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TRANSPORTATION, WATER & INFRASTRUCTURE COMMITTEE

Meeting Date:	03/02/2015
Subject: Report on Stormwater Funding
Submitted For:	Julia R. Bueren
Department:	Public Works
Referral No.:	6
Referral Name:	CONSIDER report on Stormwater Funding and take ACTION as appropriate
Presenter:	Tim Jensen, Contra Costa County Flood Control and Water Conservation District	Contact:	Tim Jensen (925)313-2390

Information

Referral History:

Staff presented a draft 2013 Status of Flood Protection Infrastructure to the Transportation, Water & Infrastructure Committee (TWIC) on October 3, 2013. Feedback was incorporated into a report that was accepted by the Board on November 5, 2013. An update entitled, “2014 Annual Report” was accepted by the Board on February 10, 2015, and referred to the TWIC. This report concludes that community outreach events were successful, capital programs made progress, and studies of aging infrastructure and unsustainable service levels continued to highlight some major concerns, primarily regarding financial sustainability.

Referral Update:

We found that the Flood Control District regional flood protection facilities and unincorporated community drainage facilities funding is inadequate. Historical expenditures have been capped due to limited revenue, resulting in service levels being at the bare minimum. After several years of this practice, the outcome has been poor facility conditions and an increasing backlog of deferred maintenance.

The current funding level for our regional and community drainage maintenance is about $5 million per year, which is about 0.4% of our combined infrastructure value ($1.3 billion in 2010 dollars). To meet the industry standard for sustainable maintenance of 2% of infrastructure value, the funding need is about $24 million per year.

When regional planning, capital improvement, and capital replacement needs are added to the maintenance need, the annual funding shortfall is approximately $83 million, as compared to the current revenue of about $11.5 million. We are now including capital replacement needs in our financial planning, because in 2029 the first regional flood protection facility reaches its expected service life of 75 years and will need replacement or major rehabilitation soon thereafter.

Historically, Flood Control District regional flood protection has not needed County General Fund support. Inadequate funding has been managed by reduced service delivery, deferred maintenance, deferred capital improvements, and loans from the Flood Control District. This is not sustainable as the Flood Control District discretionary fund is projected to be depleted in less than 10 years. Once that occurs, there is no backstop source of revenue other than County General Funds. Due to increases in community drainage maintenance costs, the need for County General Funds (provided prior to 1993) has returned.

Current status and next steps:

1. Present the need for General Fund support to the County Administrator. This was completed in January and the CAO has recommended a budget allocation of $700,000 for FY 2015-16. That funding is a small part of the overall need.

2. Most flood protection, drainage, and stormwater agencies statewide suffer from inadequate funding. Proposition 13 froze tax rates at low levels, and Proposition 218 made it difficult to increase revenue. The Flood Control District has been working with the California State Association of Counties and the County Engineers Association of California on a Statewide Stormwater Funding Initiative to exempt stormwater agencies from Proposition 218 voter requirements, similar to the exemption that water and wastewater utility districts have. Support is building across the state, and legislation will be introduced in early 2015 to initiate this funding measure. We recommend that the County continue to support the legislative effort to get this funding measure into place. A presentation at the Legislative Committee was given on February 5, 2015, and they approved support.

3. The Flood Control District will continue implementation of the action plans outlined in the 2013 Annual Report. The key action for the next few years will be to focus on developing sustainable funding for regional flood protection and community drainage.

4. The effort to develop sustainable funding for regional flood protection and community drainage is presented to this Committee for consideration and feedback.

A PowerPoint presentation of the funding programs and financial need will be given at the TWIC meeting.

Recommendation(s)/Next Step(s):

DIRECT staff to continue engagement with the Statewide Stormwater Funding Initiative, as well as considering other funding mechanisms, with a report back to the TWIC.

Fiscal Impact (if any):

1. Annual General Fund contribution of $700,000 to fund community drainage maintenance starting in FY 2015-16.

2. Staff costs for support of legislation headed for November 2016 statewide ballot measure is estimated to be $125,000.

3. Anticipated staff costs for exploring and reporting to the TWIC and the Board on funding issues are $50,000.

Attachments
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