Ask the Experts Avoiding Conflicts of Interest and Maintaining Public Trust

By Alex Mog, Of Counsel, Meyers Nave

Maintaining public trust is critical for elected and appointed officials serving in the public sector. The loss of public confidence can greatly impede a district’s ability to fulfill and further its core mission and lead to dysfunction. While every community is unique, there are certain steps that will help all officials effectively serve.

Understand and Follow Conflict of Interest Laws. The quickest way for a public official to lose the trust of the public is to participate in a decision for which they have a conflict of interest. California has a few major rules governing potential conflicts of interest including the Political Reform Act, Government Code section 1090, and the Common Law Conflicts of Interest Doctrine.

Applying these rules can be complicated, and if you are unsure about whether a rule applies, it’s important to seek assistance as soon as possible. If the first time a potential conflict is raised is during a public meeting, not only will there be insufficient time to analyze the issue, but you’ll also be unprepared to explain the situation to the public. Accordingly, public officials should reach out to their district managers and general counsel as soon as possible when they become continued on page 18... aware of a potential issue. If there is adequate time, you can also seek written advice from the Fair Political Practices Commission.

Comply with Pay to Play Rules. Effective January 1, 2023, SB 1439 came into effect. The law prohibits elected officials from accepting, soliciting, or directing a contribution of $250 or more from a “party” or “participant” in a proceeding involving a license, permit, or other entitlement, when the proceeding is pending and for 12 months following the date a final decision is made. The restriction also applies to most contracts. Similar rules previously applied to appointed officials. On June 15, 2023, the Fair Political Practices Commission adopted new detailed regulations implementing this law. Complying with this law is critical, as much of the public often perceives campaign contributions as potentially quid-proquo arrangements.

Always Observe the Brown Act. The Brown Act is California’s open meeting law for local agencies. It prohibits a majority of the legislative body from hearing about, discussing, deliberating, or taking action on an item within its jurisdiction except in a noticed meeting, with limited exceptions. Noticed meetings must have posted agendas. Although adhering to these restrictions may appear tedious, The Brown Act is designed to ensure transparency in conducting the public’s business. Violations of The Brown Act interfere with the public’s right to participate in the decision-making process, thus directly impacting the public’s confidence in their local agencies. Pre-meeting discussions between an official and agency staff to understand issues are permissible, but decisions made with little discussion or minimal questions during public meetings can create perceptions of decisions being made behind closed doors.

Be Mindful of Perception. Even when a public official’s conduct doesn’t violate any laws or regulations, the public may think differently. As a public official, it’s important to ask yourself, how will I feel if there is a story about this on the cover of the newspaper (or the front page of the local blog)? This doesn’t mean public officials should recuse themselves from decisions unnecessarily- officials are elected/appointed to make decisions, and they should participate when allowed. However, directly acknowledging and explaining a perceived issue to the public before or during a meeting can help maintain public trust and confidence as much as possible.

By adhering to these best practices, California public officials can build and sustain public trust, enabling them to effectively serve their communities while advancing their district’s core mission.

Learn more on this topic from Alex Mog at the CSDA Annual Conference & Exhibitor Showcase session, “Avoiding Conflicts of Interest and Maintaining Public Trust.” https://www.csda.net/member-resources/career-center

After 31 years serving the community at South Tahoe Public Utility District (District), General Manager John Thiel is pulling anchor and heading to southern California as the new General Manager of the West Valley Water District.

In June, the South Tahoe Public Utility District’s Board of Directors unanimously approved a resolution honoring John for his 31 years of service. Thiel began his career at the District in 1992 and worked his way up from Staff Engineer, Senior Engineer, Principal Engineer, Engineering Department Manager, and finally to General Manager in 2018. The resolution highlighted Thiel’s role in strengthening relationships within the community and expanding the District’s data drive approach to prioritizing the repair and replacement of aging assets.

Congratulations to Matt Clutterbuck who currently serves Special District Risk Management Authority as their new Chief Financial Officer, overseeing all aspects of finance and accounting. He previously served a large consumer manufacturing company based in Northern California as the accounting manager where he oversaw the accounting department, financial reporting, and the year-end audit. Additionally, he served as a senior external auditor within the Audit and Assurance practice at Deloitte & Touche where he specialized in real estate, manufacturing, life science and technology sectors serving private, pre-IPO, and public clients in Sacramento, the Bay Area, and San Francisco.

Cambria Community Services District’s new General Manager, Matthew McElhenie, was announced at the end of April. With a background in emergency services and leadership in academia, McElhenie said, “I am committed to upholding transparency, accountability and inclusivity in all aspects of city governance.”

Cosumnes Community Services District is excited to announce that Phil Lewis will serve as their next CEO/General Manager. Phil joined the Cosumnes Community Services District in October 2020 as the Parks and Recreation Administrator and has over 25 years of experience in public service.

The Las Virgenes Municipal Water District was awarded the California Association of Public Information Officials (CAPIO) 2023 Frank Potter Cowan Crisis Communicator Award in May. The District was honored for their dedication, perseverance, and customer-service central approach during the most critical months of the state-wide drought.

Santa Clarita Valley Water (SCV Water) hired Kevin Strauss as its next Communications Manager. Strauss comes from six years as Communications Specialist with the City of Santa Clarita. He replaced Kathie Martin, Communications Manager since December 2017, who retired June 15. Strauss will oversee a team of twelve in public outreach and education. His responsibilities will include oversight of outreach and engagement strategies on a wide spectrum of priorities for SCV Water, as well as employee engagement and legislative affairs.

Coachella Valley Water District (CVWD) Vice President Cástulo Estrada was elected to the Board of Commissioners for the Local Agency Formation Commission (LAFCO) for the eastern district of Riverside County. Estrada joins the sevenmember LAFCO Board as a special district representative. The LAFCO Board includes two Riverside County Supervisors, two City Council representatives, two special district representatives, and a member of the public.

Elsinore Valley Municipal Water District (EVMWD) is proud to announce that one of its own board directors, Darcy Burke, has been appointed to the United States Environmental Protection Agency’s (US EPA) Local Government Advisory Committee (LGAC).

Established in 1993, the LGAC is a critical advisory body for the US EPA, providing guidance on a wide range of environmental policies and programs. Composed of local elected officials and appointed representatives from across the country, the LGAC helps ensure the voices of local communities are heard in the development of national environmental policies. The LGAC is chartered under the Federal Advisory Committee Act, which regulates and governs its operation.

Adnan Anabtawi has been appointed as the next General Manager for the Mojave Water Agency effective April 5. He had previously served as Assistant General Manager. “The Board unanimously selected Adnan and has great confidence in his ability to lead this Agency,” said Board President Mike Page. “He brings extensive knowledge and is engaged in critical state water issues, has successfully managed key capital projects with the Mojave Water Agency, and has demonstrated his abilities to effectively work with staff to continue to enhance the Agency’s culture.”

Congratulations to the 2022 Santa Barbara CSDA Chapter Award Winners, honored at the chapter’s annual awards dinner in May. (L-R): Staff Person of the Year Vesna Ibarra of Mosquito and Vector Management District of Santa Barbara County; Goleta Sanitary District Director Sharon Rose, honored for her two years of service as chapter president; CPA Carrie Troup, Contractor of the Year; and Mosquito District General Manager Brian Cabrera, who nominated two of the award winners. Not pictured: Chapter General Manager of the Year John McInnis of Goleta Water District.