Water Board Roles, Policies and Responsibilities - RCAC

Water Board Roles, Policies

and Responsibilities

RCAC 2015

Online Training Series

WELCOME!

This training is presented by RCAC with

funding provided by the California State

Revolving Fund (SRFCA) from the California

State Water Resources Control Board,

Division of Drinking Water (DDW)

Your Moderator Today

Mary Fleming

Sacramento, CA

mfleming@rcac.org

The Rural Community

Assistance Partnership

RCAC

RCAC Programs

Affordable housing

Community facilities

Water and wastewater infrastructure financing

(Loan Fund)

Classroom and online training

On-site technical assistance

Median Household Income (MHI) surveys

Communication Tour

Introduction to the online

“Virtual Classroom”

Control

Tabs

Audio

Controls

Attendee

List

Today’s

Materials

Performance Assessment

Rating Tool (PART)

4 to 6 weeks from today

Email w/ today’s workshop in subject line

3 questions – 3 minutes maximum

How did you use the information that was

presented today?

Funders are looking for positive changes

Help us continue these free workshops!

Your Presenter Today…

Jean Thompson-Ibbeson Lockeford, CA

jthompson@rcac.org

Water Board Roles, Policies

and Responsibilities

RCAC 2015

Online Training Series

Poll Time!

Question 1: Who’s here today?

Poll Time!

Question 2: If you answered “other”....

Legal Actions Announced

In Pinedale Water Tank Fatality

Story on Page B3

Local Water

Officials Facing

Allegations

Of Negligence,

Mismanagement

Learning Objectives

What’s my job?

What’s this TMF thing anyway?

Legal responsibilities

The importance of good policies

Wrap-up & evaluation

Exactly What Is My Job

Anyway?

The Good Old Days (5 Years Ago)

Fishing holes

Deer season

Any money in the bank?

Keep rates low!

Adjourn!

MEETING AGENDA:

How About Today?

Responsibilities!

Expectations!

Accountability!

Easy to get lost in the

details

Why Do Boards Exist?

You have customers!

Focus on the ENDS (the mission)

Set guidelines for management and staff to develop the MEANS

ENDS

MEANS

The Other Pieces Of The Puzzle…

Your S/O/M

Staff

Customers

Physical assets

So Your Job Is…

Make sure all the pieces of the puzzle

are working together to…

Serve your customers

Protect public health

Stay in business

EPA’s Capacity Development Concept

EPA’s Capacity Development Concept

Consolidation Feasibility

System Description

Certified Operators

Source Capacity

Operations Plan

Training

EPA’s Capacity Development Concept

Ownership

Organization

Water Rights

Emergency/Disaster Response Plan

Policies

EPA’s Capacity Development Concept

Budget projection

Capital improvement plan

Budget controls

Your System’s Assets

Public Health

Where To Find Answers…

CDPH Web Tour

http://www.waterboards.ca.gov/drinking_water/certlic/drinkingwa

ter/TMF.shtml

Your Legal Responsibilities

What Legal Responsibilities?

Board members have legal duties to the

organizations they serve!

Loyalty

Due diligence

Care

Derived from common law

Compliance With State

and Federal Laws

Legal reference

materials available?

Provide access to

new members

All members should

read and understand

them

Laws…? What Laws?

Text your answer into the chat message box

Who Is This Ralph Brown Guy Anyway?

And what did we do

to offend him??

They’re out

to get us!

A Few Of Our Favorites…

Brown Act

Public Records Act

Political Reform Act

Skelly vs SPB (1975)

SB-796 (Bounty Hunter)

http://leginfo.legislature.ca.gov/faces/codes.xhtml

Assembly Bill 54

Amends Corporate Code

Section 14300 of, and to add Sections

14300.5, 14301.1,14301.2, and 14301.3

Amends Government Code

Sections 56375 and 56430

Adds to the Health and Safety Code,

relating to drinking water

To add Section 116760.65 to, and to add

Article 12 to Chapter 4 of Part 12 of the

Division 104.

Introduction To AB 54

Defines “mutual water company”

Loosens SRF funding criteria

Comply with “California Waterworks Standards”

Levy assessment to pay for SDWA violations

when fine exceeds 5% annual budget

Introduction To AB 54

Submit map to Local Agency Formation

Commission (LAFCO) showing water system

boundaries by December 31, 2012

Prohibits expanding boundaries without LAFCO

approval

Provide documents to LAFCO as required

LAFCO municipal service review

Maintain financial reserve funds

AB 54 Requirements For Board

Members

Pertains to all mutual water companies

Each board member within six months of taking

office

Two hours course offered by a qualified trainer

Course must cover the basic duties of board

members of a mutual water company

Enforced by the California Department of Public

Health

AB 54

Four Basic Training Requirements

The duty of a corporate director;

Avoid contractual conflicts of interest

Fiduciary duties

Public water system duties to provide

water that complies with the Safe

Drinking Water Act

Long term management of a public

water system

AB240 – Why?

Anthony Rendon (D-

Lakewood), Assemblyman

63rd District

3 mutual water companies in

his district with chronic

problems

Assembly Bill 240

Effective January 1, 2014

Adds to Corporate Code

Section 14304,14305, 14306, and14307

Amends Health and Safety Code, relating to

drinking water

Sections 116755

Adds to the Water Code

Section 10531.5

Introduction to AB240

Allows company to record a notice of lien against the real property of a member to secure collection

Open Meeting Act

Budget requirements

Public Record Act

Board members shall repeat training every six years

Introduction to AB240

Section 14304

Allows MWC’s to include in their articles or

bylaws a provision to record a notice of lien

against real property of a member to secure the

collection of rates, charges, and assessments

Requires the company to give at least 20 days

written notice to the member

Doesn’t include a mandatory process for releasing

the lien, but you should include a process in your

articles or bylaws

Introduction to AB240

Sections 14305 -14307

This section shall be known and may be

cited as the “Mutual Water Company Open

Meeting Act”

Note: Only applies to MWC’s operating a

public water system serving 15 or more

service connections.

Mutual Water Company Open Meeting Act

Must provide notice of a meeting to eligible

persons at least four day in advance, including the

agenda.

Except for an emergency meeting or meetings

held solely in executive session, at least two

days notice.

Any eligible person may attend the board

meeting, including a teleconference meeting, but

must provide 24 hour written notice.

MWC Open Meeting Act

Notice shall be given by;

Posting in a prominent, publicly accessible place

or places, or

by mail, at the address requested by eligible

persons, or

by delivery to each unit served, or

with the consent of eligible person, by electronic

means.

MWC Open Meeting Act

An “eligible person” means

member of the company, or

an occupant of a property served by the

company, or

an elected official of a city or county that

represents persons that receive water service

from the company.

Budget Requirements

Shall adopt, in an open meeting, an annual budget on or before the start of each fiscal year

Shall contract with a CPA or public accountant to make an annual review of the financial records and reports

Shall conform to generally accepted accounting standards

Eligible persons may request a copy, and shall reimburse the MWC for the costs of providing the report

Section 14307 – Records Act

Unless its governing

documents impose a more

stringent standards, a MWC

shall make the following

records available upon request

to an eligible person....

Records Act continued

Agendas and minutes of board meetings.

Copy of annual budget adopted.

Copy of an audit report.

Copy of any records reporting results of water quality

test.

Copy of annual report.

Training Requirements

Section 116755

Within six months of taking office must obtain

two hours of training.

Every six years if re-elected, and have already

completed the course.

AB 1234 (Need to Know)

Prevent personal financial interests

from influencing decisions

Limit personal advantages and perks

Laws relating to open government

Fair process and impartial decision

making

Promotes Ethics By….

Requiring public disclosure

of information to hold public

officials accountable

Promotes “Fiduciary

Responsibility”

AB 1234 Requirements

State, County and Local officials

Who are compensated for service

Required 2 hours of training every two

years

Ethics principles and laws

Guiding Principle – No Personal

Financial Gain

Intent of Law;

Decisions based solely on the

public’s interest

Personal financial benefit not to

affect decision making process

Conduct Business Only As A Board

Individual board members may not:

_________________________

Decisions binding on the utility must be

made by the board as a whole

Avoid Conflict Of Interest

(Or The Appearance Of One!)

Personal interest

Financial interest

Family

Friends

Should you

abstain?

Ethic Law Principles for Public

Servants

Institute for Local Government

www.ca-ilg.org

(916) 444-7535

Key things to know $5 (set of five)

Follow Generally Accepted

Accounting Principles (GAAP)

Bookkeeping and

cash management

Purchasing

Record keeping

Auditing

Ensure That Revenue Covers

Expenses Plus Reserves

Your utility is a business

– operate like one!

4 types of reserves

Examine rates often!

$1 million in infrastructure…

How much per year should you put into the CIP reserves?

Text your answer into the chat message box

Boards Must Direct!

Remain in charge

Remain engaged

Follow rules of order

But what about

delegation??

Resource Guide

Roberts Rules of Order

IN PLAIN ENGLISH WWW.CSDA.NET

$10 members

$15 non-members

Protect Utility Assets

Guard against misuse /

misappropriation

Know your physical assets

Know your budget process

Understand expenditures

Ask for clarification if needed

Be Involved In Major Contracts

Temptation to delegate

Negotiations/administration

Approval of major contracting?

Attend As Many Meetings As

Possible

Duty of loyalty

Duty of care

Take an active

interest

Is attendance really a

hardship?

Policies… Do We Really

Need Them?

What Do Policies Look Like?

Clarify roles & responsibilities

Standardize procedures

Establish consistency

Set boundaries

Establish standards of

conduct

What Makes A Good Policy?

Clearly written

Fair and equitable

Readily available

Conforms to state and federal laws

Typical Water Utility Policies

Customer service policies

Governance policies

Financial policies

Personnel policies

Poll Question…

How would you describe your water

system’s current set of policies?

A. Good

B. Fair

C. Poor or outdated

D. WHAT policies?

Where Can I Find A

Set Of Sample Policies?

California Special Districts Association

www.csda.net

$325 members $425 (first time purchase)

$125 members $275 (update)

CSDA Policy Manual Contents

Typical Policy (example)

POLICY TITLE: Budget Preparation

POLICY NUMBER: 3020

QUESTION: Who should be involved?

Typical Policy (example)

3020.10 An annual budget proposal shall be prepared by the General Manager [FINANCE DIRECTOR, or other responsible managing employee].

3020.20 Prior to review by the Board of Directors, the Board's Finance Committee shall meet with the General Manager [FINANCE DIRECTOR, or other responsible managing employee] and review his/her annual budget proposal.

3020.30 The proposed annual budget as reviewed and amended by the Finance Committee shall be reviewed by the Board at its regular meeting in [MONTH].

3020.40 The proposed annual budget as amended by the Board during its review shall be adopted at its regular meeting in [MONTH].

POLICY TITLE: Budget Preparation

POLICY NUMBER: 3020

Policies Summary

Key responsibility!

Many forms and locations

Combine into one document

if possible

Questions?

Text your questions and comments anytime during the session

Thank You For Attending!

We look forward to “seeing” you

in future online classes

jthompson@rcac.org

mfleming@rcac.org

Session Evaluation

Go to file, click on “close or leave session”

Evaluation automatically pops up

If it does not, one will be e-mailed to you within 24 hours

We need these for your contact hours!