California Special District

CA SPECIAL

DISTRICT Publication of the California Special Districts Association

Volume 12, Issue 4, July - August 2017

annual conference 2017 CSDA Annual Conference and Exhibitor Showcase

For 75 years, Nossaman has partnered with public, private, and governmental agencies to provide a unique perspective on the law.

Nossaman is a full service public agency law firm based in California, proudly serving as CSDA's Bond Counsel, and also providing counsel to special districts in areas such as Public Finance, Public Agency Law, Water, Environmental, Land Use, Infrastructure, Employment, Insurance Recovery, Public Policy, and Eminent Domain.

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Volume 12, Issue 4 • July - August 2017

Contents

keynote speakers

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Building the Momentum Moving to Great Mindset or The Art of Interview with the Restart Eric Boles

By Manley Feinberg

4 President’s Message Meet You in Monterey 5 Professional Development Upcoming Board Secretary/Clerk Conference Highlights; Professional Development Calendar 6 CSDA News CSDA Annual Conference & Exhibitor Showcase Gets Fresh Update; Two Optional Pre-Conference Workshops; Two Pre-Conference Tour Options

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Solutions & Innovations Equitable Adaptation: Climate Strategies for All

8 Grassroots Action Update Budget Act of 2017; Take Action; Special Districts Legislative Days Recap 10 Ask the Experts Make Your Public Meetings More Effective 13

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What’s so Special Wingin’ It with Monterey Peninsula Airport District

26 Community Connections Full Court Press: A Media Crash Course 34 Legal Brief The Rule Against Gifts of Public Funds 38 Managing Risk Summer Exposures

Movers and Shakers

14 In Brief Sanitation District Reaches Milestone with California Coastal Commission Permit Approval; Wettest Year on Record for Northern California; Students Recognized by Water District in 2017 Poster Contest; Top 10 Tips for WaterSmart Living this Summer

40 Money Matters GASB Statements 74 & 75: What You Really Need to Know

Printed on recycled paper.

California Special District – July-August 2017

CA SPECIAL

DISTRICT © 2017. California Special Districts Association.

All rights reserved.

Officers Vincent Ferrante, President Moss Landing Harbor District

president’s message

Greg Orsini, Vice President McKinleyville Community Services District Arlene Schafer, Secretary Costa Mesa Sanitary District Joel Bauer, SDA, Treasurer West Side Cemetery District William Nelson, Past President Orange County Cemetery District

Members of the Board Stanley Caldwell, Mt. View Sanitary District Ryan Clausnitzer, Alameda County Mosquito Abatement District Ralph Emerson, Garberville Sanitary District Jeff Hodge, Santa Ynez Community Services District Peter Kampa, SDA, Saddle Creek Community Services District Jo MacKenzie, Vista Irrigation District Elaine Magner, Pleasant Valley Recreation & Park District Noelle Mattock, El Dorado Hills Community Services District Sandi Miller, SDA, Selma Cemetery District Ginger Root, Country Club Sanitary District Timothy Ruiz, P.E., East Niles Community Services District Fred Ryness, Burney Water District

CSDA Staff Neil McCormick, Chief Executive Officer Megan Hemming, Professional Development Director Cathrine Lemaire, Member Services Director Kyle Packham, Advocacy & Public Affairs Director Todd Winslow, Publications Director Rick Wood, Finance & Administration Director Emily Cha, Professional Development Coordinator Marcus Detwiler, Legislative Assistant Rylan Gervase, Legislative Representative Dillon Gibbons, Legislative Representative Abi Hague, Receptionist Colleen Haley, Public Affairs Field Coordinator Mustafa Hessabi, Legislative Analyst Beth Hummel, Executive Assistant Christina Lokke, Senior Legislative Representative Charlotte Lowe, Editor, Communications Specialist Steven Nascimento, Public Affairs Field Coordinator Anna Palmer, Member Services Specialist Chris Palmer, Public Affairs Field Coordinator Marina Servantez, Staff Assistant Tatiana Stewart, Public Affairs Specialist Cassandra Strawn, Member Services Specialist Dane Wadlé, Public Affairs Field Coordinator James Wilfong, Senior Designer For editorial inquiries, contact Charlotte Lowe at 877.924.2732 or charlottel@csda.net.

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

Meet You in Monterey!

W

elcome to the CSDA Annual Conference & Exhibitor Showcase preview issue of California Special District.

Stay tuned for content related to keynote and breakout sessions offered this year during the event, held September 25-28 at the Monterey Marriott. You can also check out the full schedule of speakers, topics, and networking opportunities at www. conference.csda.net.

As your CSDA Board President this year, and as a Monterey native, the upcoming Annual Conference holds a special place in my heart. My grandfather, Vincenzo Ferrante, immigrated to the United States from Sicily in 1898 as a fisherman to make a better life for himself. After fishing along the Sacramento River, he moved to Monterey to start fishing in the bay. My grandmother, Josephine Teresa, arrived in Monterey in 1901 with a visa for only a short stay in the United States. My grandparents were introduced by a mutual friend and after a brief courtship, became husband and wife. They went on the have six children – a very large and loving Sicilian family.

Raising a family during the Depression was a challenge. My grandfather provided for his family by fishing, but one of his favorite things to do was to make wine. He was known in the Monterey area as a fine winemaker and he enjoyed sharing it with family and friends.

1112 I Street, Suite 200 Sacramento, CA 95814 t: 916.442.7887 f: 916.442.7889 toll-free: 877.924.2732 www.csda.net A proud California Special Districts Alliance partner

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Vince Ferrante

I reflect fondly on my early days in Monterey and the beautiful Monterey Peninsula, growing up behind what is now the Portola Hotel and Spa on Pacific Street.

The only remaining landmark from those days is a two-hour parking sign. Growing up in Monterey, the major source of revenue for the community was the fishing, along with agriculture in Salinas Valley. Today the main source of revenue is tourism, supported by the hospitality industry.

Agriculture and wine making continues to be a driving force throughout the Salinas Valley. Enjoy your stay in Monterey and try to visit some of the wonderful sites that draw people from around the world. This is your opportunity to enjoy our slice of paradise.

In addition to its rich history and the beautiful sights and sounds the area has to offer, the Annual Conference will be packed full of invaluable networking and educational opportunities. From mingling with other special district leaders across the state, interacting with knowledgeable service providers in our Exhibit Hall, attending informative and engaging keynote presentations, and the variety of breakout session options for both staff and board members – the CSDA Annual Conference & Exhibitor Showcase is THE leadership conference for special districts.

So, join us in Monterey this year! I can’t wait to meet you and hope you enjoy the area and conference as much as I do.

Highlight

Upcoming Board Secretary/Clerk Conference Highlights In these tumultuous times, boards of special districts find it harder than ever to discuss their challenging issues and serve their stakeholders. A smoothfunctioning board makes all the difference for effective decision making. In her opening keynote session, “How to Strengthen Your Board’s Decision-Making Process” Ann Macfarlane, PRP, will help attendees at the upcoming Board Secretary / Clerk Conference, October 22-24 in Anaheim, learn the little-known guidelines and tips that will improve discussion at meetings a thousand percent. Surprising secrets from Robert’s Rules of Order and the latest findings in emotional intelligence will give you practical insights to power up your meetings and produce the best possible decisions for your district.

Board Secretary/Clerk Conference attendees will have the option to attendee the first-time attendee track and earn their certificate or participate in even more advanced sessions for returning attendees. Scheduled advanced sessions include: An Update from the FPPC, Meeting Automation Costs, Logistics and Features, Policy and Procedure Writing, The Role of the Clerk and Meeting Minutes, Handling the Heat – Managing a Public Hearing, and more. Save $50 by registering on or before the September 21 at csda.net

BOARD SECRETARY/CLERK October 22-24 in Anaheim

California Special District – July-August 2017

August August 9

WORKSHOP

HR Boot Camp for Special Districts, Vallejo

August 10

WORKSHOP

Financial Management for Special Districts, Vallejo

August 15

WORKSHOP

The Art of the Message, Sacramento

August 16

WORKSHOP

Understanding the Brown Act, Bakersfield

August 17

WEBINAR

Fraud Environment – Tips for Detection and Control

August 22

WEBINAR

Customer Service in the Public Sector

August 23

WORKSHOP

Understanding the Brown Act, Oroville

August 24

WORKSHOP

Staying in Compliance: Understanding Special District Laws, Port Hueneme

August 30

WORKSHOP

Understanding the Brown Act, Avila Beach

August 31

WEBINAR

Legislative Round-Up

September Sept 1

WEBINAR

Maximize Your Membership – Online Resources

Sept 6

WORKSHOP

Understanding the Brown Act, Palm Desert

Sept 25-28

CONFERENCE

2017 Annual Conference & Exhibitor Showcase, Monterey

CSDA NEWS Conference attendees may choose to register for one of two optional pre-conference workshops: Special District Leadership Academy Module 1: Governance Foundations – As the core curriculum of CSDA’s Special District Leadership Academy, this workshop serves as the “foundation” for the series on effective governance of special districts. $225 CSDA Member, $340 Non-member

annual conference 2017 CSDA Annual Conference and Exhibitor Showcase September 25-28, 2017 • Monterey, California

Building Your District Strong - Principles for Sustained Success – This workshop will systematically examine each area of building a strong district from the foundation to the top level, optimized best practices. $150 CSDA Member, $225 Non-member Special District Administrator (SDA) Certification Exam, administered by the Special District Leadership Foundation.

This exam must be scheduled prior to the conference.

There are also two pre-conference tour options, which require separate registration fees: Elk Horn Slough Safari ™ and Moss Landing Harbor District Tour – This two-hour boat cruises include an indepth look at various aspects of slough ecology, fascinating history, and birding in the company of a naturalist guide. $60 per person, includes transportation to/from the hotel and light snacks. Limited to 24 attendees, early registration is encouraged!

CSDA Annual Conference & Exhibitor Showcase Gets Fresh Update Join Us for These Pre-Conference Program Events The CSDA Annual Conference & Exhibitor Showcase coming September 25-28 to Monterey is getting a fresh new update. It all starts on our pre-conference day – Monday, September 25.

The CSDA Annual Golf Tournament will be replaced with the Special District Leadership Foundation (SDLF) Scramble for Scholarships at Del Monte Golf Course. In addition to a new shotgun start, this tournament will have a renewed focus on fun and fundraising! Proceeds will go directly to fund scholarships for special district officials and staff through SDLF. Cost is $115 which includes golf with cart, lunch, and prizes!

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Monterey Regional Airport District – Get a tour of Monterey Regional Airport and briefing on projects and initiatives.

Monterey Airport (MRY) a 498 acre is a “NonHub” airport created in 1941. $50 per person, includes transportation to/from hotel and lunch.

Limited to 45 attendees, early registration is encouraged!

Finally, we will continue our Monday conference refresh by moving the Chapter Roundtable Discussion from Thursday morning to Monday afternoon just prior to the District Network Meetings. All registered conference attendees are welcome to attend both meetings. Conference officially begins on Monday, September 25 at 5:30 p.m. with our President’s Reception with the Exhibitors and ends at an earlier time – 10:30 a.m. on Thursday, September 29. Check your mail for the full conference brochure and register online at csda.net.

update

On June 15, the California State Legislature passed the Budget Act of 2017 (AB 97), which outlines the spending of $183.2 billion for 2018.

Important budget trailer bills were also pushed through with the Budget Act. Trailer bills impacting special districts include: SB 104 Union Orientation

This budget trailer bill requires public employers to provide union representatives with mandatory access to new employee orientations. The structure, time, and manner of the unions’ access shall be determined through an agreement process between the employer and the union.

SB 96 Public Works

This trailer bill is intended to revamp the public works contractor registration program. In a concession to public agencies, the Department’s proposal exempts projects under $25,000 and under $15,000 for maintenance projects from the requirements of the registration program. However, public agencies could face up to a $10,000 fine for using unregistered contractors when required.

While the budget has been passed, there are several CSDA priority bills still making their way through the legislature: AB 979 (Lackey) is a CSDA sponsored

bill that ensures special districts are afforded an efficient, local process for gaining representation on their local agency formation commission (LAFCO).

Representation on LAFCO empowers special districts with a seat at the table for important decisions related to the governance and boundaries of special

concept, so long as the law ensures an appropriate level of due process and avoids redundant mandates. Accordingly, CSDA has successfully advocated for amendments that improve the bill, such as removing provisions that would have mandated unnecessary reports. Remaining concerns with SB 448 include a provision that prohibits special district officials from speaking in opposition to the dissolution of a district, and a provision that eliminates the requirement for a LAFCO to report to affected agencies prior to the dissolution of a special district. districts and other local agencies.

Moreover, it provides a more diverse and stable governance foundation to LAFCOs. Finally, by attaining representation on LAFCOs, special districts demonstrate their leadership role alongside cities and counties, and fulfill their responsibility as one of the three legs of local government. CSDA members advocated in support of AB 979 during Special Districts Legislative Days in May and the bill has thus far received unanimous, bipartisan support.

SB 448 (Wieckowski) provides a streamlined process to dissolve inactive special districts. CSDA supports this

AB 1479 (Bonta) places new burdens on local agencies by including additional requirements in processing California Public Records Act (CPRA) requests. The bill mandates every local agency assign a “custodian of record” to review each public records act request and response. Additionally, the measure establishes new civil penalties for violations of the CPRA that would provide a financial incentive for serial litigants, from across the nation, to file frivolous lawsuits extorting taxpayer dollars from the state and local public agencies. Tax dollars that would otherwise be used to provide essential services such as healthcare, fire protection, park and road maintenance, and police protection.

Take Action Make every day an opportunity to increase awareness and understanding of special districts by participating in our SEASONS OF ADVOCACY. SUMMER • Meet with each of your local legislators in their district offices.

Find your California State Senator and Assemblymember at http://findyourrep.legislature.ca.gov/.

• Respond to CSDA “Calls to Action” on priority legislation.

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RECAP

Legislative Days attendees help themselves to free ice cream from the Umpqua Bank ice cream truck before heading in to legislative office visits at the Capitol.

Paul Hughes, CFO with the South Tahoe Public Utility District, accepts his certificate for renewing his certification as a Special District Administrator, awarded by SDLF.

Temecula Public Cemetery District’s General Manager Cindi Beaudet and Trustee Rosie Vanderhaak accept their district’s District of Distinction reaccreditation certificate, awarded

by SDLF.

Tom Kennedy, General Manager with the Rainbow Municipal Water District, accepts his plaque for becoming certified as a Special District Administrator, awarded by SDLF.

CSDA members visit with Senator Jeff Stone during the legislative office visits at the Capitol.

CSDA members and staff visit with Senator Josh Newman during the legislative office visits at the Capitol.

CSDA Chief Executive Officer Neil McCormick, Little Hoover Commission Chair Pedro Nava, and CSDA Board President Vince Ferrante.

Directors from the Leucadia Wastewater District accept the District of Distinction reaccreditation certificate, awarded by SDLF.

California Special District – July-August 2017

Terry Burkhart, Director with the Bighorn-Desert View Water Agency, accepts her district’s District of Distinction accreditation plaque, awarded by SDLF.

Attendees hear from the event’s Policy Panelists on what’s next for special districts in the legislature.

CSDA members and staff at the Capitol for legislative office visits.

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Ask theExperts

conference highlight 2017 CSDA Annual Conference and Exhibitor Showcase

Do you have a question for any of our CSDA experts?

If so, send your question to Charlotte Lowe, editor, at charlottel@csda.net.

This article is not intended to serve as legal advice. If you have further questions about these matters, you should consult with an attorney.

breakout session

Tie in to TIERS A New Framework...

September 26, 2017 3:30 – 4:30 p.m.

Make Your Public Meetings More Effective From the Institute for Local Government (ILG)

California law provides general rules which local agencies must follow when conducting official business.

In addition to state law, many local agencies have their own rules of conduct and procedure. However, merely following the laws and rules will not always result in an effective meeting. The following tips will help ensure a successful meeting.

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Tips for Elected and Appointed Officials Be Clear About the Process • Be clear about who is running the meeting and explain the role of the presiding officer (chair of the meeting).

• The chair can help ensure a more successful meeting by: »» Explaining the meeting process and outlining local rules and procedures at the beginning of the meeting, including any limitations on public participation. »» Assuring people that they will be allowed to share their views. »» Reminding all participants (governing body and public) to be compassionate about the fear of public speaking; do not allow heckling.

Do you see what’s happening here? If you’ve experienced this in your own life, you know it becomes a frustrating cycle that can quickly turn into an entire mindset.

Be Prepared • Educate yourself about agenda items before the meeting.

• Make information available to the public before the meeting.

• Reach out to the community; talk to community members one-on-one, and to groups at their meetings.

• Invite questions ahead of the meeting.

by providing practical tools and useful materials. It includes resources on: Chairing a Meeting, Enhancing Public Participation, Parliamentary Procedure and Technology in Meetings. Access the Resource Center at: www.ca-ilg.org/meeting-resource-center-tools-effectivemeetings.

Tips for Public Participants

ILG Offers Free Technology to Enhance Public Meetings

Be Clear About the Process • Understand open meeting laws, local rules, and meeting procedures.

• Understand the role of the presiding officer (chair of the meeting).

Be Prepared • Educate yourself about agenda items before the meeting.

• Review any informational material made available before the meeting.

• Familiarize yourself with the members of the decision-making body so that you can address them at the meeting.

• Reach out to your local decision-makers and agency staff before the meeting and share your thoughts in advance.

• Submit letters of support or opposition, or any questions you may have to the decision-making body before the meeting.

• If planning on making comments during the public comment period, prepare your remarks in advance.

For more tips and resources on increasing public participation, check out ILG’s Public Engagement Program at www.ca-ilg.org/engagement.

ILG’s Meeting Resource Center Leaders can increase the effectiveness of public meetings with thoughtful, advance planning and by taking a few simple steps. The Institute’s Meeting Resource Center aims to help local officials and agency staff in these efforts

California Special District – July-August 2017

ILG offers local agencies the use of handheld wireless devices at no cost for a process known as keypad polling.

The polling devices are typically used in a meeting to gather instantaneous responses from individual participants. When combined with dialogue, this technology allows participants to anonymously select or prioritize options and then immediately view the group’s collective judgment or the opinions of different subsets of participants.

ILG also lends interpretation equipment at no cost to local agencies. The digital meeting interpretation equipment supports simultaneous interpretation of public meetings. Each set consists of 40 receivers and headsets as well as the transmitter and speaker/ headset for the person interpreting. The equipment is easy for interpreters and meeting participants to use, and each set contains instructions in both English and Spanish. For more information, contact Hanna Stelmakhovych, public engagement program assistant, at hstelmakhovych@ca-ilg.org.

CSDA Membership Delivers More.

CSDA is proud of our ability to provide strong, respected representation of special districts at the state capitol.

We’re happy to bring quality education programs to your board members and staff. And we’re delighted to be the association you trust to get timely, valuable information.

Bank of the West – CSDA branded purchasing card program designed for special districts.

But did you know your membership in CSDA can deliver even more to keep your agency running efficiently and effectively? We are constantly on the lookout to identify and partner with businesses that have a reputation for top-quality services, products and customer support.

These businesses have agreed to offer their services tailored to CSDA members. CSDA’s Value-Added Benefits deliver cost-effective solutions to meet your agency’s needs now and in the future.

Employee Relations – Employment background investigations, drug testing and employee hotline services.

It’s just one more way CSDA membership delivers more.

Call Member Services at 877.924.2732 for information on any of these services:

California CAD Solutions – Digital mapping solutions.

CalTRUST – Pooled investment accounts.

Streamline – Website design system and transparency tools.

U.S. Communities -– Discounted purchasing forum for office supplies, technology products and more.

Utility Cost Management - Utility bill audits and energy efficient advisory services.

CSDA members have access to exclusive programs delivered by our California Special Districts Alliance Partners: • CSDA Finance Corporation – visit www.csdafinance.net for tax-exempt municipal financing • Special District Risk Management Authority (SDRMA) – visit www.sdrma.org for cost-effective Workers’ Compensation, Property & Liability and Health Coverages

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MOVERS & SHAKERS The Certificate of Achievement for Excellence in Financial Reporting has been awarded to the Costa Mesa Sanitary District (CMSD) by the Government Finance Officers Association (GFOA) for its comprehensive annual financial report (CAFR). The Certificate of Achievement is the highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. This is the fifth consecutive year CMSD has received this prestigious award from GFOA. The San Diego County Water Authority’s $1.5 billion Emergency & Carryover Storage Project, built to protect the region from droughts and catastrophic disruptions to imported water supplies, has won one of the engineering industry’s most prestigious global awards – the Outstanding Civil Engineering Achievement Award from the American Society of Civil Engineers.

The Cucamonga Valley Water District (CVWD) was recently recognized by the California Wastewater Environment Association (CWEA) with the “CWEA Wastewater Collections System of the Year” award for the local Santa Ana River Basin region (under the category of Medium-sized Collection System- 250-500 miles). CVWD was up against many other agencies for the coveted Wastewater Collections System of the Year regional award and is now one of three finalists being considered for the statewide honor.

For the 13th consecutive year, Monte Vista Water District has been awarded the “Certificate of Achievement for Excellence in Financial Reporting” for its comprehensive annual financial report for 2015-2016. The award was granted by the Government Finance Officers Association of the United States and Canada, a Chicago-based nonprofit professional association serving more than 18,000 government finance professionals.

California Special District – July-August 2017

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

The American Public Works Association’s San Diego and Imperial Counties Chapter recognized Olivenhain Municipal Water District’s (OMWD) Village Park Recycled Water Project and Rancho Santa Fe Farms Road Realignment Project with Honor Awards at an annual celebration in San Diego. This awards program acknowledges the best public works projects and professionals in San Diego and Imperial Counties, and 2017 is the sixth consecutive year APWA has lauded OMWD projects.

The Camarillo Health Care District (District) was named Ventura County’s “Optimal Aging Organization” in a ceremony by the Ventura County Area Agency on Aging (VCAAA), in an inaugural presentation recognizing several agencies for their dedication and innovation in providing services that enhance quality of life for older adults. The District was recognized for its long history of supporting, serving and inspiring the community in maximizing health status and independent living, while optimizing aging.

Matt Knudson

Longtime Palmdale Water District Employee, Matt Knudson, undertakes a new adventure to continue to further challenge himself as Assistant General Manager for a neighboring water agency, Antelope Valley-East Kern Water Agency.

A strong financial recovery from the recent drought resulted in Fitch Ratings recently reaffirming Vallecitos Water District’s credit rating of ‘AA+’, with a “Stable Outlook” into the foreseeable future. Vallecitos’ rating was bolstered by the recently secured drought-proof supply of water through the Carlsbad Desalination Plant. The AA+ rating is a testament to the actions taken by the Vallecitos Board to ensure that Vallecitos is properly run financially.

In Brief Sanitation District Reaches Milestone with California Coastal Commission Permit Approval The South San Luis Obispo County Sanitation District (SSLOCSD) reached a milestone when the California Coastal Commission unanimously adopted a monumental 30-year Coastal Development Permit for the District’s $20 million Wastewater Redundancy Project (Project). The need for additional secondary treatment units has been discussed since 2005. Currently, the existing wastewater treatment plant cannot meet discharge limits under a permit issued from the State of California Regional Water Quality Control Board if the existing secondary treatment units fail since there are no redundant or backup units. The Project, when completed, will allow the District to maintain operations without affecting water quality. This Project will also reduce costs by helping prevent potential violations, while protecting both public health and coastal resources. The Project’s next step is to complete design, and obtain long-term financing. The design phase is expected to take one year, with construction initiated by late 2018. Estimated completion is scheduled for 2020. The SSLOCSD is committed to maintaining quality services for its customers and the achievement of this milestone with the Project’s Permit approval from the Coastal Commission is a big step forward in that effort. For more information please contact the South San Luis Obispo County Sanitation District at gerhardt@sslocsd.us or visit www.sslocsd.org.

Wettest Year on Record for Northern California The Placer County Water Agency (PCWA) Board of Directors received news that April showers have boosted Northern California precipitation totals to record levels. At Lake Spaulding, PCWA’s primary water source, cumulative rainfall measured 125.8 inches. “This matches the wettest water year on record with still more than five months remaining in the water year. Any additional precipitation this year will add to the wettest record in more than a century,” stated Darin Reintjes, PCWA’s Power Scheduling Manager. The American River Basin snow sensors report almost two times the normal amount of water in snowpack storage. PCWA’s Middle Fork Project reservoirs remain full and hydro generators are running at maximum capacity. The reservoirs are expected to remain full and spill excess runoff that the generators cannot pass from melting snowpack as temperatures continue to increase. Above normal flows of water can be expected through the American River into mid to late summer. Recreation opportunities will be limited during the runoff and spilling period until flows recede later in the summer.

Sources: South San Luis Obispo County Sanitation District, Placer County Water Agency, Monte Vista Water District, San Diego County Water Authority.

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Got news?

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

Top 10 Tips for WaterSmart Living this Summer

Students Recognized by Water District in 2017 Poster Contest The Monte Vista Water District (MVWD) recently recognized student winners in the “Water Is Life” Art Poster Contest at a Board of Directors meeting. The contest invites students in grades K-12 within the district’s service area to create an art poster depicting various water uses, ways to use water more efficiently, or water conservation topics. The district received 231 entries representing 31 classrooms in eleven schools.

“We are very impressed with the creative talents of our student artists this year,” said Board President Sandra Rose. “This contest provides our school children with the opportunity to creatively learn and then teach how important water is to daily life.” Winning posters will be submitted to Metropolitan Water District of Southern California, who is conducting a regional art poster contest in which 36 winning posters are selected out of several hundred entries from water agencies throughout Southern California. Winners will be announced in early fall and recognized at a special event in early December. The MVWD Board of Directors recognized each artist for their creative poster with a certificate of recognition and a gift card to Barnes & Noble. Teachers of contest winners also received gift cards to Target. Photos of the awardwinning posters are available on the district’s website, www.mvwd.org, by following the “For Teachers” and “Poster Contest” menu links.

California Special District – July-August 2017

The San Diego County Water Authority is reminding residents of simple steps for saving water during the hottest, driest months of the year. The National Oceanic and Atmospheric Administration’s Climate Prediction Center forecasts above-average temperatures across the West during July, August, and September, underscoring the importance of residents and businesses to practice efficient water use. Here are the top 10 tips for using water efficiently this summer: 1. Check it out. Inspect irrigation equipment to eliminate overspray.

Monitor soil moisture using a spade or soil probe, and only water if the top inch of soil is dry. Irrigate turf if it doesn’t spring back when stepped on. Better yet, upgrade to a “smart” irrigation controller that automatically adjusts water times based on weather conditions. Rebates for a variety of irrigation equipment are at WaterSmartSD.org.

2. Let it sink in. Irrigate mature trees once or twice a month using a soaker hose or drip system toward the edge of the tree canopy – not at the base of the tree. Use a hose faucet timer (found at hardware stores) to prevent overwatering. Young trees need more frequent irrigation; consult an arborist or tree-care manual for details.

3. Maintain your mulch (and compost). Keeping a 3-inch layer of mulch around trees and plants reduces runoff, helps control weeds and protects soil from direct sunlight and evaporation. Keep mulch at least a foot away from tree trunks and several inches from the crowns of plants. Also, add compost to increase soil nutrients.

4. Drink responsibly. Keep drinking water cool in your refrigerator to avoid running the tap. Use refillable water bottles instead of buying disposable plastic bottles.

5. Put a lid on it. Pool and spa covers reduce evaporation, lower pool heating costs and keep dirt and other debris out of the pool.

6. Take a break. New plants need more water to get established, so wait until fall and winter for planting to take advantage of cooler temperatures and rain.

7. Go to summer school. Get started planning your WaterSmart landscape by surfing WaterSmart Landscaping Videos On-Demand from the comfort of your beach chair or sofa. Learn more at Landscapemakeover.WaterSmartSD.org.

8. Let your lawn grow. Set your mower to leave grass at least 3 inches high because taller blades reduce evaporation up to 80 percent and protect roots from heat.

9. Keep it clean. Patronize car washes that recycle water and save at least 15 gallons each time. When washing at home, use a hose nozzle that shuts off when you release the handle.

10. Rinse right. Wash fruits and vegetables in a bowl of water instead of in running water. Afterward, pour the collected water on a plant.

More information on how residents and business can use water efficiently, along with rebates, classes and other water-saving resources, is at WaterSmartSD.org.

Building the Momentum Mindset or The Art of the Restart

By Manley Feinberg

Keynote

Manley Feinberg Reaching Your Next Summit September 27, 2017 9:00 – 10:45 a.m.

conference highlight 2017 CSDA Annual Conference and Exhibitor Showcase

Mindset (Noun)- An established set of attitudes or beliefs held by an individual.

Mindset – by definition the word sounds harmless enough, doesn’t it? If you think about it, everyone has their own particular filter or lens they see life’s circumstances through. Our mindset is like this subtle undercurrent, silently shaping the way we pursue our dreams, react to challenges, and deal with obstacles. Until we awaken to the idea that we can (and must) play an active part in how we choose to see, we can allow our observations or even the advice of others shape our mindset in a negative way, and this will ultimately affect our destiny.

In this article, we’re going to look at building the momentum mindset, or what I also like to call, the art of the restart.

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You’re Going to Fall It’s interesting how I came about this whole concept of the restart. Sometimes it takes the realization of another person’s mindset to recognize your own. I was having a conversation with a friend of mine, and I was describing this moment when I was climbing with my son on this particular route, and took a fall while we were climbing. I was sort of nonchalantly relaying the details, because I was setting the stage for a point I was about to make, but my friend stopped me: Friend: “Wait. Did you say you fell?”

Me: “Yeah.”

Friend: “You say it like it’s no big deal. You actually fall when you’re climbing?”

That’s the moment when it clicked for me. I could see through my friend’s eyes. I understood his mindset.

Do you see what’s happening here? If you’ve experienced this in your own life, you know it becomes a frustrating cycle that can quickly turn into an entire mindset.

He was completely surprised by the fact that we fall, and specifically that we fully expected to fall, and were okay with it! We are a family of rock climbers and rock climbers fall. For us, it’s not a big deal. Falling is not only expected but it’s planned for.

When you expect to fall, the question changes. Right now the question you’re asking yourself might be, “What if I fall with this thing I am trying to accomplish in my life? Then what? What happens if I fall?” That’s a fear-based and paralyzing question. All the pressure is tied to somehow keeping yourself from falling, and deciding what that even means or looks like can keep you from taking another step in the direction of your goals and dreams. But when the question becomes, “When I fall, what will I do next?” – that kind of question brings freedom.

In order to live a life without limits, a life where you don’t get stuck or lost or stagnant, you’re going to have to experience a critical mindset shift right here at this juncture. The way you think about and see the fall – this is a crossroad moment.

It’s a mindset change. It’s a shift in expectation, and it makes all the difference.

Disclaimer: Falling is Not Failing Once you experience the shift and allow yourself the freedom to fall, there comes with it the realization that falling is not failing. When you’re a rock climber, failing a climb would be dying. I think we use the word fail too freely when we’re describing our experiences in life. Most of the time we use the word without even thinking. It’s that subtle undercurrent I talked about that’s silently shaping our Continued on page 18

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Building the Momentum Mindset [continued] view. I like to use the word fall because in climbing we fall, we trip up. We are human, so if we expect this to happen, then when it does, we can get back up and going as quickly as possible. That’s where the restart comes into play.

The Art of the Restart So, in rock climbing, when we fall we have a mechanism in place to stop the fall. We don’t just let go and drop to our death. It looks something like this: maybe we lose our footing or our grip, maybe we miscalculate a step and we fall. Once the fall is stopped, then we hang there on the wall, literally, and we work to get back. We call it working the route. We assess the situation, look for the next move we need to make, take a deep breath and a minute to recover, and then we restart as quickly as possible. That, in essence is the Art of the Restart.

The idea here is that we don’t wait. We don’t let this long period of time pass before we start moving upward again. I mean, that would be silly, right? We’d just be hanging out on the wall. Who wants to do that? We also don’t lower down if at all possible. Once in a while we might lower down a bit to get a solid footing, but typically we can just start moving upward right away.

So, this is rock climbing. Restarting is immediate, purposeful, and necessary. Let’s move the thought of this over to our daily lives, dreams, and goals. How do we handle the restart when we fall? Whatever your goal in life is, take a minute to become aware of how you view the restart. If you’re like a lot of people, myself included, maybe you wait for the next major calendar event.

The Calendar Restart You’ve been going along and doing something on a regular basis. It’s something that you need to do – a routine that you’re establishing. Maybe it’s carving out an hour each day to write your book, work on your new website, or to exercise. You’re going along, just building that momentum, and then life happens. You fall off the horse.

There you are, at this crossroad moment; the moment right after the fall. What do you do? Well, what I used to do is, I would say to myself, “Today is Tuesday, so I’ll just restart again on Monday, because that’s a good starting point.” Seems right, doesn’t it? So, in one quick moment of mindless decision-making, I just gave myself a free pass to do absolutely nothing toward

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accomplishing my goals for the next five days. By the time those five days have passed, I might as well wait until the beginning of the new month, because that makes more sense, right? By then there’s a holiday coming, or a birthday, or anniversary, so I’ll just wait until that’s over.

Do you see what’s happening here? If you’ve experienced this in your own life, you know it becomes a frustrating cycle that can quickly turn into an entire mindset. In reality, it’s nothing more than a way to self-sabotage and practice the art of procrastination!

Don’t Die on the Wall Let’s go back to rock climbing. When I fall during a climb, I would never imagine or consider just hanging out there for a while. Getting back up is immediate. Can you imagine falling off your bike and just laying there on the sidewalk for a few days? Why is waiting such an appropriate response to falling off our intentions or life goals?

Note: This is where your mindset can make that shift and you can choose to adopt the Art of the Restart in all of life. Right now, right here! It’s a momentum building mindset that will give you the upper hand in all things, because you’ll stop playing a waiting and procrastination game with yourself.

You will also come to be known as a person who gets things done, and you will! All because of one shift in your thinking, one inner agreement that makes the commitment to get back up quickly, the next moment, the next heartbeat, the next breath.

If we didn’t immediately restart when we fell during a rock climb, we would never reach the top of anything.

We’d spend most of our time just hanging out on the side of the wall, and probably in some scenarios end up dying on the wall. Don’t die on the wall.

Here are three simple steps that will help you to master the art of the restart. Not a calendar restart — a vertical restart: • Recall a Summit – Step one is to recall a previous summit when you fell. As humans, we have a tendency to want to replay the negative scenarios.

Have you ever caught yourself saying, “This always happens to me,” or “I just don’t like to exercise.

Maybe it’s just not my thing,” or some other story.

keynote speaker Internally, we are looking for a free pass to quit. Break this cycle by recalling a summit moment.

Instead of looking at the struggle, think of one time in your life recently where you’ve experienced success, even if it was for a little while. See yourself standing on top of that personal mountain. Allow yourself to experience that sense of accomplishment all over again.

Revisiting the summit will increase your faith and build that positive mindset.

• The Next Move – Step two is to plan your next move, and maybe the next couple of moves after that. Sometimes we look so far out into the future that we become overwhelmed. We

Manley Feinberg

can suffer from analysis paralysis. When you’re on a climb, planning your next step or two is typically the only option you have. You know what the end goal is, but it’s a move right in front of you that is throwing you off so you have to focus on the next step, and keep going. This builds a powerful momentum and you’ll see how being present in the now and doing what you can with this moment will build a strong pattern that will lead to your goal.

• Not-Ready, Set, Go! – The third step is perhaps the most important, second only to the mindset in and of itself, and it is to restart before you are ready completely. What? That sounds crazy, right? But the key to really gaining a substantial amount of ground in anything is to quickly assess, decide your next move, and GO! In rock climbing, we never know for sure if the move we are going to try is going to work.

We can practice a little bit and check out a couple of holds, but then we have to GO!

So, right now, right here, you have a choice. Let’s make the commitment to get away from the calendar restart and the analysis paralysis mindsets. Let’s be quick with getting back up after a fall and quick to take a breath, assess our next step and take it!

If you do these things, you will master the art of restart, and it will have a massive impact on your life!

I’d love to hear from you and how your life is changing.Let me know if there is any way I can support you!

Share your summit moments with me, and share this article with anyone who would benefit!

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Moving to Great Interview with Eric Boles

conference highlight 2017 CSDA Annual Conference and Exhibitor Showcase

Eric Boles is the president and founder of The Game Changers, Inc., a leadership development firm located in Lakewood, WA. He is the author of several executive and emerging leader development programs that are used across the globe and have been translated into seven different languages. Eric is also an executive advisor, coach, and trainer.

Boles’s book, Moving to Great: Unleashing Your Best in Life and Work, offers practical insights in to human nature, along with a step-by-step approach Assembly Member Rich Gordon to put those insights to work, boosting your performance in every part of your personal and professional life. California Special District asked Boles to explain these insights and more.

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Opening Keynote

Eric Boles Moving to Great September 26, 2017 9:00 – 10:45 a.m.

Tell us about your experience working in leadership positions.

Some of my greatest leadership lessons had to do with me watching coaches in the NFL influence young men whose average age was 23. This can be a difficult thing to do in an environment where 1) the young men are being paid more money than their maturity level can handle and 2) where selflessness is demanded but not necessarily rewarded. Athletes are rewarded based on their individual performance, not for making sacrifices for the team. Observing coaches influence individuals to be selfless in an environment that fosters and rewards selfishness was a great place for me to learn the importance of leadership. That was my first real experience in what it means to lead a team as opposed to managing a team. I got the chance to see it done well and not so well.

And failure is not the problem, it is the fear of failure that is the problem. From a leader’s prospective, we need to embrace failure and use our own failure to inspire others, to help coach others, to move them forward.

What inspired you to start a new career in leadership programs after playing in the NFL? My inspiration came at a real low moment. When I was released from the NFL (another word for fired), I had my college degree but really struggled finding employment.

I believed after being released I would return to the NFL, which did not happen. I had a really hard time finding my purpose. I ended up doing janitorial work at night.

During that time, my wife Cindy inspired me to do what I love and find a way to make a living at it. She shared with me that there were two things she knew I loved: coaching, and speaking about bringing out the best in people. I also had three amazing mentors that gave me advice and supported me, but at the same time, allowed me to grow from the struggle. They did not bail me out when things got tough. I thought if I could help other leaders do the same, what my mentors did for me, it can elevate everyone.

What do you think is the top reason holding individuals back from pursuing their potential, personally or professionally?

I believe there are two primary reasons. One is the fear of failure, because in order to unleash our full potential it requires us to do something we have not done before or to do something outside of our comfort zone. Far too often, we spend too much time talking about how to avoid failure than how to capitalize on it. The true way to unleash our full potential means we are going to have to deal with failure. And failure is not the problem, it is the fear of failure that is the problem. From a leader’s prospective, we need to embrace failure and use our own failure to inspire others, to help coach others, to move them forward. Use our wins to inspire ourselves but use our past failures to inspire others. This helps our teams realize that there is life after a mistake. We do not need to fear failure but capitalize on it.

The second reason that keeps people from releasing their full potential, and this is a big one, is fear of rejection.

It is hard to perform at a high level if you are not open for feedback. And sometimes our fear of rejection or fear of receiving negative feedback prevents us from asking

What are some ways an effective leader can inspire their team to perform well?

For a leader to inspire others, it is important that leader is inspired themselves. The word inspire means to breathe life in to another. In order to breathe life, to inspire others, a leader must have their own development plan and goals they are passionate about, and actually practicing the very thing they ask others to do. A leader who is inspired by their own goals is a much better than a leader who is trying to inspire others based on something they read.

California Special District – July-August 2017

people “How am I doing, how am I making progress?” In the professional world, that is, people ask for formalized feedback infrequently and many times it’s anonymous. Due to fear of rejection, we try to make the feedback as safe as possible, when it is the opposite that we should be doing.

We should be asking for informal, frequent feedback constantly. This is why sports has had such significant influence on me and my leadership.

Constant feedback is how an athlete improves. Constant course correction is essential for unleashing potential in any area of one’s life. In life, just like sports, we are going to work hard anyways, so we might as well work hard on the right things. That is what feedback does for us – it gives us a focus for putting our hard work in to.

Continued on page 22

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Moving to Great [continued] As we get better at these two things: taking greater risks and understanding failure is a part of growth, and seeking out constant feedback, it is amazing how much more of our potential we can unleash.

Does a person need to be passionate about the work they are doing in order to operate at their fullest potential?

I believe it helps a lot, but it is not requirement. What you are doing, you may not be passionate about, in terms of the technical aspect. You can be passionate about the people you are leading, or the growth of your people, but not the specific industry. Me personally, I am passionate about coaching, training, and inspiring leaders and coaches all over the world to be at their best. I know many football coaches who are not passionate about football

but they are passionate about developing the young men they coach in to men of character. They just use football to do it. Football is the vehicle they use to develop the young men. Of course it helps if they don’t hate football. You can define what part of your work you do love and if you can be passionate about that, then you can make the most of the opportunity that’s there.

challenge, the problem, or the conflict. There is a phrase that says, you cannot conquer what you do not confront. Sometimes that is the greatest challenge, to acknowledge that something is a problem, which is simple but not easy. But once I acknowledged the problem, my mind could move from trying to avoid it to dealing with it. So the first tip would be to acknowledge the problem.

From playing in the NFL to founding your own leadership development firm, you have faced a variety of challenges. What are three tips you can share on how to face challenges and meet them head on to ensure success?

Tip number two that helped me is to I had to run through through the problem/challenge versus around it.

After acknowledging your problem, you have to confront it. I couldn’t use the strategy of hope – hope meaning you hope things get better on their own. As a leader, that was the hardest thing to realize; that my responsibility as a leader was to help define reality.

I have a goal and vision that things

The first one would be to acknowledge the challenge, do not run or hide from it. First things first – that was the hardest thing for me, to first acknowledge the

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keynote speaker will get better but I also have to be courageous as a leader to confront current reality. And when I say “confront” that does not mean argue, it means to dig in to it and be aware that this could be on me, it could be on them, or was it something collective that we need to compromise on to get to the other side. Acknowledge it and run through it.

The third part of this that has helped me deal with challenges, is to anticipate problems that might be out on the horizon. There is a great quote from John Maxwell that simply says “The punch that knocks you out is seldom the hard one, it’s the one you didn’t see coming.” After I go through a difficulty, I do my best to do an autopsy of it – what did I learn from

Eric Boles Interview

it; problems will keep coming up but how do I ensure it is not the same problem dressed up differently?

Those are the three practical things for facing and overcoming challenges: first acknowledging it, then actually running through it (engaging it), and then once you run through it and you are on the other side, don’t just be happy it’s over, think about what you gained from it to be able to anticipate problems on the horizon.

What can attendees of your keynote expect to learn about during your presentation?

My number one goal is not necessarily to have them walk away and be impressed or inspired by me, I want them to be inspired by their own story. That what I am sharing causes them to think about or reflect on their own life and capitalize on the wins they already have that they might not have paid attention to. I tell people often it is easy to be inspired by someone else but in the meantime we overlook all of things in our own life that are right there ready to inspire ourselves.

They are going to have a good time.

I am pretty passionate, I get excited, and they will walk away with very practical things to do, that didn’t just inspire me but propelled me in to taking action. I have done enough locker room speeches to get people fired up, but many times we went out in the second half and made the same mistakes faster. My goal is that I inspire people to reflect and to see how the information relates to their world. I want to inspire them to also walk out and apply what they just heard and practice it. And lastly, I want them to walk out and feel inspired so much that they want to share it with another. That’s ultimately what I want the audience to gain from it.

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[Community Connections]

Full Court Press: A Media Crash Course

By Erin Gilhuly, President, CV Strategies

conference highlight 2017 CSDA Annual Conference and Exhibitor Showcase

breakout session

Full Court Press: A Media Crash Course September 26, 2017 11:15 a.m. – 12:15 p.m.

Even the most reluctant public speakers are often called upon to interact with the news media about issues affecting their agency, business, or special district.

Regardless of whether the vehicle is traditional or new media, it comes down to this: What do you want your audience to think or do?

Such encounters can bring pause, whether you are the person who breaks in to a sweat at the thought of a microphone in your face or the one who is composed and charming in front of a camera. No matter your personality, interviews and press conferences require preparation and some basic knowledge about what works – and what doesn’t.

Coverage in newspapers and on radio and TV is a highly effective way to showcase your district while educating and influencing the public and policy makers. You are an ambassador for your institution. With a little know-how, you can be a key influencer in the community.

The most important point to remember is that a media interview is a chance to tell your agency’s story and further its mission.

That opportunity now extends to Facebook, Twitter, Instagram and other social media as well. Reporters often turn first to social media when researching a subject, and an engaging, informative post may just land you an interview.

The foundation of your communication is a compelling and relevant message. You must develop a message platform before interacting with the media. Who are your audience members and what do they want? Once you have determined this, you can move on to your key messages, which should be clear, concise and relevant.

THE MESSAGE

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Share your community connections Is your district interacting with the community in a new and original way? California Special District wants to know about it! Contact Charlotte Lowe, editor at charlottel@csda.net or (877) 924-2732.

Your key messages should reflect your organizational values in a way that connects with the audience. This is where you convey your personal story. The messages should also provide new information or a solution to a problem or public need, and a broad appeal or call to action.

THE APPROACH When prepping for an interview, it pays to think ahead. Taking a few moments in advance to answer the questions below will go a long way toward eliminating awkward moments: • What does your public want to know?

• What will reporters ask?

• What will the opposition say?

• What is your dream headline?

Preparation goes a long way toward soothing frazzled nerves.

Come up in advance with some short sound bites rather than longwinded answers and always be truthful. Aside from live interviews, it is usually acceptable to halt an awkward response and start over.

Avoid distractions, such as excessive hand gestures, tapping your pen, or swaying. And steer clear of words like uh, um and like.

Similarly, don’t respond with information you are unsure about and don’t just answer questions – respond to them!

TIPS FOR SUCCESS Before an interview: • Develop your messages • Use your staff – resources and expertise Continued on page 28

There are numerous techniques you can use to keep an interview on track and in your favor. One of those skills is called bridging, which is a way of bringing the focus back to your key messages when responding to questions. It is up to you to build a bridge from the question asked back to your key points, a tactic that is particularly helpful for moving the conversation away from a negative question.

A classic bridging phrase, and one you’ve probably heard employed, is, “That’s a very good question,” because it gives the impression of thoughtfulness and buys a few moments of thinking time. Other bridging phrases are: “I think it would be more accurate to say…,” “Let me point out again that…,” and “I understand what you’re saying, but…”

Effective Public Outreach Practical Strategic Planning

This technique is especially useful during live interviews.

In taped or telephone interviews, when the audience cannot see your body language, it is useful to employ a technique known as 408/374-0977 flagging, which signals the importance of key messages. How to info@rauchcc.com make this work?

By using a phrase to alert the listener, such as “The www.rauchcc.com most important thing is…” or “Anyone who is concerned about this issue should know that…” This signals to your audience that you are about to make an important point and keeps the attention focused on your message.

DO’S AND DON’TS

Many people who end up speaking to the press on behalf of their district are nervous and intimidated. In most cases, an interview is simply a way of gathering information, so it is helpful to look at the interaction as a conversation in which you can speak in everyday terms.

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Community Connections [continued] • Think in short sound bites • Practice in front of a mirror • Control the shot • You can ask the reporter questions first: What kind of story? How long is it? Who else is being interviewed? When and where will the story run?

• Think about possible hard ball questions and how you will respond During an interview: • Use a conversational tone • Speak confidently and don’t rush • Stress key points with intensity level and pitch, not raised volume • Vary your vocal range, pitch, speed – no monotones • You are the authority!

SOCIAL MEDIA No doubt your district is on social media. But are you taking full advantage of the network? Start by making your presence known – on your website, email,

collateral, and business cards. Most social media sites have official “Follow” buttons that you can use so your audience can follow you with one click.

Once you’re on social media, you want to get noticed.

This is best done by using visuals, sharing information, including a link and encouraging discussion. In addition, social media can be one of the most important tools in a crisis situation because of its immediacy.

Updates and videos can be posted more quickly than arranging a press conference, giving your followers the information they need, when they need it.

New and traditional media present great opportunities for sharing your district’s message. By following these simple steps, it is possible to successfully tell your story, educate your audience, and influence decisions and actions in your community.

Erin Gilhuly is the founder and president of CV Strategies. She conducts media training, creates messaging plans, and assists with outreach for special districts and cities across California.

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Your Community. Your Services. Your District!

We are happy to announce the launch of our new public outreach campaign, Districts Make the Difference.

This campaign is centered on the concept that special districts go beyond providing important services to their communities. They make a difference in the lives of their residents and help our state thrive. The goal is to bridge the gap between special districts and the essential services that millions of Californians value.

The first step is to visit DistrictsMaketheDifference.org. This new website features a simple-to-use toolkit filled with public awareness videos, web banners, posters, factsheets, and other materials that can be easily downloaded.

Follow, like, subscribe, share!

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DistrictsMaketheDifference.org California Special District – July-August 2017

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[Solutions & Innovations]

Equitable Adaptation: Climate Strategies for All

By Kate Meis, Executive Director, Local Government Commission

conference highlight

breakout session

It’s Getting Hot in Here September 26, 2017 11:15 a.m. – 12:15 p.m.

2017 CSDA Annual Conference and Exhibitor Showcase

Climate change is exacerbating equity issues already faced by people of color and immigrant communities as the result of long-standing economic, social, and racial factors.

“Climate change will act as a threat multiplier on the very communities that are already struggling to stay in their homes, put food on the table, and pay their bills,” said Francesca Vietor, Program Director of the San Francisco Foundation, at the California Adaptation Forum in 2016. “Climate change may very well be the greatest equity challenge of our time.”

Key positions for environmental-justice advocates — according to professors Carol Zabin (UC Berkeley) and Manual Pastor (USC) in “Advancing Equity in California Climate Policy: A New Social Contract for LowCarbon Transition”— include identifying low-income communities of color as locations for environmental cleanup, clean-energy projects, and good-paying green jobs. Incentives for residential rooftop solar and clean cars, for example, shouldn’t go only to affluent people, forcing those left out to push for separate programs for renters and low-income drivers.

Labor unions have been concerned that not all the Our response will require a broad alliance of labor “green” jobs generated by climate policies are good jobs, unions, grassroots environmental-justice organizations and fear income inequality could spread within the lowand environmental groups to achieve public support carbon sector, replacing good jobs in conventional-energy for the wide-ranging emissions cuts necessary in the infrastructure with clean-energy jobs that don’t offer high years ahead. enough wages to keep working families in the middle class.

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As we develop climate mitigation and adaptation policies, we have a unique and urgent opportunity to strengthen the creation of equitable resiliency.

Their report identifies strategies that reduce greenhouse gas emissions while also ensuring California’s low-income and working classes don’t bear the brunt of the costs of climate-resiliency initiatives and receive a fair share of the benefits as the state transitions to a low-carbon economy.

Key Recommendations • Expand low-carbon programs that create good jobs and prioritize low-income communities, such as community solar programs and energy efficiency in public facilities.

• Promote labor standards, skilled workforces and local-hire provisions on publicly funded green jobs.

• Monitor “pollution hotspots” in disadvantaged communities to assess the relationship of capand-trade and local emissions, and correct if excessive levels of pollution are found.

• Establish “green zones” in California’s most disadvantaged communities to focus investments in pollution reduction and community resilience.

• Start planning now for protecting workers and communities who may later be affected by the decline of greenhouse gas emitting industries. While California is not expected to lose jobs in the short term, the risk of job loss may grow as we get closer to the emissionsreduction targets set for 2050, especially in oil-and-gas extraction and refining.

• Develop an annual Climate Equity Report to monitor whether equity goals have been reached, and identify areas where climate policies should be improved to advance equity.

California Special District – July-August 2017

Achieving Equitable Adaptation

• Community-driven adaptation in Wilmington and Richmond: In “We can’t continue to force communities Wilmington, South Los Angeles and to choose between a thriving economy Richmond, California, Communities for and the ability to live,” Miya Yoshitani, a Better Environment has implemented Executive Director of the Asian Pacific a Climate Adaptation Resiliency, Environmental Network at the California Enhancement Program that focuses on Adaptation Forum, 2016. engaging residents to identify communitydriven adaptation and mitigation solutions.

As we develop climate mitigation and These projects include providing residents adaptation policies, we have a unique with cool homes, permeable street surfaces, and urgent opportunity to strengthen cool/green roofs, access to affordable the creation of equitable resiliency. Local healthy food, and access to clean, models are emerging including: renewable, locally generated energy.

• City of Jurupa Valley Environmental Justice Element: Jurupa Valley adopted • Engaging tribes – the role of traditional knowledges in climate-change an Environmental Justice Element in initiatives: Due to a long history of their General Plan in 2014 to foster exploitation, many tribes are concerned meaningful participation in the public about maintaining ownership of their process by the entire community, reduce traditional knowledges, including disproportionate environmental burdens community traditions, intergenerational affecting low-income and minority ritual practices and moral values. Tribes populations, increase mobility and accessibility for all residents, and build CSDA Ad and – #2 Continued on page 32 healthy affordable housing.

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Solutions & Innovations [continued] have been dealing with wildfires, droughts, and water scarcity for a long time, and are asking for the recognition of traditional knowledges so that they can use it to address climate change. Traditional knowledges are place-based, and have to be considered in context.

It’s important to identify risks before sharing sensitive information and ensuring data ownership.

Climate Adaptation and Community Aspirations Social equity, civic engagement, and community resiliency are inextricably linked. A community can truly be resilient only when it ensures that its efforts to adapt to climate impacts, security risks and economic consequences protect and benefit all of its residents especially lower-income neighborhoods, communities of color and those who have historically borne the greater burden of unhealthy pollution, environmental injustice, and social disinvestment.

Building climate resiliency can seem abstract compared to more tangible demands to find safe, affordable housing, reliable transportation, healthy food, clean air and water, and jobs that can sustain a family.

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For climate-smart policies to be truly inclusive, responsive and ultimately successful, we must be thinking of climate risks and solutions at the scale of human experience. What does a person need to be happy, healthy and resilient as an individual? How can we scale that approach to impact the way we develop climate-adaptation strategies?

The good news is that this is already happening in communities across California, creating viable models that can be replicated and expanded. These projects are not only reducing pollution and increasing resilience to extreme heat and other climate impacts but they are also providing for people’s basic housing, transportation, food, and work needs.

As public servants, it is our professional responsibility and our social imperative to ensure that the decisions we make today protect and our grounded in the expressed needs of our most vulnerable residents. And in doing so, we help make the whole of our communities stronger and more resilient.

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Legal Brief

breakout sessions from liebert cassidy whitmore

CalPERS Update & How to Prepare for and Survive a CalPERS Audit September 26, 2017 2:00 – 3:15 p.m.

conference highlight

Get on Board: Employee Orientation Requirements and Best Practices September 27, 2017 3:45 – 5:00 p.m.

2017 CSDA Annual Conference and Exhibitor Showcase

The Rule Against Gifts of Public Funds

By Hengameh Safaei, Attorney, Liebert Cassidy Whitmore The California Constitution prohibits public agencies, including special districts, from making a gift of public funds. “Due to their unique operating environment, governments have a responsibility to be accountable for the use of resources that differs significantly from that of business enterprises. Although businesses receive revenues from a voluntary exchange between a willing buyer and seller, most governments obtain resources primarily from the involuntary payment of taxes.” (GASB White Paper: Why Governmental Accounting and Financial Reporting Is – And Should Be – Different (April 2013).)

The restriction against gifts of public funds is in place to ensure accountability to constituents and to prevent misuse of this public money. The Constitution states, in relevant part: “The Legislature shall have no power . . .

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to make any gift or authorize the making of any gift, of any public money or thing of value to any individual, municipal or other corporation[.]” (Const., Art. XVI, § 6.) Courts have interpreted this provision to include all payments of public money for which there is no authority or enforceable claim, even if there is a moral or equitable obligation.

Importantly, an expenditure is not a “gift” within the meaning of the constitutional prohibition if the district receives adequate consideration in exchange for the funds expended. Consideration is a benefit or something of value commensurate with amount of the payment.

In determining whether an expenditure is considered a “gift” within the meaning of the gift clause, the primary question is whether the funds are used for a public or private purpose. If the expenditure is primarily for a public purpose, it will generally not be a gift. If the

expenditure is for a private purpose, however, such as for the benefit of a single employee or student, it will likely be an unlawful gift of public funds. As the California Supreme Court explained in City of Oakland v. Garrison (1924) 194 Cal. 298, 302: [W]here the question arises as to whether or not a proposed application of public funds is to be deemed a gift within the meaning of that term as used in the constitution, the primary and fundamental subject of inquiry is as to whether the money is to be used for a public or private purpose.

If it is for a public purpose within the jurisdiction for the appropriating board or body, it is not, generally speaking, to be regarded as a gift.

To justify an expenditure, a district’s governing board must determine that the expense serves a legitimate public purpose related to the mission of the district. If the governing board has reasonably determined that a particular type of expenditure serves a legitimate public purpose, courts will generally defer to the board’s decision. On the other hand, expenditures driven by personal motives or moral obligations, such as a desire to convey compassion, sympathy, joy, or gratitude, generally do not serve a primary public purpose and, thus, are likely unlawful gifts of public funds. Districts and public officials can face potential legal liability, including taxpayer lawsuits, civil and criminal penalties, and the loss of public confidence, for the misuse or improper expenditure of public monies. (See, e.g., Gov. Code, § 8314; Pen. Code, § 424.)

In Stanson v. Mott (1976) 17 Cal.3d 206, for example, a taxpayer filed a lawsuit alleging that a state official had authorized an improper expenditure of public funds to promote the passage of a bond issue. The taxpayer requested the court to require the official to personally repay the funds. The state official argued that the expenditure was lawful and that, in any event, he could not be held personally liable.

The California Supreme Court disagreed. The Court concluded that in the absence of clear legislative authorization, a public agency may not expend public funds to promote a partisan

California Special District – July-August 2017

position in an election campaign. The Court also held that public officials may be held personally liable if they fail to exercise due care and reasonable diligence in authorizing the expenditure of public funds. Whether or not an official has acted with due care depends on various factors including, for example, whether the expenditure’s impropriety was obvious or not, whether the official was alerted to the possible invalidity of the expenditure, and whether the official relied upon legal advice in making the expenditure.

Frequent Questions and Scenarios As most administrators are aware, there are various circumstances when they must decide whether a particular expenditure is a gift of public funds. Below are some frequently asked questions and common scenarios.

1. Does the gift of public funds doctrine apply to expenses that are just a few dollars?

Yes. The constitutional prohibition against the gift of public funds applies to

expenditures of any amount.

2. One of our board members had a recent loss in the family. We want to show our respect and send flowers for the funeral service. That’s not a violation of the gift clause, is it?

Yes, it is. Although it is certainly a noble cause, public expenditures that are driven by personal motives or moral obligations, such as to convey compassion or sympathy are an impermissible use of public funds. (See, Veterans’ Welfare Board v. Riley (1922) 189 Cal. 159, 170 [“[o]ur own decisions consistently hold that an appropriation of public funds based upon a moral obligation as a consideration is a gift within the meaning of the constitution”].) This principle applies to public monies spent for flowers or gifts for occasions such as funerals, birthdays, weddings, anniversaries, or other life events.

Continued on page 36

At LCW we are not solely lawyers. For nearly 40 years, we have been your trusted partners, helping public employers avoid legal problems and navigate issues. Special Districts serve others, and we are honored to serve them in all areas of law, including: Employment Law, Labor Relations, Litigation, Business, Construction, Retirement, Wage & Hour, and Preventive Training.

Don’t Miss LCW presentations at the CSDA Annual Conference: September 26, 2017 CalPERS Update & How to Prepare for and Survive a CalPERS Audit CSDA Jeopardy!

September 27, 2017 Get On Board: Employee Orientation Requirements and Best Practices

To learn how we can help your district visit: www.lcwlegal.com

Legal Brief [continued]

3. Is the settlement of a good faith dispute between the district and a private party a proper use of public funds?

It depends. Assuming the settlement does not exceed the district’s potential liability, the settlement of a good faith dispute between the district and a private party, such as an employee or contractor, is an appropriate use of public funds because the relinquishment of a valid legal claim in return for a settlement is good consideration and establishes

a valid purpose. The use of public funds to settle a claim with no arguable liability, on the other hand, such as a claim that is barred by the statute of limitations, lacks consideration, serves no public purpose, and violates the gift clause. (See, Page v. Mira Costa Community College Dist. (2009) 180 Cal.App.4th 471.)

public has a right to travel on the road?

4. We want to show our staff appreciation with occasional gift certificates, mugs, and free movie tickets. It that a permissible expenditure of public funds?

Not likely. These expenditures are for the primary benefit of employees who receive the gifts and are driven by the motive to convey gratitude. As such, they are likely an impermissible use of public monies.

6. Is a donation to charity a gift of public funds in violation of the gift clause?

Yes. The use of public monies to support nonprofit organizations or charities without consideration, no matter how worthy or benevolent the cause, are impermissible expenditures in violation of the gift clause. (See, 15 McQuillin, The Law of Municipal Corporations (3d ed. 2017) § 39:31 [“[a]ppropriations to charitable or nonprofit associations, without consideration, cannot be made”].)

5. May the district use public funds to repair and maintain a road located on private property if the

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Yes. The use of public funds to improve a roadway which members of the public have a right to travel does not violate the gift clause because it would serve a public purpose. (See, 80 Ops.Cal.Atty.

Gen. 56.)

Conclusion As public agencies, special districts are subject to the constitutional prohibition against gifts of public funds. In reviewing proposed expenditures, districts should exercise due care and diligence in determining whether or not a particular expense serves a primary public purpose. Although the analysis may be somewhat tricky at times, expenses are most likely justified when they will directly benefit the ultimate mission of the district.

Hengameh Safaei, Attorney in the Los Angeles office of Liebert Cassidy Whitmore, provides representation and legal counsel to clients in matters pertaining to employment law, litigation, and business and facilities issues. She has nearly a decade of experience in civil litigation and trial practice in both federal and state courts and advises clients on a variety of issues.

District Snapshots The Mojave Air and Space Port has emerged as the leading aerospace test center for commercial operations in North America. No longer a sleepy high desert general aviation Mojave Airport destination, Mojave Air and Space Port has amassed more first flights and significant newsworthy flight activity than any other airport in the world over the past ten years. In 2004, Mojave Air and Space Port became the only private airport in the U.S. with a commercial spaceflight license after receiving official licensing by the Federal Aviation Administration’s Office of the Associate Administrator for Commercial Space Transportation (AST).

Bythe

Numb3rs 3,300 – acres the Mojave Air and Space Port’s world renowned flight research center spans, hosting the latest and most advanced aeronautical designs.

California Special District – July-August 2017

100 – kilometers in altitude that the SpaceShipOne reached twice in a two-week period. SpaceShipOne was the first privately-funded aircraft to exceed Mach 2 and Mach 3, the first privately-funded spacecraft to exceed 100 km altitude, and the first privately-funded reusable spacecraft.

This was the biggest “first” in the history of Mojave Air and Space Port.

anaging Risk

Summer Exposures

conference highlight 2017 CSDA Annual Conference and Exhibitor Showcase

Summer is once again upon us and Heat Illness Prevention is a key SAFETY topic this time of year. Heat Illness is not restricted to the desert areas of California. Heat Illness can occur where employees are exposed to changes in outside temperatures and working conditions.

The body normally cools itself by sweating. During hot weather, especially with high humidity, sweating isn’t enough.

Body temperature can rise to dangerous levels if you don’t drink enough water and rest in the shade. You can suffer from heat exhaustion or heat stroke.

A proud California Special Districts Alliance partner.

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breakout session

Gender Identity in the Workplace September 27, 2017 11:00 a.m. - 12:15 p.m.

In 2014 alone, 2,630 workers suffered from heat illness and 18 died from heat stroke and related causes on the job. Heat illnesses and deaths are preventable.

Employers must protect workers from excessive heat.

Under OSHA law, employers are responsible for providing workplaces free of known safety hazards.

This includes protecting workers from extreme heat. An employer with workers exposed to high temperatures should establish a complete heat illness prevention program.

Officers

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

Members of the Board

David Aranda, SDA, Mountain Meadows Community Services District Muril Clift Mike Scheafer, Costa Mesa Sanitary District Robert Swan, Groveland Community Services District

• Provide workers with water, rest and shade.

• Allow new or returning workers to gradually increase workloads and take more frequent breaks as they acclimatize, or build a tolerance for working in the heat.

• Plan for emergencies and train workers on prevention.

• Monitor workers for signs of illness.

To prevent heat related illness and fatalities: • Drink water every 15 minutes, even if you are not thirsty.

• Rest in the shade to cool down.

• Wear a hat and light-colored clothing.

• Learn the signs of heat illness and what to do in an emergency.

• Keep an eye on fellow workers.

• “Easy does it” on your first days of work in the heat. You need to get used to it.

Working in full sunlight can increase heat index values by 15 degrees Fahrenheit.

Keep this in mind and plan additional precautions for working in these conditions.

Who is affected?

Any worker exposed to hot and humid conditions is at risk of heat illness, especially those doing heavy work tasks or using bulky protective clothing and equipment.

Some workers might be at greater risk than others if they have not built up a tolerance to hot conditions, including new workers, temporary workers, or those returning to work after a week or more off. All workers are at risk during a heat wave.

Industries most affected by heatrelated illness are: construction; trade, transportation and utilities; agriculture; building, grounds maintenance; landscaping services; and support activities for oil and gas operations.

California Special District – July-August 2017

Consultants

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

SDRMA Staff

Gregory S. Hall, ARM, Chief Executive Officer C. Paul Frydendal, CPA, Chief Operating Officer Dennis Timoney, ARM, Chief Risk Officer Ellen Doughty, ARM, Chief Member Services Officer Heather Thomson, CPA, Chief Financial Officer Debbie Yokota, AIC, Claims Manager Wendy Tucker, Member Services Manager Susan Swanson, CPA, Finance Manager Alana Little, Senior HR/Health Benefits Manager Danny Pena, Senior Claims Examiner Sarah Dronberger, HR/Health Benefits Specialist Heidi Singer, Claims Examiner Michelle Halverson, Accountant Rajnish Raj, Accounting Technician Alexandra Santos, Member Services Specialist Kayla Kuhns, Member Services Specialist

What to do if a worker becomes ill?

Call a supervisor for help. If a supervisor is not available, call 911. Have someone stay with the worker until help arrives.

Another potential exposure employees who work outdoors is tick bites. While it is a good idea to take preventive measures against ticks year-round, be extra vigilant in warmer months (April – September) when ticks are most active.

Avoid direct contact with ticks • Avoid wooded and brushy areas with high grass and leaf litter.

• Walk in the center of trails.

Repel ticks on skin and clothing • Use repellent that contains 20 percent or more DEET, picaridin, or IR3535 on exposed skin for protection that lasts several hours. o Always follow product instructions. Parents should apply this product to their children, avoiding hands, eyes, and mouth.

• Use products that contain permethrin on clothing. Treat clothing and gear, such as boots, pants, socks and tents with products containing 0.5% permethrin. It remains protective through several washings. Pretreated clothing is available and may be protective longer.

• The Environmental Protection Agency (EPA) has an online tool to help you select the repellent that is best for you and your family found at https://www.epa.gov/ insect-repellents/find-repellentright-you.

Find and remove ticks from your body • Bathe or shower as soon as possible after coming indoors (preferably within 2 hours) to wash off and more easily find ticks that are crawling on you.

• Conduct a full-body tick check using a hand-held or full-length mirror to view all parts of your body upon return from tick-infested areas. Parents should check their children for ticks under the arms, in and around the ears, inside the belly button, behind the knees, between the legs, around the waist, and especially in their hair.

• Examine gear and pets. Ticks can ride into the home on clothing and pets, then attach to a person later, so carefully examine pets, coats, and day packs.

• Tumble dry clothes in a dryer on high heat for 10 minutes to kill ticks on dry clothing after you come indoors. o If the clothes are damp, additional time may be needed. o If the clothes require washing first, hot water is recommended. Cold and medium temperature water will not kill ticks effectively. If the clothes cannot be washed in hot water, tumble dry on low heat for 90 minutes or high heat for 60 minutes. The clothes should be warm and completely dry.

Please contact SDRMA Chief Risk Officer Dennis Timoney at 800.537.7790 or email at dtimoney@sdrma.org for more information.

Money Matters GASB Statements 74 & 75: What You Really Need to Know

By Demsey, Filliger, & Associates

conference highlight 2017 CSDA Annual Conference and Exhibitor Showcase

Does your district provide “Other Post-Employment Benefits� (OPEB) such as healthcare to retirees?

If so, GASB Statements 74 and 75 apply to you.

Fortunately, these new accounting standards for the most part mirror recent changes made to the accounting standards for your pension plans through GASB Statements 67 and 68.

GASB 74, effective for fiscal years beginning after June 15, 2016, is a guide to placing the correct numbers within your balance sheet on your financial statements.

Previously these numbers might have been buried deep in footnotes in your audit or comprehensive annual financial report (CAFR), with labels derived

CSDA F C

A proud California Special Districts Alliance partner.

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breakout session

Successful Strategies for Utilizing Debt September 26, 2017 2:00 - 3:15 p.m.

from actuarial nomenclature. Now, these numbers must be translated into accounting labels so they can be combined with other similarly named assets and liabilities.

GASB 75, required for fiscal years beginning after June 15, 2017, is a guide to establishing standards for recognizing and measuring liabilities that appear in your actuarial report. For the first time, deferred outflows and inflows of resources will be an exhibit in reports. You will most likely see a change in the manner of actuarial calculations due to the use of a specific actuarial method. Sensitivity testing and liabilities as a percent of payroll will be new exhibits as well.

Officers

Jo MacKenzie, President, Vista Irrigation District Leslie Keane, Vice President, Orange County Cemetery District Paul Hughes, Secretary, South Tahoe Public Utilities District Matthew McCue, Treasurer, Mission Springs Water District

CSDA F C

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

Members of the Board

Alex Brandon, Phelan Pinon Hills Community Services District Glenn Lazof, Regional Government Services Authority Vince Ferrante, Moss Landing Harbor District

Consultants

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

In the past this data was updated every three years, at a minimum.

Now, the work must be performed every other year. The complexity of the actuarial calculations has increased and additional information, sensitivity testing, and deferred inflows and outflows need to be determined.

CSDAFC Staff

Neil McCormick, CEO Cathrine Lemaire, Program Manager Beth Hummel, Executive Assistant Rick Wood, Finance & Administrative Director

THE IMPLEMENTATION OF GASB 68 IMPACTS AGENCIES’ BALANCE SHEETS

How do you get prepared for all of this? First, reach out to your auditor as soon as possible. Review your most recent audit or CAFR and ask how your next statement (most likely June 30, 2017) will be different. That should inform you about the application of GASB No. 74. Follow that with questions about the June 30, 2018 fiscal year end and the application of GASB No. 75.

Establish a timeline for the completion of the financial statements.

Next, contact your provider of actuarial and consulting services.

Given the deadline, find out when the actuary will need plan, employee, and financial data to complete a report. You may find that your attention to Other Postemployment Medical Benefits begins much earlier in the year.

Below are highlights of GASB No. 74 and GASB No. 75.

Summaries of the new standards are found at www.gasb.org.

Statement No. 74 The objective of Statement 74 is to improve external financial reports of state and local governmental OPEB plans for making decisions and assessing accountability. The specific provisions are as follows: • For OPEB plans that are administered through trusts the Statement requires two financial statements: - a statement of fiduciary net position; and - a statement of changes in fiduciary net position.

• Plans also are required to disclose information about OPEB plan investments, including: - the plan’s investment policies - concentrations of investments with individual organizations equaling or exceeding five percent of the OPEB plan’s fiduciary net position; and - the annual money-weighted rate of return on plan investments.

• A new item will be reporting the plan’s fiduciary net position as a percentage of the total liability.

• Calculations will also be required to test the sensitivity of the measure of the net OPEB liability to changes in the discount rate and changes in the healthcare cost trend rate.

Continued on page 46

California Special District – July-August 2017

Agencies’ balance sheets were impacted with the implementation of GASB 68 in 2014, when unfunded pension liabilities began being reported as a line item. With the CalPERS Board recently approving a plan to reduce the assumed Rate of Return (discount rate) from 7.5% to 7.0% over the next three years, pension plans funding goals will rely less upon investment returns and lean more on employer contributions to reach funding goals. This adds additional upward pressure on pension contribution rates, ranging from 75-100% increases over five years.

One way agencies can prepare for these looming rate increases is to set aside funds into a pension rate stabilization trust (prefunding). A trust allows agencies to maintain local control over ear-marked future pension payments, invest at a more conservative risk-tolerance level, and build up a fund that can assist in smoothing out contribution rate fluctuations. In addition, all funds in such a trust appear as assets on financial statements, which can help address pension liabilities.

As a further side benefit, credit rating agencies look favorably upon actions to increase flexibility in pension liability management, which may result in improved credit ratings for some agencies and lower borrowing costs.

PARS is a proud CSDA Business Affiliate. Visit www.pars.org for information on prefunding pension liability programs.

[What’s so special]

Wingin’ It

Monterey Peninsula Airport District

conference highlight 2017 CSDA Annual Conference and Exhibitor Showcase

pre-conference tour

Monterey Regional Airport Tour September 25, 2017 12:00 – 3:00 p.m.

The Monterey Peninsula Airport District was created in 1941 and is not incorporated into the city or the county, nor is it a public utility. Since its creation the airport has evolved to continually meet the needs of its users. In doing this, the airport, has seen such dignitaries as Pope John Paul II, John F. Kennedy, and many other stars and celebrities. It has distinguished itself as an outstanding contributor to the local community and the National Transportation Plan. The Monterey Regional Airport remains dedicated to providing a solid platform for its local community and the nation as a whole.

Last year the Monterey Regional Airport celebrated its 75th Anniversary. How has the airport evolved over the years to keep up with the ever-changing airline industry?

California Special District asked the Monterey Peninsula Airport District to discuss how it operates and meets the needs of the local community.

We are also looking to add more carriers with new non-stop destinations to better meet the needs of our users.”

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“We are investing in the future of aviation and working hard to prepare for what the aviation industry will look like in another 75 years.” says Mike La Pier, Executive Director, “We will use creative measures toward adopting new strategic initiatives to keep up with the evolving airline industry and target economic development opportunities.

Monterey Peninsula Airport District Established: 1941 District Size: 53 square miles Population: 86,000

Created as a special district to meet the needs of the community it serves, how has the Monterey Regional Airport distinguished itself as a valuable asset to the Monterey area?

From an economic standpoint, it pumps an estimated $302.4 million annually into the region’s economy and creates support for 2,411 jobs. In 2015, over 362,000 passengers traveled through Monterey.

The cost of maintaining an airport is an investment which contributes to the growth of jobs and economic output, which yields impressive benefits to the region. The airport has served as the gateway to welcoming commerce and visitors into the region and providing outward travel to national destinations and beyond. The airport strives to maintain its role as an important link to the national air transportation system for Monterey County.

Location: Website: Budget:

Monterey and Santa Cruz Counties www.montereyairport.com $8.6 million

The airport is currently featuring two exhibitions: “Feeling Groovy” on the mezzanine gallery and Winners’ Circle in the Youth Gallery. How did the airport get involved with these projects? How often are exhibitions featured throughout the year?

exhibits per year and incorporate a Young Artist Gallery Opening reception for family, friends, and the community. Certificates are provided to all youth contributors.

The Monterey Regional Airport has been showcasing art in the terminal building since 1987 and currently includes multiple exhibition areas. The goal of the art program is to utilize designated terminal space to showcase Monterey County artists and private and cultural institution collections for the enjoyment of airport users and local residents. The Mezzanine Gallery exhibit changes annually, depicting a specific theme related to the unique culture, history, and art of the region.

There are two permanent exhibits at the airport: 1. Aviation Legends tells the stories of military heroes that called Monterey home and some of their amazing accomplishments.

2. Pioneering Women of Monterey County presents a glimpse of the many prominent women who have contributed to Monterey County.

What can attendees of the airport’s pre-conference tour look forward to experiencing?

Attendees can look forward to a short briefing of the history of Monterey Regional Airport and current initiatives that the airport is The Youth Gallery showcase includes paintings, drawings, or photographs designed working on. Next, through a tour of the property, they can see first-hand, some of the by young people typically in conjunction projects that we have completed. with a school art program. There are three

The Monterey Regional Airport is a “non-hub” airport. What does that mean?

The Federal Aviation Administration (FAA) defines a Non-hub airport as an airport with 10,000 or more annual enplanements but less than 0.05 percent of the country’s annual passenger boardings. Non-Hub Airports have commercial service into and out of the airport as an ultimate destination. In 2016, over 394,923 passengers traveled into and out of Monterey with approximately 30 commercial airline flights each day.

In addition to the commercial airline service, there were 100,256 local, air taxi/ commuter, and corporate planes that flew out of Monterey Regional Airport in 2016. These additional airplane operations support the Monterey Region as a destination for tourism, golf, military and agriculture to name a few.

California Special District – July-August 2017

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Money Matters [continued] Statement No. 75 Statement 75 requires the following for agencies with more than 100 active and retired employees: • The actuarial present value of projected benefit payments be attributed to periods of employee service using a specified actuarial cost method with each period’s service cost determined as a level percentage of pay. The actuarial present value is required to be attributed for each employee individually, from the first period in which the employee provides service under the benefit terms, through the period in which the employee exits active service.

• Unless otherwise specified, all assumptions underlying the determination of the total OPEB liability and related measures set forth are required to be made in conformity with Actuarial Standards of Practice issued by the Actuarial Standards Board.

• Changes in the net OPEB liability that have not been included in the OPEB expense are required to be reported as deferred outflows of resources or deferred inflows of resources related to OPEB. As a

note: The expense and deferred outflows of resources and deferred inflows of resources result from changes in the components of the net OPEB liability—that is, changes in the total OPEB liability and in the OPEB plan’s fiduciary net position.

Should your agency have a total of fewer than 100 active and retired employees, you may have been taking advantage of the Alternative Measurement Method (AMM). Applying this method to determining and reporting Other Postemployment Medical Benefits (OPEBS) liabilities was intended to be a simplified, less expensive option. The AMM provisions have been carried forward from GASB 63 and 65 to GASB 74 and 75, but your costs to obtain and report actuarial information are likely to increase.

Demsey, Filliger & Associates, LLC is a provider of actuarial services to public sector entities in California. The firm works with the California School Boards Association to provide smaller agencies with an AMM to determine and report OPEB liabilities. Contact Alest Walker at 916.669.2603 or awalker@csba.org for more information.

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PRSRT STD U.S. Postage PAID Permit No. 316 Sacramento, CA

CW_092_051517_CSDA_people_ad_06_16_dAf.pdf

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THINKING THAT HOLDS WATER. From large cities to small districts and private landowners, Barbara Brenner has assisted a wide range of clients across California with water rights and water quality issues. As a partner at Churchwell White LLP, thought-leader and recognized figure in the California water community for over 20 years, Barbara has the experience to back up her reputation. That’s why the City of Dixon knew they were in good hands when they decided they wanted greater control over their own water rates and supply. Sure enough, Barbara was able to guide the project through the development of a new water code, transfer agreement negotiations, and securing the necessary permits from the State Water Resources Control Board—on time and without breaking a sweat.

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