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HomeMy WebLinkAboutMINUTES - 06061989 - FC.2 TO: BOARD OF SUPERVISORS Contra Finance Committee Costa ....ee'u. County DATE: June 6 , 1989 SUBJECT: DELTA FERRY SUBSIDY SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION I I I RECOMMENDATION: 1 Allocate $10 , 000 from the Special District Augmentation Fund for a one-time contribution to the County Service Area M-1 for fiscal year 1988-89 for the provision of ferry services. 2 . Due to split vote of the Committee, recommend the Board decide on future funding for Delta Ferry. 3 . Authorize Public Works director to arrange for transfer of funds from CSA M-1 to the Delta Ferry Authority on a semi-continuous basis as available. Authorize the transferred funds to be spent for Delta Ferry operations as determined by Public Works Director and Auditor Controller. 4. Refer Regional Measure I funding, advantages and disadvantages of selling the Delta Ferry, and other unresolved issues to the Public Works Department and County Administrator' s Office for future study and report findings to the Board of Supervisors in November 1989 . 5 . Remove this referral from the Finance Committee. FINANCIAL IMPLICATIONS: Implementation of this recommendation requires an allocation of $10 , 000 from the Special District Augmentation Fund (SDAF) to County Service Area M-1 for fiscal year 1988-89 . This allocation will have no effect on present or future anticipated SDAF fundediprojects. The recommendation does not expend General Fund revenue. CONTINUED ON ATTACHMENT: x YES SIGNATURE: _RECOMMENDATION OF COUNTY ADMINISTRATOR —RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S)- NANCY FAHDEN ROBERT SCH_ROZER ACTION OF BOARD ON June 6, 1989 APPROVED AS RECOMMENDED OTHER X Board members discussed the recommendations of the Finance Committee in some detail . On motion-:of Supervisor Powers, §econded by Supervisor Torlakson, IT IS BY THE BOARD ORDERED that $15,000 is allocated from the Special District Augmentation Fund to County Service Area M-1 for Delta Ferry Service, and the Board announced its intent to continue that in the next and subsequent fiscal years. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT AND CORRECT COPY OF AN ACTION TAKEN AYES:—I, IV & V —NOES: II & III AND ENTERED ON THE MINUTES OF THE BOARD ABSENT- ABSTAIN: - OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED June 6, 1989 County Counsel PHIL BATCHELOR,CLERK OF THE BOARD OF Public Works Director SUPERVISORS AND COUNTY ADMINISTRATOR County Auditor-Controller M382 (10/88) BY _DEPUTY U -2- BACKGROUND: On April 4, 1989 the Board of Supervisors agreed to continue current policy of no General Fund or Road Fund allocations for Delta Ferry operations . The Board also voted to continue using County Service Area M-1 ( CSA M-1 ) revenue for Delta Ferry services and authorized a $17 , 000 loan in late January for this purpose. The question of additional funding was referred back to the Finance Committee. Bradford and Webb Tract property. owners and Reclamation Districts 2026 and 2059, who make up 90% of ferry users, would like the County' s total contribution to equal $50, 000. Ideally, CSA M-1 would provide $17 ,000 and the difference of $33 ,000 would come from some other County source. Actual property tax revenue from the islands in fiscal year 1988-89 is less than the requested amount. Bradford and Webb Tract property owners will pay approximately $28,087 to the County General Fund and $15 , 522 to County Service Area M-1 in fiscal year 1988-89 . This general fund contribution must cover the cost of County services required in the region. County policy since September 1987 has been to not fund ferry operations . The Administrator' s Office continues to support this policy, but is .recommending a one-time contribution of $10,000 from Special District Augmentation Fund for calendar year 1989. This exception to policy is recommended with the understanding that local users will continue to look for other funding sources, and in support of the role played by the Delta Ferry in the preservation of water quality in the Delta through the maintenance of island levees. County Service Area M-1 meets the legal qualifications for Special District Augmentation Fund revenues. The Reclamation Districts and County Service Area M-1 did not contribute revenue for fiscal year 1988-89 to the Special District Augmentation Fund (SDAF) and have not done so historically. Contributions from County Service Area M-1, the Reclamation Districts, and local property taxes to County funds are summarized in Table I . The desired amount, about $33 ,000, is larger than the average allocation given to small, non-contributing special districts. The proposed allocation has been limited to $10 ,000 because the County Service Area M-1 has never contributed to SDAF. Also, funding sources other than the County are viable and can be pursued. TABLE I Local .Delta Ferry Users Contribution Fiscal Year 1988-89 Contributions to Local Entity General Fund SDAF Reclamation District 2026 N/A 0 Reclamation District 2059 N/A 0 Webb Tract & Bradford General Property $28 , 087* N/A County Service Area M-1 N/A 0 * Auditor-Controller' s Office, May 1989 . Update on Local Funding Sources - Representatives from Webb Tract and Reclamation District 2026 continue to stand by their offer to pay $50,000 for Delta Ferry operations. Reclamation District 2059 trustees and the majority of Bradford property owners agree with the plan, but do not have the money yet. The District' s trustees want to meet Bradford' s $50,000 obligation through the District ' s operation and maintenance budget. If legal questions regarding the appropriateness of funding the ferry with District revenues can be resolved, Reclamation District 2059 trustees will increase assessments to cover Delta Ferry costs. Both reclamation districts believe the County should pay the balance, $50 , 000 , of ferry service costs. Bradford property owners stress the economic hardships of raising their portion of the cost. Webb Tract representatives believe the ferry is not a private interest, that it is necessary for water quality, and therefore the County should contribute $50 , 000 also. The reclamation districts maintain the levees on the islands and thereby prevent runoff from floods and salt water intrusion. The ferry preserves water quality both directly by providing access to the islands to maintain and assess condition of levees and indirectly by increasing the economic viability of the islands which increases revenue available to the reclamation districts. Higher island property values would benefit other general property tax recipients such as the County. Regional Funding Sources - The Delta Ferry does not qualify for Regional Measure 1 funds, but may in the future. Regional Measure 1 , an initiative passed in 1988 , raised bridge tolls in the San Francisco Bay Area and designated the increased revenue to bridge maintenance and transportation alternatives to bridges. Ferries were one of the alternatives the initiative and accompanying state legislation, meant to encourage in order to relieve bridge congestion. However, the Delta Ferry' s eligibility for Measure 1 funding could possibly be affected by the bond covenants for the Antioch and other river bridges which do not allow revenue from these bridges to be used for competing transportation purposes within a ten mile radius. The Delta Ferry is within ten miles from the Antioch Bridge and thus it may not be eligible for bridge revenues. The Metropolitan Transportation Commission and other designers of Regional Measure 1 did not anticipate this problem and are working to overcome this potential barrier. Tri-Delta Transit Authority continues to be a viable regional funding source, but only as a supplement after other funding sources are secured. CONCLUSION: Ferry service is the responsibility of the Reclamation Districts and local residents, not the County. The importance of the Delta Ferry to water quality, agricultural interests, and other local residents in the Delta is recognized. Unfortunately, the County' s resources are limited and must be distributed among a number of programs that are mandated by law and/or have a higher priority than the Delta Ferry. For this reason, staff recommends continuing the policy of ending County involvement in the Delta Ferry. Staff will research the benefits and costs of selling the ferry and continue to assist local residents in the search for alternative funding sources , specifically Regional Measure 1 revenue. If action by the administrators of the Measure make the revenue available for Delta Ferry-type operations, the Board of Supervisors will be notified. At that time a letter from the Board requesting funds for the ferry would be appropriate. The Finance Committee approved the allocation and authorization of Special District Augmentation Fund revenue for Delta Ferry service for FY 88-89. Supervisor Schroder recommends the Board of Supervisors should make a decision regarding County funding for the ferry in future years. He opposed further use of any revenues on the Ferry and was concerned that the funding issue would come repeatedly before the Board. Supervisor Fanden would like the Board to consider funding the ferry through an SDAF allocation to CSA M-1 on an annual basis when SDAF revenue is allocated.