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Managing Risk

Managing Risk

Districts Clean Air Day Activities

The Coalition for Clean Air hosted the 5th Annual California Clean Air Day on October 5, 2022, and districts across the state participated in a multitude of ways. California Special Districts reached out to two districts, Isla Vista Recreation and Park District and Conejo Recreation and Park District, to get details on their Clean Air Day participation.

Isla Vista Recreation and Park District (IVRPD) partnered with the Isla Vista Community Services District (IVCSD) and the University of California at Santa Barbara (UCSB) Environmental Affairs Board (EAB) to host a raffle with prizes from local businesses, gift cards to the Santa Barbara Metropolitan District buslines, free water bottles, bike helmets, a compost starter kit, and even a grand prize electric scooter valued at over $200. IVRPD and its partners encouraged guests to “Clean the California Air” by taking the pledge at www.cleanairday.org in exchange for raffle entry tickets. The event was well-attended with over 50 entries and took place during IVRPD’s Music in the Park Concert Series, co-hosted by UCSB Black Student Union featuring a variety of local artists, bands, and spoken word performances. In total, roughly 160 attended the Clean Air Day event and Music in the Park Concert Series on the Saturday commemorating Clean Air Day.

Conejo Recreation and Park District participated in an event hosted by the Conejo Open Space Foundation called

Native Plantapalooza & Eco Fest on October 1 in Thousand Oaks. Many attendees took the Clean Air Pledge, purchased or won several hundred native plants available at the event and learned about recycling, composting and minimizing waste through the fun recycling games offered. With many exhibitors in attendance, the public was able to attend several presentations on the medicinal values of native plants, pollinators, native plants found in the Santa Monica Mountains that can thrive in home gardens, and backyard beekeeping. The National Wildlife Federation offered updates on the Annenberg Wildlife Crossing and the now infamous P-22 mountain lion. Conejo Open Space Foundation (COSF) had three main goals for the event, and they achieved each one: 1. Distribute 100 drought tolerant plants 2. Educate at least 300 people about the importance of clean air 3. Introduce at least 50 kids to outdoor stewardship practices “Our community enjoys a strong network of volunteer-led nonprofit organizations,” said Conejo Recreation and Park District General Manager Jim Friedl. “The Conejo Open Space Foundation has been vocally advocating for At the Native Plantapalooza & Eco Fest, protecting and preserving open space for kids got to blend native plants and artwork for a fun booth experience. the environmental benefits and recreational trail uses for decades. When COSF stepped up and rallied the community to create a fun, educational and meaningful event, our district was happy to participate.”

IVRPD’s partnership with the IVCSD and EAB provided free educational resources on ways people can reduce their carbon footprint, limit single use plastics, and contribute to the health and wellness of California’s air. IVRPD and its partner organizations reached large audiences due to Isla Vista’s dense population of approximately 27,000 people located in onehalf square mile. Advertising for the Clean Air Day raffle was also cross listed by student groups on campus, such as the UCSB Black Student Union, who were creative partners and organizers in hosting Saturday’s event. Their ongoing summer music series made a perfect venue to add the Clean Air California theme for the weekend. Partnering with the UCSD Black Student Union, they paired the theme “Soul on Wheels” for their concert, which supported the education of alternative transportation in the raffle.

“This event hopes to reach as wide an audience as possible, especially those who are interested in learning about California climate health and supporting local businesses through the use of alternative transportation such as bicycles, skateboards, roller skates, scooters, and walking,” said Isla Vista Recreation and Park District General Manager Kimberly Kiefer.

Friedl said the staff at their district booth was excited at the attendance and is eager to participate again in 2023 adding, “personally, I went home more aware of the actions I can take to have a lighter footprint on our environment and to help clean our air - - - Plus, I got a dozen California droughttolerant plants to help replace my dead lawn!”

Isla Vista Recreation and Park District greeted attendees and raffled prizes at their Music in the Park event.

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The Port of Hueneme Charges Ahead with Another Big Environmental Win by Expanding Shore Side Power System

The Port of Hueneme of Oxnard Harbor District (The Port), known as the fourth largest container port in California, has been awarded $5 million dollars as part of the Volkswagen (VW) Environmental Mitigation Fund. These funds will be utilized to purchase shoreside power hardware components for the Port’s north terminal and further support the existing south terminal shoreside power system used to cool reefer and container vessels.

Oxnard Harbor Commissioner Board President Mary Anne Rooney said, “We are happy to get this project started as part of The Port of Hueneme’s Environmental Management Framework (EMF), as it will significantly improve regional air quality in an Environmental Protection Agency designated priority location. It will also provide a readily available backup if the south terminal system becomes temporarily unavailable due to construction or other projects.”

The North Terminal Shore Power project provides state of the art electrical infrastructure and electrical-grid-base connection, allowing ocean going vessels to shut down their diesel auxiliary engines while at berth—effectively eliminating vessel diesel emissions while at berth.

The Port of Hueneme will continue to take the necessary steps as a proactive community partner to implement solutions, resolutions, and technologies to ensure the health and viability of our local economies and surrounding communities.

On average, 210 vessels per year are expected to use the shore power facility annually, resulting in a 94 percent reduction in particulate matter and a 99 percent reduction in nitrogen oxides over the lifetime of the entire shore power infrastructure project. The diesel emissions eliminated from vessels while at berth and the overall emission reductions generated by this project will improve the local air quality and continue the Port’s strategic long-term vision to modernize its facilities, improve the efficiency of goods movement, reduce its carbon footprint, and bolster resilience at The Port of Hueneme.

“The new north terminal shoreside power system will drastically reduce emissions and provide grid-based electrical connection redundancy to different classes of ocean-going vessels,” said KJ May, Port of Hueneme Engineering Manager.

These improvements will effectively eliminate the noise and emissions from auxiliary engines and simultaneously improve the working conditions and increase the quality of life for neighboring communities, shippers, truckers, terminal operators, and dock workers alike.

Upgrading the Port of Hueneme’s infrastructure significantly reduces the emissions generated by goods movement and will produce long-term benefits throughout our regional and national transportation systems.

The North Terminal Shore Power project would also allow for Ro-Ro vessels to plug into the electrical grid and avoid the use of auxiliary emissions while at berth at the Port of Hueneme.

Vehicles being driven off a “Roll On/Roll Off” vessel. After the North Terminal Shore Power project is completed, the vessel will be able to plug in while these operations are happening.

This investment is part of our legacy of environmental stewardship at the Port” said Kristin Decas, Port of Hueneme CEO and Port Director. “California requires Ro-Ro (roll-on/ roll-off) vessels to plug in while at berth by 2025; beating this goal keeps us competitive in the global market and further eliminates emissions from our day-to-day operations.”

The Port of Hueneme is aiming to get the North Terminal Shore Power System operational within calendar year 2024. Once completed, the Port will maintain contracts to keep the shoreside power electrification equipment in operable condition for the life of the equipment—which is expected to be at least 20 years.

About the Port of Hueneme

The Port of Hueneme of Oxnard Harbor District is one of the most productive and efficient commercial trade gateways for niche cargo on the West Coast. The Port is governed by five locally elected Port Commissioners. The Port consistently ranks among the top ten U.S. ports for automobiles and fresh produce. Port operations support the community by bringing $2.2 billion in economic activity and creating 20,032 traderelated jobs. Trade through the Port of Hueneme generates more than $173.2 million in direct and related state and local taxes, which fund vital community services. In 2017, the Port of Hueneme became the first port in California to become Green Marine certified and was voted the Greenest Port in the U.S. at the Green Shipping Summit.

Image depicts the project location and the proximity of it to the surrounding area.

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First Amendment Violated When Boston Rejected Christian Flag Based Upon its Flag Policy

By Robert Khuu, Partner, Aleshire & Wynder, LLP

In Shurtleff et al. v. City of Boston (May 2, 2022), the U.S. Supreme Court unanimously held that the City of Boston’s refusal to let an organization fly their flag on city-owned flag poles based on their religious viewpoint violated the Free Speech Clause of the First Amendment. In Shurtleff, an organization brought action against Boston alleging the city violated, among other things, the First Amendment’s Free Speech Clause by refusing to allow the organization to raise its self-described “Christian flag” under the city’s program of allowing private groups to use one of the three flag poles on the plaza in front of city hall to fly the flag of their choosing for the duration of events sponsored by the groups. The First Circuit Court of Appeals disagreed and ruled in favor of Boston.

However, the U.S. Supreme Court reversed and concluded that Boston’s flag-raising program does not express government speech. Expressing government speech would have allowed Boston to refuse a flag based on viewpoint. Instead, the Supreme Court concluded that the program expressed private speech when it allowed private organizations to use the flagpole. Thus, Boston was therefore prohibited from restricting speech based on a speaker’s viewpoint. In making

this determination, the Supreme Court concluded that “the city’s lack of meaningful involvement in the selection of flags or the crafting of their messages leads us to classify the flag raisings as private, not government, speech - though nothing prevents Boston from changing its policies going forward.” If your city has a policy allowing private organizations to raise their flags on city-owned flag poles, or any other policy allowing private organizations to display a flag or other similar object on public property, then we recommend considering whether the the city’s lack of meaningful policy should be reexamined in light of involvement in the selection of flags this case. or the crafting of their messages Aleshire & Wynder LLP provides leads us to classify the flag raisings unparalleled legal representation as private, not government, speech - to local communities throughout though nothing prevents Boston California. Our attorneys have been from changing its policies going loyally serving public agencies for over forward. 35 years. This communication is not intended to be, and does not constitute, legal advice, and no attorney-client relationship is formed by reading it. Seek the advice of an attorney before acting or relying upon any information in this communication. Facts specific to your situation or future developments may affect subjects contained herein. This communication may be considered ATTORNEY ADVERTISING in some states.

Maintain budget neutrality while implementing needed upgrades

While energy and infrastructure upgrades reduce overhead costs, limited budgets and conflicting priorities can restrict spending that doesn’t immediately impact frontline services. Centrica Business Solutions deploys flexible contracting options that enable special districts to maintain budget neutrality while implementing needed upgrades.

Requires no initial investment

Uses the energy savings achieved by the infrastructure improvements to finance the cost of upgrades

Pays for the project over time with the guaranteed annual savings

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Why Must Special Districts Address Deferred Maintenance Backlogs?

Discover five reasons why special districts need to prioritize infrastructure upgrades to reduce overhead costs and carbon emissions, maximize taxpayer dollars, and ensure safe, healthy communities.

By Centrica Business Solutions

Special districts across the country are showing their age and require maintenance and repair; however, there are not enough resources in the budget to complete the necessary work. More often than not, the project goes into a maintenance backlog known as ‘deferred maintenance’ or ‘deferred maintenance and repairs.’

Due to shrinking and tight budgets, facility managers across all areas of special districts face the daunting task of managing a growing deferred maintenance backlog. Aging facilities require renovations and retrofits – lighting, HVAC, plumbing, electrical, and building envelope improvements like windows and roofing – to bring them to like-new condition, ensure compliance with various building codes, increase asset performance, and extend equipment lifespan.

Deferred maintenance is a local, state, and federal challenge. According to the American Society of Civil Engineers, America’s 2021 infrastructure scorecard is a C-. This score indicates that infrastructure – from parks to schools to drinking water systems – is deteriorating and requires attention, with some significant deficiencies in conditions and functionality, increasing vulnerability to risk. As of 2019, estimated deferred maintenance across the U.S. exceeds $1 trillion.

Let’s look at a few examples where investment is needed on a local level.

Public parks are vital to building healthy communities and ensuring economic prosperity. They deliver value by making life better for communities and offering a wealth of recreational activities, from learning centers to events to retreats. However, investment is lagging in infrastructure upgrades; as a result, facilities, drinking water systems, and other critical assets are deteriorating. State parks, for instance, face a $5.6 billion deferred maintenance backlog. The situation is even more urgent for local parks, which face a $60 billion backlog.

Water and wastewater facilities are critical components that ensure the community’s well-being, delivering safe drinking water and treating wastewater to protect the community’s and environment’s health. This infrastructure is also a revenue generator – however, aging water infrastructure leads to an estimated 6 billion gallons of treated water lost each day, a waste of natural resources, and a loss of revenue, which special districts can reclaim through infrastructure improvements.

Addressing deferred maintenance and implementing energy and infrastructure upgrades are appealing because aging infrastructure and assets are inefficient, costly, and timeconsuming to maintain. Reducing overhead costs is critical for special districts, as they face increasing pressure to maximize taxpayer dollars and accomplish more with less. Still,

competing priorities usually mean that addressing outdated infrastructure takes a backseat in favor of funding communityfocused services and initiatives.

It’s easy for special districts to push spending on facility improvements to the bottom of the priority list when this portion of the budget is competing against public-facing budget items that focus on bettering their community. After all, they have a fiscal and social responsibility to ensure the well-being of their constituents and build a thriving community.

However, deferring maintenance on back-end, yet critical, assets only puts infrastructure and the community at risk, as it can divert funding from where it’s most needed. For example, when energy costs are high or emergency maintenance on outdated equipment is necessary, it forces budget trade-offs that shift resources. The challenge is to reduce spending without negatively impacting the services provided to the community. Therefore, delaying infrastructure upgrades cannot last forever, and addressing deferred maintenance is becoming more urgent to ensure the sustainability of infrastructure.

Here are five reasons why you should take a hard look – right now – at tackling the growing backlog.

Reason 1. Aging infrastructure demands high energy costs

With budgets tight, special districts need to take a hard look at reducing operational costs and operating more efficiently to maximize taxpayer dollars. Aging infrastructure requires more resources to operate. When buildings are not using energy efficiently, it has financial impacts, diverting budget away from the community. According to the U.S. Environmental Protection Agency, the average local government facility wastes about 30% of the energy it uses. And some, like water and wastewater plants, are massive energy consumers, dedicating 40% of their operating costs to energy.

Modernizing infrastructure and operating more efficiently enables the budget to focus on serving and bettering the community, maximize taxpayer dollars, and build a thriving, healthy, safe community. Capturing energy cost savings from more efficient energy usage can directly translate into enhancements the community cares about – things that make life better, like new playgrounds, recreational facilities, community events, and more.

Reason 2. Aging infrastructure carries a high carbon footprint

Inefficient energy usage doesn’t simply affect the operational budget – high energy consumption and energy waste carry the additional price tag of carbon emissions. And this matters because the community’s attitude toward the climate is changing. In addition, the federal government has set clear net zero goals.

Special districts need to take a hard look at their infrastructure to boost the sustainability of their facilities and reduce carbon emissions. Upgrading energy technology is critical to meeting electrification and carbon targets while conserving natural resources. From energy upgrades that reduce consumption to installing renewable technologies that generate clean power on-site to offset grid energy consumption, the options for boosting the efficiency and sustainability of facilities are endless.

Many special districts are already taking steps to mitigate their carbon emissions to reduce operational costs. They are developing sustainability and energy roadmaps, disclosing carbon emissions, and receiving public recognition.

Reason 3. Aging infrastructure is risky and costly to maintain

While convenient, delaying infrastructure upgrades can lead to more problems down the road. Outdated equipment isn’t simply less energy efficient – as equipment reaches the end of its lifespan, more frequent and expensive emergency repairs may be necessary. In short, deferring maintenance can cost more in the long run – according to research by Rick Biedenweg, President of Pacific Partners Consulting Group and former Assistant Vice President of Information Resources at Stanford University, “each $1 in deferred maintenance costs $4 of capital renewal needs in the future.”

For example, postponing upgrades to aging HVAC systems or water and wastewater infrastructure is tempting. After all, while they are workhorse assets, they aren’t as appealing as a new community center. But what if these critical assets fail unexpectedly?

Reactive maintenance usually comes with a price tag that may be overlooked in the budget – which may divert funding away from serving the community to pay for costly emergency repairs.

Delaying upgrades can also carry safety risks. Facility managers are held accountable for providing safe environments for all building occupants. For example, infrastructure upgrades like modern HVAC and lighting systems increase the efficiency of facilities, ultimately costing less for energy and maintenance. These upgrades also create an optimal living, learning, and working environment by ensuring proper ventilation, indoor air quality, and lighting. In the case of water facilities, there can be no compromise on quality standards, and they must provide reliable service and meet regulatory and environmental demands at all times – upgrades address resilience needs and costly water loss.

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Not to mention, constantly battling failure after failure with outdated energy infrastructure is not the best use of a facility manager’s time and budget. Operating in a reactive mode is stressful and time-consuming.

Reason 4. Taxpayers want to see their tax dollars at work

Constituents want to see demonstrated value with their money. They also don’t like to see tax increases, so it’s essential to maximize tax dollars for improvements that are important to the community. These could include cutting-edge buildings, curb appeal, recreational activities, economic prosperity, high property values, environmental commitment, and ensuring safety through fire stations and other emergency services.

Unaddressed infrastructure upgrades can be frustrating on many levels – regarding outdated assets’ visual appearance plus issues that directly impact safety and comfort – like HVAC system failures, uncomfortable lighting, and even loss of power during power outages. Reactive maintenance is a vicious cycle of postponing and emergency fixing. Making infrastructure upgrades now frees up time and budget so you can prioritize serving the community.

Reason 5. Funding options and the right partner make it achievable

Addressing a deferred maintenance backlog and moving energy infrastructure upgrades up the priorities list has short and long-term financial benefits, helping achieve economic and environmental goals and satisfying the demands of stakeholders. Upgrading aging energy assets and implementing cutting-edge integrated energy solutions can simultaneously deliver financial and decarbonization results, enabling you to unlock opportunities to monetize energy infrastructure and reduce overhead costs.

While reaching energy infrastructure and carbon reduction goals is easy to say, it can be hard to do. To get there, complex technical challenges and competing budget priorities may need to be overcome. It can be daunting – where to start, and how to fund necessary upgrades without diverting precious capital away from critical services will be questions that require answers.

The good news is that lack of capital is not a barrier to accessing these opportunities. A variety of financing mechanisms are available to fund the infrastructure improvements needed to reduce energy costs quickly, reduce carbon emissions, and even reclaim revenue from energy infrastructure – without taking on additional debt. In particular, an Energy Performance Contract, or EPC, is a great option to leverage, as it helps special districts maintain budget neutrality and overcome capital constraints while implementing needed upgrades. This financing method requires no initial investment, and it uses the energy savings achieved by the infrastructure upgrades to finance the cost of the upgrades.

Successful energy and infrastructure upgrades need to achieve the right balance between three priorities: Cost efficiency, energy resilience, and carbon reduction. Working with the right partner is essential to ensure implementation of successful infrastructure upgrades while remaining aligned to strategic and financial goals. Centrica Business Solutions is a DOE-qualified and NAESCO-accredited energy services company that works with all areas of special districts to integrate sustainable energy solutions and remove complexity. We deliver a full range of bundled end-to-end energy solutions and services that optimize energy and infrastructure comprehensively – for maximum energy savings and carbon reduction.

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