California Special District

CA SPECIAL

DISTRICT Publication of the California Special Districts Association

Volume 10, Issue 4, July - August 2015

SEPTEMBER 21-24

Monterey, CA FEATURE

Interview with Conference Keynote Speaker Peter Sheahan

Pre-conference Issue All things related to the CSDA Annual Conference and Exhibitor Showcase

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Volume 10, Issue 4 • July - August 2015

CONTENTS

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What are the Top Three Things Special Districts Need to Know about CEQA in 2015?

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Flip: Turning challenge into opportunity

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How would I hack you?

Interview with Peter Sheahan

4 President’s Message Training that is second to none 5 Professional Development CSDA Annual Conference and Exhibitor Showcase; Calendar 6 CSDA News New member benefit: Website design with built-in transparency certificate assistance; Powerful keynote speakers featured at Special Districts Legislative Days 8 Grassroots Action Update Updates on AB 1315; AB 327; Mandate Reimbursement California Special District – July-August 2015

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Community Connections

When the going gets tough: Advanced crisis communications for special district officials

12 In Brief Students become watershed explorers; Students and seniors meet monthly; Air district receives funds for cleaner trucks; Scholarships awarded for medical field; District approves health care trust; Cemetery celebrates arboretum

28 SDLF Get to know SDLF at the CSDA Annual Conference and Exhibitor Showcase

22 Solutions & Innovations Just in time development: Coaching within the workplace

34 Money Matters Build better buildings

26 Legal Brief California’s epic drought creates significant challenges and opportunities for special districts

32 Managing Risk Legal update

38 What’s So Special A career for the ages Placer County Water Agency

Printed on recycled paper.

CA SPECIAL

DISTRICT © 2014. California Special Districts Association.

All rights reserved.

Officers Steve Perez, President Rosamond Community Services District William Nelson, Vice President Orange County Cemetery District Vincent Ferrante, Secretary Moss Landing Harbor District Greg Orsini, Treasurer McKinleyville Community Services Districtt

BOARD PRESIDENT’S MESSAGE

Training that is second to none

Noelle Mattock, Past President El Dorado Hills Community Services District

Members of the Board Joel Bauer, West Side Cemetery District Stanley Caldwell, Mt. View Sanitary District Elaine Freeman, Rancho Simi Recreation & Park District Peter Kampa, Saddle Creek Community Services District Jo MacKenzie, Vista Irrigation District Shane McAffee, Greater Vallejo Recreation District Ginger Root, Country Club Sanitary District Timothy Ruiz, P.E., East Niles Community Services District Sherry Sterrett, Pleasant Hill Recreation and Park District Fred Ryness, Burney Water District Arlene Schafer, Costa Mesa Sanitary District Kathy Tiegs, Cucamonga Valley Water District

CSDA Staff Neil McCormick, Chief Executive Officer Megan Hemming, Professional Development Director Cathrine Lemaire, Member Services Director Kyle Packham, Advocacy and Public Affairs Director Todd Winslow, Publications Director Rick Wood, Finance & Administration Director Emily Cha, Staff Assistant Nick Clair, Legislative Analyst Bernice Creager, Public Affairs Specialist Sharon Foster, Professional Development Assistant Dillon Gibbons, Legislative Representative Monica Greenberg, Business Development Specialist Jess Lima, Legislative Assistant Christina Lokke, Senior Legislative Representative Charlotte Lowe, Executive Assistant Jimmy MacDonald, Associate Legislative Representative Chris Palmer, Public Affairs Field Coordinator Cassandra Strawn, Member Services Specialist Dane Wadlé, Public Affairs Field Coordinator James Wilfong, Senior Designer Nicole Zajic, Editor For editorial inquiries, contact Nicole Dunn at 877.924.2732 or nicoled@csda.net.

For advertising inquiries, contact Diana Granger, Granger Marketing Works, at (530) 642-0111 or granger@cwo.com.

1112 I Street, Suite 200 Sacramento, CA 95814 t: 916.442.7887 f: 916.442.7889 toll-free: 877.924.2732 www.csda.net

Steve Perez

It’

s hard to believe it’s already that time of year again – the time when hundreds of special district board members/trustees and staff get together and receive top-level training. The CSDA Annual Conference and Exhibitor Showcase is once again upon us.

and understand advocacy information and there is no better way to become informed than to hear it first-hand at the conference. We become a better advocacy group when marching in the same direction and there is no substitute for the strength of advocacy in numbers.

I’ve attended this conference for years and each year I gain new experiences, build new relationships, and learn new things. Every year, there are presentations that provide me with new, necessary knowledge for my job as general manager of Rosamond Community Services District. Every year, I interact with my peers and colleagues, meeting new people and building deeper connections with those whom I already know. And every year, I also have the opportunity to mentor those interested in expanding their knowledge base and becoming better at their jobs.

Join us in Monterey September 21-24.

And enjoy this issue of California Special District, which offers only a small preview of what will be taking place there.

The board of directors of my district place a big emphasis on the importance of learning, growing, and striving to be the best possible. This conference is a huge opportunity to work toward that with training that is second to none.

The Annual Conference is also the best place to become informed of the many actions CSDA is in involved in to assist and protect the many special districts throughout the State. There truly are major benefits of having our members receive

A proud California Special Districts Alliance partner

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Every year, there are presentations that provide me with new, necessary knowledge for my job as general manager of Rosamond Community Services District.

The board of directors of my district place a big emphasis on the importance of learning, growing, and striving to be the best possible.

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Learning, Networking and More: Annual Conference Pre-Conference Activities

HIGHLIGHT

August

Make plans now to attend one of the many pre-conference activities available on Monday, September 21.

August 6

WEBINAR

Maximize Your CSDA Membership - Website Resources

So You Want To Be A General Manager?

This practical career development workshop is for senior executives and emerging leaders in special districts.

August 12

WEBINAR

Board Member & District Liability Issues

August 18

SDLA

Special District Leadership Academy: Board’s Role in Finance & Fiscal Accountability, Sacramento

August 20

WEBINAR

Understanding the Brown Act: Beyond the Basics

[8:00 A.M. – 3:45 P.M./$100 INCLUDES BREAKFAST AND LUNCH.]

Building Confidence in Public Speaking A workshop focused on helping attendees improve their public speaking skills in a non-threatening environment.

[9:00 A.M. – 3:00 P.M./$225 MEMBER AND $375 NON-MEMBER.]

SDLA Module 1: Governance Foundations Serves as the “foundation” for the series on effective governance of special districts offered by CSDA. [9:00 A.M. – 3:00 P.M./$225 MEMBER AND $375 NON-MEMBER.]

Communication Strategies for Board Members & General Managers A critical workshop for districts that know they have organizational challenges and those that know enough to believe that good communications are an absolute best practice.

[12:00 – 3:00 P.M./$125 MEMBER.]

Elk Horn Slough Safari™ and Moss Landing Harbor District Tour You will enjoy a two-hour boat cruise as well as a brief overview of the operations of the Moss Landing Harbor District.

September September 21-24

CONFERENCE

SEPTEM

Annual Conference & Exhibitor Showcase, Monterey

BER 21 -24

Montere y, CA

[10:00 A.M. – 3:00 P.M./$48 PER PERSON INCLUDES TRANSPORTATION]

Pure Water Monterey Particularly timely during this time of drought, this tour hosted by Monterey Peninsula Water Management District and Monterey Regional Water Pollution Control Agency will give an overview of this multi-benefit, integrated regional solution that will provide a water recycling model for other regions in California.

[12:00 – 3:00 P.M./$45 INCLUDES TRANSPORTATION AND LUNCH.]

Pre-Conference Golf Tournament If you want to get out and about you can participate in the CSDA Annual Golf Tournament at Pacific Grove Golf Links.

[10:00 A.M. – 3:00 P.M./$95 INCLUDES GOLF CART, LUNCH AND PRIZES.]

For more information on the Annual Conference & Exhibitor Showcase, including registration details, visit conference.csda.net.

California Special District – July-August 2015

Bythe

Numb3rs 49% of the United States population uses smartphones

CSDA NEWS NEW MEMBER BENEFIT: WEBSITE DESIGN WITH BUILT-IN TRANSPARENCY CERTIFICATE ASSISTANCE

CSDA now offers Streamline - the Special District Website Engine.

Streamline is a website tool that allows districts to be up and running with their own customized site in just 20 minutes, and provides a transparency dashboard that helps districts meet transparency best practices recommended by the Special District Leadership Foundation.

Streamline is available for as little as $50 per month. There are no upfront costs and no long-term commitment.

Learn more at www.get-streamline.com or call 916.900.6619.

CONSULTANT CONNECTION FOR CSDA MEMBERS When your agency needs the expertise of a consultant in the areas of strategic planning, organizational assessment or board development, do you know where to turn? CSDA is proud to announce a new member benefit designed to get you the assistance you need. The Consultant Connection was developed to give CSDA members access to experts who provide exclusive discounts and special benefits for a variety of services.

POWERFUL KEYNOTE SPEAKERS FEATURED AT SPECIAL DISTRICTS LEGISLATIVE DAYS Special districts from across the state gathered in Sacramento May 19-20 for CSDA’s annual Special Districts Legislative Days.

The two-day event kicked off on Tuesday, May 19 with a Local Government Panel featuring Assembly Members Marie Waldron, Ken Cooley and Richard Gordon. During this panel, CSDA members had an Local Government Panel featuring Assembly Members opportunity to Marie Waldron, Ken Cooley and Richard Gordon. learn more about legislative measures making their way through the State Legislature and had the chance to ask questions from the legislative members in a candid setting. This panel was followed by a full day of activities including a legislative briefing and meetings with legislators in the Capitol.

During the legislative meetings, attendees had the opportunity to meet with state senators and assembly members to advocate on behalf of all special districts. These visits allowed attendees to educate their elected officials about the essential services special districts provide and emphasize the importance of local control.

On May 20, attendees heard from an all-star lineup. CSDA’s Board President Steve Perez presented our inaugural “Legislator of the Year” award to Assembly Member Katcho Achadjian; Controller Betty T. Yee delivered a keynote address; and Department of Finance Director Michael Cohen provided an update on the State Budget’s impact on local government.

To learn more or to submit a consultant request form, visit the CSDA website at www.csda.net/consultant-connection.

“Legislator of the Year” award to Assembly Member Katcho Achadjian

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During Assembly Member Achadjian’s speech, he thanked CSDA for its continued support and expressed the importance of local control. “It is always important to remember where you came from and I always do,” said Assembly Member Achadjian during his address to the nearly 200 attendees, referring to his time serving in local government.

THANK YOU TO OUR SPONSORS AND EXHIBITORS Thank you to our Special Districts Legislative Days Sponsors and Table Top Exhibitors: Special District Risk Management Authority (SDRMA); Kaiser Permanente; California CAD Solutions, Inc.; California Special Districts Alliance; Digital Deployment; Meyers Nave; Special District Leadership Foundation and Wells Fargo Bank.

State Controller Yee discussed a myriad of issues varying from pension reform and financial auditing, to climate change and the drought. “Wall Street is looking at California,” said Controller Yee in regard to the effect the drought is having on credit ratings State Controller Betty Yee for California’s water districts that are delaying raising rates on their customers. She also spoke about the importance of government accountability and made it a special point to compliment CSDA for their forthcoming assistance with increasing transparency in California.

Dept. of Finance Director Micahel Cohen

Less than one week after Governor Jerry Brown released his May Revise, Director Cohen spoke to attendees about the future of California’s economy. He discussed the $72 billion in state unfunded liability and the governor’s plan to tackle the deficit by paying off debt and clearing the books to save California money in the long-term by saving on interest rates. He indicated that part of the May Revise Budget Proposal includes a mandate reimbursement of $765 million, which is expected to go back to special districts and other local agencies to eliminate the pre-2004 mandate debt and bring the remaining mandate debt down to $1 billion.

Throughout Special Districts Legislative Days the theme centered on the value of special districts and the specialized services they provide to millions of Californians across the state.

UPDATE

Spring was a busy time for CSDA’s advocacy efforts. In addition to Special Districts Legislative Days, the months of May and June were full of legislative deadlines that dictated the course of bills impacting special districts.

June 5 brought the deadline for bills to pass their house of origin and subsequent action was taken on a number of important bills CSDA is tracking.

Read further for an update on some of the bills attendees lobbied on during Legislative Days:

AB 327 is moving quickly through the legislative process and has received unanimous support in the Legislature.

ASSEMBLY BILL 1315 (ALEJO): Contracting for Public Works CSDA Position: Oppose Result: Held in the Assembly Appropriations Committee

This bill extends the volunteer exemption for the payment of prevailing wages until January 1, 2024. While volunteers are currently exempt from prevailing wage, without the passage of AB 327 special districts would be prohibited from using volunteers on public works projects beginning January 1, 2017.

Attendees successfully conveyed the message to their legislators that, in addition to significantly increasing burdens upon local agencies delivering public works projects, AB 1315 would have increased costs and decreased local control at a time of great demand for infrastructure.

This bill would have required local agencies to take on the responsibility and liability for storm-water pollution prevention for every construction project over one acre in size.

For more than 10 years, this exemption has proven a vital tool in keeping Californians connected to both their local community and our state’s environment and natural resources in a meaningful, productive way. This bill recently passed the Assembly Floor and was set to be heard in the Senate Labor and Industrial Relations Committee.

Thanks to our members’ advocacy efforts AB 1315 was held in the Assembly Appropriations Committee and will not be moving forward.

The final bill that attendees of Special Districts Legislative Days advocated on was the Mandate Reimbursement portion of the State Budget.

ASSEMBLY BILL 327 (GORDON): Prevailing Wage Exemption for Volunteers CSDA Position: Support Location: Senate Labor and Industrial Relations Committee

MANDATE REIMBURSEMENTS Under the direction of Governor Jerry Brown, the Department of Finance has issued a letter to the State Controller requesting the full $765 million in pre-2004 unpaid mandate reimbursements be sent out to those special districts, cities and counties that have not yet been reimbursed.

On May 19, 2015, over 200 CSDA members traveled to Sacramento to hear from key policymakers and to meet with their legislators on some of the most important issues facing the special district community.

During the last few weeks of May and in early June we witnessed the positive impacts of these legislative visits. These results show the change that can occur when legislators hear from their constituents.

TAKE ACTION: You can always visit the Grassroots Action Center at www.csda.net for the latest critical issues affecting special districts.

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California Special Districts Association Districts Stronger Together

BOARD SECRETARY/CLERK Premiere Training for Board Secretaries/Clerks

October 18 – 20, 2015 • Lake Tahoe, California

Co-sponsored by the Special District Risk Management Authority

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What are the Top Three Things Special Districts Need to Know about CEQA in 2015?

The California Environmental Quality Act is here to stay as it celebrates its 45th anniversary. CEQA requires that public agencies consider the environmental impacts of both private and public projects. CEQA has a multitude of procedural and substantive requirements, which often change. Although most new requirements in CEQA result from court holdings, recent legislation and executive orders could impact how special districts and other agencies conduct their environmental review.

Three of the most important new requirements and issues are discussed below.

Changes to CEQA Requirements Regarding Tribal Cultural Resources Pursuant to Assembly Bill 52 AB 52 now requires that agencies preparing CEQA documents evaluate a project’s potential impact to a “tribal cultural resource.” Additionally, under AB 52, lead agencies may be required to consult with a California Native American tribe prior to the release of a negative declaration, mitigated negative declaration or environmental impact report for a project. AB 52 goes into effect July 1 and districts will need to understand and follow the new analysis and consultation requirements.

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BREAKOUT SESSION CEQA: What Special Districts Need to Know in 2015 and Beyond September 22 2:00 – 3:15 p.m.

New Supreme Court Test for the Use of Categorical Exemptions In March, the California Supreme Court issued its much anticipated ruling in Berkeley Hillside Preservation v. City of Berkeley (2015) 60 Cal. 4th 1086, which definitively addressed when an agency can rely upon the use of CEQA categorical exemptions. Of key importance, the ruling found that, provided a project falls within the four corners of a categorical exemption, it can only be challenged under the “unusual circumstances” test from State CEQA Guidelines section 15300.2. Such unusual circumstances can be, for example, features that distinguish the action from others in the exempt class, such as size and location.

Greenhouse Gas Impact Analysis in CEQA documents Recent developments have addressed the required nature of Greenhouse Gas impact analyses in CEQA documents. For much of the past decade, many CEQA documents have attempted to conduct a quantitative analysis using consistency with a 2020 emissions reduction goal as the threshold of significance. Now, however, 2020 is only five years away, and there is some question as to whether CEQA requires an analysis that looks farther into the future. The only emissions reduction goals that exist for California beyond 2020 come from executive orders set by former Governor Arnold Schwarzenegger and recently set by Governor Jerry Brown, which do not have the same effect as laws or regulations. Nevertheless, the Court of Appeal in Cleveland National Forest Foundation, et al. v. San Diego Association of Governments (2014) 231 Cal. App. 4th 1056, found that an EIR was invalid for failing to look at consistency with the 2050 goal set by Schwarzenegger’s executive order. This issue is currently pending before the California Supreme Court.

Michelle Ouellette is an attorney with Best Best & Krieger LLP.

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MOVERS & SHAKERS Placer County Water Agency has appointed Ross Branch as public affairs manager. In the newly created position, Branch will serve as an advocate on legislative and regulatory issues affecting the agency.

Kathleen Jurasky, district manager for Palm Springs Cemetery District, was named Business Woman of the Year at the 2015 Cathedral City Orion Awards Gala.

MOVERS AND SHAKERS Does your district have an individual recently appointed as general manager or a top staff position? Have you recently elected a new board president? Have any district personnel been appointed to other community boards or positions? Email your district’s movers and shakers to Nicole Dunn, editor, at nicoled@csda.net and we will include them in our next issue!

State Treasurer John Chiang appointd Cucamonga Valley Water District Assistant General Manager and Chief Financial Officer Carrie Corder to his State Task Force on Bond Accountability.

Tahoe Forest Hospital District Interim CEO Virginia Razo has resigned her position to take a new job out of state.

The governing board of Great Basin Unified Air Pollution Control District announces the appointment of Phillip Kiddoo as air pollution control officer.

Cindi Beaudet, manager of Temecula Public Cemetery District, was named Manager of the Year at the 57th Annual Conference of the California Association of Public Cemeteries.

Costa Mesa Sanitary District Maintenance Supervisor Steve Cano was named Supervisor of the Year by the Santa Ana River Basin Section of the California Water Environment Association.

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The Community Center for Pleasant Hill Recreation and Park District won the 2014 Award of Excellence for Outstanding Facility by the California Park and Recreation Society.

After more than nine years of serving veterans and his community, Bruce Thiesen, CEO of Clovis Veterans Memorial District, has retired.

California Special District – July-August 2015

Numb3rs 72% of adults use a social network site.

In Brief Students Become Watershed Explorers for One Day

Air District Receives Funds for Cleaner Trucks

Thanks to the Solano Resource Conservation District, area students were able to experience hands-on learning that reinforced what they were taught in the classroom. The students spent a week of in-class science lessons on watersheds and the natural elements – animals, birds and plants – that exist in them. Those classroom lessons were followed up with a five-hour outdoor session, with workbook exercises and discussion, led by the district as part of its Watershed Explorers program. The program works to introduce students to ecology and the idea of stewardship.

Over 2,100 third-graders in the county were able to go through the program. Throughout the day, students also collected data about plants and other life in the watershed. That data will be used by next year’s participants, who will assess how annual events, like flower bloom, respond to changing weather patterns.

San Joaquin Valley Air Pollution Control District received over $677,000, which will be used to swap out 48 heavy duty trucks with 2013 or newer engine models. The money comes from the U.S. Environmental Protection Agency, as part of its DERA fiscal year 2014 allocation, which includes engine replacements and technologies to clean up older diesel engines. Older engines emit large amounts of pollutants and particulate matter that are linked to health problems, such as asthma and lung damage. The effort is part of a West Coast Collaborative, a partnership that leverages public and private funds to reduce emissions from the most polluting diesel sources in impacted communities.

“This project to reduce diesel emissions is a great example of how collaboration among public and private partners can make a difference to our local communities,” says Jared Blumenfeld, EPA regional administrator for the Pacific Southwest. “As a result, residents of the San Joaquin Valley will be able to breathe cleaner, healthier air.”

Sources: Association of California Healthcare Districts, Camarillo Acorn, Contra Costa Times, Davis Patch, The Reporter, Visalia Times Delta

Students and Seniors Meet Monthly, Form Bonds Through a partnership with Camarillo Health Care District (CHCD) and Dos Caminos Elementary School, fourth- and fifth-grade students are connecting with seniors in the district’s Adult Day Center program. The partnership forms the Generation Us program. CHCD’s Business Development Manager Ann Springer said she was looking for a way to bring seniors together with elementary schools students. The seniors at the Adult Day Center have various forms of dementia and other impairments and chatting with other people provides necessary mental stimulation. The school is located behind the center so students can walk to the center once a month for scheduled visits with the seniors. “At first, many of the kids were tentative to come over and talk to the seniors, who were strangers to them,” says school Principal Mark Asher. “But now many of the kids know (the seniors’) names and they can’t wait to come over here and show off some of what they are learning in school. A few have even made a special connection.” The program also helps to bridge a gap between the generations and learn about the commonalities they both share.

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GOT NEWS?

California Special District wants to hear about newsworthy people, projects, events and accomplishments in your district. To submit a news item for In Brief, contact Nicole Dunn at nicoled@csda.net or (877) 924-2732.

District Approves Health Care Trust

Scholarships Awarded to Students Interested in the Medical Field Grossmont Healthcare District (GHD) awarded $85,500 to 38 area high school students who have expressed interest in a career as a healthcare professional. The students, from 19 different local schools, were selected by school administrators for their academic excellence, outstanding citizenship and a desire to help others by working in the healthcare field. “We applaud these specially selected students who have demonstrated great potential in leading the next generation and shaping the future of healthcare,” says GHD Board President Robert Ayres. “We are proud to invest in America’s youth and encourage these young adults as they continue their studies in the healthcare field with the goal of serving in the workforce of tomorrow.

We look forward to following their successes through college and beyond.” The students will receive the scholarship funds upon completion of their first semester of college, contingent on completing at least nine units with a grade point average of 2.0 or higher. GHD has provided scholarships to students since 1999.

Moraga-Orinda Fire District officials have agreed to set up a trust for the funding of postemployment health care benefits. The district plans to deposit $84,000 into the trust, invest the funds, and use the earnings to cover an almost $17 million liability it faces for future retiree health benefits. “We’re beginning to exercise the fiscal discipline necessary to really begin to pay down any OPEB unfunded liabilities,” says Board Member Steve Anderson. The district has also taken other steps to decrease the debt, including approving a new labor contract that caps what the district contributes for medical and dental insurance for its employees and retirees. “This was a significant accomplishment for the district,” according to the district’s Administrative Services Director Gloriann Sasser. Based on projected investment returns resulting from the $84,000 pre-funding contribution, the health care debt could be reduced an additional $5 million this year.

Cemetery Celebrates New Arboretum Davis Cemetery District recently celebrated its new arboretum. The arboretum features a collection of over 150 species of native and California adapted plants suited for the local climate, soil and water. According to the district, it will serve the community over many years as an educational resource and a place of peaceful contemplation. The district, which has been in existence for over 160 years, also features a natural swale and walking labyrinths on its grounds.

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California Special District – July-August 2015

Flip: Turning challenge into opportunity Interview with Peter Sheahan Peter Sheahan is the founder and CEO of an organization called ChangeLabs. At ChangeLabs, they work to deliver large-scale behavioral change projects for their clients.

Sheahan has worked with companies all over the world, including Apple and IBM, and espouses the importance of learning to “flip.” According to Sheahan, when we change our perspectives on things, we can find opportunities we may not otherwise have discovered.

California Special District asked Sheahan to explain what it means to flip, why it’s important at times to shift our perspectives, and the importance of taking intelligent risks.

(And what exactly is an “intelligent” risk anyway?)

You have extensive experience in the business world. Over the course of that experience, how did you come up with the concept of the need to “flip”?

I think the need to flip comes out of the fact that most organizations are facing some level of disruption right now. When you think of California special districts, it might be in the form of environmental concerns like water, it could be legislation-related, or it could be in the form of demographic challenges as they relate to human capital. At the end of the day, private or public sector, we’re all facing some level of disruption and in order to respond to that disruption, we can’t keep approaching things with the same mindsets, paradigms and belief systems we have in the past.

Peter Sheahan

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You are facing a water challenge right now and let’s say you approach it as: “How do I reduce water use in California and manage the fall-out that comes from that?” Instead, what if you were to say: “How do I reduce water consumption in California and have residents be happy about it?”

What exactly does it mean to “flip”?

To flip is essentially taking a new look at an issue or approaching a problem from a new perspective.

For instance, I remember back in the early days when we were conceptualizing the idea of “flip,” I had a close friend who at the end of every year, instead of saying, “How do I grow my business?” or “How do I reduce my costs?” he’d say, “How do I double my business and halve my costs?” And it was such an interesting exercise to watch what followed when he came at it from that lens. It got me interested in how our assumptions and belief systems affect the quality of our thinking.

You are facing a water challenge right now and let’s say you approach it as: “How do I reduce water use in California and manage the fallout that comes from that?” Instead, what if you were to say: “How do I reduce water consumption in California and have residents be happy about it?” It’s a slightly different question but it leads to a whole different set of answers.

Instead of coming up with responses such as “Let’s increase the cost, reduce the risk, and manage the fall-out that comes from increased rates,” you might actually instead produce a whole campaign on the environment and what it means to build a sustainable California. You might approach things from a whole different angle. That’s what it means to flip. If you alter your assumption and belief system, you can massively enhance the quality of the thinking.

You have stated that the thinking that has made us successful to date will not in the future; in fact, in many cases, it will hinder us.

Why is this the case?

You advocate leaders taking intelligent risks. How can a leader discern between a risk worth taking and one that is not?

I’ll give you an example. Traditionally we try very directly to control the message that gets sent to citizens or to control the way those citizens interact with their core services. So we tell them we’re only open from nine o’clock until four o’clock and here’s what we will and won’t prioritize. And I think we’re seeing the need for that to change. Technology has entered into the market and completely disrupted what we can do from the service perspective. Now you can access services from anywhere 24/7 on your smart phones and if you keep approaching engagement from the lens of control and restrictiveness, you’re never going to make the best use of technology. You need to approach the opportunity for engagement from the lens of full service and enhancement and less control.

In other words the paradigms for service delivery in the past may not be so great for the future. Just take that example, you could reduce the cost of delivering essential civic service whilst also enhancing the quality of the experience at the same time.

In my opinion, there’s no amount of cost-benefit analysis and no amount of theoretical business case development that can really answer that question. If every member of a special district thought back to every assumption that underpinned a strategy or environmental impact statement or an economic feasibility study, what you usually find is the assumptions that underpinned the study in the first place usually prove to be wrong and the ultimate prediction doesn’t end up coming true. I have a fundamental belief that in order to truly manage risk, we have to actually take a little bit more of it.

California Special District – July-August 2015

Continued on page 16

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We are a full-service certified public accounting firm providing financial and compliance audits, accounting services, OPEB calculations, tax and consulting services to Special Districts. We offer custom-designed web based accounting services to meet your needs. Our audit services provide an in-depth review of your financial practices by experienced professionals. Our OPEB calculation services are a low-cost alternative to a full actuarial review.

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Peter Sheahan [continued] What I mean by that is, with many things, we can pilot and test projects.

Let’s say we wanted to test your booking system for tennis courts in your recreation and park district. You may not go in and put in a brand new technology platform across every public recreational environment in the district overnight based on some document you produced with a consultant. You may actually test with two or three recreational facilities and see what it would look like. Based on that, you might be able to better determine costs, etc.

My point is it’s a much smaller risk to pilot that project at a small level than it would be to go all in. I think that’s the sort of risk-taking we want to encourage because it’s a more prudent use of taxpayers’ money and I think it enables much better project delivery because you discover what works and discard what doesn’t. In order to minimize the size of the risk you take, you need to take on more, smaller risks in the process.

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Transparency is a big challenge. We used to have a political process over which we could “control” the level of discourse or the forums in which they were discussed. Now you can’t go to the restroom without people telling several of their friends so we can’t assume they’re not going to weigh in on any type of public behavior. I think this concept of transparency is going to be a critical challenge governments face right now.

And it think there’s ultimately going to be two things they need to do in response. Number one is they’re going to have to embrace it and, rather than assume a citizenship doesn’t understand the political process, take them on that journey. Take them through the process.

Number two, I think greater levels of accountability are going to need to be applied as to how public money is spent. That doesn’t mean I think less public money should be spent, but I think greater transparency and accountability will need to be the outcome.

At this September’s Annual Conference one of the things you’ll be discussing is how to turn chaos into opportunity by leading the market in response to new regulations, customer expectations and technology. Special districts are constantly facing all of these challenges. What can attendees of this conference look forward to hearing from you on how to address these challenges?

First, we’re not going to spend the whole time talking about what’s changing. We’re going to spend most of the time talking about how to respond. You’re going to get value about what you can do instead of learning more about the stuff that already keeps you up at night.

Second, we’re going to draw on real world examples - case studies of organizations who had to respond to disruption. We’re going to differentiate between those who have made good decisions and those who have made bad decisions. This isn’t going to be academic theory, it’s not going to be “I’ve climbed a mountain and so can you.” It’s going to be exploring what real world organizations and leaders in positions like yours have done in response to disruption. From that, there’s going to be a conversation around four areas.

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Special districts, as a form of government, answer to the public.

What are some of the challenges you see governments facing now? How can those challenges be addressed?

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KEYNOTE: PETER SHEAHAN

The first area is assumptions and biases - essentially the concept of flip. We will explore what gets in the way of leaders making good assumptions and developing a strong future-oriented bias instead of a historical one.

We’re going to talk about the role clarity and alignment play. Organizations don’t transform because they want to. They transform because they create alignment inside

FLIP! Creative Strategies for Turning Challenges into Opportunity, and Change into Advantage

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the organization’s structure. Alignment is the road to transformation, not desire. The third area is risk-taking, which we discussed earlier. And the fourth is collaboration.

Collaboration within the special district and also collaboration with citizens and tax payers.

Tell us about Change Labs. What is its mission?

We’re in the business of inspiring positive behavior change. We want organizations and individuals to make decisions and engage in behavior that betters not just themselves but the communities at large. We do 40,000 workshops a year for about 1.2 million people so you could argue we’re starting to deliver on that promise in a really meaningful way. A core part of that promise involves three things. It involves helping organizations get their strategic priorities and alignment right. One of the great

One of the great challenges in both the public and private sector is we have so many competing priorities that we wind up trying to do all of them and we don’t do any of them particularly well. We have organizations focus on the highest parts of their strategy so they can align behind those pieces. challenges in both the public and private sector is we have so many competing priorities that we wind up trying to do all of them and we don’t do any of them particularly well. We have organizations focus on the highest parts of their strategy so they can align behind those pieces.

Number two, we help with the alignment piece, which is getting their employees and systems and structures in line behind that. And three, we transform the way they engage with the marketplace – in districts’ case, the public – and we change the way the public engages as well. Because when you really think about it, organizations don’t operate in isolation. They operate in an ecosystem and we help them influence the behavior of key stakeholders in the ecosystem to make sure they can deliver on the organizational goals under the assumption those goals are good for the organization, the public and the stakeholders at large.

California Special District – July-August 2015

As is the case with businesses around the world, special districts are seeing new generations of workers coming in, as older generations are retiring. What is your advice for leaders in making the most of the generational diversity in the workplace?

First, I wouldn’t think of it through the lens of generations. If there’s one thing the multi-generational workforce is teaching us, it’s that people of all ages are making more demands in terms of the quality of their employment experience.

The focus is how you make your environment a better place to work. If you want to make your organization a better place to work, a couple of ideas. Number one, treat talent the same way you would treat customers. In the same way you build a brand and value proposition for a marketplace, or a community, consider talent the same way. The war for talent is real and it’s not going anywhere. Two, I would invest my discretionary energy in building the capability of managers. Because at the end of the day, no matter what age you are, the quality of an individual’s employment experience is directly proportional to the relationship they have with their boss. If you want to solve the diversity challenge, good management and good leadership is the way you do that. The real solution will not just solve a generational diversity challenge, it will solve a diversity challenge, period. And finally I would say park any biases you have about how younger people are, and how older workers are. Unfortunately, stereotypes have a bad habit of migrating toward negative generalizations and I think that’s neither fair or helpful. In our experience, approaching diversity through a really positive lens – wanting it and embracing it – as opposed to viewing it as something to be managed –can have a difference in the quality of the response.

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By Michael Bazzell, Computer Crime Specialist

HOW WOULD I YOU? Online fraud changes every day. We are seeing the evening news transition from reports of violent crime to details of the latest cyber-attack. Cyber criminals adapt their techniques constantly in order to always stay one step ahead of victims. Lately, many hacking groups focus on stealing a large amount of data from a company. This may be credit card numbers, login credentials, or private personal information such as SSNs. The groups find it much more lucrative to put the time into stealing large databases of information instead of targeting individuals. Recent attacks such as those against Anthem and Target are typical of these cases.

In these attacks, criminals stole the details of millions of people, causing great financial loss. However, these attacks are less common than smaller personal attacks.

I believe the most probable attack against smaller organizations is spear-phishing. Standard phishing has been around for many years. When you receive an email that appears to be from your bank, it is likely a phishing attack. These messages use a scare tactic to make you think that your account has been compromised, and provides an internet link that will allow you access to your account to protect your money. Of course, the link forwards to a cloned website that is visually similar to the real bank website, and the criminals hope that you provide your user name and password to gain access. As soon as you do, they access your real account and do as much damage as possible in a short amount of time. Spear-phishing takes things to a different level.

How would I hack you?

The following is a scenario that I would use if I were going to target a specific entity as a hacker. This is based on my experience investigating these types of incidents.

I would do my homework and research the entity. I might look up current and previous hiring opportunities

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for a position such as computer technician or network administrator. These posts probably include a reference to the type of systems that are present, such as the operating system of your network or the type of database that is used.

It is common for a recruitment post to mention required skills such as “SQL Server Administration” or “Microsoft Exchange Administration.” Both of these tell me enough about your environment to start an attack.

I would then create a list of employee names that I want to target. I would do this through Facebook, Twitter and LinkedIn. In my presentations, I show how a hacker can create a list of over 75 percent of a business’ employees by scraping these social networks in less than five minutes. I would then locate a few official email addresses from the company’s website in order to identify the format of all email addresses for the employees. For example, if I find Bob Wilson’s email address is b.wilson@company.com, I know that Mary Johnson is m.johnson@company.com, and Tom Williams is t.williams@company.com. I would use Excel to generate the list for me.

As you may know, our Microsoft Exchange Server was partially compromised in an early morning attack.

Fortunately, all of your information is safe; however, we need you to reset your password immediately. Any accounts that have not been converted by the end of the day will be disabled. Please click the following link to update your account. www.secure-email-server-company.com This email would be sent from a free program that will “spoof” an email address and name to be anything desired. I would search on LinkedIn to find the name of your computer network administrator and make the email appear to be from him or her.

The shady link in the message would forward to a server that I have full access to. As soon as you log in, I have your current credentials to your email account. I would use these to access your real account and look for bank statements, company accounts, etc. I might even send a quick note to everyone in your contact list telling them that I (you) are stuck in the U.K. and need $1,000 to get a new passport. I only need one person to respond and wire me money to make it worth my effort. If this message was not appropriate for your organization, I might choose something similar to the following.

Dear employee,

Be extremely cautious of unsolicited email messages. If anything seems out of place, challenge the message. If it appears to be from a co-worker, call that person and verify the details. If it appears to be from a business partner, contact that entity through known valid channels and verify the information. While challenging others is often considered rude, it may save you from becoming the next victim.

Also, be careful about the content that you post online. If your Twitter account mentions your upcoming vacation to Hawaii, you are helping a burglar. If your LinkedIn account summarizes your duties at your workplace, you are helping a potential cyber attacker. If your Facebook page has photos of your child with a nickname of “Mikey”, and your security question on your bank account is “What is my son’s nickname?”, you are really asking for trouble. Surprisingly, hackers have all of the time in the world to identify the smallest of vulnerabilities in your life.

Overall, I know that we cannot stop all computer crime. However, I truly believe that you can prevent it from happening to you.

Following some general rules will prevent you from being the easiest target for the criminal.

Keeping a close eye on your online activity will help you avoid becoming the next victim on my incident list.

The attachment with this message would be a malicious PDF or PPT file that would not raise any red flags. When you open it, your machine becomes infected and I would have remote access to your data. I would send this email from the name of someone in your payroll division for that extra feel of authenticity.

Overall, these messages always contain three very specific elements: 1. Scare Tactic: This could include a data compromise (example 1) or payroll issues (example 2) 2. Action Requested: This could include clicking a link (example 1) or opening a file (example 2) 3. Familiarity: This could include familiar details (your software provider) or personnel (your payroll manager)

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KEYNOTE: MICHAEL BAZZELL Hiding from the Internet

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As you know, we have finished the migration to the new payroll direct-deposit system. If you are receiving this message, you have not submitted the required form in order to have your paycheck deposited into your account. Please complete the attached document and return by the close of business today. You cannot be paid until this data is entered.

What to watch for

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Dear employee,

Ultimately, I will use your user name and password combination on any business networks that you may have access to such as online email or private VPN’s. If you use the same password for multiple services, I will compromise all of them. Every day, several employees fall for these scams.

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Now that I have the email addresses of my targets, I would generate a custom bulk message similar to the following.

Consultant Connection

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A CSDA program developed to give members access to a pool of experts who provide exclusive discounts and special benefits for a variety of services. To learn more about these offers visit us online at www.csda.net/consultant-connection.

Conference Highlights from our Consultant Connection Participants - Onboarding the Board: Properly Preparing New Board Members for Service BHI MANAGEMENT CONSULTING - SB 854: Administration of Prevailing Wage Requirements on Public Projects CONTRACTOR COMPLIANCE AND MONITORING - Informing Solid Board Decisions KAMPA COMMUNITY SOLUTIONS LLC - Payments for State Mandates & What Programs are Still Available NICHOLS CONSULTING - Is Your District as Good as it Could Be? What Your Board and Staff Can Do to be Even Better RAUCH COMMUNICATION CONSULTANTS

BUSINESS AFFILIATE SPECIAL ACKNOWLEDGEMENTS

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California CAD Solutions, Inc. GIS Implementations www.calcad.com

PARS Benefits, Retirements www.pars.org

CPS HR Consulting Consulting, HR, Recruiting, Training www.cpshr.us

Special District Risk Management Authority Risk management coverages www.sdrma.org

CSDA Finance Corporation Tax-exempt financing www.csdafinance.net

Tyler Technologies Software Technology Services www.tylertech.com

Hanson Bridgett LLP Legal www.hansonbridgett.com

USC SOL Price School of Public Policy Higher Education www.usc-edu/schools

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THANK YOU TO OUR DIAMOND, PLATINUM AND GOLD LEVEL BUSINESS AFFILIATES FOR THEIR GENEROUS SUPPORT.

HIGHLIGHT

PARS - Pre-Funding Solutions to Reduce District Liabilities - Both OPEB and Pension!

PARS assists special districts with pre-funding retiree healthcare (OPEB) for GASB 45. The PARS Trust, endorsed by CSDA, uses an IRSapproved irrevocable trust for pre-funding and lowers OPEB liabilities by 30-40 percent. PARS also offers a new Pension Rate Stabilization Program (PRSP) using the same 115 Trust which: helps districts prefund pension using surplus funds, lowers NPL under GASB 68, provides potential for greater returns than the general fund, and offers local control over these assets.

For more information, please contact Mitch Barker at 800.540.6369 x116 or mbarker@pars.org.

California Special District – July-August 2015

[Solutions & Innovations]

Just in time development: Coaching within the workplace

By Melissa Asher, CPS HR Consulting

Coaching within the workplace has finally arrived in the public sector. A long-time practice in the private sector, this staff development tool has been slow to take root within government.

The cost of coaching may be an initial deterrent (often $250-$300/hour), but savvy organizations see coaching as an important strategy to develop leaders at all levels who are facing increasingly new and difficult challenges around cost-effective service delivery, ongoing economic stress, political polarization and intervention, and a barrage of technological change to adopt and keep up with.

Coaching allows for individualized development rather than a “one-size-fits-all” group training approach to growing skills, abilities and confidence.

This means your investment is more targeted.

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Now don’t get me wrong, group training and shared learning is an important element of staff development, but it is not the only element, and it is often not the best way to bring about behavioral change at the management level.

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BREAKOUT SESSION Coaching for Performance September 23 3:45 – 4:45 p.m.

At the management level technical skills are generally set, but interpersonal and problem solving skills are challenged by new and different internal and external circumstances calling for new and different thinking.

Coaching is an ideal way to bring about new and different thinking. It is about inspiring, empowering and engaging people to establish a new level of thinking, commitment and performance. The International Coaching Federation, a leading authority on coaching, concurs with their definition of coaching: Partnering with individuals in a thought-provoking and creative process that inspires them to maximize their personal and professional potential.

Through my experience in the training and development world, two key aspects of this definition are potential and performance.

If done well, the coaching relationship fosters an attitude and action orientation around reaching beyond the status quo.

Having an objective person who will work one-on-one to solve complex workplace challenges, elicit new ideas and solutions, and help the person being coached identify blind spots is one of the most effective ways to expand our learning and thinking.

This can be done with external coaches as well as internally with a partnership between a manager and an employee.

Whether or not the coaching is being done by an external or internal coach, the following common elements must be present for coaching to be successful: • Both the coach and person being coached need to be fully present and committed to moving forward in a learning mode.

• The person being coached must adopt an attitude of engagement not entitlement.

• There needs to be a commitment to building and understanding context without getting stuck in past thinking or blaming.

• The coaching sessions need to connect how thinking and behavior are related for the person being coached.

• The person being coached must embrace the possibility of self-exploration and change.

• Coaching discussions are held confidentially and should not impact a performance appraisal.

These elements set up the foundation for a productive coaching relationship. In the manager/employee coaching relationship the agenda is often more restricted to improving performance

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SHARE YOUR SOLUTIONS AND INNOVATIONS Do you have a new program, process or facility that increases efficiency, reduces costs, improves service or otherwise helps make your community a better place to live? California Special District wants to know about it! Contact Nicole Dunn at nicoled@csda.net or (877) 924-2732.

and technical skills rather than organizational change. A shift is needed on the part of the manager from controlling and monitoring to one that is more collaborative and nurturing, engaging the employee in a shared understanding of what needs to be achieved and how to achieve it. In all cases the focus is on improved success on the job. Ideally, coaching transcends even that goal to create breakthroughs at any level.

Getting to a breakthrough through coaching may come quickly or may take more time. The difference comes down to two main ideas: 1. The attitude and willingness of the employee being coached.

2. The level of trust that develops between the coach and person being coached.

At the core of coaching is a trusting relationship and several basic assumptions about employees. The assumptions are that employees:

• Want to succeed at work.

• Can contribute ideas that improve work processes and the environment.

• Will work hard to achieve goals that they have helped develop.

• Are open to learning if they can see the value to them in terms of improved success on the job, recognition, and/or reward.

Likewise the coach must adopt an attitude of openness and helpfulness which the person being coached sees as a total commitment to that person’s success. There are several ways to do this. One way is to introduce new possibilities and use questions to have a conversation where the person works through what the new possibility would mean for them, the impact to those around them, and what is trying to be achieved. Another way Continued on page 30

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California Special District – July-August 2015

[Community Connections]

When the going gets tough: Advanced crisis communications for special district officials

By Marty Boyer, Communication Advantage

If over our careers we thought it was tough to deal with the intense spotlight of traditional news agencies, the light cast by today’s media and “new media” can be almost blinding. The tide that turns against you today can become a full-blown tsunami of bad news within hours or even minutes.

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Mixed metaphors aside, online news coverage and social media have complicated the challenges of crisis management. News sites are updated several times a day, and private citizens add their two-cents worth almost continuously. Facebook, Twitter, Instagram, blogs, and other emerging social and web-based news outlets mean there are literally countless media vehicles out there, able to deliver your bad news to a national or worldwide audience instantly. Virtually every member of the public with a cell phone has the potential to be the reporter who first tells the world of your misstep, often with video of the district vehicle being driven recklessly,

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BREAKOUT SESSION Advanced Media Relationships: When the Going Gets Tough, Step it Up! September 22 3:30 – 4:30 p.m.

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the employee starting a fight in a bar, the leaking sewer left unattended, the dangerous play equipment in your park, or the security or peace officer using questionable tactics.

In today’s hyper-connected world, your bad news can go viral almost instantly, and can generate a crisis with very long legs if not handled quickly and well.

All of us have heard the expression, “Get out in front of it.” But what does that cliché actually mean and how do we achieve it in the context of the crisis, disaster or scandal that generates the widespread and aggressive interest of the news media? It’s a fair question with a far more complex and demanding answer than ever before. Let’s review a few of the most important principles for district policymakers and staff leaders who hope to drive the solutions in a rational process, rather than have actions forced upon them: 1. Be the first to tell and define your story. If you don’t, someone will happily step in to tell it from their perspective. For those of us in the crisis management profession, this has long been the guiding, number one tenet of crisis management. In today’s world, let’s call it NUMBER ONE. 2. If you aren’t prepared to tell the whole story, or even much of it, start with something. Even if all you can responsibly say in those first hours is that you are on it, gathering information, and will give them more as soon as possible, say that.

In doing so, you will demonstrate good faith, start shaping the narrative, and share something productive with the public. You will also have said clearly that you will be an available, accessible source for the story.

3. Don’t forget to include online media in your crisis management strategy. Post that early message of leadership on your website and social media sites. Progressive crisis management must face the reality of today’s media and its breadth and speed of impact.

(If your district is not using at least a few new media platforms, it is missing valuable tools in the public engagement toolbox.)

SHARE YOUR COMMUNITY CONNECTIONS Is your district interacting with the community in a new and original way? California Special District wants to know about it! Contact Nicole Dunn at nicoled@csda.net or (877) 924-2732.

4. Effective messaging is crucial. Identify the two, three or maybe four bullet points that are your overriding messages to the public and target audiences in this crisis. Again, in the dawning hours of the crisis, those points may be as simple as “We are aware of the situation, trying to gather information, and committed to addressing the problem.” The messages will evolve – quickly, we hope – to focus on actions to solve the crisis.

5. Bring in trusted advisors sooner rather than later.

Whether it is an attorney, your public information officer, a crisis management specialist, an experienced mentor, or (likely) a combination of the above, bring in professionals in high-risk communications. Include someone you trust to tell you the unvarnished truth.

Then listen to them.

6. Avoid the common pitfalls of the mighty. In three decades of managing fallout from local government crises, this writer’s experience is that two factors far outweigh all others in generating negative impact and prolonging the crisis: the dual human instincts to go into denial and go on the defensive. They are tactics for avoiding very hard realities when facing those realities is required. At best, defensiveness comes across as unwillingness to face what’s going on; at worst, it can look guilty. If leaders and your district are also in denial about problems, you will not be a meaningful voice in reaching solutions.

7. Don’t be afraid to start a brush fire to prevent the forest fire. Sometimes, you may have to acknowledge smaller mistakes, or take what some may advise is a risk, to keep a relatively minor problem from becoming years of ugly headlines and investigations.

8. Ask the tough questions – of staff, policymakers, and yourself. Anticipate and plan for those awful questions you really don’t want to talk about because they will be asked. Again, denial is your worst enemy.

9. If the situation calls for difficult actions, take them as soon as practically possible. If policy needs to change, or heads need to roll, begin the appropriate process and do it! Don’t subject the district to months of news stories, editorials, bloggers, pundits and grand juries to criticize your inaction and eventually, determine the outcomes. If it’s the right thing for the organization, exercise leadership and get it done when you can responsibly do so.

California Special District – July-August 2015

10. Recognize and accept that time is not an advantage very often. There is a disconnect between the ponderous nature of local government action and the speed of today’s media and public patience. That is not to imply that the responsible special district should throw caution and procedure out the window and surrender to the media’s almost insanely short deadlines. But it is vital that you balance process and deliberation with the need to take action if you hope to “get out in front of it.”

11. Tell the truth. There simply is no substitute for honesty and no easy recovery from anything short of the truth.

Marty Boyer is the owner/principal of Communication Advantage, a Sacramentobased consulting firm specializing in crisis management, strategic communications planning, and media training for public agencies throughout California.

Communicate on Point

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Persuade with Integrity Commit to Excellence

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Legal Brief CALIFORNIA’S EPIC DROUGHT CREATES SIGNIFICANT CHALLENGES AND OPPORTUNITIES FOR SPECIAL DISTRICTS Hanspeter Walter, Kronick Moskovitz Tiedemann & Girard

The New Era of Sustainable Groundwater Management The drought has predictably caused many areas to rely heavily on groundwater. Record high levels of groundwater pumping and falling groundwater levels, which were occurring in some areas even before the drought, did not go unnoticed by the Legislature. So last year, for the first time in California’s history, it enacted a statutory scheme to regulate groundwater.

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The drought California is suffering – the worst in modern times – is profoundly affecting special districts whose missions and operations are intertwined with water. These districts face the acute challenges and hardships of this drought on a daily basis. The drought is an immediate crisis, but it also presents important opportunities for special districts to ensure that they, their constituents, and California are prepared to thrive in a future of increased water scarcity.

The Sustainable Groundwater Management Act, Water Code § 10720 et seq., (“SGMA”) has significant implications for any special district using groundwater.

SGMA’s requirements apply to about 127 high- and medium-priority groundwater basins throughout the state. It requires special districts, cities, or counties to achieve groundwater sustainability, which generally means that no more groundwater is pumped than is recharged to the aquifer. Local agencies may also voluntarily choose to implement provisions of SGMA in lower priority basins.

SGMA’s first major requirement is designation of groundwater sustainability agencies (“GSA”). Any local public agency that has water supply, water management, or land use responsibilities within a groundwater basin is eligible to become a GSA. A patchwork of local agencies may separately choose to be GSAs to regulate portions of a basin in coordination, or such agencies may form a joint powers authority to serve as GSA. Counties are the default if no other local agencies within a basin elect to be GSAs, but counties may refuse. If no local agencies elect to become the GSAs for a basin by June 30, 2017, the State Water Resources Control Board (“Water Board”) may step in to regulate the basin.

SGMA’s other key requirement is that GSAs adopt detailed groundwater sustainability plans by 2020, for some critically overdrafted basins, or by 2022 for other medium- and high-priority basins. Plans must include detailed water budgets for basins and chart a path to sustainability within 20 years. The Water Board will review plans and may step in to impose its own “interim” sustainability plan if local plans: (1) are not timely prepared, (2) are insufficient, or

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BREAKOUT SESSION Ongoing Drought and California’s New Sustainable Groundwater Management Act Creates New Challenges for Local Agencies

September 22 11:00 a.m. – 12:00 p.m.

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Because special districts operate under so many different enabling statutes, each impacted district must carefully consider its existing policies and authorities when determining how to implement water reduction mandates.

(3) are not implemented to achieve sustainability. Local agencies that become GSAs will have sweeping powers to implement plans, including: (1) requiring measuring and reporting pumping, (2) restricting pumping, (3) imposing well-spacing requirements, (4) prohibiting new wells, and (5) imposing fees to fund their monitoring and management activities, which may include constructing new facilities and acquiring alternative water supplies.

For many groundwater basins, achieving sustainability may require pumping restrictions or the development of alternative water supplies. Thus, difficult choices and conflicts seem unavoidable. In addition to protecting their own interests, SGMA presents a prime opportunity for special districts to exercise leadership in the management and stewardship of their local groundwater resources.

The Increasing Focus on Efficient Water Use State and local agencies have taken a multitude of actions in response to the drought. One of the most significant is the Water Board’s adoption on May 5, 2015 of emergency regulations mandating reductions in potable urban water use ranging from eight percent to 36 percent depending on district.

(23 Cal. Code Regs. § 863 et seq.) The regulations raise a host of specific legal and practical issues, including: • What water conservation measures can and should districts implement?

• How can districts enforce water conservation measures?

• How can districts address the potential loss of revenue from reduced water use?

• Can and will the Water Board penalize districts that fail to meet the water reduction targets?

California Special District – July-August 2015

Because special districts operate under so many different enabling statutes, each impacted district must carefully consider its existing policies and authorities when determining how to implement water reduction mandates. Furthermore, a recent 4th District Court of Appeal opinion in Capistrano Taxpayers Ass. v. City of San Juan Capistrano may have dealt a significant setback to water conservation efforts by finding a fairly routine tiered water rate structure (i.e., the more you use the more you pay) unconstitutional under Proposition 218. Unless depublished or reversed, the opinion will cast a cloud over one of the most effective ways to reduce water use.

The State is also spearheading a host of other regulatory changes and programs to further reduce water use and demand. The Energy Commission will implement a multi-million dollar high-efficiency appliance rebate program. The Department of Water Resources (“DWR”) will oversee similar programs to install low-flow toilet and remove lawns. Special districts should look to partner with these agencies to create or augment their own parallel programs, or assess whether they can avail themselves of some of these incentives to reduce their own water use and operating costs. The Building Standards Commission and DWR will also amend the Building Code and Model Water Efficient Landscape Ordinance to impose leaner outdoor watering budgets on residential, commercial, school, and hospital projects.

These and other state and local programs will enable Californians to do more with less water.

Special Districts Must Lead the Charge to Safeguard California’s Water Future California’s continued economic and demographic growth is in part a testament to the stellar, but often unnoticed, performance of various special districts to capture, supply, treat, deliver, and dispose of water supplies. This drought, however, appears to have triggered a new social and political consciousness regarding the importance and scarcity Continued on page 37

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For more information visit www.Bickmore.net or contact Rick Brush at 800.541.4591 or rbrush@bickmore.net.

LEADERSHIP

Get to know the Special District Leaderership Foundation at the CSDA Annual Conference and Exhibitor Showcase 3. Visit SDLF staff and board members at the SDLF booth in the exhibit hall. This is a great place to learn more about all four of our programs and what applies to you and your district.

Aren’t you lucky? There are seven ways to get engaged with SDLF’s mission of promoting and recognizing excellence in the governance and management of special districts at the upcoming CSDA Annual Conference & Exhibitor Showcase: 1. Participate in the SDLF-sponsored “So You Want to Be a General Manager?” workshop on Monday, September 21. This session is a practical career development workshop for senior executives and emerging leaders in special districts.

2. Take the Special District Administrator (SDA) exam.

You can pre-register and take the exam on Monday, September 21 at 9:00 a.m.

4. Buy a ticket to the wine raffle. Every year at the Annual Conference, SDLF raises money to fund the James Kohnen Scholarship Fund. This scholarship provides registration fees for the Special District Leadership Academy and is open to elected/appointed special district board members/trustees from districts with budgets of under $10 million. Last year alone SDLF gave away over $18,000 in scholarships.

5. Get governance training that applies toward the District of Distinction Accreditation. Your board members, general manager and executive staff need six hours of governance training to achieve this accreditation. You can earn these hours at the pre-conference workshop, Special District Leadership Academy Module 1: Governance Foundations, on Monday, September 21.

CONGRATULATIONS TO THOSE WHO HAVE COMPLETED THE FOLLOWING SDLF PROGRAMS.

Districts of Distinction Accreditation

District Transparency Certificate of Excellence

• McKinleyville Community Services District accreditation – May 2015

• Pleasant Hill Recreation & Park District – April 2015 • Stege Sanitary District renewal – May 2015

Recognition in Special District Governance • Gloria Dizmang, Palmdale Water District – April 2015 • Palmdale Water District, Gold Recognition – April 2015

28

• Lee Diaz, Santa Maria Cemetery District – April 2015 • Susan Fox, Resort Improvement District #1 – May 2015

Public Member Appointees

CSDA Appointees

Katie Kolitsos, Chief Consultant, Assembly Local Government Committee Geoffrey Neill, California State Association of Counties

Stanley Caldwell, Mt. View Sanitary District Jo MacKenzie, Vista Irrigation District Sherry Sterrett, Pleasant Hill Recreation & Park District

Staff

SDRMA Appointees Special District Leadership Foundation 1112 I Street, Suite 200 Sacramento, CA 95814 www.sdlf.org

David Aranda, SDA Sandy Raffelson, Herlong Public Utility District Jean Bracy, SDA, Mojave Desert Air Quality Management District

6. Attend the CSDA Awards Luncheon on Wednesday, September 23 and be recognized.

SDLF awards will be presented at this fun and fast-moving luncheon, including District of Distinction, Recognition in Special District Governance, Special District Administrator, and District Transparency Certificate of Excellence. If you would like to be recognized for any of these programs at the conference your application needs to be received by SDLF no later than Friday, August 7.

Neil McCormick, Administrator Megan Hemming, Program Manager Charlotte Lowe, Program Assistant Rick Wood, Finance Manager

7. Last but not least - attend the SDLF signature event “Taste of the City” on Wednesday, September 23. This year’s theme is BBQ, Blues and Brews and, as the name implies, this is an event full of good things. This party also has a purpose - raising much needed scholarship funds for districts with limited budgets for professional development. All funds raised during the silent auction go directly to scholarships.

SPECIAL DISTRICT LEADERSHIP FOUNDATION Programs promoting good governance.

UP FOR THE

CHALLENGE? Prove your commitment to transparency

District Transparency Certificate of Excellence A stand-alone program of SDLF, made available to districts that apply and meet certain requirements. It is also a required component of the District of Distinction Accreditation. This program promotes transparency in the operations and governance of specials districts to the public.

For more information and an application, visit www.sdlf.org or call 916.231.2939.

SDLF is supported by

California Special District – July-August 2015

The Special District Leadership Foundation (SDLF) is a an independent, non-profit organization formed to promote good governance and best practices among California’s special districts through certification, accreditation and other recognition programs.The SDLF and its activities are supported through the California Special Districts Association and Special District Risk Management Authority.

Solutions and innovations [continued from page 23] is to give honest feedback that will help a person remove a blind spot. This can be done based on direct observation, observing the effects on others or results, or taking any number of assessments (i.e. conflict style, personality, change preference). In this case, the coach is bringing light to a behavior, attitude or action that may be producing an undesirable outcome in a way that the person can think about and choose to make a change.

Coaching can bridge the gaps created by the steady stream of retirements, the changing workplace demographics, and the call for ever greater levels of performance. What could be better than individualized skill building delivered exactly when you need it and can apply it? With coaching you get just-in-time development. Give it a try!

A useful coaching model that we use in our work is called “Agreed Upon Accountability.” This four-step model can be used with virtually any situation.

Step 1: Begin with a request.

Step 2: Host an open conversation to reach agreement.

Step 3: Create commitment with a “by when” or “how much” defined.

Step 4: Hold each other mutually accountable.

Melissa Asher is the training and development manager at CPS HR Consulting, a self-supporting public agency that provides a full range of integrated HR solutions to government and nonprofit clients. She runs a training center in Sacramento, California that offers open enrollment and group training, leadership development, and coaching throughout the United States. She has over 18 years of experience inspiring others to reach their full potential and strives to impact organizational performance by enabling clients to apply learning in their everyday lives. CPS HR offers a one-day course on Coaching Within the Workplace if you would like to learn more about this topic.

The bottom line is that coaching is an effective development tool that can empower employees by building competence and confidence.

Special thank you to Michael Grabow, instructor with CPS HR Consulting, for some of the content in this article.

District Snapshots El Dorado Hills Community Services District

El Dorado Hills Community Services District celebrated Arbor Day this year by planting trees all around the community.

30

California Special Districts Alliance Bringing the best in resources, products and services to all special districts.

FINANCING • Infrastructure Improvements • Buildings, Land & Equipment • Refinancing

Meeting your financing needs.

877.924.2732 • www.csdafinance.net

The California Special Districts Alliance is a combined partnership with California Special Districts Association, CSDA Finance Corporation and the Special District Risk Management Authority.

California Special District – July-August 2015

anaging Risk

Legal update The California Fair Employment and Housing Council (“FEHC”) just issued the final revised CFRA regulations which will go into effect on July 1, 2015.

The new CFRA regulations followed some, but not all, of the 2008 FMLA regulations. This Special Bulletin highlights the most significant impacts the new CFRA regulations will have on California employers.

Here is a summary of the regulations’ highlights: • Similar to but exceeding the protections afforded under the federal Family and Medical Act (FMLA), CFRA applies to California employers with 50 or more full or part-time employees. The law provides for up to 12 weeks of workplace family leave for employees who have worked 1,250 hours within the past 12 months within a 75-mile radius of the worksite.

• Unlike the 2008 FMLA regulations, the CFRA regulations do not allow for an employer to require a new medical certification form until the first certification has expired. In other words, the employer cannot ask for a new medical certification if the employee has a certification certifying the employee’s “lifetime” condition.

• Like the 2012 Pregnancy Disability Leave (“PDL”) regulations, the CFRA regulations state that an employee’s right to maintenance of health benefits under the CFRA is a separate and distinct right from an employee’s right to maintenance of health benefits under the PDL. • Similar to the FMLA, employers can only retroactively designate leave as CFRA leave if it provides appropriate notice to the employee and it does not cause harm to the employee.

• Employees who are receiving disability benefits or partial wage replacement benefits while on CFRA leave are not considered to be on “unpaid leave.”

Therefore, employers cannot require those employees to use any accrued paid leave during the CFRA leave.

• There are new notice requirements that employers will need to implement at their physical worksites and possibly their websites.

A proud California Special Districts Alliance partner.

32

Eligibility for Leave

Definition of “spouse.”

The CFRA regulations now expressly include registered domestic partners and same-sex partners in marriage in the definition of “spouse.”

Definition of “key employee.”

The CFRA regulations have essentially adopted the FMLA regulations’ definition of a “key employee.”

Subject to certain notice requirements, an employer can deny a key employee who takes CFRA leave reinstatement to the same or comparable position.

Fraudulently-obtained CFRA Leave.

The CFRA regulations include a “new” permissible defense for CFRA leave that is fraudulently obtained or used. This is not necessarily a “new” defense, but the regulations now expressly state, “An employee who fraudulently obtains or uses CFRA leave from an employer is not protected by CFRA’s job restoration or maintenance of health benefits provisions. An employer has the burden of proving that the employee fraudulently obtained or used CFRA leave.” (2 C.C.R. section 11089(d)(3).) Employers who suspect fraudulent use of CFRA leave should seek legal counsel if they are going to deny leave (or discipline an employee) based on fraud.

Officers

David Aranda, President Jean Bracy, Vice President, Mojave Desert Air Quality Management District Ed Gray, Secretary, Chino Valley Independent Fire District Special District Risk Management Authority 1112 I Street, Suite 300 Sacramento, CA 95814 tel: 800.537.7790 www.sdrma.org

Members of the Board

Terry Burkhart, Bighorn-Desert View Water Agency Muril Clift, Cambria Community Services District Sandy Raffleson, Herlong Public Utility District Michael Scheafer, Costa Mesa Sanitary District

Medical Certification

Definition of “inpatient care.”

An illness, injury, impairment, or physical or mental condition that involves “inpatient care” qualifies as a “serious health condition.”

Previously, “inpatient care” meant an “overnight stay” in a hospital, hospice, or residential health care facility. The regulations interpreting the FMLA still define “inpatient care” as an “overnight stay.” (29 C.F.R. section 825.114.) However, the new CFRA regulations only require an “expectation” that the individual will remain overnight.

(2 C.C.R. section 11087(q)(1).)

This means an individual who is admitted to the hospital with the expectation that he or she will stay overnight, but is discharged later or transferred to another facility, still qualifies as a person with a “serious health condition.”

Recertification.

The 2008 FMLA regulations allow employers to request recertification of a serious health condition at least once every six months, even for lifetime conditions. (29 C.F.R. section 825.308.)

However, the old and new CFRA regulations only allow an employer to request recertification “[u]pon expiration of the time period the health care provider originally estimated.” (2 C.C.R. section 11091(b).) The FEHC did not adopt the FMLA’s recertification provision because “[l]imiting the circumstances for which an employer may seek recertification

Consultants

Lauren Brant, Public Financial Management Ann Siprelle, Best Best & Krieger, LLP David McMurchie, McMurchie Law John Alltop, Bickmore Risk Services & Consulting Charice Huntley, River City Bank James Marta, CPA, Auditor Karl Snearer, Apex Insurance Agency Doug Wozniak, Alliant Insurance Services, Inc.

is necessary to preserve privacy rights and protect employees on CFRA-qualifying leave from the unnecessary burden of being required to repeatedly justify their need for leave when medical authorization for the leave has already been provided.”

As such, because an employee with a serious health condition is likely using FMLA and CFRA leave concurrently, California employers still cannot request a medical recertification from employees with certified lifetime conditions.

Second opinion on medical certification.

The FMLA regulations (and former CFRA regulations) allow employers to require the employee to obtain a second opinion of his or her own serious health condition, if the employer simply has a “reason” to doubt the validity of the medical certification provided by the employee. (29 C.F.R. section 825.307.) The new CFRA regulations now clarify that the employer must have a “good faith, objective reason” to doubt the validity of the medical certification before requiring a second medical opinion.

Notice Requirements

The new CFRA regulations change some of the notice requirements for employers.

Upon receiving a request for CFRA leave, the employer shall respond within five business days. (2 C.C.R. section 11091(a)(6).) This is different from the previous requirement of 10 calendar days. Although the CFRA regulations do not adopt the specific notice requirements set forth in the FMLA regulations – the general notice, eligibility notice, rights and responsibilities notice, and designation notice – we recommend that employers use the same notices for both FMLA and CFRA for administrative ease and to ensure compliance with all notice requirements.

(Please note, however, when requesting medical certification from the employee, we recommend that California employers do not use the DOL’s sample form because it does not take into account the California Confidentiality of Medical Information Act.)

California Special District – July-August 2015

SDRMA Staff

Gregory S. Hall, ARM, Chief Executive Officer C. Paul Frydendal, CPA, Chief Operating Officer Dennis Timoney, ARM, Chief Risk Officer Ellen Doughty, Chief Member Services Officer Debra Yokota, Claims Manager Heather Thomson, CPA, Finance Manager Wendy Tucker, Senior Member Services Specialist Danny Pena, Senior Claims Examiner Alana Batzianis, Senior HR/Health Benefits Specialist Jennifer Ng, Claims Examiner I Shawn Vang, Accountant Rajnish Raj, Accounting Technician Rachel Saldana, Administrative Assistant

Every employer must post a notice explaining the CFRA provisions and procedures for filing complaints “in conspicuous places where employees are employed.” (2 C.C.R. section 11095(a).)

In addition, employers must post the notice “where it can be readily seen by employees and applicants for employment.” (2 C.C.R. section 11095(a) (emphasis added).) “Electronic posting is sufficient to meet this posting requirement as long as it otherwise meets the requirements of this section.” (Id.) Employers may post the CFRA notice on an Intranet site, but employers will also need to post the notice in an area accessible to applicants.

Retroactive Designation of Leave

The FMLA regulations allow the employer to retroactively designate leave as FMLA leave with appropriate notice, provided that “the employer’s failure to timely designate leave does not cause harm or injury to the employee.”

Similarly, the CFRA regulations only allow retroactive designation of leave as CFRA leave when the employer provides “appropriate notice to the employee and where the employer’s failure to timely designate does not cause harm or injury to the employee.”

Notably, the “harm or injury” must be caused by the employer’s failure to designate the leave as FMLA or CFRA leave earlier. This is different Continued on page 36

Money Matters CSDA FINANCE CORPORATION CASE STUDY

Helping MCSD meet community needs constructed three state-of-theart buildings to provide an indoor sports and recreation facility (McKinleyville Activity Center), a community activities center (Azalea Hall) and a library (a branch of the Humboldt County Library).

McKinleyville is an unincorporated community in the north coastal region of California, about 300 miles north of San Francisco. The mild climate and combination of coastal, mountain and valley areas bring opportunities for a wide range of recreational activities. Just minutes from McKinleyville, residents can fish for salmon and steelhead, hike beneath some of the world’s tallest trees and bike along the Pacific Coast Trail.

McKinleyville Community Services District (MCSD) was created in 1970 to provide the area’s water and sewer services. Since then, MCSD has grown to include street lighting, open space maintenance, and parks and recreation services. In recent years, MCSD has dramatically expanded its recreational services by developing approximately 44 acres of community parks: Hiller Park Playground and Picnic Area, Hiller Park Loop Trails, Hiller Sports Complex, Pierson Park and Larissa Park. In addition, the district has CSDA F C

A proud California Special Districts Alliance partner.

34

The district’s most recent project is the new McKinleyville Community Services District Teen and Community Center, a dedicated teen and community center addition to the district’s existing recreation and activity center. Approved by the community and funded by a local ballot measure, the project was developed using an integrated collaborative approach with input gathered from teens and the community at large. The architecture and planning firm LDA Partners was hired to assist in the collaboration process, which included: teen brainstorming sessions; meetings with community service organizations; meetings with the general public; presentations at the local junior high school; polling the youth offline and online via social media; and presenting the design to the McKinleyville Municipal Advisory Committee.

In addition to gathering input from the local teens, LDA Partners met with the school districts and other community business leaders to ensure that their needs and expectations would be met.

As a result of these collaborative efforts, McKinleyville teens and the community at large will have the facility they helped design. Soon they will be able to enjoy a 6,600 square-foot center that will include a quiet study room, a divisible multi-purpose room, a sound-proof music room, a central game room that can be used for multiple activities, a covered outdoor performance area, and a community commercial kitchen to augment an existing area that will seat 450 for banquets and where

Officers

Jo MacKenzie, President, Vista Irrigation District Paul Hughes, Vice President, South Tahoe Public Utilities District Steve Perez, SDA ,Secretary, Rosamond Community Services District Leslie Keane, Treasurer, Orange County Cemetery District

CSDA F C

CSDA Finance Corporation 1112 I Street, Suite 200 Sacramento, CA 95814 tel: 877.924.CSDA www.csdafinance.net

Members of the Board

Don Humphrey, Livermore Area Recreation and Park District John Martin, Tehachapi-Cummings County Water District Matthew McCue, Mission Springs Water District

cooking classes can be held. The center has been designed so that up to seven distinct and separate activities could take place at the same time without programmatic overlap.

The collaborative approach is also being utilized for the staffing and administration of teen programs. MCSD and the Boys and Girls Club of the Redwoods are in the process of producing a Memorandum of Understanding and a Business Plan for staffing and programming specific for the facility.

Since funding for the project will be levied on property tax bills for the community members of McKinleyville over a 20 year period, a means for financing the construction of the addition would be necessary for the success and completion of the community’s vision. The CSDA Finance Corporation, in partnership with consultant firm Brandis Tallman, was able to facilitate that financing.

Recently closed financings If your agency has a financing need, now is the time to take advantage of low interest rates. Contact the CSDA Finance Corporation for a no-obligation quote today – 877.924.2732 or www.csdafinance.net.

Recently Closed Financings Emerald Bay Services District Capital improvements - $5,000,000 Bodega Bay Public Utility District Wastewater system updates - $3,955,000 *Feather River Recreation & Park District Refinancing - $3,000,000 *With their recent refinancing, Feather River Recreation and Park District estimates they will see a savings of $275,000 to $500,000 per year, through the life of the loan.

“Ours was not an easy transaction. I have to say that the financing team we have been working with has gone above and beyond.

It has been an extremely positive experience.”

- ANN WILLMANN GENERAL MANAGER, FEATHER RIVER RECREATION & PARK DISTRICT

California Special District – July-August 2015

Consultants

Rick Brandis, Brandis Tallman, LLC David McMurchie, McMurchie Law Josephine Libunao, BNY Mellon Trust Co., NA William Morton, Municipal Finance Corporation Albert Reyes, Nossaman, LLP Saul Rosenbaum, Prager & Co., LLC Nicole Tallman, Brandis Tallman, LLC

CSDAFC Staff

Neil McCormick, Administrator Cathrine Lemaire, Program Manager Charlotte Lowe, Executive Assistant Rick Wood, Finance Manager

Brandis Tallman LLC was selected to broker a lease-purchase financing agreement for a total financed amount of $1.4 million.

The fees and interest rates were competitive and the loaning institution happened to be the local bank where MCSD has their business accounts.

MCSD’s General Manager Greg Orsini said, “It was a pleasure working with CSDA Finance Corporation staff and consultants; they are knowledgeable, eager to help and always accessible.

Brandis Tallman has many years of experience helping public agencies get financing on projects that may be difficult to get convention loans on. Their team was able to put together this loan with little MCSD staff time and provided excellent service including a presentation to our board of directors. I would highly recommend giving CSDA Finance Corporation an opportunity to help when you are in need of financing.”

Managing Risk [continued from page 33] from the harm an employee purportedly suffers from not being able to take additional leave time.

Although the regulations do allow for employers to designate leave retroactively, it is imperative employers designate leave and provide appropriate notice to employee as soon as practicable.

Use of Accrued Paid Leave While on CFRA Leave

Although not a change from the prior CFRA regulations, the new regulations clarify that an employer may require or an employee may elect to use vacation or paid time off while the employee is on CFRA leave. In contrast, an employee may elect or an employer may require an employee to use accrued sick leave only if the CFRA leave is: (1) for the employee’s own serious health condition, or (2) for another reason mutually agreed upon between the employer and employee. In other words, without employer agreement, employees cannot use sick leave to care for a family member with a serious health condition or for bonding leave.

Use of sick leave to care for family members.

Even if the employer and employee do not “mutually agree” to allow use of accrued sick leave to care for a family member, the employer may still be required to allow the employee to use some of the sick leave for the employee to care for a family member with a serious health condition. Labor Code section 233 (“kin care leave”) states that employers who provide sick leave “shall permit” employees to use accrued and available sick leave in an amount not less than the sick leave that would be accrued during six months of the employee’s current rate of entitlement.

The employee’s kin care leave to attend to an illness of a child, parent, spouse, or domestic partner could run concurrently with the employee’s CFRA leave.

In addition, AB 1522 (“Paid Sick Leave Law”), effective July 1, 2015, requires employers to provide up to three days of paid sick leave for employees to use for their own illnesses or to care for sick family members.

The overlap between the Paid Sick Leave Law and CFRA will only be for the caring of a parent, child, spouse, or registered domestic partner. Most likely, this will be the same overlap covered by kin care leave.

Employees receiving disability insurance while on leave.

An employee who is on paid disability leave or receiving Paid Family Leave (a form of insurance provided by the state) concurrently with his or her CFRA leave is not considered to be on “unpaid leave.” Therefore, the employer cannot require any such employee to use paid time off, sick leave, or accrued vacation. (2 C.C.R. section 11092(b)(2) and (3).)

Interaction with Pregnancy Disability Leave In 2012, the FEHC published PDL regulations stating that an employee’s right to maintenance of health benefits while on PDL is a separate and distinct entitlement from an employee’s right to maintenance of health benefits while on CFRA leave. (2 C.C.R. section11044(c).) The new CFRA regulations reinforce the FEHC’s interpretation that the entitlements under the two leaves are separate and distinct. (2 C.C.R. section 11092(c) (2).) This would allow for an employee to potentially receive health benefits for up to 29 1/3 weeks. Although the CFRA statute (Cal. Gov. Code section 12945.2(f)) arguably allows employers to limit maintenance of health benefit coverage 12 weeks, our recommendation is that employers follow the FEHC regulations and maintain health benefits during both the PDL and the CFRA leave separately.

36

What Does This Mean For Your Agency?

Update your leave policies.

With the new regulations going into effect on July 1, 2015, this gives your agency time to update its leave policies to comply with the new regulations. Your agency should have your legal counsel review your current related policies and employee handbooks regarding this topic.

Update your posted notices.

Update the notices posted by your agency in accordance with the updated text in the new regulations. (See 2 C.C.R. section 11095(d).) This includes any notices on your website.

However, as stated above, notices should be accessible to both employees and applicants.

Train your managers and supervisors.

Leaves laws are complicated and change frequently. We suggest that agencies periodically train managers and supervisors regarding the new leaves laws and how they interact with each other. This is a good year to provide training in light of the new Paid Sick Leave Law and the new CFRA regulations SDRMA will provide all Members with the new document required for posting as soon as we receive them.

Please contact SDRMA Chief Risk Officer Dennis Timoney at dtimoney@sdrma.org or call 800.537.7790.

Legal Brief [continued from page 27]

of water in California, which will not fade when the rain and snows return. Indeed, the administration and key officials have stated their intent that this water ethos be the new normal. This seems prudent considering that climate change will likely alter California’s hydrology and precipitation patterns for the worse.

Effective Public Outreach Practical Strategic Planning

A vast array of special districts must adapt and prepare California for its new water future. They will carry out the laws, regulations, and programs established during the drought long after this crisis passes, but they must also work to implement new programs and projects involving, for instance, stormwater capture, water recycling, groundwater recharge, and water quality. Urban and agricultural water districts, community services districts, stormwater and flood control districts, and park, recreation, and cemetery districts, among others,

figure to have prominent roles.

There are literally hundreds of millions of dollars available to kick start water projects and programs through the recently passed Proposition 1, other bond measures, and other local and state programs.

Special districts must seize this public, political, and financial momentum to ensure California’s water use remains among the most dynamic, efficient, and innovative in the world.

Hanspeter Walter is a shareholder at Kronick Moskovitz Tiedemann & Girard in Sacramento. He specializes in water, environmental, and administrative law.

Walter is also an adjunct faculty member at the University of the Pacific McGeorge School of Law, where he teaches a class on representing local public agencies.

Serving Local Government and California Public Agencies for Over 30 Years.

Effective Public Outreach Practical Strategic Planning 408/374-0977 info@rauchcc.com www.rauchcc.com

Big enough to have all the needed expertise.

Small enough to focus on your needs.

408/374-0977 info@rauchcc.com www.rauchcc.com Contact us for a FREE consultation.

California Special District – July-August 2015

[What’s so special]

A career for the ages Placer County Water Agency

Placer County Water Agency (PCWA), like many special districts, has seen its workforce grow increasingly generationally diverse over the years. The district has strived to make its environment one that encourages a culture of belonging, of teamwork and of growth. How has it been able to foster a positive working environment for its employees – regardless of their differences? And what exactly are the challenges that an organization faces when it has three different generations in one workplace?

ISTRICTS • T •D

Shelley Langan Human Resources Manager

• HE

LEADERSH IP

ay d s r Thuept. 24 S

ONFERENC E •C

Michael Willihnganz Director of Administrative Services

S OR • PECIAL •F

Conference Highlight

BREAKOUT SESSION Generations in the Workplace September 24 8:30 – 10:00 a.m.

Brad Sherwood

California Special District asked PCWA to tell us about their experience so far and how they approach the matter of generational diversity in the workplace.

What does the PCWA workforce look like, generationally speaking?

PCWA’s workforce is comprised primarily of Baby Boomers and Gen Xers, who are nearly evenly split, to collectively comprise 84 percent of our workforce. The remaining 16 percent of the workforce is comprised of Millennials. So, we currently have three generations in our workforce. Given the demographics of the labor market, the number of Millennials is expected to grow significantly over the next several years as Baby Boomers retire from the agency and vacant positions are filled.

What are some of the challenges PCWA has faced with having multiple generations in the workplace?

The underlying basis for generational differences lies in the historical and cultural events that people are exposed to during their formative years. These events help shape

38

Placer County Water Agency Established: 1957 Size: 215 regular employees Population: approx. 38,000 accounts

their subsequent values, beliefs and perspectives on life. Values, beliefs and perspectives manifest themselves as workplace behaviors and are labeled generational differences. With three generations at PCWA, we do see different approaches, styles and preferences as to how work is completed and how people interact with one another.

For example, the Millennials tend to ask a lot of “why” questions.

While the Baby Boomers and the Gen Xers may be more likely to accept an organizational decision or a work assignment at face value, Millennials often have a desire to understand the underlying rational for the decision or assignment.

Millennials are not timid about asking for a complete explanation.

Probably the biggest difference between the Millennials and the other generational groups is their comfort-level with technology. The Millennials grew up with technology and are very technologically savvy. They expect all data to be available in a digital format and expect the organization to rely on technology to create greater efficiencies. Baby Boomers and, to a certain extent Gen Xers, may not be as eager to embrace the use of technology. They may have to be sold on the benefits of a technology solution before supporting it. The Millennials, on the other hand, are often advocating for greater use of technology.

Budget: $108 million Location: Auburn, California Website: www.pcwa.net

Another difference we see across the range of generations is the level of organizational commitment.

The Millennials tend to view themselves as “free agents.”

If there are aspects of the job or the organization that are not completely fulfilling their needs, they are more likely to leave the organization than their Baby Boomer or Gen Xer counterparts. Baby Boomers and Gen Xers often remain with the organization, even if they are not completely satisfied. This could be because they have more invested in the organization (i.e., longer tenure) or perhaps they perceive they have limited options in the external labor market.

Even with the differences that are apparent across the various generations at PCWA, our employees do seem to share a core set of values with regards to the workplace environment. These common values include the desire for rewards and recognition commensurate with performance, respect and collaboration in employee interactions, and a sense of loyalty (perhaps individually defined) to the employment relationship.

How, specifically, have you addressed those challenges?

PCWA has addressed generational challenges through proper talent management. We hire not just for skillset but, more importantly, for compatibility with the culture of the organization. Organizational culture is defined as shared assumptions, norms and values.

When you understand your organizational culture, and hire employees who are compatible with that culture, generational differences become less of a challenge.

The key is to hire for organizational fit and then embrace any generational differences that may exist. Often when employees are unsuccessful in an organization it is not because of generational differences but, rather, it is due to their incompatibility with the workplace culture. It is important to recognize that each generation may bring different yet highly valuable attributes to the organization. Diversity in a workforce is good.

Diversity of perspectives, opinions and approaches makes an organization more effective, more satisfying to current employees and also more appealing to prospective employees.

California Special District – July-August 2015

At PCWA, we have a very strong, positive organizational culture.

It’s a culture that recognizes and values all employees, regardless of their generational label, and respects inclusiveness as reflected in decision-making processes, the stewardship of resources, and the establishment of partnerships and alliances.

We are extremely fortunate to have a board of directors that is committed to sustaining this workplace culture through purposeful hiring, employee retention, staff development and succession planning.

Are there innovative ways PCWA has worked to bridge the generational differences in the workplace?

For more than 20 years, PCWA has provided all new hires with Organizational Effectiveness Training (OET) as part of the formalized onboarding and socialization process. This threeday program is designed to create an organizational culture of collaboration. The training emphasizes an interest-based, non-adversarial approach to communication and problemsolving. It provides employees with principles and concepts that allow them to focus on issues rather than personalities. It further provides employees with the skills to engage in decisionmaking based on objective reason rather than on power or coercion.

Most importantly, the training Continued on page 42

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Microsoft Dynamics for Public Sector

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CERTIFIED PUBLIC ACCOUNTANTS Accounting, Auditing, Tax & Consulting

Achieve maximum productivity, meet compliance

2.5 W x 2.55 IN H bw

requirements and streamline business processes.

Grant Management

SPECIAL DISTRICT FINANCIAL SERVICES

Project Management

AUDIT, ACCOUNTING & OPEB CALCULATIONS

BI and Reporting

Budget Planning

Time and Expense Processing

David Becker, CPA — Partner (916) 993-9494 dbecker@jpmcpa.com n www.jpmcpa.com

SPECIAL DISTRICT

www.finley-cook.com

Microsoft Dynamics AX Microsoft Dynamics NAV

405-395-5152

FINANCIAL /INVESTMENTS

Accounting & Finance Karl Drexel, SDA

Specializing in Small Special Districts Let me help prepare your books for your auditor QuickBooks Proficient

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FINANCIAL PLANNING U T I L I T Y R AT E ST U D I E S E N E R GY CO N S U LT I N G BOND MARKETING BARTLE WELLS ASSOCIATES

FINANCING • Infrastructure Improvements • Buildings, Land & Equipment • Refinancing

I N DE PE N DE N T P U BL IC F I N A NC E A D V I S ORS

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HUMAN RESOURCES Public CHOOSE WITH CONFIDENCE.

Sector Human reSourceS conSulting

LEADERSHIP

RISK MANAGEMENT

Special District Leadership Foundation

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Health | Property & Liability | Workers’ Compensation

LEGAL

Best Law Firm for Special Districts Proudly serving California Special Districts in all areas of:

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OTHER

For over 25 years, Meyers Nave has practiced public law in California, combining in one firm general counsel services as well as the many specialties that public agencies need. Our readiness to help clients find creative solutions coupled with our extensive knowledge of local, state and federal laws allow us to cut to the core of our clients’ issues and deliver solid results.

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Oakland • Los Angeles • Sacramento • Santa Rosa • San Francisco • Fresno

Effective Public Outreach Practical Strategic Planning FIRM

Offering Innovative Solutions for Special Districts for 35 Years (916) 983-8000 dmcmurchie@mcmurchie.com

California Special District – July-August 2015

408/374-0977 info@rauchcc.com www.rauchcc.com

What’s so special [continued from page 39] workplace culture. We are creating an environment in which generational differences are compatible with and enhance the culture of the organization.

What can special districts do to make their offices a positive work environment for each generation? accentuates the “human element� in the workplace and the value of building relationships and appreciating differences.

In addition to the OET training, which is intended to properly integrate new employees into the culture of PCWA, we also invest heavily in job-related training and development for our employees. Our goal is to ensure that our employees have the knowledge and skills to be completely comfortable and successful in their role at the agency. We emphasize on-going education and development so that employees have the opportunity to grow with the agency and move up into higher level positions. Our preference is to promote from within the organization. This philosophy tends to foster greater organizational commitment, preserve institutional knowledge and expertise, and create stability and tranquility in the organization.

Through our hiring process, enculturation program and commitment to employee development, our goal is to transcend generational differences. In essence, generational differences become secondary to our

There are three primary elements to establishing a work environment that is positive for each generation.

First, special districts need to understand their unique organizational culture and then recruit and hire employees who can excel within that culture. Every organization is different. The values, attitudes, norms and behaviors that are desirable in one organization may not be a good fit at another organization. Many organizations do not take the time to actually identify and define their culture. It is important to recognize the traits that would make someone successful in the organization and then recruit and hire for those traits.

Secondly, it is important to move beyond labels (e.g., Baby Boomers, Gen Xers) and not become preoccupied with the stereotypes of the various generations. Special districts should demonstrate an appreciation for diversity of perspective and work style. The emphasis should be placed on creating a workplace environment of understanding, respect and trust where differences are valued and used to make the organization stronger and more effective. The overarching goal is to create an environment in which each individual is contributing to the betterment of the organization.

Finally, special districts should invest in their employees by providing training and developmental opportunities. This is important for all generational groups but is especially important with Millennials.

According to U.S. Census Bureau statistics, Millennials are one of the fastest growing segments of the labor force. In 2015, Millennials are projected to surpass the Baby Boomer generation as the largest living generation. Millennials crave career development. They expect the organization to provide them with training and development opportunities that are relevant to their jobs. When these opportunities are lacking, turnover is the likely outcome.

Bythe

Numb3rs

43% of individuals age 65+ use social media network sites.

If special districts hire for organizational fit, embrace diversity of perspective and style, and make an educational investment in their employees, what should emerge is a motivated, engaged, committed, and long-tenured workforce.

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Protected From the Unexpected As California’s trusted risk management advisor, SDRMA protects its members from the unexpected by providing a unique combination of coverage protection programs, world-class risk management consulting and experienced technical experts.

Our goal is to serve as an extension of your staff so our service is seamless to you and your agency. Visit our website at www.sdrma.org or call us at 800.537.7790 for more information about our Workers’ Compensation, Property/Liability or Health Benefits Programs. We look forward to serving you!

Special District Risk Management Authority

Trusted Risk Management

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