Manager’s Corner

from 2021 CA Special District November - December

by California Special Districts Association

Award Winning District Uses Data and Technology to Address Water Woes

By Nikita Sinha, Program Manager, Institute for Local Government

“Water is our backbone. With climate change, the conditions are changing, and we need to look to innovate as much as possible”

2021 BEACON LEADERSHIP IN CLIMATE ACTION AND ADAPTATION AWARD

For over 10 years, the Institute for Local Government’s (ILG) Beacon Program has been recognizing local governments for voluntary efforts to build more vibrant and sustainable communities. This year, ILG awarded the Beacon Award for Leadership in Climate Resilience and Adaptation to Turlock Irrigation District for their innovative Water Management Operations Program.

Turlock Irrigation District (TID) has been a steward of the Tuolumne River for over 130 years. As the oldest irrigation district in the state, TID strives to push the status quo and search for innovative and unique solutions to climate issues. TID’s Water Management Operations Program has combined new technology with research, assessment and data-driven decision making to manage the Tuolumne River through droughts and floods.

“Water is our backbone. With climate change, the conditions are changing, and we need to look to innovate as much as possible,” said Josh Weimer, TID External Affairs Department Manager.

Forecasting to Understand Available Resources

Approximately 75% of California’s water supply comes from snowpack, making it one of the state’s most valuable resources. In 2013, TID began diving into new forecasting technology to better understand snowpack through a partnership with NASA. The Tuolumne River watershed was selected as an area of study to reinvent the way that snowpack is studied and measured. Prior to this partnership, TID had only 17 points of measurement for the 1,500 square mile area of the watershed – about one measurement per eighty-eight square miles – which provided a reading of the snowpack with a margin of error up to 50%. “We were using outdated technology. We were using the best technology we had, but it was developed in the 1950s,” shared Weimer.

TID worked with NASA on the Airborne Snow Observatory (ASO) program to reimagine how to measure the amount of water in the snowpack. The ASO program uses planemounted Light Detection and Ranging (LiDAR) to create topographic maps of the snow-free region in the summer, and again in the winter when there is snow. The difference in these two maps gives TID a measurement of the snowpack based on over 400 million data points, with 9798% accuracy.

ASO is not the only way TID uses new and emerging technology. More recently, TID partnered with Scripps Institution of Oceanography to develop the Forecast Informed Reservoir Operations (FIRO) program, which allows TID to forecast incoming precipitation from atmospheric rivers. Atmospheric rivers can create extreme precipitation and flooding, but technology incorporated into the FIRO program gives TID better forecasts of expected rainfall. The ASO and FIRO programs give TID a full picture of their water resources – what they have and what’s incoming.

Data Driven Water Management Decisions

With a better understanding of the resources at hand, TID is making data-informed decisions to reduce the impact of drought, mitigate flooding and protect local growers. “This tech allows us to provide our board of directors a clear understanding of what is in the watershed and what type of precipitation is expected, so they can make informed water allocation decisions based on accurate and real time data,” says Weimer.

In 2020, TID reduced the water available to growers in preparation for California’s current drought, which was declared in over 40 counties in May 2021. When facing extreme rainfall in 2018, they used data-based technology to inform reservoir releases to mitigate flooding and minimize downstream impacts.

TID is, in turn, providing better data to local growers through the use of revamped online tools. The tools provide real-time data as to how much water the grower has used on each parcel and how much water remains available to that parcel for the year. The forecasting tool helps growers more accurately plan how they will use their available water to get them through the irrigation season. In addition, TID provides customers with weekly hydrology reports and bi-weekly usage summaries so they can better understand their water availability.

TID’s leadership in water management will have benefits that last longer than California’s current drought. Climate change in California means that the state will continue to face more frequent and severe droughts, with extreme weather and flooding in between. TID is well equipped to make fully informed, data-driven decisions for water management leading up to and during both wet and dry years. As most of the state re-enters extreme drought conditions, TID is turning the tide on how to manage California’s most valuable resource.

About the Beacon Program

This year, the Beacon Program was proud to welcome three special district members. In addition to TID, ILG also welcomed the Citrus Heights Water District and the El Dorado County Air Quality Management District. This is the first year that special districts have been able to participate. They join a network of over 160 cities and counties statewide that are committed to creating communities with cleaner air and water, more efficient transportation and more sustainable use of natural resources. Beacon participants receive free technical assistance from ILG in the form of sustainability best practices, as well as access to peer networks and webinars and opportunities for award recognition. To learn more about how to join the Beacon Program, visit www. ca-ilg.org/beacon-program.

About ILG

The Institute for Local Government (ILG) helps local government officials and staff navigate the constantly changing landscape of their jobs by offering training, technical assistance, written resources, and facilitation services specifically designed for cities, counties, and special districts. From leadership to public engagement to housing and workforce, ILG helps local leaders with a wide range of issues. ILG is a non-profit and non-partisan organization and a special affiliate of CSDA. Visit www.ca-ilg.org to find out more.

BACK TO BASICS – PUT THE POWER OF YOUR IIPP TO WORK

By Enriqueta (Henri) Castro, CSP, Safety/ Loss Prevention Manager, Special District Risk Management Authority

It’s time to take a fresh look at your District’s Injury & Illness Prevention Program (IIPP). In 2020, employers were made keenly aware of the Cal/OSHA IIPP regulation CCR §3203, as it pertained to COVID-19 pandemic. Employers realized the IIPP regulation included a requirement to have procedures in place “when there is a new or previously unrecognized hazard present”. The pandemic required employers to quickly figure out how to protect their employees from this new workplace exposure.

In this case Cal/OSHA provided guidance through the COVID-19 Prevention Temporary Emergency Regulation; however, this doesn’t happen in all situations, so it’s critical employers have a system in place to identify existing and new hazards. Good news! The “system” is already available. It’s your IIPP.

There are eight elements of the IIPP. The power of the IIPP starts with the requirement for employers to conduct a hazard assessment to identify and evaluate workplace hazards. This process provides a road map to determine potential hazards, identify Cal/OSHA regulations, and develop workplace safety policies and procedures. Let’s take a look at all of the elements of the IIPP. For guidance on developing or revising your specific program, go to Cal/OSHA’s Guide to Developing Your IIPP. Please note, the information provided is general in nature, there may be exceptions outlined in the regulation that may pertain to your district.

HAZARD ASSESSMENT

The hazard assessment is the heart of an effective IIPP. Gathering this information sets you up to develop and implement an effective IIPP. This process is critical when first developing your IIPP. It’s also required when the following occurs: • When new substances, processes, procedures, or equipment that present potential new hazards are introduced into our workplace; • When new, previously unidentified hazards are recognized; • When occupational injuries and illnesses occur; and • Whenever workplace conditions warrant an inspection.

To continue to identify unsafe conditions, periodic inspections are also required to evaluate physical hazards, use of hazardous materials, and safe work practices.

RESPONSIBILITY

Employers typically agree that everyone has a responsibility to be safe; but to be successful, responsibilities and accountability go together. The IIPP Administrator must be given the authority to oversee and manage the IIPP; however, the true success happens when managers and supervisors understand how important their roles are and how their leadership is critical to an effective program. This leadership will influence employees and assist them with adhering to their safety responsibilities.

COMPLIANCE

Here’s where all your hazard assessment work comes into play. Cal/OSHA requires employers to have a system to ensure employees comply with safe and healthy work practices. Through your hazard assessment you have the information needed to determine other Cal/ OSHA requirements, develop written programs, develop policies and procedures, and establish responsibilities and accountability.

Employers are required to have procedures in place to hold managers, supervisors, and employees accountable, but the key is having an ongoing accountability system to ensure the procedures are followed.

COMMUNICATION

Now that you’ve established the required policies and procedures it’s time to think about how you communicate your district’s commitment to safety and your expectations for employees. This is the time to think about the critical role of managers and supervisors and how they influence employees.

The regulation provides specific

requirements to include in your program. You must communicate safety in a readily understandable manner. You must encourage employees to inform you of identified hazards without fear of reprisal. Other recommended procedures include safety meetings, training programs, posting, written communications, anonymous hazard reporting options, and safety committees.

HAZARD CORRECTION

Your IIPP must include your commitment to correct unsafe or unhealthy conditions, work practices and work procedures in a timely manner based on the severity of the hazard. This requirement falls hand-in-hand with the hazard assessment requirements. An unsafe condition can be identified through a variety of avenues, such as reported by an employee, through a hazard inspection, through an accident investigation, to name a few. The critical component is that the district have a system in place to document the hazard correction process.

ACCIDENT INVESTIGATION

Employers are required to include their procedures on investigating occupational injury and illnesses. This section can be used to educate employees on what to do in the event they are injured as well as the investigative process. The goal of the investigation is to identify contributing factors and develop prevention measures to reduce reoccurrence.

TRAINING

All employees must be trained on general and job-specific hazards and safe work practices. Managers and supervisors must be trained on all health and safety hazards to which employees under their immediate direction and control are exposed.

In addition to hazard-specific safety training, training must be provided when: • The IIPP is first established • New employees are hired • Employees are reassigned to a new area or task with no prior training • New substances, operations, or equipment are introduced

Once the hazard assessment is completed the employer can use this information to determine the employee’s training requirements based on the their exposures.

RECORDKEEPING

Documenting and recordkeeping is essential for an effective IIPP. Cal/OSHA requires that IIPP records be maintained for (1) year; however, employers can choose to maintain records longer.

Examples of records include: • Safety training for each employee, including the employee’s name, training dates, type of training, and training providers • Inspections, including the person(s) conducting the inspection; the unsafe conditions and work practices identified; corrective action, and follow up • Accident investigations • Program revisions

Congratulations! Taking a fresh look at your IIPP is no easy feat, but the value is significant. When you address your workplace hazards it demonstrates your commitment to protecting your employees and it can have a positive impact on reducing the costs and risk associated with workplace injuries and illnesses.

SDRMA Board and Staff

Officers

MIKE SCHEAFER, PRESIDENT Costa Mesa Sanitary District SANDY SEIFERT-RAFFELSON, VICE PRESIDENT, Herlong Public Utility District ROBERT SWAN, SECRETARY, Groveland Community Services District

Members of the Board

DAVID ARANDA, CSDM, Stallion Springs Community Services District JEAN BRACY, CSDM, Mojave Desert Air Quality Management District TIM UNRUH, CSDM, Kern County Mosquito & Vector Control District JESSE CLAYPOOL, Honey Lake Valley Resource Conservation District

Consultants

JAMES MARTA, 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.

Staff

LAURA S. GILL, ICMA-CM, ARM, ARM-P, CSDM, Chief Executive Officer C. PAUL FRYDENDAL, CPA, Chief Operating Officer ELLEN DOUGHTY, ARM, Chief Member Services Officer DEBBIE YOKOTA, AIC, ARM, Chief Risk Officer WENDY TUCKER, Member Services Manager ALANA LITTLE, Health Benefits Manager JENNIFER CHILTON, CPA, ARM, Finance Manager HENRI CASTRO, CSP, Safety/Loss Prevention Manager DANNY PENA, Senior Claims Examiner HEIDI SINGER, Claims Examiner II ASHLEY FLORES, Management Analyst/Board Clerk MICHELLE LAVELLE-BROWN, Health Benefits Specialist II TERESA GUILLEN, Member Services Specialist I MARGARITO CRUZ, Accountant CANDICE RICHARDSON, Member Services Specialist I

Special District Risk Management Authority 1112 I Street, Suite 300, Sacramento, CA 95814 tel: 800.537.7790 • www.sdrma.org

IT IS TIME TO CHANGE

AFFORDABILITY MANAGEMENT TO HELP CUSTOMERS GET CAUGHT UP AND STAY CONNECTED

By Juliet Ellis, Head of Utilities, Promise

It’s a busy time for water utilities across the state of California as they navigate which relief programs best fit their needs to reduce arrearages and recover revenue, with the California Waterboard notably requiring payment plans as part of the California Water and Wastewater Arrearage Payment Program. In addition, many utilities are deciding on whether to lift moratoriums on shut-offs in the coming months. Consequently, the industry is seeing increased interest in payment plans to comply with a major relief program or to provide customers with a better alternative to shut-offs. The ugly truth, however, is that rates will likely continue to outpace wage growth in the lower income brackets for years to come, which means affordability concerns are a systemic - not an temporary - issue. Given my previous experience in utilities and my current role at Promise, I wanted to share my thoughts on how payment plans can help utilities to meet the moment and beyond.

ABOUT PAYMENT PLANS

Many utilities have payment plans, but they are not all created equal. As a company that focuses on payment plans and affordability solutions in the public sector, Promise has conducted extensive research into what makes payment plans successful and we have two major observations to share: 1. Expecting your users to do a significant amount of work is a fatal flaw when designing most experiences, but it is especially dangerous when it comes to lower income populations. “The Time Tax” by Annie Lowrey, in The Atlantic, talks about the inequities of forcing our most vulnerable customers to invest the most amount of time to secure government benefits.

Between multiple jobs, spiraling debt, no in-house child care, language barriers, and various other obstacles, time is something low income households do not have.

With this in mind, most payment plans are difficult to find, hard to sign up for, and often cumbersome with regards to the qualification process. All of this translates to lost time and low enrollment. At

Promise, we meet the customers where they are and focus on removing as many obstacles as possible to enrollment. 2. The other important observation we can share with you is that most products, not just payment plans, are not designed for low-income households. When a person or family lives paycheck to paycheck, budgeting for things, paying for things, and interacting with financial products is different. Some people may not have access to a credit or debit card. Others may only be able to pay their bills at a certain time of the month. Others may encounter emergencies due to unforeseen circumstances and do not have savings to pay right away. The reasons are numerous, but the results are consistent -

anywhere from 50% to 75% of payment plan enrollees go back into collections. Most traditional plans are incredibly rigid and do not provide flexible options to customers to navigate their financial realities with success.

WHY THIS MATTERS

Whether you want to do the right thing or you are looking for a solution to solve an operational problem, the right payment plan solution does both. At Promise, we typically double or triple enrollment rates in payment plans and we increase the revenue recovery rate from as low as 25% up to 90%. The result is that the utilities actually collect more money over time (often millions of dollars), save on collection expenses, and reduce the operational costs of shut-offs and customer service calls. And, most importantly, the customers do not have to endure any consequences. This provides a win-win to both the customer and the utility.

SOLUTION

Whether your utility has a payment plan already or needs

continued on page 38

CSDAFC Board and Staff

Officers

JO MACKENZIE, PRESIDENT, Vista Irrigation District VINCE FERRANTE, VICE PRESIDENT, Moss Landing Harbor District ARLENE SCHAFER, SECRETARY, Costa Mesa Sanitary District GLENN LAZOF, TREASURER, Regional Government Services Authority

Members of the Board

GEORGE EMERSON, Goleta Sanitary District PAUL HUGHES, CSDM, South Tahoe Public Utilities District MATTHEW MCCUE, Coachella Valley Cemetery District

2021 Municipal Bond Issuance Nearing 2020 Record

Last year, a new record was set for the total volume of municipal bond issuance. Over $474 billion in municipal bonds was issued by state and local governments taking advantage of historically low interest rates while making up for lost revenue related to COVID shutdowns. With interest rates still very low, it looks like 2021 municipal bond issuance is nearing last year’s record. Today’s interest rates in the public bond market are 1.50 percent for 10 years, around 2.25 percent for 20 years, and 2.50 percent for 30 years. Rates this low used to be obtainable only from government lending programs.

What About Those Government Loans?

Public agencies still get the lowest interest rates from government lending programs such as the USDA and State Revolving Fund, but typically the process takes longer and is more cumbersome than the public finance market. Some USDA programs take the form of reimbursement loans, requiring the project to be constructed prior to loan funding, which can force the public agency to seek interim financing. On the other hand, the public finance market can provide funding upfront and the process to accessing those funds is more streamlined and with fewer limitations or special qualifications.

Is There Money Available?

Current investor demand is outweighing the supply of tax-exempt bonds. Municipal Market Analytics (MMA), an independent research firm providing strategic market and credit analysis and commentary on current, historical and quantitative conditions of the US municipal sector, estimates a $100 billion gap between the supply of new tax-exempt bonds and the amount of cash investors are looking to put into the market.

What Does This Mean to Special Districts?

In short, it means there is a lot of low-cost money available. For special districts well-positioned to issue debt, the interest rate environment has never been more inviting and the timing could not be better for the financing of new projects and refinancing of older debt.

When considering your financing options, make CSDA Finance Corporation your first call. We’ve specialized in providing solutions for special districts for over 30 years and our consultants are experts in municipal finance. Call 877.924.2732 or visit www. csdafinance.net.

Consultants

RICK BRANDIS, Brandis Tallman, a Division of Oppenheimer & Co. Inc. WILLIAM MORTON, Municipal Finance Corporation ALBERT REYES, Kutak Rock LLP NICOLE TALLMAN, Brandis Tallman, a Division of Oppenheimer & Co. Inc.

Staff

NEIL MCCORMICK, Chief Executive Officer CATHRINE LEMAIRE, Coordinator AMBER PHELEN, Executive Assistant RICK WOOD, Finance & Administrative Director

C S D A F C

CSDA Finance Corporation 1112 I Street, Suite 200, Sacramento, CA 95814 tel: 877.924.2732 • www.csdafinance.net

to adopt one, payment plans can be surprisingly complicated. Here are some things you might consider as you evaluate your options.

HOW WILL YOU ENGAGE PEOPLE?

We see anywhere from 10% to 20% of delinquent customers enroll in payment plans using multi-channel outreach to drive awareness especially via text message. This compares to enrollment rates that typically hover between 2% and 5% at many utilities. Understanding how you can leverage marketing in a cost-effective, yet compelling manner is important.

KEEP IT SIMPLE

Use technology where possible to drive an easy experience from beginning to end. As soon as you make contact with a customer, you are going to need a website or application that can handle the engagement, application, qualification, enrollment, and maintenance of payment plans. Again, not everyone will want to call, write, visit, or email you. With our mobile webbased application, the average enrollee spends 5-7 minutes for enrollment.

RETENTION IS CRITICAL

Retaining your customers will be the trickiest part and there is not one solution. Having a good mobile solution allows people to self-serve and modify their plans. A reminder system is also critical to keeping people on the path. In addition, we have a very empathetic and welltrained customer service staff that works with customers to help them to get back on track when needed. Over the life of a payment plan you should expect up to 60% of people to miss a payment at some point. We have seen a 90% overall performance rate for customers on our plans. For those that have the ability to change the date or payment type, they continue to be 75% successful on their plan.

CHOICE

Regardless of what path you choose, it’s important to understand what makes a great payment plan solution. We believe the voice of low-income households must be kept at the center, as most payment systems were not built with the lens of affordability in mind. So, whether you build it yourself or decide to partner with a trusted vendor, we encourage you to hire an expert in matters of affordability.

For more information on how Promise can work for your utility, please contact Amanda Jones at amanda@joinproimise.com.

SPECIAL TAXES NOW EASIER TO PASS

By Gary B. Bell and Michael G. Colantuono, Colantuono, Highsmith & Whatley, PC

Recent court decisions provide good news for local taxing authority. On April 28, the California Supreme Court denied review in Howard Jarvis Taxpayers Association v. City and County of San Francisco, the latest of three decisions — from appellate courts in San Francisco and Fresno — concluding that special taxes proposed by initiative may be approved by a simple majority (50% + 1) of voters. Special taxes are those the proceeds of which are legally restricted to a particular purpose, like public safety, fire prevention, facilities upgrades, infrastructure, road improvements, and many others. Many special districts are authorized by their principal acts to levy special taxes, sometimes with a requirement that the taxes apply uniformly to all taxpayers or all real property in the district. A special tax applied to real property is referred to as a “parcel tax.”

Before the California Supreme Court’s 2017 decision in California Cannabis Coalition v. City of Upland, the law had required two-thirds voter approval of special taxes, whether proposed by local government officials or by initiative petition. In Upland, the Court held that restrictions in Proposition 218 referring to “local government” were meant to constrain local government officials and not the electorate. The people’s initiative power is “one of the most precious rights of our democratic process,” the Court reaffirmed, and there must be a clear indication voters meant to curtail it, which was missing from Proposition 218.

In the San Francisco case, a simple majority of voters approved Measure C, an initiative measure imposing a special tax, and the Howard Jarvis Taxpayers Association challenged the measure as requiring two-thirds voter approval. Citing the Upland case, the Court of Appeal concluded that Measure C was validly approved by a simple majority of voters because it was proposed by initiative. The decision followed 2020 opinions in City of Fresno v. Fresno Building Healthy Communities and City and County of San Francisco v. All Persons Interested in the Matter of Proposition C, which applied the same reasoning to uphold initiative measure special taxes approved by a simple majority of voters. And the California Supreme Court denied review of both. The latest San Francisco case adds one more point – the fact that an initiative proponent was a San Francisco Supervisor using his City Hall address on election forms did not change the result. There are strict rules against using public resources to urge a “yes” or a “no” vote once a measure in on the ballot, however.

By denying review in the latest San Francisco case too, Upland’s suggestion has become the holding of these three cases and settled law: special taxes proposed by initiative may be approved by a simple majority of voters.

Some litigation continues, however, asking whether transactions and use taxes (“sales taxes”) must receive two-thirds voter approval because the Revenue and Taxation Code requires it. We are defending that issue for Alameda County and expect the courts to conclude — as they did in the cases described above — that procedural requirements for taxes are not intended to apply to voters acting by initiative unless they say so expressly. A trial court decision is some months off, and an appeal is likely. It may be a year or two before this point is settled. However, few special districts have statutory authority to impose sales taxes. We’ll keep you posted as the law continues to develop!

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CSDA’s Consultant Connection™ gives our members access to a pool of experts who provide exclusive discounts and special benefits for a variety of services.

Visit csda.net/consultant-connection for details.

Your Community. Your Services. Your District!

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 people value.

The first step is to visit DistrictsMaketheDifference.org. The website features a simple-to-use toolkit filled with public awareness videos, web banners, posters, fact sheets, and other materials that can be easily downloaded.

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