2020 CA Special District May-June by California Special Districts Association

C ALI FO R N I A

SPECIAL DISTRICTS Vo l um e 15 , I s s u e 3 • Ma y- Ju n e 2 0 2 0

A Publication of the C alifornia Special D is tr ic ts A s s oc iation

MANAGERS CORNER • PAGE 26

MANAGING PEOPLE AND PROJECTS DURING A TIME OF SEPARATION California Spec Districts Assoc ial iation

Districts Strong

er Together

UTILIZING RETIREES IN COVID-19 RESPONSE & RECOVERY page 20 What’s So Special:

Healing With Horses PAGE 36

CSDA’s 2020

Accompanied with your copy of California Special Dsitricts:

CSDA’s 2020

BUYER’S GUIDE

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DISTRICT OF DISTINCTION ACCREDITATION

TAKE YOUR DISTRICT TO THE NEXT LEVEL.

SPECIAL DISTRICT LEADERSHIP FOUNDATION

The District of Distinction Accreditation is designed as a way for districts to highlight their prudent practices important to effectively administer and govern a special district. In a time when proper fiscal management and responsibility in public agencies is paramount, it has become increasingly important to demonstrate that districts have sound fiscal management, transparency, and governance policies/practices in place. Apply today! 1112 I Street, Suite 200, Sacramento, CA 95814 • t: 916.231.2909 • www.sdlf.org Volume 15 • Issue 3

TABLE OF CONTENTS

Managers Corner:

Managing People and Projects During a Time of Separation

Community Connections:

Building a Clean Energy Future

Kevin Brown Think Inside the Box

05 President’s Message

28 Take Action: Special Districts Confront COVID-19 Pandemic

20 Legal Brief: Utilizing Retirees in 30 Managing Risk: FMLA/CFRA Leave: 08 Get to Know Your COVID-19 Response & Understanding the CSDA Board Members Recovery Leave Process during COVID-19 Outbreak 13 You Ask, We Answer: 23 Districts Make the Difference: Volunteering for Fire Protection Agency Sponsored District Initiates Nation’s 32 Money Matters: Understanding Pension Programs First Pandemic Medical Costs 101: Finding Response Unit 14 Movers and Shakers Information in Your 24 Solutions & Innovations: CalPERS Report 16 Ask the Experts: Success in the Sierra: Critical Communication Innovative Partnership 36 What’s So Special: During a Crisis Event Begins Restoring Healing With Horses, Forest Health One Step At A Time: 06 CSDA News

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

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

California Special Districts • May-June 2020

PRESIDENT'S MESSAGE

CSDA Business Affiliates Are Important Partners to Special Districts Welcome to our annual Buyer’s Guide edition of California Special Districts! I first want to Joel Bauer, CSDM thank all CSDA’s Business CSDA Board President Affiliate Members. These companies work with member districts each day to keep things running. Whether it’s a law firm that provides critical guidance, CPAs to ensure best practices and financial prudence are being practiced, or the myriad of consultants that help provide expertise and guidance to district staff and boards, Business Affiliates are important partners to special districts! As we celebrate and appreciate CSDA’s Business Affiliates and as you look through the 2020 Buyer’s Guide, I encourage you to flag companies that your district could reach out to now or in the future. CSDA Business Affiliate Members are some of the best in the business and many regularly speak on important topics throughout the year at various CSDA events and webinars. Additionally, you can always access and search a

current listing of Business Affiliates on CSDA’s website at csda.net/buyers-guide. Please note that in the wake of the COVID-19 coronavirus, CSDA is working with our hotel partners to help ensure the health and safety of all attendees, staff, and speakers at CSDA events. If you are ill or have been exposed to the COVID-19 virus, CSDA is offering no cost cancellation until further notice. CSDA is in contact with each of the event facilities for our upcoming conferences regarding their cleaning and sanitizing procedures and other precautions. Updates regarding CSDA events will be communicated through social media and our weekly CSDA eNews as needed.

CSDA COVID-19 RESOURCES CSDA has developed and launched a COVID-19 online community to provide members with timely information, resources around the topic, and allow districts to share information on how they are adapting operations.

CSDA Board and Staff Officers

Staff

JOEL BAUER, CSDM, PRESIDENT, West Side Cemetery District

NEIL MCCORMICK, Chief Executive Officer MEGAN HEMMING, Professional Development Director CASSANDRA STRAWN, Member Services Director KYLE PACKHAM, Advocacy & Public Affairs Director TODD WINSLOW, Publications Director RICK WOOD, Finance & Administration Director JENN JACOBS, Member Services Representative ELEANOR BOLING, Member Services Representative EMILY CHA, Member Services Specialist MARCUS DETWILER, Legislative Analyst DILLON GIBBONS, Senior Legislative Representative VANESSA GONZALES, Communications Specialist COLLEEN HALEY, Public Affairs Field Coordinator JIM HARROLD, Database & Online Communities Coordinator MUSTAFA HESSABI, Legislative Analyst-Attorney CHARLOTTE HOLIFIELD, Public Affairs Field Coordinator COLE KARR, Public Affairs Field Coordinator CHRIS NORDEN, Public Affairs Field Coordinator CHRIS PALMER, Public Affairs Field Coordinator AMBER PHELEN, Executive Assistant ALYSSA SILHI, Legislative Representative JENNIFER SMITH, Professional Development Coordinator ERIC SPENCER, Member Services Specialist ANTHONY TANNEHILL, Legislative Representative DANE WADLÉ, Public Affairs Field Coordinator ROMAN WASKIEWICZ, Legislative Assistant JAMES WILFONG, Senior Designer

RYAN CLAUSNITZER, CSDM, VICE PRESIDENT, Alameda County Mosquito Abatement District ELAINE MAGNER, SECRETARY, Pleasant Valley Recreation & Park District STANLEY CALDWELL, TREASURER, Mt. View Sanitary District GREG ORSINI, PAST PRESIDENT, McKinleyville Community Services District

Members of the Board DON BARTZ, CSDM, Phelon Pinon Hills Community Services District RALPH EMERSON, Garberville Sanitary District CHAD DAVISSON, CSDM, Ironhouse Sanitary District VINCENT FERRANTE, Moss Landing Harbor District JERRY L. GILMORE, Truckee Sanitary District PETER KAMPA, CSDM, Groveland & Copper Valley Community Services District JO MACKENZIE, Vista Irrigation District NOELLE MATTOCK, El Dorado Hills Community Services District SANDI MILLER, CSDM, Selma Cemetery District LORENZO RIOS, Clovis Veterans Memorial District KATHERINE STEWART, Vandenburg Village Community Services District FRED RYNESS, Burney Water District ARLENE SCHAFER, Costa Mesa Sanitary District

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

A proud California Special Districts Alliance partner

CSDA NEWS

2020 Buyers Guide

California Special Districts Association Districts Stronger Together

CSDA’s 2020

Take a special look at this year’s buyers guide in a new format. Keep it nearby as a reference throughout the year when looking for a service or product to help your agency. Filled with business affiliates who are also easily identified as “Endorsed Affiliates” and “Consultant Connections” this is a valuable piece for all CSDA members.

2020 CSDA Awards What to expect:

CSDA Members Earn More Than $50,000

Participants of CSDA’s Commercial Card program recently received rebates totaling over $50,000, with some agencies receiving more than $4,000 cash back. Especially designed for CSDA members and administered by Umpqua Bank, the CSDA Commercial Card program provides online reporting tools, greater security over employee spending, and enhanced rebate opportunities.

Vote for CSDA 2021–2023 Board of Directors!

Voting for our upcoming election is done through a web-based online voting system, allowing your district to cast your vote easily and securely. Electronic Ballots were emailed to the main contact in your district on May 25, 2020, the first day of the election. All votes must be received through the system no later than 5:00 p.m. July 10, 2020. If you have any questions, please contact Amber Phelen at amberp@csda.net.

Chat with Us!

The chat feature on CSDA’s website allows members to ask questions and get assistance online. This feature is working extremely well in providing members with exceptional service. During regular business hours, it is in live chat mode and after hours, it is available to send a direct email to member services which will be replied to first thing the next day. Go to CSDA’s website and look for the chat box in the bottom right of your screen. We look forward to chatting with you!

The CSDA Awards presentations will take place virtually via Zoom on Wednesday, August 26. All winners and participants will be notified before the event. For questions, contact Vanessa Gonzales at vanessag@csda.net. CSDA presents various annual awards including: • • • • • • •

Board Member of the Year General Manager of the Year Staff Member of the Year Innovative Program/Project of the Year Exceptional Public Outreach & Advocacy CSDA Chapter of the Year Ralph Heim Exceptional Outreach & Advocacy • William Hollingsworth Award of Excellence. Check out more details at CSDA.net.

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Volume 15 • Issue 3

get to know

YOUR ?

CSDA Board Members

WE ASKED SOME OF OUR CURRENT BOARD MEMBERS TWO QUESTIONS:

1. Why is it important to you to serve on the CSDA Board of Directors? 2. What does CSDA mean to you?

BAY AREA NETWORK

1. From my initial contact with CSDA, I have been a big fan. Thankfully, I am in the position to work with the other talented directors from various backgrounds throughout the state towards setting the mission, vision, and goals for the amazing CSDA staff. 2. CSDA is the primary resource for its members as it relates to advocacy, RYAN CLAUSNITZER, CSDM training, benefits, and networking. They are successful through their honest Alameda County Mosquito Abatement message of promoting good-government practices of accountability such as District transparency, fiscal responsibility, and open communication.

STANLEY CALDWELL

Mt. View Sanitary District

CHAD DAVISSON, CSDM

Ironhouse Sanitary District

1. Serving on the CSDA board provides me the opportunity to serve a broad range of special districts, advocating for their resource needs. 2. CSDA is an outstanding association committed to providing service and representation for special districts throughout California. As the general manager of a sanitary district, CSDA’s advocacy work provides exceptional value to our agency.

1. The primary reason I serve on the board is that I want to make a difference. Serving has increased networking opportunities and expanded my network. I have become a better leader and have cultivated new skills. Serving on the board of directors of an organization that I admire may be one of the most rewarding and valuable decisions I’ve made. It is a wonderful way to support a cause that I care about. By serving on the board, I have the challenge and responsibility of understanding how everything needs to work together for an organization to accomplish its goals. It is extremely rewarding and an honor to serve. I am lucky to have great mentors in the past and to have worked with many well-respected special district leaders. It has given me confidence to serve in my community and region. 2. CSDA promotes the efficient, economical, and responsive public services offered by the independent special districts and promotes good governance and improved core local services through professional development, advocacy, and other services for all types of independent special districts. CSDA provides education and training, insurance programs, legal advice, industry-wide litigation and public relations support, legislative advocacy, capital improvement and equipment funding, collateral design services, and, most importantly, current information that is crucial to a special district’s management and operational effectiveness. My personal goal and commitment is to promote the efficient, economical, and responsive public services offered by the independent special districts. CSDA is a great way to learn and network with other special districts. California Special Districts • May-June 2020

COASTAL NETWORK

KATHERINE STEWART

ELAINE MAGNER

Vandenberg Village Community Services District 1. I feel that my time on the board is extremely valuable right now. The two board members, Mr. Vince Ferrante and Ms. Elaine Magner, are the best in the business with a wealth of valuable insight. So many have informed me that I would be mentored by this board and it will set me up for success. I believe my background experience will give a unique perspective along with the heavyweights. 2. California Special Districts Association is critical for all special districts to survive and be recognized in the State Legislature. They represent us in all proposed bills before they become principal acts and laws. This affects the way we do business. My district provides water and wastewater to our constituents. The public trusts us completely through transparency which CSDA guides us in continuously.

Pleasant Valley Recreation and Park District 1. By serving on the CSDA Board, I am a voice for the special districts in our area. It is a way to give back to the local districts. The ability to network with other directors statewide is invaluable. 2. CSDA is a leader in providing quality training for our districts. CSDA provides guidance in the areas of governance in the ever-changing landscape of the regulations and standards set forth by the State of California. CSDA’s advocacy role is unsurpassed, and the staff is highly respected by people in the capitol and by other state associations.

VINCENT C. FERRANTE

Moss Landing Harbor District 1. The importance for me to be a director on the CSDA Board is not only to represent the special districts in the Coastal Network but all the other district networks throughout California to better serve our special districts. 2. Having the opportunity to serve as the 2017 CSDA President, I have a passion to “spread the word” how CSDA can help better serve your district. CSDA offers a number of benefits to better serve your district, plus CSDA now has six public affairs field coordinators, one for each network to better serve you.

MAXIMIZE Y OUR M E M BE RSHI P

VISIT CSDA’S SAMPLE DOCUMENT LIBRARY WWW.CSDA.NET - LIBRARY INCLUDES STRATEGIC PLAN EXAMPLES Volume 15 • Issue 3

COMMUNITY CONNECTIONS

Figure 1: One wind turbine can produce up to 300 kilowatts a day.

Clean Energy FUTURE BUILDING A

By Haig Kartounian Public Affairs Manager Southern California Edison (SCE)

California Special Districts â&#x20AC;¢ May-June 2020

The wind is blowing in the California desert, and the propeller-like blades of the Palm Springs wind turbines are beginning to turn. In doing so, they are bringing pollutionfree electricity to homes across Southern California through highways of copper and steel we call the electric grid. Each of these turbines can produce up to 300 kilowatts a day – the amount of electricity used by an average household in a month. The Palm Springs wind turbines are just one part of a larger transformation unfolding across California. Our state is quickly shifting away from energy sources that pollute the environment to more sustainable, renewable energy like wind and solar. SCE is a longtime leader in renewable energy and has been working aggressively to help all our customers take part in this clean energy future. Currently, more than 46 percent of the electricity that we deliver comes from carbon-free resources. We have been upgrading and expanding the electric grid to ensure our customers have access to the clean power generated by wind farms and solar plants in the desert and can install new technologies, such as rooftop solar, battery storage, and electric vehicle chargers. These efforts are important steps in meeting California’s ambitious 2045 environmental goals. SCE is committed to helping our customers power their homes, businesses, and vehicles with clean energy. Our Pathway 2045 examines what it will take to build a clean energy future for all of our customers and concludes that reaching California’s 2045 environmental goals will require a significant Volume 15 • Issue 3

Figure 2: The West of Devers Upgrade Project spans across San Bernardino and Riverside counties.

transformation of how the state sources and uses energy across all sectors of the economy. This transformation includes: • Decarbonizing electricity: 100% of retail sales from carbon-free electricity • Electrifying transportation: 75% of all vehicles will need to be electric • Electrifying buildings: 70% of all buildings will need to use efficient electric space and water heating

Economywide decarbonization will only be achieved by taking these actions and incorporating new, clean energy technologies into our daily lives. Achieving the steps laid out in Pathway 2045 remains the most feasible, cost-effective path to meeting our state’s environmental goals. Renewable electricity is now cheaper than fossil fuels like crude oil, and the continued on page 12

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COMMUNITY CONNECTIONS

increase of clean energy technologies continues to drive overall adoption costs down. While initially more expensive, renewable energy will become more affordable over time. Continuing to expand and adopt more renewable energy will also make California – and our country – more energy independent. Let’s not forget that the clean energy and investments made to the electric grid are also a tremendous economic development opportunity for the entire state – up to $250 billion of potential clean energy and grid investments, including thousands of craft and skilled jobs. Further, the reliability of the electric grid is a priority for SCE. To ensure that the adoption of more clean energy resources is seamless, we have been taking steps to make the electric grid more resilient. Infrastructure investments like the West of Devers Upgrade Project are critical to helping all our customers have access to the clean energy future our state is working to achieve.

The Devers Substation is a major transmission hub for renewable and conventional energy coming from the Blythe and Desert Center areas in eastern Riverside County. It has the important role of receiving high-voltage electricity from transmission lines and reducing the voltage to levels that can be carried over the distribution lines within our communities and into our customers’ homes. Additional upgrades are needed to ensure that clean energy is being delivered to our customers across the service territory, especially those living in urban areas. The transmission lines going west of Devers Substation towards the Los Angeles Basin do not have enough capacity due to the increase of renewable energy coming from the desert. The West of Devers Upgrade Project, located in Riverside and San Bernardino counties, will add the necessary capacity to deliver the renewable power being generated in the desert by upgrading existing transmission lines within an existing

transmission corridor. Once completed, this $840-million project will carry up to 4,800 megawatts – enough energy to supply over 3.5 million homes. The completion of this project – set for the end of 2021 – will be key to helping California reach its goals of obtaining 50 percent of its electricity from renewable sources by 2025, 60 percent by 2030, and 100 percent from carbon-free resources by 2045. It will also provide long-term reliability, address growing electrical needs, and continuity of service for our customers in Riverside and San Bernardino counties. The West of Devers Upgrade Project is one of many projects and initiatives that SCE is investing in to modernize the grid, harness the full potential of all clean energy resources, help California meet its climate change goals, and provide our customers with safe, reliable, affordable, and clean power. To learn more about other projects SCE is currently working on, please visit sce.com/about-us.

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California Special Districts • May-June 2020

Questions Appear in CSDA Communities

YOU ASK, WE ANSWER

Q&A

Volunteering for Agency Sponsored Projects

Volume 15 • Issue 3

Sandra Willingmyre, Accountant Solano County Water Agency Is it OK for an employee of an agency to volunteer to work on a project that is agency sponsored? For instance, if an agency pays a contractor to put on a volunteering event on a Saturday, can agency employees volunteer for the event? Do the employees need to be paid by the agency if they do volunteer?

Pete Kampa, CSDM, General Manager Groveland Community Services District This is a question for your legal counsel, as we just went through this and it is very fact specific. The best advice I can give is have them volunteer for another entity, such as a “friends of...” who is the entity responsible for the event. They can volunteer for your agency, but they will likely need to be paid, schedule adjusted, etc. Kimberly Ward, HR Manager/Executive Secretary Phelan Pinon Hills Community Services District Technically, a public agency employee can volunteer for an agency event provided that it is outside of normal working hours and they will be performing a task that is not related to their normal job functions. However, I would just pay the employees - it’s not worth the trouble a claim could cause. Jean Bracy, CSDM, Director of Administrative Services Mojave Desert Air Quality Management District Our district has a strong community presence. We permit our employees to “trade” work time to support these community projects. An employee may attend and work an agency sponsored or related activity and exchange those hours from the regular work week. This is done with supervisor approval subject to work demands and should be planned well enough in advance to organize the trade within the established pay period. This, of course, does not constitute “volunteering,” but it serves to support agency goals, support the community activity, and allow employees broader experiences of the agency’s mission within the community. Since these occur infrequently (an employee might get to participate four times in a year, although we do not have to impose a limit to participate) and no one is required to participate. CSDA Disclaimer: This section is not intended to be legal advice. Members should always seek legal counsel. The information contained here is for general reference purposes only.

MOVERS & SHAKERS

MOVERS& SHAKERS Eden Health District selected Mark Friedman as their new chief executive officer. He is the former CEO of the Thomas J. Long Foundation and First 5 Alameda County as well as a three-time Mayor of the City of El Cerrito. “We are excited to have Mark as the district’s new CEO. Mark brings a wealth of knowledge and experience in the fields of public health, government and community service, and philanthropic giving combined with a deep commitment to improving access to healthcare. The board will work closely with Mark to leverage its resources to address the COVID-19 pandemic,” stated Gordon Galvan, chair of the board of directors of the Eden Health District. “I am honored and humbled to serve as the new CEO of the Eden Health District during this unprecedented time,” commented Mark Friedman. “I look forward to working under the direction of the board of directors to partner with county and city agencies, healthcare providers, and non-profit organizations to rise to the challenge COVID-19 poses to the health and welfare of the residents of the Eden Area.” Gordon Galvan, chair of the board of directors of the Eden Health District, announced that by a unanimous vote the board appointed Pam Russo as a director. The directors acted to fill a vacancy on the five-member board due to the resignation of Megan Lynch, who resigned her position in advance of attending medical school. “At an unprecedented time in public health, the board is grateful that Pam Russo stepped forward to serve as a director. She brings a wealth of experience in the field of health care and deep knowledge of the health needs of our community,” stated Galvan. “At the same time, the board greatly appreciates the exemplary service Megan Lynch provided for the past four years. We wish her outstanding success as she embarks on the next stage of her career in health care by studying to become a physician.” A Registered Nurse with a 35-year history in healthcare, Russo worked at St. Rose Hospital, including in all clinical areas of the Hayward facility. During her last 15 years as an administrator at St. Rose, Russo oversaw the fundraising arm of the hospital, government affairs, marketing and project management work. Russo currently serves as the Executive Director of Hayward Area Recreation & Park District (H.A.R.D.) Foundation. 14

Modesto Irrigation District’s (MID) General Manager Scott Furgerson announced his retirement after serving as the MID’s general manager for more than two years. “MID is a top-notch organization with a dedicated workforce that continues to impress me daily, especially in these extraordinary and challenging times,” said MID General Manager Scott Furgerson. “Therefore, it’s with mixed emotions that I announce my retirement. The world’s current events have definitely made me reflect on my priorities and following more than 40 years in the utilities’ industry, I’m going to devote more time to my family.” Furgerson was hired as MID’s General Manager in November 2017 following a 36-year career with Southern California Gas Company and San Diego Gas & Electric. At MID, he has led day-to-day operations and guided more than 400 employees. “We appreciate Scott’s leadership, service to MID and mentorship of our employees. He has empowered a stellar leadership team that will continue to ensure MID provides superior service to our customers and communities,” said MID Board President Paul Campbell. For the 14th consecutive year, the Inland Empire Utilities Agency (IEUA/Agency) has been awarded the Distinguished Budget Presentation Award from Government Finance Officers Association (GFOA) for its Biennial Budget encompassing Fiscal Years 2019/2020 and 2020/2021. The award is the highest form of recognition in governmental budgeting and signifies IEUA’s commitment to fulfilling nationally recognized guidelines for effective budgeting. To receive the award, budget documents must be rated “proficient” in all four categories and in 14 mandatory criteria within those categories. “This award represents the agency’s dedication to fiscal responsibility and transparency,” said IEUA Board President Kati Parker. “IEUA is proud to accept this award for the 14th year and recognizes the hard-working and dedicated staff in the Finance and Accounting Department who consistently perform at the highest level.” California Special Districts • May-June 2020

Your Community. Your Services. Your District! This campaign is centered on the concept that special districts go beyond providing important services to their communities. They make a difference in the lives of their residents and help our state thrive. The goal is to bridge the gap between special districts and the essential services that millions of Californians value. The first step is to visit DistrictsMaketheDifference.org. The website features a simple-to-use toolkit filled with public awareness videos, web banners, posters, factsheets, and other materials that can be easily downloaded.

Follow, like, subscribe, share!

Volume 15 â&#x20AC;˘ Issue 3

MAKE THE

DistrictsMaketheDifference.org DistrictsMaketheDifference.org

ASK THE EXPERTS

Critical Communication During a Crisis Event By Linda Hunter, Principal, Circle Point

Communication during a crisis event can alter the way we do business. During a crisis, people have limited attention spans and are overwhelmed with the abundance of dire news. They filter through information quickly, trying to key in on answers to their concerns. There can be a dangerous epidemic of false and inaccurate information, especially in the digital realm. To combat concern, fear, and misinformation, agencies and organizations must adapt quickly to everchanging situations. It is imperative to project a unified, clear message, with all staff on the same page. To meet critical communication needs, the following are some best practices to follow for a crisis event: • Have a crisis communications protocol set up ahead of time. Make sure all staff are familiar with the protocol and know where it is located. i. Create a communications toolkit in advance, including a boilerplate press release and other information that can easily be tailored and updated 16

ii. Identify possible crisis situations and develop boilerplate messaging that can be tailored to an event iii. Assign tasks and duties as part of the protocol, and activate those once a crisis event occurs iv. Set up talking points and have all staff stick to them • Establish regular checks in, daily briefings, and weekly recaps during the crisis event to keep information flowing internally • Check in with elected officials early and as needed to ensure they have the correct California Special Districts • May-June 2020

message points to give their constituents • Assign staff to regularly monitor social media and dispel misinformation in a timely manner • Stay honest and transparent and be open and flexible to changing needs; have compassion with the public and with each other • Express empathy in all messaging

At Circlepoint, we use these tools and best practices with our clients to assist with COVID-19 communications. We help our clients build out social media engagement strategies and messaging that provides consistent information, engaging and clear graphics, and a high degree of flexibility in responding to concerns arising in the ever-changing online conversation. Circlepoint engages in daily communications with the public for large infrastructure projects to ease fears and ensure The COVID-19 pandemic epitomizes the need for good crisis those affected by the project know what will happen even as communications protocol. The information and guidance for the news changes on recommendations for COVID-19. We also the public during this crisis changes daily, sometimes hourly, coordinate talking points for the media and elected officials and agencies need to work quickly and effectively to stay on top on the kinds of behaviors to encourage, and discourage, to of these changes. The public is eager for information and needs keep the public safe and in-the-know while public services are proactive communications from agencies. Lack of official agency changed or augmented. information creates opportunity for people seek out sources that The COVID-19 pandemic can provide an opportunity may not be legitimate and start spreading their own information for CSDA Summer 2020 - 1/4 pg. Ad agencies and organizations to become even more active in the community. members of their community. Audiences can be involved in new Partnering with the media can be a great way to provide ways, including extensive social media and online engagement regular updates to a wider audience. Agencies can also use this with those who may have never been engaged before. Long after more proactive communication as a way to emphasize what the current crisis subsides, these strategies can create stronger they are doing in the community and the vital role they play, community connections, in authentic, holistic ways that serve both raising awareness and providing reassurances. the needs of both the agency and the public.

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FEATURE

Think Inside the Box: How Heroes Transform the Ordinary

Kevin Brown, Motivational Speaker and Author

Think Inside the Box: HOW HEROES TRANSFORM THE ORDINARY

In my neighborhood, the kids lived for the day when someone bought a washer, dryer, or refrigerator so we could play with and decorate the box that the appliance came in. Limited only by the boundaries of our imagination, that box represented anything we wanted it to be: a race car, an army fort, a spaceship. We would decorate the box. Our imagination would transport us from where we were to someplace better. Someplace new. 18

California Special Districts â&#x20AC;˘ May-June 2020

Then, we grew up. We begin pruning that kid out of our life, stunting our creativity, and leaving ourselves inside the box that we live and do business in. The older we got, the more confined, conformed, and defined we became by the box we were living in. The box is nothing more than the rules of the game. It’s the policies, procedures, systems, and people that make up our world. Every arena of endeavor has its rules: a box where the players reside and the game is played. For some, it’s a field or a court. For others, an office or a cube. For some, it’s their home or the open road. Regardless of the box, heroes show up every day, limited only by their imagination. They decorate their box. They paint with broad strokes

of talent and ability to create a masterpiece on the canvas of their life. They play the same game as everyone else, but when they show up to do what they do, it looks special. It looks different than the game everyone else is playing, even though they are subject to the same rules as everyone else. Heroes don’t conform to the box, instead they transform the box. They bend, shape, twist, and color the box in a way that makes it into something new. The box becomes a canvas upon which to paint their next masterpiece. Heroes live by the rules but maintain their imagination and creativity to transform their ordinary, mundane box into a brilliant, fun, productive use of the box that they have been given.

What box are you living in that is restricting your creativity and growth? Maybe it is time for you to take the box that you are living in and transform it! This article includes excerpts from Kevin’s newest book The Hero Effect®: Being Your Best When it Matters the Most. The Hero Effect® is a personal revelation that also holds profound implications for business. It’s an insightful narrative that challenges conventional thinking and reveals a brand-new paradigm in the world of everyday heroes. For more information on Kevin Brown, please visit: KevinBrownSpeaks.com.

We know that California Special Districts are facing unprecedented challenges during and following the coronavirus pandemic. The BB&K team, including Federal Grant Funding, Economic Development, Public Law, Labor & Employment and Employee Benefits attorneys, is prepared to partner with you in your response and recovery. www.BBKlaw.com Offices throughout California and Washington, D.C.

Volume 15 • Issue 3

LEGAL BRIEF

Utilizing Retirees in COVID-19 Response & Recovery Working After Retirement Rules Temporarily Altered as Retirees Answer the Coronavirus Response Call By Isabel Safie, Partner, Best Best & Krieger LLP

Whether it’s law enforcement officers and firefighters returning to duty, nurses, doctors and technicians working at university hospitals or managers, clerks and administrators in cities, counties and special districts — public agencies are relying on the institutional knowledge of retirees during the pandemic.

annuitants with all CalPERS employers in a Circular Letter issued soon after. Newsom clarified the order days later and expanded it to include retirees returning to all levels of government. These exceptions became effective on March 4 when California’s state of emergency was declared and remains in place until it is lifted. The orders effectively suspend the 960-hour work limitation per fiscal year traditionally placed on public retirees who return to the workforce. The 180-day break in service requirement for recent retirees was also suspended, as was the 60-day separation from service condition for early retirees. However, consistent with federal law, any predetermined agreement between an employer and employee — who will reach the normal retirement age at the time of retirement — to return to work after retirement remains prohibited. These exceptions only apply to public retirees who are part of the COVD-19 effort. For retirees not responding to the crisis, these exceptions do not apply and failure to comply with the working after retirement rules could lead to penalties for agencies and retirees, who bear the brunt of any violations.

Certain Restrictions Suspended Gov. Gavin Newsom strengthened the ability of California’s public workforce to answer community needs in mid-March by suspending certain working-after-retirement rules for retired public workers who join coronavirus response efforts. With Executive Order N-25-20, Newsom issued COVID-19 exceptions for public retirees returning to “ensure adequate state staffing” during the current state of emergency. The California Public Employees’ Retirement System interpreted the order to apply to CalPERS retirees employed as retired

Some Rules Remain in Place Public agencies must inform the Director of the California Department of Human Resources of any individual employed under these waivers. Additionally, CalPERS employers must continue to enroll CalPERS retirees and report their hours and pay to CalPERS, which continues to monitor agency and retiree compliance.

Retirees across the nation are rushing to support the frontlines of essential community services by lending their expertise to respond to the novel coronavirus disease, COVID-19.

California Special Districts • May-June 2020

There are rules for all public agencies under the California Public Employees’ Pension Reform Act (PEPRA) and those specific to CalPERS and county system agencies that remain in effect, even for retirees responding to the COVID-19 emergency. For both CalPERS and non-CalPERS agencies, the rules pertaining to a retiree’s rate of pay and unemployment certification are unchanged. Under the rule, retired workers cannot be paid more or less than the monthly amount paid to other employees performing comparable duties, divided by 173.33 to equal an hourly rate. For CalPERS retirees, the rate of pay must be consistent with the rate listed on the agency’s publicly available pay schedule for a comparable position. It must also be certified in writing that a retiree has not received unemployment insurance compensation

within the last 12 months. There may also be rules unique to each retirement system and agency that need to be considered. Those system-specific rules, if more stringent, are applicable here. Regarding benefits, CalPERS retirees responding to the emergency may not receive any other compensation or benefits unless required by federal law, such as emergency sick leave or expanded Family and Medical Leave Act under the Families First Coronavirus Response Act. Reimbursements for required equipment are not considered benefits, and agencies must still pay federally required payroll taxes, including Medicare. Rules also remaining for CalPERS agencies and retirees are those regarding interim appointments to vacant positions and extra-help appointments. In regard to interim appointments to vacant positions (i.e., director level or higher), agencies must still obtain

approval from the governing body before a retiree begins work. Further, active recruitment for a permanent appointment to the position must be in place at or before the time the retiree begins and must continue during the term of the appointment. Agencies may not suspend recruitment efforts and must consider other candidates who could start during the emergency. In addition, interim appointments to vacant positions are subject to the single appointment requirement. This means agencies cannot reappoint a person to a position upon completion of their initial term, even if the agency has not filled the position. While these appointments require an end date to be specified, CalPERS will accept a term end date that is tied to the commencement of the permanent appointment. continued on page 22

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bannerbank.com Volume 15 • Issue 3

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Member FDIC 21

Extra-help appointments, which can be made by an authorized person and require no governing body action, are also limited in duration and should only be extended beyond two consecutive 1-year terms in special cases. Retirees are Responsible CalPERS takes a hardline stance when it comes to unlawful employment of CalPERS retirees and — even during the state of emergency — is enforcing these measures. While the consequences for employers remain fairly minimal, they are high for retirees as CalPERS takes the position that compliance to working after retirement rules is the responsibility of retirees. For CalPERS retirees, any violation of the working after retirement rules will result in mandatory reinstatement. If

reinstated, a retiree’s retirement allowance will stop, and they’ll be required to reimburse CalPERS the allowance received during the violation period. They could also lose other benefits, such as health and COLA accruals. For non-CalPERS retirees, the consequences of violating the working after retirements rules are laid out in local rules of the applicable retirement system. Staying in Compliance How can public agencies stay compliant while protecting the agency and its retirees? When making an appointment, identify the emergency and skills needed and the Government Code section on which the appointment is based. Also, when in doubt, proceed as if the retiree returning to work is an employee rather than an independent contractor.

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Put everything in writing: describe the hourly compensation being paid, including specific comparison to other positions, and state that no benefits are being provided in addition to the hourly rate. Also, certify that a retiree is not receiving unemployment benefits. For retirees not covered by the COVID-19 exceptions, check timing rules and spell out the 960-hour cap as a “hard limit” that retirees are responsible for monitoring. Most importantly, develop protocols to ensure retirees are not exceeding the 960-hour limit because even exceeding the limit by a modest amount will trigger the consequences of unlawful employment. Isabel Safie is a partner at Best Best & Krieger LLP where she advises clients on employee benefit programs, retirement programs, and welfare benefit plans.

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California Special Districts • May-June 2020

DISTRICTS MAKE THE DIFFERENCE

Fire Protection District Initiates Nation’s First Pandemic Medical Response Unit Fire Engineer/Paramedic Travis Hooper has been with the Menlo Park Fire Protection District for almost seven years, prior to that he spent four years in the United States Airforce where he was deployed twice oversees for Operations Iraqi Freedom and Enduring Freedom. Originally from Virginia, public service runs deep in his family. When he heard the Fire District was re-purposing and moving a twoperson Rescue Company to help elevate the level of emergency services to address COVID-19 medical incidents, while at the same time creatively attempting to reduce exposures to his fellow firefighters, he volunteered for the assignment. The Menlo Park Fire Protection District, which provides critical fire and emergency services to Atherton, East Palo Alto, Menlo Park, and unincorporated San Mateo County, is trying to navigate, prepare and prevent, an unexpected draw down on its most precious resource, its firefighters. Having a singular emergency response unit dedicated

to COVID 19 is an out-of-the box creative strategy supported by its workforce of almost 100 Firefighters. The new Pandemic Medical Response Unit went into service just as health officials began announcing stay at home orders. Fire Chief Harold Schapelhouman said, “We

Fire Engineer/Paramedic Travis Hooper volunteered to staff the District’s new Pandemic Medical Response Unit (Credit Menlo Fire)

Volume 15 • Issue 3

are evolving and advancing firefighter safety and functionality on the fly, learning from each medical incident we respond too and constantly improving.” Chief Schapelhouman continued, “We are not fixtures of a clinic or hospital setting, the fire service is a field fighting force and we need to adapt and adopt a battlefield posture, strategy, and adjust our tactics accordingly or be prepared to expose and potentially disable our work force, which I find unacceptable and irresponsible.” Fire Engineer/Paramedic Hooper wasn’t the only Menlo Park Firefighter to volunteer for this new assignment, but his request was the most compelling. Hooper wrote, “Chiefs, I would like to volunteer to be placed as the permanent, A-shift, Acting Captain on Rescue 6; or until further notified. After the conference call today, I understand the importance of limiting the exposure to as many Fire District employees as possible. Furthermore, I understand the level of severity of my volunteering action. With that said I have no doubt that I will uphold the fire district’s requests, demands, and recommendations to the highest level”. Recognizing the bravery and initiative of his district’s firefighters, Chief Schapelhouman said, “In our profession, you need to quickly adapt, improvise and overcome on the fly and often under dynamic circumstances; you also need to fully support those who are on the front lines of this battle by listening to their ideas, supporting innovative counter measures and letting them know you care about them, their families, and the overall cause.” 23

CSDA 2019 AWARD FOR INNOVATIVE PROJECT OF THE YEAR – LARGE DISTRICT

Success in the Sierra: INNOVATIVE PARTNERSHIP BEGINS RESTORING FOREST HEALTH By Ross Branch, Public Affairs Manager, Placer County Water Agency

n December 2019, after six months of strategic forest treatments near French Meadows Reservoir, partners of the French Meadows Forest Restoration Project (Project) wrapped up their first season of implementation work with a great sense of accomplishment. Located in the headwaters of the Middle Fork American River, in the Tahoe National Forest, the Project is one of the first instances of private and public interests coming together to fund and implement active forest management on public land. While completion of the Project is slated to take several more years, conclusion on this first season of work is the culmination of years of planning, preparation, and partnership. 24

The catalyst of the Project was the 2014 King Fire, which burned over 97,000 acres in the American River watershed, much of it at high intensity. Eager to reduce the risk to hydroelectric assets, water quality, and biodiversity from future fires, Placer County Water Agency (PCWA) joined with Placer County, The Nature Conservancy (TNC), the United States Forest Service (USFS), American River Conservancy (ARC), Sierra Nevada Conservancy (SNC), and the Sierra Nevada Research Institute at the University of California, Merced, to form the French Meadows Partnership. The Partnership is working to restore forest health to reduce the risk of highseverity fire, and to study the effects of forest treatments on watershed health. The Project spans over 22,000 acres of federal land and is a test case for the partnership’s effectiveness in improving fire resilience. Under a master stewardship agreement between Placer County and the Tahoe National Forest, over 1000 acres of federal land was treated, bringing more than 3 million board feet to a local mill and over 4000 tons of biomass to local renewable energy facilities to help offset restoration costs. The work employed over 80 local contractors. Strategically selected to start in the most fire prone areas, work will move its way out from heavily trafficked areas into the upper reaches of the watershed in succeeding years. On the adjacent private land, the ARC funded its own treatment of 445 acres, as a collaborative aspect of the all-lands approach.

California Special Districts • May-June 2020

SOLUTIONS AND INNOVATIONS

“I want to express my gratitude to work on such a monumental project,” said Amanda Godon of Volcano Creek Logging, one of the Project’s contractors. “This project is the leader and forerunner, I believe, in the way we do business. It’s a win for the entities involved, a win for the community, and a win for the forest.”

Volume 15 • Issue 3

The success of the Project is based on a number of factors. First, is the unique public-private partnership, which required partners to work beyond traditional organizational boundaries and cultures to accomplish a common goal. As Tahoe National Forest Supervisor Eli Ilano noted when approving the Project, “The only way to

accomplish this monumental task is through collaborative stewardship.” The second factor is innovative funding, also a first of its kind. With a total estimated price tag of $17 million, funding has come from local, state, and federal entities, including PCWA, Placer County, CAL FIRE, SNC, the USFS, and the National Fish and Wildlife Foundation, and private entities such as MillerCoors, Dr. Pepper Snapple Group, and TNC. The final factor leading to the Project’s success is the implementation of ecological forest management. The goal of ecological management is to promote healthier, more resilient forest conditions utilizing a variety of treatments to remove unnecessary fuels, restore wildlife habitat, and reduce the risk of high-severity wildfire. Once the desired conditions are achieved, the Project is designed to maintain a healthy forest through planned maintenance treatments including prescribed fire. Last summer, the USFS and TNC, the two entities managing the prescribed fire component, prepared 600 acres of forest for prescribed burning by clearing six miles of control line. The prescribed burning will progress next field season when weather conditions are favorable. Through the tangible work of the French Meadows Forest Restoration Project, partners hope to not only moderate future wildfire behavior, but also create a new model for advancing forest and watershed restoration. In fact, since the Project’s inception, stakeholders are replicating this approach in other Sierra watersheds including the North Yuba River watershed. As the threat of intense wildfires grow each year in California, the French Meadows Forest Restoration Project demonstrates that important forest restoration work is possible through innovation, partnership, and shared stewardship. 25

MANAGERS CORNER

By Michael Grabow, Master Trainer and Coach, CPS HR Consulting

Managing People and Projects During a Time of Separation Today, the rate of change can be mind-blowing. You may remember when strategic plans were built for 10 to 20 years. Now most planning efforts are developed for 1 to 3 years. Some believe we will get to the place of planning 90 to 180 days for setting our organizational course of actions. Those actions become projects. In the past, projects were things only “project management professionals (PMPs)” managed and completed. Today, we all must step into the place of managing “new stuff” aka projects. We all have worked on “new stuff” before. We did it then and we can do it now. We have a unique opportunity now during the current global health situation to manage people and projects with the added challenge of doing so remotely. We are learning new skills to develop, grow, and complete our projects at a distance. We need project managers to show up as leaders more than ever before to keep projects on track and employees engaged in this environment. That means listening, learning, and leading with care. Projects are amazing incubators to grow and develop your leadership talents and organizational bench strength. 26

We must warm up to the idea that failure can be a good teacher. The question is, did you learn from the failure or do you keep repeating it? Project managers must establish and create a work culture for team members that encourages 100% open conversations. By exploring together in the art of conversation, we can find healthy new approaches to completing and prioritizing project activities we have never completed. When communicating, remember some people want more details and others only want an overarching goal. Do you know who on your team desires what level of communication and what motivates them to be productive? Now is the time for one-on-one conversations, with your camera turned on, to discuss agreed-upon expectations. Our ability to listen is key. Project managers need to check in and ensure their team members are doing okay. I suggest committing to listening at a new level by becoming a focused listener. A focused listener is one that clears the mind and chooses to be fully present for the conversation. Being singularly focused provides benefit for both parties. The project manager benefits by hearing the heart of the California Special Districts • May-June 2020

conversation and picking up on cues about the project and teammates. Employees benefit by feeling valued, engaged, and empowered. It is not easy to stay completely focused but, it is valuable. You know when you have been in a conversation where others have been distracted. You can hear it in their response. You discover it when you ask a question and the answer is not in alignment with your questioning. It is disappointing and devaluing when you realize your supervisor or project manager is not present in the conversation. Great project managers practice valuing teammates by choosing to be a focused listener. Project managers must be learners. Learning are curious, open to changes, flexible, and agile. Project managers must establish an agile mindset. Today’s project scope, budget and timeline can change at any moment. An agile mindset accepts that fact in line with the fact that change is the only constant in life. Too many people approach daily life and work with a “copy and paste” mentality. They copy yesterday and paste it onto today and tomorrow. We can no longer expect things to remain the same. If you approach life from copying and pasting each day, then you are missing out on life itself. You miss out on being in the present. Yes, today is different and so will be tomorrow. To be adaptable to what today and tomorrow can bring, you must choose an agile mindset grounded in curiosity and learning. Development opportunities are all around you. What will you create for your next moment? Make it powerful with a new open perspective. Finally, project managers must lead with care. You must care about the tasks being accomplished. Care for your people and learn how they want to be led. Care about the environment or culture you create for your team. Since we have all been involved in physical distancing and quarantining, we must realize that most of our Volume 15 • Issue 3

teammates have different working environments at home (kitchen table, separate office, bedroom, or the living room). That environment may be somewhat uncomfortable. How do you demonstrate care for your staff wherever they are working and from a distance? Some people are scared. Some people are struggling with bills, relationships, and separation. We must invest the time NOW to show we care. Reach out to each of your teammates. Ensure they have all the tools needed to accomplish their taskings. Do we need to set up food baskets, virtual get togethers, or even make store runs for them? Can we leverage the team’s talent for helping those in need? Do you care about your team members as human beings? Or do you see them as just cogs in a process of work? If you don’t demonstrate care now (during these times), when will you? Now is an opportunity to show up as a caring leader. You want people to care about the work they are performing – show your people how much you care for them. These moments, we need project managers to be listeners, learners, and leaders that care deeply for others. Leaders influence. Leaders guide and

support. You are being challenged to practice common leadership skills in completely new ways. Managing a project may be easier to complete if you are all by yourself, however, the rewards and results are greater as you learn to lead others to accomplish the project at hand even if we are working in different places. Now more than ever, you get to create new stuff in a new way, in a new virtual work environment. Invest the time, connect in new and professional ways, and create deeper business relationships by showing you care. Life is good. Even now. Let us choose to show up and make a difference for our teammates and communities. Be safe and stay healthy. Michael Grabow is a Master Trainer and Coach at CPS HR Consulting. CPS HR Consulting is a self-supporting public agency providing a full range of integrated HR solutions to government and nonprofit clients across the country. CPS HR offers deep expertise and unmatched perspective in organizational strategy, recruitment and selection, classification and compensation, and training and development. Learn more at cpshr.us.

Providing Special Districts with Focused Legal Strategies We counsel clients throughout California in sectors including Water, Public Finance, Public Agency, Environment, Infrastructure, Employment, Data Protection, Government Relations and Eminent Domain. What solutions are you seeking?

TAKE ACTION

SPECIAL DISTRICTS CONFRONT COVID-19 PANDEMIC

The federal government took multiple emergency actions in March responding to the COVID-19 pandemic. Unfortunately, the first three newly enacted federal laws provided limited opportunity for special districts to benefit. Therefore, CSDA is continuing federal advocacy efforts and has called upon all special districts to participate in requesting support in the anticipated additional federal relief efforts.

Special districts across the nation – including here in California – are facing a perfect storm of economic distress even as the need to provide vital community services continues. Nationwide, special districts provide critical services such as water, sanitation, fire protection, health, park and recreation, and numerous other services that define a community’s quality of life, yet plummeting revenues due to COVID-19 will impact our ability to be prepared for the next inevitable disaster. As of early April, about a quarter of California’s special districts reported the need to cut service levels in the next six months due to COVID-19 fiscal impacts. Many are districts serving disadvantaged communities. Three out of four special districts may need to either furlough or let go employees, worsening the blow to the communities they serve. Special districts will meet the challenge, but we need partnership and support from the federal government. We ask for equitable inclusion of special districts, their frontline employees, and the communities they serve in the same type of relief measures already funded by Congress: 1. Include direct Coronavirus Relief Fund disbursements for special districts and all other local governments serving fewer than 500,000, established under the CARES Act. Pass HR 6467, the Coronavirus Communities Relief Act and ensure special districts are defined as a local unit of government under this law to ensure this direct relief is received by the communities they serve. 2. Include special districts and other local agencies in

TAKE ACTION SEASONS OF ADVOCACY: SPRING • Ensure your district has adopted a policy governing the process for adopting positions on legislation (download a sample policy at csda.net/take-action). • Participate in CSDA Calls to Action and submit letters in support or opposition to significant bills affecting special districts. • Watch for opportunities to share positive stories in the news and on social media.

California Special Districts • May-June 2020

the COVID-19 payroll tax credit already given to corporations for providing emergency paid sick and family leave. Doing so would alleviate the unfunded mandate placed on state and local agencies under the Coronavirus Families First Act. Thank Congressman Cox for leading bipartisan efforts to meet this need. 3. Include special districts and other local agencies with access to bridge and other no-interest or lowinterest loans being made available to small businesses. 4. Include special districts at the table in discussions seeking solutions for local government agencies confronting this pandemic and the local infrastructure and economic development efforts that will follow.

Volume 15 • Issue 3

Two-Year Email Retention Legislation Pulled by Author

Assembly Member Todd Gloria’s office has notified CSDA that Assembly Bill 2093, related to email retention, will not be moving forward in 2020. AB 2093 would have required all public agencies to maintain for two years all emails sent and received related to the public’s business. Unfortunately, this costly mandate would not have resulted in the increased transparency Assembly Member Gloria was seeking to create. CSDA appreciates and congratulates all the special districts that wrote letters expressing opposition to AB 2093—your voices were heard. Assembly Member Gloria acknowledges the struggles that all Californians are facing, including public agencies, and did not feel that this is the appropriate time to pursue this legislation. While the issue of government transparency remains an issue of concern to Assembly Member Gloria, CSDA is grateful that he has chosen not to move forward with AB 2093 in 2020 so he can focus on relief efforts to COVID-19. Please join CSDA in thanking Assembly Member Gloria for his thoughtfulness and his efforts on helping all Californians in managing the impacts of COVID-19 on special districts and the communities we serve.

MANAGING RISK

FMLA/CFRA LEAVE: UNDERSTANDING THE LEAVE PROCESS DURING COVID 19 OUTBREAK By Dennis Timoney, ARM, Chief Risk Officer, Special Districts Risk Management Authority (SDRMA)

We have received several inquiries about employer duties during the COVID 19 Outbreak. This article cites both current federal and state law as well as the recently passed Emergency FMLA (EFMLA) Leave. State and federal leave laws, such as the federal Family and Medical Leave Act (FMLA) and the California Family Rights Act (CFRA) - applicable to employers with 50 or more employees - contain overlapping and sometimes conflicting employee rights and employer obligations regarding family leave. 30

The FMLA and CFRA both require covered employers to provide time off for personal illness, to attend to the illness of a family member and in connection with the birth or adoption of a child. Though this sounds simple, FMLA and CFRA issues are among the most litigated of all employment law cases and can result in large liabilities. Federal and California family and medical leave laws provide eligible employees with up to 12 weeks of time off per year for: • Caring for a qualified family member with a serious health condition; • The employees own serious health condition.

Covered Employers under FMLA and CFRA FMLA and CFRA laws cover private employers with 50 or more employees on the payroll during each of any 20 or more calendar weeks in the current calendar year or the preceding calendar year, and all public employers regardless of the number of employees. This includes employees on the payroll who received no compensation, part-time employees, commissioned employees and employees on leave who are expected to return to active employment. Employees on layoff do not count.

Employee Eligibility for FMLA/CFRA Leave There are specific criteria for an employee to be eligible for CFRA and/or FMLA. An employee must have worked for a covered employer for at least 12 months and must have worked for 1,250 hours in the 12 months before the start of the leave. The employee must also work at a worksite where 50 or more employees are employed by the employer within 75 miles of that worksite.

Medical Certification You may require medical certification for an employee taking family/medical leave for his/her own serious illness or to care for a family member, but not for babybonding time. Keep in mind that medical privacy laws limit the type of information you may require on such certification. • Common Mistake - Not understanding the difference between a “serious health condition” and a “common ailment.” • Serious Health Condition - A “serious health condition” is an illness, injury, impairment, or physical or mental condition that involves at least one of several criteria specifically defined in the family leave regulations. California Special Districts • May-June 2020

EMERGENCY FMLA (EFMLA) LEAVE

• Applies to employers with fewer than 500 employees; • Only covers absences due to COVID-19 school and child-care closures; • First 10 days of leave are unpaid (but employees can use other paid leave); • Remainder of 12-week leave period is paid at two-thirds of employee’s normal rate times normal workweek; • Cap limits required EFMLA pay to $200 per day and $10,000 total; • Limited carve-outs for health-care providers, emergency responders, and employers with fewer than 25 employees, to be clarified by regulations.

Which Employers Are Covered? HR 6201’s EFMLA provisions apply to all employers with fewer than 500 employees, as do the emergency sick-leave requirements discussed in the next section. The Department of Labor has authority to issue regulations exempting businesses with fewer than 50 employees when requiring EFMLA and/ or emergency sick leave “would jeopardize the viability of the business as a going concern.”

Which Employees Are Covered? In contrast to FMLA’s 12-month waiting period, employees are eligible to take EFMLA leave once the employee has been employed for at least 30 calendar days. Employers may exempt health-care providers and emergency responders from eligibility for EFMLA leave. The scope of this exemption is unclear but will be clarified by regulations from the Department of Labor.

What Purposes Allow Taking EFMLA Leave? EFMLA leave under HR 6201 is for a single purpose—inability to work (in person or remotely) because of the need to care for a child under the age of 18 due to a school or child-care facility closure caused by an emergency declared by federal, state, or local authorities related to COVID-19. It does not cover other COVID-19 related absences—although ordinary FMLA and the paid sick-leave provisions of HR 6201 may cover such absences.

What Does EFMLA Leave Require? EFMLA leave under HR 6201 is a 12-week period of job-protected leave. The first 10 days of leave are unpaid, although an employee may choose to use any available paid leave (vacation, PTO, sick leave, emergency paid sick leave, or personal leave) during the first 10 days. Employers may not require employees to take paid leave to cover the first 10 days of EFMLA.

Emergency Paid Sick Leave Act Like the EFMLA, the Emergency Paid Sick Leave Act (EPSLA) applies to employers with fewer than 500 employees and allows additional paid leave for employees who cannot work or telework for certain COVID-19-related reasons. Like the EFMLA, this Act became effective on April 1, 2020, and remains in effect until December 31, 2020. Unlike the EFMLA, paid sick leave is available to all employees even if they have not yet worked 30 days. This Act also does not have a 10-day waiting period. This information is not intended to be legal advice. Please contact your district counsel for further clarification.

SDRMA Board and Staff Officers

Staff

MIKE SCHEAFER, PRESIDENT Costa Mesa Sanitary District

LAURA S. GILL, ICMA-CM, ARM, ARM-P, CSDM, Chief Executive Officer C. PAUL FRYDENDAL, CPA, Chief Operating Officer DENNIS TIMONEY, ARM, Chief Risk Officer ELLEN DOUGHTY, ARM, Chief Member Services Officer DEBBIE YOKOTA, AIC, Claims Manager WENDY TUCKER, Member Services Manager ALANA LITTLE, Health Benefits Manager DANNY PENA, Senior Claims Examiner JENNIFER CHILTON, CPA, Acting Finance Manager ALEXANDRA SANTOS, Health Benefits Specialist II PHILLIP BOTTOMS, Member Services Specialist II HEIDI UTMAN, Accountant JACK BUCHANAN, Accounting Technician HEIDI SINGER, Claims Examiner II TERESA GUILLEN, Member Services Specialist I ASHLEY FLORES, Management Analyst/Board Clerk

SANDY SEIFERT-RAFFELSON, VICE PRESIDENT, Herlong Public Utility District ROBERT SWAN, SECRETARY, Groveland Community Services District

Members of the Board DAVID ARANDA, CSDM, Stallion Springs Community Services District JEAN BRACY, CSDM, Mojave Desert Air Quality Management District JESSE CLAYPOOL, Honey Lake Valley Resource Conservation District TIM UNRUH, CSDM, Kern County Cemetery District No. 1

Consultants DAVID BECKER, CPA, James Marta & Company, LLP LAUREN BRANT, Public Financial Management DEREK BURKHALTER, Bickmore Actuarial CHARICE HUNTLEY, River City Bank FRANK ONO, ifish Group, Inc. ANN SIPRELLE, Best Best & Krieger, LLP KARL SNEARER, Apex Insurance Agency DOUG WOZNIAK, Alliant Insurance Services, Inc.

Volume 15 • Issue 3

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

MONEY MATTERS

UNDERSTANDING PENSION COSTS 101

Finding Information in Your CalPERS Report By Deanna Van Valer, Assistant Vice President & Mary Beth Redding, Vice President, Bartel Associates

Ever wonder what’s going on in your CalPERS actuarial report? This article explains key terms and shows where to find useful information. CalPERS is a Defined Benefit plan, characterized by a formula that defines the employee retirement benefit, such as 2% multiplied by years of service multiplied by final average compensation. The employer is responsible for funding a DB promise. It doesn’t matter how well plan investments have done — the benefit is owed to the retiree no matter what. FUNDING DB PLANS Funds to pay benefits can come only from employee and employer contributions, plus investment earnings on assets. Averaging the past 20 years, here’s what this looks like for CalPERS:

UNDERSTANDING ACTUARIAL VALUATIONS An actuarial valuation’s purpose is to: • Project benefits that will be owed to all employees when they retire • Calculate how much should be contributed to the fund each year to pay those benefits. The valuation is a mathematical model of all current CalPERS employees and retirees: When will they retire? How long will they live? It projects the total stream of future pension payments, which is discounted back into today’s dollars to determine Present Value of Benefits. Actuaries use a funding method to build up enough assets to cover the benefits when due, since the PVB is too large to pay all at once when a person is hired. Ideally, benefits are funded during the working career, as deferred compensation, to maintain intergenerational equity — we don’t want our children paying for employees who retired before they were born! The funding method divides PVB into annual Normal Cost payments, one for each year of service the employee is projected to earn. Accumulated NC payments for past service are Actuarial Accrued Liability: the value of pension benefits earned to date.

California Special Districts • May-June 2020

If everything in the past met the actuary’s assumptions: • Plan assets would equal AAL • The plan would be 100% funded • Only NC payments would be needed in each future year. In reality, few CalPERS plans today are 100% funded, so the employer must pay both NC and an amortization payment toward the Unfunded AAL.

Insider tip: Don’t confuse this report with the annual GASB 68 report, which contains only information to meet accounting requirements for your agency’s financial statements.

YOUR CALPERS VALUATION REPORT Each year CalPERS actuaries perform a valuation of every employer plan to determine AAL, UAL, and NC as well as an amortization payment on the UAL. Employers must pay NC as a percentage of each payroll, plus a monthly UAL amortization payment. The actuarial valuation report is filled with additional details helpful for budgeting and planning, such as: • 5-year projections of employer contributions • How employer contributions would change under various investment return scenarios • PEPRA member contribution rate.

NAVIGATING THE ACTUARIAL REPORT These answers will help you find your way around the CalPERS report (page numbers refer to the most recent public agency actuarial valuations as of June 30, 2018): Q - What is our plan’s unfunded liability? A - AAL, plan assets, and Unfunded AAL are on page 5 under Plan’s Funded Status. Q - What employer contribution do we have to pay? A - Page 4 shows 2020/21 required contribution, both the NC rate and UAL dollar payment. continued on page 34

CSDAFC Board and Staff Officers JO MACKENZIE, PRESIDENT, Vista Irrigation District PAUL HUGHES, VICE PRESIDENT, CSDM, South Tahoe Public Utilities District MATTHEW MCCUE, SECRETARY, Mission Springs Water District

Members of the Board GEORGE EMERSON, Goleta Sanitary District VINCE FERRANTE, Moss Landing Harbor District GLENN LAZOF, Regional Government Services Authority ARLENE SCHAFER, Costa Mesa Sanitary District

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Staff NEIL MCCORMICK, Chief Executive Officer AMBER PHELEN, Executive Assistant RICK WOOD, Finance & Administrative Director

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Volume 15 • Issue 3

Q - Where is the PEPRA member contribution rate? A - For Risk Pool plans, it’s in the separate PEPRA tier report front cover letter and at the back. For Non-Pooled plans, see the front cover letter and Appendix D at the back. Q - Is there a projection of future employer rates? A -Yes — go to page 5; Projected Employer Contributions include actual required contribution for fiscal year 2020/21 and projected contributions for 2021/22-2025/26. Q -How does our agency’s funded status compare to other plans? A - This CalPERS graph illustrates average historic funded status for Miscellaneous and Safety public agency plans. Q - If we wanted to get out of CalPERS, what would be the cost?

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A - For estimates, see page 17 (Hypothetical Termination Liability) for Risk Pool plans and page 25 for Non-Pooled plans. To terminate the plan and leave CalPERS, your agency would be required to pay the full UAL up front. Deanna Van Valer is an Assistant Vice President and actuary at Bartel Associates, and Mary Beth Redding is a Vice President and actuary at Bartel Associates. They can be reached at dvanvaler@ bartel-associates.com and mbredding@bartel-associates.com.

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Insider tip: The PEPRA member rate can change from year to year, but only by one-half % of pay or more. Appendix D breaks out NC by tier, so you can tell if you’re close to a threshold for change and what the eventual PEPRA member rate might be.

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California Special Districts • May-June 2020

2019 BOARD SECRETARY/CLERK CONFERENCE SPEAKER

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Volume 15 • Issue 3

This article was first featured in a 2017 issue of California Special District.

WHAT'S SO SPECIAL

HEALING WITH HORSES, ONE STEP AT A TIME:

CONEJO RECREATION AND PARK DISTRICT For centuries, horses have provided children and adults with means of transportation and recreation. Recent therapy specialists have discovered an innovative approach to our interactions with these majestic animals and tapped into their ability to assist individuals with both physical and mental disabilities.

What is Ride On?

Conejo Recreation and Park District (CRPD) was able to recognize the benefits of equine therapy and partner with a local not-for-profit organization to bring those services to their community. California Special District asked CRPD to tell us more about Ride On and why this partnership is so important to the districtâ&#x20AC;&#x2122;s mission.

How did the partnership between your district and Ride On come about?

Ride On is a not-for-profit organization dedicated to enhancing the quality of life of children and adults with disabilities through a unique combination of equine related therapy, recreation, and fun.

In 1999, Conejo Recreation and Park District worked cooperatively with the Rancho Conejo Homeowners Association to California Special Districts â&#x20AC;˘ May-June 2020

CONEJO RECREATION & PARK DISTRICT DISTRICT SIZE: 64 mi2 POPULATION: 131,228

LOCATION: VENTURA COUNTY WEBSITE: CRPD.ORG

acquire what was a rundown private 13-acre common-ownership equestrian facility. Soon thereafter, CRPD entered into a 40-year agreement with Ride On Therapeutic Horsemanship to manage and maintain the facility.

What were some reasons you partnered with Ride On? The CRPD Board of Directors is always looking for programs to serve the needs of all our residents. It is a great source of pride for us. Ride On is also extremely well-run as a nonprofit. Its financials are transparent and its leadership steady and businesslike.

How does Ride On help children and adults with disabilities? Riding helps to improve the strength, balance, coordination, self-esteem and sense of freedom for anyone who rides a horse. Individuals with disabilities gain those same benefits and have those same dreams, they just need a safety net. Ride On is that safety net. Ride On also offers extensive scholarships so those in financial need can enjoy the benefits of these programs.

What are some of the programs that Ride On offers? Ride On offers several programs. Our Adaptive Riding program focuses on horsemanship skills – learning to ride a horse at the walk, trot and canter. Our therapy program is more medically oriented and focuses on improving specific medical conditions. Here, a licensed Physical, Occupational or Speech therapist

Volume 15 • Issue 3

BUDGET: $20,000,000

uses the movement of the horse to improve the function of our patients. A young child who can’t hold his head up can’t eat, swallow or speak properly but, sitting astride a horse, his body moves in response to the horse’s movement and this strengthens and develops muscles as the horse walks. Finally Ride On offers an equine facilitated psychotherapy program to Veterans – all at no cost to the client.

Why the horse? The well-trained therapy horse moves in a rhythmic, symmetrical and organized way. Each step the horse takes provides strong sensory and physical input in many dimensions including up and down; side to side; and back and forth. By asking for variations in these movements the therapist gains results that cannot be achieved by a machine or duplicated in a clinic setting. The very capable horses at Ride On have been carefully selected for their movement quality and even temperament and then are further trained. The horse accurately and tirelessly provides ample opportunities for the patients to experience movement and sensory input that will enhance their quality of life. The warmth, touch, sight and sound of the horse and the outdoor ranch environment allows our patients to reach their goals and have fun at the same time.

Are there other programs that your district offers for residents with disabilities? In addition to Conejo’s partnership with Ride On, our district has a Therapeutic Recreation (TR) Unit which provides year-round recreation, sport, and leisure programs for children, teens, and adults who have difficulty participating in recreation due to the presence of a disability. Participants of Therapeutic Recreation programs include individuals with cognitive, neurological, physical, or emotional disabilities, and/or sensory impairments. A formal disability diagnosis is not required for participation.

For more information about Conejo Recreation and Park District and their partnership with Ride On visit the Districts Make the Difference YouTube channel.

What is the impact of Ride On in the community? Since its beginning in 1994, Ride On has given over 100,000 safe, effective, and individualized lessons and therapy treatments and currently serves over 200 individuals each week.

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California Special Districts • May-June 2020

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Volume 15 • Issue 1

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