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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)
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”
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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
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presented today?
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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
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!
