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HomeMy WebLinkAboutMINUTES - 06262012 - C.18RECOMMENDATION(S): ADOPT Resolution No. 2012/283 approving deposit of $200,000 by the Contra Costa County Flood Control & Water Conservation District (FC District) to the Flood Control Revolving Fund and approving a loan from the Flood Control Revolving Fund in the amount of $200,000 to Flood Control Zone 9 (FCZ 9) for various activities regarding Pinole Creek, Pinole area. (100% Flood Control District Funds) FISCAL IMPACT: Funds are deposited by the FC District into the Flood Control Revolving Fund and loaned from the Flood Control Revolving Fund to another drainage entity. FCZ 9 anticipates paying the loan principal of $200,000 and interest back in ten years. BACKGROUND: The FC District formed the property-tax based entity FCZ 9 and partnered with the U.S. Army Corps of Engineers (USACE) in the 1960’s to construct flood protection improvements on Pinole Creek for the communities of Hercules and Pinole between Interstate 80 and San Pablo Bay. Prior to State Proposition 13 in 1978, FCZ 9 had adequate tax revenue and a balance on hand. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/26/2012 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Tim Jensen (925) 313-2390 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 26, 2012 David Twa, County Administrator and Clerk of the Board of Supervisors By: STACEY M. BOYD, Deputy cc: Tom Geiger, County Counsel's Office, Bob Campbell, County Auditor-Controller's Office, Wendy Nelson, County Auditor-Controller's Office, R. Mitch Avalon, Deputy Chief Engineer, Mike Carlson, Flood Control, Paul Detjens, Flood Control, Carl Roner, Flood Control, Adrienne Clark, PW Finance, Catherine Windham, Flood Control, Dean Allison, City of Pinole, Tim Jensen, Flood Control C. 18 To:Contra Costa County Flood Control District Board of Supervisors From:Julia R. Bueren, Public Works Director/Chief Engineer Date:June 26, 2012 Contra Costa County Subject:Adopt Resolution Approving Deposit to the Flood Control Revolving Fund and Loan from the Fund to Flood Control Zone 9. Fund 253200 BACKGROUND: (CONT'D) When Proposition 13 was passed, the prior tax rate had been zero, so it was locked in at that rate. The FC District did receive Special District Augmentation Funds to contribute towards FCZ 9, but that program was eliminated by the State in 1992. With the formation of the Countywide Stormwater Utility in 1991, the FC District requested that the cities of Hercules and Pinole contribute a portion of their stormwater fees to assist with maintenance of Pinole Creek, but none has been provided. Since that time, the Flood Control Revolving Fund has made several loans to keep FCZ 9 operating. FCZ 9 continues to have no revenue source. Due to the USACE Operations and Maintenance Agreement and community expectation, the consequence of abandoning FCZ 9 would obligate the FC District to fund the zone. Ultimately, if the FC District is not able to provide these funds, the County would become responsible. In response to the lack of funding for FCZ 9, the FC District has been pursuing alternative funding sources. The first phase was begun in 2004 by partnering with the City of Pinole (City) and the Friends of Pinole Creek to develop a vision for the Pinole Creek watershed. As a result of the visioning process, the City received a $2.6 million River Parkways grant from the State to build a “demonstration project” on lower Pinole Creek. The FC District supported the demonstration project, not only because it would improve flood protection, but because it would increase public interest and allow the City and the FC District to pursue a municipal finance measure to fund perpetual maintenance of Pinole Creek. The first phase of the Pinole Creek Demonstration Project (Project) was completed last fall, providing increased flood protection, riparian habitat, and a recreational trail. The City has grant funding for the second phase of the Project, and the FC District is providing right of way work in support of the Project. Several other funding strategies are being pursued for implementation in the next five to ten years. FCZ 9 has funded several other activities over the past fiscal year. FC District staff coordinated with the City to exchange easements that provide adequate rights of way for the City and FC District to maintain their facilities as part of the Pinole Valley Shopping Center redevelopment project. The FC District has also been providing staff support for the USACE 1135 Program Ecosystem Restoration Project, which will improve habitat and migration for threatened Pacific Coast Steelhead in Pinole Creek. FCZ 9 also incurs annual maintenance expenditures of approximately $25,000 to meet its legal obligation to the USACE to provide flood protection for the community. Similar activities will be performed this next fiscal year. We recommend that the FC District continue to provide funding to FCZ 9 until adequate permanent funding is established. The timeframe to achieve this is anticipated to be ten years. We request that the FC District deposit $200,000 into the Flood Control revolving fund to provide funding for the FCZ 9 fiscal year 2011-12 expenditures and anticipated 2012-13 expenses. CONSEQUENCE OF NEGATIVE ACTION: If the proposed deposit and loan is not approved, the FCZ 9 fund will be depleted and the FC District will take on the liability. In addition, the FC District will lose years of progress toward community support of long-term funding for FCZ 9. CHILDREN'S IMPACT STATEMENT: Not applicable. ATTACHMENTS Resolution No. 2012/283