2022 CA Special District March - April by California Special Districts Association

C ALI FO R N I A

SPECIAL DISTRICTS Vo l um e 17, I s s u e 2 • M a r ch - Ap ril 2 0 2 2

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

Legal Brief • Page 30

Buying, Selling, and Leasing Property – What Special Districts Need to Know About Successful Transactions and the Surplus Land Act Interview • Page 22

Crack the Code on Trust: Insider Techniques for Leaders Pamela Barnum, Keynote Speaker at General Manager Leadership Summit CSDA’s 2022

GENERAL MANAGER LEA ERSHIP SUMMIT

Ask the Experts • Page 12 Trending: Using Social Media to Promote Transparency and Accountability

What’s So Special • Page 28 Pleasant Valley Recreation & Park District – Celebrating 60 Years of Community Service!

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California Special Districts • March-April 2022

SPECIAL DISTRICT LEADERSHIP FOUNDATION

// 2022 DISTRICT OF DISTINCTION CHALLENGE

IS YOUR DISTRICT READY TO LEVEL UP? In a time where proper fiscal management and responsibility in public agencies is paramount and the task of governing these agencies has become even more complex, regulated, and costly, it has become increasingly important to demonstrate to constituents that districts have sound fiscal management policies and practices in place among other areas of importance in district operations. Complete the District of Distinction application and take the challenge TODAY!

START THE CHALLENGE TODAY! Volume 17 • Issue 2

Complete the Districts of Distinction Level Up Commitment Form: www.sdlf.org/districts-of-distinction

TABLE OF CONTENTS

Managing Risk:

Cyber Crimes and How to Improve Your Chances of Not Being a Victim

What’s So Special: Feature:

Organizational Culture: The Great White Whale

Dave Mitchell, Keynote Speaker at General Manager Leadership Summit CSDA’s 2022

GENERAL MANAGER LEA ERSHIP SUMMIT

05 CEO’s Message 06 Professional Development 08 CSDA News 12 Ask the Experts: Trending: Using Social Media to Promote Transparency and Accountability 14 Movers and Shakers 17 You Ask, We Answer: Required Rate Consultants

Pleasant Valley Recreation & Park District – Celebrating 60 Years of Community Service!

22 Interview: Pamela Barnum - Crack the Code on Trust: Insider Techniques for Leaders 26 DMTD: What Happens When You Flush? Ask A Third Grader! 30 Legal Brief: Buying, Selling, and Leasing Property – What Special Districts Need to Know About Successful Transactions and the Surplus Land Act

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

32 Take Action: Opposition Growing Against Initiative to Limit Revenues for Government Services 33 Community Connections: AC Transit Wins 2021 Public Outreach Award: Nominations Open for 2022 CSDA Awards! 34 Manager Corner: Managing Crises in Today’s 24/7 Communications World 36 SDLF District Spotlight 42 Money Matters: New CalPERS Focus on Social Security Coverage for Public Agency Employees

For advertising inquiries, contact CSDA at 877.924.2732 or advertising@csda.net. California Special Districts • March-April 2022

CEO MESSAGE

The Power of Partnerships

Neil McCormick CSDA Chief Executive Officer

At CSDA we work hard at building partnerships that help to bring the best in advocacy, professional development, and member benefits to all CSDA members. We also work hard to make sure our partners feel valued

and are benefiting from the relationship. Recently, CSDA has worked through some changes and updates related to a few of our partnerships. Some initiated by us and some by the partners. It’s been an eye-opening experience and a firm reminder that it’s important to keep in mind what a true business partner looks like and what the expectations should be.

Support each other and be prepared to adjust as needed to keep focused on why you first came to work together.

In my mind, some of the core characteristics of great business partners include being: Supportive – Not every project, effort, month, or year is going to be the best. There will be ups and downs just like any relationship. Support each other and be prepared to adjust as needed to keep focused on why you first came to work together. Collaborative – There will be pain points along the way for sure. Share in the successful and less successful moments. Discuss challenges and opportunities regularly. Together, develop options for moving forward and compromise with the big picture in mind. Transparent – Significant changes to the partnership should not be a surprise to any of the partners. Being open, communicating often, and ensuring your partner is looped in on key decisions is extremely important. Goal Focused - Stick to what you agreed to. When you’ve achieved or exceeded goals, celebrate and work for even greater collective success. Don’t independently change the goal markers on a partner just because continued on page 6

CSDA Board and Staff Officers

Staff

RYAN CLAUSNITZER, CSDM, PRESIDENT, Alameda County Mosquito Abatement District

NEIL MCCORMICK, Chief Executive Officer MEGAN HEMMING, Professional Development Director KYLE PACKHAM, Advocacy & Public Affairs Director CASSANDRA STRAWN, Member Services Director RICK WOOD, Finance & Administration Director AARON AVERY, Legislative Representative EMILY CHA, Member Services Specialist MARCUS DETWILER, Associate Legislative Representative BRENT FARRAR, Graphic Design/Video Specialist VANESSA GONZALES, Communications Specialist COLLEEN HALEY, Public Affairs Field Coordinator LILIA M. HERNANDEZ, Legislative Assistant MUSTAFA HESSABI, Deputy General Counsel CHARLOTTE HOLIFIELD, Public Affairs Field Coordinator JENN JACOBS, Member Services Representative QUIANA JOHNSON, Member Services Representative ROSARIO CORTÉS KAPELLER, Senior Legislative Representative COLE KARR, Cole Karr, Public Affairs Field Coordinator & Federal Advocacy Coordinator CHRIS NORDEN, Public Affairs Field Coordinator CHRIS PALMER, Senior Public Affairs Field Coordinator AMBER PHELEN, Executive Assistant RACHAEL POPPINO, Professional Development Assistant COLE R. QUERRY, Legislative Analyst JENNIFER SMITH, Professional Development Coordinator ERIC SPENCER, Member Services Specialist DANE WADLÉ, Senior Public Affairs Field Coordinator JAMES WILFONG, Design & Websites Manager KRISTIN WITHROW, Communications Specialist

ELAINE MAGNER, VICE PRESIDENT, Pleasant Valley Recreation & Park District ARLENE SCHAFER, SECRETARY, Costa Mesa Sanitary District JERRY L. GILMORE, TREASURER, Truckee Sanitary District GREG ORSINI, PAST PRESIDENT, McKinleyville Community Services District

Members of the Board DON BARTZ, CSDM, Phelan Pinon Hills Community Services District STANLEY CALDWELL, Mt. View Sanitary District CHAD DAVISSON, CSDM, Ironhouse Sanitary District VINCENT FERRANTE, Moss Landing Harbor District PETER KAMPA, CSDM, Groveland Community Services District JO MACKENZIE, Vista Irrigation District NOELLE MATTOCK, El Dorado Hills Community Services District PATRICK OSTLY, North of River Sanitary District #1 STEVE PEREZ, CSDM, Rosamond Community Services District LORENZO RIOS, Clovis Veterans Memorial District FRED RYNESS, Burney Water District KIMBERLEE SENEY, Gold Mountain Community Services 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

PROFESSIONAL DEVELOPMENT

SAVE-THE-DATES!

SPECIAL DISTRICTS

2022 CSDA Conferences Register at csda.net!

Special District Leadership Academy Conference SOUTH April 3-6, 2022 San Diego Special Districts Legislative Days May 17-18, 2022 Sacramento General Manager Leadership Summit June 19-21, 2022 Coronado/San Diego area CSDA Annual Conference & Exhibitor Showcase August 22-25, 2022 Palm Desert Special District Leadership Academy Conference NORTH September 18-21, 2022 Napa Board Secretary / Clerk Conference November 7-9, 2022 Monterey

Join Us for 2022 Special Districts Legislative Days Gain the edge on policy changes impacting your agency and exchange ideas with California’s top decision-makers at the Sacramento, Ca 2022 Special Districts Legislative Days, an interactive and informative two-day legislative conference in our State’s Capitol. Day one includes an advocacy focus where attendees will explore how decisions are really made in the Capitol and help shape the outcome of special districts’ priorities. Highlights include state and federal legislative briefings, lunch meeting with Legislators and State Capitol staff invited, and a private legislative reception. Day two includes a policy focus featuring a keynote speaker followed by one of three in-depth breakout session options - climate adaptation and resilience, putting infrastructure funding to work, and safeguarding our communities’ assets from cyber threats. Visit csda.net to register and complete your registration by April 15 to take advantage of early bird discounts!

CEO’s Message continued things are going really well, not great, or it’s costing more money, time, etc. Remember you wanted the collective goals when you came together as partners. Future Focused – Most strong partnerships aren’t developed to last just a few months or even years. Embrace the long-term to envision what you hope the

partnership will look like in the future with a focus on being mutually successful in meeting whatever goals you have established. For CSDA, I’m grateful that the changes and updates in partnerships have happened because it will ultimately result in stronger programs and benefits for our members. Stay tuned for some really exciting new program announcements, developed through partnerships, in the coming months!

California Special Districts • March-April 2022

CSDA’s 2022

GENERAL MANAGER LEA ERSHIP SUMMIT

Elevate Your Professional Development – CSDA’s 2022 General Manager Leadership Summit

Dave Mitchell, M. Ed.

Pamela Barnum, M.P.A., J.D.

Don’t miss your chance to attend CSDA’s 2022 General Manager Leadership Summit, June 19 - 21, 2022 in the San Diego area. This cutting-edge conference for general managers and other management staff in special districts includes: two nationally known keynote speakers, a legislative update, and high-level breakout session options to give you the information and skills you need to help you and your district excel. Keynote sessions include “Leading a Peak Performance Culture” by Dave Mitchell, founder of The Leadership Difference Inc., and “Crack the Code on Trust: Insider Techniques for Leaders” by Pamela Barnum, M.P.A., J.D. who will share with us from her background as a former undercover police officer and federal prosecuting attorney. Check out the feature and interview articles of these keynote speakers on pages 18 and 22 of this issue!

Is This Your Year to Win a CSDA Award? Submit Award Nominations by May 2 Share the achievements of your district and honor the key players! CSDA recognizes its members’ outstanding contributions to the communities they serve through the annual awards program. There are award categories for individuals, districts, and chapters. Each of these awards are presented at the CSDA Annual Conference & Exhibitor Showcase August 22-25, 2022, in Palm Desert. The award categories are: • Board Member of the Year • General Manager of the Year • Staff Member of the Year • Ralph Heim Exceptional Outreach & Advocacy • William Hollingsworth Award of Excellence • Chapter of the Year • Innovative Program/Project of the Year (Large and Small District categories) • Exceptional Public Outreach & Advocacy (Large and Small District categories) • Excellence in Technology Learn more and submit nominations at csda.net/ awards by Monday, May 2, 2022. For questions, email Vanessa Gonzales at awards@csda.net. We look forward to recognizing your efforts!

REGISTRATION AVAILABLE NOW AT GMSUMMIT.CSDA.NET.

CSDA NEWS

CSDA BOARD OF DIRECTORS ELECTION SEAT B VOTING BEGINS

JUNE 2, 2022 The CSDA Board of Directors is the governing body responsible for all policy decisions related to CSDA’s member services, legislative advocacy, education, and resources. The Board of Directors is crucial to the operation of the Association and to the representation of the common interests of all California’s special districts before the Legislature and the State Administration. June 2 - Electronic ballots will be emailed to the designated contact in each district in good CSDA member standing. The designated contact for each district will receive an email from CSDA vote@simplyvoting. com. The email provides a direct link to the secure third-party voting system called Simply Voting and provides: • Elector ID number and Password • Link to access the ballot directly • Links to candidate information within the ballot It is up to each district to determine their own process in terms of selecting a candidate to vote for in the election. The selection will be cast by the main contact only. July 8 - Deadline to receive electronic ballots July 12 - Ballots will be counted and verified If you have any questions about this process, contact Amber Phelen at CSDA – 916-442-7887 or amberp@csda.net.

CSDA Announces New and Expanded Partnership with Streamline for Special District Websites and Compliance The California Special Districts Association and Streamline have renewed and expanded their endorsed affiliate agreement, bringing new technologies to special districts in California with special prices and significant discounts exclusively for CSDA members. Special districts’ digital landscapes have changed dramatically over the past few years. With new laws mandating everything from ADA compliance (AB 434) to public transparency (SB 929) districts have had to up their digital game within their lean budgets.   The updated partnership includes several extraordinary benefits to members. Faced with increasing pressure to be ADA compliant, CSDA members using Streamline will get free access to a new accessibility scanning tool that will scan their website and publish a compliance report on a new compliance page. The first-of-its-kind integrated tool takes care of publishing a website accessibility plan, compliance policy, requests for accommodation, annual platform testing by users with various disabilities, and monthly sitewide scans with public remediation reports. Member districts interested in learning more about Streamline and leveraging CSDA’s exclusive member discount can visit getstreamline.com/csda.

California Special Districts • March-April 2022

SPECIAL DISTRICTS

Congressman Salud Carbajal, Senator Melissa Hurtado, and Assemblymember Robert Rivas

HONORED AS CSDA LEGISLATORS OF THE YEAR

Attend the 2022 Special Districts Legislative Days May 17 – 18 and hear directly from these Legislators of the Year invited to address the statewide delegation of special district officials. Learn more and register at legislativedays.csda.net.

By Vanessa Gonzales, CSDA Communications Specialist

CSDA annually recognizes state and federal legislators that are exemplary leaders and steadfast supporters of the local service specialists responsible for providing water, sanitation, fire protection, parks, healthcare, and other essential services and infrastructure to communities throughout California. Special district officials recognized Congressman Salud Carbajal (CA-24) as their 2021 Federal Legislator of the Year at an event held at the Santa Maria Public Airport District on January 24, 2022. On February 4, special district leaders in the Central Valley and across the state from CSDA recognized State Senator Melissa Hurtado (SD-14) as their 2021 CSDA State Senate Legislator of the Year during a ceremony hosted by the Fresno County Fire Protection District. On February 25, Assemblymember Robert Rivas (AD-30) was honored as the 2021 CSDA State Assembly Legislator of the Year at an event held at Spreckels Veterans Memorial Hall, operated by the Spreckels Memorial District, featuring local leaders and special districts throughout the Salinas Valley and beyond.

CONGRESSMAN SALUD CARBAJAL (D-SANTA BARBARA)

Congressman Salud Carbajal receives CSDA Federal Legislator of the Year award at Santa Maria Public Airport District; pictured left-to-right: Ryan Clausnitzer, CSDA Board President and General Manager of Alameda County Mosquito Abatement District; Congressman Salud Carbajal; Elaine Magner, CSDA Board Vice-President and Vice-Chair of the Pleasant Valley Recreation and Park District Volume 17 • Issue 2

Congressman Salud Carbajal represents the 24th Congressional District of California. The district includes the entirety of San Luis Obispo and Santa Barbara Counties, and a portion of Ventura County. Congressman Carbajal served eight years in the United States Marine Corps Reserve, including active-duty service during the Gulf War in 1992. Prior to representing the Central Coast in Congress, he served as Santa Barbara County’s First District Supervisor for twelve years. In Congress, he has demonstrated a commitment to protecting our natural environment and resources, enhancing public safety, creating economic opportunities, and working regionally to address our transportation, housing, and workforce challenges. Throughout the COVID-19 pandemic, Congressman Carbajal has served as a leading congressional voice advocating for funding relief for special districts. He organized two congressional sign-on letters encouraging the State Legislature and Governor Gavin Newsom to provide COVID-19 relief to special districts. When honoring Congressman Carbajal, CSDA President Ryan Clausnitzer stated, “We are so fortunate to have a member of Congress who understands the value that special districts bring to a community and is willing to advocate for their equitable funding.” “I’m honored to be named the Federal Legislator of the Year by California Special Districts Association. I will always advocate for special districts on the Central Coast who provide essential services for our community,” said Representative Carbajal. “For the last two years during the pandemic, I’ve fought for special districts to be able to access critical COVID-19 relief funds so they can continue providing the services that the Central Coast relies on.” Other local officials praised the selection of Congressman Carbajal for CSDA’s annual award. Vandenberg Village CSD Board President Christopher Brooks stated, “We continued on page 10

CSDA NEWS

applaud Congressman Carbajal’s strong support of the Infrastructure Investment and Jobs Act and appreciate that he supports legislation which focuses on a climate resilient future for my grandchildren.”

STATE SENATOR MELISSA HURTADO (D-SANGER)

State Senator Melissa Hurtado is the youngest woman ever elected to the California State Senate. She represents Senate District 14, which stretches from Fresno to Bakersfield and includes Fresno, Tulare, Kings, and Kern Counties. Senator Hurtado was raised in Sanger, California and was the first person in her family to graduate from college. Prior to representing the Central Valley in the

State Senator Melissa Hurtado receives CSDA State Senate Legislator of the Year award at Fresno County Fire Protection District; pictured left-to-right: Ryan Michaels, CalFire/Fresno County Fire Protection District Fire Division Chief; Steve Haze, Sierra Resource Conservation District Executive Director; Lorenzo Rios, CSDA Board Member and Clovis Veterans Memorial District CEO; Ryan McNeil, Fresno Mosquito and Vector Control District General Manager; Ryan Clausnitzer, CSDA President, and Alameda County Mosquito Abatement District General Manager; State Senator Melissa Hurtado; Fresno County Fire Protection District Assistant Chief Chris Bump; Matt Furrer, Board President; CalFire and Fresno County Fire Protection District Fire Chief Dustin Hail; CalFire/Fresno County Fire Protection District Assistant Region Chief Curtis Brown; and Phillip Smith, Tulare Local Healthcare District CEO.

State Senate, she was elected to the Sanger City Council in 2016. In the State Legislature, Senator Hurtado is known for being a thoughtful policymaker who works across party lines to improve the quality of life for residents and to ensure rural voices are heard at all levels of government. She focuses on rural community issues that often go unheard in the State Capitol. In 2021, Senator Hurtado was instrumental in securing $100 million in California’s state budget for special districts’ COVID-19 fiscal relief. The senator successfully organized a 46-member, bipartisan, and bicameral coalition of state legislators who urged Governor Gavin Newsom to extend COVID-19 relief funding access to special districts. This funding was CSDA’s top priority for 2021, and the organization’s partnership with special districts and engagement with state and federal officials resulted in its approval. 10

“A majority of special districts across the state struggled financially after widespread exclusion from pandemic assistance for state and local governments,” said Clausnitzer. “That changed after Senator Hurtado’s leadership and organization of a legislative coalition supporting specific state funding for special districts’ COVID-19 response and recovery.” “With this funding, often forgotten and left behind rural communities, like Calwa Recreation and Park District – that are special districts will get some relief,” said Senator Hurtado. “I am honored to be recognized, and will continue to fight to ensure California’s special districts – who serve so many – are able to continue to provide their vital services.” The Fresno County Fire Protection District, where Senator Hurtado accepted the award, received an $867,207 allocation from the $100 million special districts COVID-19 recovery fund that Senator Hurtado supported. The fund was dispersed to 263 independent districts across the state. “The Fresno County Fire Protection District extends our utmost appreciation for Senator Melissa Hurtado’s commitment, support and guidance of state special districts,” said Dan Urias, Fresno County Fire Protection District Battalion Chief. “Senator Hurtado’s leadership and foresight has aided in our Fire department’s successful navigation through the COVID-19 pandemic.”

ASSEMBLYMEMBER ROBERT RIVAS (D-HOLLISTER) Assemblymember Robert Rivas has represented California’s 30th Assembly District since 2018. The district includes all of San Benito County, half of Monterey County, and parts of Santa Clara and Santa Cruz counties. Raised in Paicines, California, where his grandfather was a farmworker at Almaden Vineyards, Assemblymember Rivas is a lifelong resident of the 30th Assembly District. He served two terms on the San Benito County Board of Supervisors prior to his election to the State Legislature. Assemblymember Rivas also played a critical role in supporting special districts’ ability to effectively govern during the pandemic and other emergencies. He authored CSDA-sponsored Assembly Bill 361, which was signed into law as urgency legislation to allow local agencies to conduct remote board meetings during declared emergencies in a safe and accessible manner. Last year, Assemblymember Rivas signed onto a bipartisan letter from 46 legislators urging Governor Gavin Newsom to extend COVID-19 relief funding access to special districts. This effort resulted in a $100 million allocation in the state budget for independent special district funding for their pandemic-related impacts. In the 30th Assembly District, 12 independent special districts received a total of more than $3.1 million in relief funding for their COVID-19 impacts. These California Special Districts • March-April 2022

Assemblymember Robert Rivas, center, is flanked by special district officials and local leaders from throughout Assembly District 30 at an event honoring his selection as CSDA’s State Assembly Legislator of the Year held at Spreckels Veterans Memorial Building.

essential service providers and the communities they serve would have been left out if not for this important funding that Assemblymember Rivas was instrumental in securing. In presenting the award, CSDA Past President Vince Ferrante, who is also a Moss Landing Harbor District Commissioner, stated, “We are so fortunate to have a legislator who understands the value that special districts bring to a community and is responsive to them in so many ways.” He added, “I want to thank Assemblymember Rivas for his support for the $100 million State Budget allocation for independent special districts’ funding relief – Moss Landing

Harbor District received $329,000 from this fund, which will help the district greatly to improve our infrastructure throughout the Harbor.” “I want to express my gratitude to California Special Districts Association,” said Assemblymember Robert Rivas (D-Salinas), “for the work that the organization has done in service to our communities. The 1,300+ special districts that CSDA represents ensure that our most vulnerable residents receive health care, clean drinking water, transportation, and other vital services, even during a major pandemic. I am humbled to be recognized as one of their State Legislators of the Year and look forward to working together with CSDA on future projects.” Spreckels Memorial District General Manager Paul Ingram applauded Rivas for his efforts on behalf of special districts to secure funding for pandemic-related needs. “Our district was heavily impacted by the loss of facility rental income during COVID-19, and we had counted on this revenue source to help pay for a portion of the full ADA bathroom remodel in Spreckels Memorial Park. The $33,815 we received from the $100 million independent special districts relief fund allowed us to complete this important project for our community, which makes our facilities accessible to all visitors to our park. We can’t thank Assemblymember Rivas enough for his role in securing these funds for a small special district within his legislative district.”

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TRENDING: Using Social Media

to Promote Transparency and Accountability By Michelle L. Villarreal and Anahit Sargsyan, Aleshire & Wynder, LLP

The global pandemic has highlighted the benefits, and potential problems, of local governments utilizing social media in their operations. The United States Supreme Court has described social media platforms as the “modern public square” noting that constituents may “petition their elected representatives and otherwise engage with them in a direct manner.” (Packingham v. North Carolina, 582 U.S. __, 137 S. Ct. 1730 (2017).) Incorporating social media into a district’s practices promotes not just efficiency, but also transparency and accountability. 12

Special Districts provide essential services that millions of residents and businesses rely on daily, but they are also a relatively unnoticed part of local government. Lack of public awareness and the growing number of special districts can make it difficult for citizens to link specific services to the providing entities, reducing opportunities for democratic engagement. It is no secret that public participation in local government elections is comparatively low, even more so in the case of special districts. Many customers utilize special districts’ services without being particularly aware of how the districts are structured and operate. It has been suggested that because of districts’ specialized nature, many residents may prefer services by special districts once they know how services are arranged. California Special Districts • March-April 2022

As social media is making its way through every aspect of our lives, its power to increase awareness about local government agencies cannot be understated. Over 60% of Americans report using the internet to access government information. Increasing your district’s social media presence can help increase public awareness and engagement. This includes sharing links to video of public meetings or other events, encouraging public participation. Utilizing social media platforms also reduces public relations and advertising costs by reaching people on platforms they already use. Another benefit is providing real-time updates, such as emergency alerts and public service announcements. Information is shared quickly and citizens can provide feedback nearly instantaneously. A well-crafted social media policy can set clear guidelines and expectations for board members, employees, and the public. A policy will not only ensure that the most up to date information is publicly available, avoiding the spread of misinformation, it can also help defend against litigation. Developing case law has held that the social media pages of local government agencies and elected officials are public forums of speech. A district can find itself entangled in costly litigation for infringing First Amendment rights. Such policies should be reviewed and updated on an annual basis to protect the district and promote social media as a public resource. The California Legislature responded to the need to address where public officials’ use of social media fits in the Brown Act context with the passage of AB 992. The Legislature clarified that public officials may communicate on social media platforms, but are prohibited Volume 17 • Issue 2

“As special districts become more reliant on social media, keeping potential First Amendment issues in mind is increasingly important. “

from directly interacting with one another’s posts. Nuanced issues around commenting, liking, and sharing posts remain not clearly addressed. As special districts become more reliant on social media, keeping potential First Amendment issues in mind is increasingly important. As a public agency, a district cannot restrict its employees’ First Amendment right to comment on matters of public interest. Therefore, a public employee’s off-duty

social media posts are protected speech. A public employer cannot discipline the employee for their posts unless it can make certain showings, such as a disturbed work environment, which is a hard standard to meet. Many pertinent questions around government use of social media are yet to be addressed by the Legislature and courts. In the current climate, it is important to be aware of the potential pitfalls of using social media and remain updated.

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MOVERS & SHAKERS

MOVERS& SHAKERS The Port San Luis Harbor District Board of Commissioners appointed Suzanne Watkins as their new Harbor Director. Ms. Suzanne Watkins Watkins’ background includes nineteen years of work experience with the County of Ventura including the last sixteen years as the Deputy Director of the Harbor Department, Channel Islands Harbor. Ms. Watkins has a Bachelor of Arts Degree from the University of California at Riverside and a Master of Business Administration from California Lutheran University. She has worked on private/public harbor capital improvement projects and managed the lease sites within Channel Islands Harbor. She led a team in Channel Island Harbor in the financial and administrative operations of the Harbor Department. Watkins began her new position as Harbor Director in February. New Cameron Park Community Services General Manager André Pichly has worked in the parks and recreation field Andre Pichly for nearly 32 years. His illustrious career includes 20 years as West Sacramento’s recreation superintendent before he headed to Tracy, where he served as the Parks and Community Services director. But it was Sacramento that Pichly called home even as his other employment stints took him farther away, including Auburn and St. Helena. Pichly said he is excited to help develop his new staff’s roles within the 14

community and enjoys keeping the enthusiasm up. “I am impressed with the passion they have in their jobs,” he said. “We can play a positive role in helping people feel a sense of normalcy and keep them safe. I like having a positive impact on the people we serve by bringing quality services to the residents.” The Pichlys have deep roots within the California State University, Sacramento community, Andre having met his wife while attending college there and where Pichly currently teaches in the Recreation, Parks and Tourism Department. His three children — Andy, Alexa and Alyse — also attended Sac State, two of them having followed in their father’s footsteps and work in the same field. The Oxnard Harbor District/Port of Hueneme Board of Harbor Commissioners named its officers for 2022. Commissioner Mary Anne Mary Anne Rooney Rooney was unanimously voted to serve as president. “It is truly an honor to serve as Harbor Commissioner President for a third time,” said Commissioner Rooney. “Along with my fellow Commissioners, we will keep our resolve and steadfast commitment to environmental progress, innovation, and our community. We will continue to support our customers and serve as an economic force in the county by creating thousands of jobs and providing over $100 million dollars in tax revenues for our local communities.” Commissioner Rooney was the first woman elected to the Board of Harbor

Commissioners in November 2010 and served her first term as President of the Board in 2014. She is an active member of the community serving on the Boards of Nyeland Promise and the Local Agency Formation Commission; past President of the Association of Pacific Ports; Economic Development Committee Member for the American Association of Port Authorities; and a Delegate on a Leadership Mission to Taiwan in 2013, past Vice President of the Ventura County Special District Association.

Photo Caption: (L-R): Ventura County Special Districts Association General Manager of the Year Brian Pendleton accepts the award from Awards Committee Chairs Elaine Magner, CSDA Board Vice President / Pleasant Valley Recreation and Park District Vice Chair, and Rancho Simi Recreation and Park District Director Elaine Freeman.

Director Mark Malloy of Pleasant Valley Recreation and Park District was named the Ventura County Special District Association’s Director of the Year for 2021.

California Special Districts • March-April 2022

On February 1, the Ventura County Special Districts Association held its annual awards meeting to honor the very best of the County’s special districts. Ventura Port District General Manager Brian Pendleton earned General Manager of the Year, while Pleasant Valley Recreation and Park District Director Mark Malloy was named Director of the Year. Congratulations to these outstanding public servants for their dedication to special districts! Brian Pendleton, who has been at the helm of the Ventura Port District since 2019, was honored with General Manager Brian of The Year by Ventura Pendleton County Special Districts Association (VCSDA). VCSDA Board President Bruce E. Dandy states, “All of the members of the Ventura County Special Districts Association

are proud of Pendleton’s numerous achievements on behalf of the Ventura Port District, which is a valuable asset to our community and to Ventura County’s economy, fishing, recreation, and tourism industries. We all join in congratulating Brian for his accomplishments.” During the past year, Pendleton has been instrumental in spearheading four key initiatives that can be attributed to receiving this prestigious achievement. He developed and led the implementation of a forwardthinking COVID-19 Rental Abatement and Deferment Program that went into effect at the beginning of the pandemic, which helped avoid business closures at Ventura Harbor as a result of the pandemic. In 2021, Pendleton and his team developed a Public and Civic Engagement Plan ensuring effective public input process and increase in transparency of relations with stakeholders. He also worked with the California Special Districts Association to ensure ports and harbors were

included in Governor Gavin Newsom’s $250M American Rescue Plan Act (ARPA) funding for Ports and secured a $1M grant from the State Lands Commission to address COVID impacts to the district. The Ventura Port District has also recently received the District Transparency Certificate of Excellence by the Special District Leadership Foundation (SDLF) in recognition of its outstanding efforts to promote transparency and good governance. “I’m honored to receive this award from the Ventura County Special District’s Association. It is truly a reflection of the leadership of our Port Commissioners and hard work and dedication of our Port District staff, and tenant business partners who continually strive in making Ventura Harbor a first-class working waterfront and seaside destination,” said Pendleton. continued on page 16

Do you have movers and shakers in your districts to highlight? Send to CSDA Communications Specialist-Editor Vanessa Gonzales at vanessag@csda.net for consideration in this section.

Volume 17 • Issue 2

MOVERS & SHAKERS

The Midpeninsula Regional Open Space District has been recognized by the Government Finance Officers Association of the United States and Canada (GFOA) with the special Triple Crown medallion. The medallion is awarded to local governments that have received the GFOA’s Certificate of Achievement for Excellence in Financial Reporting, Popular Annual Financial Reporting Award, and the Distinguished Budget Presentation Award in the same year. This marks the sixth consecutive year Midpen has received the Distinguished Budget Presentation Award. “Winning this award is recognition of Midpen’s strong financial operations and reporting,” Chief Financial Officer Stefan Jaskulak said. “It’s a reflection of our ongoing commitment to building public trust and demonstrating accountability through full disclosure of our budgeting and finances.” Midpen has also received the District Transparency Certificate of Excellence from the Special District Leadership Foundation (SDLF) in recognition of its outstanding efforts to promote transparency and good governance. “These awards are a reflection of Midpen’s commitment to open government,” General Manager Ana Mária Ruiz said. “Our board of directors and staff are dedicated to transparent operations and providing the public the with opportunities to engage in our decision-making process.”

The Costa Mesa Sanitary District (CMSD) has been recognized by the Government Finance Officers Association (GFOA) of the United States and Canada with the Distinguished Budget Presentation Award. This recognition from the GFOA goes to local governments which prepare a budget document of the highest quality and reflect the guidelines established by both the National Advisory Council on state and local budgeting and GFOA’s best practices on budgeting. The Distinguished Budget Presentation award represents a significant achievement by CMSD and allowed CMSD to earn GFOA’s prestigious Triple Crown recognition, which recognizes government agencies that have received GFOA’s Certificate of Achievement for Excellence in Financial Reporting, along with its Popular Annual Financial Reporting (PAFR) award and the Distinguished Budget Presentation award in the same year. Only a handful of local government agencies nationwide receive this recognition annually and even fewer independent special districts are so honored. “The Costa Mesa Sanitary District has a long history of commitment to excellence in government finance,” said Board President Bob Ooten. “We believe complete transparency and full disclosure of our finances builds public trust and demonstrates accountability and we hope that CMSD’s recognition inspires all special districts to strive to become Triple Crown winners from GFOA.”

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California Special Districts • March-April 2022

YOU ASK, WE ANSWER

Q&A

Questions Appear in CSDA Online Communities

Required Rate Consultants

Volume 17 • Issue 2

Emily Arnbrister Account Administrator, Ventura River Water District Hello, I was wondering if anyone knew if there is a legal requirement that water agencies must use a rate consultant every 10 years? My general manager thought he remembered something along those lines, but we haven’t been able to find a water code to back that up. Thank you! Robert Bosso Law Office of Robert E. Bosso, Santa Cruz, CA I know of no “requirement,” but adopting new rates without a professional study is risky business in the Post Prop 218 era because the courts have imposed an approach which usually requires an expert.

Thomas Brightbill, PE Senior Engineer, Planning and Development Services Division, Central Contra Costa Sanitary District Hi Emily, Government Code section 54999.7 requires any public agency providing “public utility service” to public schools to complete a costof-service study “at least once every 10 years.” Government Code section 537956 (Prop 218 implementation) discusses a 5-year cost of service requirement. That specific section deals with automatic “pass through” adjustments for water, wastewater, and solid waste under Prop 218. The guidance I’ve received a couple of times from legal counsel and from lawyers at a CSDA Prop 218/Prop 26 workshop training was that the 5-year requirement for a cost-of-service study should not be considered to be limited to only pass-through adjustments. I do not know of a specific requirement that the cost-of-service studies be done by an outside consultant. 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.

Engage with your peers and ask questions on CSDA’s Open Forum community! 17

FEATURE

ORGANIZATIONAL CULTURE:

The Great White Whale KEYNOTE SPEAKER AT THE 2022 CSDA GENERAL MANAGER LEADERSHIP SUMMIT The Leadership Difference Inc. Founder David Mitchell is a keynote speaker at the upcoming CSDA General Manager Leadership Summit June 19 – 21 in Coronado. He will be speaking on “Leading a Peak Performance Culture.” Since founding the Leadership Difference in 1995, over 450,000 people have attended Dave’s “enter-TRAIN-ment” seminars on topics that include leadership, customer service, selling skills, and personal performance enhancement. Register for the conference at gmsummit.csda.net

By David Mitchell

37 years. That’s how long I have pursued my own version of Moby Dick. It was in 1985, in my first corporate training job, that I first heard about this mysterious characteristic that an organization possesses that will determine the level of success to which it can aspire – culture. California Special Districts • March-April 2022

To this day, talking with C-Suite level executives of multi-national companies, entrepreneurs, executive directors of non-profit organizations, and public sector leaders; I continue to hear how important they believe their culture is (can be) to their success. And yet, when I ask them to define culture as they envision it, the description is as elusive at Melville’s whale. It became obvious to me that while everyone agreed that culture was critical to success, few – if anyone – could articulate what it was. So, on the heels of writing two award winning books, The Power of Understanding People and The Power of Understanding Yourself, I endeavored to write a book that essentially explored the power of understanding an organization – Peak Performance Culture: The Five Metrics of Organizational Excellence. It turns out, one of the reasons that culture is hard to define is that it is complicated. In this rapid paced era in which we live, we long for simple and fast fixes for the challenges that confront us. Culture is not simple, nor can it be fixed fast. As a speaker and consultant, that’s a tough message to deliver to audiences and my clients. It would also make for a short book – “Um, it’s complicated.” So, despite the risk of becoming the tragic figure depicted by Captain Ahab in Melville’s novel, I endeavored to quantify this baffling beast. I pursued Moby Dick. First, culture has an infrastructure. Just like the highest quality home is built on a strong foundation and a sturdy frame – so, too, is culture. There is the need for horizontal and vertical alignment – terms that refer to an organization’s core ideology and ability to drive that secret sauce into all levels, locations, and functions within it. The problem is many organizations experience the epiphany of the importance of culture well after much of their infrastructure has been installed – installed without intention to support a Volume 17 • Issue 2

core ideology. So, the alignment occurs retroactively and remedially – making it both hard to achieve and a pain in the butt. When things are both hard and uncomfortable, they generally are avoided. Imagine how hard it would be for Ahab to land Moby Dick in a rickety boat and bad sailing practices. Well, actually… Then there are the siblings of culture: customer and employee experience. Customer experience – like the favored child – often gets all the attention and resources. But, just like in any family dynamic, if the one sibling gets favorable treatment, the other sibling often develops dysfunction. Unhappy employees cannot satisfy customers over the long term. Unhappy customers make employees miserable in the long term. Great cultures require that attention be given to what it feels like to work at the organization AND patronize it. Add the happiness of ownership and you arrive at the holy trinity of organizational effectiveness: Customer, Employee, and Stakeholder satisfaction. Any organization that doesn’t continually measure these components of their success is doomed to mediocrity or worse.

That leaves one last metric, and it is a big one: leadership ideology. Every organization faces a volatile balancing act – a performance teeter totter if you will. Executive leadership has substantial authority but very little impact. Oh, the C-suite thinks it is important, but the reality is they are fairly easy to replace. They have the power to change things but often lack the knowledge of how things really are. The line level employees have the impact – they touch the customer/end user on a constant basis. The organization is defined by the interactions the customer has with the employee. Yet, while employees know firsthand where practices, policies, and tactics are detracting from the expressed core ideology of the organization, they have little ability to change them. Leaders have authority but little impact. Team members have impact but little authority. Ishmael in Moby Dick had a pretty good idea that Ahab’s revenge tour would end poorly but was powerless to change it. Leadership ideology is a package of characteristics that form the expectations for how we behave in the organization. It reconciles the authority continued on page 20

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FEATURE

versus impact dynamic, acting as the fulcrum. It differs from organizational values – a concept that I do not support, by the way – in that they are observable, definable, and measurable. Plus, there are known links between certain behaviors and sustainable peak performance. In the end, it was leadership ideology that sunk the Pequod in Moby Dick. It often spells the end – or at least hamstrings the success – of organizations, too. And so, when I am asked to speak on the topic of Peak Performance Culture, I spend most of the time on the concept of leadership ideology. Of the five metrics, it has the broadest spectrum of influence on the organization. The best leadership can overcome less than stellar alignment. Great leadership can elevate both the customer and employee experience and delight the stakeholders. It is that powerful. And just like in Moby Dick, poor leadership can sink the entire ship.

In 2013, Dave was named Best Speaker of the Year at Meeting Professionals International’s World Education Congress in Las Vegas. In 2015, Meetings and Conventions Magazine named Dave one of the Best Speakers of the Year. Dave has served as an adjunct professor at the University of Illinois, is a regular guest lecturer at Whitman College and Walla Walla University and serves as President of the Business Advisory Board of Walla Walla Community College. He has a master’s degree (M. Ed.) in Global Human Resources Development and is designated as a

Certified Advanced Wine Sommelier. His “laugh and learn” style makes him a popular host for non-profit fundraising events. Dave is the author of four books. Live and Learn or Die Stupid! focuses on personal contentment and performance excellence. His second book, The Power of Understanding People, was an Editor’s Choice for Best Business Book by Amazon. His third book, The Power of Understanding Yourself, was named TOP READ by TRAINING Magazine. Dave’s fourth book, Peak Performance Culture: The 5 Metrics of Operational Excellence, provides the source material for his presentation at the CSDA General Manager Leadership Summit.

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Volume 17 • Issue 2

INTERVIEW

Crack the Code on Trust:

Insider Techniques for Leaders By Vanessa Gonzales, CSDA Communications Specialist

Pamela Barnum

KEYNOTE SPEAKER AT THE 2022 CSDA GENERAL MANAGER LEADERSHIP SUMMIT Trust Strategist and Body Language Expert Pamela Barnum, a former undercover police officer and federal prosecuting attorney, is a keynote speaker at the upcoming 2022 CSDA General Manager Leadership Summit. Learn how to negotiate with ease, influence with trust, and detect deception with confidence. She will be speaking on “Crack the Code on Trust: Insider Techniques for Leaders” happening June 19 – 21, 2022 in Coronado, CA. For more information and to register for the conference, visit gmsummit.csda.net

Tell us about your background as a former undercover police officer and federal prosecuting attorney. My policing career began way back in the early 90s. I started in uniform and spent a few years there, and I loved criminal work – especially in drug enforcement. When I was recruited, I was the only undercover woman in a unit of 92 specialized police officers. I worked drugs for almost a decade. When I say I worked undercover, it wasn’t just dressing in plain clothes; I’d live for months with a different identity, a different name, and in various locations. We’d start a street-level project, as complete unknowns where we had to meet people and work our way up the hierarchy—starting with smaller buys and going to more significant buys that would go up to hundreds of thousand-dollar deals. I’ll share some of those stories when we are together in June. It was an exciting time in my career. I met my husband through this as we were set up together; we call it our “government prearranged marriage.” We had never met before, were in two separate drug units, and had to live together as a married couple. We were new to the town, didn’t

know anyone, and set up an apartment together. Long story short, we did this ten-month-long project; and at the end of the ten months, we were a real couple. We got married after and decided to have a family. I got pregnant shortly after law school, and because the job was not a mom-friendly one, I changed directions and left the drug unit to become a federal prosecutor. I started prosecuting at the provincial level, which is your state level, then moved to the federal level and specialized in drug prosecutions.

How did interpreting body language play a role in these careers? Whatever we do, we are dealing with people in all our professions. Often what people say and what people mean are different things. In policing, I had to watch for the behavior of violence and aggression. Unfortunately, this is a fundamental part of many other professions, and we must look for those signs. Deception was a part of something I was looking for as well. Many of us are looking for that as we are California Special Districts • March-April 2022

“

Non-verbal communication is a significant data source that can be used to make decisions around trust.

”

communicating with people. Sometimes it is not intentional; memories get confused. As a prosecutor, I saw that a lot when I was interviewing and crossexamining witnesses. People would say things, recall things, and get confused, so I would have to watch for the tells in what they were displaying and the words that came out of their mouth. Frequently, there is a disconnect you can pick up on if you’re paying close attention. Many people are terrible at doing this, so the chances of them picking up on deceptive behavior through body language and nonverbal cues are as likely as a coin toss. At the General Manager Leadership Summit, we will be going through a few strategies that will help you detect deception, at least when people are going off course, so that you can bring things back. We will be going through what to watch for in those cues of hesitation and uncertainty.

It’s hard to believe you made hundreds of drug buys from the street level! Share some of the most impactful moments from those experiences. A lot of people think the most impactful moments are the ones you may have heard of from my first TED Talk, like jumping out of a moving car or being locked in a drug house, but those were not the most impactful moments when you think of violence or danger. The most impactful moments were the most mundane because that’s how people live their lives. It’s not like Volume 17 • Issue 2

television; it’s often survival in life based on all these choices. For the people I dealt with in that career, their options were often between bad and worse, coming from a history of neglect and abuse. Of course, not everyone from this background chooses a life of drugs and crime. We hear many inspiring stories of people who had these rough beginnings and have done remarkable phenomenal things. All the people I spoke with didn’t know who I was; they thought I was one of them. So, they were frequently sharing stories with me from a place of honesty because we were connected in that way; we had a common place we were coming from. I learned that there was usually a history of neglect and abuse with these individuals. In fact, I never met a drug dealer or a heavy user in that line of work who had come from a loving, supportive family who was encouraged to go for their dreams and provided every opportunity available. The most impactful moment to me was recognizing that when people have limited choices, often between bad and worse, judging them harshly and expecting them to make better decisions is very short-sighted. We need to be more open and empathetic. My second TED talk, which I recently recorded, takes a deeper dive into that and how as leaders, especially community leaders, empathy is the number one communication strategy that can build bridges and take us to the next level.

What benefits are there for local government leaders to better interpret non-verbal cues? I studied local government to a small degree in my graduate program (all of you have that expertise, and

I’m looking forward to hearing from you on this). From my understanding, local government leaders interact with members of the public way more than other government leaders. They know the people in the community; they are entrenched in it and are a significant part of it. With this much interaction, watching for those cues when connecting with people provides endless benefits to better understand constituents. Research shows that the majority of communication is non-verbal. Clearly, none of us start with words. All parents recognize the sounds and movements infants make mean they’re hungry or in pain, need a diaper changed, or just want attention. We know that without words. This is just like knowing the look our colleagues give us when they want a meeting to be over, or our significant other gives us a look, and we know that they want to leave the dinner party – or that they’re having a great time and want to spend the whole evening with those people. We understand the non-verbal cues that come our way. We will get into the brain research behind this more in June, but most communication is non-verbal. If we ignore this with our constituents and the people we interact with on decisions that impact their lives regularly, we are missing more than half of the conversation. How much more beneficial would it be to the people we serve and to ourselves as pillars in our community to be able to communicate better, more effectively, and to be able to receive more information so we can interpret better. Then we can respond more openly and effectively. continued on page 24

INTERVIEW

Share more about what attendees can look forward to learning from you at the General Manager Leadership Summit in June.

If there is one piece of advice you’d give to our members, what would it be?

I’m going to be talking about Crack the Code on Trust: Insider Techniques for Leaders. Studies show that the higher levels of trust, the more successful the outcome will be. Nonverbal communication is a significant data source that can be used to make decisions around trust. I will give you insider techniques that I learned in my 20+ years in the criminal justice system. We will be going in-depth into A, B, C’s: A – accurately access others’ non-verbal cues, their body language. We will be walking through the steps and learning how to build trust quickly and easily. B – behave in a way that communicates confidence and trustworthiness in every situation. We will develop those non-verbal communication techniques that make people feel validated and appreciated. C – create an environment that fosters authenticity and trust. Learn how to turn those first impressions into winning impressions.

Become exceptional at listening. Building rapport and expressing empathy effectively all begin with listening. There is a lot of research around this positive leadership that happens – but it comes from active listening. I spoke about this in my second TED Talk, and I will share the latest research with you at the General Manager Leadership Summit. You will take a lot away from that on building rapport and elevating the leadership that comes from empathy.

Is there anything else you would like to share? This opportunity we’ve been given to meet with our colleagues in person is a gift. We’ve all missed it very much. I’m thrilled to be with you in Coronado, a favorite place of mine. I live in the Canadian Rocky Mountains, where there is a lot of snow, but beautiful. It will be incredible to be with you and share these actionable strategies. These will be real things that you can do right away at that moment. The best part is we will have a lot of fun in the process. I look forward to seeing you in June!

TRUSTED GUIDANCE YEAR AFTER YEAR With each new year comes new laws and regulations. This year and every year, Best Best & Krieger LLP is committed to providing special districts with the cutting-edge information needed to succeed. Whether it's guidance on new legislation, a court decision or current events, BB&K's alerts, webinars and other announcements keep special districts in-the-know. Don’t miss a beat – subscribe to our eCommunications today.

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California Special Districts • March-April 2022

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Umpqua Bank is proud to be selected as the California Special Districts Association’s Commercial Card Program provider. CSDA’s specialized card program, through Umpqua bank, not only offers one powerful cash management business tool that can help manage purchasing, travel, fleet, and expense management –all in one card. It also provides you access to industry expertise to ensure safe and proper administration of district funds and municipal financing through our dedicated municipal banking team. CSDA’s Commercial Card is backed by Visa and is designed with special districts in mind, so your agency can securely manage expenses and payables while giving employees flexibility without sacrificing control. In addition, the card offers a very competitive rebate structure that aggregates the total spend by all participating agencies. Your district can be earning at least one percent cash back on your commercial card spend. To learn more about this exclusive CSDA member benefit, contact Vanessa Ryan at 916.724.1214 or vanessaryan@umpquabank.com or Anastasia Efstathiu at 916.774.3923 or anastasiaefstathiu@ umpquabank.com. Volume 17 • Issue 2

DISTRICTS MAKE THE DIFFERNCE

What Happens When You Flush? Ask A Third Grader!

s you watch the water circle the drain and disappear, do you know what happens next? If you know any kindergarten through fifth grade students, they might be able to tell you thanks to Central Contra Costa Sanitary District’s (Central San) Pipe Protectors program. Pipe Protectors was developed in-house by Central San’s communications team for grades TK-5. This educational program brings the work of wastewater treatment to local schools through high-quality, hands-on lessons in science and engineering. It offers a host of age-appropriate experiments to help students consider the ways their actions at home connect with consequences in their environment. “We know that if we have a connected and engaged student community, those students will become the next generation of highly knowledgeable customers and environmental stewards,” says Ben Lavender, Community Affairs Representative for Central San. 26

A cast of friendly characters, including Piper, the female crew leader; Kelvin, a chemist; and Toot the Toilet, guide Central San’s youngest customers through lessons aligned with the Next Generation Science Standards. They teach basics in physics, matter, engineering, and chemistry through creative experiments in wastewater engineering, such as “Toot the Toilet,” “What Goes Down the Kitchen Sink,” and “Kelvin’s Chemistry Lab.” In “Toot the Toilet,” young students investigate the physics and engineering of a toilet drain. They learn that water is pushed through toilets, not pulled like most people think. Students consider the diﬀerences between toilet and non-toilet paper and the big problems that come when the wrong things (like toys) are ﬂushed. “What Goes Down the Kitchen Sink” teaches second graders how wastes interact with each other and with water when they go down the drain. The students make their own wastewater with food and other materials, then observe what happens to the mixture. This program helps students learn some of the basics of matter and recognize some items that should not be put down the kitchen sink. Older students work through “Kelvin’s Chemistry Lab,” which takes them through lab-style stations to uncover the principles of matter. This program encourages a deeper understanding of what happens to the wastes that are poured down the drain, something many students (and adults) have never considered. California Special Districts • March-April 2022

“We’ve purposely designed our program … to model the principles of resource recovery [which is the idea that] things that go down our drain are not simply wastes that need to be disposed of but rather resources that can be recovered, recycled, and reused,” says Lavender. This strategy proved incredibly eﬀective during the last two years when Central San oﬀered a variety of hands-on distance learning lessons. These virtual opportunities allowed students to recover and reuse everyday items in their homes, which made them ready to explore and learn through the Pipe Protectors program. Pipe Protectors has received overwhelmingly positive feedback from the community, teachers, and parents in addition to numerous state and national industry awards. For its continued focus on wastewater literacy, Pipe Protectors was recognized by the National Association of Clean Water Agencies in February 2020 and received a National Environmental Achievement Award in the Public Information and Education (Educational Program) category. Learn more about Pipe Protectors by visiting centralsan. org/pipe-protectors.

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WHAT'S SO SPECIAL

PLEASANT VALLEY RECREATION & PARK DISTRICT

CELEBRATING 60 YEARS OF COMMUNITY SERVICE! Pleasant Valley Recreation & Park District, an independent special district, was formed on January 16, 1962, under the State Public Resource Code of California. In honor of their 60th anniversary this year, California Special Districts interviewed some members of their board and staﬀ, including Pleasant Valley Recreation & Park District General Manager Mary Otten, Director Mark Malloy who was just named Director of the Year by the Ventura County Special Districts Association, and District Board Vice Chair and CSDA Board Vice President Elaine Magner. Watch the video interview on the Districts Make the Diﬀerence YouTube channel.

the State Division of Recreation to create a study on the feasibility of establishing the Pleasant Valley Recreation & Park District. The survey of the recreation and park needs of Camarillo indicated a recreation and park district was needed for the growing community and lack of access. The population during the original request was approximately 2,000 people.

What’s special about your district and how it serves constituents? Pleasant Valley Recreation & Park District provides and maintains a full range of quality facilities and programs focused on leisure, recreational and athletic activities for residents of the district. We provide neighborhood parks, community parks, and regional parks that include amenities such as: BMX, roller rink, aquatic center, equestrian, sports ﬁelds, and dog parks, as well as 55 annual district-produced events and over 1,900 classes and programs annually for the community!

What was Pleasant Valley Recreation & Park District like 60 years ago compared to now?

youtube.com/DistrictsMaketheDiﬀerence

Tell us how Pleasant Valley Recreation & Park District came about. Why was it started? In March of 1961, the Ventura County Board of Supervisors, at the request of the Camarillo Chamber of Commerce, asked

When Pleasant Valley Recreation & Park District was established in 1962, it only had one park, the ﬁve-acre Dos Caminos Park, which is still in existence today. The district partnered with the Pleasant Valley School District during the initial years to provide facilities and programming. A $1.5 million bond was passed by the community in 1969 to build the community center and the aquatic center. Over the past 60 years, the district has grown from one park and 30 acres to 28 parks and over 200 acres in the Camarillo area! Their largest park is a 52-acre sports complex. California Special Districts • March-April 2022

PLEASANT VALLEY RECREATION & PARK DISTRICT DISTRICT SIZE: 28 PARKS ON 256 ACRES POPULATION: 70,000

LOCATION: CAMARILLO, CA AREA WEBSITE: WWW.PVRDP.ORG

“We have a 52-acre sports park that is renowned in southern California and Nevada; people travel from far and wide to come and participate at this facility. The district has beautiful baseball ﬁelds, a wonderful aquatic center, and three of the most impressive dog parks of any community around,” said Pleasant Valley Recreation & Park District Board Vice Chair and CSDA Board Vice President Elaine Magner. The district continues to meet the needs of its growing community from a population of 2,000 in 1962 to a population of 70,000 resident over 45 square miles in 2022!

What accomplishments of your district are you most proud of? Pleasant Valley Recreation & Park District Director Mark Malloy shared, “I really enjoy being a part of the community and supporting parks and recreation. The accomplishments I am the proudest of is the fact that we have a really wide range of activities and parks. We have BMX bikes, radio control cars, tai chi lessons, and all the big youth activities and sports like baseball, softball, and soccer.” The district provides over 55 district-produced events, over 1,900 classes and programs annually, including cultural arts, preschool, kids’ camps, senior activities, tennis, pickleball, swim and scuba diving lessons, and a variety of health and wellness classes for youth and adults! PLEASANT VALLEY RECREATION & PARK DISTRICT

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How is Pleasant Valley Recreation & Park District making a difference in the community, especially recently during COVID? “COVID has been a challenge for everybody; there hasn’t been a community that wasn’t hit hard by it over these past two years,” said Pleasant Valley Recreation & Park District General Manager Mary Otten. “During COVID, we stepped up to ensure that our parks were kept open. Parks have been essential during this process as it has given people a sense of normalcy, provided a place to go out to, and has been crucial for mental health.” The district is receiving a share of the COVID relief funds allocated in the 2021-22 State Budget that will be put towards current projects such as playgrounds and a pickleball complex – opportunities that will go right back to the community.

Here’s to another great 60 years ahead!

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LEGAL BRIEF

BUYING, SELLING, AND LEASING PROPERTY

What Special Districts Need to Know About Successful Transactions and the Surplus Land Act By Alex Mog, Of Counsel, Meyers Nave

Whether it is leasing land to expand facilities or selling underutilized property to generate revenue, special districts frequently face the need to acquire, sell, or lease property to implement speciﬁc public service mandates. Such real estate transactions can be complex and require careful planning, detailed documentation and multi-departmental coordination. When considering a real estate deal, there are important legal and practical considerations to keep in mind.

Surplus Land Act The Surplus Land Act, Government Code section 54220 et seq. (“Act”), was substantially amended effective January 1, 2020. The Act requires local agencies, including special districts, to comply with certain requirements when disposing of real property. While the Act itself does not define what it means to dispose of property, the California Department of Housing and Community Development (“HCD”) has adopted guidelines defining the Act to apply to both the sale of property, as well as leasing property for a term of five years or longer. Prior to disposing of any real property, a district’s governing board must declare the property as either “surplus land” or “exempt surplus land.” Exempt surplus land is property that meets at least one of several specific requirements, such as land less than a certain size that is being sold to a contiguous property owner or land that the district is exchanging for another property necessary for the district’s use. Any real property that does not fall into one of these specific categories is considered “surplus land.”

When a district is selling surplus land, it must first send a written “notice of availability” to certain qualifying entities, including park districts with jurisdiction over the area and housing sponsors identified in a list maintained by HCD. The notice of availability must include certain information and be sent using a form published by HCD, which is available on HCD’s website. Any qualifying entity interested in the property has sixty (60) days to notify the district in writing of its interest in purchasing or leasing the property. If a qualifying entity timely notifies the district of its interest in the property, the district is required to enter into “good faith negotiations” with the entity regarding the price and terms for the sale or lease of the property. The Act also specifies how to prioritize responses if multiple entities express interest in the property. Importantly, while the district is required to engage in “good faith negotiations,” a district is not required to sell or lease the property for less than fair market value, nor is a district required to seek a zoning change for the property to ensure that residential development can occur. If no qualifying entity notifies the district of its interest within 60 days of when the notice of availability is sent, or no agreement can be reached after 90 days of good faith negotiations with an interested entity, the district may dispose of the property using whatever process the district deems appropriate. When disposing of surplus property, the Act requires most districts to record a deed restriction on the property requiring any residential development constructed on the land to provide certain levels of affordable housing. Districts are also required to submit records regarding their compliance with the Act to HCD. California Special Districts • March-April 2022

The Act, as well as the guidelines adopted by HCD, contain additional detailed requirements not addressed by this article. Districts that sell property in violation of the Act can be liable for penalties of up to ﬁfty percent of the sale price of the land, and therefore it’s important for Districts to consult with their legal counsel to ensure full compliance with the Act.

Establishing the Price When purchasing, selling or leasing property, a district should generally take steps to ensure that the price reﬂects the fair market value of the property to ensure that public funds are spent in a prudent manner and that the district receives a fair return when selling its assets. This is especially important when the property was originally purchased with rate revenue, or rate revenue is being used for the transaction. Proposition 218 creates restrictions on fees that are imposed as “an incident of property ownership,” such as water and sewer fees. Under Proposition 218, the revenue a district collects from these fees cannot exceed the cost to the district of providing the relevant service and may not be used for any purpose other than providing the relevant service. While the cost of providing a service includes the cost of purchasing or leasing necessary property, paying more than a property’s fair market value arguably is not a cost of providing the service and may violate Proposition 218.

Supporting California Special Districts Since 1980.

Volume 17 • Issue 2

The best way to establish a property’s fair market value is to obtain an appraisal performed by a qualiﬁed appraiser. However, other methods to determine fair market value may be appropriate in certain situations.

Don’t Forget About CEQA Compliance with the California Environmental Quality Act is necessary before a district makes a commitment to carry out a new project. Accordingly, if property is being purchased for a specific project, such as the construction of a new treatment plant, any necessary environmental review for the project must be completed before the district approves purchasing the property. The scope of the necessary environmental review will depend on the nature of the project. There are many other legal and practical considerations to keep in mind when buying, selling, or leasing property, but with careful and detailed planning, districts can ensure successful transactions. Alex Mog is Of Counsel in Meyers Nave’s Oakland office. Meyers Nave is a California law firm that represents special districts throughout the state. For more information contact Alex Mog at amog@meyersnave.com.

Litigation Negotiations Labor Relations Preventative Training Business & Construction Personnel Evaluation Employment Law Wage & Hour Retirement

www.lcwlegal.com

TAKE ACTION

The dawn of spring also signals the commencement of legislative policy committees, which will be hearing the more than 2,000 bills introduced in 2022. They have between now and April 29 to hear and report to fiscal committees any legislation with a fiscal impact. CSDA will be there on behalf of special districts and the communities they serve. Opposition Growing Against Initiative to Limit Revenues for Government Services A growing list of local agencies are adopting resolutions in opposition to Initiative #21-0042A1 entitled, “Limits Ability of Voters and State and Local Governments to Raise Revenues for Government Services. Constitutional Amendment.” CSDA’s Board of Directors adopted an oppose position at its January 2022 meeting. Other statewide organizations in opposition to the proposal include the League of California Cities, California Professional Fireﬁghters, California Alliance for Jobs, SEIU California, and AFSCME California. Initiative #21-0042 is sponsored by the California Business Roundtable, which is seeking to qualify the measure for the November 2022 statewide ballot. Among myriad other provisions, the initiative would limit the fees local agencies may charge from an amount that is reasonably related to the cost of service to the “minimum amount necessary” to deliver the service. The initiative also seeks to impose a higher legal standard on public agencies related to the evidence they must provide to substantiate a fee or charge, from 'a preponderance of the evidence' to 'clear and convincing evidence. These changes alone would invite frivolous lawsuits that will jeopardize vital services, cost taxpayers, and hurt our communities. Special districts can learn more and download a sample resolution and press release at csda.net/take-action.

CSDA Urges Supreme Court to Depublish Decision Affecting Large Public Records Act Requests On February 10, CSDA submitted a letter to the California Supreme Court requesting depublication of the Third District Court of Appeal opinion in Getz v. Superior Court of El Dorado County (C091337). In Getz, the Third District ruled in favor of a public records requester seeking records from the County of El Dorado involving a real estate developer, homeowner’s association, and law ﬁrm. Although the records request produced approximately 47,000 potentially responsive records, the appellate court held that the request was not “overbroad or unduly burdensome” because the County did not provide substantial evidence that 32

the records needed to be reviewed ﬁrst to see if exemptions apply, which the appellate court held it must do before a request could be considered overbroad or unduly burdensome. If left published, this opinion will result in administrative challenges for special districts managing voluminous public records act requests and will make it more diﬃcult to reject or negotiate overbroad or burdensome requests. The CSDA letter, joined by the League of California Cities and California State Association of Counties, argues that the opinion: 1) Mistakes the duty to provide a further response with the improper withholding of disclosable records; 2) Improperly concludes that a failure to provide further response results in the disclosure of records that have not been reviewed for exemptions; 3) Adds requirements for indexes beyond what is required in the law; and 4) Improperly concludes that an agency cannot use administrative burdens to argue a request is unduly burdensome. To read the CSDA letter, visit the Legal Advocacy webpage. CSDA will continue to monitor this case and inform our members if it is depublished. For questions about this case and how it may impact your district, contact CSDA Deputy General Counsel Mustafa Hessabi at mustafah@csda.net.

TAKE ACTION SEASONS OF ADVOCACY: SPRING • ATTEND SPECIAL DISTRICTS LEGISLATIVE DAYS MAY 17-18 IN SACRAMENTO. LEARN MORE AND REGISTER AT LEGISLATIVEDAYS.CSDA.NET. • ENSURE YOUR DISTRICT HAS ADOPTED A POLICY FOR TAKING 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 ON SIGNIFICANT BILLS AFFECTING SPECIAL DISTRICTS. California Special Districts • March-April 2022

AC TRANSIT WINS 2021 PUBLIC OUTREACH AWARD: 2021 AC TRANSIT WINS PUBLIC Nominations Open forOUTREACH AWARD:

2021 CSDA EXCEPTIONAL PUBLIC OUTREACH & ADVOCACY AWARD (LARGE DISTRICT) WINNER!

COMMUNITY CONNECTIONS

Nominations are Now Open for 2022 CSDA Awards! 2022 Awards!

2021 CSDA EXCEPTIONAL PUBLIC OUTREACH & ADVOCACY AWARD (LARGE DISTRICT) WINNER!

Transit’s multiyear community engagement effort to deliver Tempo, the East Bay’s firstever bus rapid transit (BRT) system, has earned the California Special Districts Association’s (CSDA) award for “Exceptional Public Outreach & Advocacy.” This prestigious award is bestowed upon organizations that demonstrate outstanding commitment to, and engagement with, the people they serve. The 2021 award recognizes AC Transit for the extensive public outreach, impressive local hiring, and effective rider communications undertaken during the construction and launch of the Tempo BRT, which continued despite the many challenges posed by the COVID-19 pandemic. During construction of the Tempo BRT, AC Transit’s Public Outreach Team engaged nearly 1,500 residents, businesses and civic groups to offer project updates and answer questions. Team members offered presentations at nearly 440 events reaching hundreds Volume 17 • Issue 2

of thousands of people, and distributed tens of thousands of multilingual notiﬁcations in English, Spanish, Chinese and Vietnamese to keep their diverse community updated on the project’s progress. Moreover, AC Transit partnered with labor unions and local workforce training programs to put people to work – nearly 200 Oakland and San Leandro residents earned $7.8 million in wages while helping to build the BRT! “AC Transit’s steadfast commitment to the people we serve can be seen in the community outreach performed on the Tempo project,” said Elsa Ortiz, AC Transit Board President, as she received the award in Monterey at the CSDA Annual Conference & Exhibitor Showcase. “Countless hands worked tirelessly to make sure that the East Bay’s diverse communities were supported during construction. This is a hard-earned but well-deserved award, and I am grateful that our industry peers recognize the value and importance of authentic community engagement.”

Tempo travels through nearly a dozen distinct neighborhoods, consisting of more than 1,500 businesses and a diverse population of approximately 170,000 people, many of whom are under-resourced and transit dependent. Reduced-emission Tempo coaches traveling in bus-only lanes bypass traﬃc bottlenecks to provide faster, more reliable service where it is needed most. Additionally, millions of dollars have been invested to help make area streets safer for other drivers, pedestrians, and bicyclists. Today, Tempo is making good on its promises of increased frequency and reliability, enhanced accessibility, and improved safety. CSDA’s Annual Conference & Exhibitor Showcase will be held in Palm Desert, CA August 21-25. The Awards presentations are a highlight of the event. Our nomination window is open and submissions must be received by May 2, 2022. To view the categories, and submit a nomination, please visit www.csda.net/awards 33

MANAGERS CORNER

Managing Crises in Today’s 24/7 Communications World By Scott Summerﬁeld and Sheri Benninghoven, APR, Principals, SAE Communications

Special districts that embrace today’s rapidly changing communications environment and plan for diﬃcult situations will increase public trust and conﬁdence in agency decisions.

What issues are we most frequently facing today? Well, for starters: • Pandemic response shifts and public frustration • Year-round natural disasters with no "season" • Public Safety Power Shutoffs that wreak havoc • Cyberattacks that cripple operations • First Amendment “auditors” who seek embarrassing reactions from your staff • Elected officials commenting on social media with unverified information • Public Records Act requests designed to reveal embarrassing exchanges We’re also facing numerous crisis communications barriers, such as managing constant crises that drag organizations into tactics vs. strategy, less experienced

reporters who have dramatically less knowledge of how public agencies operate, and troubling evidence that communicators aren’t at the table from the start of high-exposure issues. Understanding communication trends that are driving public agency responses can help you get ahead of tough situations: • We’re fighting for attention with countless other agencies and companies • Social media drives your story and can lead to viral misinformation that reduces your credibility • Mobile consumption is predominant – desktops are dead Public agency communicators were recently surveyed about their most efficient crisis communications tools. Top external channels included Facebook posts, agency websites, and news releases, followed by community emails and Twitter posts. Top internal resources included all-staff emails, followed by virtual or in-person all-staff meetings. Note that the ongoing work-from-home structure has clearly influenced internal communication. How should your agency prepare for a crisis of confidence or other emergency? California Special Districts • March-April 2022

• Communicate clearly and frequently– in an age of “I want it all now,” stakeholders demand concise and consistent updates • Develop an Emergency Public Information or Crisis Communications Plan – your most important tool, but must be created before a crisis… not during • Focus on your team – create an internal communications team before your next crisis; this resource will be the hub of your internal and external response • Identify and train multiple spokespersons – a single spokesperson may be sufficient day-to-day, but you’ll be overwhelmed when the media descends • Relationships matter – crises rarely involve just one department. A strong relationship between HR, legal, finance, communications and others will ensure your response benefits from a range of viewpoints • Work on your communications systems – during crises, you can’t redesign your website, create a graphic design team, develop a video storytelling unit, craft a resident newsletter, or build a key contacts database • Foster a culture of messaging – key messages are

how you ensure that your entire agency communicates consistently with the most important content • Use fewer words and more images – don’t fight limited attention spans; use fewer words, more graphics, more photos, and more video • Acknowledge unknowns – empathy is critical yet often missing, saying “we don’t know” is OK, recognize fears, respect emotions • Avoid guesses about duration – the pandemic has reinforced the notion that we often can’t predict how long a challenging situation will last • Stay flexible and accessible – your crisis will evolve and you have a responsibility to stay connected with the media, the public, and your staff; this commitment reduces rumors, misinformation, and mistrust The past couple of years have highlighted public agency resiliency in ways that were previously unimaginable. Good communication is an essential part of crisis response, and a thoughtful, strategic approach now will give you a solid foundation when you need it most. SAE Communications provides public agency strategic and crisis

communications planning, response, and training. More information is available at www.saecommunications.com

• DISTRICT GENERAL COUNSEL • LABOR AND EMPLOYMENT • HUMAN RESOURCES • COLLECTIVE BARGAINING • UTILITY RATE SETTING • PROPOSITIONS 218 AND 26 • PUBLIC CONTRACTING • TORT LIABILITY DEFENSE • PREMISES LIABILITY • LITIGATION

760.322.2275 | sbemp.com SAN DI EG O

Volume 17 • Issue 2

COSTA MESA

PA LM S PR I NG S

I NDI A N W E LLS

NE W JE R S E Y

N EW YO RK

SDLF TRANSPARENCY CHALLENGE: DISTRICT SPOTLIGHT

District Spotlight

THE SPECIAL DISTRICT LEADERSHIP FOUNDATION RECOGNIZES

Herlong Public Utility District

Share your experience completing the Transparency Challenge. (What did you learn about your district? How difficult was the application process?) When this SDLF Transparency Challenge came out, I was fairly new to the Herlong Public Utility District. I thought to myself what better way to learn about the district I work for, let alone special districts in general! The process was not diﬃcult; it took me roughly eight months to gather all the information. During that time, I learned things that the district hadn’t done yet and put them into place, like searchable/ readable agendas and updating our policies uploaded onto the website. With the assistance of this challenge, I feel the district is now more “transparent” than before with website requirements, speciﬁcally.

Why was completing the challenge important to your district? The district last received this award in 2014. Primarily due to personnel changes within the district the last few years, it was important to show our board of directors and the public that the Herlong Public Utility District is still moving forward and improving every day.

Now that you have earned your SDLF Transparency Certificate, how will you use the recognition to highlight your district’s accomplishment to your customers, constituents, and/or other stakeholders? Herlong Public Utility District Staﬀ and Board of Directors will proudly display the accomplishment on the district website, conference room, and in our monthly newsletter. As a team, we are striving towards our District of Distinction Accreditation in 2022.

About Herlong Public Utility District The Herlong Public Utility District was formed on February 14, 2008, by the Lassen County Local Formation Commission under the Public Utility District Act (CA PUC Code 15501 - 18055). Herlong Public Utility District’s mission is to provide safe drinking water that meets or exceeds all of the State and Federal Government standards; maintain a water reclamation plant that disposes of wastes in an eﬀective and eﬃcient manner and produces reclaimed water. The district provides these services as economically as possible. For more information, visit www.herlongpud.com.

It is now more important than ever for local governments (including special districts) to be open and accessible to the public. The Special District Leadership Foundation’s Transparency Challenge showcases the many steps districts take to show they are available and transparent to their constituents and customers. 36

California Special Districts • March-April 2022

THE SPECIAL DISTRICT LEADERSHIP FOUNDATION RECOGNIZES

Rio Linda Elverta Recreation and Parks District Share your experience completing the Transparency Challenge. (What did you learn about your district? How difficult was the application process?)

This was the second time that I have been the lead person in completing the SDLF Transparency application for Rio Linda Elverta Recreation and Parks District. It was much easier to complete the application this time around because of our new website platform, which makes it easier to find the necessary items needed to demonstrate our transparency. Also, a lot of the information was more readily accessible as our district kept it up to date since the first time we completed our application. We did learn that our district is very transparent as we were able to offer answers for over 90% of the requested requirements on the application.

Why was completing the challenge important to your district? Completing the challenge has been important to Rio Linda Elverta Recreation and Parks District for many years. It gives the district a sense of pride to know that we are up-to-date and readily able to produce our documents for any of our residents. Also, it was a priority made by our board of directors when I ﬁrst started working for the district. This priority was accomplished and keeping it up to date has become part of our daily responsibilities. Completing the challenge gives our district board and staﬀ a sense of pride.

Volume 17 • Issue 2

Now that you have earned your SDLF Transparency Certificate, how will you use the recognition to highlight your district’s accomplishment to your customers, constituents, and/or other stakeholders? Rio Linda Elverta Recreation and Parks District will show this recognition through our website as well as display our certiﬁcates in our building for visitors to see. We send out a press release to our stakeholders and we are discussing the possibility of advertising our SDLF Transparency Certiﬁcate within our activity guide production.

About Rio Linda Elverta Recreation and Parks District The Rio Linda Recreation and Parks District hosts many exciting programs, events, and classes for the entire family. In addition, the district provides great open spaces, parks, and facilities for community use. The Rio Linda and Elverta communities are fortunate to be surrounded by tremendous park and recreation amenities for their enjoyment. The Rio Linda Elverta Recreation and Parks District is proud to be part of such a vibrant and unique geographic area not only in the North Sacramento area but the nation.

MANAGING RISK

Cyber Crimes and How to Improve Your Chances of Not Being a Victim By Debbie Yokota, AIC, ARM, Chief Risk Oﬃcer, Special District Risk Management Authority

he idea of “computer crime” is not what it used to be. For decades most computer crimes occurred by a hacker cracking into a computer network to complete an unauthorized transfer of funds. Today, one of the most prevalent threats is more direct. Thieves now masquerade as a senior executive, vendor or other trusted associate of a company – tricking an employee into handing over company assets. This commercial crime exposure is not one that can be addressed simply with state-of-the-art network security, like the computer hacking crimes of the past. Cyber criminals prey on human nature – using trust, an air of authority, and an employee’s desire to please the boss or customer to their advantage.

The Threat The abundance of information available on LinkedIn, Facebook and other social media makes it easier than ever for criminals to collect personal information on executives and employees, so they can use it to convincingly perpetrate this fraud. Often, criminals will begin testing the waters with small amounts of money, moving to larger amounts as no alarm bells ring at a company and the scheme progresses. More often than not, fraudulent instructions direct the victim to send funds to an overseas account or by Automated Clearing House (ACH) – which can make recovering lost assets diﬃcult, if not impossible. We have seen government agencies who receive an email 38

from an employee at another government agency asking them to send monthly funds by ACH to a new bank account. Later it is discovered that the email did not come from a government employee but was cloned to look like it did. Most banks have no way of recovering ACH funds after 48 hours (domestically) or 72 hours (internationally) once the funds are withdrawn from that bank account.

Addressing the Risk Combating this online, one-on-one deception can be difficult. The first line of defense for every agency is its employees who should be actively trained to understand and identify these schemes. Agencies should also have prudent verification processes in place, such as requiring out of band authentication of a request before funds are transferred. Out of band authentication (OOBA) is a term for a process where authentication requires two different signals from two different networks or channels. This type of sophisticated authentication prevents many kinds of fraud and hacking. Out-of-band authentication will effectively block many of the most common kinds of hacking and identity theft in online banking.

Ransomware Attacks on the Increase Ransomware matters surged in 2019, with the primary tactic being to simultaneously encrypt as many devices as possible within a network. Then, groups started to steal data before encrypting ﬁles, which aﬀorded the threat actor two California Special Districts • March-April 2022

pressure points (data encryption and data theft/threat of publication) to leverage a ransom payment even if the organization successfully restored their systems through available backups. This new tactic paid oﬀ signiﬁcantly in 2019, prompting other threat groups to begin adopting similar tactics in 2020. Ransom demands, unfortunately, increased exponentially. See Figure 1 below.

Addressing Ransomware Attacks Most agencies are aware of the risk of ransomware and the need to prepare for an attack. But agencies that have not experienced a ransomware event are uncertain about what actually occurs, which hinders preparation. The ﬁrst thing an agency should do is keep their software and operating systems updated. Make sure your employees turn on automatic updates when possible. Also be sure to install software to scan your system for viruses and malware, to catch anything that might get through.

Volume 17 • Issue 2

Ensure that your employees are using strong, unique passwords and change them often. A password manager program can help you create and remember complex, secure passwords. Whenever you have the option, enable multifactor authentication, particularly for crucial log-ins like bank and credit card accounts. You should also consider getting a physical digital key that can connect your computer or smartphone as an even more advanced level of protection. Most of us receive thousands of junk emails after purchasing items online. Have you ever received an email and clicked on the “unsubscribe” button? This is another tactic that criminals use to hack into your computer or other device.

Cybersecurity Challenges of a Work from Home/Hybrid Environment Agencies across the country scrambled in the spring of 2020 to enable remote work in an eﬀort to

keep their employees working during the pandemic. In the haze of that initial move to a remote environment, shortcuts were taken and unfortunate events occurred. For instance, IT teams plugged in unpatched appliances, resources were diverted from threat monitoring, and organizations across the country found unexpected security gaps. Additionally, the pandemic’s impact on an organization’s ﬁnances, personnel, and shifting priorities further redirected attention away from its security roadmap. As a result, unexpected vulnerabilities existed, and security events were not discovered as quickly. Additionally, where employees are working remotely from their own homes, there are often added distractions. Employees may have to balance work with children or pets who are also in the home, try to perform routine household chores during the workday, or even get distracted by having television continued on page 40

MANAGING RISK

and other personal electronics at their disposal. Children with access to an open computer connection could inadvertently cause a security incident. Such distractions can add to a risk proﬁle for falling prey to phishing attacks. Employees should be reminded of these issues through training or handy guidelines issued for remote users.

Ways to Improve Working From Home Companies should have a protocol in place for secured remote access to company networks. Where possible, such connections should be through a virtual private network (VPN), which routes the connections through the company’s private network, or another encrypted connection mechanism. Where employees can remotely access sensitive information on the network, VPNs should be configured with multifactor authentication (MFA) as an added security layer. With MFA enabled, even if an employee’s VPN credentials are compromised, an unauthorized actor will be unable to connect through the VPN without a second factor (i.e., a code sent to an individual’s smartphone, token, biometric verification, etc.). Personal devices are more likely to be used when employees are working remotely, and such use presents additional cybersecurity risks given the lack of corporate control over the devices. Where mobile devices (i.e., mobile phone, tablets, laptops, etc.) are permitted to connect to the corporate network, companies should ensure those devices are equipped with mobile device management (MDM) software. MDM software allows the corporate IT Department to manage such devices by ensuring that the devices are configured to consistent standards, scheduling updates and patches for the devices and applications contained thereon, tracking location of devices, and – in circumstances where such devices are lost or stolen – permitting the devices to be remotely wiped.

No Easy Answers Unfortunately, addressing cybersecurity risk is an always evolving effort – to stay one step ahead of sophisticated threat actors is challenging. However, an organization that invests time and resources to develop plans and take deliberate actions to implement them will find itself ahead of the curve and well positioned to facilitate an efficient incident response. This process starts with an effective risk assessment – understanding who is likely to target the organization; what gaps exist in controls that may detect, prevent, or limit an attack; and which of these threat/gap combinations is most likely to lead to a significant incident if not addressed. From that baseline, an organization should assess and test its incident response plans and take an honest look at its cybersecurity roadmap to understand and implement appropriate measures and controls to help mitigate prioritized risks. Training of employees is also important. Training should address the increased risk of phishing attacks and other social engineering schemes. In addition to the steps discussed above, employees should be trained not to click on links from any source, even known sources. Cyber criminals are very sophisticated and can send an email that looks like it is from a known vendor, bank or credit card company. Instead of clicking on the link in the email, employees should go to that company’s website to make any changes to the account or review any information being sent by that company. Employees should also report any suspicious emails to the IT department. Regardless of the efforts of the company and the sophisticated security measures put in place to create a safe environment for remote workers, the risk of human error will always exist but keeping these safety protocols in place can help your agency not be a victim of a cyber crime.

SDRMA Board and Staff Officers

Staff

MIKE SCHEAFER, PRESIDENT Costa Mesa Sanitary District

LAURA S. GILL, ARM, ARM-P, CSDM, Chief Executive Officer ELLEN DOUGHTY, ARM, Chief Member Services Officer DEBBIE YOKOTA, AIC, ARM, Chief Risk Officer JENNIFER CHILTON, CPA, ARM, Chief Financial Officer WENDY TUCKER, AU, Member Services Manager ALANA LITTLE, Health Benefits Manager HENRI CASTRO, CSP, Safety/Loss Prevention Manager DANNY PENA, Senior Claims Examiner HEIDI SINGER, Claims Examiner II 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 TIM UNRUH, CSDM, Kern County Mosquito & Vector Control District JESSE CLAYPOOL, Honey Lake Valley Resource Conservation District THOMAS WRIGHT, Clovis Veterans Memorial District

Consultants JAMES MARTA, CPA, James Marta & Company, LLP LAUREN BRANT, Public Financial Management DEREK BURKHALTER, Bickmore Actuarial

MICHELLE LAVELLE-BROWN, Health Beneﬁts Specialist II TERESA GUILLEN, Member Services Specialist II MARGARITO CRUZ, Accountant CANDICE RICHARDSON, Member Services Specialist I RYAN CORP, Accounting Technician

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.

SPECIAL DISTRICT RISK MANAGEMENT AUTHORITY 1112 I STREET, SUITE 300, SACRAMENTO, CA 95814 TEL: 800.537.7790 • WWW.SDRMA.ORG

California Special Districts • March-April 2022

SOLUTIONS AND INNOVATIONS

BEACON PROGRAM CELEBRATES SPECIAL DISTRICTS AS SUSTAINABILITY LEADERS By Nikita Sinha, Program Manager, Institute for Local Government

ith heightened regulations and scrutiny coming from the state, it is becoming more important for special districts to demonstrate their proactive efforts and leadership around environmental stewardship. Providing local water, wastewater, transportation, electric and other public services while confronting climate impacts, community concerns and economic challenges is becoming increasingly difficult. To assist districts in this challenge, the Institute for Local Government (ILG) is proud to open nominations for the Beacon Awards Program to special districts for the second year. For over a decade, the Beacon Program has helped local agencies understand the actions they can take that are aimed at reducing emissions, saving energy and building resilience. By becoming a participant in ILG’s year-round Beacon Program, special districts gain access to best practices, peer-to-peer learning opportunities, technical assistance in obtaining grant funding, and other resources to help them become more economically and environmentally sustainable. In addition to the year-round support, special districts can also apply for Beacon Awards which allow them to earn award recognition that demonstrates their environmental leadership and financial stewardship to a statewide audience. As a smaller special district, Citrus Heights Water District (CHWD) was drawn to the Beacon Program for the resources and support the program offered. CHWD joined Beacon in 2021, becoming the second special district ever to join the program. CHWD’s water efficiency programs are key to the district’s goal of delivering safe, dependable, and clean water to the community. Throughout the year, CHWD offers WaterSmart classes, free landscape irrigation reviews, and several rebates and programs to help its customers reduce water use and save money. Programs are designed to educate customers on practical water conservation resources. With a staff of just 36 employees, CHWD aims to serve customers more efficiently and in a way that benefits the community. The agency expanded its public engagement efforts after an increase in interest and demand for water efficiency programs. CHWD joined Beacon to further expand their sustainability and engagement efforts and promote best practices in water use to customers. “We want to utilize all the great resources we can get in order to benefit customers.” says Lea Park-Kim, Volume 17 • Issue 2

communications and public engagement manager at Citrus Heights Water District. “Our ultimate goal is to provide safe, clean, and dependable water to our customers in a way that’s good for our customers, community, and the world. Being part of the Beacon Program provides Citrus Heights Water District with more tools to beneﬁt our customers.“

Apply for a 2022 Beacon Award! The Institute for Local Government was eager to open the Beacon Program to special districts in 2021. Now for the second year, special districts can apply for Leadership and Innovation Awards, which celebrate the eﬀorts of local governments to implement collaborative, inclusive, and equitable climate resilience and adaptation programs in their communities. Special districts can submit an innovative project, program, plan, or policy their agency has implemented for Leadership and Innovation award consideration in the following categories: • Leadership in Climate Resilience and Adaptation • Equity and Engagement in Climate Resilience and Adaptation • Cross-Agency Collaboration in Climate Resilience and Adaptation • Innovation in Energy • Innovation in Clean Transportation The awards nomination/application deadline is May 2, 2022. Applicants do not need to be year-round Beacon Program participants. Award winners will be celebrated in front of a statewide audience at the annual Beacon Awards Ceremony and the CSDA Annual Conference & Exhibitor Showcase. Learn more and apply to join and/or be recognized at ca-ilg.org/ beacon-program. For questions, contact Nikita Sinha at nsinha@ca-ilg.org About ILG

The Institute for Local Government (ILG) helps local government officials and staff navigate the constantly changing landscape of their jobs by offering training, technical assistance, written resources, and facilitation services specifically designed for cities, counties and special districts. From leadership to public engagement to housing and workforce, ILG helps local leaders with a wide range of issues. ILG is a non-profit and non-partisan organization and a special affiliate of CSDA. Visit www. ca-ilg.org to find out more.

MONEY MATTERS

NEW CALPERS FOCUS ON SOCIAL SECURITY COVERAGE FOR PUBLIC AGENCY EMPLOYEES By Nancy G. Hilu, Edward M. Bernard, Hanson Bridgett LLP

ocial Security coverage rules for state and local government employees are complex, leaving special districts the daunting task of sorting out which employees are covered by the federal system and then properly withholding and reporting Social Security taxes for them. Adding to these challenges, CalPERS, the appointed Social Security Administrator for the State of California, has recently begun questioning public agencies about Social Security coverage issues based on information provided in the Annual Information Request (AIR) that public agencies are required to complete each year. If left unresolved, the uncovered noncompliance issues can lead to adverse tax consequences or loss of Social Security beneﬁts. What follows are a few best practices that can help employers avoid these negative outcomes.

Public Employee Social Security Coverage Basics About a quarter of all state and local government employees participate in a public retirement system instead of Social Security. Public agencies that offer a retirement system and provide Social Security coverage to its retirement systemeligible employees in addition to their public retirement system benefits must do so through a modification to the State of California’s Section 218 Agreement with the Social Security Administration (SSA).

CalPERS’ Role and the Annual Information Request As the California State Social Security Administrator, CalPERS performs a number of functions including management of the 218 Agreement modiﬁcation process. CalPERS is also responsible for collecting information required by SSA from California public agencies. CalPERS uses the AIR to compile data about a public agency’s Social Security or Medicare tax withholding and reporting practices for the SSA. All California public agencies must submit an AIR form to CalPERS annually, regardless of Social Security coverage.

Commonly Identified Social Security Coverage Issues Recently, CalPERS began questioning public agencies about Social Security coverage issues based on information provided in their AIRs. Common errors discovered by CalPERS during their examinations include: • Failure to withhold Social Security tax for rehired annuitants when required to do so under a Section 218 Agreement. 42

• Withholding Social Security tax based solely on agreement in an MOU to provide Social Security coverage (i.e., Section 218 Agreement modification is not obtained). • Component of a city or county becomes a separate special district and continues the city or county’s Social Security and Medicare tax withholding and reporting practices without obtaining its own Social Security coverage through a Section 218 Agreement modification. • Failure to obtain a Section 218 Agreement modification after the merger of two or more government agencies.

Potential Consequences Not only is the additional CalPERS scrutiny unnerving, if any Social Security coverage issues discovered by CalPERS during its investigation are not resolved, it can potentially lead to a number of significant adverse consequences for the public agency and its employees, including: • Referral to the IRS for an employment tax audit – If Social Security tax was withheld without a Section 218 Agreement modification and the district fails to take corrective action, the IRS may refund the Social Security taxes it paid for open tax years. • Loss of Social Security coverage – If a special district fails to obtain a Section 218 Agreement modification after withholding and reporting Social Security taxes without one, the SSA may deny Social Security credits for service with the district. • Windfall Elimination Provision (WEP) – Unless an exception applies, Social Security benefits for employees who have also worked in the private sector may be reduced if they earn a pension for public-sector work not covered by Social Security. • Denial of Social Security disability benefits – If Social Security tax was withheld without a 218 Agreement modification and the district fails to obtain one, employees who continue to be employed with the district and become disabled may be denied Social Security Disability benefits. • Potential litigation for improper wage withholding or denied benefits – If Social Security tax is improperly withheld from employees’ wages or Social Security benefits are reduced or denied as a result of a district’s failure to timely obtain a Section 218 Agreement modification, employees or former employees may sue the district to make them whole.

California Special Districts • March-April 2022

Best Practices Given the potential adverse consequences associated with Social Security coverage errors, special districts may wish to consider taking the following best practices: • Determine whether they are withholding Social Security taxes for employees covered by a retirement system. • If withholding Social Security taxes for employees covered by a retirement system, confirm those employees are covered by a Section 218 Agreement modification. A special district can confirm this by registering for a MyCalPERS account to obtain a copy of its Section 218 Agreement modification or, alternatively, by requesting a copy from the CalPERS State Social Security Administrator division. • Review the modification and work with human resources and payroll to ensure the district’s Section 218 Agreement modification is being administered properly. • If the district determines Social Security taxes are being withheld for retirement-system eligible employees without a Section 218 Agreement modification or with one that doesn’t

CSDAFC Board and Staff Officers JO MACKENZIE, PRESIDENT, Vista Irrigation District VINCE FERRANTE, VICE PRESIDENT, Moss Landing Harbor District ARLENE SCHAFER, SECRETARY, Costa Mesa Sanitary District GLENN LAZOF, TREASURER, Regional Government Services Authority

Members of the Board GEORGE EMERSON, Goleta Sanitary District PAUL HUGHES, CSDM, South Tahoe Public Utilities District MATTHEW MCCUE, Coachella Valley Cemetery District

Consultants RICK BRANDIS, Brandis Tallman, a Division of Oppenheimer & Co. Inc. WILLIAM MORTON, Municipal Finance Corporation ALBERT REYES, Kutak Rock LLP NICOLE TALLMAN, Brandis Tallman, a Division of Oppenheimer & Co. Inc.

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

CSDA FINANCE CORPORATION 1112 I STREET, SUITE 200, SACRAMENTO, CA 95814 TEL: 877.924.2732 • WWW.CSDAFINANCE.NET CSDA F C

Volume 17 • Issue 2

cover those employees, work with CalPERS to initiate the modification process. The process is extensive, may require the district to successfully conduct an employee referendum, and can easily take between twelve and eighteen months to complete. Depending on the extent of coverage being sought (i.e., retroactive to the date of error, a specific number of years or prospective), there are a number of modification options. In conclusion, the Social Security coverage rules for public agencies are quite complex and can be overwhelming to navigate. Special districts may benefit from consulting with tax or benefits counsel to assist in assessing compliance with the Social Security rules and identifying options to correct any noncompliance issues. For more information about how to approach Social Security coverage issues, please contact Nancy Hilu at nhilu@hansonbridgett.com or Edward Bernard at ebernard@hansonbridgett.com.

McKinleyville CSD Accesses Essential Project Financing Through CSDAFC McKinleyville Community Services District (MCSD) in Humboldt County has over 6,700 active water customers with a projected growth rate of four percent per year. The district purchases its wholesale supply from the Humboldt Bay Municipal Water District (HBMWD). Last year, the district reached out to the CSDA Finance Corporation to help with funding improvements to the district’s water system and wastewater system. The project would add a new 4.5 million gallon water storage tank to the existing system, with the goal of increasing storage capacity to enhance resiliency during emergency events - such as significant seismic activity - if supply from HBMWD was interrupted. With the assistance of a team of experts from the CSDA Finance Corporation, including Oppenheimer & Co. Inc. as underwriter and Kutak Rock LLP as bond counsel, MCSD accessed $7.9 million in taxexempt financing with 30-year water/wastewater revenue COPs at a true interest cost of 2.76 percent. Patrick Kaspari, general manager of MCSD, had this to say: “The CSDA Finance Corporation consultants were amazing. Every member of the team was extremely knowledgeable and provide clear recommendations and direction. They were a great team to work with and they were able to get a fantastic rate for the district’s financing!” To learn more about your district’s financing options, contact CSDA Finance Corporation at 877.924.2732 or visit www.csdafinance.net. 43

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Volume 17 • Issue 2

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 people 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, fact sheets, and other materials that can be easily downloaded.

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California Special Districts • March-April 2022

Steady as you go.

When your team and ours all pull together, you get the sure-footed stability you need to proceed with confidence. As an extension of your staff, we are always at the sidelines delivering service and expertise. For everything from Workers’ Compensation and Property/Liability coverages to Health Benefits options available throughout California, we are here to keep you going strong. For more information, visit sdrma.org.

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2022 CA Special District March - April

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