Managing Risk

Risk Management Considerations for Community Dog Parks

By Enriqueta (Henri) Castro, CSP, Risk Control Manager, Special District Risk Management Authority

According to a National Recreation and Park Association (NRPA) poll, most Americans believe dog parks provide valuable benefits to the communities they serve. Dog parks provide a space for dogs to exercise and socialize, while also allowing owners to engage with their pets and connect with other dog owners.

Is your district considering building a community dog park? If so, read on for valuable development and risk management considerations.

Research

We recommend first consulting with your county and/or local government(s) to determine if there are specific requirements regarding park locations, structural requirements, signage, noise, sanitation, maintenance, and other factors.

Location

If you are considering building a dog park within an already existing park, consider the other amenities in the park and plan to provide adequate space from playgrounds, skateparks, and other structures. Avoid building the park immediately adjacent to residential property lines. The park should be easily accessible and remember to consider relevant ADA access requirements.

Fencing and Access

The basic components of a dog park include fencing around the park and an entrance area. Fencing five feet or higher is recommended to prevent dogs from jumping over. Ideally, the entrance should be a buffer to the park, such as a double-gated entry area which provides an off-leash area and an assimilation area for the dogs. In addition, consider separate areas for large dogs and smaller, younger, or older dogs.

Dog Park Surfacing

Based on our research, natural turf/grass is one of the least desired surfaces for dog parks. A study conducted by Fairfax County outlines the pros and cons of the following dog park surfacing materials: • Natural Turf/Grass – Is soft and clean but wears quickly with high maintenance requirements. • Crusher Fines (a finely-crushed stone mix) – Drains well and holds up to heavy use but can erode if not on level surface. • Wood Mulch – Easy to replace but holds dog waste and has poor drainage. • Synthetic Turf – Less maintenance but requires frequent cleaning and may require replacing every couple of years, depending on use.

Rules and Signage

Develop a set of rules and regulations. Signage should include the rules as well as emergency and district contact information. The sign should be posted on the park gate near the entrance.

Common signage rules include, but are not limited to: • Dog park hours • Use dog park at your own risk. • Users are legally responsible for their dogs and any injuries and/or damages caused by their dogs.*

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• Dogs must be legally licensed and vaccinated. • Dogs must be leashed when entering and exiting the park. • Aggressive dogs must be removed immediately. • Owners must be in the dog park and supervising their dog with leash readily available. • Handlers must be at least 16 years of age. • Children under 13 must be accompanied by an adult and supervised at all times. • Puppies under four months are not allowed. • Dogs in heat are not allowed. • No human and/or dog food is allowed in the dog park. • Smoking is not allowed in the dog park. • Petting other people’s dogs without the owner’s permission is not allowed. • Users are legally responsible for their dogs and any injuries and/or damages caused by their dogs.* • If dog park users do not abide by these rules, please contact local animal control at (INSERT PHONE NUMBER). • In an emergency call 911. * California Government Code 831.7.5 addresses the actions of a dog in a dog park. It states, “A public entity that owns or operates a dog park shall not be held liable for injury or death of a person or pet resulting solely from the actions of a dog in the dog park”.

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 TIM UNRUH, CSDM, Kern County Mosquito & Vector Control District JESSE CLAYPOOL, Honey Lake Valley Resource Conservation District THOMAS WRIGHT, Clovis Veterans Memorial 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.

California Civil Code 3342 addresses the dog owner’s strict liability when their dog bites a person. It states, “The owner of any dog is liable for the damages suffered by any person who is bitten by the dog while in a public place or lawfully in a private place.”

Amenities & Conveniences

Seating options, a drinking water source, and shade structures or trees are recommended. An available running water supply for dogs is also recommended. In addition, trash receptacles, waste bag dispensers, and waste bags facilitate the disposal of dog waste or general trash.

Maintenance

Maintenance should include frequent collection and removal of debris, restocking waste disposal bags, sign repair, filling holes, fence repair, irrigation, and surface material maintenance.

Staff

LAURA S. GILL, ARM, ARM-P, CSDM, Chief Executive Officer ELLEN DOUGHTY, ARM, Chief Member Services Officer DEBBIE YOKOTA, AIC, ARM, Chief Risk Officer WENDY TUCKER, AU, Claims Manager ALANA LITTLE, Health Benefits Manager HENRI CASTRO, CSP, Risk Control Manager DANNY PENA, Senior Claims Examiner ERIC LUCERO, Senior Risk Control Specialist TERESA GUILLEN, Member Services Specialist II MARGARITO CRUZ, Accountant HEIDI SINGER, Accountant MICHELLE BROWN, Health Benefits Specialist II CANDICE RICHARDSON, Member Services Specialist I KEITH IKAMI, Claim Examiner I

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

Special District Events Bolster Coastal Cleanup Effort

For nearly 40 years, The Ocean Conservancy has sponsored International Coastal Cleanup Day (ICC), a volunteer effort to clean up marine environments around the world. With more than 100 countries participating, volunteers descend on beaches, rivers, lakes, and waterways to show their commitment to clean, healthy marine environments. as still as possible, waiting for unsuspecting crayfish to creep out from their underwater hiding spots, typically tucked under rocky crevices within the creek. Crayfish are scooped up in nets and placed in bright orange buckets flanking the banks of the creek, after which volunteers gather as a group to measure and sex them so the numbers can be reported to California State Parks.

Since its inception, International Coastal Cleanup has extended far beyond just one day, with volunteers expanding their cleanup efforts to the entire month of September and beyond.

Much of cleanup effort is focused on removing litter, but volunteers also tackle projects that support healthy ecosystems, providing opportunities for volunteers to become environmentalists, even if just for a short time. Resource Conservation District of the Santa Monica Mountains used ICC as a platform to promote its Invasive Crayfish Removal Event.

“We’ve been conducting invasive crayfish removals in Topanga Creek since 2013. We host several volunteer opportunities at our Resource Conservation District, but crayfish removals always seem to attract the most community volunteers,” said Jelly Kahler, the education and communications specialist for the district.

During the event, volunteers wade in knee- to thigh-high deep water, armed with small pieces of hot dog tied to the end of a string in one hand and a net in the other. Volunteers stand

Removing these invasive pests benefits endangered southern steelhead trout, whose eggs are preyed upon by the crayfish. The trout are an indicator species in the region, meaning their Ensuring the trout remain in presence gives insight as to the health Topanga Creek means a healthier of a given creek. Topanga is one of the watershed for our community last creeks within the Santa Monica … the benefits trickle to oak Mountains to house steelhead, and woodlands, chaparral, native birds, the crayfish is the only known invasive local mammals, and even the aquatic animal in this body of water. quality of the air we breathe. “Ensuring the trout remain in Jelly Kahler, Topanga Creek means a healthier Education and watershed for our community … the Communications Specialist benefits trickle to oak woodlands, chaparral, native birds, local mammals, and even the quality of the air we breathe,” Kahler continued. Topanga Creek also connects to the ocean where the Topanga Lagoon breaches, so removing invasive species from the creek prevents them from spreading to other watersheds. International Cleanup Day provides an ideal opportunity to marry volunteer efforts with the longstanding research of the Resource Conservation District. The district has been continued on page 36...

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monitoring the southern steelhead since 1995, and in fact, its senior biologist, Rosi Dagit, has dedicated her career to bolstering this threatened population to historic numbers. Preserving the local population would be invaluable to the species at large.

“We love involving our community in this important restoration work because we believe conservation of natural resources should be approached from a community and grassroots perspective. Inspiring community members to become environmental stewards and connecting them with the nature that exists all around is at the heart of our mission at the Resource Conservation District,” concluded Kahler.

Fair Value: A Transparent Look into a Pool’s Holdings

By Laura Glenn, Public Trust Advisors, LLC

Many states and local governments across the country offer Local Government Investment Pools (LGIPs) for the exclusive benefit of governmental entities within their state or jurisdiction. California CLASS is just one such example of a LGIP, which in California, is commonly referred to as a Joint Powers Authority investment pool.

LGIPs and the governmental or private entities that manage them report the values of their securities based on pronouncements issued by the Governmental Accounting Standards Board (GASB). Its mission is “to establish and improve standards of state and local governmental accounting and financial reporting that will result in useful information for users of financial reports and educate stakeholders on how to most effectively understand and implement those standards.”

Amortized Cost is the Exception, Not the Rule

Some LGIPs have historically been managed as “2a7-like pools” to comply with GASB Statement No. 31 as amended by GASB Statement No. 59 and have elected to measure for financial reporting purposes all investments at amortized cost.

This method of accounting assumes the value of the underlying securities of the LGIP is the amount paid (cost) for the investments, which may include a discount or premium to the face amount of the security. Any discount or premium is recorded (accreted or amortized) as an adjustment over the life of the security, such that amortized cost equals the principal value at maturity. Discount bonds are typically accreted using a straight-line method, whereby the increase is evenly spread throughout the term life of the bond. For purposes of calculating earnings to each participant, all investments are valued at amortized cost.

In December 2015 the GASB issued Statement No. 79, Certain External Investment Pools and Pool Participants. The Statement is a response to the Securities and Exchange Commission’s 2014 amendments to Rule 2a-7. GASB Statement No. 79 establishes specific criteria to determine whether a qualifying external investment pool may elect to use an amortized cost exception to fair value measurement. The Statement provides management standards for LGIPs electing to report and measure LGIP investments at amortized cost and no longer references SEC Rule 2a-7 by eliminating the language “2a-7 like”. To qualify for the exception to measure all of its investments at amortized cost for financial reporting purposes, a LGIP must meet the criteria for portfolio maturity, portfolio quality, portfolio diversification, portfolio liquidity and shadow pricing (at a minimum monthly), in addition to transacting at a stable net asset value (NAV) per share. Significant noncompliance prevents the LGIP from utilizing the amortized cost exception.

An external pool that reports its holdings at its fiscal year end at amortized cost does not take into consideration any market related changes to the underlying securities. As stated in Paragraph B6 of GASB Statement No. 79, “In the Board’s view, the overall goal of the specific criteria presented in the Statement should be to limit the risk that external investment pool investments measured at amortized cost significantly deviate from fair value.” However, if a LGIP has a long weighted average maturity (WAM) and rates have risen dramatically, or a credit crisis negatively impacts the credit exposure in the LGIP, this may not be depicted in a pool that has elected to report under the exception of amortized cost.

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The GASB in Statement No. 79, Paragraph B3 states

“Consistent with Statement 72, the Board believes that measuring investments at fair value generally is preferable. Fair value provides consistency and comparability between governments. However, Statement 72 allows an exception to fair value measurement for 2a-7 like external investment pools because the amortized cost of investments held by 2a-7 like external investment pools will closely approximate fair value.” They reiterate their preference for fair value throughout Statement No. 79. Specifically, again in Paragraph B7 they state “However, the Board has expressed its general preference for measuring investments at fair value and intends for this exception (amortized cost) to apply only in narrow circumstances. The specific requirements in this Statement make those narrow

circumstances clear.” Fair value measurement enhances and strengthens the transparency of financial information provided to the public.

California CLASS Prime transacts its Participants’ shares at a stable NAV of $1.00. It measures and reports investments at fair value because this provides a transparent and accurate picture of the value of a LGIP’s holdings based on current market conditions.

Rated Local Government Investment Pools

Like so many MMFs, a LGIP may choose to obtain a rating from a nationally recognized statistical rating organization (NRSRO). California CLASS Prime is AAAm rated by Standard & Poor’s (S&P) under their principal stability fund rating methodology. According to S&P, a Principal Stability Fund Rating (PSFR), “commonly referred to as a money market fund rating, is a forward-looking opinion about a fixed income fund's ability to maintain principal value (i.e., stable NAV).” As a rated LGIP, the holdings must be submitted weekly to S&P to ensure the LGIP is adhering to the criteria for a AAAm rated fund. A marked-to-market NAV is calculated and submitted each week. This weekly review guarantees the marked-tomarket NAV has not deviated substantially from a NAV that was calculated using amortized cost. A weekly marked-tomarket NAV provides assurance the LGIP can operate at a $1 NAV and redemptions from the pool are not detrimental to remaining participants.

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Fair Value Is GASB’s Preference

In conclusion, as the GASB states throughout Statement No. 79, the preference is to measure investments at fair value because the use of amortized cost is intended to be an exception in narrow circumstances. We believe measuring and reporting the investments of a LGIP at fair value gives an accurate and timely depiction of the investments and provides transparency to the participants. By measuring investments at fair value and in managing the Prime Fund in accordance with S&P’s AAAm guidelines, California CLASS and other stable $1.00 NAV LGIPs managed by Public Trust Advisors pursue the primary objectives of offering Participants maximum safety, daily liquidity, and optimized returns.

Any financial and/or investment decision should be made only after considerable research, consideration, and involvement with an experienced professional engaged for the specific purpose. The information presented should not be used in making any investment decisions. This material is not a recommendation to buy, sell, implement, or change any securities or investment strategy, function, or process. Past performance is not an indication of future performance. Any financial and/or investment decision may incur losses.

CSDAFC Board and Staff

Nearly $100MM in Special District Financings

Even with interest rates on the rise, California’s special districts are finding low-cost, competitive financing solutions through CSDA Finance Corporation. So far this year, CSDAFC has assisted in nearly $100 million in transactions, large and small.

EXAMPLES OF RECENTLY CLOSED FINANCINGS

San Miquel Consolidated Fire Protection District UAL Prepayment $25,925,000

Goleta West Sanitary District Wastewater system improvements $13,859,000

Big Bear Airport Terminal building construction $7,920,000

Kensington Fire Protection District

Building renovation Groveland Community Services District Park improvements Nevada Co Consolidated Fire District Water tender $2,160,000 $350,000 $205,211

Port San Luis Harbor District Boom truck purchase $197,300

Visit www.csdafinance.net to submit a quote request online or call 877.924.2732 for more information.

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

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

SUPPORTING PUBLIC AGENCIES FOR 50 YEARS

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C S D A F C

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

THE TIME IS NOW... GET A QUOTE FOR YOUR NEXT FINANCING NEED.

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The CSDA Finance Corporation is part of the California Special Districts Alliance which is a collaborative partnership between the California Special Districts Association (CSDA), CSDA Finance Corporation, and Special District Risk Management Authority (SDRMA). Contact us at (916) 442-7887

Steady as you go.

When your team and ours all pull together, you get the sure-footed stability you need to proceed with confidence. As an extension of your staff, we are always at the sidelines delivering service and expertise. For everything from Workers’ Compensation and Property/Liability coverages to Health Benefits options available throughout California, we are here to keep you going strong. For more information, visit sdrma.org.

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