2023 California Special Districts Magazine November – December

california

SPECIAL DISTRICTS A Publication of the California Special Distric ts Association Volume 18, Issue 6 • November-December 202 3

MONEY MATTERS Santa Cruz Port District's Resilience:

Navigating the Impact of a Cancelled Salmon Fishing Season PAGE 44

Managing Risks Encouraging a Culture of Safety Page 35 Manager's Corner Effective Tips for Stellar General Managers Page 40

California Special Districts Alliance The California Special Districts Alliance is a collaborative partnership between the California Special Districts Association (CSDA), the CSDA Finance Corporation (CSDAFC), and the Special District Risk Management Authority (SDRMA). These three highly respected statewide organizations join forces to help special districts in California better serve their communities.

CSDA Board and Staff OFFICERS

ELAINE MAGNER, PRESIDENT, Pleasant Valley Recreation and Park District PETE KAMPA, VICE PRESIDENT, CSDM, Groveland Community Services District DON BARTZ, CSDM, SECRETARY, Phelan Pinon Hills Community Service District LORENZO RIOS, TREASURER, Clovis Veterans Memorial District RYAN CLAUSNITZER, CSDM, PAST PRESIDENT, Alameda County Mosquito Abatement District

MEMBERS OF THE BOARD

KIMBERLEE SENEY, Gold Mountain Community Services District FRED RYNESS, Burney Water District GREG ORSINI, McKinleyville Community Service District NOELLE MATTOCK, El Dorado Hills Community Services District JERRY L. GILMORE, Truckee Sanitary District CHAD DAVISSON, CSDM, Ironhouse Sanitary District PATRICK OSTLY, North of River Sanitary District #1 VINCENT FERRANTE, Moss Landing Harbor District ARLENE SCHAFER, Costa Mesa Sanitary District JO MACKENZIE, Vista Irrigation District

STAFF

NEIL MCCORMICK, Chief Executive Officer MEGAN HEMMING, Professional Development Director KYLE PACKHAM, Advocacy & Public Affairs Director CASSANDRA STRAWN, Member Services & Communications Director RICK WOOD, Finance & Administration Director TOMICKO ABELLA, Member Services Representative AARON AVERY, Senior Legislative Representative EMILY CHA, Database & Online Communities Specialist MARCUS DETWILER, Associate Legislative Representative BRENT FARRAR, D esign & Websites Manager AUBREY GOHL, Member Services Representative VANESSA GONZALES, Communications Specialist COLLEEN HALEY, Public Affairs Field Coordinator LILIA M. HERNANDEZ, Legislative Assistant MUSTAFA HESSABI, Deputy General Counsel MICHAEL MEYER, Member Services Specialist CHRIS NORDEN, Public Affairs Field Coordinator RICHELLE NOROYAN, Public Affairs Field Coordinator CHRIS PALMER, Senior Public Affairs Field Coordinator AMBER PHELEN, Executive Assistant RACHAEL POPPINO, Professional Development Assistant JENNIFER SMITH, Professional Development Coordinator ERIC SPENCER, Member Services Specialist SUSAN STAUTS, Member Services Representative OPHELIA SZIGETI, L egislative Analyst ANTHONY TANNEHILL, Legislative Representative DANE WADLÉ, Senior Public Affairs Field Coordinator KRISTIN WITHROW, Communications Specialist

SDRMA Board and Staff OFFICERS

CSDAFC Board and Staff OFFICERS

MEMBERS OF THE BOARD

MEMBERS OF THE BOARD

SANDY SEIFERT-RAFFELSON, PRESIDENT, Herlong Public Utility District ROBERT SWAN, VICE PRESIDENT, Groveland Community Services District JESSE CLAYPOOL, SECRETARY, Honey Lake Valley Resource Conservation District

DAVID ARANDA, CSDM, Stallion Springs Community Services District MIKE SCHEAFER, Costa Mesa Sanitary District TIM UNRUH, CSDM, Kern County Mosquito & Vector Control District THOMAS WRIGHT, Clovis Veterans Memorial District

CONSULTANTS

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

BRIAN KELLEY, MBA, ARM, Chief Executive Officer DEBBIE YOKOTA, AIC, Chief Risk Officer MATT CLUTTERBUCK, Chief Financial Officer WENDY TUCKER, Claims Manager ALANA LITTLE, Health Benefits Manager ENRIQUETA (HENRI) CASTRO, Risk Control Manager ROBERTO LOZANO, Claims Manager ALLISON BATEMAN, PHR, HR/Office Manager PETR KOVALCHUK, Finance Manager MARGARITO CRUZ, Senior Accountant DANNY PENA, Senior Claims Examiner ERIC LUCERO, Senior Risk Control Specialist TERESA GUILLEN, Member Services Specialist II MICHELLE BROWN, Health Benefits Specialist II CANDICE RICHARDSON, Management Analyst KEITH IKAMI, Claims Examiner I LISA SANDOVAL, Member Services Specialist I LILLI VINNL, Accounting Technician Special District Risk Management Authority 1112 I Street, Suite 300 Sacramento, CA 95814 tel: 800.537.7790 www.sdrma.org

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

MATTHEW MCCUE, Coachella Valley Cemetery District GREG ORSINI, McKinleyville Community Service District

CONSULTANTS

RICK BRANDIS, Brandis Tallman, a Division of Oppenheimer & Co. Inc. JEFF LAND, Brandis Tallman, a Division of Oppenheimer & Co. Inc. DAVID MCMURCHIE, CSDAFC Legal Counsel WILLIAM MORTON, Municipal Finance Corporation STEFAN 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 & Administration Director CSDA Finance Corporation 1112 I Street, Suite 200, Sacramento, CA 95814 tel: 877.924.2732 www.csdafinance.net

California Special Districts Association 1112 I Street, Suite 200 Sacramento, CA 95814 toll-free: 877.924.2732 www.csda.net

1 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

CONTENTS 3

CEO's Message

32

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Professional Development 2024 CSDA Special District Leadership Academy Conferences

Take Action Capitol Staff Delegation Tour Bay Area Special Districts

35

Managing Risks Encouraging a Culture of Safety

38

Solutions & Innovations Partnership Leads to a Sustainable Water Future for Orange County

40

Manager's Corner Effective Tips for Stellar General Managers

42

Districts Make the Difference Don’t Be Shy! Grab the Spotlight!

44

Money Matters Santa Cruz Port District’s Resilience: Navigating the Impact of a Cancelled Salmon Fishing Season with California CLASS

6

CSDA News

8

2023 CSDA Highlights

14

In Review 2023 CSDA Annual Conference & Exhibitor Showcase

17

Ask the Experts IRS Reporting of Board Member Compensation - 1099 or W-2

18

Interview Hollingsworth Award Winner Vince Ferrante: Championing Special Districts and Community Service

21

Tech Tips Transforming Citizen Engagement:Mobile Apps for Government Agencies

47

National Special Districts Coalition It is Finally Time to Define and Count Special Districts

24

Feature How Coachella Valley Water District’s Stormwater Protection Systems Mitigated the Damage from Tropical Storm Hilary

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Legal Brief: The California Air Resources Board’s Advanced Clean Fleets Regulation and What it Means for State & Local Government Agencies

Community Connections Educational Oasis:Westminster Park’s Transformation for a Water-Smart Future

52

29

Got Governance Your District’s Board Has a Vacancy . . .

Now What?

What's So Special From Rock Bottom to Campground: Dumbarton’s Fantastic Transformation

55

Business Affiliate Highlight

56

Business Directory

18

Interview Hollingsworth Award Winner Vince Ferrante: Championing Special Districts and Community Service

47

National Special Districts Coalition It's Finally Time to Define and Count Special Districts

2

CEO'S MESSAGE

A Year of Progress & Growth As we approach the end of another remarkable year, I am delighted to share some exciting news and an achievement that has marked our journey in 2023. It has been a year filled with progress, growth, innovation, and a renewed commitment to serving our members.

One of the highlights over this last year has been the successful launch and growth of our new CSDA Member Program: California CLASS. Established just over a year ago, California CLASS was designed with a singular purpose – to empower California public agencies by providing a versatile and valuable tool for enhancing their investment portfolios’ diversification.

We recognized the need for a program that would not only serve the unique requirements of California agencies, including special districts, but also foster opportunities for CSDA members to expand investments into a solid, well-run local government investment pool (LGIP). California CLASS was our answer to this challenge.

CSDA is a co-sponsor of the program, and, in just a short time, we have experienced remarkable growth in California CLASS. We have proudly welcomed over 125 agency participants into the program already and are quickly approaching managing ONE BILLION DOLLARS in assets. This achievement is a testament to the trust and confidence that our members have placed in CSDA, the program, and our partners. We are deeply grateful for everyone’s support.

What truly sets California CLASS apart is the impressive performance we have achieved since its inception. From July 2022 to July 2023, the Prime Fund generated millions of dollars in investment income for the participating agencies. This is a clear demonstration of the effectiveness of the program in helping our members achieve their financial goals.

Neil McCormick CSDA Chief Executive Officer

As we look back on the journey of California CLASS in 2023, we can’t help but feel inspired by the positive impact it has had on our participating members. In fact, already, over 80% of the participants in the program are special districts and those numbers are growing each week! But ultimately, it’s not just about numbers; it’s about empowering public agencies to better serve their constituents, invest in their future, and create a more resilient financial foundation.

None of this would have beven possible without the dedication of our team here at CSDA as well as important partners like California CLASS Administrator/Investment Advisor, Public Trust Advisors, and the other co-sponsor of the program, League of California Cities. I want to express my heartfelt gratitude to all involved and especially the CSDA members that are already participating.

GET INVOLVED: If you haven’t started the process to get your district involved, learn more at www.californiaclass.com and you’ll soon find out why so many of your peers have placed their trust in California CLASS! Included in this issue are six extra pages focused on all of the major 2023 CSDA Highlights that demonstrate the progress and growth we have achieved this year. Be sure to check it out and see how your association is representing and working for you.

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ProDev 2024 CSDA Special District Leadership Academy Conferences Registration Now Open!

This conference content is based on CSDA’s Special District Leadership Academy (SDLA) groundbreaking, curriculum-based continuing education program, which recognizes the necessity for the board and general manager to work closely toward a common goal. SDLA provides the knowledge base to perform essential governance responsibilities and is designed for both new and experienced special district board members.

Join us for CSDA’s comprehensive governance leadership conference for elected and appointed Directors/Trustees.

2024 will feature three opportunities for training throughout the state!

February 4 – 7, 2024 - San Luis Obispo** April 14 – 17, 2024 – San Diego* November 3 – 6, 2024 – San Rafael* Participate in the Special District Leadership Academy Conference to complete all four modules of the Academy over the course of two and a half days. Another option in 2024: Complete all four modules of the Special District Leadership Academy as virtual workshops over the course of eight half-days.

*First-time and returning track options **First-time track only

Visit the https://www.csda.net/member-resources/career-center 4

SPECIAL DISTRICT LEADERSHIP FOUNDATION

Contact SDLF at info@sdlf.org for details.

Phone: 916-231-2909 Fax: 916-442-7889

sdlf.org

5 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

CSDA News The CSDA Advocacy News Blog is Your Ticket to Real-Time Updates!

For members of CSDA, staying well-informed about the latest developments in the world of special districts is not a luxury—it’s a necessity. Fortunately, CSDA offers an invaluable resource through its Advocacy News Blog, providing real-time updates and insights tailored to the unique needs and concerns of district members.

Subscribing to this blog isn’t just convenient; it’s a strategic advantage that keeps you ahead of the curve in a rapidly evolving legislative landscape.

policy that could impact the special district community.

Timely information empowers district members to make informed decisions, adapt to new challenges, and advocate effectively for their district and communities. In a dynamic environment where every decision counts, subscribing to the CSDA Advocacy News Blog is your ticket to staying informed, connected, and engaged like never before.

Don’t miss out on this exclusive member resource - and remember you can customize your news feed https://qrco.de/beTxgd to a daily or weekly digest!

CSDA members can access this important resource for free.

Whether it’s tracking legislative changes that affect special districts, understanding emerging trends and proposals, or staying updated on crucial advocacy efforts, the Advocacy News Blog offers a direct line to legislation and

2024 Board Officers/Executive Committee President

Treasurer

Vice-President

Past President

ELAINE MAGNER Pleasant Valley Recreation and Park District

LORENZO RIOS Clovis Veterans Memorial District

PETE KAMPA, CSDM Groveland Community Services District

RYAN CLAUSNITZER, CSDM Alameda County Mosquito Abatement District

Secretary

DON BARTZ, CSDM Phelan Pinon Hills Community Services District

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DATES & DEADLINES Meetings & Events 2024 CSDA Conferences

CSDA Annual Awards

Special District Leadership Academy (Central/Coast) San Luis Obispo, February 4 – 7, 2024

2024 CSDA Annual Award Nominations Open January 23 - May 1, 2024

SDRMA Spring Education Day Sacramento, March 25 (optional reception) and March 26, 2024

DMTD Student Video Contest

Special District Leadership Academy (South) San Diego, April 14 – 17, 2024 Special Districts Legislative Days Sacramento, May 21 - 22, 2024 General Manager Leadership Summit Anaheim, June 23 – June 25, 2024

2024 Districts Make the Difference Video Contest Open January 2 - March 31, 2024

Go to the CSDA Events Page https://qrco.de/bddc8t

CSDA Annual Conference & Exhibitor Showcase Palm Springs area, September 9 – 12, 2024 Board Secretary / Clerk Conference San Diego, October 21 – 23, 2024 Special District Leadership Academy (North) San Rafael, November 3 – 6, 2024

Send Your Breaking News to Us Send articles or ideas to membership@csda.net for consideration in the California Special Districts magazine, CSDA eNews, the CSDA website, or on our social media channels.

7 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

2023 HIGHLIGHTS

INVESTMENT

ENHANCED

TECHNOLOGY

OPTIONS FOR SPECIAL DISTRICTS

CSDA Is Working On Technology Upgrades That Will Enhance Your Experience With Our Association.

New CSDA Member Program Launched: California CLASS

A new year-round CSDA mobile app will be launched in the beginning of the year

Established in 2022, California CLASS serves California public agencies and can be a great tool for enhancing your agency’s portfolios’ diversification.

» Real-time updates

• 100+ participants

» Event notifications

• ~ $750 million assets managed

» Connection with your peers

• $2 million+ earned in investment income in Prime Fund July 2022-July 2023.

Coming soon! Website updates: » Easy access to information and resources

Learn More: www.californiaclass.com

» Engagement opportunities

CSDA MISSION

California Special Districts Association is the voice for all special districts, providing members with the resources necessary to best serve their communities.

MEMBERSHIP New Members by CSDA Network: Bay Area

6

Central

9

Coastal Northern

11 4

+ 70 ORGANIZATIONS JOINED IN 2023

Sierra

13

Southern

17

Out of State

12

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2023 C S DA HIGHLIGHTS

ENGAGEMENT 90,000+

705,000+

people reached on social media channels

CSDA’s redesigned eNews and magazine added 8 new sections of engaging and informative content and a refreshed design that

visitors to the CSDA website

provides better readability for members.

• 78,000+ California Special Districts magazines distributed to agencies and Legislators

16,000+

• 11,000+ Recipients of weekly CSDA eNews

engaged in CSDA Communities

COURT REPRESENTATION FOR SPECIAL DISTRICT INTERESTS

12+ 4

TRACKED

APPROVED

BRIEFS FOR FILING, WITH 2 MORE IN CONSIDERATION

CASES

• California Supreme Court

Issues Addressed:

• Ninth Circuit Court of Appeals

• Impact Fees adopted pursuant to the Mitigation Fee Act

• U.S. Supreme Court

• California Public Records Act • Rate-setting under Proposition 218 • Labor Code – Wage Order Claims

PROFESSIONAL DEVELOPMENT ANNUAL CONFERENCE & EXHIBITOR SHOWCASE

31

%

First-Time Attendess

20% First-Time Exhibitors

15% Attendees Growth (yr/yr)

Viewership Growth

Registration Growth

21%

WEBINAR, WORKSHOP AND CONFERENCE

9 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

33% ON DEMAND

2023 C S DA HIGHLIGHTS

2023 CSDA ANNUAL AWARDS WINNING SUBMISSIONS FROM EACH CATEGORY:

Exceptional Public Outreach & Advocacy Award (Large District Category) : Tahoe City Public Utility District for its Action to Protect Communities from Wildfires

Ralph Heim Public Outreach & Advocacy Award: Emily Barnett, Communication Services & Inter Governmental Relations Manager, Central Contra Costa Sanitary District

Exceptional Public Outreach & Advocacy Award (Small District Category) : Reclamation District No. 1000 for its public relations campaign 4Natomas - Levees. Lift Pumps. Lives. Longevity.

William Hollingsworth Award of Excellence (pictured below): Vincent Ferrante, Moss Landing Harbor District

Innovative Project of the Year Award (Large District Category) : Orange County Water District and Orange County Sanitation District for their Recycling 100 Percent Local Reclaimable Wastewater Flows into High-Quality Drinking Water Innovative Program of the Year Award (Small District Category) : Camarillo Health Care District for its Adventures in VR program.

Excellence in Technology Award: Soquel Creek Water District for using innovative technologies to ensure a sustainable water supply Chapter of the Year Award: Tuolumne County Special Districts Association Staff Member of the Year Award: Bridgette Burton, Management Analyst/ Board Secretary, Big Bear Area Regional Wastewater Agency Board Member of the Year Award: Charley Wolk, Fallbrook Public Utility District General Manager of the Year Award: Peter J. Kampa, CSDM, Groveland Community Services District

BUSINESS AFFILIATES DIAMOND LEVEL

PLATINUM LEVEL

GOLD LEVEL Brown Armstrong Accountancy Corporation CalTRUST Centrica Business Solutions Chase Bank Cole Huber LLP Complete Paperless Solutions Eide Bailly CPAs Enterprise Automation Kosmont Financial Services National Demographics Corporation

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(NDC) NBS Nextdoor, Inc. Nossaman, LLP SitelogiQ Slovak Baron Empey Murphy & Pinkney LLP Tyler Technologies, Inc. Vasquez & Company LLP VC3 Witt O'Brien's 2023 C S DA HIGHLIGHTS

SPECIAL DISTRICT LEADERSHIP FOUNDATION

61 278

Certified Special District Managers Designated

Certificates in Special District Governance Awarded

NEW! ESSENTIAL LEADERSHIP SKILLS CERTIFICATE LAUNCHED

RECOGNITION PROGRAM FOR ASPIRING MANAGERS

ESSENTIAL LEADERSHIP SKILLS CERTIFICATE Offers special district employees who are aspiring to be general managers the opportunity to be recognized for learning essential skills needed for success in local government leadership. www.sdlf.org

NATIONAL SPECIAL DISTRICTS COALITION FOUNDING MEMBER OF

• Direct engagement in Washington D.C. promoting priority policy initiatives including the Special Districts Recognition Act developed to place a formal definition for special districts nationally • Forged coalition to curb federal regulations hindering fire retardant use on wildfires • Joined the national Public Finance Network as an advocate for favorable public finance policies • Helped prevent removal of consideration of park and recreation projects from the Fiscal Year 2024 Community Project Funding Program • Established 3 new policy advisory groups to engage on federal and state issues with districts across the country

11 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

2023 C S DA HIGHLIGHTS

ADVOCACY: THE VOICE OF SPECIAL DISTRICTS CSDA Sponsored Legislation » AB 557 (Hart) B rown Act – Emergency remote meetings » SCR 52 (Alvarado-Gil) – Special Districts Week

3,000 Reviewed State Bills

1,183 Actively Tracked Bills

97 Adopted Priority Positions on Bills

CSDA Legislative Representative, Marcus Detwiler, presents argument in favor of AB 557.

At the Forefront of the Fight Against an Existential Threat to Special District Services When the California Business Roundtable filed Initiative 21-0042A1 (now #1935) to retroactively incapacitate the ability of special districts and other agencies to fund government services, CSDA immediately adopted an oppose position, joined a coalition with key stakeholders, and began educating its membership. These efforts are gaining traction. » ACA 13 (Ward) Protect and Retain the Majority Vote Act – CSDA was one of the original supporters of this constitutional amendment to uphold the majority vote and force measures like Initiative #1935 to meet the same voter thresholds they seek to impose on others. ACA 13 was approved by two-thirds of each house of the State Legislature to place on the November 2024 statewide ballot. » Preelection Challenge to Initiative #1935 – CSDA moved swiftly to support the filing of the Governor and Legislature’s preelection challenge to Initiative #1935, asking the California Supreme Court to conduct preelection review and prevent the measure from being placed on the ballot. » Special District Resolutions in Opposition – Over 111 special districts have now adopted a board resolution in opposition to Initiative #1935.

Protecting Local Revenue and Resources As one of the most efficient and effective forms of government, special districts often do more with less. CSDA is fighting in the Capitol to ensure special districts have the resources they need to deliver the services their communities depend on. » ACA 1 ( Aguiar-Curry) 55 Percent Vote Threshold – CSDA secured inclusion of special districts when this constitutional amendment was originally introduced in a prior session; ACA 1 passed the Legislature and voters will now decide whether to afford special districts and other local agencies with the same financing tools they previously approved for school districts. » AB 516 (Ramos) Mitigation Fee Act – Led efforts to resolve issues created by revisions to audit requirements for development project fees. » AB 1713 (Gipson) Federal Funding – Joined local agency stakeholders in opposition to this bill which would have created overly broad reporting requirements. » AB 1490 (Lee) Housing – Secured amendments to drop provisions that could have potential to threaten fee-related revenue that may be necessary for covering the costs of development projects, as a result, CSDA moved to a Neutral position. » AB 1637 (Irwin) Web Domain Mandate – CSDA worked with a coalition with an Oppose Unless Amended position that resulted in an amendment limiting the bill’s requirement that all local governments transition to .gov websites to apply to cities and counties only.

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2023 C S DA HIGHLIGHTS

Surplus Land Act In response to California’s housing challenges, the State Legislature has taken a critical look at numerous housing-related policies, some of which would lead to unintended or counter-productive consequences if not for the CSDA-led local government coalition advocating on behalf of those who provide the essential services that support housing and affordable living. » SB 747 (Caballero) – Support with Negotiated Amendments » AB 480 (Ting) – Neutral with Amendments » AB 457 (Patterson, Joe) – Neutral with Amendments » SB 34 (Umberg) – Neutral with Amendments » SB 229 (Umberg) – Neutral with Amendments » SB 634 (Becker) – Opposed Unless Amended

CSDA Senior Legislative Representative, Aaron Avery, presents argument to amend SB 34.

Protecting Operations Through Advocacy Special districts employ over 160,000 front-line workers and contract for the design and construction of much of California’s core infrastructure. CSDA worked to ensure these local service specialists can best serve the communities that rely on special districts. » AB 400 (Rubio, Blanca) – Design-Build: Support » AB 504 (Reyes) – Sympathy Strikes: Oppose » AB 1484 (Zbur) – Temporary Workforce: Oppose » SB 149 (Caballero) – California Environmental Quality Act: Support » SB 252 (Gonzalez) – CalPERS Divestment: Oppose » SB 399 (Wahab) – Political Job Duties: Oppose » SB 706 (Caballero) – Progressive Design-Build: Support » SB 799 (Portantino) – Unemployment Insurance: Oppose

CARB Advance Clean Fleet (ACF) Zero Emission Medium-Duty and Heavy-Duty Vehicle Mandate CSDA advocated directly with CARB members and staff, provided written comments, and testified in opposition to the regulation during the public hearing, citing timeline, cost, infrastructure and emergency response concerns. As a result of CSDA and coalition efforts, CARB instituted numerous revisions, expanding opportunities for exemptions and extensions, including a “Milestone” implementation option that provides special districts and other local agencies with significantly more time for implementation.

13 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

2023 C S DA HIGHLIGHTS

In Review

2023 CSDA Annual Conference & Exhibitor Showcase August 28 - 31, 2023, Monterey 1

Our new kayak event for the young professionals group was a blast!

2

We appreciate our sponsors and exhibitors who provide valuable products and services that enhance special districts’ impact on their communities!

3

Sponsored by California CLASS, FutureSight Labs CEO Seth Mattison presented the opening keynote, “The Heart of Leadership: The Secret & Science to Influencing & Leading During Transformation.”

4

Attendees get to network with colleagues from their own district and others.

5

Attendees enjoyed the pre-conference Elkhorn Slough Safari Boat Tour and Moss Landing Harbor District tour.

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(L-R): CSDA Advocacy & Public Affairs Director Kyle Packham, CSDA Legislative Representative Marcus Detwiler, CSDA Senior Legislative Representative Aaron Avery, CSDA Deputy General Counsel Mustafa Hessabi, and NSDC Director Cole Arreola-Karr.

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Expert panelists educate attendees on important topics.

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Matthew Luhn, a 20-year Pixar story veteran, presented an inspiring keynote on “Storytelling for Business” during the SDRMA General Session.

10 This is one of our favorite events – fun and raising

money with the silent auction and raffle to benefit the Special District Leadership Foundation!

11 Our Chapter Roundtable is a growing event that brings together the chapters around the state.

Connect and Collaborate is one of our favorite opportunities for attendees to meet with their district types to share and learn from each other. Special thanks to David Aranda for leading this program.

Attendees enjoyed this year’s music theme in the

12 photo booth in the Connection Spot!

Thank you to our 2024 CSDA Annual Conference & Exhibitor Showcase Sponsors!

CHAMPION SPONSORS ($10,000+) California CLASS California Special Districts Alliance Special District Leadership Foundation Special District Risk Management Authority ADVOCATE SPONSORS ($2,501 - $9,999) California Bank of Commerce Five Star Bank Liebert Cassidy Whitmore

Richards Watson Gershon Streamline Umpqua Bank FRIEND SPONSORS ($750 - $2,500) AllPaid Atkinson, Andelson, Loya, Ruud & Romo Best Best & Krieger LLP Brandis Tallman, a Division of Oppenheimer & Co. Inc. California Asset Management Program Chase Bank

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Cole Huber LLP CPS HR Consulting Enterprise Holdings GovDeals, Inc. Kutak Rock, LLP Municipal Finance Corporation Nossaman, LLP SitelogiQ Slovak Baron Empey Murphy & Pinkney LLP Terracon Consultants, Inc. Wells Fargo Bank Witt O’Brien’s

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15 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

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CSDA Support Page

Get a Hold of Us We are always on the lookout for articles and topic ideas.

Where do I find my certificates?

For editorial inquiries, contact CSDA Communications Specialist Vanessa Gonzales, at 877.924.2732 or membership@csda.net.

How do I log in?

For advertising inquiries, contact CSDA at 877.924.2732 or advertising@csda.net.

California Special Districts Association 1112 I Street, Suite 200 Sacramento, CA 95814 toll-free: 877.924.2732 www.csda.net

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16

Ask the Experts IRS Reporting of Board Member Compensation - 1099 or W-2

By Richard D. Pio Roda, Principal, Meyers Nave

Question:

I am an elected official of an independent special district in California. I am paid by my special district for my service. How should such income be reported to me by the special district?

Answer:

This question frequently arises during tax time. To clarify, I am not a tax attorney and am not providing tax advice. Further, this is not legal advice. If you have specific questions about your compensation as a special district elected official, or about whether you receive compensation for your services at all, you should consult your district’s counsel. However, if you are merely reimbursed by your district for expenses you’ve paid upfront in the course of performing your duties as an elected official, and do not receive a salary or other remuneration, then this information doesn’t pertain to you.

Photo by Jonathan Borba on Unsplash

With these clarifications in mind, the basic answer to this question is as follows: • Internal Revenue Code section 3401(c) indicates that an elected official of a government agency is considered an employee for income tax withholding purposes. Therefore, if you are compensated through a salary, or for attending meetings, the special district is responsible for withholding and paying Federal income tax, social security, and Medicare taxes.

• This mandates the special district to issue a W-2, Wage and Tax Statement, to the elected official. IRS publications regarding this Internal Revenue Code section further provide that courts generally define “public official” and “public officer” as anyone who exercises significant authority pursuant to public laws. This includes officials who administer or enforce public laws, regardless of whether they were elected by the public or appointed by another legislative body.

• For most independent special districts in California, if you were elected to your special district board, or appointed to serve on that board to fill a vacancy due to a resignation or other reasons, you qualify as a public official for IRS purposes.

Richard Pio Roda is the Chair of the Municipal and Special District Law Practice Group at Meyers Nave. He is a skilled strategic advisor and experienced transactional attorney in the areas of corporate counsel, technology transactions, land use, real estate, education law, and contracts and procurement for government agencies as well as corporate, nonprofit, and healthcare entities throughout California.

17 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

Interview Hollingsworth Award Winner Vince Ferrante:

Championing Special Districts and Community Service

By Kristin Withrow, CSDA Communications Specialist

In the heart of California’s Central Coast, between eclectic Santa Cruz and the marine sanctuary of Monterey Bay, you’ll find a man whose name is synonymous with dedication, commitment, and passion for special districts.

Vince Ferrante, the current Secretary of the Board of Harbor Commissioners at Moss Landing Harbor, was honored with the prestigious William Hollingsworth Award of Excellence by the California Special District Association (CSDA) on August 30, 2023. This award celebrates distinguished, ongoing service, and exceptional contributions to special districts and the communities they serve.

effort towards their advancement. Vince Ferrante perfectly embodies the criteria set forth by this prestigious award.

The Hollingsworth Award: Recognizing Excellence

Vince’s impact on the community and his tireless advocacy for special districts are well-known to those who have had the privilege of working alongside him. His commitment to these values aligns seamlessly with CSDA’s core principles of honesty, accountability, approachability, and dedication to public service.

The William Hollingsworth Award of Excellence is the highest accolade bestowed by CSDA. It is reserved for individuals who demonstrate significant leadership within, or in partnership with, special districts regionally or statewide. Nominees for this award are individuals who actively identify and implement programs and partnerships that benefit special districts, dedicating their time and

A Lifetime of Dedication

Vince Ferrante’s journey in the world of special districts is a testament to his unwavering commitment. He has served as a past president of CSDA, a longstanding member of the board, a chapter president, and the chair of multiple CSDA committees. His leadership extends beyond the California borders, as he has represented special districts nationwide in his role as a liaison to the National Special District Coalition.

Community Service Beyond Measure

Beyond his role in special districts, Vince Ferrante is a shining example of community service. He has dedicated

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numerous years to coaching youth sports in his hometown of Salinas, enriching the lives of countless young individuals. Vince is also a Navy Veteran, proudly hailing from the coastal city of Monterey, and a member of the American Legion.

His involvement in various community organizations reflects his deep-rooted commitment to making a difference. Vince served as the Grand Marshal of the Monterey Festa Italia in 2019, held positions in organizations like the Sons and Daughters of Italy and the Native Sons of the Golden West, and served as VicePresident of the Salinas Sister City Organization. He has also contributed his expertise as a Board Member of the Patient/Family Advisory Council for the Salinas Valley Memorial Hospital, underscoring his dedication to healthcare and well-being in his community.

A Commitment to CSDA’s Growth

Despite not residing near major airports, Vince Ferrante’s dedication has taken him to every Special Districts Legislative Days Conference and state conference since becoming a member of the CSDA Board of Directors.

As President, he diligently attended chapter meetings throughout the state, fostering a sense of unity and collaboration among special districts across California.

In his role as NSDC liaison, Vince represented CSDA admirably at conferences throughout the country, extending the organization’s reach and influence.

Vince’s near-perfect attendance record at committee meetings, many of which he has chaired, speaks to his dependability, respectfulness, and deep engagement with the issues facing special districts. He has been a driving force behind numerous successful CSDA initiatives over the past decade, such as the special district civics education program, participation in the National Coalition of Special Districts (NSDC), collaboration with CSDA Public Affairs Field Coordinators, and the subsequent growth of chapters and membership. His unwavering support of the Special District Leadership Foundation, which trains and rewards government best practices, further highlights his commitment to excellence within the realm of special districts.

A Well-Deserved Honor

William Hollingsworth Award of Excellence. His lifetime of service, unwavering commitment, and advocacy on behalf of special districts regionally and nationally have left an indelible mark on CSDA and the broader community.

“Words cannot describe my emotions when I got the word I received the Hollingsworth Award, it is such an honor. I’ve tried to be passionate in what I do, to carry my family values, and to work with all the people who carry the work forward. It’s a privilege to work with the CSDA Board and I am very grateful for this honor."

Vince Ferrante As we celebrate Vince’s achievements, we are reminded that the power of one individual’s passion and dedication can create a lasting impact, bringing about positive change for countless individuals and communities.

Vince Ferrante’s legacy will continue to inspire future generations of leaders in special districts and beyond, ensuring that the values of honesty, accountability, approachability, and dedication to public service remain at the forefront of our collective efforts.

Hollingsworth Award of Excellence Recipients 2002 Dewey Ausmus

2013 Bette Boatmun

2003 Steve Szalay & Chris McKenzie

2014 Jim Acosta

2004 Ralph Heim & Catherine Smith

2016 Sherry Sterrett

2005 Bill Miller 2006 Harry Ehrlich 2007 Michael Glaze 2008 David Aranda

In recognition of his exceptional contributions and tireless dedication to special districts and the communities they serve, Vince Ferrante was rightfully honored with the

2009 Don McMurchie 2010 Jim Towns 2011 Peter Detwiler

19 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

2015 Jeff Stava 2019 David McMurchie 2020 Douglas Siden 2021 Stanley Caldwell 2022 William Morton 2023 Vincent C. Ferrante Some years are missing, no Hollingsworth was awarded those years

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Tech Tips

TECH TIPS

Transforming Citizen Engagement: Mobile Apps for Government Agencies With 94% of individuals between the ages of 13 and 49 having a smartphone and 90% of time-consuming digital content being spent in a mobile app, citizens are turning to apps as their go-to source for information. For local government agencies, this provides a unique opportunity to engage with citizens like never before and strengthen their communication strategies.

TheGovApp.com has developed custom iPhone and Android apps for special districts, municipalities, and public safety agencies across the United States. Custom mobile apps allow citizens to receive on-demand information when and where they need it, and help staff minimize duplication of effort when sharing agencyspecific services, programs, and announcements with the public. By employing governmental expertise and the latest technology in app development, TheGovApp.com builds mobile apps custom to the agency, creating a solution that best fits their specific needs.

Local government agencies can unlock two-way communication with a custom mobile app, providing realtime information to citizens and allowing those individuals to easily relay key information back to agency staff. In addition, a mobile app compiles agency news and updates into one location, allowing for employees to update with ease when new resources become available, as well as giving citizens a preferred, trusted source for information.

An app also opens the door for instant push notifications, which share critical information and alerts when it is needed most.

By incorporating a mobile app into their communication strategy, local government agencies can reach their citizens where they are: their smartphones.

TheGovApp.com is a CSDA silver level business affiliate. They are available to provide a demo or more information at www. thegovapp.com. Requests may be emailed to info@thegovapp. com. They are also included in the CSDA Buyer’s Guide which is available at csda.net under Member Resources.

21 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

(L-R) Rancho Water team members Yolanda Vejar, Kyle Jeffries, and Kimy Wall accept the 2023 Partner of the Year award at the WSI Conference in Las Vegas.

Rancho Water was honored to receive the prestigious EPA WaterSense 2023 Partner of the Year Award. Recognized as one of only nine nationwide Partners of the Year, Rancho Water has been distinguished for its sustained excellence in water efficiency, communication, and the promotion of WaterSense products.

Congratulations to the largest class of new bus operators at AC Transit! After an all-inclusive training program, these AC Transit operators are literally Movers in our Movers & Shakers highlights!

The U.S. Environmental Protection Agency (EPA) has honored the Vallecitos Water District with a Vallecitos Water WaterSense Partner of District the Year Award for their work promoting WaterSense and

water efficiency in 2022. WaterSense recognized its Sustained Excellence, Partner of the Year, and Excellence Award winners during the WaterSmart Innovations (WSI) Conference in Las Vegas, Nevada, in October 2023. The Vallecitos Water District was one of nine Partner of the Year Award winners.

Congratulations to Lassen Municipal Utility District Public Relations Manager Theresa Phillips who received the Theresa Phillips prestigious 2023 Champion of Communications Award from the Northwest Public Power Association. The award honors an individual who has demonstrated a lifetime commitment to the public power industry, communication, and public involvement.

Moulton Niiguel Water District

Moulton Niguel Water District has been named by a coalition of water industry organizations as a “Utility of the Future Today” in recognition of its industry-leading excellence in

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community engagement, innovation, and sustainability. This is the second time that Moulton Niguel has received the prestigious designation. “We are honored to once again receive this prestigious designation as an industry leader in innovation and implementing sustainable water practices,” said Moulton Niguel President Duane D. Cave, who has more than four decades of experience in the utility industry.

(L- R) ILG Board Members Hilary Strauss and Lorenzo Rios and CSDA CEO Neil McCormick present certificate to OC San General Manager Robert Thompson at the 2023 CSDA Annual Conference & Exhibitor Showcase in Monterey.

Beacon awards honorable mentions went to two CSDA member districts this year. Orange County Sanitation District in partnership with Orange County Water District for their collaboration on the educational outreach for their state-of-theart Groundwater Replenishment System. Riverside-Corona Resource Conservation District received the nod for their program to Save the Western Monarch Butterfly. CSDA is honored to feature the Beacon Awards at our Annual Conference & Exhibitor Showcase each year.

Maximize incentives to accelerate clean energy projects

Special Districts in California face similar challenges in implementing comprehensive energy infrastructure projects. Common barriers often include budget constraints, competing organizational needs, and insufficient staffing.

However, with the Inflation Reduction Act (IRA), the total project investment can now be offset with direct pay, enabling non-taxable entities to address deferred maintenance, improve energy and operational efficiency, and progress sustainability goals.

Download our guide to learn how non-taxable organizations can maximize benefits of federal tax credits and deductions available through new provisions in the Inflation Reduction Act. Scan the QR code to download:

Performance-based contracts can allow public entities to take advantage of incentives without impacting budget.

American Rescue Plan Act funds can be used in addition to tax incentives available through the IRA and other utility rebates.

Contact: Dan Mitchell Email: dan.mitchell@centrica.com Phone: 949-842-6150

centricabusinesssolutions.com23 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

Feature How Coachella Valley Water District’s Stormwater Protection Systems Mitigated the Damage from Tropical Storm Hilary

By Kristin Withrow, CSDA Communications Specialist In late August 2023, a historic weather pattern threatened southern California. First feared it would strike with hurricane force winds, it was the catalyst of a declared state of emergency by California Governor Gavin Newsom and California’s first-ever tropical storm warning. When Tropical Storm Hilary descended upon southern California it left a trail of debris in its wake. As residents braced for what was feared to be catastrophic and life-threatening flooding, the Coachella Valley Water District’s (CVWD) stormwater protection plan emerged as a stalwart hero, minimizing damage, and safeguarding the region’s developed areas.

The Coachella Valley is a stunning desert oasis surrounded by towering mountains that has always been susceptible to flash floods during heavy rain events. Yet, the arrival of Tropical Storm Hilary pushed the region’s resilience to the limit. What came next showcased the pivotal role played by CVWD’s stormwater protection infrastructure.

A Backbone of Resilience

One key feature of the CVWD’s Stormwater Master Plan is a 50-mile stormwater channel that snakes its way from

the outskirts of Palm Springs to the Salton Sea. Alongside it, approximately eighteen tributary channels capture the deluge of water pouring down from the mountains and canyons encircling the Coachella Valley. This network, as Lorraine Garcia, CVWD Communication Manager/PIO explains, “is the big backbone of the stormwater protection system, capturing flows and diverting them away from homes and businesses.”

When Tropical Storm Hilary hit, these channels went into overdrive. The storm dumped rainfall in the San Bernardino National Forest at an unprecedented rate, causing a deluge that was as severe as a 1,000-year storm.

This terminology means statistically speaking, it has a 1 in 1,000 chance of occurring in a given year; in probability, it has a 0.1% chance of happening in a given year. Debris, rocks, and mud flowed downstream, wreaking havoc on bridges and city streets. However, CVWD’s stormwater protection channels managed this onslaught as well as expected; effectively minimizing damage to homes and businesses protected by the Master Plan infrastructure as it redirected the raging waters toward the Salton Sea.

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FEATURE A Century of Preparedness

Founded in 1918, CVWD has been a stalwart guardian of the Coachella Valley’s water resources for over a century.

The district’s extensive service area spans 1,000 square miles and includes over 113,000 metered connections.

Apart from stormwater protection, CVWD is responsible for delivering domestic and irrigation water, wastewater collection and recycling, groundwater replenishment, and water conservation efforts.

To prepare for Tropical Storm Hilary, CVWD ensured they had ample staff on standby and the necessary mobile and fixed generators in place to keep critical systems running, even in the event of a power outage. This preparation was crucial, considering the district’s role as a provider of domestic water and sewer services, where system downtime is a critical event. In addition, the district’s public outreach efforts focused on informing the community of the coming risks and coordinating efforts with agency partners in the region.

Protecting the Vulnerable

Despite their remarkable efforts, not all areas of the Coachella Valley are shielded by CVWD’s stormwater protection infrastructure. Some sections remain within Federal Emergency Management Agency (FEMA) marked flood zones.

Additionally, roads, cities, and interstates are outside the district’s jurisdiction. Cooperation and coordination with other government entities are vital in these cases.

Certain areas within CVWD’s service area were developed in FEMA flood zones, placing residents in vulnerable situations. CVWD conducts regular public outreach campaigns to inform these communities, empowering them to take measures to protect themselves in the face of such natural disasters.

The Aftermath

The impact of Tropical Storm Hilary remains palpable in the Coachella Valley. Parts of the district’s infrastructure, hardest hit by the storm, are still undergoing repairs. A subsequent storm exacerbated the situation by damaging the canal system responsible for delivering Colorado River water for irrigation, affecting agricultural areas, golf courses, and groundwater replenishment efforts.

As Garcia noted, “We’re not an area built for dams and capturing fast-flowing, floodwater. It’s more about protecting everybody who are in those flood zones.”

Despite the challenges, the Coachella Valley Water District’s dedication to safeguarding the region’s residents and businesses shines through.

In total, the district estimates the damage from the storm to be approximately $3.9 million. On a countywide scale, the County of Riverside reported a staggering damage assessment of $126 million as of August 24, 2023.

As local Reporter Jason Allen from KCAL News aptly observed in the aftermath, “It’s not very often a tropical storm hits the desert.” When it does, the Coachella Valley Water District’s stormwater protection system proves its mettle, providing a beacon of hope in the face of nature’s fury. With continued support and funding, this vital infrastructure will remain steadfast in its mission to safeguard the Coachella Valley’s future.

The Future of Storm Protection in the Coachella Valley

The Regional Stormwater Protection Master Plan has identified priority projects to expand the protection and increase efficiency in the system’s ability to guide runoff around the region's developed areas. Some of these projects have begun while others are still in the assessment and planning stages.

• The Thousand Palms Flood Control Project includes levees and channels to collect stormwater flows from Indio Hills and Little San Bernardino Mountains alluvial fans and convey them to existing stormwater channels in Sun City Palm Desert.

• The North Cathedral City Regional Flood Control Project includes future phases for concrete slope protection, embankment improvements, and bridge undercrossing modifications to collect and convey flows from the Morongo Watershed between Interstate 10 and the Union Pacific Railroad to the Whitewater River Stormwater Channel.

• The North Indio Regional Flood Control Project is currently under construction. When complete in summer of 2024, the project will protect homes and land in North Indio from regional flooding and eliminate the need for flood insurance in the area.

• A portion of the flood protection facilities for the Thermal/Mecca areas are also currently under construction with the Coachella Valley Stormwater Improvements and will be complete by 2024.

• Other areas of the flood control master plan will require additional funding.

25 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

Community Connections At the grand opening event, the City of Westminster’s Mayor Chi Charlie Nguyen and California Assemblyman Tri Ta plant the final water-smart plants in the newly unveiled conservation garden.

Educational Oasis: Westminster Park’s Transformation for a Water-Smart Future

By Kristin Withrow, CSDA Communications Specialist In an area served by the Municipal Water District of Orange County, a new community park transformation has occurred, a testament to collaboration, innovation, and a commitment to a more sustainable future. The Municipal Water District of Orange County (MWDOC) has partnered with an array of organizations, including the Wyland Foundation, Toro Irrigation, Pacific Interlock Pavers, Saddleback College, and the City of Westminster, to create the stunning Westminster Coronet Watersmart Conservation Garden—a model of water-smart landscaping that is both replicable and educational.

Tiffany Baca, Public Affairs Manager at MWDOC, spoke passionately about the park’s inception, inspired by a pocket park project initiated by the Wyland Foundation in the city of Dallas. “It was small, it was cute,” she recalled, “but I thought wow, this is really a way that we can start transforming the county, particularly when we’re looking at drought.”

The vision was clear: Create a space where people could experience firsthand what a drought-tolerant, Californiafriendly, water-smart landscape looks like. Crucially, it had to be replicable, with easily accessible plants and materials.

The first project kicked off in the city of Laguna Beach, but the journey was fraught with challenges that arose during COVID-19 closures. Nevertheless, the determination to realize this vision was unwavering.

The second project, in the city of Westminster, proved to be a beacon of dedication and resilience. Despite the hurdles posed by COVID-19, the City of Westminster and its partners pressed on. They were committed to making the park more than just a symbol; it had to be a catalyst for change. Generous donations and resources poured in from dedicated supporters, and partnerships were formed with companies that contributed materials and expertise to bring the park to life. Students from Saddleback College created the sustainable landscape design, weaving in water-saving

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COMMUNITY CONNECTIONS features like a stormwater swale, rain garden, and dry riverbed that reduces harmful runoff and allows water to soak into the ground where it can be used by surrounding plants.

Baca noted, “We were finally able to break ground in 2022.

And the project from start to finish once we broke ground took about a year. And now we have this over 5000 square foot space. Turf was removed. We’re saving a quarter of a million gallons of water over existing use. There are plants featured in this model that are all California native, we could have gone just drought tolerant, but we went California native.”

The Westminster Park is a shining example of water conservation in action. By using California native landscape plants, the park showcases sustainable choices that are not only beautiful but also eco-friendly. The park’s irrigation system is a testament to modern water-efficient technology. The partnerships with MWDOC allowed for rebates on various materials used in the park, underscoring the message that these resources are readily available for the community.

What makes the Westminster Park even more exceptional is its focus on education. The park is designed to be a living classroom where visitors can learn about the benefits of a water-wise landscape. Signage throughout the park features QR codes that allow visitors to access information on plants, rebates, and more, all with a simple scan of their smartphones.

The educational component extends beyond the park’s boundaries. MWDOC is collaborating with the Orange County Department of Education to develop hands-on

learning materials that teachers, parents, and students can use to explore and understand their local environment.

This initiative is transforming water education, connecting people to their surroundings, and fostering a sense of responsibility for our precious water resources.

Baca enthusiastically shared, “We transformed our student activities into whole family events. We hosted a water awareness poster contest award ceremony at Shipley Nature Center. And we took entire families out to investigate the space. The next component for the park is hands on activities and bringing schools and children out to the park to start investigating what a California landscape looks like, what the benefits are to the environment, and what the benefits are to the future of our water supply.”

Westminster’s pocket park is more than just a green space— it’s a symbol of a community coming together to create a sustainable future. As Baca pointed out, “This park is a five-acre park. So it’s not a brand new space, it is an existing space where we were able to remove unused turf and complete a total water-smart transformation. That’s part of our message: you don’t necessarily have to remove all your turf, but make sure the turf you keep is turf you’re using.”

This remarkable project is a testament to what can be achieved when organizations and individuals unite for a common cause. It’s a reminder that sustainability is within reach, and education is the key to nurturing a new generation of responsible stewards of our environment.

Westminster Park is a living testament to a brighter, watersmart future for Orange County and beyond.

27 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

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What's So Special From Rock Bottom to Campground: Dumbarton’s Fantastic Transformation

By Josh Gaunt, Romtec Content Writer The Dumbarton campground is situated inside the original site of the Dumbarton Quarry. The 978acre Coyote Hills Regional Park overlooks the eastern shore of the San Francisco Bay in Fremont, California.

It encompasses a stretch of land that is a unique blend of nature, urban vibrance and historical significance.

East Bay Regional Park District (EBRPD) reclaimed the quarry that provided substrate material for the Bay Area building boom in the 1950’s, including material for major infrastructure projects like San Francisco and Oakland International Airports and highways. The quarry produced 15,000,000 cubic yards of rock from 1957 through July 2007. The

quarry turned a 190-foot hill into a gigantic pit spanning 22 acres across and 320 feet below sea level, making it the deepest place in North America.

The campground, which opened in 2021, is EBRPD’s first urban bayside campground with 63 campsites, a camp store, an amphitheater, playground, and picnic areas. continued on page 30...

29 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

WHAT'S SO SPECIAL

The development comes from a strong private and public partnership including the owner of the rock quarry, Dumbarton Quarry Associates, who donated over $15 million to allow the 91-acre site to be developed without taxpayer funding. Building the park was Dumbarton Quarry Associate’s reclamation plan as part of their use permit for the land.

Oliver DeSilva, who owned Dumbarton Quarry Associates, negotiated with EBRPD, the City of Fremont, and the US Department of Fish and Wildlife in 1977 to convert the quarry into a public park upon its closure in 2007.

The pit was filled with six million cubic yards of clean dirt and fill from major construction projects in the area over seven years.

The partnership to accomplish this major fill project included The DeSilva companies, Dumbarton Quarry Associates, Pacific States Environmental Contractors, DeSilva Gates Construction, and the City of Fremont.

“In the evolution of the Dumbarton Quarry in the 1977 permit extension, Oliver DeSilva, Dumbarton Quarry Associates dedicated the land to US Fish and Wildlife Service and EBRPD,” Robert McCarrick, President of Dumbarton Quarry Associates said.

“In 1997, we got another 10 years of mining operation. In exchange for that, we dedicated the construction of a park and lake in the old pit area, but it turns out we couldn’t get water to fill the lake. In the late 2000s, we modified the reclamation plan to

backfill the lake with soil to make sure it was clean, which increased the beneficial use area of the park. Part of that reclamation proclamation was what came to be with the campground.”

“One thing that is unique here, when a quarry goes through reclamation, they typically get turned into housing developments,” Jim O’Connor, Deputy General Manager of East Bay Regional Park District said. “This was unique in that it ended in a public park. It was one of two campgrounds that are close to the San Francisco Bay. It was the first campground we (EBRPD) built in decades. This is a unique site and a unique use of this reclaimed land.”

The campground connects to the Don Edwards San Francisco Bay National Wildlife Refuge to the south, and Coyote Hills, Quarry Lakes, and the Alameda Creek Regional Trail to the north.

The campground features restrooms, hot showers, open areas, picnic tables, an amphitheater, hiking trails, a playground, and plenty of wildlife viewing areas.

Romtec, Inc. designed, supplied, and installed six custom structures onsite to meet the various needs of the park and campground including a camp store, restrooms, gatehouse, and showers. All the buildings feature a unified theme to uphold the aesthetic of the park, and are composed of sturdy, smooth face block with board and batten siding and a lap siding wainscot.

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“It’s a very high-quality campground, and so are the structures,” O’Connor said. “We wanted to create a highquality low maintenance facility.

That’s what we look for in parks, durability, and low maintenance and the buildings are a big part of that.”

The Dumbarton Quarry Campground is an excellent example of land reclamation for public use, providing many environmental and regional benefits.

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Capitol Staff Delegation Tour Bay Area Special Districts

By Colleen Haley, CSDA Public Affairs Field Coordinator, Bay Area Network During the State Legislature’s Interim Study Recess this fall, Capitol Staffers from a dozen different offices participated in a tour of Bay Area special districts. The event was hosted by CSDA, the Association of California Healthcare Districts (ACHD), the California Association of Public Cemeteries (CAPC) and the California Municipal Utilities Association (CMUA).

The goal of the tour was to teach policymakers about the unique nature of special districts, from their governance, to how they are structured and where they get their funding.

District hosts included: • Pleasant Hill Recreation and Park District • Contra Costa Water District • San Ramon Valley Fire Protection District • Alameda County Mosquito Abatement District • El Camino Healthcare District • Solano Cemetery District Attendees heard firsthand from special district board members, general managers, and front-line specialists; they experienced district operations up close and engaged in meaningful policy discussions.

The tour began with a brief survey and introduction on special districts in Sacramento, and then attendees headed to the Pleasant Hill Recreation and Park District. The group was greeted by Director Sandra Bonato and staff, including General Manager Michelle Lacy. While at the district, Capitol staffers were guided through the Teen Center and heard about district programs created especially for low-income teens, a group that often gets left out of after school care funding. Lacy then invited attendees to break up into groups to play a game of “build a park.” During the game, groups were instructed to select amenities they wanted for their parks, but within a limited budget.

Participants had fun with this activity while learning about the real-life challenges of creating a new park.

Tour attendees then traveled to the Los Vaqueros Reservoir, as hosted by the Contra Costa Water District. At the Los Vaqueros Interpretive Center, the group heard from Board member Antonio Martinez and Chief Executive Officer Rachel Murphy. Attendees learned about the origins of the district as primarily serving agriculture and industry to now serving over 500,000 residents, the importance of representing the community in a transparent and accessible manner and how key facilities like the Contra Costa Canal and Los Vaqueros Reservoir are critical to district operations. The district also shared details about specific challenges it navigates as an urban water agency dependent on the Bay Delta. Lastly, attendees were taken to the crest of the dam at Los Vaqueros to learn about its biological and cultural resources and how the district manages the approximately 20,000-acre watershed.

The third stop on the tour was the San Ramon Valley Fire Protection District. As guided by Fire Chief Paige Meyer and Director of Communications Denise Pangelinan, the group toured the district’s new state of the art administrative building, dispatch stations, and emergency operating center (EOC). The new offices are a result of a collaboration between the district, the City of San Ramon, and San Ramon Police Department. When completed, the building will be a regional asset for the entire county. The partnership also contributed to an ISO 1 Rating for the community which helps residents secure better insurance premiums. Attendees additionally learned about the newly created, first of its kind, Behavioral Health Program that will be initiated at this facility to allow for the warm transfer of 911 calls to the local 988 call center, to better assist those with mental health issues.

After an overnight in Oakland, the group headed to the Alameda County Mosquito Abatement District. While here, General Manager Ryan Clausnitzer and employees demonstrated how to properly identify different life

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stages of a mosquito, both low- and high-tech tools, and the different ways the mosquito population is controlled, including by the use of natural predators, like fish, and the district’s solar/electrification initiatives. Among the many highlights were the lab microscopes, 3-D printed mosquito traps, VectorSurv Maps to track mosquitos and diseases and the super-fast-2-hour mosquito virus and PCR test.

Lastly, attendees were also made aware of the tremendous outreach efforts made to educate school children and the public-at-large on how to identify mosquitoes in nature and mitigate their presence in their own backyards.

Capitol staff then traveled to Mountain View to tour the El Camino Healthcare District. Attendees learned about the district’s history and governance, its long list of innovations, including the first electronic medical record, and its significant impact on the community through its $7.7 million in grants and sponsorships. The district’s Chief Executive Officer, Dan Woods, also discussed the hospital’s focus on patient care and employee wellbeing, which was stressed even during the pandemic. Lastly, attendees also got to hear from the Chief Nursing Officer Cheryl Reinking.

Cheryl took the group on a tour of the hospital’s new mother baby unit at Orchard Pavilion. Attendees viewed the individual birth rooms, centralized nursing stations and highly advanced medical stations.

While heading back to Sacramento, the tour made one final stop at the Solano Cemetery District. The delegation was greeted by the district’s board of directors and staff. The

group was then led into the district’s historic Stone Chapel where General Manager Dolores Hernandez provided some background on the district and its operations. With its donated land, several name changes and graves dating back to the 1800s, including members of the Donner Party, the district has a rich history. After a guided tour of the cemetery, the group ended at the district’s beautiful new administration building and reception hall where attendees were treated to refreshments grown on district land set aside for future cemetery growth.

The purpose of the annual Special Districts Tour is to educate policymakers about the nature of special districts.

Before leaving Sacramento, attendees were asked “how they would rate their knowledge of special districts” and “how they would rate the importance of special districts.”

Prior to the tour, the average rate of knowledge of special districts was 5.45 on a scale of 1 to 10. After the tour, the average rate increased to 7.69. Additionally, before the tour the importance Capitol Staffers placed on special districts was 8.33 and it grew to 9.08 afterwards.

CSDA is grateful to showcase some of the wonderful work that special districts do in the community every day and encourages all special districts to host facility tours for your state and federal legislative delegation. Thank you so much for our tour partners and district hosts!

33 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

Steady as you go.

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800-537-7790 • SDRMA.ORG

34

Managing Risk Encouraging a Culture of Safety

By Eric Lucero, SDRMA Senior Risk Control Specialist

W

e all know “a friend” who texts while driving.

It is obviously a risky behavior that could very likely be the proximate cause of an accident despite their awareness of how driving distracted is unsafe. Similar risky behaviors are likely present in your workplace, and those behaviors will continue to gain momentum unless there is an accident or proactive intervention.

Effectively identifying risky behaviors and conditions depends on team approach, also called a culture of safety.

Too often, safety culture initiatives target employees, but forget that supervisors and upstream management engage in risky behaviors, too. Use these best practices to transform the workplace into an environment that encourages a team approach to preventing workplace injuries, property damage, and other types of losses typically covered by insurance.

Define Safety. The first step to improving your safety culture is to be clear about what safety means. Safety is a verb. It is more than just the absence of injuries. It is

the presence of observable behaviors performed by both employees and management.

Make Safety A Value (not a priority) –If safety is a priority, it means safety is negotiable, after all priorities change, right? Safety as a value means we never compromise our carefully crafted safety policies.

Management may need to augment those policies, but we never blatantly ignore them for the sake of speed or convenience. Notice we did not advise never to do anything that could result in a loss.

How do you make safety a value? Talk the talk; walk the walk. Talk about safety during meetings and every opportunity you have. Then, walk the walk, and do not send mixed messages by ignoring safety protocols for the sake of convenience or time. In time, safety will become an organizational value.

Lagging and Leading Indicators. Injury counts are lagging indicators, meaning they are always looking backward. Alone, they are not enough to measure the effectiveness of your safety program. There is a corollary

35 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

MANAGING RISK

link but not necessarily a causal link. Just because you have zero injuries does not mean you have an effective safety program. Conversely, just because you have a few injuries does not mean your safety program is subpar, either.

Remember how we said safety is a verb? Leading indicators monitor key activities (i.e., verbs) known to have a causal effect for preventing claims. Together, leading and lagging indicators can be evaluated to accurately determine the effectiveness of your safety program. The following leading indicators help illustrate the full picture of your safety culture: • The number of safety inspections and trainings conducted • Average grade for training quizzes • Percentage of accidents that were investigated compared to the number of claims • The number of near misses being reported • The count of coaching sessions (positive and negative) conducted by supervisors • The number of times employees provided coaching to fellow coworkers • How many ideas were submitted to management to improve safe work practices or personal protective equipment • The number of hazards reported by employees

disciplinary action. Onlywhen an employee repeatedly or intentionally disregards safety policies should they be disciplined.

Accountability should typically be provided through verbal feedback during an impromptu coaching session. The question is not whether to use the carrot or the stick; both are effective and both should be used. However, if you use the stick too often you are going to break something.

Usually, employee morale is the first to break when negative consequences are overused. A rule of thumb is to provide five instances of positive reinforcement for every negative one.

Conclusion. The purpose of management has always been to influence workplace culture to achieve the agency’s mission. Creating a culture of safety not only saves the district money, but it creates a workplace environment where employees are respected and valued. If you are a member of SDRMA, contact us for a complimentary evaluation.

California Special Districts Association Districts Stronger Together

Training. Carefully craft your training calendar. Aside from regulatory required training, topics should be curated instead of using a mail-order approach. Choose timely subjects based on hazards observed during inspections, coaching sessions, loss runs, or hazards unique to your industry. Focus on preventing high frequency / low-cost injuries (e.g., slips/trips, strains, cuts) and low frequency / high-cost injuries caused by things like falls from heights, not following de-energizing procedures, or improper machine guarding.

Expand Your Knowledge With Our Suggested Reading List!

Learning doesn’t stop when the conference concludes. Check out some of CSDA’s favorite books. Order copies at csda.net/books.

Inspections. Do not be a safety cop! Inspections are not about finding a reason to provide disciplinary action. The purpose of an inspection is to identify risky conditions and behaviors, and then correct them via coaching or through a work order. Inspections go with the next best practice.

Accountability. Training alone is not sufficient for behavior change. Training must be paired with accountability. Outside of reckless behavior and horseplay, accountability does not have to result in formal

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MANAGING RISK

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By Chad Wanke, Board Chairman, Orange County Sanitation District, and Cathy Green, Board President, Orange County Water District

The Groundwater Replenishment System (GWRS), the world’s largest indirect potable reuse facility, has been a game- changer since its inception in 2008, producing over 400 billion gallons of water and counting.

In an era marked by increasing water supply challenges, the Orange County Water District (OCWD) and the Orange County Sanitation District (OC San) have set a remarkable example of innovation by collaboratively creating the award-winning Groundwater Replenishment System (GWRS). This project showcases how public agencies can work together effectively to address local issues.

The GWRS Final Expansion project, online in early 2023, added 30 million gallons per day (MGD) to the system’s capacity, bringing the total to 130 MGD - enough water for 1 million people. Notably, this expansion achieved an unprecedented milestone: recycling 100 percent of OC San’s reclaimable wastewater flows, a feat unmatched by other wastewater recycling initiatives.

The journey to reach 130 MGD and achieve 100 percent recycling capacity was indeed challenging. However, OCWD and OC San applied sound science, extensive research, engineering expertise, and rigorous testing to create a costeffective solution. The goals of the GWRS Final Expansion were threefold.

1. Increase capacity for groundwater replenishment 2. Capture and reuse all remaining reclaimable water being sent to the ocean 3. Reduce operating costs through the use of newer enhanced technologies and by improving the existing system’s performance.

To realize the expansion’s ambitious goals, an additional supply of treated wastewater was needed. The source was none other than OC San’s Treatment Plant No. 2, located approximately 3.5 miles from the GWRS. It required new conveyance facilities, more infrastructure, and a vision to reimagine GWRS’ existing design to accept and treat more water, which arrives at the plant at a much different quality.

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SOLUTIONS & INNOVATIONS

The GWRS operates in two key phases: advanced purification and groundwater replenishment.

In the advanced purification phase, treated wastewater from OC San undergoes an intensive three-step treatment process involving microfiltration (MF), reverse osmosis (RO) and ultraviolet light with hydrogen peroxide (UV). These multiple barriers ensure the removal of contaminants and impurities, resulting in water that not only meets, but surpasses, stringent state and federal drinking water standards. GWRS water is pumped to recharge basins where it naturally percolates into the Orange County Groundwater Basin, managed by OCWD, and becomes part of the drinking water supply for 2.5 million people in north and central Orange County. GWRS water is also sent to injection wells located along Orange County’s coast to create a seawater intrusion barrier that protects groundwater supplies.

a previously wasted resource, becoming one of the most studied civil engineering and water recycling projects in the world. Through the constant collaboration of OCWD and OC San, the system has helped communities worldwide overcome the technical and public challenges associated with water reuse while bringing water reliability and resilience to Orange County residents and businesses.

The GWRS’ success has grown public trust in the potential and benefits of advanced water purification technologies and inspired advanced potable water reuse projects nationally and globally.

As a result of their impressive efforts, Orange County Water District and Orange County Sanitation District earned the 2023 CSDA Award for Innovative Program of the Year by a Large District. Watch their award https://youtu.be/oUy5r7i3VKM video on YouTube.....>>

Among its many benefits, the GWRS bolsters Orange County’s resilience against drought by creating a new water supply, improves the quality of water in the groundwater basin, and offers a more cost-effective and energy-efficient strategy than importing water from distant sources.

The GWRS stands as a testament to the collaborative synergy and long-standing partnership between OCWD and OC San. These two entities, each grappling with unique challenges, joined forces in the mid-1990s. OCWD needed to expand the existing wastewater recycling facility, Water Factory 21, to address continued challenges with seawater intrusion. At the same time, OC San faced the challenge of having to build a second ocean outfall. The GWRS resolved both these issues. In addition, the two agencies developed and implemented a robust education and outreach program to build upon the public’s trust and earn overwhelming support for this unprecedented water recycling project.

Through this remarkable partnership, the GWRS emerged as one of the most celebrated civil engineering and water reuse projects in the world.

The GWRS is a flagship project in the water sector and has garnered global attention for its innovative reuse of

39 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

Manager's Corner Effective Tips for Stellar General Managers

By Kristin Withrow, CSDA Communications Specialist

N

ame three characteristics of a good leader.

Perhaps descriptors such as resilience, risk taking, patience, fairness, ethical, or visionary, come to mind. Certainly, there are many characteristics that form the constitution of some of the best leaders. Beyond character strengths, the process of being a good leader takes intentional skill and an ongoing ability to learn and adapt.

In the government sector, it is also important to note the duty of loyalty to the public set forth by the California Political Reform Act. Not only do effective leaders need to provide guidance, inspiration, and oversight of their team, they must always maintain a focus on the interest of the public as well.

At this year’s General Manager Leadership Summit, attendees learned a breakdown of skills and tips to aide in their advancement as leaders in the session “Effective Tips for Stellar General Managers” by Oliver Yee, Partner with Liebert Cassidy Whitmore.

A strong general manager will understand the value of gaining consensus when new policies or initiatives are developed. That consensus should begin with an information gathering process to define the desired objective. Where the Board provides direction, the staff also has the unique perspective gained in the operation of a district and should also be included to provide input.

“Before we communicate down, we communicate sideways and up."

Oliver Yee, Partener, Liebert Cassidy Whitmore Key factors to define when assessing change initiatives include understanding what to change, what to maintain, what overall outcome is desired and what challenges are expected. By gathering input from multiple angles and perspectives, an informed leader can guide a team through change in a collaborative manner rather than dictating new policies and pushing them out, which inevitably invites resistance.

Key best practices can keep a team moving in the same direction with a positive attitude that builds trust. From daily operations to human resource considerations, much of the message presented by Yee had an overarching message that wasn’t surprising coming from a legal expert: Document everything.

Key Considerations for Meetings

1. Is the meeting necessary? If so, treat it with significance.

2. Designate a start and stop time and maintain focus on the purpose of the meeting.

3. Come with solutions to propose.

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MANAGER'S CORNER 4. Document your meetings: Send a follow up email to eliminate ambiguity.

• Allow for improvement plans.

• Discuss expectations in an ongoing manner to eliminate the “gotcha” element.

• Document performance.

5. Create consistency by documenting all meetings in this manner.

Key Considerations for Performance Evaluations

Performance standards should be assessed using resources at hand, such as job descriptions, documented objectives, formal policies, and laws. The notion of an evaluation carries a connotation of being judged that should be removed from the process. While it is necessary to formalize the evaluation into a written form, the process of performance evaluation should be ongoing; the formal document that culminates the year-end review should be the documentation of an ongoing collaborative process.

• Keep the process positive: it’s about achieving goals, not finding fault.

• Solve problems as the year goes along.

• Reinforce the positive.

Yee added a note of caution to the documentation process. There is a difference between the personnel file and a supervisor’s file. An employee has access to review the personnel file being maintained by the employer. A supervisor’s file is meant to be a tool of documentation and organization used by the supervisor and can remain confidential. The supervisor’s notes are used in the creation of an employee evaluation and, as such, make their way into the personnel file in the form of a performance evaluation.

However, Yee cautioned that a supervisor’s files can be part of the discovery process should litigation arise in an employment dispute and should always be written “with the employee’s eyes in mind.”

Oliver Yee is a Partner with Liebert Cassidy Whitmore, a CSDA Platinum Business Affiliate. He can be reached at oyee@lcwlegal.com.

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Districts Make The Difference is the national public awareness campaign started by the California Special Districts Association and now sponsored by the National Special Districts Coalition. Its goal is to help the public and legislators understand the unique function of more than 35,000 independent special districts operating in communities across America. These districts provide essential services to the community that creates them - they are critical infrastructure in the United States and it is important that necessary funding and support flows to them similarly to how it flows to counties and cities.

Districts Make The Difference runs a robust social media presence on Facebook, Instagram, LinkedIn and Twitter (X). Think of us as the cheering section for special districts! You can join us very simply: TAG US @LocalDistricts on all of your good news social media! Awards, projects, funding wins, grand openings - it's all interesting and the public should see it!

Views on Facebook

287,156 Views on Instagram

748,413 Views on Twitter

281,149 Views of LinkedIn

1,805,494 The number of times our posts were seen between January 1, 2023 and October 7, 2023

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43 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

Money Matters Santa Cruz Port District’s Resilience:

Navigating the Impact of a Cancelled Salmon Fishing Season with California CLASS

By Kristin Withrow, CSDA Communications Specialist In the picturesque coastal town of Santa Cruz, where the cool Pacific waters meet the sun-soaked summer shores, the Santa Cruz Port District is facing a fiscal challenge.

The cancellation of the commercial and recreational salmon fishing season has sent ripples through this vibrant community, impacting both its local economy and the harbor’s ability to generate crucial revenue. To tackle this issue head-on, the district has turned to California CLASS to help mitigate the financial blow.

Understanding the Salmon Season Closure

According to Harbormaster Blake Anderson, the salmon season cancellation was primarily due to the prolonged drought in California. Salmon, a vital part of the local ecosystem and economy, rely on healthy river conditions to spawn their offspring. When water levels drop and temperatures rise, the survival rate of young salmon (called fry) diminishes. Drought conditions were particularly severe for several years, leading to lower salmon populations in the ocean and necessitating the closure of the fishing season.

“Salmon spawn high in the tributaries and travel to the ocean where they will stay several years before they are mature enough to return to spawn. These three- or fouryear-old salmon may survive the trip and lay eggs, but their offspring are exposed to predators and disease in the low, warm waters. They really need flowing, cold water to survive,” explained Anderson.

The closure of the salmon season has far-reaching implications for the local economy. Each year, the salmon season typically draws fishermen, tourists, and commercial fleets to the harbor. Recreational and commercial activities see a significant uptick during this period, attracting visitors from all over California and its neighboring states.

Impact on Harbor District’s Revenue

Port Director Holland MacLaurie highlighted the financial impact of the salmon season closure on the district’s annual budget. “As an independent special district, we don’t receive tax revenues, we rely solely on user fees,” said MacLaurie.

Revenue is generated from various activities such as vessel launches, parking fees, boat tie-ups, and the patronage of

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MONEY MATTERS restaurants and fuel stations. When the salmon season is in full swing, these revenue streams flourish, contributing significantly to the harbor’s finances in the first several months of its fiscal year, which begins in April.

The cancellation of this year’s salmon season has significantly impacted district revenue. As of August, the district reported an operating income decrease of approximately $380,000 for the first five months of the fiscal year compared to the previous year. This translates to a monthly loss of approximately $75,000, a substantial blow to an independent district that receives no tax revenue.

California CLASS: An Innovative Solution

Facing this financial challenge, the Santa Cruz Port District adopted a creative approach to safeguard its financial stability. One of the most significant moves was to explore alternative investment options in response to the changing investment market. California CLASS emerged as a standout choice, offering higher yields than the district’s existing investment options. “Having the support of CSDA and the California League of Cities helps bolster the program’s position and eliminate some of the questions,” said MacLaurie. “Knowing it is backed by reputable sources helped us feel good about making the move.”

California CLASS allows local agencies like the Santa Cruz Port District to explore investment options. With a seamless setup process and lower costs compared to some other investment options, CLASS quickly became an attractive choice for the district.

MacLaurie emphasized the remarkable benefits of this decision, stating that the district is recognizing an additional $50,000 per month in interest income due to CLASS. This additional income helps offset the revenue loss caused by the salmon season closure, making CLASS a valuable resource in mitigating the financial impact.

“Our board is financially savvy, and they understood what our needs were,” said MacLaurie. “When they recognized the potential revenue that could be generated, it was kind of a no brainer. And the setup process was easy, I think it took two days to initiate the account and move funds and start earning that higher interest.”

A Brighter Future for Santa Cruz Harbor

While the salmon season closure has posed significant challenges, the Santa Cruz Port District remains resilient.

It is diversifying its portfolio, seeking opportunities in alternative fisheries like rockfish and bluefin tuna. These efforts are mitigating the salmon loss, attracting both recreational and commercial fishermen to the harbor.

The district is optimistic about the future, hopeful that the return of other fisheries will help bridge the financial gap left by the salmon season cancellation. With prudent financial management and innovative investment solutions like California CLASS, the Santa Cruz Port District is maintaining its course toward financial stability, ensuring it remains a vibrant and thriving coastal harbor for the community for years to come.

MONEY MATTERS by CSDA Finance Corporation California’s special districts are finding low-cost, competitively priced financing solutions through CSDA Finance Corporation. So far this year, CSDAFC facilitated over $55 million in transactions, large and small.

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45 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

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Contact us at (916) 442-7887

NSDC

It is Finally Time to Define and Count Special Districts

By Cole Arreola-Karr, NSDC Federal Advocacy Director

A

fter three years of research, national engagement, and development, the National Special Districts Coalition (NSDC) is now able to move forward on legislation to federally define “special district” and enhance the federal government’s recognition and understanding of the nation’s most prevalent form of local government.

More than 35,000 local special district governments deliver essential public services to millions of Americans every day – including 2,000 special districts impacting nearly every Californian and helping drive the Golden State economy.

Despite their prevalence across all 50 states, federal law lacks a single, consistent definition for “special district.”

Further, the federal agencies like the U.S. Census Bureau do not classify special districts as geographic units of local government, leading to issues certifying federal population and household data for many special districts that do not have the same boundaries as the cities or counties they serve. This, combined with a general unawareness of the importance and structure of this common model of government, creates ambiguity that often leads to the unintentional exclusion of special districts from federal grant and finance programs intended for investment in local government services. As a result, the communities that special districts serve are susceptible to exclusion from federally sourced funding opportunities other units of local government can access to develop or enhance their infrastructure and community programs.

The bipartisan Special Districts Recognition Act serves as the foundational legislative solution to begin addressing these issues impacting tens of thousands of public critical and essential service agencies in states and across the country.

Congressman Pat Fallon, a Texas Republican, is teaming up with Congresswoman Brittany Pettersen, a Colorado Democrat, to lead the House version of the bill.

Simply, this legislation would define “special district” in Title 13 alongside definitions of other units of local government as a political subdivision of a State, with continued on page 48...

Photo by Random Institute on Unsplash.

47 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

NATIONAL SPECIAL DISTRICTS COALITION

specified boundaries, created by the State or pursuant to the laws of the State, for the purpose of performing limited and specific governmental or proprietary functions, except that the term does not include a school district, college, county, city, town, township, village, parish, borough, or general unit of local government.

A 10-state working group comprised of special district stakeholder representatives, including the California Special Districts Association (CSDA), reviewed local government data, discussed their states’ structures for special districts, and ultimately crafted a draft definition that was amended to earn approval of the NSDC leadership, congressional stakeholders, and House of Representatives legal counsel.

By defining “special district” in Title 13, the U.S. Census Bureau would have the clarity needed to adequately and efficiently carry out its mandated semi-decennial review of local governments across the country. In doing so, federal statistics gathered for special districts – such as public revenues, public expenditures, and public indebtedness, and more – would be enhanced to match federal understanding of the nation’s counties, cities, towns, and public schools.

Finally, a formal federal definition would be a powerful tool to be cited for special districts’ direct eligibility and access to a broader set of current and future federal programs geared toward local government services. A long-term NSDC priority, upon establishment of the federal “special district” definition, is to secure special districts’ direct access to Community Development Block Grant funds for eligible projects they may have.

The Special Districts Recognition Act enjoys the support of more than 40 state and national organizations familiar to California’s special districts including CSDA, California Association of Recreation and Park Districts, California Association of Sanitation Agencies, and special district website platform developer Streamline.. Nationally, the legislation is supported by the National Association of Emergency and Fire Officials, National Park and Recreation Association, the National Water Resources Association, and more.

Individual special districts are strongly encouraged to formally support the Special Districts Recognition Act. There are several ways to get involved, including signing on to a growing national coalition letter to congressional leadership demonstrating support for the legislation and urging action. A toolkit with individual support letter templates, talking points, and more is also available on the NSDC website.

Ultimately, with understanding of and greater collaboration with the Census Bureau, the American public can have a better understanding of the large-scale impact this sector of local government has across the nation – a major benefit and supplement to the ongoing public awareness efforts of the Districts Make the Difference campaign. Additionally, special districts would be better positioned to work with federal agencies to achieve necessary tools, such as federally-recognized population figures, to foster greater fairness in special districts’ ability to receive federally-sourced investments in their communities. Further, state and federal supporters would have formal, recognized, consistently-measured local government data to leverage in their advocacy for special districts.

For questions and more information on how to get involved, contact Cole Arreola-Karr, NSDC Federal Advocacy Director, at colek@ nationalspecialdistricts.org. https://bit.ly/NSDC-Priorities

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Legal Brief The California Air Resources Board’s Advanced Clean Fleets Regulation and What it Means for State & Local Government Agencies

By David Boyer, Suparna Jain and Kevin Harris, Atkinson, Andelson, Loya, Ruud & Romo In recent years, low and no emissions transportation has gained significant momentum. This is due in part to the focus and efforts of the government – at both the federal and state levels - to transition to a clean transportation future. Reducing vehicle emissions has long been seen as a viable approach to reduce greenhouse gas emissions and improve air quality and climate conditions on a broad scale.

Via Executive Order, President Biden has set a goal of achieving net-zero greenhouse emissions by 2050 and has set a 50 percent zero-emission vehicle target by 2030.

Additionally, state governments are pushing the adoption of policies and regulations to further intensify the progress of this transition. Through the Governor’s Executive Order N-79-20, California became the first state to declare it would ban sales of new internal combustion engines or gas-powered vehicles by 2035; in addition, California aims for 100 percent of medium- and heavy-duty vehicles in the state to be zero emission by 2045 for all operations where feasible, and by 2035 for drayage trucks.

To aid in achieving California’s climate goals, the California Air Resources Board (CARB) was charged with establishing air quality regulations to address the state’s overall approach to accelerate the transition to zero emission medium and heavy-duty vehicles. In April 2023, CARB passed its Advanced Clean Fleets (ACF) regulation, which is one part of a broader strategy to deploy mediumand heavy-duty zero-emission vehicles (ZEV) wherever feasible. The ACF regulation became effective as of October 1, 2023.

The ACF regulation applies to fleets performing drayage operations, those owned by State, local, and federal government agencies, and high priority fleets and has

various components. This article focuses on and provides a general overview of one component of the ACF regulation, specifically the regulations applicable to state and local government fleets.

THE ACF REGULATION – STATE & LOCAL GOVERNMENT FLEETS The ACF regulation defines a state or local government agency as a city, county, public utility, special district, local agency or district, or a public agency of the State of California, and any department, division, public corporation, or public agency of the State of California.

Affected agencies are those that have jurisdiction in California and own, lease, or operate in California, one or more vehicles with a GVWR greater than 8,500 pounds.

On October 8, 2023, Governor Newson signed AB 1594, which was expressly developed in response to the ACF regulation. AB 1594 requires any state regulation that seeks to require, or otherwise compel, the procurement of medium- and heavy-duty zero-emission vehicles to authorize public agency utilities to purchase replacements for traditional utility-specialized vehicles that are at the end of life when needed to maintain reliable service and respond to major foreseeable events. AB 1594 defines a public agency utility to include a local publicly owned electric utility, a community water system, a water district, and a wastewater treatment provider.

COMPLIANCE REQUIREMENTS FOR STATE & LOCAL GOVERNMENT FLEETS State and local governments may comply through one of two options, referred to as “schedules”:

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LEGAL BRIEF

1. Time-Based Schedule: Beginning January 1, 2024, 50 percent of the total number of vehicle purchases for the California fleet made in each calendar year must be ZEV, and starting January 1, 2027, 100 percent of purchases in each calendar year must be ZEV. Note: A “vehicle purchase” includes placing an order to acquire legal or equitable title to a vehicle, but expressly does not include renewing leases of vehicles that are already in the fleet. A fleet of 10 or fewer vehicles, and those whose jurisdiction is primarily in designated low population counties, may delay the start of their ZEV purchases until January 1, 2027, at which point 100 percent of vehicle purchases must be ZEVs. Additionally, individual departments, divisions, districts, subsidiaries, or agencies under the same State or local government agency’s jurisdiction have the option to comply jointly instead of independently.

2. Milestone-Based Schedule: Until January 1, 2030, fleet owners may elect to permanently comply with the ZEV milestones applicable to “High Priority and Federal Fleets.” If an entity elects the milestone option, it must report such election/intention and may not switch back to the ACF Regulation pertaining to State & Local Agency Fleets. Instead, such an entity will remain bound to comply with the regulation for High Priority and Federal Fleets.

WHAT IS EXEMPT FROM AND/OR UNDER THE ACF REGULATION? Under section 2013.1 state and local government fleet owners may request various specified exemptions or extensions if their California fleets comply with all applicable requirements. However, fleet owners requesting or utilizing any exemptions or extensions must meet applicable reporting and recordkeeping requirements for each exemption or extension as specified in sections 2013.2 and 2013.3. Moreover, any exemptions or extensions granted to a fleet owner are not transferrable to another fleet owner.

Vehicles categorically exempt from ZEV purchase requirements include: school buses, military tactical vehicles, vehicles awaiting sale, emergency vehicles as defined in California Vehicle Code section 165, historical

vehicles, dedicated snow removal vehicles, two engine vehicles, heavy cranes, transit vehicles subject to the Innovative Clean Transit regulations, and vehicles subject to the Zero-Emission Airport Shuttle Regulation.

RECORDKEEPING & REPORTING REQUIREMENTS State and local government fleet owners are required to annually submit a compliance report that includes all the information specified in Section 2013.2, as well as the documentation specified in Section 2013.3 for their California fleet, as it is composed as of January 1 of the corresponding calendar year. The initial report must be submitted by April 1, 2024. Reports must be submitted no later than April 1 of each year until April 1, 2045. If an agency chooses to comply jointly, each individual division, department, district, subsidiary, or agency must report separately. Fleet owners are required to keep records of reported information and documentation for a period of at least five years and must make such records available in an electronic or paper format to CARB staff within 72 hours of a written or verbal request for audit.

ENFORCEMENT Pursuant to the ACF Regulation, any person who fails to comply with the requirements, who fails to submit any information, report, or statement required by the regulation, or who knowingly submits any false statement or representation in any application, report, statement, or other document filed, maintained, or used for the purposes of compliance with the regulation may be subject to penalties.

CONCLUSION The CARB’s ACF regulation places responsibility on state and local government agencies to begin the transition from traditional internal combustion engines to ZEVs sooner rather than later. Given upcoming compliance deadlines and reporting obligations and requirements, it is imperative for state and local governments to begin considering how to implement their own ZEV purchase procedures and determine which compliance schedule they will prefer to follow to ensure all applicable requirements of the regulation are met.

51 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

Got Governance?

Your District’s Board Has a Vacancy . . . Now What?

Nicholas R. Ghirelli, Shareholder, Richards Watson & Gershon

One of your district’s valued board members has resigned and moved out of state. Or, regrettably, a longtime board member has unexpectedly passed away. Vacancies on district boards can and do occur.1 When that happens, it is important to follow the required process to fill the vacancy in a timely manner. Doing so will promote transparency and protect district control.

Government Code Section 1780 sets forth the procedures the district must follow to fill a vacancy on an elected board.2 The basic tasks are summarized in this article.

First, the district must notify the county elections official of the vacancy no later than 15 days after the board was notified of the vacancy or the effective date of the vacancy,

whichever is later.3 That notice is typically presented to the board at its next meeting following the district being informed of the vacancy.

Second, the remaining board members must take action to fill the vacancy within 60 days after the board was notified of the vacancy or the effective date of the vacancy, whichever is later.

The board has two options for filling the vacancy: appoint a temporary replacement or call a special election.

If the board chooses to appoint a replacement, the district must first post a notice of vacancy in at least three conspicuous places within the district at least 15 days before the board makes the appointment.4 The law does not specify a particular process the board must undertake to select the replacement. Some boards

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take applications from interested persons and conduct interviews. In that case, an ad hoc committee of the board might conduct those interviews or the full board may conduct them at a special or regular meeting.

Other boards simply discuss known candidates and make an appointment.

While there is no appointment process the board is required to follow, the board must comply with the Brown Act and discuss and make the appointment in an open meeting.

Avoid secret polls and serial meetings.

The length of the appointee’s term depends on when the vacancy occurred in the incumbent’s term. If the vacancy occurred in the first half of the incumbent’s term, and at least 130 days prior to the next general district election, then the appointee

GOT GOVERNANCE?

serves until the next general district election that is 130 or more days after the board is notified of the vacancy.5 The person elected at that election fills the remainder of the incumbent’s unexpired term. If the vacancy occurred in the first half of the incumbent’s term, but less than 130 days prior to the next general district election, then the appointee serves the remainder of the incumbent’s unexpired term.6 The same is true if the vacancy occurred in the second half of the incumbent’s term.7 Alternately, the board can call a special election to fill the remaining portion of the incumbent’s term. The election must be held on the next established election date that is 130 or more days after the board calls

the election.8 Elections Code Section 1000 lists the five established election dates in California, including the first Tuesday after the first Monday of each November. It should be noted that the district may be required to pay additional costs to the county elections official to conduct the election. The successful candidate fills the remainder of the incumbent’s term.

If the board does not fill the vacancy by appointment or call an election within 60 days, the county board of supervisors or the city council, depending on the district’s jurisdictional boundaries, may call an election or appoint a person to fill the vacancy within 90 days of the date the district board is notified of the vacancy or the effective date of

the vacancy, whichever is later.9 If the board of supervisors or city council, as applicable, does not act by the 90th day, then the district board must call an election to fill the vacancy.10 Thus, it is important to act promptly in order to protect the district’s discretion in filling the vacancy.

1 The circumstances giving rise to a vacancy on a district board are listed at Government Code Section 1770.

2 The procedure for filling a vacancy in an appointive board position is found at Government Code Sections 1778 and 1779.

3 Government Code Section 1780(b).

4 Government Code Section 1780(d)(1).

5 Government Code Section 1780(d)(2).

6 Government Code Section 1780(d)(3).

7 Id. 8 Government Code Section 1780(e)(2).

9 Government Code Section 1780(f)(1).

10 Government Code Section 1780(g).

53 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

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54

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The California Special Districts Alliance is a collaborative partnership between the California Special Districts Association (CSDA), CSDA Finance Corporation, and Special District Risk Management Authority (SDRMA).

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57 | CALIFORNIA SPECIAL DISTRICTS November-December 2023

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