Loading...
HomeMy WebLinkAboutMINUTES - 08041987 - 2.12 I� 2. 12 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on August 4, 1987 , by the following vote: AYES: Supervisors Powers , Fanden, Schroder, Torlakson, McPeak NOES: None ABSENT: None ABSTAIN: None SUBJECT: Delta Ferry Authority Agreement, Jersey Island Area The Board considered the report containing the recommen- dations of the Public Works Director regarding the renewal proposal for continued County participation in the Delta Ferry Authority. (A copy of the Public Works Director's report is attached and included as a part of this order. ) Milton Kubicek, Deputy Public Works Director, explained that approval of the recommendations will enable the County to gra- dually transfer ownership of the Victory II vessel to the Bradfor and Webb Tract Reclamation Districts over a five-year term with the County's share of the "Operation and Maintenance" costs limited to 60 percent of those costs (estimated to be $27,000) from July 1, 1987. through September 30 , 1987 . Richard Rockwell , attorney and secretary for Reclamation District No. 2059 (Bradford Island) , P. 0. Box 129 , Antioch, spoke on the District ' s financial problems which began in 1981 . Mr. Rockwell referred to storm damage; levee breaks, ineligibility for FEMA funds ; costs incurred in the repair of the levee break and de- watering and restoration of the island. He noted that the District had a financial liability of $1,175,889 . Mr. Rockwell advised that the District has been making an effort to reduce that obligation, but it cannot reduce it at the speed that was anticipated because the annual assessments , that are necessary to operate and maintain the District, contribute to the operation of the ferry and liquidation of the long-term debt. Mr. Rockwell also referred to a potential additional liability of $1,676 ,000 in a pending claim to the State . He advised that Reclamation District No. 2059 cannot afford to meet the additional financial obligation that is being recommended by the Public Works Director. Dante J. Nomellini , counsel and secretary for Reclamation District No. 2026 (Webb Tract) , P. 0. Box 1461 , Stockton, spoke of the storm damage sustained by the Island in January 1981 resulting in a levee break and innundation of the island. He advised that it was the decision of the Reclamation District to restore the island for not only the protection of the land within the island, but for protection of the water quality of the Delta as well as the main- tenance of the Delta as a valuable resource. Mr. Nomellini also spoke of storm damage sustained by the island in 1981 ; major levee problems associated with inadequate work performed by the Corps of Engineers in reclaiming the island ; repair cost and additional storm damage and flooding that occurred from 1983 through 1986 . Mr. Nomellini advised that the District has incurred a debt of approxi- mately $2 million. He submitted a balance sheet reflecting the District 's financial condition. Since Webb Tract is essentially agricultural, Mr. Nomellini noted that the District 's ability to pay is very limited because of major delinquencies with every assessment levied. Mr. Nomellini proposed that all parties continue the Delta Ferry Authority agreement on a year-to-year basis with review by both parties in June 1988 and to require the two Reclamation Districts to increase their contribution from the present level which is $23,000 to $35 ,000 . He added that approval of this proposal will afford the Districts additional time to develop a long-term solution. In response to a question of Supervisor Schroder, Mr. Nomellini advised that the islands are privately owned. He indicated that on Webb Tract the farmers use the ferry to transport men, equipment , and crops, and that on Bradford Island in addition to the agricultural concerns , there are people who have permanent residences on the Island and use the ferry to transport children to meet the school bus. Supervisor Torlakson referred to the lack of assistance from the State Legislature in providing funds for the restoration and repair of the levees, as well as aid to the Delta Islands. He commented on the fiscal crises confronting the County and the limited revenue sources to fund needed county programs. Supervisor Torlakson advised that it is with reluctance he would have to sup- port the recommendations of the Public Works Director. However, he recommended that he and Public Works staff be authorized to meet with the property owners and the attorneys of the two districts to pursue other solutions including legislative relief. Supervisor Powers noted that he was reluctant to enter into the agreement five years ago but did so because of the understanding that the property owners would arrive at a solution to allow them to operate the ferry. He referred to the District's financial statement reflecting a $2 million deficit. He expressed concern with giving the ferry to a deficit organization which could be used as an asset in the case of bankruptcy for disposal by the Court. Supervisor Powers stated that the problems in the Delta can- not be solved by Contra Costa County alone but that the Delta is the responsibility and obligation of all the people in the State of California. Supervisor Powers advised that he could support the recommendations of the Public Works Director with the exception of the asset transfer portion of the proposal . Supervisors Schroder and Fanden expressed support for Supervisor Powers position on this matter. Supervisor McPeak proposed dedicating the property taxes from the two islands (amounting to $44,000) to fund the ferry opera- tion for this year. There was no support for this proposal. There being no further discussion, IT IS BY THE BOARD ORDERED that the recommendations of the Public Works Director are APPROVED as noted on the attachment with the exception of Recommendation No. 1C providing for the transfer of ownership of the Victory II vessel. IT IS FURTHER ORDERED that Supervisor Torlakson and Public Works staff are REQUESTED to meet with representatives of Reclamation Districts 2059 and 2062 to seek resolution to their fiscal problems. 1 hereby certify that this is a true and.^.asr2ct^,,,^.;r if an action taken and entered an the minutes ci the Board of Supervisors on the date shown. ATTESTED: / , Z LF 2 PHIL BATCH1340R, Ciork of the Board cc: Supervisor Torlakson of Supervisors and County Administrator Public Works Director Mr. Rockwell Mr. Nomellini By �_ _ Deputy County Administrator County Counsel T0: BOARD OF SUPERVISORS FROM: J. MICHAEL WALFORD, PUBLIC WORKS DIRECTOR DATE: July 14, 1987 SUBJECT: Delta Ferry Authority Agreement, 7854-6 2319, Jersey Island Area Specific Requests or Recommendations 8 Background 3 Justification I . RECOMMENDED ACTION: 1. APPROVE the following renewal proposal for continued County participation in the Delta Ferry Authority: �. The renewal will be fo:- a period of five years beginmi;:7 Ju' ? , Ino', b. The "Operation and Maintenance" expenses shall include the costs of insurance and slip maintenance, The County's share of the "Operation and Maintenance" costs shall be limited to 60% of said costs from July 1 , 1987 through September 30, 1987. Commencing on October 1 , 1987 the Reclamation Districts shall fully fund the .'"Operation and Maintenance"- costs through -assessments or tolls collected-_from all _ users of the ferry system. C. The County will gradually transfer ownership of the Victory II vessel to the Bradford and Webb Tract Reclamation Districts over the five year term as additional financial assistance at the rate indicated below: June 30, 1989 25% June 30, 1990 25% June 30, 1991 - 25% June 30, 1992 25% Total 100% 2. APPROVE and AUTHORIZE the chair to execute an amendment to the existing Joint Powers Agreement between the County and Reclamation Districts 2026 and 2059 providing for continued operation of the Delta Ferry Authority through September 30, 1987, pending execution of the renewal agreement. Continued on attachment: X yes Signature: J Recommendation of County Administrator _ Recommendation of Board Committee Approve Other: _ Signature(s): Actio Board on: Approved as Recommended Other Vote of Supervisors I HEREBY CERT THAT THIS IS A TRUE AND CORRE OPY OF AN ACTION TAKEN Unanimous (Absent AND E ED ON THE MINUTES OF THE Ayes: Noes: B OF SUPERVISORS ON DATE SHOWN. Absent: Abstain: Attested Orig. Div.: Public Works Phil Batchelor cc: County Administrator Clerk of the Board of Auditor Controller Supervisors and County Public Works Department inistrator Accounting Administrative rvices Reclamation 'strict 2026 (via PWD) Reclama n District 2059 (via PWD) By EPUTY MFK- :14. t7 II. FINANCIAL IMPACT: The County's share of the "Operation and Maintenance" costs for the first three months in FY1987-88 is estimated to be $27,000. The purchase and rehabilitation of the Victory II vessel costs the County approximately $227,000. The present value of the vessel is unknown without a vessel survey. The proposed renewal agreement would transfer this asset to Reclamation Districts 2026 and 2059. III . REASONS FOR RECOMMENDATION/BACKGROUND: .. .._ . . •• ..'y n.., Crq Anrnemnnt with On iliaic-i, .i 1, A U2I L,.:: u::.AT.. .. „-r... :..�:'� _�"_ ?i... a .. ,i��,. :ti . . Reclamation Districts 2026 and 2059 establishing the Delta Ferry Authority to provide ferry servicebetween Jersey Island and Bradford Island and Webb Tract. The agreement provided for the County to purchase and rehabilitate the Victory II vessel , to contribute 60% of the "Operation and Maintenance" costs and to assume the cost of insurance and ferry slip maintenance. Per the agrement, the County's support of the ferry service was to terminate in five years. The 1984-85 Contra Costa County Grand Jury Final Report recommended that the County's support of the ferry service should be terminated. Their report suggested a gradual diminishing of County support. During the Board of Supervisors Fiscal Year 1986-87 Finance Committee Budget Meeting direction was given to staff to negotiate a new agreement providing for ultimate termination of County financial support of the ferry service. CONSEQUENCES OF NEGATIVE ACTION: The present Joint Powers Agreement and approved time extension expired on June 30, 1987. No action will result in termination of the Delta Ferry Authority and ferry service.