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HomeMy WebLinkAboutMINUTES - 04041989 - FC.1 TO: BOARD OF SUPERVISORS Contra FROM. Finance Committee Costa DATE: April 4, 1989 County srq,'Cea SUBJECT: Delta Ferry Referral SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDED ACTION: 1. That the Board of Supervisors continue their current policy of no General Fund or Road Fund allocations for Delta Ferry operations. 2. Authorize the Public Works Director, subject to the agreement of Reclamation District 2026, to pay bills submitted by Reclamation District No. 2026 in the amount of $10,034. 43, and use of working capital advanced in the amount of $15,000 for the provision of ferry services from October 1, 1987 through August 23 , 1988. 3 . Allocate County Service Area M-1 revenues, established in 1960 to provide and furnish ferry boat services and facilities, to Delta Ferry services. 4. Explore the possibility of using Special District Augmentation Funds to supplement property owner' s revenue raised through Reclamation Districts 2059 and 2026 . 5. Research Regional Measure One funds as a supplemental revenue source and authorize the Chair, Board of Supervisors, to sign a letter requesting funds if the revenue can be used for Delta Ferry operations. 6. Obtain information on the relationship between ferry service, state water quality laws and other legislation governing the delta region and report relevant findings to the Board of Supervisors. 7. Keep this item as a referral to the Finance Committee. CONTINUED ON ATTACHMENT: YES SIGNATURE: Af RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURES:�`'NANC FAHDEN ROBERT SCH- ACTION OF BOARD ON -- April 4, 1989 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT I ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS /ON THE DATE SHOWN. CC: Countv Administrator ATTESTED Public Works PHIL BATCHELOR,CLERK OF THE BOARD OF Countv Counsel SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY M382 (10/88) -2- FINANCIAL IMPACT Implementation of the recommendation will have no impact on County General Funds. Total operating cost is $150,000. The County is being asked to give $50,000, of this amount CSA M-1 revenues of $17,-000 are recommended to be committed. It is unclear whether the balance can be funded by the property owners. BACKGROUND The County has been involved with the provision of ferry service between Jersey, Bradford, and Webb Tract Islands since 1978. During that time, the Board of Supervisors has sought to phase out County General Fund participation and has met with Reclamation Districts 2059 and 2026 and property owners to work towards that end. In March 1981 the County, Reclamation Districts 2059 and 2026 formed a Delta Ferry Authority to provide ferry service with the understanding that at the end of five years the island property owners and reclamation districts would operate the Ferry by themselves. Pressure to eliminate County funding came from the Contra Costa County Grand Jury in 1985 when it issued an opinion opposing County involvement in the funding of ferry operations. Given the Grand Jury' s opinion and the failure of the local ferry users to assume more financial responsibility for ferry operation, the County decided to stop funding the ferry and ferry operations. In August 1987 , the Board authorized County funds of $27,000 for Fiscal Year 1987-88 to operate the Ferry until September 30, 1987. This action removed the County from further financial responsibility for Delta Ferry operations No County funds were appropriated for Delta Ferry operations in Fiscal Year 1988-89. The Ferry has been funded. with revenue from the Reclamation Districts and carryover revenue from the Delta Ferry Authority fund. The Fiscal Year 1986-87 carryover amounted to $48,166.01, and $38,131.58 of this amount has been expended on maintenance of the Ferry. In addition, $10,000 was advanced in 1982-83 and $5,000 was advanced in 1986-87 to be used as working capital by Reclamation District No. 2026 while waiting to be reimbursed for actual expenses incurred and billed to the County for a prior period. The County Administrator' s office recommends the Public Works Director, in his capacity as interim manager of the Delta Ferry Authority, to arrange for the payment of the remaining balance of $10,034. 43 and authorize the Reclamation District to use the $15,000 cash advance toward the $51,969.77 in operating expenses incurred and billed to the Authority by the Reclamation District from October 1, 1987 through August 23 , 1988. On January 31, 1989, the Board of Supervisors approved an advance of $17,000 of County general funds to ensure operation of the Ferry for two months while a financial plan was developed. With the exception of the $10,034 balance discussed above, the $17 ,000 advance is the only money remaining in the Delta Ferry Authority fund. The following funding sources have been reviewed by property owners, the Reclamation Districts, and County staff. New local tax - Bradford and Webb Tract property owners cannot adopt a new tax. According to County Counsel, island property owners cannot raise additional local money through a new tax on property. County Counsel has found that Proposition 62, passed in 1986, severely restricts the ability of local government and districts to levy a special tax on real property for special purposes. Operation of a ferry is not among the allowed special purposes; therefore, the County cannot call an election to approve a levy for a tax on real property for ferry operations. Tolls - Tolls are possible legally, but property owners on both islands oppose them because they believe the administration and accompanying security arrangements would be more costly than the revenues raised. The largest property owner of Webb Tract island has stated that they plan to directly pay their share and refuse to pay a toll. -3- Reclamation District sources - In the past the Reclamation Districts have funded ferry operations. Since Bradford Island property owners are prohibited from levying a new property tax, a number of them looked to Reclamation District 2059 to increase assessments and use the revenue generated to pay for ferry operations. Assemblyman Isenberg' s office has discussed with Bradford property owners and the Reclamation District the possibility of legislation which would permit the district to raise money for ferry operations. Unfortunately, the deadline consideration of the issue by this year' s state legislature has already passed. The remaining funding options would take several months to implement and their feasibility is questionable. As for federal and state revenues,the Delta Ferry does not match eligibility criteria. Federal programs, such as the Urban Mass Transportation Act (UMTA) which provide temporary financing for transit service operations in non-urban areas, are designed to assist transit services for people. Unfortunately vehicles, agricultural products and livestock are a large proportion of Delta Ferry business. Tri-Delta Transit Authority may be interested in providing funding if a solid funding base exists and administrative details are resolved. Tri-Delta would not be a major revenue source for .the Ferry' s financing plan. The consensus reached in earlier meetings between the Public Works Department, Supervisor Torlakson, property owners, and Reclamation Districts was that for the remainder of calendar year 1989, two-thirds of the operating cost, approximately $100,000, would be raised locally and the remainder would be funded by the County or some other source besides the local population and reclamation districts. Because Bradford Island property owners and Reclamation District 2059 have not raised their one-third of the operating cost, it is recommended that the County only authorize use of County Service Area M-1 revenues. The Finance Committee reviewed Delta Ferry funding with Bradford, Webb Tract, and Reclamation District representatives on March 27, 1989. The current operator of the ferry has been able to provide. ferry service for February and March for $10 ,000 and would be able to continue ferry service for another two months with the $10,000 Delta Ferry Authority carryover funds. Bradford residents assured the Finance Committee that they are committed to finding revenue to meet their share of costs and they cited their efforts to pay through reclamation district assessment increases. It is suggested that the availability of Special District Augmentation Funds be explored for ferry operations rather than using General or Road Funds. It is also recommended that research into the use of Regional Measure One funds be conducted. This revenue source is dedicated to bridge maintenance and alternatives to road traffic over regional bridges. The final recommendation deals with the impact of ferry service on the Delta environment, specifically will termination of ferry service harm island maintenance which is required for the preservation of delta water quality.