effect until the hearing date. Before the hearing, the respondent may file a response to the petition that either explains, excuses, justifies, or denies the alleged unlawful violence or credible threat of violence. If, at the conclusion of the hearing, the court finds by clear and convincing evidence that the respondent engaged in unlawful violence or made a credible threat of violence against the employee, a WVRO shall be issued for a period of up to three years. An issued WVRO will contain a number of personal conduct and stay-away orders, which may be tailored by the court to the specific facts of the case. For example, the restrained individual may be prohibited from contacting the protected employee in any way and must also stay at least 100 yards away from the employee and his or her workplace. The WVRO must also contain a mandatory firearms and ammunition prohibition. Further, if the restrained person intentionally disobeys any of the Volume 14 • Issue 6
orders within the WVRO, he or she may face criminal prosecution pursuant to section 273.6 of the California Penal Code. A number of scenarios may lead to a public agency employer’s WVRO petition. For example, in 2018 a city in Riverside County obtained a WVRO against an individual who physically assaulted two young female employees at a public library. In 2019, a city in Los Angeles County obtained a WVRO against its elected City Clerk after
▪
numerous credible threats of violence were made against multiple employees at City Hall. Section 527.8 supports the explicit public policy which requires employers to both provide a safe and secure workplace and also to take reasonable steps to address credible threats of violence in the workplace. Petitioning the court for a TRO and/or WVRO is an important, proactive measure that should be utilized by public entities to comply with public policy and, most importantly, to protect their employees.
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FEATURE
USDA Offers Financing Solutions for Special Districts By Sarah Marquart, Public Affairs Specialist, USDA Rural Development
The mention of the U.S. Department of Agriculture (USDA) may conjure up images of food safety inspectors and grades of beef, but there is much more to the department than that. USDA Rural Development may not be as well-known, but it is the lead federal agency serving the needs of rural America. Rural Development maintains a nearly $228 billion portfolio and offers more than 40 programs to support investments in housing, business and economic development, broadband, infrastructure, and essential community services.
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Each fiscal year, an average of $1 billion is injected in California’s rural communities to support these needs. “USDA is committed to long-term rural prosperity, which includes meeting the critical needs of communities,” said USDA Rural Development California State Director Kim Dolbow Vann. “Whether through financial investments or technical assistance we have a bevy of resources available to assist because when our rural communities thrive, all of America thrives.”
California Special Districts • Nov-Dec 2019
Essential Services
One of the agency’s most flexible financial tools available to special districts is the Community Facilities Loan and Grant program. Through this program, Rural Development can support more than 100 different types of projects including healthcare, education, transportation, public safety and more. “It’s sometimes easier to talk about what we can’t do with our Community Facilities program, rather than what we can do,” said USDA Rural Development California Community Programs Director Pete Yribarren. “This program can help special districts, including irrigation districts, with just about any project they might be able to think of – big or small. It’s exciting when you think about all the possibilities.” Nationally, Rural Development has approximately $2.5 billion available in Community Facilities funds, and approximately $60 million is set aside for California. Projects must be in, and primarily serve, rural areas with a population of 20,000 or fewer. Applications are accepted on a year-round basis, and low-interest loans with 40-year terms can be combined with other funding sources. The rural community of Valley Springs nestled in the Sierra Nevada foothills of Calaveras County is now home to a 10,000-square-foot health clinic. Opened in October 2019,
the clinic is expected to help 24,000 patients annually with primary and walk-in care services. Mark Twain Health Care District was able to purchase the land and build the clinic with support from a $7.5 million Community Facilities loan. Community Facilities Grants may be also be available to help with projects. Although often much smaller investments, the impact is still great. In Glenn County, the Hamilton City Fire Protection District purchased enough personal protection equipment to outfit their entire force of volunteer firefighters with help from a $26,200 Community Facilities Grant. And a $31,393 Community Facilities Grant to Calipatria Unified School District in Imperial County was instrumental in providing needed computer equipment for students at the middle school. Interested applicants are encouraged to contact their local Rural Development office early in the process. Community Programs staff are available to help answer questions and determine feasibility and eligibility. “We have a great team of dedicated staff at Rural Development who keep things moving no matter what questions might come up,” said Vann. “It’s incredible to witness a project go from a simple inquiry to completion!” continued on page 28
Legal and financial challenges impede the building and maintenance of critical infrastructure, and can be as complicated as the design plans themselves. To complete projects successfully and on budget, Special Districts turn to BB&K for all aspects of public contracting — from planning and property acquisition through procurement, construction and project closeout.
www.BBKlaw.com Offices throughout California and in Washington, D.C.
Volume 14 • Issue 6
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Infrastructure
Infrastructure needs are vital across rural California, and Rural Development has funding available to help special districts construct or improve water, sewer, solid waste disposal, and storm wastewater drainage systems. Additional support is also available to assist special districts recovering from disasters that have impacted the quality or quantity of drinking water. When a wildfire in Shasta County destroyed hundreds of homes in both Shasta Community Services District and nearby Keswick County Service Area, Rural Development assisted with a $788,000 Emergency Community Water Assistance Grant. Funds helped construct a new pipeline to interconnect the two water systems and ensure safe water delivery to the remaining homes. Rural Development’s Water and Environmental programs are available in rural communities with populations of 10,000 or fewer. In total, Rural Development has more than $2.9 billion available in funding on an annual basis, of which approximately $45 million is set-aside for California projects.
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CSDA Member
Historically low-interest rates and 40-year terms help create an affordable financing solution for eligible special districts. Rural Development funds can also be leveraged with other sources. “If you need financing to support an infrastructure project, there isn’t a better time to get it started than now,” said Yribarren. “Not only are our rates and terms favorable, but you’ll be pleased at how quickly the whole process moves.” On average, Rural Development can fund a project 45 to 60 days after a completed application is received. However, in some instances, the process can move much faster. Poplar Community Services District in Tulare County received a combined $1.85 million in Water and Waste Disposal Loan and Grant funds to replace one of their wells. It was only one week from the time Rural Development received a complete application to funding the project. And the timeline leading up to that was equally impressive, taking less than 60 days from the time preliminary engineering and environmental reports were submitted. Applying for Water and Environmental programs has never been easier using USDA’s online application tool, RD Apply. Accessible from any phone, tablet or computer, RD Apply eliminates the need to mail in a paper application, a process that can be cumbersome and timely. With RD Apply, you can create an application, upload attachments, sign certifications, and draw service areas, to name a few features. The system also provides an application questionnaire. Each answer provided by the applicant generates required documents and fields to ensure all the necessary information is attached. Rural Development staff are available to assist with the application process at local service centers. Additionally, the agency has contracted with California Rural Water Association (CRWA) to offer additional technical assistance. Circuit Riders such as CRWA can assist special districts statewide with the RD Apply application process through their free services. “Our most rural communities are often those with the greatest need for our programs, and we want to make it as convenient as possible for them to apply for funding,” said Vann. “RD Apply is an excellent tool for our applicants to easily access their application at any time, and clearly view the status of it.” For complete program details and to learn more about Rural Development visit us online at www.rd.usda.gov/ca or find us on Twitter @CaliforniaRD. USDA is an equal opportunity provider, employer and lender.
California Special Districts • Nov-Dec 2019
2019 BOARD SECRETARY/CLERK CONFERENCE SPEAKER
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, LLP www.awattorneys.com
Climatec www.climatec.com
Nossaman, LLP www.nossaman.com
AllPaid, Inc dba GovPayNet www.govpaynet.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, Inc. www.smartwatt.com
Burke, Williams & Sorensen, LLP www.bwslaw.com
Hanson Bridgett, LLP www.hansonbridgett.com
SoCalGas www.socalgas.com
California CAD Solutions, Inc. www.calcad.com
Kutak Rock, LLP www.kutakrock.com
Streamline www.getstreamline.com
CalPERS Health Program www.calpers.ca.gov
Laserfiche www.laserfiche.com
Tyler Technologies www.tylertech.com
Caselle www.caselle.com
About SDRMA Formed in 1986, Special District Risk Management Authority (SDRMA) serves over 660 California public agency members. SDRMA provides workers’ compensation and property/liability coverage protection, claims management, risk management services, and loss prevention programs to meet the complex needs of California public agencies. SDRMA offers opportunities to help their members reduce their annual coverage costs, such as multi-program discounts, credit incentive points, and loss prevention allowance funds. SDRMA also offers a health benefits program that can be tailored to meet an agency’s specific needs. To learn more about SDRMA, please visit www.sdrma.org.
Volume 14 • Issue 6
Look for opportunities to earn SDRMA Credit Incentive Points by attending CSDA workshops and webinars – many offered free to SDRMA members!
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CSDA 2019 AWARD FOR EXCEPTIONAL PUBLIC OUTREACH & ADVOCACY – SMALL DISTRICT
Stege Sanitary District and KIDS for the BAY Inspire Students to Become Environmentally Aware By Rex Delizo, P.E., District Manager/Engineer, Stege Sanitary District
and local governmental agencies, foundations, and local donors, KIDS for the BAY, teaches students to be good stewards of their environment. Hands-on science and nature field trips are a big part of their mission to inspire young students to become environmentally aware. Whether students are getting their hands dirty with a striped bass, using satellite maps to create their own estuary model, or cleaning up trash from the beach, students learn that they share responsibility for their environment and that everyone has a right to a clean and healthy watershed. Students learn how their school neighborhood, local creeks, the San Francisco Bay, and the Pacific Ocean are all interconnected and that they have a duty to help protect the health of San Francisco Bay. In addition to empowering students to be good stewards of their watershed, KIDS for the BAY provides professional training and resources to teachers, so they can continue to lead future Students learn to keep FOG out of drains. classes in learning the importance of environmental stewardship. The Stege Sanitary District has a long history of public n 2009, District Board Member Al Miller attended outreach. In addition to printing a newsletter, maintaining a an El Cerrito City Council meeting where Mandi website, and participating in civic events, directors and staff Billinge, Executive Director and Founder of KIDS often speak to local organizations about what the district does for the BAY, gave a presentation of her program, which and how it is important to their daily lives. So, when Director the City of El Cerrito sponsors annually. KIDS for the BAY Miller heard Ms. Billinge speak, he was interested in the idea is a non-profit organization founded in 1992 that brings a of the district also sponsoring KIDS for the BAY. He thought hands-on approach to teaching environmental awareness to the sponsorship would be a good fit because of the district’s elementary school students throughout the San Francisco commitment to both the environment and to the community. Bay Area. Through the sponsorship of a network of county
I
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California Special Districts • Nov-Dec 2019
COMMUNITY CONNECTIONS
They learn about the importance of keeping Fats, Oils, and Grease (FOG) out of the sanitary sewer system. Students brainstorm different types of foods that contain FOG, learn how FOG can collect in pipes and cause sanitary sewer system back-ups and overflows, and learn how to dispose of FOG safely to prevent backups and overflows.
Students share what they learn with their schools.
In particular, he was impressed by the core principle of the organization: students would not only learn about their environment and their role in protecting it, they would also teach what they learned. Students engaged in the KIDS for the BAY program bring their new knowledge home to their families and their community. At the completion of the program, students hold an assembly for the whole school in which they give an environmental awareness presentation accompanied by the graphs and posters they made. While considering sponsoring KIDS for the BAY, the Stege Sanitary District realized that their program did not discuss wastewater. Sewer overflows not only cost money to clean up, when untreated wastewater gets into nearby storm drains and creeks, the health of San Francisco Bay is threatened. The district felt that students should learn about the sanitary sewer system, how the sewer system is different than the storm drain system, and that by being aware of what they flush down the toilet or pour down the drain, they can have an impact on the health of San Volume 14 • Issue 6
Francisco Bay. The district approached Ms. Billinge with an offer to sponsor KIDS for the BAY if such a component was added to their program. KIDS for the BAY readily agreed to develop and add a wastewater component to their curriculum and by unanimous consent, the Stege Sanitary District Board of Directors approved support of KIDS for the BAY.
Now, KIDS for the BAY students throughout the Bay Area learn about the importance of preventing sanitary sewer system back-ups, the problems caused by pollution entering the bay through the sanitary sewer system, and how to reduce this pollution. They learn about the importance of keeping continued on page 32
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COMMUNITY CONNECTIONS
Fats, Oils, and Grease (FOG) out of the sanitary sewer system. Students brainstorm different types of foods that contain FOG, learn how FOG can collect in pipes and cause sanitary sewer system back-ups and overflows, and learn how to dispose of FOG safely to prevent back-ups and overflows. Students learn how the sanitary sewer system and the storm drain system are normally separate systems, but when an overflow occurs, sewage water can enter the storm drain system and cause serious pollution problems. KIDS for the BAY students learn that “flushable” wipes are not actually flushable, that they cause clogging and back-up problems when flushed down the toilet. Students are taught that these wipes should, instead, be
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disposed of in the garbage. Students learn that putting prescription medicine, household chemicals and automotive fluids into the sanitary sewer system can introduce harmful chemicals to the bay. They learn that these items should not be poured down the drain, but should be taken to local disposal sites. KIDS for the BAY students take home free food scrapers and educate their families to use scrapers to remove FOG from pots and pans after cooking and dispose of FOG in the garbage can. They complete takehome interviews and make pledges with family members to change their behaviors at home to reduce sanitary sewer system pollution. Based on the success of this partnership and the enthusiastic
participation of the schools involved, the District has continued its sponsorship. For the past ten years, through its sponsorship of KIDS for the BAY, the Stege Sanitary District has annually supported students and teachers in learning about their environment. Over 600 students have discovered that a healthy sewer system helps our creeks and our bay. The District plans to continue sponsoring KIDS for the BAY and inspiring a new generation of environmentalists with an increased awareness of watershed stewardship. Since learning that the Stege Sanitary District won the 2019 CSDA Exceptional Public Outreach & Advocacy Award, other districts in the Bay Area are considering sponsorship of KIDS for the BAY.
California Special Districts • Nov-Dec 2019
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 6
•
t: 916.231.2909
•
www.sdlf.org 33
MANAGERS CORNER
THE PERSON IN THE HOW THE BOARD SECRETARY/CLERK CAN SUPPORT AN EFFECTIVE BOARD, MANAGER, AND STAFF TEAM
By Martin Rauch, Senior Consultant, Rauch Communication Consultants, and Tawnia Pett, Executive Assistant/Clerk of the Board, Orange County Mosquito and Vector Control District
T
he role of the board secretary/clerk often goes beyond the basics found in the formal job description. In fact, this person is often at the crucial center of many interactions between the board, manager, and staff and can play a vital role in facilitating productive solutions. As a board secretary/clerk, you may not have anticipated a role in things like internal board conflicts, ineffective meetings, and micromanagement of staff. But you can play a crucial part in resolving these and other issues.
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Concrete Ideas on How You Can Productively Support Solutions. Defining your role begins with acknowledging that you are in the middle. You may not have direct authority, but you will probably have opportunities to suggest solutions, share ideas, and generally support the manager and perhaps the board as they seek out and work toward solutions.
California Special Districts • Nov-Dec 2019
Here are some concrete best practices you can promote:
Develop Reports and Agenda Packets that Engage, Assist with Deliberation and Aid in Monitoring. As a board secretary/clerk, you can encourage the agenda structure and content be adjusted if needed to help the board to deliberate, clarify and separate the need-to-knows and niceto-knows, identify options, and frame areas for debate and deliberation. Also, deliver the agenda packets early enough for the board to review them. Consider moving to digital agenda packets if you haven’t already. Manager Performance Evaluation. If your district is not following a regular and effective manager performance evaluation, you may be able to encourage a change. Many boards feel uncomfortable with the manager’s performance evaluation and try to unload it on the president or a committee. Often, they prefer mechanical, numerical methods that avoid direct personal communication. A poor process, or no process at all, can damage the boardmanager working relationship. It also robs the manager of an opportunity to understand their situation and receive valuable direction from the board. There are many ways to evaluate a manager, but here are a few minimum requirements: the review should be held annually in an informal closed session, and the entire board should participate. The purpose, content, and timing of the evaluation should be agreed upon in advance. If there is a numerical evaluation, it should not form the core of the review—simply saying the manager has moved from 6.8 to 7.6 in some category is not very helpful. An effective evaluation should also include a nuanced conversation and input from the board and a robust discussion with the manager. In addition to the core responsibilities, the board secretary/clerk can significantly contribute to resolving complex board, manager, and staff challenges—all while operating from the middle.
Improve Board Communication. When there are complex issues, you can suggest to the board try a workshop approach to allow more time for discussion. In other cases, it may be appropriate to refer the issue to a committee or take a tour. You can help by sending frequent emails, following up with calls, and providing information packets. Deepen Directors’ Knowledge Through Engagement. Keep directors informed about opportunities to go on ridealongs with staff to understand the district’s work in the community and participate in conferences and trainings. Your directors can benefit from industry-specific education, training on how effective boards operate, as well as mandatory training on ethics and other issues. Promote Focus on Policies. Are board policies up-to-date and accessible to all? Does the board rely on these policies to guide their actions? When a board is struggling to work well together or begins to micromanage staff, the board should be encouraged to turn to policies for guidance and then to have the discipline to enforce the policies. Support a Robust New Director Orientation. New directors have reported that it can take a year or two before they fully understand their role. A thorough orientation can reduce that learning curve. In most cases we’ve seen the manager takes the lead in new director orientations, which is fine. But the new directors are joining the board, not the staff. Board secretary / clerks can work with the manager to encourage the board to play a role in welcoming and orienting new directors. Some elements of a robust orientation include: meeting the staff and directors; reviewing the job descriptions of directors, officers, and the president; receiving an introduction to legal issues, board policies, the Brown Act, etc.; reviewing financial issues and the budget; learning key information about the district mission and history; touring facilities; and sitting in on Board meetings. Encourage Long-Term Planning. You may be able to point out that a key Districts | Cities | States | Nossaman responsibility for every board is to set direction through a long-range or strategic For 75 years, Nossaman has partnered with public, private, and governmental agencies to plan. This planning helps clarify priorities, provide customized legal strategies. Nossaman is a full-service public agency law firm based and for everyone from the board to the in California. Our attorneys provide counsel to special districts in areas such as Water, Public Finance, Public Agency Law, Environment, Land Use, Infrastructure, Employment, Data Protection, staff to the public to understand where Insurance Recovery, Public Policy, and Eminent Domain. What solutions are you seeking? the district is headed, what its goals and priorities are, and the programs and projects needed to achieve it. Volume 14 • Issue 6
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TAKE ACTION
GOVERNOR NEWSOM’S STATE BUDGET PROPOSAL DUE JANUARY 10 As most of the Capitol community enjoys winter holidays, Governor Gavin Newsom and the California Department of Finance will be piecing together the Governor’s proposed State Budget for Fiscal Year 2020-2021. California’s Constitution requires the Governor propose a budget by January 10 of each year.
TAKE ACTION SEASONS OF ADVOCACY: WINTER • Set up a meeting or tour for your local news reporter or editor. • Request a “meet and greet” with each newly-elected local legislator in areas experiencing special elections. • Sign up for your local legislators’ eNewsletters and social media and add them to yours.
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While many stakeholders, including the Governor’s Office, continue to caution California to prepare for the next recession, the Legislative Analyst’s Office (LAO) in its recent California’s Fiscal Outlook report once again predicted a State revenue surplus. At $7 billion, the projected surplus is lower than last year’s but still sizeable. The LAO advises the Legislature to dedicate most, if not all, of the projected budget surplus to reserve deposits and one-time purposes; it states, “There are signals suggesting the economy could be weaker than our 2020-21 outlook currently assumes.” Of keen interest to special districts, the LAO projects statewide local property tax revenue will increase 5.7 percent increase over the current budget year.
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 with your public affairs field coordinator.
California Special Districts • Nov-Dec 2019
Concerns Grow Over Public Safety Power Shutoffs On November 18, the California Senate Committee on Energy, Utilities, and Communications held an oversight hearing on lessons learned from the Public Safety Power Shutoff (PSPS) events that have plagued the State and created fiscal, operational, and quality of life issues in affected regions. The agenda included chief executives from investor-owned utilities San Diego Gas & Electric, Southern California Edison, and Pacific Gas and Electric; State oversight officers from the Governor’s Office, Office of Emergency Services, Government Operations Agency, GO-Biz, and the California Public Utilities Commission; and panelists representing impacts on California communities, including: employee representatives, independent living centers, healthcare, business owners, food banks, schools, counties, cities, and special districts. The committee questioned the energy executives at length and shared the frustrations of their constituents, making it clear the status quo is an unacceptable baseline. In testimony after testimony, witnesses before the committee spoke to the adverse impacts of PSPS events on the public, the associated financial loss, and the increased operational and safety risks created by the preventative measure.
Understanding the Brown Act Workshop Public agency board members, and the employees who support them, must understand the complex public meeting and transparency laws established by the Brown Act. In this workshop, we will walk through practical scenarios to identify the common pitfalls, and best practices in Brown Act compliance. Topics include agendas, closed sessions, administrative decisions, litigation and settlements. As part of CSDA’s District NetWorks Workshop Series, these workshops are only $25 for CSDA members and include lunch sponsored by the California Special Districts Alliance.
• February 11, 2020 – Beaumont, CA (Southern Network) • February 13, 2020 – Cotati, CA (Bay Area Network) • February 26, 2020 – Fremont, CA (Coastal Network) • March 19, 2020 – Simi Valley, CA (Sierra Network) • March 26, 2020 – Fresno, CA (Central Network) • May 28, 2020 – McKinleyville, CA (Northern Network)
Volume 14 • Issue 6
David Pedersen, General Manager of Las Virgenes Municipal Water District testified to the committee from a special district perspective regarding his district’s experiences the devastating Woolsey Fire that burned two-thirds of their service area, their agency’s operational challenges experienced in PSPS events, and the consequences of the service interruption threatened by them. In his remarks, he made it very clear to the committee that independent special districts are not eligible for current financial assistance and need to be included in funding moving forward so that they can continue to provide reliable critical services to Californians in times of need. CSDA Legislative Representative Alyssa Silhi testified under public comment at the close of the hearing, which is anticipated to be one of many more to come. Among other emergency preparedness and climate resiliency efforts, CSDA is advocating for special districts to receive their fair share of State funding, along with cities, counties, and tribal governments, to mitigate the millions of dollars in costs incurred due to the power shutoffs.
Little Hoover Chair and State Senator Speak at First Special District Climate Adaptation Roundtable Over 50 special district officials joined together for a daylong Special District Climate Adaptation Roundtable at Tilden Regional Park in Berkeley. CSDA and its members joined with state agencies, regional coalitions, and think tanks to discuss individual approaches to climate adaptation planning. Little Hoover Commission Chair Pedro Nava and State Senator Nancy Skinner offered comments to the audience between sessions from three expert panels. It was especially relevant for Little Hoover Commission Chair Nava to provide the welcome remarks. While Chair of the Commission, Mr. Nava recommended in an August 2017 Commission report that special districts work with state agencies to not only communicate climate adaptation experiences, but to also tell their story to the public-at-large. The Special District Climate Adaptation Roundtable marked a milestone in CSDA’s response to related recommendations in the report. In her comments, Senator Skinner acknowledged that special districts are on the front lines of climate adaptation. She reflected on many of the themes throughout the panels, including the need for funding for disadvantaged communities, the importance of planning that considers housing with transportation and open space, and the health benefits that the environment provides a community. A copy of the slides presented are currently available at csda.net. 37
MANAGING RISK
Harassment Prevention
TRAINING G
For additional information, please contact SDRMA Chief Risk Officer Dennis Timoney at dtimoney@sdrma.org.
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overnor Gavin Newsom recently signed Senate Bill 778 into law, extending by one year the deadline for employers to implement new harassment prevention training requirements. The California Fair Employment and Housing Act (FEHA) makes specified employment practices unlawful, including the harassment of an employee directly by the employer or indirectly by agents of the employer with the employer’s knowledge. Under existing law, the Department of Fair Employment and Housing administers these provisions. Existing law, by January 1, 2020, requires an employer with five or more employees to provide at least two hours of classroom or other effective interactive training and education regarding sexual harassment to all supervisory employees and at least one hour of classroom or other effective
interactive training and education regarding sexual harassment to all nonsupervisory employees in California within six months of their assumption of a position. Existing law also specifies that an employer who has provided this training to an employee after January 1, 2019, is not required to provide sexual harassment training and education by the January 1, 2020, deadline. This bill would instead require an employer with five or more employees to provide the abovedescribed training and education by January 1, 2021, and thereafter once every two years. The bill would require new nonsupervisory employees to be provided the training within six months of hire and new supervisory employees to be provided the training within six months of the assumption of a supervisory position. The bill would also specify that an California Special Districts • Nov-Dec 2019
employer who has provided this training and education in 2019 is not required to provide it again until two years thereafter. The bill would make other related changes to those provisions requiring sexual harassment training. This bill would declare that it is to take effect immediately as an urgency statute. What Are the New Training Requirements? By January 1, 2021, California employers with five or more employees must provide: • At least two hours of harassment prevention training to all supervisory employees once every two years • At least one hour of harassment prevention training to all nonsupervisory employees once every two years • At least two hours of harassment prevention training to new supervisory employees within six months after assuming the supervisory position • At least one hour of harassment prevention training to new nonsupervisory employees within six months after the hire date continued on page 40
2019 SAFETY/LOSS PREVENTION AWARD RECIPIENTS At the 2019 CSDA Annual Conference and Exhibitor Showcase held in Anaheim, the SDRMA Board of Directors awarded the following SDRMA members the Earl F. Sayre Excellence in Safety Award and McMurchie Excellence in Safety Award.
Earl F. Sayre Excellence in Safety Award – Property/Liability Program: • North County Cemetery District (small member category) • Templeton Community Services District (large member category) McMurchie Excellence in Safety Award – Workers’ Compensation Program: • Fresno Westside Mosquito Abatement District (small member category) • West Kern Water District (large member category) (pictured above) Congratulations to the award recipients! For additional information on the safety awards, please contact Dennis Timoney, SDRMA Chief Risk Officer.
SDRMA Board and Staff Officers
Staff
MIKE SCHEAFER, PRESIDENT Costa Mesa Sanitary District
LAURA S. GILL, ICMA-CM, ARM, Chief Executive Officer C. PAUL FRYDENDAL, CPA, Chief Operating Officer DENNIS TIMONEY, ARM, Chief Risk Officer ELLEN DOUGHTY, ARM, Chief Member Services Officer HEATHER THOMSON, CPA, Chief Financial Officer DEBBIE YOKOTA, AIC, Claims Manager WENDY TUCKER, Member Services Manager 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 JACK BUCHANAN, Accounting Technician HEIDI SINGER, Claims Examiner II TERESA GUILLEN, Member Services Specialist I ASHLEY FLORES, Management Analyst/Board Clerk
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, Mojave Desert Air Quality Management District ED GRAY 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 Actuarial CHARICE HUNTLEY, River City Bank 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 6
Special District Risk Management Authority 1112 I Street, Suite 300, Sacramento, CA 95814 tel: 800.537.7790 • www.sdrma.org
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Beginning January 1, 2020, at least one hour (non-supervisory positions) or two hours (supervisory positions) of harassment prevention training to seasonal, temporary, or other employees hired to work for less than six months, by the time whichever event occurs first — 30 calendar days after the hire date or 100 hours worked. What Should Employers Do Now To Prepare? Though the one-year extension grants temporary relief, all employers are required to implement training of their supervisors and employees during calendar year 2020. The new legislation also clarifies that employees who completed the requisite harassment prevention training in 2019 are not required to receive refresher training courses until 2021. The myriad of new California anti-harassment laws make clear that employers must take affirmative steps to prevent harassment in the workplace and failure to do so can lead to increased liability. Employers should not simply “check the box” when it comes to training. Instead, training must meet the needs of each employer’s unique workplace, as well as the type of employees being trained.
INDEPENDENT CONTRACTOR OR EMPLOYEE? Existing law, as established in the case of Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903 (Dynamex), creates a presumption that a worker who performs services for a hirer is an employee for purposes of claims for wages and benefits arising under wage orders issued by the Industrial Welfare Commission. Existing law requires a 3-part test, commonly known as the “ABC” test, to establish that a worker is an independent contractor for those purposes. Existing law, for purposes of unemployment insurance provisions, requires employers to make contributions with respect to unemployment insurance and disability insurance from the wages paid to their employees. Existing law defines “employee” for those purposes to include, among other individuals, any individual who, under the usual common law rules applicable in determining the employeremployee relationship, has the status of an employee.
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This bill would also redefine the definition of “employee” described above, for purposes of unemployment insurance provisions, to include an individual providing labor or services for remuneration who has the status of an employee rather than an independent contractor, unless the hiring entity demonstrates that the individual meets all of specified conditions, including that the individual performs work that is outside the usual course of the hiring entity’s business. Because this bill would increase the categories of individuals eligible to receive benefits from, and thus would result in additional moneys being deposited into, the Unemployment Fund, a continuously appropriated fund, the bill would make an appropriation. The bill would state that addition of the provision to the Labor Code does not constitute a change in, but is declaratory of, existing law with regard to violations of the Labor Code relating to wage orders of the Industrial Welfare Commission. The bill would also state that specified Labor Code provisions of the bill apply retroactively to existing claims and actions to the maximum extent permitted by law while other provisions apply to work performed on or after January 1, 2020. The bill would additionally provide that the bill’s provisions do not permit an employer to reclassify an individual who was an employee on January 1, 2019, to an independent contractor due to the bill’s enactment.
California Special Districts • Nov-Dec 2019
DISTRICTS MAKE THE DIFFERENCE
Special Districts Offer Students a Pathway to Public Service
There is no better way to learn about special districts than to learn about the professionals that make them run and how to join them!
D
istricts Make the Difference, a public outreach campaign sponsored by CSDA, has launched a new ‘Careers’ webpage that provides students seeking a career in public service with valuable tools and information. It can be viewed online at DistrictsMakeTheDifference.org/ careers. The new webpage complements a new internship portal created by CSDA at careers.csda.net featuring opportunities for students to build the skillsets they will need to begin a career after graduation. Students may easily enter themselves into a list of available students seeking internships so employers can find them. They can also apply directly or just browse a growing list of internships.
As part of the launch of the new page, CSDA also unveiled a new video giving students a taste of what it’s like to work for a special district. The goal of Districts Make the Difference is to raise public awareness and understanding about special districts so that the public can best engage and participate in the local governments that provide their essential services and infrastructure. There is no better way to learn about special districts than to learn about the professionals that make them run and how to join them! Whether you are a student looking to launch your career or an employer seeking the next generation workforce visit DistrictsMakeTheDifference.org today.
Did You Know? Districts Make the Difference has a Facebook and Twitter account and we are always looking for interesting articles and events to feature. Make sure to follow Districts Make the Difference at www.facebook.com/yourCAdistricts and www.twitter.com/yourCAdistricts so we can see what your district is doing.
Volume 14 • Issue 6
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MONEY MATTERS
ARE YOUR DISTRICT’S DEPOSITS SECURE? By James Marta, CPA, CGMA, ARPM, James Marta & Company LLP
Is your District’s bank balance higher than the FDIC’s $250,000 limit? If you are a government, you may be eligible for your deposits to be collateralized. Collateralizing your district’s deposits safeguards them in the event of an economic crisis or a banking institution filing for bankruptcy. While the FDIC insures against the unlikely event of a bank failure, their coverage is capped at $250,000. So, if your special district or JPA has $500,000 in deposits in a bank that fails, half of the money may be disbursed at a fraction of its original value, at an unknown point in the future. In this event, collateralization provides a path to recovery.
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Put simply, collateralization is a depositor’s guarantee of an asset (e.g. securities, bonds, letters of credit) to secure a deposit. The Collateralization Agreement is the legal document that defines the collateral and terms. Collateralization rules can be complex. For example the California State Treasurer code states, “To be eligible to receive and retain demand or time deposits, a bank shall deposit with the Treasurer as security for such deposits, securities specified in Section 16522, and approved by the Treasurer, in an amount in value at least 10 percent in excess of the amount deposited with the bank.” (California State Treasurer, Bank, Savings & Loan, and Credit Union Deposit Law, Chapter 4, Article 2. Security for Deposits. Section 16521)
California Special Districts • Nov-Dec 2019
While this excerpt highlights one aspect of the statute, it’s important to understand how the rules governing collateralization apply to your organization. Rules may limit the type of political subdivisions that can invest funds; the depositor’s capital-to-asset ratio; where deposits can occur (e.g. in state, out of state); the type of institution (e.g. bank, credit union); the percentage of your total deposits that can be held by a single entity; eligible types of collateral; and more. In addition, there may be special rules for public bonds. It is your responsibility to understand your state’s rules and what they mean to your district. Collateralization doesn’t replace good judgement in selecting your banking institution. In general, the institution should have sufficient assets to absorb a “big hit.” Further, you must regularly monitor the pledge for issues such as overcollateralization (higher fees) or under collateralization (greater risk). Ask your third-part custodian of the collateral for regular reports. To get started, speak with your representative at bank headquarters to initiate the collateralization agreement. Once you obtain the agreement, file a copy with your business continuity documents for ready access in the event of a disaster.
Best Practices for Collateralization • Obtain a written Collateralization Agreement from the Depositor. • File the Agreement with your critical business continuity documents. • Read and understand your state laws to ensure pledged collateral meets the state statute. • If collateral substitutions become necessary, make sure that they meet the requirements of the original Collateralization Agreement. • Pledged collateral should be held by an independent, third-party custodian. • Require regular reporting from the third-party custodian.
CSDAFC Board and Staff Officers JO MACKENZIE, PRESIDENT, Vista Irrigation District VINCE FERRANTE, VICE PRESIDENT, Moss Landing Harbor District
Tax-Exempt Lease/ Purchase Financing
GLENN LAZOF, TREASURER, Regional Government Services Authority MATTHEW MCCUE, SECRETARY, Mission Springs Water District
Members of the Board GEORGE EMERSON, Goleta Sanitary District PAUL HUGHES, SDA, South Tahoe Public Utilities 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, Chief Executive Officer 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
In 2019, the CSDA Finance Corporation facilitated financings for a wide variety of projects and purchases: Cambria Community Healthcare District Ambulance purchase Kensington Police Protection and CSD Building renovation Orangevale Recreation and Park District Property acquisition Stallion Springs Community Services District Well drilling West Point Fire Protection District Fire truck
Whatever your financing needs, make the CSDA Finance Corporation your first call. We’re here to help!
CSDA F C
Volume 14 • Issue 6
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BUSINESS DIRECTORY
GET MORE VALUE FROM YOUR AUDIT
CHOOSE WITH CONFIDENCE.
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California Special Districts • Nov-Dec 2019
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Volume 14 • Issue 6
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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 • Nov-Dec 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 6
Trusted Risk Management
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800.537.7790
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www.sdrma.org
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